City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 7, 2021
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Make Supplemental Appropriations for the Support of the City Government for Fiscal Year 2022.
BODY
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ISSUE: Consideration of a Reappropriation Ordinance to amend Fiscal Year 2022 Appropriation.
RECOMMENDATION: That City Council pass this proposed ordinance (Attachment 2) on first reading on Tuesday, December 14, 2021, and schedule it for public hearing, second reading, and final passage on December 18, 2021.
DISCUSSION: Each year, City staff submits a Reappropriation Ordinance to City Council to reappropriate certain monies authorized by City Council in the prior fiscal year but not expended as of June 30. By City Charter, all appropriations lapse at the end of the fiscal year. When budgeted goods and services are ordered prior to the end of the previous fiscal year, but not delivered until the next fiscal year, monies need to be reappropriated to cover the expenditures paid in the current fiscal year. The various sections throughout this document provide spending authority in the current fiscal year for projects and initiatives already established by City Council.
In addition to encumbered or obligated funds, the ordinance establishes budget authority in the current year for revenues received in the current or prior year that have not been appropriated. When 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 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 FY 2022 Approved Operating Budget. Where significant, staff have described how the funding change will impact services. Attachment 4 provides a list of incomplete projects and other one-time expenditures that will be funded with FY 2021 savings.
Staff recommend that the Fiscal Year (FY) 2022 Appropriation be amended to accomplish the following purposes:
Section 1. Reappropriation of Equipment Replacement Reserve Fund Balance to pay for commitments, in the form of encumbrances, established prior to June 30, 2021, but not paid by that date. This appropriation includes encumbrances totaling $3,597,568 of Equipment Replacement Reserve Fund obligations (primarily for vehicles and equipment ordered in FY 2021 but not delivered until FY 2022).
Section 2. Reappropriation of Component Unit funds - ACPS. This appropriation includes $1,995,995 in budget authority in several programs for the Alexandria City Public Schools. These funds were encumbered at the end of FY 2021, but the payments will be made in FY 2022. This will provide the necessary budget authority in FY 2022. These are Special Revenue Funds for the ACPS, not additional City General Fund appropriation.
Section 3. Reappropriation of Alexandria Transit Company funds. This appropriation includes $128,536 in budget authority in several programs for the Alexandria Transit Company. These funds were encumbered at the end of FY 2021, but the payments will be made in FY 2022. This will provide the necessary budget authority in FY 2022.
Section 4. Reappropriation of revenues received but not appropriated. This appropriation includes program income, loan repayments and Housing Trust Funds in the amount of $1,799,900.
Section 5. Reappropriation of revenues received but not appropriated. This appropriation includes external grant funds in the amount of $3,868,652, including approximately $1.7 million in federal Home Rehabilitation Loan Program funds carried over from FY 2021 and $1.3 million in Housing Opportunities Funds from the US Department of Housing and Urban Development. Reappropriated revenues will be used for loan and rehabilitation programs and other affordable housing initiatives.
Section 6. Reappropriation of funds to the Alexandria Transit Company. This appropriation includes $25,572 in budget authority for the Alexandria Transit Company (DASH) for external grants which were received in FY 2021 but not fully expended in that fiscal year. This will provide the necessary budget authority in FY 2022.
Section 7. Appropriation of grant revenues authorized and adjusted but not appropriated in FY 2022. The $3,403,186 in grants in this section reflect grant revenues that are included as estimates in the current year budget that are being adjusted to reflect the actual award, as well as new grants. New grant applications are approved by City Council. Where applicable, the date of the City Council meeting is included in the comments, as well as how the funds will be utilized. A listing of grants is included (Attachment 3).
Section 8. Appropriation of Component Unit funds - ACPS. This appropriation includes $54,399,596 in external grant awards for the Alexandria City Public Schools. These funds arise from external grants awarded since the beginning of FY 2022. These are external grant funds for the ACPS, not additional City General Fund appropriation.
Section 9. Appropriation of funds to the Alexandria Transit Company. This appropriation includes $9,844,000 in funds to the Alexandria Transit Company (DASH), consisting of $9,634,000 in newly awarded external grants and a $210,000 transfer from the General Fund. Notably this includes $9,384,000 from the I-395 Commuter Choice program which is funding significant frequency improvements on DASH Lines 35 and 36, as part of the New DASH Network which launched in September 2021. These grants are detailed on Attachment 3.
Section 10. Appropriation of Donations and Other Special Revenues received but not appropriated in the FY 2022 Operating Budget. This section appropriates $190,532 in donations and other special revenue received, but not appropriated in FY 2022, in the Police Department, Department of Community and Human Services, and the Office of Historic Alexandria. The most significant adjustments are in the Office of Historic Alexandria to recognize and appropriate $128,000 in donations which will fund conservation and maintenance activities at its museums and fund the George Washington Birthday Celebration Committee.
