City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 5, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, INTERIM DEPUTY CITY MANAGER
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 2024.
BODY
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ISSUE: Consideration of a Reappropriation Ordinance to amend Fiscal Year 2024 Appropriation.
RECOMMENDATION: That City Council pass this proposed ordinance (Attachment 2) on first reading on Tuesday, December 12, 2023, and schedule it for second reading, public hearing, and final passage on Saturday, December 16, 2023.
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 the 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 2024 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 2024 savings.
Staff recommend that the Fiscal Year (FY) 2024 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, 2022, but not paid by that date. This appropriation includes encumbrances totaling $3,943,811 of Equipment Replacement Reserve Fund obligations (primarily for vehicles and equipment ordered in FY 2023 but not delivered until FY 2024).
Section 2. Reappropriation of revenues received but not appropriated. This appropriation includes external grant funds in the amount of $4,188,098, 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 3. Appropriation of grant revenues authorized and adjusted but not appropriated in FY 2024. The $6,025,784 in grants in this section reflect grant revenues that are included as estimates in the current year budget that are being adjusted to reflect the actual award, as well as new grants. New grant applications are approved by City Council. Where applicable, the date of the City Council meeting is included in the comments, as well as how the funds will be utilized. A listing of grants is included (Attachment 3).
Section 4. Appropriation of funds to the Alexandria Transit Company. This appropriation includes $14,886,000 in funds to the Alexandria Transit Company (DASH), for several grant funded initiatives, including service expansion and electric bus purchases, as well as several smaller grants.
Section 5. Appropriation of Donations and Other Special Revenues received but not $1,019,020 in donations and other special revenue received, but not appropriated in FY 2024, to the Departments of Transportation and Environmental Services, Recreation. Community and Human Services, and the Offices of Historic Alexandria and the Sheriff. Donations and contributions have been received for the Opioid Settlement Agreement, Curbside Composting, Robinson Landing maintenance and the guaranteed basic income program.
Section 6. Appropriation of Other Special Revenues received but not appropriated in the FY 2024 Operating Budget. Several of the City’s Public Safety and Justice Agencies receive funds in the form of Seized Assets. This appropriation of $125,928 in seized assets for the Office of the Commonwealth’s Attorney to support the implementation of body worn cameras.
Section 7. Appropriation of Component Unit Funds - Alexandria Libraries. This appropriation of $66,346 for the Alexandria Libraries recognizes additional state revenue provided above the amount included in the FY 2024 Approved Operating Budget.
Section 8. Appropriation of General Fund Balance. This appropriation of $6,255,233 will fund projects that were not complete at the end of FY 2023 or projects for which the identified funding is FY 2023 savings. Attachment 4 details the incomplete projects that are being funded.
Section 9. Appropriation of Capital Project Fund budget authority from Assigned General Fund Balance, Intergovernmental Revenue, and developer contributions. This appropriation totals $3,578,193 for the specific projects included in the ordinance.
Section 10. Appropriation of Equipment Replacement Fund Balance to purchase City vehicles. This appropriation includes a total of $1.4 million of Equipment Replacement Reserve funds to replace the City’s tub grinder and $1.3 million for mobile data equipment for the Fire Department.
Section 11. Appropriation of DASH Funds - Alexandria Transit Company. This appropriation of $1.5 million increase the approved budget of the Alexandria Transit Company to cover the budget deficits in operations and maintenance due to overtime and increased costs for fuel, parts and supplies. The DASH budget deficits in operations overtime is $1.2 million. The deficit in fuel, parts and supplies is also $1.2 million. These deficits are offset by budget savings in maintenance and administrative personnel costs, as well as operations wages savings due to vacancies. The budget deficit at DASH is being funded by General Fund savings generated from the City’s WMATA contribution funding strategy.
Section 12. Appropriation of Special Revenue Funds. This appropriation of $400,000 provides spending authority in the Special Revenue Fund in the Department of Community. The source of funds are General Fund Fund Balance appropriated in Section 8 as a General Fund Interfund Transfer.
FISCAL IMPACT: The eleven sections of the ordinance appropriate a total of $43,837,636 as follows:
Section 1. Reappropriation of monies encumbered as of June 30, 2023 $ 3,943,811
Section 2. Reappropriation of grant revenues authorized and adjusted but not $ 4,188,098
appropriated in Fiscal Year 2024.
Section 3. Appropriation of grant revenues authorized and adjusted but not $ 6,025,784
appropriated in Fiscal Year 2024.
Section 4. Appropriation of Grant Funds - Alexandria Transit Company $ 14,886,000
Section 5. Appropriation of residual balances in accounts to be funded from $ 1,019,020
donations, fees, and other special revenue.
Section 6. Appropriation of residual balances in accounts to be funded $ 125,928
from seized assets.
Section 7. Appropriation of Component Unit Funds - Libraries $ 66,346
Section 8. Appropriation of General Fund Balance $ 6,255,233
Section 9. Appropriation of Capital Improvement Program Funds $ 3,578,193
Section 10. Appropriation of Equipment Replacement Fund Balance $ 2,700,000
Section 11. Appropriation of DASH Funds $ 693,223
Section 12. Appropriation of Special Revenue Funds $ 400,000
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2024 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2024 Appropriation
Attachment 3: Listing of Fiscal Year 2024 City of Alexandria Grant Adjustments
Attachment 4: Listing of Fiscal Year 2024 Incomplete Projects
STAFF:
Morgan Routt, Budget Director, OMB
Amanda Hamm, Assistant Budget Director
Meghan McGrane, Budget Analyst