City of Alexandria, Virginia
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MEMORANDUM
DATE: MARCH 5, 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 January 31, 2026.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending January 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 January 31, 2026, General Fund revenues totaled $497.4 million, an increase of $8.7 million, or 1.8 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. Through January, we are on target for Real Estate collections. Personal Property continues to lag through January as previously reported. Revenue from Use of Money and Property reflects a decrease of -14.7% compared to the prior year due to interest rate reductions by the Federal Reserve. The reduction was anticipated in the FY 2026 budget.
Other than Consumption Taxes, most other revenue categories are tracking as anticipated compared to the amount budgeted and no category reflects a significant variance at this time. It is important to note that no Business License data will be available until the annual returns are processed later in spring based on the March 1 due date set by State law.
Consumption taxes continue trending negative as the combined growth rate has flattened. Year-to-date receipts through January show a cumulative growth rate of -2.07% thus far for the Meals Tax, Transient Lodging Taxes, and Local Sales Tax.
As of January 31, 2026, General Fund expenditures totaled $711.6 million, an increase of 9.9%, but this is principally due to the timing difference in debt service payments in FY 2026 compared to the prior year. Looking at expenditures as a percent of the budget, expenditures are only tracking slightly ahead of last year’s pace.
It should be noted that this month’s report does yet not reflect the exceptional expenses related to the severe ice storm in late January. Those expenses, the invoices for which are still being accumulated, are reflected in a pending Supplemental Appropriation Ordinance.
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