City of Alexandria, Virginia
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MEMORANDUM
DATE: NOVEMBER 4, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: KEVIN C. GREENLIEF, DIRECTOR OF FINANCE
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Make Supplemental Appropriations for the Support of the City Government for Fiscal Year 2027.
BODY
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ISSUE: Consideration of a Reappropriation Ordinance to amend Fiscal Year 2027 Appropriation.
RECOMMENDATION: That City Council pass this proposed ordinance (Attachment 2) on first reading on Tuesday, November 10, 2026, and schedule it for second reading, public hearing, and final passage on Saturday, November 14, 2026.
DISCUSSION: Each year, City staff submits a Reappropriation Ordinance to City Council to reappropriate certain monies authorized by City Council in the prior fiscal year but not expended as of June 30. 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 the previous fiscal year, but not delivered until the next fiscal year, monies need to be reappropriated to cover expenditures paid in the current fiscal year. The various sections throughout this document provide spending authority in the current fiscal year for projects and initiatives already established by City Council.
In addition to encumbered or obligated funds, the ordinance establishes budget authority in the current year for revenues received in the current or prior year that have not been appropriated. When possible, the current year operating budget includes an estimated amount for grants and other special revenue and the budget is adjusted, via this ordinance, when the actual revenue amount is awarded. Grants, fees, donations, and other special revenues are restricted in purpose. Where relevant, staff has referenced the City Council docket item or action that pertains to the appropriation. Many of the programs and services in the Office of Housing and the Department of Community and Human Services are funded with state and federal appropriations that are not tied to specific grant applications. Funds are allocated to the City based on existing programs, clients, or regional agreements. Resources for these departments are utilized to leverage General Funds or minimize the impact on the General Fund, while furthering the goals and objectives of the City Council Strategic Plan. Attachment 3 lists the new grants and changes in funding levels compared to the amount estimated in the FY 2027 Approved Operating Budget. Where significant, staff have described how the funding change will impact services. Attachment 4 provides a list of incomplete projects and other one-time expenditures that will be funded with FY 2026 savings.
Staff recommend that the FY 2027 Appropriation be amended to accomplish the following purposes:
Section 1. Reappropriation of Equipment Replacement Reserve Fund Balance to pay for commitments, in the form of encumbrances, established prior to June 30, 2026 but not paid by that date. This appropriation includes encumbrances totaling $268,915 of Equipment Replacement Reserve Fund obligations (primarily for vehicles and equipment ordered in FY 2026 but not delivered until FY 2027).
Section 2. Appropriation of Assigned General Fund Balance for the Capital Improvement Program (CIP). This appropriation includes $15,000,000 in planned use of designated fund balance for support of the FY 2027 CIP.
Section 3. Appropriation of grant revenues authorized and adjusted but not appropriated in FY 2027. The $4,260,491 in grants in this section reflect new grant revenues as well as adjustments to estimated grant revenues in the current year budget to reflect actual award amounts. A listing of grants and their intended use is included (Attachment 3).
Section 4. Appropriation of Donations and Other Special Revenues received but not appropriated in the FY 2027 Operating Budget. This section appropriates $2,975,690 in donations and other special revenue received, but not appropriated in FY 2027. Donations and contributions have been received for landscape commemorations, the urban forestry program, and improvements to Freedom House Museum, and fee revenue from e-summons citations. Several of the City’s public safety and justice agencies receive funds in the form of seized assets. The appropriation also includes $154,891 in seized asset funds previously litigated and awarded to the Commonwealth’s Attorney. These funds may be used to supplement law enforcement activities but not to supplant existing financial resources and will be utilized for unanticipated educational and technology expenses.
Section 5. Reappropriation of revenues received but not appropriated. This appropriation includes external grant funds in the amount of $2,412,204, primarily funds received from the Department of Housing and Urban Development. Reappropriated revenues will be used for loan and rehabilitation programs and other affordable housing initiatives.
Section 6. Appropriation of Housing Trust Fund Revenues Received but not Appropriated in FY 2027. This appropriation includes loan repayments, developer contributions and Housing Trust Funds in the amount of $5,084,680.
Section 7. Appropriation of General Fund Balance. This appropriation of $1,113,826 will fund projects that were not complete at the end of FY 2026 or projects for which the identified funding is FY 2026 savings. Attachment 4 details the incomplete projects that are being funded.
Section 8. Appropriation of Capital Project Fund budget authority from Assigned General Fund Balance, Intergovernmental Revenue, and developer contributions. This net appropriation totals $16,140,563 for increases and decreases to the specific projects listed in Section 7 of this ordinance.
Section 9. Transfer of Budget Authority Between Departments. This section shifts General Fund appropriations between departmental units, including transfers required to support Artificial Intelligence Pilot Programs, security initiatives for Criminal Justice Services, and a re-allocation of copier costs from City departments to General services.
Section 10. Appropriation of Component Unit Funds - Alexandria Library. This appropriation of $29,757 recognizes State Aid revenue received, but not yet appropriated.
FISCAL IMPACT: The ten sections of the ordinance appropriate a total of $47,286,126 as follows:
Section 1. Appropriation of Equipment Replacement Reserve Fund $ 268,915
Section 2. Appropriation of General Fund Balance for the Capital $ 15,000,000
Improvement Program
Section 3. Appropriation of grant revenues authorized and adjusted but not $ 4,260,491
appropriated in Fiscal Year 2027.
Section 4. Appropriation of residual balances in accounts to be funded from $ 2,975,690
donations, fees, and other special revenue.
Section 5. Appropriation of Housing grant revenues authorized and adjusted $ 2,412,204
but not appropriated in Fiscal Year 2027.
Section 6. Appropriation of Housing Trust Fund Revenues Received but not $ 5,084,680
Appropriated in FY 2027
Section 7. Appropriation of General Fund Balance $ 1,113,826
Section 8. Appropriation of Capital Improvement Program Funds $ 16,140,563
Section 9. Transfer Between Departments $ 0
Section 10. Appropriation of Component Unit Funds - Alexandria Library $ 29,757
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2027 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2027 Appropriation
Attachment 3: Listing of Fiscal Year 2027 City of Alexandria Grant Adjustments
Attachment 4: Listing of Fiscal Year 2027 Incomplete Projects
STAFF:
Morgan Routt, Budget Director, OMB
Johanna Seltzer, Deputy Finance Director
Amanda Hamm, Assistant Budget Director
Meghan McGrane, Budget Analyst