City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 4, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KEVIN C. GREENLIEF, DIRECTOR OF FINANCE
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Make Appropriations for the Support of the City Government for Fiscal Year 2027.
BODY
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ISSUE: Consideration of an Appropriation Ordinance to make appropriations for the support of the government of the City of Alexandria, Virginia, for FY 2027.
RECOMMENDATION: That City Council approve the proposed Appropriations Ordinance for FY 2027 (Attachment 2) reflecting $1,949,695,502 in total appropriations for the annual budget, plus $12,992,450 in end of year encumbrances, on first reading, and schedule it for second reading, public hearing and final passage on Saturday, June 13, 2026.
DISCUSSION: On April 29, 2026, City Council adopted the FY 2027 Budget and adopted an ordinance setting the City’s real property and personal property tax rate for calendar year 2026. In accordance with sections 6.07 and 6.14 of the City Charter, an annual ordinance is also required to appropriate the Approved Operating and Capital Budgets. This ordinance is always scheduled for June City Council consideration. This ordinance contains the appropriation of the Adopted Operating Budget, the reappropriation of expected encumbrances, and an appropriation from the Special Revenue Fund for new grants. This ordinance also reflects the Approved Budget of the Alexandria City Public Schools (ACPS), set for adoption by the School Board on June 11. Any changes or amendments adopted by the School Board in the Final Budget will be brought to City Council for appropriation in the Fall.
ADOPTED OPERATING BUDGET: Sections 1 through 9 of the attached proposed appropriation ordinance legally establishes the revenues and expenditures of the FY 2027 budget. As detailed in Section 7 of the attached ordinance, a significant portion of the General Fund’s revenues are transferred to other funds and component units, principally to finance operations of the Alexandria City Public Schools. In addition, the total expenditure appropriation is reduced by the amount of these transfers (referred to as “Interfund Transfers”) to eliminate double counting and accurately reflect the aggregate expenditure appropriations. Table I, which is attached to the ordinance, provides the detailed breakdown for all funds for each department and component unit. Table II, which is also attached to the ordinance, provides the detailed revenue estimate for all funds by the major sources of revenue. Both tables reflect the expenditures and revenues inclusive of Interfund Transfers. The total appropriation of $1,949,695,502, net of $524,154,382 in Interfund Transfers (in order to not double count) equals $1,425,541,120.
REAPPROPRIATION OF PROJECTED ENCUMBRANCES: Section 10 of the attached proposed appropriation ordinance reappropriates monies authorized and expected to be obligated in FY 2026 but not expected to be expended as of June 30, 2026. By City Charter, all appropriations lapse at the end of the fiscal year. When budgeted goods and services are ordered prior to the end of one fiscal year but not delivered until the next fiscal year, monies need to be reappropriated to cover the expenditures paid in the current fiscal year. As introduced in 2006, encumbrances are now authorized based on estimates of preliminary encumbrances. The actual encumbrance amount that is carried over from FY 2026 into FY 2027 may be lower than this amount. The final encumbrance amount that is carried over into FY 2027 will be reduced to reflect actual authorized encumbrances.
FISCAL IMPACT: This ordinance authorizes the receipt and expenditure of $1,962,687,952 for FY 2027 in the following sections: $1,949,695,502 in Sections 1 through 9 and $12,992,450 in Section 10:
Section 1 to Section 9
General Fund $ 979,063,681
Special Revenue Fund 148,898,126
Affordable Housing Fund 12,373,055
Sewer Special Revenue Fund 17,502,000
Stormwater Special Revenue Fund 21,914,000
Potomac Yard Fund 20,414,399
Northern Virginia Transportation Authority Fund 48,622,246
Capital Projects Fund 244,556,708
Equipment Replacement Internal Service Fund 6,511,267
Alexandria City Public Schools 400,829,052
Library Fund 10,131,102
Alexandria Transit Company 38,879,866
Total $ 1,949,695,502
Less Interfund Transfers (524,154,382)
Total Net of Transfers $ 1,425,541,120
The amounts listed for the Alexandria Transit Company, the Schools, and the Library represent their total budgets, including the City’s General Fund appropriation to each agency and any fee revenue, grants, State aid or other revenues that are part of the total budgets. By the City Charter, Council must appropriate all monies, including those for the Alexandria Transit Company, Alexandria City Public Schools, irrespective of the source. The attached tables show revenues, expenditures and transfers by department and fund.
Section 10
The reappropriation of $12,992,450 of General Fund Balance is the maximum monies estimated to be encumbered as of June 30, 2026. This is an estimated amount which may be lowered in the first few months of FY 2027 to the actual encumbrance need. By obtaining an estimated authorized amount by July 1, clearer internal budget management is facilitated.
Reappropriation of monies encumbered as of June 30, 2026 $ 12,992,450
Total $1,962,687,952
ATTACHMENTS:
Attachment 1 - Appropriation Ordinance Cover
Attachment 2 - Appropriation Ordinance
Attachment 3 - Table I - Expenditures by Department or Component Unit by Fund
Attachment 4 - Table II - Sources of Revenue
STAFF:
Johanna Seltzer, Chief of Administration, Department of Finance
Morgan Routt, Director of Management & Budget
Amanda Hamm, Assistant Director of Management and Budget