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Special Meeting
Thursday, April 28, 1994 - - 7:30 pm

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Present: Mayor Patricia S. Ticer, Vice Mayor William C. Cleveland, Members of Council Kerry J. Donley, Redella S. Pepper, Lonnie C. Rich, and David G. Speck.

Absent: Councilman T. Michael Jackson.

Also Present: Ms. Steele, Deputy City Manager; Mr. Sunderland, City Attorney; Ms. Evans, Assistant City Manager; Mr. Brannan, Assistant City Manager; Mr. Gitajn, Director of Financial and Information Services; Mrs. Godwin, Director of Management and Budget, and staff; Mr. O'Kane, Director of Transportation and Environmental Services; Mr. Cyphers, Director of Human Services; Mr. Fertig, Director of Personnel Services; Mr. Schott, Director of General Services; Mr. Sanderson, Director of Real Estate Assessments; Mr. Neckel, Director of Finance; Mr. Clark, Treasurer; Mr. Cole, Director of Management Information Services; Ms. Boyd, Director of Citizen Assistance; Mr. Kauffman, Director of Recreation, Parks and Cultural Activities; Dr. Claiborn, Director of Mental Health, Mental Retardation, and Substance Abuse; Mr. O'Brien, Director of Library; Mr. Lynn, Director of Planning and Community Development; Ms. Federico, Director of Historic Alexandria; Ms. Davis, Director of Housing; Ms. Hansen, Deputy Director of Housing; Mr. Looney, Division Chief, Office of Housing; Dr. Masem, Superintendent of Schools; Fire Chief Hawkins; Police Chief Samarra; and Lieutenant Robbins, Police Department.

Recorded by: Beverly I. Jett, CMC, City Clerk and Clerk of Council.

There was a Work Session to go through the City Manager's Final FY 1995 Add/Delete List at 6:00 p.m. in the Council Workroom. The Members of City Council went through the add/delete list and made comments. Financial and Information Services Director Gitajn, Management and Budget Director Godwin, Deputy City Manager Steele, and Assistant City Manager Evans participated in the discussion.

The Work Session was concluded at 6:45 p.m.
(A copy of Budget Memo #24: Final FY 1995 Add/Delete List dated April 27, 1994, is on file in the office of the City Clerk and Clerk of Council and incorporated herewith as part of the record by reference.)

The Meeting was called to order by Mayor Ticer, and the City Clerk called the Roll; all Members of Council were present except for Councilman Jackson who was out of town due to a job commitment which was unable to be rescheduled.


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(It was noted that a Notice of this Special Meeting had been previously served upon each Member of Council, pursuant to a provision of the City Charter, a copy of the Notice certified by each Member of Council being on file in the office of the City Clerk and Clerk of Council.)

2. Consideration of the Adoption of the Proposed Annual Operating Budget for FY 1994-95 (including Schools) and the Capital Improvements Program for FY 1995-2000. (#2 3/24/94)

(A copy of a letter dated April 27, 1994, from Katherine L. Morrison, is on file in the office of the City Clerk and Clerk of Council, marked Exhibit No. 1 of Item No. 2; 4/28/94, and is incorporated herewith as part of this record by reference.)
1. Increase in the estimate of unrestricted State aid for law enforcement (HB 599)
4. Increase in the estimate of interest revenue on General Fund investments
C1. TRANSFERS AND DESIGNATIONS THAT, AS PROPOSED, HAVE NO NET FISCAL IMPACT ON TOTAL BUDGET (Note: The following items consist of either an "add" to the operating budget of the department listed and a "delete" from contingent reserves or reflect a designation for a specific purpose of available monies within contingent reserves.)

