News Release
FOR IMMEDIATE RELEASE

Date:	Tuesday, March 19, 1996
Contact:	Tom Brannan, Assistant City Manager, (703) 838-4300

Alexandria City Manager Vola Lawson Proposes $250.3 Million General Fund Budget for FY 1997 Fully Funds School Board's Budget, Emphasizes Economic Development with No Increase in Real Property Tax Rate

Alexandria City Manager Vola Lawson today presented the Alexandria
City Council with a $250.3 million Proposed General Fund Budget for Fiscal
Year 1997 that fully funds the Alexandria School Board's Adopted Operating
and Capital Budgets, provides added funding for economic development, and
maintains City services and programs without increasing the current real
property tax rate.

"This budget underscores our commitment to keeping Alexandria
competitive with other jurisdictions as we adjust to continued Federal
government downsizing in the region," said Mrs. Lawson. "Our efforts to
improve Alexandria's competitive edge include an increase in direct
expenditures for economic development activities, maintenance of the
City's competitive real property tax rate, and implementation of continued
business tax reform," said Mrs. Lawson.

"Nothing is more important to our economic development efforts than
maintaining the City's outstanding quality of life, providing a strong and
competitive school system, and strengthening the City's reputation as a
safe place to live and work," said Mrs. Lawson.

The City Manager's Proposed Budget for FY 1997, which begins July
1, 1996, represents an increase of 3.7 percent over the current year. The
Proposed Budget provides $171.2 million for City programs and services, an
increase of $3.9 million, or 2.3 percent, which is below the projected 3
percent rate of inflation for the coming fiscal year, and $79.1 million
for the Alexandria City Public Schools, an increase of $5 million, or 6.7
percent.

Highlights of the City Manager's Proposed Budget for FY 1997

Major features of the City Manager's Proposed FY 1997
Budget include:

No increase in the City's current real property tax rate of $1.07
per $100 of assessed value, which was established in 1993.

Over $1 million, including an increase of $255,000, for economic
development activities, identified by City Council at its fall Annual
Retreat as a top priority for the City.

$4.3 million in City funding, along with a State grant of $526,400,
to fully fund the cost of the second year of the Alexandria City Public
Schools' Four-Year Technology Plan.

A six-year, $106.1 million Capital Improvements Program (CIP) that
fully funds the School Board's $20.1 million in school maintenance and
other capital facilities needs through Fiscal Year 2002.

Projects scheduled in the first-year of the FY 1997-2002 CIP include
$850,000 for architectural and design services for the City's new main
library that will open in the West End in 1999; $1.6 million to renovate
and expand the Mt. Vernon Recreation Center; $2.5 million to renovate and
expand the William Ramsay Recreation and Nature Centers; and $317,000 to
improve the Simpson Stadium complex.

Continued reform of the Business Professional and Occupational
License (BPOL) tax would exempt City businesses with gross revenues of
less than $10,000 a year from any fee or tax payment; establish a flat fee
of $50 for businesses with gross receipts between $10,000 and $100,000;
and increase to $100,000 the minimum gross receipts collected by a
business before a BPOL tax is imposed. As a result of these changes,
one-third of all Alexandria businesses that have gross receipts of less
than $10,000 will pay nothing; the one-third of the City's businesses that
have gross receipts of between $10,000 and $50,000 will pay the flat $50
annual fee; and the one-third of City businesses that report gross
receipts over $100,000 will pay the BPOL tax, which varies depending on
several factors, including the type of business.

A 2 percent cost-of-living adjustment and a 2 percent merit increase for
City and Schools employees.

Real Estate Tax Base and Assessed Values

In 1996, the overall assessed value of all real property in the
City (residential and commercial properties and vacant land) increased
slightly, by eight-tenths of one percent, or $89.1 million. This is the
first year since 1991 that both total residential and total commercial
assessed values have increased. Approximately 90 percent of this overall
increase, or $78.4 million, is due to new residential construction ($70.7
million) and new commercial construction ($7.7 million).

The assessed value of the average existing residential property in
the City is $174,734, and at the proposed tax rate of $1.07 per $100 of
assessed value, the tax bill on that property for 1996 would amount to
$1,870, a reduction of $3 compared to 1995. The assessed value of the
average existing single-family home increased by eight-tenths of one
percent, from $230,635 in 1995 to $232,480 in 1996. The 1996 tax bill on
the average single-family home will remain virtually unchanged, with an
increase of $20, from $2,468 to $2,488. The assessed value of the average
existing residential condominium declined by 2.7 percent, from $106,563 in
1995 to $103,728 in 1996. At the proposed tax rate of $1.07 per $100 of
assessed value, the 1996 tax bill on the average residential condominium
will decrease by $30, from $1,140 to $1,110.

The assessed value of existing commercial real property in the City
increased slightly (by one-tenth of one percent) in 1996, an indication
that commercial real property values have stabilized after declining each
year since 1991.

City Council Work Sessions and Public Hearing

Before adopting the FY 1997 Budget on May 7, the Alexandria City
Council will conduct four public meetings on the Proposed Budget,
including Budget Work Sessions on Wednesday, March 27 (Revenue Overview,
Capital Improvement Program, and Major Projects Status Report); Wednesday,
April 17 (Alexandria City Public Schools); and Tuesday, April 30 (Public
Hearing Requests); and a Public Hearing on Monday, April 15 at 7:30 p.m.