City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 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:
TITLE
Consideration of the Monthly Financial Report for the Period Ending December 31, 2025.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending December 31, 2025.
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 December 31, 2025, General Fund revenues totaled $455.4 million, a decrease of -$0.8 million, or -0.2 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 December, we are on target for Real Estate, tracking to the same percentage as collected in FY 2025.
Personal Property tax revenue is due in October each year. As noted during the City Council retreat, Personal Property tax levy is lagging in FY 2026, consistent with the flattening of the vehicle growth. Revenue from Use of Money and Property reflects a decrease of $4.5 million compared to the prior year due to the recent interest rate reductions by the Federal Reserve. The reduction was anticipated in the FY 2026 budget. 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 are trending negative as the combined growth rate has flattened. Year-to-date receipts through December show a cumulative growth rate of -1.89% thus far for the Meals Tax, Transient Lodging Taxes, and Local Sales Tax.
As of December 31, 2025, General Fund expenditures totaled $303.9 million, a decrease of
-21.1%, but this is solely due to a timing difference in the transfer to Schools last year. Aside from this, expenditures are tracking slightly ahead of last year’s pace.
ATTACHMENTS:
Attachment 1: Comparative Statement of General Fund Revenues
Attachment 2: Comparative Statement of General Fund Expenditures
Attachment 3: Comparative Consumption Spending
Attachment 4: Investment Report
STAFF:
Morgan Routt, Director, Office and Management and Budget