City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 7, 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:
TITLE
Consideration of the Monthly Financial Report for the Period Ending March 31, 2026.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending March 31, 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.
As of March 31, 2026, General Fund revenues totaled $573.2 million, an increase of $6.4 million, or 1.1 percent, compared to the same period in FY 2025.
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, the Real Estate tax, is remitted twice per year, in November and June. The June installment will reflect increased assessments associated with tax year 2026. Through March, we are on target for Real Estate collections. Personal Property continues to lag through March as previously reported, though supplemental assessments from vehicle move ins and purchases are expected to help close the gap somewhat. Revenue from Use of Money and Property reflects a decrease compared to the prior year due to interest rate reductions by the Federal Reserve. The reduction was anticipated in the FY 2026 budget.
Revenues are generally flat for FY 2026. Utility taxes, Permit Fees, and Charges for Services are trending ahead, balanced against declines in Recordation taxes and Fines. Following the March 1 due date for Business License returns, taxes are currently trending flat with the prior year.
Consumption taxes continue trending negative as the combined growth rate has flattened. Year-to-date receipts through March show a cumulative growth rate of -1.08%, with the biggest decrease being in Transient Lodging Taxes (Attachment 3). Meals Tax alone has turned slightly positive through March.
Based on the flat revenue trend, departments have been advised to closely monitor expenses and limit discretionary spending for the remainder of the year to minimize the use of year-end fund balance to the extent possible.
As of March 31, 2026, General Fund expenditures totaled $775.1 million, an increase of 10.0%, in part due to the timing difference of posting debt service payments in FY 2026 compared to the prior year and initial expenses from the January snow and ice emergency.
ATTACHMENTS:
Attachment 1: Comparative Statement of General Fund Revenues
Attachment 2: Comparative Statement of General Fund Expenditures
Attachment 3: Comparative Consumption Spending
STAFF:
Morgan Routt, Director, Office and Management and Budget
Johanna Seltzer, Chief of Administration, Department of Finance