Meeting Minutes for Special Meeting (04/27/2000)

Special Meeting
Thursday, April 27, 2000 - - 7:30 p.m.
(Budget Adoption)

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Present: Mayor Kerry J. Donley, Vice Mayor William D. Euille, Members of Council William C. Cleveland, Redella S. Pepper, Lonnie C. Rich, David G. Speck, and Lois L. Walker.

Absent: None.

Also Present: Mr. Sunderland, City Manager; Mr. Pessoa, Acting City Attorney; Ms. Evans, Assistant City Manager; Ms. Steele, Deputy City Manager; Mr. Sanderson, Director of Real Estate Assessments; Director of Libraries O'Brien; Ms. O'Regan, Director of Human Services; Ms. Federico, Director of Historic Alexandria; Mr. Lynn, Director of Planning and Zoning; Director of Health Konigsberg; Mrs. Godwin, Director of Management and Budget; Mr. Ransom, Special Assistant to the City Manager for Human Relations; Mr. Neckel, Director of Finance; Dr. Claiborn, Director of Mental Health, Mental Retardation and Substance Abuse; Ms. Boyd, Director of Citizen Assistance; Ms. Plemmer, Assistant City Manager; Mr. Caton, Legislative Director; Mr. Sudduth, Director of Personnel Services; Ms. Davis, Director of Housing; Mr. Jinks, Director of Financial and Information Technology Services; Mr. Baier, Director of Transportation and Environmental Services; Mr. Ruller, Deputy Director of Transportation and Environmental Services; Ms. Whitmore, Director of Recreation, Parks and Cultural Activities; Ms. Barnett, Deputy Director of Recreation, Parks and Cultural Activities; Mr. Eiffert, Director of Agency on Aging; Fire Chief Hawkins; Police Chief Samarra; and Lieutenant Hayes, Police Department.

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

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OPENING

The Meeting was called to Order by Mayor Donley, and the City Clerk called the Roll; all Members of City Council were present.

(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 Proposed Annual Operating Budget for FY 2000-2001 (including Schools) and The Proposed Capital Improvements Program for FY 2001-2006 (including the Schools CIP). (#2 4/10/00; #8 3/14/00)

