In “City’s Wise Investment,” [letter to the editor, July 23-29, Gazette Packet], the writer indicated that the City of Alexandria’s debt is “not an issue.” Of course it is not a current issue, since Alexandria has revised its debt guidelines recently to accommodate a $35 million budget deficit that would have otherwise required significant adjustments. Those guidelines (although voluntary) were put in place to allow Alexandria to receive its AAA bond rating, which is based in part on adherence to guidelines. So what do we do next year? Will the city adjust down the debt guidelines even further, will it raise taxes, or will it adjust the available services? What sleight of hand will be next?
The guidelines were obviously very important (until the city could not afford them), and that does not include addressing the following: (a) updating the infrastructure of the schools (estimated by Bill Goff to be $1 billion); (b) addressing the combined sewer and storm water system (mandated by the Virginia Department of Environmental Quality) estimated to cost as much as $500 million; (c) constructing the newly approved Metro station in Potomac Yard, which will likely cost over $300 million; and (d) creating a BRT system that has been programmed for the West End, which will be another $300 million. These are but a few of the capital expenditures we can expect to see in the immediate future.
As far as the day-to-day operating budget is concerned, Alexandria must address services, transportation, and added Metro costs, now that WMATA is in deep financial straits. In addition, if our safety net (e.g., police and fire departments) continue to be a funding issue, and the other basic services are lacking, I would hope that it wouldn’t mean we would have to cut services, which are already at the breaking point in some instances. Moreover, when new projects are built, the accompanying public safety and utilities are not added incrementally, so there is a budget catch up as they reach the straining point (e.g., the new Eisehower Avenue Fire Station).
How does Alexandria propose to close its debt gap? Up until now, it has planned to do this by hoping and praying that its policy of expediting new massive development projects will work, in order to gain increased revenues generated by a larger tax base. The city claims that this approach will stop our property taxes from going up, but so far, it has not. It is not sufficient to build solely for the sake of building.
What will attract long-term residents and businesses is to develop attractive, walkable new properties that are in harmony with surrounding neighborhoods. This in turn will attract businesses and local retail, and reduce the current commercial vacancy rate of 18 percent, since more people will want to live and work in Alexandria (examples of this type of development can be seen in Shirlington, Bethesda, and Clarendon).
Although Alexandria does not appear to be in imminent danger of going bankrupt, this is only because Alexandria has a relatively high-income base from which to tax. Thus, the city is able to finance its financial shortcomings on the backs of its citizens, as evidenced by a 23 cents per $100 of assessed value increase in property taxes over the past 10 years.
This tax increase would have been somewhat more acceptable if the developments had been better integrated into the existing city fabric. What we have now is a massive “pastiche collage” (or patchwork quilt) approach of unrelated projects that do not add distinction, or create a sense of place. This is a real loss for those of us who wish for measured, practical focus on things that would make Alexandria a safe, vibrant, and attractive city for all.
Townsend A. “Van” Van Fleet
Alexandria