FY 2018 CITY MANAGER’S PROPOSED BUDGET

Livable, Green & Prospering City

March 21, 2017

Agenda

• Focus Area Summary

• Position (FTE) Summary

• Budget Highlights by Department

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Focus Area Departments & Agencies

• Code Administration• Economic Development

• Visit Alexandria• Alexandria Economic Development Partnership (AEDP)• Alexandria Small Business Development Center (SBDC)• Other Economic Development Agencies

• Historic Alexandria• Housing• Planning & Zoning• Project Implementation• Recreation, Parks & Cultural Activities

(Cultural Activities and Park Operations)

• Transportation & Environmental Services• Transit Services (WMATA, DASH, Trolley, VRE, DOT

Paratransit)

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FY 2018 Budget by Focus AreaGeneral Fund $712.5M

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Livable All-Fund Summary by Department

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DepartmentFY 16 Actual

FY 17 Approved

FY 18 Proposed

$ Change% Change

Code $8.52M $8.62M $8.51M -$.11M -1.3%

Economic Development $5.29M $5.49M $5.44M -$.05M -1.0%

Historic Alexandria $3.36M $3.82M $3.96M $.14M 3.6%

Housing $7.06M $7.72M $12.24M $4.52M 58.6%

Planning & Zoning $5.34M $6.16M $6.15M -$.01M -0.1%

Project Implementation $2.58M $3.35M $3.16M -$.19M -5.7%

RPCA (Park Operations and

Cultural Activities only)$11.08M $11.76M $11.96M $.20M 1.7%

Transit Services $31.93M $30.35M $37.17M $6.81M 22.4%

T&ES $51.47M $51.71M $54.27M $2.56M 5.0%

Total $126.63M $128.98M $142.85M $13.87M 10.8%

Livable FTE by Department

Department FY 16 Actuals

FY 17 Approved

FY 18 Proposed

# Change

% Change

Code Administration 53.50 53.50 52.50 -1.00 -1.9%

Historic Alexandria 25.50 26.45 26.90 0.45 1.7%

Housing 15.00 15.00 15.00 0.00 0.0%

Planning & Zoning 45.50 45.50 46.50 1.00 2.2%

Project Implementation 24.00 24.00 24.00 0.00 0.0%

RPCA (Park Operations & Cultural

Activities only)

72.50 76.60 74.30 -2.30 -3.0%

T&ES 209.00 214.50 212.00 -2.50 -1.2%

Total 445.00 455.55 451.20 -4.35 -0.95%

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Transportation & Environmental Services

Stormwater Utility Fee

• A Stormwater Utility fee more equitably funds compliance with

new federal and state stormwater mandates

• Fee based upon the amount of impervious surface and type of residential

property

• Shifts stormwater-related expenditures to an enterprise fund

• Funds operating, capital, and debt services expenses

• Effective January 1, 2018, with first bill going out May 2018

• Raises $4.1M in FY 2018

• Fee impact for the second half of FY 2018:

• Condominium: $20

• Townhome: $29

• Single-Family Detached Home (<2,800 SF exterior impervious footprint): $70

• Single-Family Detached Home (>2,800 SF exterior impervious footprint): $1177

Transportation & Environmental Services

Departmental GF Revenues +$220.3K

• Refuse Collection• Residential (per household/year): $363 $373

• Commercial (per unit of service/year): $328 $373• Units of service are based on volume of waste disposed

• Leaf Mulch Delivery Fee• $50 $65 per load

• Noise Permits• Music amplification: $20 $25

• Construction: $50 $75

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Transportation & Environmental Services

Operating

• Reductions

• Transportation Demand Management reduction

(-0.5 FTE, -$60.0K)

• Efficiencies/Transfers

• Transfer 2.0 Call.Click.Connect. FTEs to DEC for improved

responses to non-emergency calls (-$149.2K)

• Reduce contractual obligations for haul and disposal

(-$161.0K)

