Special Meeting -- Budget Adoption
Wednesday, May 6, 1998 - - 7:30 p.m.
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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: Mrs. Lawson, City Manager; Mr. Sunderland, City Attorney; Ms. Evans, Assistant City Manager; Ms. Steele, Deputy City Manager; Mrs. Godwin, Director of Management and Budget, and members of her Staff; Mr. Brannan, Assistant City Manager; Mr. Gitajn, Director of Financial and Information Technology Services; Mr. Sanderson, Director of Real Estate Assessments; Mr. Neckel, Director of Finance; Mr. O'Kane, Director of Transportation and Environmental Services; Mr. Lynn, Director of Planning and Zoning; Ms. O'Regan, Director of Human Services; Ms. Barnett, Deputy Director of Parks, Recreation and Cultural Activities; Ms. Boyd, Director of Citizen Assistance; Ms. Federico, Director of Historic Alexandria; Dr. Claiborn, Director of Mental Health, Mental Retardation and Substance Abuse; Mr. Simmons, Acting Director of Recreation, Parks and Cultural Activities; Mr. Sudduth, Director of Personnel Services; Fire Chief Hawkins; Dr. Lipsman, Director of Health Department; Ms. Davis, Director of Housing; Mr. Cole, Director of Information Technology Services; Ms. Gattsek, Director of Office on Women; Mr. Ransom, Special Assistant to the City Manager; Mr. Eiffert, Director of Agency on Aging; Mr. Schott, Director of General Services; Mr. McMahon, Deputy Director of General Services; Police Chief Samarra; Mr. O'Brien, Director of Library; Members of the School Board; Superintendent Berg; and Lieutenant Butler, 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 1998-99 (including Schools) and The Proposed Capital Improvements Program for FY 1999-2004 (including the Schools CIP). (#2 3/31/98; #2 3/17/98)
(Copies of communications received on this item are on file in the office of the City Clerk and Clerk of Council, marked collectively as Exhibit No. 1 of Item No. 2; 5/6/98, and is incorporated herewith as part of this record by reference.
A copy of a news release dated May 6, 1998, is on file in the office of the City Clerk and Clerk of Council, marked Exhibit No. 2 of Item No. 2; 5/6/98, and is incorporated herewith as part of this record by reference.)
The following motion was made and seconded. Following it the Members of City Council made comments with respect to the FY 1998-99 budget adoption:
WHEREUPON, a motion was made by Vice Mayor Euille, seconded by Councilwoman Pepper that City Council adopt the City Manager's proposed budget with the following amendments: (1) the estimate for revenues derived from the BPOL tax be increased by $480,000; (2) the transient lodging tax rate be increased to 5.65% yielding additional revenues of $102,000; (3) the Council defer enactment at this time of an amusement tax which would decrease revenues by $100,000; (4) the budget for the Alexandria Convention and Visitors Association be increased by $100,000; (5) the budget for the Department of Human Services for the Alexandria Commission of Persons with Disabilities be increased by $25,000; (6) the budget for the Health Department be increased by $10,000; and (7) the operating budget for the Alexandria City Public Schools be increased by $300,000. It is the Council's intention that the additional funds allocated to the Alexandria Public Schools from other sources not be used to reduce the City's appropriation to the schools; further, the Council designates that $45,000 in Contingent Reserves be set aside to increase the matching funds proposed in the Manager's budget for the plans relative to the construction of a new Animal Shelter; and, finally, the Council requests that the City Manager work with the Commonwealth Attorney's Office to establish an Office of Parking Adjudication, and the Council expresses its willingness to expend funds from Contingent Reserves towards the establishment of this Office.
Vice Mayor Euille stated to account for the changes proposed in this motion and in keeping with Resolution No. 1849, he proposed that revenue revisions to the BPOL tax and the Transient Lodging tax be used to offset any additions to the Manager's proposed budget.
