Action Docket for Special Meeting (05/03/2010)

Office of the City Clerk
May 4, 2010

Special Meeting
Monday, May 3, 2010 - - 6:30 p.m.

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OPENING

1. Calling the Roll.

The meeting was called to order by Mayor Euille, and the City Clerk called the roll; all the members of Council were present.
Council Action:_________________________________________________________

REPORTS AND RECOMMENDATIONS OF THE CITY MANAGER FOR DISCUSSION

2. Consideration of the Proposed Annual Operating Budget for FY 2011 (including Schools) and the Proposed Capital Improvements Program for FY 2011-2016 (including the Schools CIP.)

City Council adopted the annual general fund operating budget for FY2011 of $531,611,539 with the following amendments to the City Manager's proposed budget. The details of each amendment are described in the April 30, 2010 memo from the City Manager, "FY 2011 Budget Adoption - Draft of Tentative Actions for Monday Night" accompanying docket item #2: technical expenditure decreases (net of increases) of $4,554,481; other expenditure increases (net of decreases) of $2,038,021; revenue re-estimate decreases (net of increases) of $4,546,480; and tax and fee rate and new revenue increases of $2,030,020. The total increase in expenditures compared to the City Manager's proposed budget is $2,516,460, including an increase in cash capital funding for the FY 2011 - 2020 Capital Improvement Program of $295,000 and an increase in contingent reserves of $1,600,000. In addition, Council authorized the City Manager to make technical adjustments to each affected Departmental Budget from the non-departmental budget to reflect the proper allocation to departmental budgets of the adjustments related to items such as health insurance premiums, travel and education, fuel, postage and consulting services, details of these adjustments will be presented for approval by City Council in the context of the FY 2011 appropriations ordinance in June.

City Council moved that Council assign the Budget and Fiscal Affairs Advisory Committee (BFAAC) the following special projects in the 2011 Fiscal Year:

1. BFAAC should work with City staff to develop adequate metrics to evaluate the total financial burden from all taxes, fees, fines and charges on the average resident in the City of Alexandria.

2. BFAAC should work with City staff to propose an amendment to the City’s debt-related financial guidelines that includes a policy, similar to other guidelines, on the use of Cash Capital from current revenues, prior year surpluses, and other sources to fund the Capital Improvement Program.

3. BFAAC should work with City staff to examine the use and funding of City contracts and consultant services and the provision of funding for employee travel and education expenses.

City Council moved that it was the intent and understanding of the City Council in adopting the FY 2011 General Fund Operating Budget:

1. That the Schools realized $2.0 million in savings in FY 2010 from the waiver of their 4th quarter Virginia Retirement System (VRS) payment provided by General Assembly action;

2. That the Schools need $4.9 million less in FY 2011 than requested in the School Board approved budget and provided by the adopted budget due to the lower than budgeted VRS rate.

3. That these artificially low rates of payment being required in FY 2010 and FY 2011 will lead to large future cost increases for the Schools as the VRS rates increase to make up for years of underfunding;

4. That the Schools Staff and School Board are to be commended for considering a responsible way to use these funds to minimize future increases in the Schools budget for the cost of VRS benefits;

5. That it is Council’s intent in including $4.9 million in the operating transfer to the Schools, that those funds are for purposes of minimizing increases in the Schools’ budget for the future cost of VRS benefits;

6. That it is the understanding of City Council that the School Board will include in its motion adopting a FY 2011 operating budget language setting aside $4.9 million in funds for future VRS payments in accord with the April 12

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and April 28

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memoranda from Schools Staff suggesting this course of action.

7. That the Schools will face costs in implementing a Federally required transformation plan to address the designation of T.C. Williams as an persistently lowest-achieving school;

8. That the Schools Staff believes that $2.0 million in the Schools’ fund balance available from the FY 2010 VRS 4

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quarter payment waiver may need to be used in funding the costs of a transformation plan for secondary schools in a plan addressing the designation of T.C. Williams as a persistently lowest-achieving (PLA) school;

9. That to the extent this $2.0 million is not needed for this transformation plan for secondary schools, such funds shall also be set-aside for future VRS rate increases; and

10. That nothing in this addendum shall be construed as imposing a legal obligation on the Schools to spend these funds in any particular manner.

