City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 5, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Amend and Reordain Section 3-1-2 of the City Code to Remove the Real Estate Tax Dedication to the Open Space Trust Fund Account. (Alternatively, Consideration of a Resolution to Reaffirm The Dedication to the Open Space Trust Fund Account.)
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ISSUE: To remove the real estate property tax rate dedication of 0.3% of real estate property tax revenues to the Open Space Trust Fund Account, with no change in the amount of funding for the program for FY 2014.
RECOMMENDATION: That City Council approve, on first reading, the attached ordinance that removes the 0.3% of real estate tax revenues dedicated to the Open Space Trust Fund Account and set it for public hearing and final approval on Saturday, June 15.
If Council wishes to continue the dedication, vote no to the attached ordinance. Alternatively, a resolution will then need to be adopted to reaffirm the continuation of the dedicated set-aside for the Open Space Trust Fund Account.
DISCUSSION: During the FY 2014 budget process, the Budget and Fiscal Affairs Advisory Committee (BFAAC) expressed opposition to the use of revenue set-asides (automatic revenue dedications) that fall outside of the General Fund or Capital Improvement Program (CIP) budget process. This citizen group noted that during a challenging budget year such as this one, Council should have flexibility to evaluate all spending and determine priorities based on the City's Strategic Plan.11 Budget Memo #19: BFAAC Review of the FY 2014 Proposed Budget On May 6th, Council motioned to remove the 0.3% of the real estate tax revenues dedicated to the Open Space Trust Fund Account.
FISCAL IMPACT: The removal of this tax rate dedication would have no impact on the amount of funding for the open space program in the FY 2014 budget. The amount of revenue provided to fund this program would remain the same as adopted in the budget; however, the dedication of a portion of the tax rate would be removed.
The FY 2014 adopted budget included a 0.3% real estate tax revenue dedication for open space which provides approximately $0.5 million in revenue to pay debt service on bonds previously issued for open space acquisition. Additionally, the CIP includes $23.3 million programmed for new open space acquisition and development through FY 2023. The funding provided through this dedication and other sources will remain the same as adopted in the FY 2014 budget, regardless of the dedication.
ATTACHMENT:
Proposed Ordinance to Remove Real Estate Tax Dedication to the Open Space Trust Fund Account.
STAFF:
Mark Jinks, Deputy City Manager
Nelsie Smith, Director, Office of Management and Budget
Morgan Routt, Assistance Director, Office of Management and Budget
Christina Zechman Brown, Assistant City Attorney
Paul Doku, Budget/Management Analyst, Office of Management and Budget
City of Alexandria, Virginia
________________
MEMORANDUM
DATE: JUNE 5, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution to Reaffirm The Real Estate Tax Dedication to the Open Space Trust Fund Account
BODY
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ISSUE: To continue the real estate property tax rate dedication of 0.3% of real estate property tax revenues to the Open Space Trust Fund Account.
RECOMMENDATION: That City Council approve the attached resolution that continues the 0.3% of real estate tax revenues dedicated to the Open Space Trust Fund Account.
DISCUSSION: As part of the adoption of the FY 2014 budget on May 6, Council approved an ordinance to set the City's real estate property tax rate and motion to remove the dedication of 0.3% of real estate tax revenues dedicated to the Open Space Trust Fund Account with no change in the amount of funding budgeted for this program.
During the FY 2014 budget process, the Budget and Fiscal Affairs Advisory Committee (BFAAC) expressed opposition to the use of revenue set-asides (automatic revenue dedications) that fall outside of the General Fund or Capital Improvement Program (CIP) budget process. This citizen group noted that during a challenging budget year such as this one, Council should have flexibility to evaluate all spending and determine priorities based on the City's Strategic Plan.Budget Memo #19: BFAAC Review of the FY 2014 Proposed Budget On May 6th, Council motioned to remove the 0.3% of the real estate tax revenues dedicated to the Open Space Trust Fund Account.
FISCAL IMPACT: The removal of this tax rate dedication would have no impact on the amount of funding for the open space program in the FY 2014 budget. The amount of revenue provided to fund this program would remain the same as adopted in the budget; however, the dedication of a portion of the tax rate would be removed.
The FY 2014 adopted budget included a 0.3% real estate tax revenue dedication for open space which provides approximately $0.5 million in revenue to pay debt service on bonds previously issued for open space acquisition. Additionally, the CIP includes $23.3 million programmed for new open space acquisition and development through FY 2023. The funding provided through this dedication and other sources will remain the same as adopted in the FY 2014 budget, regardless of the dedication.
ATTACHMENTS:
- Proposed Resolution To Continue The Real Estate Tax Dedication To The Open Space Trust Fund Account.
STAFF:
Mark Jinks, Deputy City Manager
Nelsie Smith, Director, Office of Management and Budget
Morgan Routt, Assistance Director, Office of Management and Budget
Christina Zechman Brown, Assistant City Attorney
Paul Doku, Budget/Management Analyst, Office of Management and Budget
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