City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 2, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: KEVIN C. GREENLIEF, DIRECTOR OF FINANCE
DOCKET TITLE:
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Consideration of the Monthly Financial Report for the Period Ending June 30, 2026.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending June 30, 2026.
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.
DISCUSSION: As of June 30, 2026, General Fund revenues totaled $952.9 million, an increase of $17.6 million, or 1.9 percent over FY 2025. The increase over the prior year is principally due to General Property taxes and Other Local taxes, partially offset by decreases in Other Governmental Revenue, principally an anticipated decrease in interest income associated with federal rate declines at the beginning of the fiscal year.
While overall growth was relatively flat at 1.9%, the City did see a positive improvement in Consumption taxes in the latter part of the year. Generally trending negative for the first three-quarters of the year, Consumption taxes ended strong- up over the prior year by 2.72%. Details are provided in Attachment 3.
This is consistent with information monitored by Visit Alexandria. As reported in last month’s Monthly Financial Report, Visit Alexandria noted that during the week of June 28 - July 4, Virginia outperformed the nation across all key metrics with the July 4th holiday driving strong weekend performance. On July 4th alone they report that Alexandria posted 30.3% growth in hotel occupancy, contributing to an overall RevPar (Revenue Per Available Room) increase of 88.9%.
It is important to note the lag in tax receipts. For retail sales made in July, the City will not receive the associated Sales Tax from Richmond until late September. For Meals Tax and Transient Lodging Tax collected from customers in July, payment is not due to the City until August 31.
Business License taxes also came in stronger than anticipated in the Revised Estimate, posting an increase of 3.8% over FY 2025.
As of June 30, 2026, General Fund expenditures totaled $976.5 million, an increase of 7.0%. Key drivers to the increase included a 3.4% increase in the Schools transfer, planned increases in FY 2026 Cash Capital, budgeted increases to transfers to Special Revenue and Capital Project funds, and the timing of actual debt service payments.
Revenue less expenditures resulted in the use of $23.6 million in spendable fund balance, but this was less than anticipated. The FY 2026 Approved Budget planned on the use of $15 million in assigned fund balance for the CIP, and the remainder was the result of the unprecedented Snowcrete event in January. The preliminary estimate of the year-end fund balance is $203.4 million, with the spendable fund balance at 20.71% of General Fund revenue, well above the adopted target of at least 15%.
It is important to note that the Department of Finance is presently working on closing FY 2026, with the hard close not slated until late September. While significant changes are not anticipated, the numbers are not yet final and are still subject to change and represent unaudited actuals.
ATTACHMENTS:
Attachment 1: Comparative Statement of General Fund Revenues
Attachment 2: Comparative Statement of General Fund Expenditures
Attachment 3: Consumption Taxes
STAFF:
Morgan Routt, Director, Office and Management and Budget
Johanna Seltzer, Deputy Director, Department of Finance