Councilman Speck offered the following amendment to the above motion which was accepted by the maker and seconder: In our June appropriation ordinance, we should appropriate $3 million to the schools for acquisition of land at Cameron Station, and we should appropriate $4.125 million to a City contingent account to be held pending the City's decision on the construction of a new school per our discussion that was had in the work session; therefore, Council returned to the original motion, as amended, which now reads as follows:
WHEREUPON, upon by Vice Mayor Euille, seconded by Councilwoman Pepper, and carried on a vote of 6-to-1, City Council adopted the City Manager's proposed budget with the following amendments: (1) the estimate for revenues derived from the BPOL tax be increased by $480,000; (2) the transient lodging tax rate be increased to 5.65% yielding additional revenues of $102,000; (3) the Council defer enactment at this time of an amusement tax which would decrease revenues by $100,000; (4) the budget for the Alexandria Convention and Visitors Association be increased by $100,000; (5) the budget for the Department of Human Services for the Alexandria Commission of Persons with Disabilities be increased by $25,000; (6) the budget for the Health Department be increased by $10,000; and (7) the operating budget for the Alexandria City Public Schools be increased by $300,000. It is the Council's intention that the additional funds allocated to the Alexandria Public Schools from other sources not be used to reduce the City's appropriation to the schools; further, the Council designates that $45,000 in Contingent Reserves be set aside to increase the matching funds proposed in the Manager's budget for the plans relative to the construction of a new Animal Shelter; and the Council requests that the City Manager work with the Commonwealth Attorney's Office to establish an Office of Parking Adjudication, and the Council expresses its willingness to expend funds from Contingent Reserves towards the establishment of this Office. In our June appropriation ordinance, we should appropriate $3 million to the schools for acquisition of land at Cameron Station, and we should appropriate $4.125 million to a City contingent account to be held pending the City's decision on the construction of a new school per our discussion that was had in the work session. The voting was as follows:
Euille "aye" Cleveland "no"
Pepper "aye" Rich "aye"
Donley "aye" Speck "aye"
Walker "aye"
General Discussion. Members of City Council made comments with respect to the Budget just adopted, and thanked staff for a job well done.
3. Second Reading and Final Passage of 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 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 AUTOMOBILE, 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 ordinance sets the city’s 1998 tax rates for real property at $1.13 $1.11 and tangible personal property at $4.75. (#14(b) 4/18/98; #5 3/31/98; #21 3/24/98) [ROLL-CALL VOTE]
(A copy of the City Manager's memorandum dated March 19, 1998, is on file in the office of the City Clerk and Clerk of Council, marked Exhibit No. 1 of Item No. 3; 5/6/98, and is incorporated herewith as part of this record by reference.)
The City Clerk read the docket item.
Council Member Rich stated for the record that there was an issue discussed in the work session that he would like to comment on relative to the tax rate. He indicated that if there would have been support for going to the half step for implementing the pay plan without the six cent tax rate increase and fully funding the school's capital budget, he would have supported only doing a three cent tax rate increase. He supported BFAAC's proposals supported by the Chamber, but he does support what Council is doing and he thinks it is the right thing to do.
Councilman Speck noted that the ordinance needed to be amended to include the new tax rate of $1.11 in Sections 3-2-181 and 3-2-223.
WHEREUPON, upon motion by Councilman Speck, seconded by Vice Mayor Euille and carried on a unanimous ROLL-CALL vote of 6-to-1, City Council finally passed the ordinance on its Second Reading and Final Passage with an amendment to Sections 3-2-181 and 3-2-223 by inserting the new real property tax rate of $1.11; which ordinance sets the City's 1998 tax rates for real property at $1.11 and tangible personal property at $4.75. The voting was as follows:
Speck "aye" Cleveland "no"
Euille "aye" Pepper "aye"
Donley "aye" Rich "aye"
Walker "aye"
The ordinance finally passed, as amended, reads as follows:
ORDINANCE NO. 3993
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 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 1998 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 1998 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 1998 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 1998 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) and (c), there shall be levied and collected for the calendar year 1998 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 1998 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 1998 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.
Section 6. That Section 3-2-231 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. 3-2-231 Certain tangible personal property exempt from tax.
The following classes of household goods and personal effects shall be exempt from the tax on tangible personal property. This exemption shall apply only to property that is owned and used by an individual or a family or household incident to maintaining an abode.