Section 11. Appropriation of Other Special Revenues received but not appropriated in the FY 2022 Operating Budget. Several of the City’s Public Safety and Justice Agencies receive funds in the form of Seized Assets. This appropriation of $76,956 in seized assets for the Commonwealth’s Attorney’s Office will be used to purchase supplies and equipment.
Section 12. Appropriation of General Fund Revenue. This section increases the total appropriation in the General Fund by $677,809, recognizing intergovernmental state revenue from several sources. This includes $329,409 in estimated state reimbursement for FY 2022 pay initiatives for the Sheriff’s Office and $114,000 in funding for the Alexandria Health Department. Health Department funds arise from the FY 2021 Year End Settlement (unexpended City matching funds returned to the locality) which will be used to support vaccination efforts to combat the COVID-19 pandemic.
Section 13. Appropriation of Component Unit Funds - Alexandria Libraries. This appropriation of $133,597 for the Alexandria Libraries recognizes additional state revenue provided above the amount included in the FY 2022 Approved Operating Budget as well as a $123,968 transfer from the General Fund for security guard services.
Section 14. Appropriation of American Rescue Plan Act Funds. This section appropriates $1,832,182 in American Rescue Plan Act funds that were set aside by City Council in July 2021 to be used for City-wide General COVID expenses, response, and grant administration.
Section 15. Appropriation of General Fund Balance. This appropriation of $16,414,207 will fund $9.2 million in projects that were not complete at the end of FY 2021 or projects for which the identified funding is FY 2021 savings, and $7.2 million for city employee pay initiatives prioritized but not funded in FY 2021 for which FY 2021 savings were assigned. Attachment 4 details the projects that are being funded.
Section 16. Appropriation of Special Revenue Fund Balance. This appropriation of $1,250,000 of Northern Virginia Transportation Authority (NVTA) Fund Balance will partially fund the I-395 ramp at Duke Street project engineering.
Section 17. Appropriation of Capital Project Fund budget authority from Assigned General Fund Balance, Special Revenue Fund Balance, and developer contributions. This appropriation totals $4,554,000 for the specific projects included in the ordinance. The largest project appropriates $1,250,000 in NVTA Fund Balance and $380,000 in Assigned General Fund Balance for the I-395 ramp at Duke Street project. This section also includes an appropriation of fund balance to address market cost escalation on several projects.
Section 18. Appropriation of Special Revenue Funds. This appropriation of $233,250 will provide budget authority for a project conducted by the Department of Community and Human Services to advance racial equity in child welfare services as well as transportation project staffing. The sources of these funds are interfund transfers from the General Fund and Capital Projects Fund.
Section 19. Appropriation of Equipment Replacement Fund Balance. This appropriation of $833,232 will provide budget authority for vehicle purchases by the Fire and Police Departments.
FISCAL IMPACT: The nineteen sections of the ordinance appropriate a total of $105,258,770 as follows:
Section 1. Reappropriation of monies encumbered as of June 30, 2021. $ 3,597,568
Section 2. Reappropriation of Component Unit Funds - ACPS $ 1,995,995
Section 3. Reappropriation of Funds - Alexandria Transit Company $ 128,536
Section 4. Reappropriation of Affordable Housing Funds. $ 1,799,900
Section 5. Reappropriation of grant revenues authorized and adjusted but not $ 3,868,652
appropriated in Fiscal Year 2022.
Section 6. Reappropriation of Grant Funds - Alexandria Transit Company $ 25,572
Section 7. Appropriation of grant revenues authorized and adjusted but not $ 3,403,186
appropriated in Fiscal Year 2022.
Section 8. Appropriation of Component Unit Funds - ACPS $ 54,399,596
Section 9. Appropriation of Funds - Alexandria Transit Company $ 9,844,000
Section 10. Appropriation of residual balances in accounts to be funded from $ 190,532
donations, fees, and other special revenue.
Section 11. Appropriation of residual balances in accounts to be funded $ 76,956
from seized assets.
Section 12. Appropriation of General Fund Revenues $ 677,809
Section 13. Appropriation of Component Unit Funds - Libraries $ 133,597
Section 14. Appropriation of American Rescue Plan Act Funds $ 1,832,182
Section 15. Appropriation of General Fund Balance $ 16,414,207
Section 16. Appropriation of Special Revenue Fund Balance $ 1,250,000
Section 17. Appropriation of Capital Improvement Program Funds $ 4,554,000
Section 18. Appropriation of Special Revenue Funds $ 233,250
Section 19. Appropriation of Equipment Replacement Funds $ 833,232
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2022 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2022 Appropriation
Attachment 3: Listing of Fiscal Year 2022 City of Alexandria Grant Adjustments
Attachment 4: Listing of Fiscal Year 2022 Incomplete Projects
STAFF:
Laura Triggs, Deputy City Manager
Kendel Taylor, Finance Director
Morgan Routt, Budget Director, OMB