Alexandria residents would see no increase in their property tax rate but would see some popular city programs cut under the $534 million annual operating budget proposed by the city manager Tuesday night.
The modest 2.9 percent increase in the city’s draft fiscal 2009 budget is largely the result of a downturn in the economy and in the housing market that has translated into fewer state and federal grants and sluggish growth in property taxes.
The budget presentation to the Alexandria City Council came only hours after Gov. Tim Kaine announced a steep reduction in state funding of local jurisdictions for the upcoming year.
Alexandria is expected to post revenue growth of only 2.4 percent this year — less than half the projected 4.5 percent rate of inflation — which made it difficult to create a budget that maintained the current level of city services, City Manager James Hartmann said.
The proposed budget meets the City Council’s request for a 4.1 budget increase for schools but does not provide a requested 1 percent cost-of-living increase for city and schools employees.
The budget puts on the chopping block the city’s $150,000 Gridlock Reduction Intervention Program that places police in busy intersections along Duke Street and Route 1 to aid traffic flow.
“We did not put in some of the more popular public safety programs after [police said] that they are frankly not considered the core services,” Hartmann said.
The city also would save $476,000 by killing its Affordable Home Ownership Program Grants and save $891,000 by freezing the waiting list for its day-care subsidy program.
To generate new revenue, the city would raise the trash collection fee and increase DASH bus fares from $1 to $1.25 during peak travel hours.
The city would use new funds from the Northern Virginia Transportation Authority to move forward with transportation initiatives, including a King Street trolley system scheduled to begin service in March.
At the request of the City Council, Hartmann’s budget does not include a property tax increase.
Hartmann also presented an alternative budget that would maintain more city services and allow for the 1 percent cost-of-living increase, but would require a 2 cent hike in the property tax rate.
The City Council is scheduledto adopt a final budget May 5.
Slowing down
Alexandria’s economic slowdown is projected to cause drops in fiscal 2009 revenue:
» $2.4 million decline in sales tax revenue
» $1.2 million decline in personal property tax revenue (including car taxes)
» $1.8 million decline in interest earnings
