By JIM BUTLER

Arthur Laffer once said there was no Santa Claus working in the US Treasury. He’s evidently not in the City of Alexandria Finance office either.

A public hearing will be held Tuesday afternoon on Mayor Jacques Roy’s proposed budget that includes projected General Fund revenue of $70.2 million, about $16 million less than the current fiscal year expectation.

Roy’s budget message notes conditions which create uncertainties in revenue projections, requiring what he terms austere spending for the year beginning May 1.

The plan does include across-the-board pay adjustments and does not factor any City Council action on Utility System rates, as sure a forecast as Tiger Woods having his driver’s license suspended.

Tax revenue (sales and property) is expected to drop $3 million, to $39.5 million.

Other categories include intergovernmental transfers, use of fund balance, use of retained earnings, down about $11.5 million. 

On the spending side, public safety drops $1.5 million to $35.5 million, public works $6 million to $11.9 million, interfund transfers $9 million to $2.4 million. 

The Utility System Fund is expected to generate $113.1 million, up $4 million from the current year. Expenses are set at $62 million. Fuel adjustment charges above the base, 40-year-old rate are pass-along revenue, from the city to its supplier.