City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 2, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, DIRECTOR OF FINANCE
DOCKET TITLE:
TITLE
Public Hearing, Second Reading and Final Passage of an Ordinance to Make Supplemental Appropriations for the Support of the City Government for Fiscal Year 2025. [ROLL-CALL VOTE]
BODY
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ISSUE: Consideration of a Supplemental Appropriation Ordinance to amend Fiscal Year 2025 appropriations.
RECOMMENDATION: That City Council adopt this proposed Supplemental Appropriation Ordinance totaling $36,488,035 (Attachment 2) on first reading on Tuesday, April 8, 2025, and schedule it for second reading, public hearing, and final passage on Saturday, April 26, 2025.
DISCUSSION: This ordinance establishes budget authority in the current year for revenues received in the current or prior years that have not been appropriated. Where possible, the current year operating budget includes an estimated amount for grants and other special revenue and the budget is adjusted via this ordinance, when the actual revenue amount is awarded. Grants, fees, donations, and other special revenues are restricted in purpose. Where relevant, staff has referenced the City Council docket item or action that pertains to the appropriation. Many of the programs and services in the Office of Housing and the Department of Community and Human Services are funded with ongoing state and federal appropriations that are not tied to specific grant applications. Funds are allocated to the City based on existing programs, clients, or regional agreements. Resources for these departments are utilized to leverage General Funds or minimize the impact on the General Fund, while furthering the goals and objectives of the City Council Strategic Plan. Attachment 3 lists the new grants and changes in funding levels compared to the amount estimated in the Fiscal Year 2025 (FY 2025) Approved Operating Budget. Where significant, staff has described how the funding change will impact services.
Staff recommends that the FY 2025 Appropriation be amended to accomplish the following purposes:
Section 1. Appropriation of Housing Trust Fund Revenues Received but not Appropriated in FY 2025. This appropriation includes program income, loan repayments, and Housing Trust Funds in the amount of $2,516,851.
Section 2. Appropriation of Northern Virginia Transportation Authority (NVTA) Revenues Authorized but not Appropriated in FY 2025. This appropriation includes NVTA funds for transfer to cash capital in the amount of $1,642,000. This includes funds received and appropriated in prior fiscal years which were not transferred to specific projects and subsequently returned to fund balance.
Section 3. Appropriation of Grant Revenues Authorized and Adjusted but not Appropriated in FY 2025. The grants in this section were either included as estimates in the current year budget and are being adjusted to reflect the actual award, or they are newly awarded during FY 2025. New grant applications are approved by City Council. A listing of grants is included (Attachment 3) and totals $5,112,124 in various external grants.
Section 4. Appropriation of Donations and Other Special Revenues Received but not Appropriated in the FY 2025 Operating Budget. This section includes total appropriations of $3,050,553. These include $2,334,789 in Code Fund Balance for transfer to the Capital Projects Fund to fund expansion of the Permit Center and $500,000 in Code Fund Balance to appropriate revenues received but not appropriated in FY 2025. It also includes donations and other special revenue in the Department of Recreation, Parks & Cultural Activities ($119,264), the Department of Community and Human Services ($20,000), the Office of Historic Alexandria ($46,500), and the Department of Transportation & Environmental Services ($50,000) which will bring budget authority in line with revenues received in FY 2025. Sources of revenue include fees, developer contributions, and donations.
Section 5. Appropriation of Other Special Revenues - Seized Assets received but not appropriated in the FY 2025 Operating Budget. Several of the City’s Public Safety and Justice Agencies receive funds in the form of Seized Assets. This appropriation of $493,200 in seized assets for the Police Department will be used for equipment replacement, software updates, specialized training, and radar and range units.
Section 6. Appropriation of General Fund Revenues. Large capital projects are sometimes funded through capitalized interest, where the interest is funded through bond proceeds in the early years. Revenue is posted to the general fund to provide sufficient resources to pay the debt service. This appropriation of $4,787,146 in bond proceeds provides funds for the Landmark Redevelopment project.
