City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 17, 2021
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
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Consideration of a Resolution to Subsidize the Stormwater Utility Fee as an Expenditure Grant Rather than an Exemption on Real Estate Tax Bills for Certain Low-Income and/or Disabled Property Owners. [ROLL-CALL VOTE]
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ISSUE: Consideration of resolution changing the nature of Stormwater Utility Fee subsidies.
RECOMMENDATION: That Council approve the resolution on Tuesday, February 23, 2021.
BACKGROUND: In tandem with the Stormwater Utility Fee increase for FY 2021 and
FY 2022, staff proposes implementing a technical and policy change to the process for relieving certain low income and/or disabled property owners from paying this fee that is more consistent with State law.
DISCUSSION: Since adoption of the Stormwater Utility Fee beginning in 2018, the City has exempted from paying the Stormwater Fee those low-income elderly and/or permanently and totally disabled property owners who qualify to participate in the City's Real Estate Tax Relief program; and, permanently and totally disabled veterans and their surviving spouses as defined by State law. This represents almost 1,100 property owners.
As an "exemption," the Stormwater Fee has effectively been waived from the tax bill sent to these property owners. In other words, we have not realized the revenue from these exemptions and the remaining ratepayers have essentially subsidized these low income and disabled property owners.
However, the more legally and policy preferred means to abate this fee is as an expenditure "grant" from the Department of Community and Human Services (DCHS), allocated to the accounts of the low income and disabled property owners at the direction of the Local Social Services board pursuant to Va. Code ? 63....
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