2018 Preliminary budget and tax levy SEPTEMBER 25, 2017 City of Alexandria 2018 Preliminary budget and tax levy SEPTEMBER 25, 2017

2018 Preliminary Budget: What is it? “The budget is the single-most important policy document a local government adopts” Source: ICMA Budgeting Guide for Local Government The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

2018 Preliminary Budget: What is it? Statement of Priorities Communicates to stakeholders what services they can expect and how their tax dollars are being spent Defines how the local government allocates its resources to achieve what is important to the community Translates policies into action Budget is also…. Control Tool Management Tool Planning Tool Goal of Budget Reflect the priorities and long-term interests of the community Offers assurance that funds are being used to achieve those priorities Insures objectivity and transparency in decision-making Source: ICMA Budgeting Guide for Local Government The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

2018 Budget Development Priority-Based Budgeting Budget Committee City Council began process of evolving the budget to a priority-based budget process Goal is to provide a framework for allocating resources Budget Committee Mayor Carlson Council Member Osterberg Council Member Kuhlman City Administrator Marty Schultz Finance Director Jane Blade Individual meetings with outside consultants, agencies, and City Department Heads Council discussed budget at three work sessions The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

2018 Budget Development Balanced Budget Preliminary Budget and Tax Levy Revenue and expense line items can be changed between now and final adoption in December Proposed tax levy can be lowered but it can not be raised Required by State to adopt preliminary levy by September 30, 2017 Final Budget and Property Tax Levy Public Hearing (Truth in Taxation): Monday, December 11, 2017 at 7:15 p.m. The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

2018 Budget Development City Council has recommended a levy increase of 4.01% from 2017 Of the $12,086,830 needed to fund the City’s operational and capital budget, $6,725,676 (56%) will come from the local taxpayer through City property taxes The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

2018 Budget Development Start with “Why” Began discussion of WHY we (the city) do what we do. It’s the result, purpose, cause, or belief. It’s why the organization exists. Department Narratives Assignment of Revenue to Departments – “Where do my tax dollars go?” The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

2018 Budget Development 2016 Strategic Plan Mission Vision To be a progressive regional center defined by purposeful growth and community partnerships Vision Alexandria is committed to efficient and effective delivery of quality services and strategic investments that improve the quality of life for all of its citizens and visitors and the sustainable management of city resources Guiding Principles Alexandria is: Growing, Sustainable, Complete, Inclusive, Healthy & Engaged Strategic Priorities Efficient and Effective Governance Progressive, Regional Community Development Prudent Financial Management City Council, staff, and key stakeholders holding a retreat on September 28-29 to renew, revise, strategic plan Updated Strategic Plan will provide for implementation of City Council priorities and next steps in priority-based budgeting implementation The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

City Council Priorities Street Paving Program Increase from $75,000 in 2017 to $125,000 in 2018 Street Reconstruction Program Increase from $0 to $50,000 Sets aside funds for next major street reconstruction project Management of General Fund Reserve General Fund Reserve balance (the “emergency fund” in the context of a family budget) in excess of five months operating expenses used to lower levy required for debt retirement More simply put, the “surplus” from the 2016 budget and revenue above budget is being used to pay down debt service Moderate Levy Increases City Council maintaining pattern of 3% to 5% increases in the levy Seek to avoid situation where significant levy increases are necessary The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

2018 Preliminary Budget and Tax Levy Summary 2018 Total Budget: $12,086,830 Increase of 2.36% from 2017 2018 General (Operating) Fund Budget: $9,304,368 Increase of 3.67% from 2017 2017 Preliminary Tax Levy: $6,725,676 Increase of 4.01% from 2017 Increase from 2016 to 2017 was 2.75% 2017 Preliminary Tax Rate: 40.75% Decrease from 40.93% in 2017 The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

Tax Capacity and Tax Rate Comparison Continued Growth in Estimated Tax Capacity Up 4.45% from 2017 4.01% Proposed Levy Increase Projects to the following taxpayer impacts: 0.45% decrease to city portion of taxes if your property value remains the same 2.54% increase in the city share of taxes if your property increases 3% in value $150,000 home paid $613.96 in city taxes in 2017 Pay $611.20 if value remains the same Pay $629.54 if value increases 3% The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

Property Tax Breakdown “How does the City of Alexandria use your tax dollars? The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

Property Tax Breakdown $0.586 (58.6 cents)of every tax dollar supports the General (Operating Fund) of the City $0.414 (41.4 cents) funds other levies of the City Debt Retirement (capital building projects) ALASD Street Paving Program Equipment and Capital Levies The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

Property Tax Dollar Breakdown The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

Next Steps Strategic Plan Update Capital Project Budgeting Complete in October/November Include as part of final budget presentation Review of Preliminary Budget and Tax Levy Analyze year to date revenue and expenditures and make budget adjustments as necessary Truth in Taxation Hearing – Monday, December 11 Details at the bottom of statements of proposed property taxes sent in November The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships

Recommendation Resolution Adopting the Preliminary Budget for the City of Alexandria for the Year 2018 and Establishing the Tax Levy for the Payable in 2018 The mission of the City of Alexandria is to be a progressive regional center defined by purposeful growth and community partnerships