City of Alexandria, Virginia
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MEMORANDUM
DATE: NOVEMBER 20, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: MORGAN ROUTT, DIRECTOR OF MANAGEMENT AND BUDGET
DOCKET TITLE:
TITLE
Consideration of a Resolution to Establish FY 2026 Budget Guidance. [ROLL-CALL VOTE].
BODY
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ISSUE: Consideration of a Resolution to Establish FY 2026 Budget Guidance.
RECOMMENDATION: That City Council adopt the FY 2026 Budget Guidance Resolution (Attachment). This resolution will provide guidance to the City Manager to be used in the preparation of the Proposed FY 2026 Operating Budget and Proposed FY 2026 to FY 2035 Capital Improvement Program to be presented on February 25, 2025, for City Council consideration.
BACKGROUND: The attachment in this docket reflects guidance adopted in prior resolutions, updated with FY 2026 budget development information. The City Council Retreat will be held on November 23, 2024, at which time staff will present an economic outlook and estimated budget gap for FY 2026 not including supplemental funding requests from departments and other agencies, or capital project increases beyond the current funding plan.
DISCUSSION: City Council has since the FY 2007 budget process annually adopted a resolution that provides the City Manager with guidance for the preparation of the forthcoming budget and 10-year Capital Improvement Program. The proposed Budget Guidance Resolution for the FY 2026 Operating Budget and FY 2026 to FY 2035 Capital Improvement Program reflects many of the same principles and features as the FY 2025 Council adopted Budget Guidance Resolution with the following changes:
• Limiting operating budget growth for city departments, Alexandria City Public Schools (ACPS), and other partner agencies to no more than two percent over current budgets.
• The City Manager shall develop options for recommended funding of proposed public school capital needs for the FY 2026 - FY 2035 time period that does not exceed the levels of- or timing of funding for school capital needs that was included in the previously approved FY 2025 - FY 2034 City Council capital improvement program. The City Manager may recommend reductions or deferrals to these previously approved funding levels, in consultation with Schools’ staff, that reflect the readiness of previously planned projects.
As always, staff will seek to absorb as many cost increases as possible by identifying efficiencies, increasing cost recovery, and reducing lower priority services to fund higher priority needs. The reduction options may contain service reductions and program cuts or eliminations which will be selected based on City priorities. The flexibility to consider a real estate tax rate increase would provide greater opportunity to prioritize and minimize service eliminations while also addressing unmet or underserved needs.
FISCAL IMPACT: None.
ATTACHMENTS:
1. FY 2026 General Fund Operating Budget and Capital Improvement Program for FY 2026 to FY 2035 Budget Guidance Resolution.
STAFF:
Amanda Hamm, Assistant Director, Management and Budget.