The Council Connection
your connection to City Council by Mayor Justin M. Wilson
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The most important decision the City Council makes each year is the adoption of the annual operating budget and capital improvement program. The operating budget generally funds the on-going costs of government (primarily personnel), while the capital budget funds one-time expenditures that provide the community with an asset (new schools, new roads, new playing fields, transit buses, etc).
From 2002 until 2009 the City was enjoying the run-up in the residential real estate market. Our General Fund budget increased by an average of 6.79% per year. The work force in City Government grew from 2,229 Full Time Equivalents (FTE) to 2,660 FTEs during that period.
In Fiscal Year 2010, a little over a decade ago, the bottom fell out as the Great Recession took hold. The City adopted its first negative budget in at least 40 years, reducing spending from Fiscal Year 2009 to 2010 by over 2%. From Fiscal Year 2011 through the current fiscal year, the General Fund budget increased by an average of 3.64% per year.
Sustaining an average budget growth of 3% per year with 4% annual student enrollment growth, employee healthcare costs increasing far above rates of inflation, long-deferred infrastructure needs, ever-escalating funding challenges from Metro and a hyper-competitive market for municipal employees is impossible.
It was in this context that the City Manager prepared and presented his budget. The City Manager's proposed General Fund Operating Budget is $881.1 million. This represents a 5.0% increase in spending versus the current approved budget, with over half of all new revenue from the real estate tax being proposed for support of the Alexandria City Public Schools operating budget.
Every budget has a "story." The City Manager's proposed budget:
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Public Safety: Funds the implementation of the new collective bargaining agreements for both our Police Department and Fire Department, including large compensation and staffing increases
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Schools: Fully funds the approved operating budget of the Alexandria City School Board, increasing the operating transfer by $9.9 million
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Infrastructure: Commits new resources to support the infrastructure proposed as part of the Capital Improvement Program.
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Employee Compensation: The proposed budget funds merit and market-rate increases across City government.
Two years ago, the City Council was able to adopt the first reduction in the real estate tax rate in 15 years, bringing the rate from $1.13 to $1.11. This year, the City Manager has proposed maintaining the current $1.11 rate. If the City Council adopts the City Manager's proposal, this will be the 7th straight year that the rate has remained the same or decreased.
With the impacts of average assessment increases included, this means the average single-family homeowner would pay $490 more in 2023 than in 2022. The average condo owner would pay $101 more in 2023 versus 2022.
In addition, the City Manager has proposed no increase in the annual Residential Refuse Fee of $500, which covers the costs of trash, recycling and yard waste collection (among other services). This fee is paid only by the 20,647 homeowners who receive City trash collection.
The stormwater utility fee is proposed to increase to address stormwater management and Chesapeake Bay clean-up mandates. This fee is paid by all property owners, including non-taxable properties. The new annual fee will be $86.44 for condos, $129.65 for townhomes, $308.70 for small single-family homes and $515.53 for large single-family homes.
On March 14th, City Council must make the first big decision of this year's budget process. State law requires that the Council vote to "advertise" a tax rate. The rate that the Council chooses to advertise becomes the ceiling for the Council during the budget process. We can adopt a lower rate, but we can go no higher.
There is no more important process than the adoption of our annual budget. The budget is a reflection of the values of our community and I look forward to working with our residents and my colleagues to craft a budget that is reflective of those collective values.
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Landmark Inova Alexandria Hospital |
Next Tuesday, the Alexandria Planning Commission will be hearing applications for the specific development approvals for Blocks A and Q for the redevelopment of the previous Landmark Mall site.
Assuming Planning Commission action, the City Council will accept public testimony and act on these applications at our public hearing on Saturday March 18th beginning at 9:30 AM.
After two decades of discussion about how to redevelop Landmark Mall, the City of Alexandria is finally redeveloping Landmark Mall!
