City of Alexandria, Virginia
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MEMORANDUM
DATE: OCTOBER 2, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, DIRECTOR OF FINANCE
DOCKET TITLE:
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Consideration of the Monthly Financial Report for the Period Ending August 31, 2024.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending August 31, 2024.
RECOMMENDATION: That City Council receives the Monthly Financial Report.
BACKGROUND: The following discussion is a summary of the Monthly Financial Report for this period. Detailed comparative schedules are attached.
As of August 31, 2024, General Fund revenues totaled $15.4 million, an increase of 11.8 percent compared to the same period in FY 2024. It is important to note that revenues collected in July and some of the revenue collected in August are for taxes owed in June and are therefore accrued to the prior fiscal year. Timing issues are also much more pronounced in the early months of the fiscal year. The first significant tax revenue for FY 2024 is traditionally due on October 5 when personal property taxes for vehicle and business personal property are due. The bills are mailed in mid to late August and payments processed in August can vary significantly. The most significant variance in FY 2025 compared to FY 2024 for the same period is the receipt of payments from the federal government. Last year by the end of August, the City had received and posted funds for housing federal prisoners.
Revenue may not track consistently with a monthly calendar since many revenue sources have due dates that do not occur evenly throughout the year. The largest revenue source, real estate tax, is remitted twice per year. Personal property tax revenue is due on October 5 each year. Through the first two months of the fiscal year, no category has sufficient receipts to establish a clear pattern.
Consumer spending charts are attached which compare several significant tax revenue categories for the past several years through the unaudited totals of fiscal year ending FY 2024. Although the economy has slowed as inflation remains high, the categories all remain strong.
As of August 31, 2024, General Fund expenditures totaled $106.5 million, an increase of $6.9 million compared to the same time period for FY 2024. Similar to the situation with revenues, it is too soon to make any definitive economic interpretation from the activity that has occurred in the first two months of the fiscal year. No significant expenditure has occurred in the first two months of Fiscal Year 2025 that is unbudgeted or unexpected. The most significant difference is the timing of payments. In addition, the amount of debt service owed in July in FY 2025 was $6.7 million more than the amount owed in July of FY 2024.
ATTACHMENTS:
Attachment 1: Comparative Statement of General Fund Revenues
Attachment 2: Comparative Statement of General Fund Expenditures
Attachment 3: Consumer Spending comparison charts
STAFF:
Kendel Taylor, Director, Finance Department
Morgan Routt, Director, Office and Management and Budget