April Newsletter

Welcome to the April 2006 Edition of Krupicka Council News.

Dear Friends,

It has been a busy spring so far.  We have been working hard on the budget, balancing that important work with the many events that always happen in Alexandria during the spring. 

In this issue I provide an update on the budget.  I also talk about senior citizens; the way we finance local government in Virginia puts pressure on all of us, but it puts an extra pressure on senior citizens.  As the population of our city ages, we have to find a way to address this. Later in this newsletter I ask for your thoughts about the best ways to do that.

Also included: updates on the transportation debate in Richmond, the gang prevention event last month, a historic preservation discussion on April 26^th, Earth Day on the 29^th, information about training to help women defend themselves from rape, and suggestions for how to support sustainable farming in Virginia. As always, I look forward to your thoughts.

Rob

PS.  Elections for council and school board are on May 2^nd.

(If you or others want to be added to the list, send a message to Newsletter@Krupicka.com with "Add Krupicka List" in the subject line.)

** Budget Update – Current Status **

The Council is reviewing a list of proposed budget and program reductions that would hold spending growth under 5% over last year and reduce the tax rate by ten cents.  As a point of comparison, Loudon County recently approved a budget that grew at over 11%.  Fairfax City’s budget grew over 8%.  Arlington is looking at a budget that grows over 6%. This budget is the result of three years of work by the Council.  I proposed department audits and efficiency studies two years ago.  I worked with Art Schmalz for a city-school collaboration project that has combined some school and city efforts to save money.  Last year we hired a new city manager with specific experience streamlining government.  And last spring we put in place a new budget process.  

The tax rate reduction will ensure Alexandria continues to have the second lowest tax rate of any major jurisdiction in our region.  It will put Alexandria's tax rate under Arlington County for the first time. In a region where costs are rising rapidly, Alexandria’s five percent budget growth will almost certainly be the lowest rate of budget growth of any jurisdiction. 

Regional inflation was about 4% last year and is on track to exceed 4% this year.  In addition to inflation, NOVA jurisdictions face the costs of a growing population and rapidly rising employee compensation costs caused by increasing competition for teachers, police officers and other public sector employees.  Arlington increased teacher pay 8% last year.  Other jurisdictions are looking at 8% salary increases this year.  Many jurisdictions are offering public safety officers signing bonuses and other incentives to leave their current jobs and move to some of the faster growing counties in the region.

This year's budget growth and tax rate reduction has been obtained through a few routes: 

As I said in my newsletter a month or so ago, capital spending is one area where we need to re-visit our priorities.  We are slowing down capital spending in this budget. These actions will slow down some park, building and other repair work in the city, some bus shelter repairs and other infrastructure repairs. We are also spreading out the cost of the new police center and putting off Chinquapin and Minnie Howard School renovations. All of this is being done with an eye towards lowering the tax rate while maintaining our AAA bond rating.

Second, as I discussed in my last newsletter, we are taking steps to manage health care costs. The Council is reviewing a three-year phase-in of employee contributions to health care costs.  Rising health care costs are one of the largest challenges we face. We are also setting money aside so we can review and adjust employee salaries in light of regional competition.  Alexandria's employee compensation policy states the city should not be the highest or lowest salary provider in the region. As one of the most expensive areas in an expensive jurisdiction, keeping employees who are willing to drive into Alexandria for work requires careful balancing.

Third, as I said in my last newsletter, we have to re-visit how we run the government. We are scaling back a few city operations.  We are ending some Saturday hours at City Hall for tax and ticket payments.  Given the rise of internet payments, we don't expect this to be a large inconvenience. We are cutting back on consultants, and changing our replacement cycle for computers for recreation centers and libraries and not funding some administrative positions. Given inflation, a slowing real estate market and regional growth, next year's budget will have to look further for operating efficiencies.  The audits of city departments that I pushed for two years ago will play an important role in helping us identify opportunities for efficiency.