The location, one of the largest sites inside the Beltway awaiting redevelopment, will see a billion dollars of new investment, including a new Level II trauma center, medical office buildings, residential, retail, parks, a new fire station replacing Fire Station 208, new committed affordable housing and a new transit hub anchoring the City's new bus rapid transit network, DASH and Metrobus.
This will not only revitalize a site that many had given up on, but will also provide a catalyst for redevelopment and enhancement throughout the West End of our City.
Despite over two decades of decline, it is not a mystery why we had been unable to spur redevelopment on this site in the past, It is a complicated site, with a complicated ownership structure requiring significant infrastructure investment.
The City will finance some of the infrastructure improvements required on the site and we have purchased the future hospital site to lease back to Inova. Inova's proceeds from selling their existing site on Seminary Road is financing their expenses related to the move.
We have finally assembled a partnership, financing and a plan to revitalize this site. Landmark Mall redevelopment has been complicated from the beginning, but this exciting partnership is making things happen on this site for the first time in decades. I look forward to now watching this vision come to fruition.
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DCHS is one of the City's largest departments with over 600 full time equivalent employees, and a budget of over $100 million. The department provides the critical safety net services that so many of our residents rely on at various points in their lives.
Prior to this move, DCHS, together with the City's Health Department occupy 210,000 square feet of space in 8 different facilities around the City. Most of the space is inadequate, aged, and not proximate to the residents it serves. Over half of DCHS clients are on the West End, yet two of our largest offices have been in the East End of the City.
This new location enables full consolidation of these two departments and improve service delivery for the residents served by these important services.
While the City and IDA had initially negotiated a 15 year lease, it included several points where the City could exercise the ability to purchase the building, which could save the City millions more in avoided lease payments.
The purchase option cost the City $58.7 million. The negotiated lease is for 15 years (with an annual escalation), with the first year rent totaling a little over $7 million. The purchase option will save the taxpayers of the City over $18 million over the next 15 years.
Ultimately this consolidation will avoid greater costs, improve the effectiveness of services delivered and make those services more accessible to our residents.
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Last month, the City mailed 2023 assessment notices to each Alexandria property owner. You may view your assessment online. Included online is information about comparable transactions that were used to calculate individual assessments.
Twenty two years ago, City Council received its assessment report from our City Assessor. The City Council learned that between 1999 and 2000, the City's real estate tax base grew by a little over 9%. For the next 6 years, annual tax base growth never went below double digits, as the City AVERAGED 15.3% ANNUAL tax base growth between 1999 and 2006. This was an unprecedented appreciation in our tax base.
From 2006 to 2007, the City's real estate tax base grew by just a little over 4%. For the next 12 years, annual growth in the tax base never again reached 4%. From 2008 until 2019, the City's tax base grew annually by an average of 1.47%. There were two years during this period where the tax base actually shrunk.
In 2020, we began to transition from this very low-growth period. Over the past 4 years, we have seen uneven but more significant annual growth, averaging just over 4% each year.
This year, our overall real estate tax base grew by 3.81%. This brings the City's real estate tax base to $48.3 billion. This is just slightly above the average growth that we have seen for the past decade. Of the $1.78 billion increase in the real estate tax base this year, $577.8 million, nearly a third, was from new construction. Between 2019 and 2023, $2.44 billion of new development has been added to the tax rolls. At the current tax rate, those properties generate a little over $27 million in annual real estate tax revenue, the equivalent of nearly 6 cents on the current real estate tax rate.
The cost of providing services varies by the type of development. At one extreme, for a hotel, for every tax dollar the City receives, only 7 cents is required to provide City services for that hotel. For a multi-family residential unit, for every dollar collected, 38 cents is required to provide services. All new development in the City provides a return to the City's General Fund.
Over 61% of the costs of Alexandria's government come from residential and commercial real estate taxes. As such, the announcement of our annual real estate tax assessments is the most important indicator for the upcoming budget process.
After a year of parity, we have returned to our recent trend with wide gaps in growth between the residential tax base and the commercial tax base. The residential tax base grew at 5.02% and the commercial tax base grew at 1.97%. The gap is even more pronounced than it might appear, as multi-family rental properties are considered "commercial" in Virginia. The value of office properties in Alexandria reduced by over 10% this year, adding to reductions of 6.5% in 2022 and 2021.