(2) household and kitchen furniture, including gold and silver plates, plated ware, watches and clocks, sewing machines, refrigerators, automatic refrigerating machinery of any type, vacuum cleaners, and all other household machinery, books, firearms and weapons of all kinds;
(3) pianos, organs, phonographs and record players, and records to be used therewith, and all other musical instruments of whatever kind, radio and television instruments and equipment;
(4) oil paintings, pictures, statuary, curios, article of virtu and works of art;
(5) diamonds, cameos and other precious stones and all precious metals used as ornaments or jewelry;
(6) sporting and photographic equipment;
(7) clothing and objects of apparel;
(8) antique motor vehicles as defined in section 46.2-100 of the Code of Virginia, 1950, as amended, which may not be used for general transportation purposes;
(9) all other tangible personal property used by an individual or a family or household incident to maintaining an abode.
Section 7. That this ordinance shall become effective upon the date and at the time of its final passage.
KERRY J. DONLEY
Mayor
Introduction: 3/31/98
First Reading: 3/31/98
Publication: 4/2/98; 4/3/98
Public Hearing: 4/18/98
Second Reading: 5/6/98
Final Passage: 5/6/98
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4. Second Reading and Final Passage of AN ORDINANCE to amend the City Code by increasing the transient lodging tax from 5 percent to 5.50 5.65 percent. (#3 3/31/98; #22 3/24/98) [ROLL-CALL VOTE]
The City Clerk read the docket item.
Councilman Speck noted that the ordinance needed to be amended in Section 3-2-142 by changing the rate to 5.65 percent.
WHEREUPON, upon motion by Councilman Speck, seconded by Councilwoman Pepper and carried on a ROLL-CALL vote of 6-to-1, City Council finally passed the ordinance upon its Second Reading and Final Passage by amending Section 3-2-142 to read 5.65 percent; which ordinance increases the transient lodging tax from 5 percent to 5.65 percent. The voting was as follows:
Speck "aye" Euille "aye"
Pepper "aye" Cleveland "no"
Donley "aye" Rich "aye"
Walker "aye"
The ordinance finally passed, as amended, reads as follows:
ORDINANCE NO. 3994
AN ORDINANCE to amend and reordain Section 3-2-142 (LEVY AND RATE) of Article K (TRANSIENT LODGING TAX), 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 3-2-142 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. 3-2-142 Levy and rate.
In addition to any other tax imposed by law, there is hereby imposed and levied on each and every transient a tax equivalent to 5.65% of the total amount paid for room rental by or for any such transient to any hotel.
Section 2. That this ordinance shall become effective on July 1, 1998.
KERRY J. DONLEY
Mayor
Introduction: 3/24/98
First Reading: 3/24/98
Publication: 3/27/98
Public Hearing: 3/31/98
Second Reading: 5/6/98
Final Passage: 5/6/98
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5. Second Reading and Final Passage of AN ORDINANCE to amend the City Code by establishing an admission tax on the price paid to gain entrance to places of amusement or entertainment and sporting events. (#4 3/31/98; #23 3/24/98) [ROLL-CALL VOTE]
(A copy of the ordinance referred to in the above item, of which each Member of Council present received a copy not less than 24 hours before said introduction, is on file in the office of the City Clerk and Clerk of Council, marked Exhibit No. 1 of Item No. 5; 5/6/98, and is incorporated herewith as part of this record by reference.
A copy of an Informal Memorandum explaining ordinance is on file in the office of the City Clerk and Clerk of Council, marked Exhibit No. 2 of Item No. 5; 5/6/98, and is incorporated herewith as part of this record by reference.)
The City Clerk read the docket item.
WHEREUPON, upon motion by Councilman Speck, seconded by Councilwoman Pepper and carried unanimously, City Council tabled this ordinance. The voting was as follows:
Speck "aye" Euille "aye"
Pepper "aye" Cleveland "aye"
Donley "aye" Rich "aye"
Walker "aye"
THERE BEING NO FURTHER DISCUSSION, upon motion by Vice Mayor Euille, seconded by Councilwoman Pepper and carried unanimously, at 9:05 p.m., the Special Meeting of Wednesday, May 6, 1998, was adjourned. The voting was as follows:
Euille "aye" Cleveland "aye"
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
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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