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Sluggish Housing Sinks Alexandria Budget

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The city of Alexandria, Virginia is anticipating a budget shortfall for fiscal year 2013 if tax rates and service levels remain the same. Acting City Manager Bruce Johnson says it'll be another tough financial year for Alexandria, with a projected $14.4 million deficit for fiscal year 2013, "And that's before we received any requests from the schools or the transit organizations."

City officials blame the lack of revenue in part on the real estate market which, while growing, is not growing as fast as the city hoped. This, of course limits the growth of revenue from property taxes.

"We'll probably have to prioritize city services and can't do all things for all people at this point in time," says Johnson. He says revenues are projected to rise by about 1.7 percent, while city operating costs will likely go up 4 percent or more.

Additional budget work sessions are slated for next month. City council is expected to issue a resolution provide budget guidance at its November 22 meeting.

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