And lastly, the budget growth rate takes advantage of a lower-than-expected health care benefits contribution requirement for Alexandria teachers and also asks the schools to look carefully at their budget for some additional reductions.  As we look at the school budget, it is important that we keep our class sizes small and ensure our teachers are competitively paid.  Other areas of the region are hiring thousands of teachers a year and there is a growing supply-and-demand problem that puts Alexandria at risk of losing the best teachers.  Retaining good teachers is a challenge this year and will be for many years to come as Loudon and Prince William counties and other areas face rapid population and school enrollment growth; that growth is driving up costs in the region and teacher compensation costs.

Over the next week we will be debating all of these items as we review the final numbers for the budget.  

** Budget Update – Major Expenditures**

I often get asked, where is the money going?  That is a reasonable and fair question. Over the last few years, a few areas of the budget have grown faster than many others. Below is a list of some of the largest budget growth areas.

1)      Employee Compensation (Health Care, Retirement and Salary) – Health care costs for city employees now requires two more cents (over $6.6 million) of the tax rate than it did just a few years ago.  We have all read about the impact of health care costs on American businesses.  Those same costs are impacting local government.  We must continue to work to minimize the cost increases. But there is no silver bullet. This is a national issue and fundamental change will require a national solution. 

Employee compensation is one of the largest cost drivers for the city and the schools.  Most of our employees can't afford to live in Alexandria and must drive into the city.  Outlying counties (where most staff live) are growing rapidly, hiring rapidly and raising salaries.

Retirement benefits also have a large impact on city costs.  This year, retirement pay for teachers is one of the largest single factors in the school budget.  The state-controlled retirement contribution is set in part by the stock market and in part by politics in Richmond.  In some budget proposals in Richmond, the schools will have to pay more into retirement than the current city budget expects.

Council must take a close look at a broad range employee compensation issues to help us mange costs and retain an excellent work-force.  This is a high priority for the next year.

2)      Transportation and Metro – Metro costs have grown by double digits over the last few years, taking up millions more in local revenues.  Driven by regional growth and aging infrastructure, our region has had to pay more and more.  In Maryland, the state pays for local contributions to metro.  In Virginia, the local governments pay.  This is one of the many issues in the ongoing transportation debate in Richmond.  The City, with state, federal and some local dollars, is working to expand its bus service capacity. The city has also expanded the street paving program to reduce the number of pot-holes in the city. Rising fuel costs have also been a factor.  It is costing everybody more.  It also makes asphalt (a petroleum product) and basic road repair more expensive.

3)      Infrastructure – The Capital Budget & Debt Service.  Over the last ten years, the largest growth area of the budget has come in the form of infrastructure repairs. As one of the older cities in the country, keeping up with infrastructure is always going to be a challenge. We all know that the longer we wait to make repairs, the harder and more expensive they can become. Due to the efforts of the last ten years, we are getting close to the point where our capital budget, with minimal increases each year, can keep up with infrastructure needs. 

4)      Affordability and Home-Ownership Programs – In the last three years in particular, the city has set money aside for new affordable housing programs, for tax rebates for senior, disabled, low and moderate income residents.  As our region becomes more expensive, the city has taken action to help people stay in their homes, to help teachers, police and other city staff to live here, and to ensure people with a range of income can call Alexandria home. These efforts have absorbed over two cents of the property tax rate (close to $7,000,000) in the city budget over the last three years.

5)      Public Safety – In the last three years public safety personnel and equipment costs have grown.  We have added police officers to help manage traffic and to put more officers on the street to address some pockets of crime in the city that need to be stamped out. We created a new office of emergency preparedness that was not here before and, we have expanded our EMS capacity to keep up with the needs of our growing and aging population.  We have also increased salaries for public safety officers in order to compete with the rapid hiring in Loudon, Fairfax, Prince William and other surrounding counties.

** Budget Update – Seniors Citizens**

I have talked to a number of senior citizens who care deeply about our city, have lived here a long time, but who now face the realty that they have to leave their homes as property taxes have gone up beyond what their fixed income can support.  Property taxes, while impacting all of us, become more regressive the longer you live in your home, especially if you are on a fixed income.  To address this, the city has used the state-created program to provide property tax relief and tax deferrals to seniors.  I think we need to do more.  It is wrong that our state structure for financing local government puts so much pressure on our senior citizens. Some have suggested caps on taxes for seniors.  Others have suggested reverse mortgages.  There isn't likely one simple answer, but this is a public policy area worthy of more discussion. 

