PROPOSED BUDGET February 21, 2017 Economic Outlook Slow Growing - - PowerPoint PPT Presentation

FY 2018 CITY MANAGER’S PROPOSED BUDGET

February 21, 2017

Economic Outlook

• Slow Growing Regional Economy
• Tax base growth of 2%
• Federal government employment and

policy changes

• High Office Vacancy Rate
• Need for Economic Development

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Proposed Budget Highlights

• $712.5 M General Fund
• 3.5% Increase
• $873.7 M All Funds
• 2.5% Increase
• 2.7 Cent Real Estate Tax Rate Increase
• $10.4 M in FY 2018
• ACPS Transfer increase of $7.5 M or 3.6%
• City operations increase 0.9%
• $2.0 B 10-year Capital Improvement Program
• FTEs -1.15 from FY 2017 levels (13 shifted)

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Revenue

• Real estate tax rate increases 2.7 cents to

$1.10

• Average homeowner’s tax bill increase of $197
• r 3.5%
• Sanitary Sewer rate increasing from $1.40

to $1.82

• No other tax rate increases recommended
• Stormwater Utility Fee implemented
• Household waste collection increasing $10

per year to $373

• Other proposed fee increases

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Compensation & Personnel

• Annual merit increases of $5.0 M
• One additional step at end of the pay

scale for all pay scales ($0.8 M)

• Health insurance increase of 8.1%
• Fiscal stability of Supplemental

Retirement Plan lump sum payout calculation

• Budget funds 2,563.96 FTEs, a net

change of -1.15 from FY 2017

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Safe, Secure, & Just Community

• $1.5 M in funding to accelerate filling
• f Police vacancies in patrol and traffic

units

• Implementation of new Police patrol

schedule ($0.3 M savings)

• DEC and Call.Click.Connect. merged to

facilitate future move to 3-1-1

• Dual-role incentive pay to increase

dual-role providers in the Fire Department ($0.4 M)

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Healthy & Thriving Residents

• Maximizing Medicaid and other

reimbursements ($0.7 M)

• Improved library efficiency and

customer service

• Home health aid wages increased to

reduce waiting list of seniors

• Additional shift in RPCA towards cost

recovery

• Youth sport scholarship funding in

Contingent Reserves

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Livable, Green, & Prospering City

• Increase in transit operating subsidy

for WMATA of $7.0 M to total of $40 M

• Maintain level funding for DASH; King

Street Trolley shifted back to 10:30am start

• Implementation of Stormwater Utility

fee and sanitary sewer fee increase

• Marketing fund elimination to fund

MGM advertising and retail pop-ups

• Fees in museums and recreation

programs increased

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Accountable, Effective, and Well- Managed Government

• CIP shift to priority based maintenance
• f City assets
• $10.0 M for broadband implementation

in CIP

• Shift in support staffing to higher

priority areas

• Delinquent tax and Out-of-State plate

tax collection initiatives

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Alexandria City Public Schools

• $8.4 M or 3.6% increase
• $214.1 M General Fund transfer
• $7.5 M increase from FY 2017
• Funds 99% of Superintendent's

request

• $0.9 M debt service increase
• $28.5 M ACPS debt service total

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Alexandria City Public Schools CIP

• 10 Year Funding
• $611.1 M Requested
• $373.0 M Funded
• $238.1 M Difference
• $203.0 M Identified in Supplemental CIP

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Capital Improvement Program

• $2.001 Billion 10-year plan
• WMATA Safe & Reliable program added

$160.6 M

• Combined Sewer Overflow 10-year

funding of $390.2 M

• City Facilities maintenance of $106.5 M
• $62.1 M 10-year mandated clean-

water initiatives

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Capital Improvement Program

• FY 2018 Projects
• Next phase of implementation of the waterfront

plan and flood mitigation ($5.8 M)

• Fund first half of broadband initiative ($5.0 M)
• 9-1-1 system upgrade to NextGen911 ($1.7 M)
• Courthouse security system replacement ($2.3 M)
• Athletic Field Improvements at Patrick Henry, Ft.

Ward, and Hensley Soccer Field ($3.5 M)

• Combined Sewer Overflow planning funds ($1.0 M)
• DASH bus replacements ($3.3 M)
• Improvements at Glebe and Route 1 ($3.2 M,

developer paid)

• Street and road repaving ($5.3 M)

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Debt Policy Guidelines

• Proposed changes to the City’s Debt

Policy Guidelines are included as part

• f the CIP
• These proposed changes will be

discussed at the February 28 legislative meeting

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Supplemental CIP

• Requested in City Council Guidance
• Totals $325.2 M over 10 years
• ACPS funding ($203.0 M)
• 50 meter Chinquapin pool addition ($15.4 M)
• Affordable housing funds ($4.3 M)
• Open Space ($8.2 M)
• DASH bus replacements ($10.2 M)
• New public safety indoor firing range ($25.0 M)
• Waterfront Park development ($15.0 M)
• Funding options presented

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Proposed Budget Summary

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General Fund Expenditures FY 2017 Approved FY 2018 Proposed $ Chg % Chg City Operations $384.9 M $388.2 M $3.3 M 0.9% City Related Debt Service $38.9 M $41.7 M $2.8 M 7.1% City Subtotal $423.8 M $429.8 M $6.1 M 1.4% Schools School Operations $206.6 M $214.1 M $7.5 M 3.6% School Related Debt Service $27.6 M $28.5 M $0.9 M 3.3% Schools Subtotal $234.2 M $242.6 M $8.4 M 3.6% Metro Operating Subsidy $6.3 M $13.3 M $7.0 M 110.4% Cash Capital $23.8 M $26.7 M $2.9 M 12.2% Total Expenditures $688.1 M $712.5 M $24.4 M 3.5%

* Numbers may not add up correctly due to rounding.

BUDGET DEVELOPMENT DATES

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Tuesday, February 21 7:00pm FY 2018 Proposed Budget Presentation & Budget Work Session: Revenues/Five Year Financial Planning Model/Compensation Tuesday, February 28 7:00pm City Debt Policy Update (during legislative meeting) Wednesday, March 1 7:00pm Budget Work Session: Capital Improvement Program Wednesday, March 8 7:00pm Budget Work Session: Alexandria City Public Schools Monday, March 13 4:00pm Public Hearing: FY 2018 Budget Tuesday, March 14 7:00pm Introduce the Maximum Property Tax Rates Wednesday, March 15 7:00pm Budget Work Session: Healthy & Thriving Residents Tuesday, March 21 7:00pm Budget Work Session: Livable, Green & Prospering City Wednesday, March 29 7:00pm Budget Work Session: Safe, Secure & Just Community Wednesday, April 5 7:00pm Budget Work Session: Accountable, Effective & Well-Managed Government Wednesday, April 19 7:00pm Budget Work Session: Topic TBD Saturday, April 22 9:30am Public Hearing: FY 2018 Tax Rate Tuesday, April 25 6:00pm Budget Work Session: Preliminary Add/Delete Discussion Monday, May 1 7:00pm Budget Work Session: Final Add/Delete Discussion Thursday, May 4 7:00pm Special Meeting: Budget Adoption

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Thank You