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:
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Public Hearing, Second Reading and Final Passage of an Ordinance to Amend and Reordain Section 3-1-5 of the City Code to Remove the Real Estate Tax Dedication To the Affordable Housing Initiatives Account. THIS ITEM HAS BEEN REMOVED FROM THE DOCKET
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ISSUE: To remove the real estate property tax rate dedication of $0.006 cents per $100 of assessed value to the Affordable Housing Initiatives Account, with no change in the amount of funding for the program for Fiscal Year 2014.
RECOMMENDATION: That City Council hold the public hearing and approve the attached ordinance that removes the $0.006 cents of real estate tax rate dedicated to the Affordable Housing Initiatives 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 $0.006 cents of the real estate tax rate to the Affordable Housing Initiatives Account, with no change in the amount of funding budgeted for the 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.1 On May 6th, Council motioned to remove the $0.006 cents of real estate tax rate dedicated to the Affordable Housing Initiatives Account.
FISCAL IMPACT: The removal of this tax rate dedication would ...
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