What is the right way for us to take care of seniors who make Alexandria their home?  I would be interested in your perspective on this.

**Transportation Debate in Richmond**

As I mentioned above, transportation costs are one of the faster growing areas of our budget.  In part, that is a key reason for the need for General Assembly action.  Alexandria gets some help for its transportation funding, but nothing like the counties in Maryland get from their state.  We pay our own metro costs.  In Maryland, the state pays.  Counties like Prince William get most of their roads paid for by the State and they don't pay anything for Metro because they were not considered a part of NoVA when Metro was created.  Clearly things are different now.  The majority of the traffic on Alexandria’s major roads is coming from somewhere else and going to somewhere else.  The whole region and arguably, the state, have a role to play to help us ensure an adequate transportation system for Alexandria and the region. 

Absent significant, new sustainable funds from Richmond,

·                    The $337 million per year that is currently diverted from construction to maintenance will grow bigger every year.

·                    As a result, every county and city will receive fewer state construction dollars for primary, secondary, urban and rural roads in 2010 than today. A similar trend will impact transit facilities across the state.

·                    When the 2010 Six Year Plan is released just four years from now, it will only be able to fund two things: highway maintenance and provided the matching federal dollars needed for federal programs.  This means many projects currently anticipated throughout Virginia will be cancelled.

·                    In 2011 some federal funds that Virginia is eligible to receive will be lost for lack of state matching dollars.

·                    By 2015 all state matching funds will be depleted meaning every federal dollar the state is eligible to receive and every federal gas tax dollar every Virginian pays will go to every other state.

** Gang Task Force Update **

Over 500 people attended the Gang Prevention Task force last month to talk about ways to prevent gang activity in Alexandria.  It was a great day, with many excellent ideas.  For the next few months, the Gang Task Force Chaired by me and Councilman Gaines will take a close look at all of the suggestions in order to create an action plan for Alexandria.

**Earth Day on April 29 at 4-Mile Run Park**

Join us for Earth Day this year and help us clean up 4-Mile Run and other important natural resources, learn about Alexandria’s environment and perhaps, even buy a tree….

The City of Alexandria’s Urban Forestry Steering Committee (UFSC) will hold the City Tree Sale on Saturday, April 29, from 10 am to 2 pm at Four Mile Run Park, 3700 Commonwealth Ave.  The sale will be held in conjunction with the City’s Earth Day program, and tree stewards will be available at the sale to provide information and advice on tree choice and care. Trees will be sold at below market prices to encourage private planting of trees in Alexandria, a major goal of the UFSC.

Trees for sale include shade trees (Willow Oak, Pin Oak, Red Maple, and Sycamore), ornamentals (Kwanzan Cherry and Red Bud), and evergreen (American Holly). Shade and ornamental trees will be available for $30 per tree, and evergreens will be available for $40 per tree. If 10 or more trees are purchased and will be planted on one site, assistance with planting can be requested for an additional fee.

Individuals who would like to place a reservation for a tree should call Jerry Dieruf, City Arborist, of the Department of Recreation, Parks and Cultural Activities 703.838.5040, extension 451, or e-mail jerry.dieruf@alexandriava.gov. Persons that are making a reservation should include their name, phone number, number of trees (maximum of 20), and the variety of trees desired.

** Historic Preservation Meeting**

Mayor Joseph P. Riley, Jr., from Charleston, SC, has agreed to be the keynote speaker at the kickoff of the City's Historic Preservation Forum at the GW Masonic Memorial on Wednesday, April 26, 2006, at 7:00 p.m.

Mayor Riley is widely considered one of the most visionary and highly effective government leaders in America.  He was first elected Mayor in 1975, and is serving his eighth term.  He has held numerous national leadership positions, including President of the U.S. Conference of Mayors, and has been awarded the American Institute of Architecture Keystone Award for exemplary leadership using architecture to transform the community.

Through his lifetime of experience in Charleston, Mayor Riley has become a leading expert on urban design and livability issues, and is a frequent speaker across the country on these topics.

