City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 4, 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 April 30, 2026.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending April 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.
As of April 30, 2026, General Fund revenues totaled $593.5 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 April, we are on target for Real Estate collections. Personal Property continues to lag through April as previously reported, though supplemental assessments from vehicle move ins and purchases are expected to help close the gap somewhat with a due date of May 29. 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. While property taxes are up 1.5% through April, Other Local Taxes are trending negative by -1.2%. Business Licenses which were due March 1 were down -1.1% through April, but continued posting through May 19 now indicates positive growth over the prior year by 1.3%. Still, that is considerably down from the 6.1% normal growth assumed in the FY 2026 Approved Budget. Staff lowered the forecast at the November retreat in anticipation of the reduction in federal contracts.
Consumption taxes continue trending negative as the combined growth rate has flattened. Year-to-date receipts through April show a cumulative growth rate of -1.22%, with the biggest decrease being in Transient Lodging Taxes (Attachment 3). Meals Tax alone is slightly positive through April.
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 April 30, 2026, General Fund expenditures totaled $821.4 million, an increase of 10.0%, in part due to the timing difference of posting debt service payments in FY 2026. Adjusting for that timing difference, the percentage of year-to-date expenditures is comparable to the prior year.
City Council passed a Supplemental Appropriation Ordinance in April primarily to recognize actual grant awards to departments, to appropriate Equipment Replacement Reserve funds, to make Capital Project fund adjustments, and to appropriate $11 million from fund balance to accommodate the significant expenses associated with the January snow and ice storm. The final cost of these storm invoices was approximately $10.4 million. The balance of the appropriation will remain in the General Fund. City Council will consider the final Supplemental Appropriation Ordinance for FY 2026 in June.
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, Chief of Administration, Finance Department