City of Alexandria, Virginia
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MEMORANDUM
DATE: OCTOBER 3, 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:
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Consideration of the Monthly Financial Report for the Period Ending August 31, 2023.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending August 31, 2023.
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, 2023, General Fund revenues totaled $13.8 million, a decline of 52.0 percent compared to the same period in FY 2023. 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 2023 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 2024 compared to FY 2023 for the same period is the receipt of payments from the Commonwealth, including HB 599 funds for local law enforcement and Personal Property Tax Relief funds. Both of these were remitted to the City in August of FY 2023, but have not been posted as of mid-September 2023 (FY 2024).
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 to the pre-pandemic level in FY 2019. All categories have rebounded to pre-pandemic levels and continue to provide a visual depiction of the local economy.
As of August 31, 2023, General Fund expenditures totaled $112.8 million, a difference of $4.0 million more compared to the same time period for FY 2023. 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 FY 2024 that is unbudgeted or unexpected. The most significant difference is the timing of payments. Debt Service payments scheduled in July are greater in FY 2024 than in FY 2023.
ATTACHMENTS:
Attachment 1: Comparative Statement of General Fund Revenues
Attachment 2: Comparative Statement of General Fund Expenditures
Attachment 3: Consumer Spending comparison charts
STAFF:
Morgan Routt, Director, Office and Management and Budget