**A Note about Sustainable Farming in Virginia**

You can play a part in keeping the Blue Ridge green (rather than developed) by joining an Alexandria buyers club for healthy, grass-fed meat. This naturally raised meat helps keep farmlands by helping to protect them from development pressures.  The club is simple to join, they email you an order form to fill out and email back. There are no long-term commitments or obligations, no minimums for ordering, no delivery fees, and no membership fees.

Mt. Vernon Farm offers 100% grass-fed Argentine-style beef and New Zealand-style lamb along with pastured, apple-finished pork from Tamworth hogs. This "real", nutrient-dense, medicinal-like food that is raised in Virginia on 230 acres of pasture on the farm in Rappahannock County, VA. The animals are not fed any supplements that are incompatible with their digestion method, such as commercial feedstuffs, grain, corn silage, urea, or animal or fish by-products. The animals do not receive antibiotics, vaccines, or synthetic growth hormones. The fields are not treated with any synthetic fertilizers or chemicals.

For More Information:

Mount Vernon Farm

Rebecca Brown and Cliff Miller

Website: www.mountvernonfarm.net

Email:mtvfarm@verizon.net

Phone: 540.987.9559

** Rape Aggression Defense Training **

The Alexandria Office on Women's Sexual Assault Response and Awareness Program is offering Rape Aggression Defense (RAD) instruction for women this May. The RAD system is dedicated to teaching women defensive concepts and techniques against various types of assaults by utilizing easy, effective and proven self-defense/martial arts tactics. The training will consist of four consecutive classes held on Tuesdays (May 9, 16, 23, and 30) from 6:30pm to 9:30pm at the Nannie J. Lee Center, 1108 Jefferson Street, in Alexandria.

RAD courses are free; however, a $20 donation is suggested. Space is limited, so those who are interested are encouraged to pre-register online at www.alexwomen.com. For more information, please contact Patricia Lopez at the Office on Women at 703.838.5030.

** Small Business Spotlight --  La Bergerie, A Locally Owned French Restaurant**

Located in the heart of historic Old Town Alexandria, La Bergerie restaurant was founded in 1974 by the brothers Bernard and Jean Campagne-Ibarcq, who emigrated from France and brought their unique style of French and Basque cuisine to America.

That commitment to culinary excellence and to a warm tradition of hospitality continues with Laurent Janowsky, a resident of Alexandria, and the restaurant's owner since 2000. Under Laurent's skilled supervision, La Bergerie continues to set the standard for regional French cooking in the area and continues to be recognized as one of the premier French restaurants in the Washington, DC metropolitan area.

For more information: 703-683-1007 or http://www.labergerie.com/index.php

** Hear from the Candidates for City Council**

On May 2^nd, Alexandria will hold elections for the City Council seats. And Comcast Cable recorded the April 10^th Potomac West Candidate Forum for broadcast on Alexandria’s community access channel 69.  Tune in to watch (or set your Tivo's or VCRs to tape) this very engaging and lively exchange between the City Council candidates.  Wednesday, April 26^th at 9 p.m or Friday, April 28^th at 5 p.m.

You can also watch the League of Women Voters and Federation of Civic Association Debate this Sunday or next starting at 9PM.

Tune in to watch on Comcast Channel 69!

Paid for and Authorized by Rob Krupicka and Friends of Krupicka

3:47:09 PM    

All Funds and General Funds Budget

** Budget Clarification -- All funds versus general fund budget**

You may have heard or read some discussion lately saying the city should focus on the growth of the “all funds” budget rather than the “general fund”.  The all funds budget includes every revenue source that comes into the city – grants, ear-marked money, fee income for specific projects, etc.  The general fund budget is the discretionary part of the city budget.  Governments around the country focus on general fund because 1) it is the budget that we have the most control over and 2) it is the part of the budget that impacts property and other tax rates.  The all-funds budget includes a number of fixed programs that the city has little or no discretion over.  Monies in that budget don’t cover employee salaries, capital expenditures, health care expenditures, and many other routine budget items.  An attempt to cap the all-funds budget as has been proposed by some, once you account for all of the earmarked and mandated spending, would leave the city with about $500,000 for schools, salaries, debt payments, metro payments, retirement payments, road repairs, etc.  In essence, it would leave the city with essentially no funding for these basic budget items.

12:36:40 PM