7. As proposed by the City Manager, compensation increases for City employees:

(a) Transfer of monies from contingent reserves to the non-departmental account for the implementation of a 2 percent General Salary Adjustment (COLA) for all City agencies and employees, including the City Manager, City Attorney, City Clerk, City Council aides and the Mayor's aide.
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(b) Transfer of monies from cotingent reserves to the non-departmental account for the implementation of a 2 percent merit (in-step) increase for all eligible City employees, including the City Manager, City Attorney and City Clerk. (c) Approve a five percent increase in the City's contribution for employee health insurance ($397,500 is already budgeted under a non-departmental account [account no. 125450-1204]; therefore, no transfer is required). No net impact

8. Approve the transfer of monies from contingent reserves to the Office of Sheriff to fund two deputy sheriff positions that have been held vacant since FY 1994 to provide court security for the new Juvenile and Domestic Relations District Court judge approved by the 1994 General Assembly.

9. As recommended by the Budget and Fiscal Affairs Advisory Committee (BFAAC), designate in contingent reserves an amount not to exceed $5,000 for the City's pension and benefits consultants to evaluate the adequacy of the City's designation of $900,000 for pension actuarial adjustments.

This action does not increase General Fund expenditures; however, it will reduce the unrestricted general contingent reserves account by $5,000. (A total of $718,000 is currently available within this account following the transfer of $82,000 to the Office of Sheriff as recommended in item C8. If Council approves this $5,000 recommended designation, $713,000 will be available in the contingent reserves account.) This $5,000 designation has no net impact on total expenditures.

10. Designate an amount not to exceed $100,000 in contingent reserves for the City's local match for the Americorps grant proposal. (Council Member Rich's request) This action does not increase General Fund expenditures; however, it will reduce the unrestricted general contingent reserves account by an additional $100,000 to $613,000 if Council approves item C9 above.

This $100,000 designation has no net impact on total expenditures.
(a) Approve the transfer of $1,245,000 from contingent reserves to the City appropriation to the Schools for the implementation of a 2 percent General Salary Adjustment (COLA) for all School employees;

Account 103556-1111 (COLA--Contingent Reserves) delete $1,245,000
Account 887018-1111 (schools) add $1,245,000

(b) Approve the transfer of $934,000 from contingent reserves to the City appropriation to the Schools for the implementation of an average 2 percent merit (in-step) increase for all eligible School employees;

Account 103556-1101 (Merit--Contingent Reserves) delete $934,000
Account 887018-1111 (Schools) add $ 934,000
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(c) Approve the transfer of $192,500 from the non-departmental account to the City appropriation to the Schools to fund a 5 percent increase in the employer's share of health insurance premiums for School employees;

Account 125450-1204 (health insurance, non-departmental) delete $ 92,500
Account 887018-1200 (Schools) add $ 192,500

12. Reduce City General Fund appropriation to the Alexandria City Public Schools to reflect estimates of increased State aid for education, ranging from $101,592 to $270,000 (Council Member Rich's request.) THIS ITEM WAS WITHDRAWN.

13. Reduce the City's debt service by $299,261 to reflect the City's successful refunding bond sale of March 1, 1994. Account 125484-4506 (Debt Service) delete $ 299,261
14. In response to BFAAC's recommendation, increase the revenue estimate for interest on General Fund investments by $30,000 and approve an increase in the Treasury Division's budget for temporary personnel and/or lock-box fees by $30,000 to improve the timeliness of deposits of certain tax payments.

Account 010009-9161 (Revenues-Interest on
General Fund Investments) add $ 30,000
Account 103150-2103 (Treasury Division Expenditures) add $ 30,000

15. Increase funding for the Alexandria Economic Development Program by $50,000, contingent upon a $50,000 matching contribution from the private sector and a plan for the expenditure of these additional monies, to be docketed for City Council's consideration in FY 1995.

16. Increase the City's contribution to the Campagna Center by a one-time grant of $25,000 for the Capital Campaign. (Mayor Ticer and Councilwoman Pepper's request).