WHEREUPON, a motion was made by Councilman Speck, seconded by Council Member Walker to move the City Manager's proposed FY 2001 General Fund Operating Budget with the following revenue adjustments: (1) an increase of $174,700 in the estimate of General Fund Personal Property Tax Revenue, to reflect revised projections based on receipts through March 31, 2000, in the amount of $174,700; (2) an increase of $205,000 in the estimate of the General Fund Restaurant Meals Tax Revenue, to reflect revised projections based on actual revenues received through March 31, 2000, in the amount of $205,000; (3) an increase of $100,000 in the estimate of General Fund Motor Vehicle License Tax Revenue, to reflect revised projections based on actual revenues received through March 31, 2000, in the amount of $100,000; (4) an increase of $460,000 in General Fund Permit Fees and Licenses, to reflect revised projections based on actual revenues received through March 31, 2000, in the amount of $460,000; and (5) a decrease of $515,000 in the estimate of the General Fund Sales Tax Revenue, to reflect revised projections based on actual revenues received through March 31, 2000, the net increase of those 5 items is $424,700 in General Fund Revenues for FY 2001; in addition, (6) an increase of $325,000 in the estimate of General Fund Other Miscellaneous Local Tax Revenue to reflect an increase in the E-911 tax rate from $0.25 per line per month to $0.50 per line per month; Expenditure adjustments: (7) the addition of an additional 0.5 percent to the cost-of-living adjustment (COLA) for City and Schools employees to go from 2 percent to 2.5 percent, to remain competitive with comparator jurisdictions, in accordance with the City's Compensation Philosophy, that would be in the amount of $1,100,000 of which $650,000 will be for City employees and $450,000 will be for Schools employees, and the adjustments for that $1.1 million will be from the following funding sources: $289,763 from monies designated in the General Fund Balance for Compensation Adjustment Career Ladders that was set aside 4 years ago, $325,000 in revenues from the increase in the E-911 tax rate from $0.25 to $0.50 per line per month, $224,700 a portion of the increased FY 2001 General Fund Revenues, $260,537 as an increased appropriation from the undesignated General Fund Balance to total $1.1 million; further adjustments, (8) to approve the cost-of-living adjustment (COLA) for all City employees, including the City Manager, City Clerk and for City Council aides and the Mayor's aide, those monies are included in the FY 2001 Proposed Budget of 2 percent and the item just referred to would increase that to 2.5 percent; (9) further, to approve merit-in-step increases for all eligible City employees. The eligibility of the City Manager and City Clerk for this increase shall be conditioned upon a satisfactory evaluation by City Council, and the amount of any increase shall be set by Council, there is no net impact on the Budget for those items; (10) approve an increase in the employer share of health care benefits for active and retired City employees to help offset part of the expected cost increases, there is no net impact; (11) approve an increase in the per diem payment for the Board of Equalization, from $75 to $100, to be comparable to other Northern Virginia jurisdictions. The annual cost is approximately $7,000, and this funding is included in the non-departmental budget. There is no net impact; additionally, (12) to approve a transfer of $15,000 from Contingent Reserves to the Court Service Unit budget to provide full funding for the existing youth services activities primarily funded by the Virginia Community Crime Control Act (AJCCCA) grant, $15,000 is the expenditure addition to the Court Service Unit and the monies are provided for under Contingent Reserves; (13) approve a transfer of $72,300 from Contingent Reserves to the Department of Planning and Zoning to fund a full-time Urban Planner/Urban Designer position to work on redevelopment issues, that $72,300 consists of $67,000 in salary and benefits and $5,300 for a GIS computer, the $72,300 would be funded from the undesignated Contingent Reserves account in the non-departmental budget; further, (14) $200,000 in FY 2001, to the Burke Branch Library for operational facilities costs for new library services in conjunction with the school facilities; further, (15) to approve $100,000, to fund a position relating to adolescent services, specifically relating to teen pregnancy in Alexandria. This funding is for salary, administrative support and operational funding, and that amount is $100,000; (16) to approve an increase in the amount of $15,000, for the Alexandria Commission for the Arts competitive grant program; (17) to approve a $10,000 increase in the Recreation Department's operating budget for tree maintenance and watering; and (18) to approve a $50,000 increase in the budget for the Community Partnership Fund for Human Services, the competitive grant award pool. This would increase the grant award budget from $800,000 to $850,000 for programs providing human service needs to Alexandrians who are school-age or older. The appropriation from Fund Balance that would be necessary to balance the FY 2001 Budget, as amended, would be a revenue of $2,921,512, which figure incorporates the Manager's recommendation of an appropriation of $1,771,512; adopt the FY 2001 General Fund budget, as amended, in the following amounts: Total expenditures of $320,046,912 with an equal amount in total revenues of $320,046,912, which also includes a General Fund appropriation to the Alexandria City Public Schools of $98,780,870.

Mayor Donley stated that the balancing appropriation as Councilman Speck has indicated was $2,921,512. In addition, as a point of clarification on the motion, the additions for the teen pregnancy position, the Community Partnership Fund increase, the increase for the Commission for the Arts, and the increase for tree maintenance, the funding source for those is a combination of revenue adjustments and fund balance appropriations.

THEREUPON, Councilwoman Pepper moved to amend the pending motion to: (1) delete funding in the amount of $200,000 for converting the Burke Branch Library for joint use as a branch library and community learning center; (2) add funding in the amount of $540,000 for reopening the Burke Branch Library for sole use as a branch library; (3) delete funding in the amount of $540,000 from cash capital funding for the CIP; and (4) increase the City Manager's proposed designation for capital projects by an additional $540,000, with a corresponding decrease in the undesignated fund balance, to ensure full funding for capital projects; which motion was seconded by Councilman Cleveland and which motion FAILED on a vote of 2 "ayes" to 5 "nays". The voting was as follows:

Pepper "aye" Euille "no"
Cleveland "aye" Rich "no"
Donley "no" Speck "no"
Walker "no"

The Members of City Council participated in a discussion on the main motion which reads as follows:

WHEREUPON, upon motion by Councilman Speck, seconded by Council Member Walker and carried on a vote of 6-to-1, City Council approved the City Manager's proposed FY 2001 General Fund Operating Budget with the following revenue adjustments: (1) an increase of $174,700 in the estimate of General Fund Personal Property Tax Revenue, to reflect revised projections based on receipts through March 31, 2000, in the amount of $174,700; (2) an increase of $205,000 in the estimate of the General Fund Restaurant Meals Tax Revenue, to reflect revised projections based on actual revenues received through March 31, 2000, in the amount of $205,000; (3) an increase of $100,000 in the estimate of General Fund Motor Vehicle License Tax Revenue, to reflect revised projections based on actual revenues received through March 31, 2000, in the amount of $100,000; (4) an increase of $460,000 in General Fund Permit Fees and Licenses, to reflect revised projections based on actual revenues received through March 31, 2000, in the amount of $460,000; and (5) a decrease of $515,000 in the estimate of the General Fund Sales Tax Revenue, to reflect revised projections based on actual revenues received through March 31, 2000, the net increase of those 5 items is $424,700 in General Fund Revenues for FY 2001; in addition, (6) an increase of $325,000 in the estimate of General Fund Other Miscellaneous Local Tax Revenue to reflect an increase in the E-911 tax rate from $0.25 per line per month to $0.50 per line per month; Expenditure adjustments: (7) the addition of an additional 0.5 percent to the cost-of-living adjustment (COLA) for City and Schools employees to go from 2 percent to 2.5 percent, to remain competitive with comparator jurisdictions, in accordance with the City's Compensation Philosophy, that would be in the amount of $1,100,000 of which $650,000 will be for City employees and $450,000 will be for Schools employees, and the adjustments for that $1.1 million will be from the following funding sources: $289,763 from monies designated in the General Fund Balance for Compensation Adjustment Career Ladders that was set aside 4 years ago, $325,000 in revenues from the increase in the E-911 tax rate from $0.25 to $0.50 per line per month, $224,700 a portion of the increased FY 2001 General Fund Revenues, $260,537 as an increased appropriation from the undesignated General Fund Balance to total $1.1 million; further adjustments, (8) to approve the cost-of-living adjustment (COLA) for all City employees, including the City Manager, City Clerk and for City Council aides and the Mayor's aide, those monies are included in the FY 2001 Proposed Budget of 2 percent and the item just referred to would increase that to 2.5 percent; (9) further, to approve merit-in-step increases for all eligible City employees. The eligibility of the City Manager and City Clerk for this increase shall be conditioned upon a satisfactory evaluation by City Council, and the amount of any increase shall be set by Council, there is no net impact on the Budget for those items; (10) to approve an increase in the employer share of health care benefits for active and retired City employees to help offset part of the expected cost increases, there is no net impact; (11) to approve an increase in the per diem payment for the Board of Equalization, from $75 to $100, to be comparable to other Northern Virginia jurisdictions. The annual cost is approximately $7,000, and this funding is included in the non-departmental budget. There is no net impact; additionally, (12) to approve a transfer of $15,000 from Contingent Reserves to the Court Service Unit budget to provide full funding for the existing youth services activities primarily funded by the Virginia Community Crime Control Act (AJCCCA) grant, $15,000 is the expenditure addition to the Court Service Unit and the monies are provided for under Contingent Reserves; (13) to approve a transfer of $72,300 from Contingent Reserves to the Department of Planning and Zoning to fund a full-time Urban Planner/Urban Designer position to work on redevelopment issues, that $72,300 consists of $67,000 in salary and benefits and $5,300 for a GIS computer, the $72,300 would be funded from the undesignated Contingent Reserves account in the non-departmental budget; further, (14) $200,000 in FY 2001, to the Burke Branch Library for operational facilities costs for new library services in conjunction with the school facilities; further, (15) to approve $100,000, to fund a position relating to adolescent services, specifically relating to teen pregnancy in Alexandria. This funding is for salary, administrative support and operational funding, and that amount is $100,000; (16) to approve an increase in the amount of $15,000, for the Alexandria Commission for the Arts competitive grant program; (17) to approve a $10,000 increase in the Recreation Department's operating budget for tree maintenance and watering; and (18) to approve a $50,000 increase in the budget for the Community Partnership Fund for Human Services, the competitive grant award pool. This would increase the grant award budget from $800,000 to $850,000 for programs providing human service needs to Alexandrians who are school-age or older. The appropriation from Fund Balance that would be necessary to balance the FY 2001 Budget, as amended, would be a revenue of $2,921,512, which figure incorporates the Manager's recommendation of an appropriation of $1,771,512; adopted the FY 2001 General Fund budget, as amended, in the following amounts: Total expenditures of $320,046,912 with an equal amount in total revenues of $320,046,912, which also includes a General Fund appropriation to the Alexandria City Public Schools of $98,780,870. The voting was as follows:

Speck "aye" Euille "aye"
Walker "aye" Cleveland "no"
Donley "aye" Pepper "aye"
Rich "aye"

THEREUPON, upon motion by Councilman Speck, seconded by Council Member Walker and carried on a vote of 6-to-1, City Council adopted the FY 2001 to FY 2006 Capital Improvement Program with the additional expenditure for the Burke Branch Library to be in the FY 2001 Capital Improvement Program in the amount of $1,200,000 to be funded through an increase in the designation for capital funding from General Fund fund balance, with a corresponding decrease in undesignated fund balance. This proposal enables the City to remain within Council's adopted debt ratios. The voting was as follows:

Speck "aye" Euille "aye"
Walker "aye" Cleveland "no"
Donley "aye" Pepper "aye"
Rich "aye"

3. Second Reading and Final Passage of AN ORDINANCE to establish the real estate and personal property tax rates for calendar year 2000. (#3 4/10/00, #13 3/28/00)

WHEREUPON, upon motion by Vice Mayor Euille, seconded by Council Member Walker and carried on a ROLL-CALL vote of 6-to-1, City Council finally passed the Ordinance upon its Second Reading and Final Passage with no increase in the tax rates. The voting was as follows:

Euille "aye" Cleveland "no"
Walker "aye" Pepper "aye"
Donley "aye" Rich "aye"
Speck "aye"

The ordinance finally passed reads as follows:

ORDINANCE NO. 4131

AN ORDINANCE to amend and reordain Section 3-2-181 (LEVIED; AMOUNT) of Division 1 (REAL ESTATE), and Section 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 BOAT TRAILERS; AMOUNT), Section 3-2-222 (LEVIED ON MACHINERY AND TOOLS USED IN MINING OR MANUFACTURING BUSINESS; AMOUNT), Section 3-2-223 (LEVIED ON MOBILE HOMES; AMOUNT) and Section 3-2-224 (LEVIED ON AUTOMOBILES, TRUCKS, TRAILERS, SEMI-TRAILERS, TAXICABS, MOTORCYCLES, CAMPERS AND OTHER RECREATIONAL VEHICLES, BOATS AND TRAILERS; AMOUNT) 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.

THE CITY COUNCIL OF ALEXANDRIA HEREBY ORDAINS:

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 2000 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 $1.11 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 boat trailers; amount.

There shall be levied and collected for the calendar year 2000 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 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 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.

There shall be levied and collected for the calendar year 2000 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 Levied on mobile homes; amount.

There shall be levied and collected for the calendar year 2000 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 $1.11 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 Levied on automobiles, trucks, trailers, semi-trailers, antique motor vehicles, taxicabs, motorcycles, campers and other recreational vehicles, boats and trailers; amount.

(a) Except as provided in subsections (b), (c) and (d), there shall be levied and collected for the calendar year 2000 on all automobiles, trucks, trailers, semi-trailers, antique motor vehicles (as defined in section 46.2-100 of the Code of Virginia, 1950, as amended, which may be used for general transportation purposes as provided in subsection C of section 46.2-730 of the Code of Virginia, 1950, as amended), taxicabs, motorcycles, campers and other recreational vehicles, boats and boat 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 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.

(b) There shall be levied on and collected for the calendar year 2000 on all automobiles, trucks, trailers and semi-trailers with a gross vehicle weight of 10,000 pounds or more which are used to transport property for hire by a motor carrier engaged in interstate commerce, and are owned or held by residents or citizens of the city, are located within the territorial boundaries of the city or otherwise have a situs for taxation in the city, a tax of $4.50 on every $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.

(c) There shall be levied on and collected for the calendar year 2000 on all automobiles and trucks which are equipped with specially designed equipment for use by the handicapped and are owned or held by residents or citizens of the city, 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 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.

(d) There shall be levied on and collected for the calendar year 2000 on all privately owned pleasure boats and watercraft, which are used for recreational purposes only, and are owned or held by residents or citizens of the city, are located within the territorial boundaries of the city or otherwise have a situs for taxation in the city, a tax of $.01 on every $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 6. That this ordinance shall become effective upon the date and at the time of its final passage.

KERRY J. DONLEY
Mayor

Introduction: March 28, 2000
First Reading: March 28, 2000
Publication: March 30, 2000
Public Hearing: April 10, 2000
Second Reading: April 27, 2000
Final Passage: April 27, 2000

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THERE BEING NO FURTHER BUSINESS TO BE CONSIDERED, upon motion by Vice Mayor Euille, seconded by Councilwoman Pepper and carried on a vote of 6-to-0, at 8:18 p.m., the Special Meeting of Thursday, April 27, 2000, was adjourned. The voting was as follows:

Euille "aye" Cleveland out of room
Pepper "aye" Rich "aye"
Donley "aye" Speck "aye"
Walker "aye"

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APPROVED BY:

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KERRY J. DONLEY MAYOR

ATTEST:

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Beverly I. Jett, CMC City Clerk

BUDGET MEMO #30: FINAL FY 2000 ADD/DELETE LIST

NEWS RELEASE

MOTIONS RE: BURKE LIBRARY

CORRESPONDENCE

CITIZEN'S GUIDE

This docket is subject to change.

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