• Charge internally produced survey work to CIP (-$89.2K)

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Transportation & Environmental Services

Transportation Improvement Program (TIP)

•Operating, $8.61M

• State of Good Repair

• $2.8M in WMATA operating assistance

• Street & Metroway maintenance

• High Priority Transportation Improvements

• Continued support for:

• Capital Bikeshare operations as more stations come on line

• DASH headway improvements

• Debt Service

• Capital Impacts, $1.00M

• $0.75M in WMATA capital assistance

• $0.20M for Van Dorn Multimodal Bridge

• $0.05M for Bus Shelters and Benches

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Transit Services

WMATA• $290M WMATA Total Operating Budget Gap

• Budget gap, which was caused mostly by declining ridership, filled via:

• Fare increases (bus and rail)

• Service cuts (bus and rail)

• Increased jurisdictional contributions

• Management/personnel actions

• City of Alexandria

• Operating Service = $40M*

• Increase of $7M from FY 2017

• Increase is entirely General Fund

• $2M TIP

• $5M non-TIP

• Capital Investment = $41M*

*If the WMATA Board approves what the Finance Board has recommended11

Transit Services

DASH

• General Fund operating support of $11.1 M ($2.0M from TIP)

• No change from FY 2017

• No fare or service reductions

• Capital – impacts to bus fleet replacement schedule

Trolley

• General Fund operating support of $952.9K ($206.9K from TIP)

• Decrease of $39.4K from FY 2017

• Change service starting time from 10:00AM to 10:30AM

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Recreation, Parks & Cultural ActivitiesReductions

• Ball Field Preparations (-$54.1K)

• User groups would be responsible for line markings and in-field preparations

• RPCA would still maintain current level of field mowing

• Reduce Mowing and Leaf Collection in Parks (-$115.1K)

• Leaf collection reduced to once per year

• Park mowing reduced from 15 to 13 cycles/year and more “no-mow” zones established

• Reduce Mowing in ROWs (-$18.8K)

• Reduced from 10 cycles/year to 8 cycles/year

• Eliminate Weeding and Mulching of Landscape Beds in City ROWs ($-13.2K) 13

Recreation, Parks & Cultural Activities

Reductions (continued)

• Contract Out Equipment Maintenance (-$40.0K)

• Eliminates 1.0 FTE

• Reduce Budgeted City Contribution to Parades

(-$18.0K)

• Per City Council Approved Special Events Policy

• Reduce Funding for Previously Planned Enhanced

Events at Fitzgerald Square (-$30.0K)

• Transfer Funding for Tree Planting to CIP (-$72.0K)

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Project Implementation

Efficiencies

• Restructure funding of DPI Inspectors (-$99.1K)

• For all Inspector positions (4.0 FTE), time spent supporting capital projects would be charged to each CIP project

• Previously 2.0 FTE Inspector positions capitalized

• Savings to CIP through fewer contracted inspection hours

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Office of Historic Alexandria

Investments

• Gadsby’s Tavern 1.0 FTE Assistant Director (+$75.0K)• 50% funded by donations

Reductions

• Eliminate 0.3 FTE Volunteer Coordinator (-$16.1K)• Supervises 40 to 50 volunteers annually

• Duties would be distributed to other staff

• Reduce 0.5 FTE Records Clerk Position to 0.25FTE (-$9.1K)• Vacant position would respond to public FIOA requests

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Office of Housing

Affordable Housing Development Funding

• Proposed FY 2018 Budget includes $4.1M for a new project• $0.8M - Dedicated real estate tax revenue

• $0.8M - Remaining FY 2017 bond allocation for affordable housing to be issued in FY 2019

• $0.45M - Federal HOME and match

• $2.0M - Housing Trust Fund dollars (developer contributions and loan repayments)

• Proposed Budget also includes funds previously authorized for the Carpenter’s Shelter Redevelopment • Partially Funded with $4.4M in city issued GO Housing Bonds