Account 120964 (Human Services Contributions) add $ 25,000

17. Increase the City's contribution to Legal Services of Northern Virginia by $15,000 (Councilman Donley'srequest).

Account 102954-2601 (Legal Services of Northern Virginia) add $ 5,000

18. Increase funding for a pilot project for an expanded after-school accountability program at Jefferson-Houston Elementary School. (Councilman Donley's request).
Option A: Increase funding for Police overtime by $150,000 to increase visibility through special details.
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Option B: Increase funding within contingent reserves by $51,425 to add Residential Police Officer position in the event that grant funding is not approved.
Option C: Increase funding within contingent reserves to retain up to nine vehicles on an as-needed basis for use as take-home cruisers to increase police visibility in neighborhoods.
D. RECESS TO ENABLE STAFF TO COMPLETE NECESSARY CALCULATIONS BEFORE ADOPTION OF THE TAX RATE ORDINANCE THIS WAS NOT NECESSARY

E. APPROPRIATION FROM FUND BALANCE**

Make an appropriation from General Fund balance necessary to balance the FY 1995 Budget as amended. (Amount to be calculated by staff.)
F. ADOPTION OF THE FY 1995 GENERAL FUND BUDGET AS AMENDED**

Move to adopt the FY 1995 General Fund budget as amended in the following amounts Total Total
Expenditures Revenues
___________ ___________
___________ ___________

G. ADOPTION OF THE FY 1995 TO FY 2000 CAPITAL IMPROVEMENT PROGRAM

20. Move to adopt the FY 1995 to FY 2000 capital improvement program as proposed by the City Manager.

(The proposed FY 1995 to FY 2000 capital improvement program totals $74,346,249, with the following annual funding requirements: FY 1995 -- $15,629,470; FY 1996 -- $14,646,835; FY 1997 -- $13,372,015; FY 1998 -- $13,111,823; FY 1999 -- $8,662,123; and FY 2000- -$8,923,983.

Councilman Speck stated that City Council in the work session discussed the items that are on the add/delete list from the City Manager's proposed budget. He walked through them and identified each item. He started with the City Manager's proposed FY 1995 Operating Budget of Expenditures of $230,371,319 and Revenues of $222,893,000. Beginning with Revenue Adjustments Item 1 under Section B, is the increase in the estimate of unrestricted State aid for law enforcement as a result of legislative action of $239,000, that is an addition to the revenue side; Item 2 is an increase in the estimated restaurant meal sales tax revenues of $284,000; Item 3 is a reduction in estimated revenues as a result of revised tobacco tax revenues of $28,000; Item 4 is an increase in the estimate of interest revenue on General Fund investments of $380,500; Item 5 is a reduction in the estimate of real property tax revenue of $270,000; Item 6 is an increase in the estimate of building permit fee revenues of $10,240; those are the Revenue Adjustments; Section C, Expenditure Adjustments, Item 7(a) under Expenditure Adjustments is a transfer of monies from contingent reserves for the purpose
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of funding a 2 percent General Salary Adjustment (COLA) which will apply to all City agencies and employees, including the City Manager, City Attorney, City Clerk, City Council aides and the Mayor's aide, in the amount of $2,311,000; Item 7(b) is the transfer of monies from contingent reserves for the purpose of funding the 2 percent merit or in-step increase for all eligible City employees, including the City Manager, City Attorney and City Clerk, in the amount of $826,000; Item 7(c), although there was no net impact on the Manager's proposed budget, also included is a 5 percent increase in the City's contribution for employee health insurance because that item, $397,500 is already budgeted under the non-departmental account and no transfer is required; Item 8 is a transfer of monies from contingent reserves to the Office of Sheriff to fund two deputy sheriff positions as a result of an additional judge in the Juvenile and Domestic Relations Court, in the amount of $82,000; Item 9 as recommended by the Budget and Fiscal Affairs Advisory Committee (BFAAC), is to designate in contingent reserves an amount not to exceed $5,000 for the purpose of evaluating the adequacy of the City's designation of $900,000 for pension actuarial adjustments and that is for certain pension and benefit consultants and that item is $5,000 and it has no net impact on total expenditures; Item 10 is a result of Council Member Rich's request to designate an amount not to exceed $100,000 in contingent reserves for the City's local match for the Americorps grant proposal, this has no net impact on total expenditures because it is already in the general contingent reserves account and so it is really an assignment rather than an additional expenditure; moving to Item C2 which is the City's Appropriation to the Alexandria City Public Schools [in Item 11(a)) we are transferring $1,245,000 from contingent reserves for the purpose of funding the Schools' 2 percent General Salary Adjustment (COLA); Item 11(b) under that section is the transfer of $934,000 from contingent reserves for the purpose of funding the 2 percent merit or in-step increase for all eligible [school] employees; Item 11(c) under that section is the transfer of $192,500 from the non-departmental account to the City appropriation to fund a 5 percent increase in the employer's share of health insurance (premiums], in other words the corresponding item in the schools that we also addressed in the City budget; Item 12 has been deleted; Item 13 is [C3]. Other Adjustments, and that is to reduce the City's debt service by $299,261 to reflect the reduced expenses to the City that will occur as a result of the refunding bond sale this past March; Item 14, a result of the BFAAC recommendation, is an offset on $30,000 of increase in the Treasury Division's budget for temporary personnel and/or lock-box fees by $30,000 and there is an offset on the expenditure side for that item; Item 15 is to increase funding for the Alexandria Economic Development Program by $50,000 which is contingent upon a matching contribution and those monies would be set aside in contingent reserves with the allocation from that particular item to be determined later, but it will be earmarked for that purpose and the criteria for its use will be discussed at some subsequent time; Item 16 is to increase the City's contribution to the Campagna Center by a one-time grant of $25,000 for the Capital Campaign, that is Mayor Ticer and Councilwoman Pepper's request; Item 17 is to increase the City's contribution to Legal Services of Northern Virginia by $15,000, it is Councilman Donley's request; Item 18 is to increase funding for a pilot project for an expanded after-school accountability program at Jefferson-Houston in the amount of $23,000, Councilman Donley's request; Item No. 19 has three parts as a request made by Councilman Speck, Item (a) is to increase the funding into contingent reserves for additional Police overtime in the amount of $150,000; Item (b) under that section is to increase funding again into contingent reserves by $51,425 to add an additional Residential Police Officer in the event that grant funding requested for that purpose is not approved; Item (c) is to increase funding again into contingent reserves for $20,000 for the purpose of retaining up to nine vehicles as take-home cruisers by police living in the City; the final adjustment is an appropriation from fund balance to balance the FY 1995 Budget as amended in the amount of $6,897,743.
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With all of the foregoing adjustments as articulated, City Council adopted the following motion:

