Alexandria enters the new year facing a tightening fiscal environment and fighting to balance the city’s historical character with its economic strength and growing residential population.
The budget crunch is already being felt in the schools. The City Council recently asked the schools to downsize a requested $19 million budget increase for 2008-09 school year costs, citing falling revenues.
Each Alexandria agency and the school district is required to submit an annual budget estimate to the City Council.
The council then gives the agencies and the schools a target budget figure.
Budget officials then work to make their final budget match the council’s target.
Despite the council’s guidance, the schools earlier this month asked for a budget of more than $191 million. The budget does call for some cuts, including the loss of about 60 positions within the school district and other expense cuts.
Alexandria’s Budget and Management Office Director Bruce Johnson said spending would be down across the city.
“A tightening of the belt would be an understatement,” Johnson said. “It’s a very ambitious objective for both the city and the schools, and probably requires a great deal of determination by both the city manager and the school board to meet their targets.”
Real estate prices have flattened, suffocating real estate tax revenue streams that have served as major capital sources for the city.
To offset these losses, the city is working to bring new businesses to the area to expand it’s commercial tax base. The city has undertaken numerous efforts to this end, including the formation of a task force to explore how to attract new companies.
At the same time, the city continues its historic preservation efforts. In the coming year, Alexandria’s Historic Preservation office is expected to work to ensure new developments fit in with the character of the city and that historic buildings are maintained and preserved.
