Alexandria City Council Adopts Fiscal Year 2017 Budget

ALEXANDRIA, VA -- By a 6-0 vote Thursday, the Alexandria City Council adopted a $678.5 million General Fund Operating Budget for Fiscal Year (FY) 2017, and an All Funds budget of $840.3 million, which represent increases over the current year of 4.5% and 1.9%, respectively, according to a news release from the City. FY 2017 begins on July 1, 2016. Here's more about the budget, courtesy of the City:

The adopted budget includes a 3-cent increase in the real estate tax rate ($1.073 on each $100 of assessed value). Two cents of this increase will fund priority capital improvement projects such as a new pre-K facility, street paving and multimodal “Complete Streets” improvements, municipal broadband, and major facility repairs including museums and the Courthouse. The budget also includes a $206.6 million transfer to schools (a 3.9% increase over FY 2016 funding, and 45% of all new General Fund revenue) and maintains $1.6 billion of investments over 10 years in Alexandria’s Capital Improvement Program.

“This budget shows strong investment in public education, community services, and infrastructure needs,” said Mayor Allison Silberberg. “We thank the City Manager and budget staff, and all the residents and businesses who engaged in the budget process, for helping us to arrive at a resource allocation plan that reflects our priorities, supports our community, and underscores our shared vision for our beloved, historic city."

The adopted budget provides $44.2 million in capital project funds for Alexandria City Public Schools (ACPS), which includes $8.3 million for a new pre-K facility and $16.1 million for tenant buildout for a new elementary school. In total, the two new school facilities will add approximately 32 classrooms to ACPS facilities, according to the City.

An increase in the cigarette tax will support dental services for low-income residents and expand Alexandria Neighborhood Health clinic services, the City said. The refuse fee will increase from $337 to $363 per household, in part to implement the trash and recycling can component of the Citywide Parks Improvement Plan and expand the availability of public space recycling cans, according to the City.

The adopted budget reflects the continued investments the City makes in its workforce, the City noted. The fire pay scale will increase by 2.5% and fire officers will receive a 7.5% increase, which moves those salaries toward the mid-range of the region. It also increases the living wage for employees and service contractors one dollar to $14.13, the first adjustment since 2008. The budget reflects $8.1 million in savings and reductions that were proposed by the City Manager to fund other budget needs.

City Council’s approval of this budget continues an approach begun in FY 2015 to align how the City does business with principles set forth in the City’s Strategic Plan. Working in Focus Area Teams, staff built a budget framework that directly linked the funds Alexandria spends on providing programs and services to the results the community values. During the process, extensive input from Alexandria’s residents and businesses was gathered from community engagement meetings and online forums.

Highlights

• The Fiscal Year (FY) 2017 General Fund Operating Budget is $678.5 million, and the All Funds budget is $840.3 million, which represent increases over the current year of 4.5% and 1.9%, respectively.
• The property tax rate will increase by 3 cents to $1.073 per $100 of assessed value, of which 2 cents will be used to fund priority capital improvement projects.
• Alexandria City Public Schools (ACPS) will receive $206.6 million from this budget, which represents a $7.75 million or a 3.9% increase over current funding. The total school increase represents over 45% of all new FY17 General Fund revenue.
• The Capital Improvement Program includes $1.67 billion of investments over the next 10 years, including nearly $274 million for schools.
• The adopted budget increases the firefighter pay scale by 2.5% to regain regional competitiveness, and increases the City’s living wage for employees and service contractors by one dollar per hour to $14.13.

All information is courtesy of the City of Alexandria.