On the residential side, the average assessed value for a single family home increased 4.58% to $940.375. Of those properties, 91% of single family homes increased in value, 3% decreased, and 6% stayed the same.
The average assessed value for a condominium increased 3.48% to $407,616. Of those properties, 69% of condominiums increased in value, 3% decreased, and 28% stayed the same.
If you have concerns about your assessments, you have multiple options to have the assessment reviewed. First, contact the Real Estate Assessment office at 703-746-4646. Our staff is happy to discuss your specific assessment.
If the review process does not yield a satisfactory result, an appeal can be filed to be heard before the City's Board of Equalization and Assessment Review. Those requests must be filed prior to June 1st.
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Road Paving Plan Released |
The City has 561 lane miles of roads for which it is responsible. Every 3 years, our Transportation and Environmental Services Department assesses every street in the City assigning each a Pavement Condition Inventory (PCI) score. Based on that score and available resources, our paving plan for each year is formulated. This year's schedule is based on the
2022 survey rankings, that was just performed.
While the PCI score informs the schedule, our staff must also coordinate these investments with utility work planned by private and public entities, as well as other projects.
If the currently proposed funding level is approved, we are scheduled to resurface the following roads next fiscal year (beginning July 1, 2023):
- Parkway Terrace from West Timber Branch Parkway to End
- Clyde Avenue from East Bellefonte Avenue to East Uhler Avenue
- Price Street from East Bellefonte Avenue to End
- West Mount Ida Avenue from Commonwealth Avenue to Russell Road
- East and West Del Ray Avenue from Russell Road to La Grande Avenue
- Sanford Avenue from West Dale Ray Avenue to End
- Ruffner Road from west Braddock to High Street
- West Timber Branch Parkway from Ruffner Road to Junior Street
- Cameron Station Boulevard from Duke Street to South Pickett Street
- Hermitage Court from King Street to End
- Green Street from South Patrick Street to South Lee Street
- Cloverway Drive from Dartmouth Road to Janneys Lane
- Robinson Court from Janneys Lane to End
- Holland Street from Duke to Eisenhower Avenue
- Dale Street from Edison Street to End
- Oakley Place from East Timber Branch Parkway to End
- Orleans Place from North Gailand Street to End
- Ormond Avenue from North Gailand Street to North Howard Street
- Sylvan Court from Trinity Drive to End
- Stevenson Avenue from South Whiting Street to Stulz Road
- North Stevenson Square from Stultz Road to End
- South Stevenson Square from Stultz Road to End
- Edison Street from West Reed Avenue to End
- North Clarens Street from Trinity Drive to End
- North Breckinridge Place from Lincolnia Road to End
- Oakville Street from Swann Avenue to Fannon Street
- Fannon Street from Richmond Highway End
- Juliana Place from North Pickett Street to End
- North Breckinridge Place from Lincolnia Road to End
- East and West Mason Avenue from Stonewall Road to End
- Roberts Lane from Duke Street to End
- East and West Uhler Avenue (Entire Length)
- North Pelham Street from Holmes Run Parkway to Taney Avenue
- North Terrill Street from Richenbacher Avenue to End
- North Vail Street from Richenbacher Avenue to End
- Fort Worth Avenue from Fort Williams Parkway to End (Fort Worth Place)
For Fiscal Year 2025 (July 1, 2024 - June 30, 2025), we are scheduled to resurface the following roads:
- Seay Street from Longview Drive to End
- Viewpoint Road from Longview Drive to End
- Emerson Avenue from John Carlyle Street to Holland Lane
- Wilkes Street from South Patrick Street to End
- Mayer Place from Allison Street to End
- Juniper Place from North Jordan Street to End
