Proposed Alexandria Budget Includes 2-Cent Real Estate Tax Hike

ALEXANDRIA, VA — City Manager Mark Jinks presented the proposed Alexandria operating budget for fiscal year 2021 and 10-year capital improvement program Tuesday night. The budget includes a 2-cent increase solely dedicated to school and city capital projects, and Jinks indicated he's considering future 2-cent increases to address long-term capital needs.

The proposed $799.9 million operating budget reflects a 4.5 percent increase over the current year's budget. It accounts for a projected 3.4 percent increase in fiscal year 2021 revenue. The city manager also proposed a $2.1 billion 10-year capital improvement program.

The proposed real estate tax increase would bring the rate from $1.13 per $100 of assessed value to $1.15 per $100 of assessed value. The city manager's office expects the average homeowner's tax bill would increase by $116, or 1.8 percent per year. That increase would result in an estimated $8.5 million revenue.

The city's 2020 assessments showed taxable property value increased by 4.15 percent overall. That represents the highest rate increase since the 2008 fiscal year, although it doesn't match up to the 10 percent to 20 percent annual growth rate during the first decade of the new millennium. The average home assessed value in Alexandria is $582,636.

Jinks is planning for a 2-cent real estate tax increase for city and school capital projects to be proposed again for fiscal years 2023 and 2025. These tax increases can only be requested annually through the budget process.

Revenue from the tax increase would go toward projects including new buildings for Douglas MacArthur Elementary School and T.C. Williams High School's Minnie Howard campus. The Douglas MacArthur Elementary replacement and expansion project would receive $69 million, and the Minnie Howard campus would receive $104 million of the remaining $158 million cost to rebuild with expanded capacity. Last year, the Alexandria School Board voted to take the approach of a connected high school network, which includes expanding the Minnie Howard campus to prepare for a projected enrollment increase.

There is no proposed change to the personal property (car) tax in fiscal year 2021, but a few fees could increase. The annual city refuse and recycling services fee would increase from $411 to $460. As directed by City Council, the fee must fully fund the cost of the services. The city manager says contractor costs and China's stricter recycling processing standards necessitate the increase. The stormwater fee would increase from $140 to $146.30 per billable unit, attributed to rising costs of the city's stormwater management program. No change is proposed for the sanitary sewer fee.

Here are some other key points from the budget:

• $241.4 million transfer to Alexandria City Public Schools, funding 100 percent of the superintendent's proposal being considered by the Alexandria School Board
• Annual merit pay increases for eligible employees, an additional $3.5 million to fund 1.5 percent regional competitiveness adjustment on all city pay scales, $800,000 for targeted pay increases for certain public safety jobs with gaps in competitiveness, $135,000 for four overhires in sheriff's office, and $360,000 for six reserve firefighters
• $400,000 to reduce the employee health insurance premium share from 20 percent to 15 percent for around 1,000 city employees making $70,000 or less
• $13.7 million over several years in the capital budget to implement the new Alexandria Justice Information System for the Clerk of Circuit's Public Service Division
• Reallocation of funding for a dedicated staff position to coordinate security in all city-owned facilities and $287,000 for full-time security officers in City Hall
• $100,000 to increase frequency of turf maintenance, debris and litter removal and landscaping at six waterfront parks, $14,000 for equipment to more efficiently maintain 46 natural turf fields and $40,000 to sanitize 11 synthetic turf fields on an ongoing basis
• Reduction of city's DASH subsidy by $170,000 due to Alexandria Transit Company's proposed elimination of a segment of the AT4 route between the Braddock Road Metro and City Hall (duplicated by other routes)
• $43,000 to repeat and establish regular testing for lead exposure in fountains, dispensers, ice machines and faucets at city buildings and parks
• $760,000 in capital preservation funds for Murray-Dick-Fawcett House, $92,000 in new funds for maintenance of Murray-Dick-Fawcett House and Freedom House and $108,000 for expansion project manager for Freedom House
• $505,500 to expand summer school and after-school programs for around 200 children ages 3 to 5 who are at-risk or qualify for Head Start or Virginia Preschool Initiative
• $85,000 for a position to coordinate the Office of the Commonwealth's Attorney's diversion programs: Mental Health Initiative, Marijuana Diversion Program and new Substance Abuse Treatment Court
• $9.6 million for affordable housing in fiscal year 2021 through the capital improvement program (funding in reserve as affordable housing projects come along)

The city manager will present the proposed budget to the public on Feb. 20 from 7 p.m. to 8:30 p.m. at Beatley Central Library, 5005 Duke Street, Alexandria. Work sessions will be held during February, March and April. A budget public hearing will happen March 9, and City Council's budget adoption is scheduled for April 29. Find the full proposed budget and calendar at www.alexandriava.gov/Budget.