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 2012 (including Schools) and the Proposed Capital Improvements Program for FY 2012-2017 (including the Schools CIP.) City Council adopted the annual general fund operating budget for FY 2012 of $566,862,748 with the following amendments to the City Manager's proposed budget. The details are described in the May 2, 2011 memo from the City Manager "FY 2012 budget adoption - draft of tentative actions for Monday Night." Technical expenditure decreases (net of increases) of $607,120. Other expenditure increases (net of decreases) of $14,095,467. General fund revenue re-estimate increases of $1,829,557 in support of the annual operating budget for FY 2012 (including schools.) Tax and fee rate changes and decreases (net of increases) in general fund revenue of $11,658,790. The total increase in expenditures compared to the City Manager's proposed budget is $13,488,347, including an increase of $12,529,994 in cash capital funding of the FY 2012-2021 Capital Improvement Program and an increase (net of decreases) in contingent reserves of $760,000, designated as shown in the docket item. In addition, the City Manager was authorized 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 health insurance premiums, details of these adjustments will be presented for approval by City Council in the context of the FY 2012 appropriations ordinance in June. City Council authorized the appropriation from general fund balance of $5,019,903 to support the operations of the City government as proposed by the City Manager. City Council commits the assignments of fund balance as proposed by the City manager with the amendments described in the adoption staff report. City Council adopted the FY 2012 to FY 2021 Capital Improvement Program of $1.146 billion in total and $1.124 billion in local funding. Of this amount, $93.0 million in total and $79.8 million in local funding is provided for FY 2012 capital expenditures as amended by City Council and reflected in budget memo #88. The FY 2012 to FY 2021 Capital Improvement Program includes a total of $145.1 million provided for the transportation improvement fund and $211.1 million provided for Alexandria City Public Schools capital needs, with $13.6 million provided for the transportation improvement fund in FY 2012 and $22.0 million provided for Alexandria City Public Schools capital needs in FY 2012. Council moved that the City Manager provide City Council with a June 2011 docket item describing the specific FY 2012 to FY 2021 project and financing proposal for the transportation improvement fund. City Council moved that the City Manager, working with the Alexandria City Public Schools, provide City Council with a June 2011 docket item describing the detailed FY 2012 capital project plan for Alexandria City Public Schools. 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 $1.00 per $100 of Assessed Value, Attributable to the Increase in Value of Assessed Property as of January 1, 2011, and Known as the "Effective Rate Increase" Pursuant to Section 58.1-3321 of the Virginia Code. (#7, 4/16/11) [ROLL-CALL VOTE] City Council established a source of revenue for transportation projects by reserving 2.2 cents of the real property tax rate on each $100 of assessed value. City Council set the City's 2011 blended real property tax rate at ninety-nine point eight cents ($0.998) on each $100 of assessed value, an increase of two cents ($0.02) from the 2010 rate. The 2011 real property tax rate contains the following dedications: The sum of six tenths of one cent on each $100 of assessed value of the ninety-nine point eight cent 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, 2011; the sum of five tents of one cent on each $100 of assessed value of the ninety-nine point eight cent real property tax rate will be collected for stormwater management and segregated in a separate special revenue fund to address operating and capital needs related to stormwater management; the sum of two point two cents on each $100 of assessed value of the ninety-nine point eight real property tax rate will be collected and reserved for the Transportation Improvement Fund; the sum of three tenths of one percent of total 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 total blended real property tax rate for the City in 2011 will be ninety-nine point eight cents; personal property tax rates remain unchanged from 2010. (ORD. NO. 4716) Council Action:_________________________________________________________ 4. Second Reading and Final Passage of an Ordinance to Codify the Tier 1 Potomac Yard Metrorail Station Special Services District as a Separate Classification For Real Estate Tax Purposes and to Establish the Tax Rate for Calendar Year 2011. (#8, 3/12/11) [ROLL-CALL VOTE] City Council adopted the ordinance to codify the Tier 1 Potomac Yard Metrorail Station Special Services District as a separate classification for real estate tax purposes and to establish a tax rate at $.20 on each $100 of assessed value to be imposed on Tier I property owners within the special services district in addition to the real property tax rate set by City Council for all properties in the City. The revenue from this special tax district provides funding to be used exclusively for the purpose of providing facilities and services related to the construction of the Potomac Yard Metrorail Station in the City of Alexandria and the construction of a pedestrian bridge from Potomac Greens to Potomac Yard. (ORD. NO. 4717) Council Action:_________________________________________________________ OTHER 5. Consideration of Appointment of the Acting City Manager. City Council appointed Bruce Johnson as the Acting City Manager. Council Action:_________________________________________________________ 6. Oral Report on Base Realignment and Closure (BRAC-133) Project at Mark Center. (Staff Presentation) City staff gave a presentation on the BRAC-133 project. Council Action:_________________________________________________________ EXECUTIVE SESSION 7. Consideration of a Closed Meeting to Discuss Personnel Matters and a Legal Matter. City Council convened in closed executive session at 9:00 p.m, pursuant to Sections 2.2-3711(A)(1) and (7) of the Code of Virginia,for the purpose of discussion and consideration of the appointment of a specific appointee and consultation with legal counsel and briefing by staff pertaining to actual or probable litigation where such consultation in open meeting would adversely affect the negotiation or litigation posture of the public body and for consultation regarding specific legal matters requiring the provision of legal advice. City Council reconvened the meeting at 9:39 p.m. City Council adopted a resolution pertaining to the Executive Session. (RES. NO. 2449) Council Action:_________________________________________________________