Alexandria has spent $5 million on new expenses to combat COVID-19 related problems, and in a town hall last night, Mayor Justin Wilson said he expects that number to double by the end of the pandemic.
“[We’ve] spent $5 million on COVID expenses,” Wilson said. “That’s things like hotel rooms for quarantine, hazard pay, things like that; a lot of emergent expenses.”
At the end of an exhausting emergency budget cycle, the City Council praised the work of staff for throwing together a $753.3 million fiscal year 2021 operating budget that fills a steep funding shortfall without curtailing city services.
In a 45 minute Zoom meeting, the City Council unanimously approved the budget with little discussion, following a week without any additions or deletions.
There will be no tax increase on the city manager’s proposed fiscal year 2021 budget, as the City Council swept through its budget public hearing on Saturday, paving the way for approval next Wednesday, April 29.
Council also unanimously approved the plan for the construction of the southern access to the Potomac Yard Metro station. The access will be a bridge that connects to the northern entrance, and will open at the same time as the station in March 2022.
Tying affordable housing funding to meals tax seemed like a safe bet in 2018, but with restaurants facing a dramatic loss in revenue due to coronavirus, affordable housing is out $1 million in the new budget.
According to the budget:
The City Council reviewed a substantially cut-back $753.3 million fiscal year 2021 operating budget at its meeting Tuesday night, and are now working through a months-long process that must be approved by April 29.
There were few budget surprises at the meeting, as the information was presented last week. The budget is 5.8% lower than the $800 million operating budget Jinks proposed before the COVID-19 pandemic, and includes $46.6 million in cuts to the operating budget and $140.6 million in the capital budget.
(Updated 1:10 p.m.) As expected, this year’s $753.3 million city government budget will be significantly cut down — with a $46.6 million reduction from the operating budget and $140.6 million in the capital budget put forward in April.
City Manager Mark Jinks called the new document “Budget 2.0,” representing the possibility that its contents are subject to change at next Tuesday’s (April 14) City Council meeting and throughout the budget process. Jinks said the total projected revenue loss for the 2020 and 2021 fiscal year is $92.2 million, and that the sharp reduction in the budget is due to a deferral of the 2 cent tax residential tax increase initially proposed and a steep drop off in commercial tax revenue.
City Manager Mark Jinks presented the City Council with preliminary estimates for a $743.5 million fiscal year 2021 budget on Wednesday night — a $56.4 million reduction from the budget he unveiled in February.
The COVID-19 pandemic has forced Alexandria to drastically change its budget over the course of the last month. Preliminary cuts include eliminating the previously proposed 2 cent real estate tax increase, implementing a city hiring freeze [except $2 million to hire new Health Department staff], deferring raises for city staff and reducing the multi-million dollar transfer to Alexandria City Public Schools.
Alexandria Mayor Justin Wilson is full of praise for the city’s COVID-19 response efforts, but the hard times are just beginning, he told ALXnow in a recent interview.
“Everyone is trying to find so many different ways to give back,” Wilson said. “It’s been very gratifying and we’re gonna need it because the need is only going to be exacerbated over the next couple of weeks and months, if not longer.”
Alexandria City Manager Mark Jinks said Monday that the COVID-19 pandemic has created the worst financial crisis he’s ever seen, and has asked staff to make $100 million in budget cuts and prepare for a $35 million revenue shortfall in his fiscal year 2021 budget.
“We crashed, and we don’t know how long this is going to last, when we’re going to come back up,” Jinks told the City Council/School Board Subcommittee in an online meeting. “I’ve told staff we need $100 million in cuts and savings between the current fiscal year and next fiscal year, is my rough guess. That will be savings and looking at capital projects and seeing what we need to cancel or what we need to reschedule to a future year.”
The Alexandria City Council on Tuesday unanimously approved a $1.155 real estate tax rate cap per $100 of assessed value — potentially a 2.5 cent increase — for the proposed city budget.
City Councilman John Taylor Chapman proposed that council approve a half cent more than the $1.15 rate proposed by City Manager Mark Jinks last month. That half cent equates to $2.1 million, which Chapman says is a cushion that will allow council to add budget items without making cuts.
Alexandria Sheriff Dana Lawhorne says that the city has a problem compensating its employees, and at Monday’s budget public hearing told city council that raising taxes is not the answer.
“The proposed budget does not close the gap with our competitors in the region,” Lawhorne said. “Taxes go up, people leave town. We need to change things.”