• Bonds obligated in FY 2017 budget so Carpenter’s could be 2017 LIHTC project; money will actually be spent in FY 2018 and will be repaid from existing 6/10 of a cent revenues

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Office of Housing

Affordable Housing Pipeline Projects

• Bradlee Area Project• Pending applicant approval

• 82 units

• Anticipated ~$4.1M City loan request

• Church of the Resurrection (AHC) Redevelopment (Beauregard)• 113 units

• $8.4M City loan request

• Unfunded Supplemental CIP• Includes $4.3M to fully fund 113-unit Church of the Resurrection

(AHC) affordable housing project

• Project moves forward as City-supported 2018 LIHTC project if additional sources are identified within FY 2018 budget

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Planning & Zoning

• Draft Long Range Planning Work Program

• Eisenhower East Phase 1

• Strategic Facilities Plan

• Long Range Education Facilities Plan Phase 2

• Environmental Action Plan Update

• Route 1 South Affordable Housing Strategy

• Parking standards for new commercial development

• Small area plan implementation, focusing on Eisenhower

West and Old Town North

• Regulatory reform initiatives

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Economic Development

Visit Alexandria

Investments

• Outdoor Advertising Targeting MGM National Harbor Guests (+$50.0K)

• New Data Research Tool (+$21.0K)• To evaluate which advertising placements have the best return on

investment

• National Science Foundation Orientation (+$15.0K)

Reductions

• Regional Advertising (-$10.3K)• Mercy Street Advertising (-$150.0K)

• Elimination of $150,000 Mercy Street advertising since PBS is not renewing for a third season. If another network picks up the show, funding could be provided from City’s economic development reserves

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Economic DevelopmentAlexandria Economic Development Partnership

Investments

• Expand the Retail Pop-up Pilot (+$50.0K)

• Build on the success of the original Old Town location by expanding to other parts of the City to focus on attracting new brands interested in testing the Alexandria market

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Other Economic Development Agencies

Marketing Fund

Reductions

• Re-allocation of the Marketing Fund (-$100.0K)• Funding repurposed for marketing projects targeted to support the

business community such as MGM National Harbor advertising and the expansion of retail pop-up program

Code Administration

Efficiencies

• Completion of Scanning Project (-$120.6K)

• One-time initiative has been competed and non-expenditures related to the project are no longer needed

Transfers to Other Departments

• 1.0 FTE Transferred to DEC as Result of Call.Click.Connect. Merger (-$64.4K)

• Remains funded by Permit Fees

• Sewer-related Rodent Abatement Transferred to the Sanitary Sewer Fund (-$90.0K)

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Tuesday, February 21 7:00pm Budget Work Session: Revenues/Five Year Financial Planning Model/Compensation

Tuesday, February 28 7:00 pm WMATA CIP & City Debt Policy Update (during Legislative meeting)

Wednesday, March 1 7:00pm Budget Work Session: Capital Improvement Program

Wednesday, March 8 7:00pm Budget Work Session: Alexandria City Public Schools

Monday, March 13 4:00pm Public Hearing: FY 2018 Budget

Tuesday, March 14 7:00pm Introduce the Maximum Property Tax Rates

Wednesday, March 15 7:00pm Budget Work Session: Healthy & Thriving Residents

Tuesday, March 21 7:00pm Budget Work Session: Livable, Green & Prospering City

Wednesday, March 29 7:00pm Budget Work Session: Safe, Secure & Just Community

Wednesday, April 5 7:00pm Budget Work Session: Accountable, Effective & Well-Managed Government

Wednesday, April 19 7:00pm Budget Work Session: TBD

Saturday, April 22 9:30am Public Hearing: FY 2018 Tax Rate

Tuesday, April 25 6:00pm Budget Work Session: Preliminary Add/Delete Discussion

Monday, May 1 7:00pm Budget Work Session: Final Add/Delete Discussion

Thursday, May 4 7:00pm Special Meeting: Budget Adoption

Budget Development Dates