1

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

2

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%

3

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

5

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

6

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

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rop

ria

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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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City Appropriation City Appropriation per Student

7

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

8

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

9

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

10

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

11

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%

12

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

13

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

14

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