Section 7. Appropriation of General Fund Balance. This appropriation of $1,351,724 in General Fund Balance includes $500,000 in Assigned General Fund Balance for transfer of cash capital to the Landmark Redevelopment project for environmental remediation. This appropriation also includes technical adjustments to debt service attributable to the City ($155,111) and to the Alexandria City Public Schools ($221,613). The remaining appropriation provides funding the increased cost of outside counsel in the City Attorney’s office ($300,000), funds for legal assistance to City residents via the Office of Human Rights ($150,000), funding for expenditures that exceed current budget authority for snow response this winter ($500,000), and additional contingency audit funds for the Office of Internal Audit ($25,000).
Section 8. Transfer of Budget Authority Between Departments. This section shifts $650,199 in appropriated General Fund resources from the Office of Housing ($26,006) and from the Department of Transportation & Environmental Services ($624,193) to the Department of Planning & Zoning in support of the One Start program which is intended to streamline review and approval of private development projects in the City.
Section 9. Appropriation of Capital Project Funds from Private Contributions and Other Revenue. This section appropriates a net total of $14,757,556 from various revenue sources to fund projects in the Capital Improvement Program. This section includes appropriation of capitalized interest proceeds to the Landmark Redevelopment project as well as cash capital for environmental remediation ($500,000). This appropriation increases budget authority in the City Hall Renovation project to expand and permanently relocate the Permit Center to the Del Pepper Community Resource Center ($2,334,789) and for a new grant for Duke Street Transit Corridor Planning ($550,000). This section also includes reductions in grant appropriations for the East Glebe Road & Route 1 project and the Old Cameron Run Trail Project, offset by increases in grant appropriations for the Eisenhower Broadband Communications Link project and the Rideshare/GO Alex program.
Section 10. Appropriation of Stormwater Fund Balance. This appropriation of $24,953 is a technical adjustment to debt service attributable to the Stormwater Fund.
Section 11. Appropriation of Equipment Replacement Fund Balance. This appropriation includes $1,631,927 in Equipment Replacement Reserve funds to purchase Fire Department light duty replacement vehicles, three (3) replacement refuse trucks for the Department of Transportation & Environmental Services, and replacement vehicles for the Sheriff’s Office, the Department of General Services, the Department of Community & Human Services, and the Department of Recreation, Parks & Cultural Services.
FISCAL IMPACT: The 11 sections of the ordinance appropriate a total of $36,488,035 as follows:
Section 1. Appropriation of Housing Trust Fund Revenues Received
but not Appropriated in FY 2025. $ 2,516,851
Section 2. Appropriation of NVTA Revenues Authorized but not
Appropriated in FY 2025. $ 1,642,000
Section 3. Appropriation of Grant Revenues Authorized and Adjusted
but not Appropriated in Fiscal Year 2025. $ 5,112,124
Section 4. Appropriation of Donations and Other Special Revenues
Received but not Appropriated in Fiscal Year 2025. $ 3,070,554
Section 5. Appropriation of Other Special Revenues - Seized Assets
Received but not Appropriated in Fiscal Year 2025. $ 493,200
Section 6. Appropriation of General Fund Revenue. $ 5,387,146
Section 7. Appropriation of General Fund Balance. $ 1,851,724
Section 8. Transfer of Budget Authority Between Departments. $ 0
Section 9. Appropriation of Capital Project Funds from Private
Contributions and Other Revenue. $ 14,757,556
Section 10. Appropriation of Stormwater Fund Balance. $ 24,953
Section 11. Appropriation of Equipment Replacement Fund Balance. $ 1,631,927
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2025 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2025 Appropriation
Attachment 3: Listing of Fiscal Year 2025 City of Alexandria Grant Adjustments
STAFF:
Morgan Routt, Budget Director, Office of Management and Budget
Amanda Hamm, Assistant Director, Office of Management and Budget
Meghan McGrane, Budget Analyst, Office of Management and Budget
Laura Gates, Deputy Finance Director