- Milan Drive from West Glebe Road to Four Mile Road
- West Windsor Avenue from Russell Road to Commonwealth Avenue
- Herbert Street from Commonwealth Avenue to Mount Vernon Avenue
- Manning Street from Commonwealth Avenue to Clifford Avenue
- North and South Lee Street Entire Length
- North Garland Street from Fort Worth Avenue to End
- Sharp Place from Saint Stephens Road to End
- Vicar Lane from Bishop Lane to End
- Adams Avenue from Newton Street to Mount Vernon Avenue
- Newton Street from East Braddock Road to East Luray Avenue
- Gunston Road from Valley Drive to Valley Drive
- Elizabeth Lane from Eisenhower Avenue to Courthouse Square
- Metro Road from Eisenhower Avenue to South Van Dorn Street
- Boyle Street from Buchanan Street to End
- Second Street from Colonial Avenue Drive to North Fairfax Street
- Laird Place from Manor Road to Tennessee Avenue
- Stovall Street from Eisenhower Avenue to Mill Road
- South Bragg Street from City limit to End
- Ford Avenue from North Hampton Drive to End
- Banks Place from North Morgan Street to End
- Franklin Street from South Union Street to South Payne Street
- Commerce Street from South Fayette Street to South West Street
- Fern Street from North Quaker Lane to Osage Street
- Imboden Street from North Howard to Raleigh Street
- Sanford Street from West Mount Ida to West Del Ray
- Price Street from East Bellefonte Avenue to Cliff Street
- Ballenger Avenue from Holland Lane to Courthouse Square
- South Royal Street from Gibbons Street to Queen Street
- Slaters Lane from Richmond Highway to End
- Portner Road from Slaters Lane to End
- Portner Place
For Fiscal Year 2026 (July 1, 2025 - June 30, 2026), we are scheduled to resurface the following roads:
- Calvert Avenue from Richmond Highway to Murrays Avenue
- Cloverway Drive from Janneys Lane to Dartmouth Road (Clovercrest Drive)
- Dearborn Place from Fort Williams Parkway to end
- Pryor Street from Richenbacher Avneue to Taney Avenue
- Regency from North Pryor to End
- Rhoades Place from North Pryor to End
- Peele Place from Taney Avenue from End
- Moore Place from Pullman Place to End
- Pullman Place from Cameron Mills Road to End
- Summit Avenue from Cameron Mill Road to Dogwood Drive
- Hillside Terrace from Crest Street to Valley Drive
- Louis Place from North Howard Street to End
- Hare Court from Louis Place to End
- Featherstone Place from Fortworth Avenue to End
- Hatton Court from Doris Drive to End/Partial Doris Drive (city limit)
- Hawthorne Avenue from Hatton Court to Holmes Run Parkway
- Holmes Run Parkway from North Chambliss to End
- Mill Road from Jamieson Avenue Eisenhower Avenue
- Peachtree Place from Gailand Street to End
- Rapidan Court from Polk Avenue to End
- Canterbury Lane from Trinity Drive to End (Chancel Place)
- Trinity Drive from Fort Williams Parkway to End
- North Fayette Street (600 Block) Concrete Restorations
- Fayette Street from Duke Street to End
- Kingston Avenue
- Kingston Place
- North Peyton Street
- Madison Street from West Street to End
- Oronoco Street from Earl Street to End
- Commonwealth Avenue from Mount Vernon Avenue to End
- Mount Vernon Avenue from West Glebe Road to the City Limit
- Business Center Drive
- East Abingdon Road
- West Abingdon Road
- Walleston Court
I'm hopeful we can continue (and hopefully increase) these investments in this very basic infrastructure.
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The focus of our efforts on Duke Street are divided into 5 key areas:
Smart Traffic Signals: To better manage traffic with technology
Vision Zero: Reduce serious crashes
In July, the City Council will be considering near and long-term recommendations for how the bus rapid transit improvements can be configured in the various segments along Duke. Upon Council's action, this project will enter a new phase of planning and implementation as we re-imagine one of the most important corridors in our City.
