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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Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to amend Section 3-2-301 of the Alexandria City Code related to Fees for Passing Bad Checks to the City.
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ISSUE: Consideration of an ordinance to amend Section 3-2-301 to align with legislative changes made during the 2026 Session of the Virginia General Assembly.
RECOMMENDATION: That City Council pass the proposed ordinance in Attachment 2 on first reading and schedule it for public hearing, second reading and final passage on September 19, 2026.
BACKGROUND: This City Code amendment is based on the adoption of HB 177 during the 2026 Session of the Virginia General Assembly. A copy of this legislation is provided for reference in Attachment 3.
DISCUSSION: The change to the state code is a technical amendment to clarify that Bad Check Fees apply to electronic payment orders as well as physical checks. Staff have always interpreted existing law to allow the Bad Check Fee in such cases. However, with the new legislation this interpretation is now codified, and the proposed amendment to the City Code will ensure alignment with the enabling state statute.
FISCAL IMPACT: None. This clarifying amendment simply codifies how staff have been administering City Code 3-2-301. In FY 2026, Finance collected $8,491 from 243 bad checks. The City’s ordinance presently caps the local Bad Check Fee at $35. Existing state law allows for a fee of up to $50. Should the Council wish to increase the fee to the state maximum, that code amendment would generate an additional $3,659.
ATTACHMENTS:
Attachment 1 - Ordinance Cover
Attachment 2 - Proposed Ordinance Amendment, Section 3-2-301 of the City Code
Attachment 3 - HB 177
STAFF:
Johanna Seltzer, Deputy Finance Director
Aaron Root, Assistant Director, Treasury Division
Sarah E. McElveen, Assistant City Attorney III