City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 6, 2022
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 2023.
BODY
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ISSUE: Consideration of a Reappropriation Ordinance to amend Fiscal Year 2023 Appropriation.
RECOMMENDATION: That City Council pass this proposed ordinance (Attachment 2) on first reading on Tuesday, December 13, 2022, and schedule it for second reading, public hearing, and final passage on Saturday, December 17, 2022.
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 2023 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 2023 savings.
Staff recommend that the Fiscal Year (FY) 2023 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 $3,528,152 of Equipment Replacement Reserve Fund obligations (primarily for vehicles and equipment ordered in FY 2022 but not delivered until FY 2023).
Section 2. Reappropriation of Alexandria Transit Company funds. This appropriation includes $84,963 in budget authority in several programs for the Alexandria Transit Company. These funds were encumbered at the end of FY 2022, but the payments will be made in FY 2023. This will provide the necessary budget authority in FY 2023.
Section 3. Reappropriation of revenues received but not appropriated. This appropriation includes program income, loan repayments and Housing Trust Funds in the amount of $193,335.
Section 4. Reappropriation of revenues received but not appropriated. This appropriation includes external grant funds in the amount of $4,399,931, 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 5. Appropriation of grant revenues authorized and adjusted but not appropriated in FY 2023. The $3,063,803 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 6. Appropriation of funds to the Alexandria Transit Company. This appropriation includes $75,000 in funds to the Alexandria Transit Company (DASH), for the marketing grants.
Section 7. Appropriation of Donations and Other Special Revenues received but not appropriated in the FY 2023 Operating Budget. This section appropriates $369,069 in donations and other special revenue received, but not appropriated in FY 2023, to the Police Department, the Office of Historic Alexandria and the Department of General Services. The most significant portion of this is $200,000 in fee revenue that has been collected in prior years and will be used for Courthouse maintenance and $125,000 in Historic Alexandria Foundation funding for a report related to the Murray-Dick-Fawcett House.
Section 8. Appropriation of Other Special Revenues received but not appropriated in the FY 2022 Operating Budget. Several of the City’s Public Safety and Justice Agencies receive funds in the form of Seized Assets. This appropriation of $574,031 in seized assets for the Police Department, which will provide funds for equipment and training, as well as upgrades and hardware components for the Mobile Command Center that was also initially purchased with Seized Assets. Additional funds are being appropriated the Office of the Commonwealth’s Attorney.
Section 9. Appropriation of General Fund Revenue. This section increases the total appropriation in the General Fund by $805,413, the source of this being the $0.6 million earmark provided by Congressman Donald Beyer to support the City’s Body Worn Camera initiative. The remainder is Recreation Department class fee revenue.
Section 10. Appropriation of Component Unit Funds - Alexandria Libraries. This appropriation of $57,434 for the Alexandria Libraries recognizes additional state revenue provided above the amount included in the FY 2023 Approved Operating Budget, as well as a $30,061 transfer from the General Fund for projects approved by City Council during the FY 2023 Approved Budget.
Section 11. Transfer of American Rescue Plan Act Funds. This section deappropriates $4,125,164 in American Rescue Plan Act funds that were approved by City Council in September 2021 to specific departments and reappropriates the same amount as an interfund transfer to the General Fund to be recognized as revenue replacement. The same funds approved by City Council are being appropriated in the General Fund in Section 15.
Section 12. Appropriation of General Fund Balance. This appropriation of $67,097,005 will fund projects that were not complete at the end of FY 2022 or projects for which the identified funding is FY 2022 savings. The majority of this appropriation will fund projects that City Council included in the FY 2023 budget that would be ARPA funded. ARPA funds were recognized in FY 2023 to replace revenue that was lost due to the pandemic. This resulted in a surplus in FY 2022 that has been assigned in Fund Balance to fund the initiatives that City Council has identified. Attachment 4 details the incomplete projects that are being funded. Attachment 5 details the projects that are able to be funded with the resulting Fund Balance.
Section 13. Appropriation of Schools Fund Balance. This appropriation of $3,774,100 Schools Fund Balance will be appropriated and transferred to the Capital Fund to fund projects already planned in FY 2024.
Section 14. Appropriation of Capital Project Fund budget authority from Assigned General Fund Balance, Special Revenue Fund Balance, and developer contributions. This appropriation totals $12,930,772 for the specific projects included in the ordinance.
Section 15. Appropriation of Special Revenue Funds. This appropriation of $250,000 will provide budget authority to the Fire Department in the appropriate fund. The sources of these funds are interfund transfers from the General Fund approved in Section 12 to the Special Revenue Fund.
FISCAL IMPACT: The fifteen sections of the ordinance appropriate a total of $97,203,008 as follows:
Section 1. Reappropriation of monies encumbered as of June 30, 2022 $ 3,528,152
Section 2. Reappropriation of Funds - Alexandria Transit Company $ 84,963
Section 3. Reappropriation of Affordable Housing Funds. $ 193,335
Section 4. Reappropriation of grant revenues authorized and adjusted but not $ 4,399,931
appropriated in Fiscal Year 2023.
Section 5. Appropriation of grant revenues authorized and adjusted but not $ 3,063,803
appropriated in Fiscal Year 2022.
Section 6. Appropriation of Funds - Alexandria Transit Company $ 75,000
Section 7. Appropriation of residual balances in accounts to be funded from $ 369,069
donations, fees, and other special revenue.
Section 8. Appropriation of residual balances in accounts to be funded $ 574,031
from seized assets.
Section 9. Appropriation of General Fund Revenues $ 805,413
Section 10. Appropriation of Component Unit Funds - Libraries $ 57,434
Section 11. Transfer of American Rescue Plan Act Funds $ 0
Section 12. Appropriation of General Fund Balance $ 67,097,005
Section 13. Appropriation of Schools Fund Balance $ 3,774,100
Section 14. Appropriation of Capital Improvement Program Funds $ 12,930,772
Section 15. Appropriation of Special Revenue Funds $ 250,000
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2023 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2023 Appropriation
Attachment 3: Listing of Fiscal Year 2023 City of Alexandria Grant Adjustments
Attachment 4: Listing of Fiscal Year 2023 Incomplete Projects
Attachment 5: Projects fund with General Fund Revenue Replacement Assignment
STAFF:
Morgan Routt, Budget Director, OMB
Amanda Hamm, Assistant Budget Director
Meghan McGrane, Budget Analyst