1. 2018 Preliminary budget and tax levy SEPTEMBER 25, 2017
City of Alexandria
2018 Preliminary budget and tax levy
SEPTEMBER 25, 2017

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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 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

9. 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

10. 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: %
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

11. 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 $ in city taxes in 2017
Pay $ if value remains the same
Pay $ 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

12. 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

13. 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

14. 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

15. 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

16. 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