Alexandria would eliminate more than 120 jobs and freeze employee pay for the first time in nearly two decades under the city’s proposed $524.3 million operating budget for fiscal 2010.
Homeowners would face a 4.2-cent increase in real estate taxes, from 84.5 to 88.7 cents per $100 of assessed value. Under the city’s proposed plan, the average cost would remain at the 2008 level of $4,226, because of an estimated 4.7 percent decline in average assessed home value.
The budget for the year starting July 1, presented to the City Council last night by City Manager James K. Hartmann, reflects a 7.7 percent drop, or $43.6 million, from what it would cost to maintain the city’s current levels of service.
“The city of Alexandria faces its most serious fiscal crisis in more than 30 years,” Hartmann said. “[It’s] apparent that we’re not going to be able to perform the same level of services that we have in the past.”
The budget proposes an “unprecedented” reduction of 121 funded staff positions — 4 percent of the city work force — which would save $7.5 million. Of those positions, 74 are vacant, 17 may be eliminated or choose retirement and 30 filled positions would be eliminated.
Hartmann said the city would do “everything possible” to place the 30 employees into vacant positions but added that the government would likely shrink.
“It’s going to take time to come out of this recession … we’re not going to be as big as we have been in the past,” he said. “We just can’t afford it.”
Contributing to the city’s financial woes was a 2.1 percent decline in real estate assessments in 2009. Commercial property assessments rose 1.2 percent, but residential property values dropped 4.4 percent.
Deputy City Manager Mark Jinks said the city hasn’t posted a drop in the total tax base since 1994, when it dropped 1.5 percent.
“While this is the first decline in about 20 years … comparatively, we’re in relatively better shape than surrounding jurisdictions,” he said.
