City of Alexandria, Virginia
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MEMORANDUM
DATE: NOVEMBER 5, 2014
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER/s/
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Consideration of the Monthly Financial Report for the Period Ending September 30, 2014.
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ISSUE: Receipt of the Monthly Financial Report for the period ending September 30, 2014.
RECOMMENDATION: That City Council receives the Monthly Financial Report (Attachment 1).
BACKGROUND: The following discussion is a summary of the Monthly Financial Report for this period. The complete report is attached.
DISCUSSION: At the end of the first quarter of FY 2015, year-to-date General Fund revenues and expenditures were similar to the four-year average of percent of budget collected and spent.
As of September 30, 2014, actual General Fund revenues totaled $56.1 million, or 8.8% of budgeted revenues, which is 1% less than the four-year average. Through the first quarter of the fiscal year the City's revenue categories remain fairly flat. Vehicle and Business Personal Property taxes were due in early October. The Monthly Financial Report presented to City Council in December will provide the first insight into property tax collections for FY 2015.
As of September 30, 2014, General Fund expenditures totaled $139.7 million, or 21.9% of budgeted expenditures. Compared to the 4-year average at this point in the year, the City spent only 0.4% more of its budget in FY 2015 than in the past. Non-personnel expenditures were slightly higher than they have been in the past, but this was offset by lower personnel expenditures.
Earlier this month, the Governor announced that total Commonwealth General Fund revenue collections increased by 5.3% in September, with individual income taxes, sales taxes, and corporate income taxes accounting for an increase of $81.3 million compared to September 2013. Fiscal year-to-date revenue collections increased by 6.7%, or $250.3 million in September, ahead of the annual estimate of 2.9% growth. It is too early to determine if an increase in State sales tax revenues will correlate to an increase in City sales tax revenues. Furthermore, an increase in State revenues does not necessarily mean restoration of funds to localities (the August Monthly Financial Report detailed how State aid to the City has been reduced by $863,000). Staff will continue to monitor State revenues throughout the course of the Fiscal Year and provide regular updates.
The economic indicator detailed this month is the City's transient lodging tax receipts. According to Smith Travel Research, via the Alexandria Convention and Visitors Association (ACVA), when comparing year-to-date occupancy and daily room rates through September, Alexandria's occupancy rate increased from 71.6% to 76.0%, while the average daily room rate increased from $129 to $138 or 7 percent. This trend bodes well for travel and tourism revenue for the City moving forward and suggests that the low room rates characteristic of last year are not a concern at this point in time. Additional economic, revenue, and expenditure charts are also available on the City of Alexandria website at:
ATTACHMENTS:
Attachment 1: September 2014 Monthly Financial Report
STAFF:
Nelsie L. Birch, Director, Office of Management and Budget (OMB)
Morgan Routt, Assistant Director, OMB
Kendel Taylor, Acting Director, Finance Department
Berenice Harris, Acting Comptroller, Finance Department
Martina Alexander, Tax Services and Enforcement Supervisor, Finance Department
Alyssa Ha, Budget/Management Analyst, OMB