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FY 2011 Budget ProcessFY 2011 Budget ProcessOverview of City Manager’s Budget Overview of City Manager’s Budget
ProposalProposal
ACPS School BoardACPS School BoardThursday, February 18, 2010Thursday, February 18, 2010
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City Operating Fund SummaryCity Operating Fund Summary
►FY 2010 Approved Budget: $530.0 millionFY 2010 Approved Budget: $530.0 million
►FY 2011 Proposed Budget: $534.1 millionFY 2011 Proposed Budget: $534.1 million
►$ Change: $4.1 million$ Change: $4.1 million
►% Change: 0.8%% Change: 0.8%
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Average Residential Assessed Value Since 1990
447,873
$0
$100
$200
$300
$400
$500
$600
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Th
ou
san
ds
Calendar Year
4
City Revenue PictureCity Revenue Picture
► Total Real Estate Assessments: -7.45%Total Real Estate Assessments: -7.45%
► Real Estate: 56% of General Fund RevenueReal Estate: 56% of General Fund Revenue
► Real Estate Tax Rate: $0.973 vs. $0.903Real Estate Tax Rate: $0.973 vs. $0.903
► Even with 7 cents real estate property tax increase: Even with 7 cents real estate property tax increase: FY11 property tax revenues are almost same as in FY11 property tax revenues are almost same as in FY10FY10
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FY2011 City Transfer to ACPSFY2011 City Transfer to ACPS
► Requested By ACPS: $168.6 millionRequested By ACPS: $168.6 million
► Included in City’s Budget: $167.9 millionIncluded in City’s Budget: $167.9 million
► Difference: $0.7 millionDifference: $0.7 million
► City Transfer to ACPS: 31% of City Total Operating City Transfer to ACPS: 31% of City Total Operating Fund BudgetFund Budget
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Average City Revenue Per StudentAverage City Revenue Per Student
City Appropriation: Total and Per Student
$110,000,000
$120,000,000
$130,000,000
$140,000,000
$150,000,000
$160,000,000
$170,000,000
$180,000,000
FY 2007Actual
FY 2008Actual
FY 2009Actual
FY 2010 FinalBudget
FY 2011Proposed
Budget
Cit
y A
pp
rop
ria
tio
n
13,400
13,600
13,800
14,000
14,200
14,400
14,600
14,800
15,000
15,200
15,400
Cit
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pp
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ria
tio
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er
Stu
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City Appropriation City Appropriation per Student
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Three-Year Comparison of City Three-Year Comparison of City AppropriationAppropriation
FY 2011 Proposed
City Appropriation $167,953,749 $164,594,674 $168,559,439 Total Student Enrollment 11,225 11,623 12,002City Appropriation per Student
$14,962 $14,161 $14,044
Annual Change ($801) ($117)Change, FY2009 to FY2011 ($918)
FY 2009 Actual FY 2010 Actual
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Proposed Changes in City Proposed Changes in City CompensationCompensation
►Total decrease in FTE’s: 125.0Total decrease in FTE’s: 125.0
►Step: $2.8 millionStep: $2.8 million
►No Market Rate Adjustment (MRA) and No No Market Rate Adjustment (MRA) and No FurloughFurlough
►Health Care Premiums: 12% increase for Health Care Premiums: 12% increase for United Healthcare and 6% increase for Kaiser United Healthcare and 6% increase for Kaiser
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Proposed Changes in Health CareProposed Changes in Health Care
►Health Care Cost Sharing Rates: 13%-33% Health Care Cost Sharing Rates: 13%-33% Employee’s share of premiumsEmployee’s share of premiums
►Health Care Cost Sharing Rates will increaseHealth Care Cost Sharing Rates will increase§ Current Employees: 3% greater share in FY2011Current Employees: 3% greater share in FY2011§ New Employees: 20% of premium cost sharing New Employees: 20% of premium cost sharing
raterate§ Projected Savings: $0.75 millionProjected Savings: $0.75 million
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Proposed Changes in RetirementProposed Changes in Retirement
► Retirement Costs increased by 5.2% or $1.6 million Retirement Costs increased by 5.2% or $1.6 million (VRS & Supplemental)(VRS & Supplemental)
► Other Post Employment Benefits-OPEB: decreased Other Post Employment Benefits-OPEB: decreased by $1.0 millionby $1.0 million
► Estimated Unfunded Liability: $86.5 millionEstimated Unfunded Liability: $86.5 million
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City Budget Changes by Department City Budget Changes by Department From FY 2010 to FY 2011From FY 2010 to FY 2011
► Legislative & Executive: 4.4%Legislative & Executive: 4.4%
► Courts & Constitutional Officers: 2.1%Courts & Constitutional Officers: 2.1%
► Education: 2.0%Education: 2.0%
► General Government & Operating Agencies: 0%General Government & Operating Agencies: 0%
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Impact on ACPS & Alexandria ChildrenImpact on ACPS & Alexandria Children
► Education: 2% increaseEducation: 2% increase
► Public SafetyPublic Safety§ Creation of an Emergency Communication Department Creation of an Emergency Communication Department § 1.4% increase for Fire Department1.4% increase for Fire Department§ 2.7% increase for Building & Fire Code2.7% increase for Building & Fire Code§ Creation of an Emergency Communication DepartmentCreation of an Emergency Communication Department§ -2.8% for Police Department-2.8% for Police Department
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Impact on ACPS & Alexandria ChildrenImpact on ACPS & Alexandria Children
► Health & WelfareHealth & Welfare§ -3.5% for human services-3.5% for human services§ 6.5% increase for mental health/mental retardation/substance abuse 6.5% increase for mental health/mental retardation/substance abuse
servicesservices§ 2.6% increase for health department2.6% increase for health department
► Library: 2.8% increaseLibrary: 2.8% increase
► Parks, Recreational and Cultural Services: 1.9% increaseParks, Recreational and Cultural Services: 1.9% increase
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TimelineTimeline
►School Board Adopts Budget on March 4School Board Adopts Budget on March 4►City Council announces tax rate changes for City Council announces tax rate changes for
advertising purposes on March 13advertising purposes on March 13►Joint City Council School Board meeting on Joint City Council School Board meeting on
March 15March 15►Late March?: State budget adoptedLate March?: State budget adopted