A little over a decade ago, the City adopted its latest Transportation Master Plan. At the time, the plan was a significant transition in that it shifted from a plan focused on roads and vehicle traffic, to a plan that prioritized transit.
One of the most significant changes that came from the 2008 Master Plan was the designation of three transit corridors for high-capacity transit. The three corridors were Transit Corridor A, which was nominally north to south on Route 1 on the east end of the City, Transit Corridor B, which was intended as east to west on Duke Street and Transit Corridor C, which was north to south on the west end of the City using Van Dorn and Beauregard.
Transit Corridor B, the Duke Street Transitway, will be the final corridor implemented. Nearly 2 years ago, the City received $75 million in regional funds from the NVTA to bring this new transit to reality.
High capacity transit provides our residents with alternatives to congestion and delay. Coupled with the other improvements on Duke, I am confident the important road will become a more usable, safe and efficient option for our entire community. I am optimistic as we work to bring these projects to reality.
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Last year, when City Council approved our current budget, an amendment I proposed was included to expand the City's collection of food waste. My proposal funded both an expansion of our existing Farmers' Market Composting program and a new curbside collection program.
Our Farmers' Market composting program will add two new sites, with the Old Town North Market (901 N. Royal Street) opening recently and the Southern Towers market collection point opening this weekend (4901 Seminary Road).
Four years ago, the City Council unanimously adopted the WasteSmart Strategic Plan. This plan sought to chart a new course for trash and recycling services.
Waste removal is one of the most visible and traditional of local government services. A service that at one point simply involved a trash truck on a route picking up a resident's waste has now evolved into a complex portfolio of services.
While the City provides curbside trash and recycling collection for a tad over 20,000 households, we also provide:
- Yard Waste Collection
- Leaf/brush collection
- Metal and appliances collection
- Spring Clean-Up
- Bulk Trash Pick-Up
- Electronic waste collection
- Recycling Drop-Off Centers
- Public Space Trash and Recyclng
- Farmers Market Composting
Each of these services has evolved to address defined needs in our City, but each has associated policy choices. Several of these significant policy questions are now before us.
Please let me know your thoughts on these important issues!
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The Torpedo Factory Arts Center is an iconic presence on the City's waterfront. Bringing a half million visitors into working artists galleries, the Factory is a economic development engine and unique arts resource for our community.
The City of Alexandria purchased the Factory from the United States Government in 1969. The Arts Center was opened in 1974 and has been a model for similar centers around country.
Yet for the past several years, the challenges of the Factory and the possible solutions to those challenges have been divisive.
Our staff brought a few proposals for the future of the Torpedo Factory to stakeholders for input, and a year and a half ago these were brought to the City Council. You can review those proposals online.
These principles call for an entirely new structure to strategically manage the Torpedo Factory and the many new arts assets that the City is bringing to reality as part of the Old Town North Arts District.
Alexandria is an arts destination, but that destination is broader than one building. I am excited that Council has now endorsed this vision to expand our commitment to arts real estate in our City, with the Torpedo Factory as a focal point of that expansion.
This report recommended more changes to the governance, the management, and vision of the Factory.
Candidly, the future of the Torpedo Factory has been studied to death. We have used the divisiveness of this issue as an excuse to avoid making a decision on its future. Unfortunately, inaction is a decision in and of itself.
My focus is on deriving a structure for the operation of the Factory that:
- expands the vitality of the Factory
- improves its financial sustainability
- improves its diversity
- ensures the success of Alexandria's premier arts destination long into the future.
I am confident that working together we can achieve these goals.
Ensuring the presence of a diversity of arts and artists in the Torpedo Factory Arts Center on our Waterfront is a priority of mine. I look forward to working with our community and various partners to bring this vision to reality.
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Opinions were varied. However, nearly all involved at that time agreed that our central business district was challenged.
As with the last effort to create a BID, I feel as though the idea has merit, and if sufficient support could be generated within the business community, the City should facilitate its creation.
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Paid for by Wilson For Mayor | www.justin.net |
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