WHEREUPON, upon motion by Councilman Speck, seconded by Councilman Donley and carried unanimously by all those present, City Council adopted the FY 1995 General Fund budget as amended in the following amounts: Total expenditures of $230,436,483, total revenues of $230,436,483, which will result in a real property tax rate of $1.07, [and a personal property tax rate of $4.75]; and in addition as part of this motion to move to adopt the FY 1995 to FY 2000 capital improvement program as proposed by the City Manager. The voting was as follows:

Speck "aye" Cleveland "aye"
Donley "aye" Jackson absent
Ticer "aye" Pepper "aye"
Rich "aye"

3. Consideration of the Proposed Community Development Block Grant Program for FY 1994-95. (#3 3/24/94)

(A copy of the City Manager's memorandum dated March 21, 1994, is on file in the office of the City Clerk and Clerk of Council, marked Exhibit No. 1 of Item No. 3; 4/28/94, and is incorporated herewith as part of this record by reference.)

WHEREUPON, upon motion by Councilwoman Pepper, seconded by Vice Mayor Cleveland and carried unanimously by all those present, City Council approved the City Manager's recommendation to approve the Proposed Statement of Community Development Objectives and Projected Use of Community Development Block Grant Funds, including the following transfer of up to $26,000 in Community Development Block Grant monies. The proposed statement will be submitted to HUD as the City's Final Statement, which must be received by HUD no later than May 31, 1994. Transfers of Carryover Monies to FY 1995: Transfer from Community Housing Resources Board (CHRB) the amount of $16,625 and from Transition Apartment Program (TAP) the amount of $9,375 for a total of $26,000 to be transferred to Eviction Storage. The voting was as follows:

Pepper "aye" Donley "aye"
Cleveland "aye" Jackson absent
Ticer "aye" Rich "aye"
Speck "aye"

4. Second Reading and Final Passage of AN ORDINANCE to establish the real and personal property tax rates to be levied for calendar year 1994. (#4 3/24/94; #18 3/8/94)

The City Clerk read the docket item.

