City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 6, 2025
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
Consideration of the Monthly Financial Report for the Period Ending March 31, 2025.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending March 31, 2025.
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 March 31, 2025, General Fund revenues totaled $566.8 million, an increase of $30.9 million, or 5.8 percent, compared to the same period in FY 2024. There are no significant variations in receipts through the midpoint of the fiscal year other than those related to the timing of billing cycles, posting and accruals. It is important to note that several revenue categories lag by one or two months. 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 City’s largest revenue source, Real Estate tax, is remitted twice per year and aligns closely with revenue from the same period in FY 2024. Real Estate tax revenue was due to the City on November 15. Through March 31, 2025, the City has collected $269.9 million or 49.5 percent of the budgeted amount. This is comparable to FY 2024 when the City had collected $260.5 million as of March 31, 2024, or 49.0 percent of the budgeted amount. Personal Property tax revenue, including Business Personal Property, remains strong in FY 2025. The $73.7 million collected in the first nine months of the fiscal year reflects 97.6 percent of the budgeted amount compared to collections of $67.4 million during the same period in FY 2024. Business License tax revenue continues to perform well with collections of $40.5 million to date, an increase of 3.7% from the same period last fiscal year. Real Estate Recordation revenue is $1.2 million more than the same period in FY 2024, reflecting that while sales volume is still down, property values remain high.
While inflation has slowed, prices remain high, impacting discretionary consumer spending in some categories, such as Admissions and Tobacco taxes. However, Restaurant Meals tax revenue is 4.9 percent higher than the same time period last fiscal year and Transient Lodging Tax revenue reflects a modest increase of 2.0 percent compared to FY 2024. Attachment 3 provides the City’s 3rd quarter investment report. Revenues are projected to total $921.1 million and no use of fund balance is projected to be used to support the operating budget.
As of March 31, 2025, General Fund expenditures totaled $704.4 million, reflecting an increase of $163.3 million, or 30.2 percent, compared to the same time period for FY 2024. As with revenues, no significant expenditure has occurred in the first nine months of Fiscal Year 2025 that is unbudgeted or unexpected. The most significant difference is the timing of payments and the posting of interfund transfers. In March 2024 only half of the City’s transfers to various funds had been posted (cash capital, transfer to the Schools, and Housing). These are accounting entries and do not constitute any economic indication. As noted in previous Monthly Financial Reports, most interfund transfers have been posted for FY 2025, including recording of the $273.0 million General Fund transfer to support the Schools. At this time last year, only $129.4 million of the Schools transfer had been recorded. The combined total expenditures of the Legislative and Executive agencies, Judicial Administration agencies, and Staffing and Operating agencies (net of interagency transfers) total $272.6 million at this time in FY 2025 compared to $266.4 million in FY 2024, an increase of $6.2 million or 2.3 percent.
ATTACHMENTS:
Attachment 1: Comparative Statement of General Fund Revenues
Attachment 2: Comparative Statement of General Fund Expenditures
Attachment 3: Investment Report for 3rd Quarter of FY 2025
STAFF:
Laura Gates, Deputy Director, Finance Department
Morgan Routt, Director, Office and Management and Budget