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/
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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.1 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 de...
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