WHEREUPON, upon motion by Councilman Donley, seconded simultaneously by Councilwoman Pepper and Vice Mayor Cleveland and carried on a ROLL-CALL vote of 6-to-0, City Council finally passed the ordinance upon its Second Reading. The voting was as follows:

Donley "aye" Ticer "aye"
Pepper "aye" Jackson absent
Cleveland "aye" Rich "aye"
Speck "aye

The ordinance finally passed reads as follows:
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ORDINANCE NO. 3719

AN ORDINANCE to amend and reordain Section 3-2-181 (LEVIED; AMOUNT) of Division 1 (REAL ESTATE), and Sections 3-2-221 (LEVIED ON TANGIBLE PERSONAL PROPERTY OTHER THAN MOBILE HOMES, AUTOMOBILES, TRUCKS, ANTIQUE MOTOR VEHICLES, TAXICABS, MOTOR VEHICLES WITH SPECIALLY DESIGNED EQUIPMENT FOR USE BY THE HANDICAPPED, MOTORCYCLESI CAMPERS AND OTHER RECREATIONAL VEHICLES, BOATS AND TRAILERS; AMOUNT), 3-2-222 (LEVIED ON MACHINERY AND TOOLS USED IN MINING OR MANUFACTURING BUSINESS; AMOUNT), 3-2-223 (TAX LEVIED ON MOBILE HOMES; AMOUNT), 3-2-224 (TAX ON AUTOMOBILES, ANTIQUE MOTOR VEHICLES, TRUCKS, TAXICABS, MOTORCYCLES, CAMPERS AND OTHER RECREATIONAL VEHICLES, BOATS AND TRAILERS--LEVIED; AMOUNT) and 3-2-224.1 (TAX ON MOTOR VEHICLES WITH SPECIALLY DESIGNED EQUIPMENT FOR USE BY THE HANDICAPPED) of Division 3 (TANGIBLE PERSONAL PROPERTY AND MACHINERY AND TOOLS), all of Article M (LEVY AND COLLECTION OF PROPERTY TAXES), Chapter 2 (TAXATION), Title 3 (FINANCE, TAXATION AND PROCUREMENT) of The Code of the City of Alexandria, Virginia, 1981, as amended.
Section 1. That Section 3-2-181 of The Code of the City of Alexandria, Virginia, 1981, as amended, be and the same hereby is amended and reordained to read as follows:

Sec. 3-2-181 Levied; amount.

There shall be levied and collected for the calendar year 1994 on all real estate located within the territorial boundaries of the city and subject to taxation for city purposes under the constitution and laws of this state and city a tax of $1.07 on each $100 of the assessed value thereof, for the support of the city government, for the payment of principal and interest of the city debt and for other municipal expenses and purposes.

Section 2. That Section 3-2-221 of The Code of the City of Alexandria, Virginia, 1981, as amended, be and the same hereby is amended and reordained to read as follows:

Sec. 3-2-221 Levied on tangible personal property other than mobile homes, automobiles, trucks, antique motor vehicles, taxicabs, motor vehicles with specially designed equipment for use by the handicapped, motorcycles, campers and other recreational vehicles, boats and trailers; amount.

There shall be levied and collected for the calendar year 1994 on all tangible personal property, other than mobile homes, automobiles, trucks, antique motor vehicles, taxicabs, motor vehicles with specially designed equipment for use by the handicapped, motorcycles, campers and other recreational vehicles, boats and trailers, owned or held by residents or citizens of the city or located within the territorial boundaries of the city or otherwise having a situs within the city and subject to taxation for city purposes under the constitution and laws of this state and city, a tax of $4.75 on every $100 of assessed value, for the support of the city government, for the payment of principal and interest of the city debt and for other municipal expenses and purposes.

