City of Alexandria, Virginia
________________
MEMORANDUM
DATE: JANUARY 8, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: KENDEL TAYLOR, DIRECTOR OF FINANCE
DOCKET TITLE:
TITLE
Consideration of the Monthly Financial Report for the Period Ending November 30, 2024.
BODY
_________________________________________________________________
ISSUE: Receipt of the Monthly Financial Report for the Period Ending November 30, 2024.
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 November 30, 2024, General Fund revenues totaled $427.4 million, an increase of $28.9 million, or 7.3 percent, compared to the same period in FY 2024. The first significant tax revenue for FY 2025 is traditionally due on October 5 when personal property taxes for vehicle and business personal property are due. The second payment on real estate taxes for calendar year 2024 are due on November 15. Through November 2024, the City has collected $5.9 million more in personal property tax revenue and $7.4 million more in real property tax revenue compared to the amounts collected in 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. Most revenues are tracking as anticipated compared to the amount budgeted and no category reflects a significant economic impact. It is important to note that Local Sales and Use Tax is below the amount collected through the same period last year by 1.2 percent. Sales tax revenue reflected significant increases in the past several years due to inflation. Revenue from fines and forfeitures is higher than FY 2024 by $1.2 million, largely due to revenue from the speed camera initiative. Revenue from Use of Money and Property reflects a significant increase compared to the prior year, but this is due to a difference in posting dates between the two years.
Consumer spending charts are attached which compare several significant tax revenue categories for the past several years. Inflation has slowed, minimizing growth in these categories, but revenue receipts remain high.
As of November 30, 2024, General Fund expenditures totaled $282.7 million, an increase of $18.8 million, or 7.1 percent, compared to the same time period for FY 2024. Similar to the situation with revenues, no significant expenditure has occurred in the first five months of Fiscal Year 2025 that is unbudgeted or unexpected. The most significant difference is the timing of payments. One of the most significant differences in spending compared to FY 2024 is the reduction in debt service paid in FY 2025. Approximately $13 million of debt service owed on July 1, but paid on June 30 has been posted as an expenditure in FY 2024, in accordance with generally accepted accounting principles. The resulting savings will be used to replenish fund balance.
ATTACHMENTS:
Attachment 1: Comparative Statement of General Fund Revenues
Attachment 2: Comparative Statement of General Fund Expenditures
Attachment 3: Consumer Spending comparison charts
STAFF:
Kendel Taylor, Director, Finance Department
Morgan Routt, Director, Office and Management and Budget