City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 7, 2018
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Public Hearing, Second Reading and Final Passage of an Ordinance to Amend and Reordain Section 3-1-5 of the City Code to Add One Percent of the Five Percent Tax on Restaurant Meals as a Dedication to the Affordable Housing Initiatives Account. [ROLL-CALL VOTE]
BODY
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ISSUE: Consideration of an ordinance to add a new source of dedicated funding to the Affordable Housing Initiatives Account. The new dedicated source would come from the proposed one percent increase on the Restaurant Meals tax rate if approved.
RECOMMENDATION: That City Council hold a public hearing and approve, on second reading and final passage, the attached Ordinance to add a new source of dedicated funding of one percent on the proposed Restaurant Meals tax rate of five percent to the Affordable Housing Initiatives Account on Saturday, May 12, 2018.
DISCUSSION: As part of the adoption of the FY 2019 budget on May 3, 2018, Council approved (subject to the May 12 adoption of the implementing ordinances) and indicated its desire to increase the tax on Restaurant Meals from four percent to five percent, with the additional one percent being dedicated to the Affordable Housing Initiatives Account to be used solely for cash capital contributions for Affordable Housing projects in the Capital Improvement Program. If Council decides not to raise the Restaurant Meals tax from 4% to 5%, then this proposed ordinance establishing the dedication would not need to be adopted.
FISCAL IMPACT: During the FY 2019 final add/delete work session, Council tentatively approved an increase in the Restaurant Meals tax rate from four percent to five percent as part of the FY 2019 budget. Each one percent of this tax rate is estimat...
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