Section 3. That Section 3-2-222 of The Code of the City of Alexandria, Virginia, 1981, as amended, be and the same hereby is amended and reordained to read as follows:

Sec. 3-2-222 Levied on machinery and tools used in mining or manufacturing business;
amount.
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There shall be levied and collected for the calendar year 1994 on all machinery and tools used in a mining or manufacturing business taxable on capital and subject to taxation for city purposes under the constitution and laws of this state and city, a tax of $4.50 on each $100 of assessed value thereof, for the support of the city government, for the payment of principal and interest of the city debt and for other municipal expenses and purposes.

Section 4. That Section 3-2-223 of The Code of the City of Alexandria, Virginia, 1981, as amended, be and the same hereby is amended and reordained to read as follows:

Sec. 3-2-223 Tax levied on mob le homes; amount.

There shall be levied and collected for the calendar year 1994 on all vehicles without motor power, used or designed to be used as mobile homes as defined in section 46.2-100 of the Code of Virginia, owned or held by residents or citizens of the city or located within the territorial boundaries of the city or otherwise having a situs within the city and subject to taxation for city purposes under the constitution and laws of this state and city, a tax of $1.07 on each $100 of assessed value thereof, for the support of the city government, for the payment of principal and interest of the city debt and for other municipal expenses and purposes.

Section 5. That Section 3-2-224 of The Code of the City of Alexandria, Virginia, 1981, as amended, be and the same hereby is amended and reordained to read as follows:

Sec. 3-2-224 Tax on automobiles, antique motor vehicles, trucks, taxicabs,
motorcycles, campers and other recreational vehicles, boats and trailers--levied; amount.

There shall be levied and collected for the calendar year 1994 on all automobiles, antique motor vehicles, trucks, taxicabs, motorcycles, campers and other recreational vehicles, boats and trailers owned or held by residents or citizens of the city or located within the territorial boundaries of the city or otherwise having a situs for taxation in the city, a tax of $4.75 on every $100 of assessed value, for the support of the city government, for the payment of principal and interest of the city debt and for other municipal expenses and purposes.

Section 6. That Section 3-2-224.1 of The Code of the City of Alexandria, Virginia, 1981, as amended, be and the same hereby is amended and reordained to read as follows:

Sec. 3-2-224.1 Tax on motor vehicles with specially designed equipment for use by the handicapped.

There shall be levied and collected for the calendar year 1994 on all motor vehicles which are equipped with specially designed equipment for use by the handicapped and which are owned or held by residents or citizens of the city or are located within the territorial boundaries of the city or otherwise have a situs for taxation in the city, a tax of $3.55 on every $100 of assessed value, for the support of the city government, for the payment of principal and interest of the city debt and for other municipal expenses and purposes.
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Section 7. That this ordinance shall become effective upon the date and at the time of its final passage.
Introduction: 3/8/94
First Reading: 3/8/94
Publication: 3/9/94; 3/10/94
Public Hearing: 3/24/94
second Reading: 4/28/94
Final Passage: 4/28/94
THERE BEING NO FURTHER BUSINESS TO BE CONSIDERED, upon motion by Councilman Donley, seconded simultaneously by Councilwoman Pepper and Vice Mayor Cleveland and carried unanimously by all those present, at 7:47 p.m. the Special Meeting of April 28, 1994, was adjourned. The voting was as follows:

Donley "aye" Ticer "aye"
Pepper "aye" Jackson absent
Cleveland "aye" Rich "aye"
Speck "aye"

APPROVED BY:


_____________________________
PATRICIA S. TICER MAYOR

ATTEST:


_____________________________
Beverly I. Jett CMC, City Clerk
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Agenda

Table of Contents

Annual Budget

Budget Memo #:
20 21 22 23 24 25 38



This docket is subject to change.

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Full-text copies of ordinances, resolutions, and agenda items are available in the Office of the City Clerk and Clerk of the Council.
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Individuals with disabilities who require assistance or special arrangements to participate in the City Council meeting may call the City Clerk and Clerk of Council's Office at 838-4500 (TTY/TDD 838-5056). We request that you provide a 48-hour notice so that the proper arrangements may be made.
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