Alexandria Expected to See $14.4M Budget Shortfall

The City of Alexandria expects a $14.4 million operating budget shortfall for fiscal year 2013, according to the City Manager's Office.

At the first Alexandria City Council budget work session for FY13, Acting City Manager Bruce Johnson announced the shortfall, which depends on whether city tax rates and service levels remain unchanged.

The prediction reflects slow growth in the real estate market, which limits the growth of revenue from property taxes. Revenues are projected to rise approximately $10 million, and city operating costs are expected to rise approximately $24 million. Costs are expected to grow at a faster pace than revenue growth, creating a shortfall for FY 2013.
 
“Fiscal Year 2013 is projected to be another tough financial year for Alexandria,” Johnson said. “Our projected shortfall is at least $14.4 million dollars – not considering any requested increase from the schools or for transit subsidies to WMATA and DASH."

This is the fifth consecutive year with an anticipated shortfall.

"We will work hard over the next several months with the City Council, the Alexandria Public Schools and the community to develop a budget that will address these challenges,” Johnson said.

The city closed FY2011 with an operating surplus of $9.8 million. Acting City Manager Bruce Johnson said that “unexpected” surplus came from $5.57 million in expenditure savings and about $4.26 million in higher-than-expected revenue.

Incoming City Manager Rashad Young will have a tough budget to tackle. City Council on Oct. 24 intends to appoint Young, who hails from Greensboro, N.C., to serve as Alexandria's city manager.