City Council moved to authorize the increase of the Sanitary Sewer Fee from $1.00 to $1.25 as proposed in the City Manager’s Operating and Capital Improvement Program Budgets. The revenues generated from the Sanitary Sewer Fee are segregated in a Special Revenue Fund and are used to support both operating and capital expenses related to the Sanitary Sewer system. This change will be reflected in a subsequent ordinance to be introduced in May.

City Council authorized the appropriation from General Fund Balance of $5,499,291. This reflects an increase of $755,000 compared to the City Manager’s Proposed budget. The source of this increase will be from cancelled Contingent Reserves projects currently budgeted in FY 2010.

City Council moved the adoption of the proposed FY 2011 to FY 2020 Capital Improvement Program of $707,133,050 million in total and $691,813,050 million in local funding, with $106,126,923 million in total and $100,676,926 million in local funding in FY 2011; $65,103,447 million in total and $60,948,447 million in local funding in FY 2012; $72,044,776 million in total and $71,639,776 million in local funding in FY 2013; $59,341,616 million in total and $59,186,616 million in local funding in FY 2014; $62,346,026 million in total and $62,191,026 million in local funding in FY 2015; $73,002,706 million in total and $72,002,706 million in local funding in FY 2016; $68,408,843 million in total and $67,408,843 million in local funding in FY 2017; $66,876,697 million in total and $65,876,697 million in local funding in FY 2018; $66,666,406 million in total and $65,666,406 million in local funding in FY 2019; and $67,215,607 million in total and $66,215,607 million in local funding in FY 2020.
Council Action:_________________________________________________________

ORDINANCES AND RESOLUTIONS

3. Second Reading and Final Passage of an Ordinance on the Increase in Real Estate Tax Revenue, at a Rate Not to Exceed $0.99.3 per $100 of Assessed Value, Attributable to the Increase in Value of Assessed Property as of January 1, 2010, and Known as the "Effective Rate Increase" Pursuant to Section 58.1-3321 of the Virginia Code. (#3, 3/13/10) [ROLL-CALL VOTE]

City Council moved final passage of an ordinance to set the City’s 2010 blended real property tax rate at $0.978 (ninety-seven point eight cents) on each $100 of assessed value, an increase of $0.075 (seven and a half cents) from the 2009 rate. $0.973 (ninety-seven point three cents) will provide general fund revenues in support of City government operations. The sum of $0.006 (six tenths of one cent) on each $100 of assessed value of the $0.973 (ninety-seven point three cents) real property tax rate will be dedicated for affordable housing purposes to continue to pay budgeted debt service on affordable housing bonds, beginning July 1, 2010. This change will be reflected in a subsequent ordinance amending City Code Section 3-1-5, to be introduced in May. In addition, the sum of 0.3% (three tenths of a percent) of real property tax revenue will continue to be dedicated to the Open Space Trust Fund to continue to pay budgeted debt services on borrowing for open space purposes. The sum of $0.005 (five tenths of one cent) on each $100 of assessed value of real property tax will be collected for stormwater management and established as a separate special revenue fund to address operating and capital needs related to stormwater management. This change will be reflected in a subsequent ordinance to be introduced in May. The total blended real property tax rate for the City in 2010 will be $0.978. Personal property tax rates remain unchanged from 2009. (ORD. NO. 4656)
Council Action:_________________________________________________________

4. Consideration of a Resolution to Establish the Annual Fee for the City's Collection and Disposal of Solid Waste, Yard Debris and Recyclable Materials. [ROLL-CALL VOTE]

City Council adopted the resolution to increase the residential refuse fee from $331 per household to $336. This increase enables the City to continue the City’s policy of 100 percent cost recovery of the full cost of residential refuse collection and disposal and provides $9 to fund the use of larger recycling bins to increase recycling rates and improve convenience and service to users. (RES. NO. 2395)
Council Action:_________________________________________________________

5. Consideration of a Resolution to Adopt Code Administration Fee Increases. [ROLL-CALL VOTE]

City Council adopted a resolution to increase Code Administration Fees by the amounts described in Docket Item #5 and that we establish a Special Revenue Fund for New Construction-related activities that is fully funded by permit and inspection fees. (RES. NO. 2396)
Council Action:_________________________________________________________

The meeting adjourned at 8:06 p.m.

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Note: The action docket is a summary of Council's meeting deliberations prepared largely for staff follow-up. Formal minutes of the meeting, when approved by Council, become the official record of the meeting and of Council decisions made at the meeting.

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. Meeting materials are also available on-line at alexandriava.gov/council

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