City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 9, 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
Introduction and First Reading. Consideration of Passage on First Reading of an Ordinance to Make Supplemental Appropriations for the Support of the City Government for Fiscal Year 2026.
BODY
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ISSUE: Consideration of a Supplemental Appropriation Ordinance to amend Fiscal Year 2026 appropriations, and a resolution affirming an unencumbered appropriation transfer (formerly referred to as Advanced Funding Authority (AFA)).
RECOMMENDATION: That City Council approve the resolution affirming the snow/ice emergency transfer (Attachment 4); and, adopt the proposed Supplemental Appropriation Ordinance totaling $31,654,091 (Attachment 2) on first reading on Tuesday, April 14, 2026, and schedule it for second reading, public hearing, and final passage on Saturday, April 18, 2026.
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 FY 2026 Approved Operating Budget. Where significant, staff has described how the funding change will impact services.
Staff recommends that the FY 2026 Appropriation be amended to accomplish the following purposes:
Section 1. Appropriation of Equipment Replacement Reserve Fund Balance to pay for replacement vehicles per City asset management schedule. This appropriation includes $599,071 of Equipment Replacement Reserve Fund previously appropriated but unspent in FY25 and not encumbered for carryover into FY26.
Section 2. Appropriation of Stormwater Fund Balance. This appropriation of $23,664 is a technical adjustment to debt service attributable to the Stormwater Fund.
Section 3. Appropriation of grant revenues authorized and adjusted but not appropriated in FY 2026. The $1,290,905 in grants in this section reflect new grant revenues as well as adjustments to estimated grant revenues in the current year budget to reflect actual award amounts. A listing of grants and their intended use is included (Attachment 3) with notation of City Council docket approval for new grant awards.
Section 4. Appropriation of Donations and Other Special Revenues received but not appropriated in the FY 2026 Operating Budget. This section appropriates $443,833 in donations and other special revenue received but not appropriated in FY 2026. This includes fee revenue from e-summons citations, donations related to an Adult Employment program, and appropriation of Special Welfare SSI funds. This section also appropriates federal seized asset funds to support an intelligence hub to enhance public safety during the FIFA World Cup.
Section 5. Appropriation of General Fund Balance. This appropriation of $12,717,039 includes adjustments to the FY 2026 Operating Budget, to include $11,000,000 for the January 2026 snow and ice emergency, technical adjustments to debt service for ACPS and Non-Departmental, City Attorney personnel and outside counsel support costs, increased funding for Legal Aid Justice Center, increased cost of City-wide Enterprise Software Services, and unanticipated Election costs. As of mid-March, the snow and ice invoices only totaled $9.7 million, but added flexibility is provided pending the receipt and reconciliation of all invoices. Pursuant to the authority granted by Council resolution 3353 on January 27, 2026, the City Manager approved an unencumbered appropriation transfer in late February to transfer funds from Capital Projects, Fund 59 to Fund 20, Other Special Revenue, in order to start paying outstanding invoices. A resolution affirming this transfer is provided as Attachment 4. The $11.0 million to be appropriated to Non-Departmental in the General Fund will be subsequently transferred to Fund 59, Capital Projects to replace the transfer made for the snow and ice expenditures.
Section 6. Appropriation of Capital Project Funds budget authority from Intergovernmental Revenue, grants, developer contributions, and a General Fund transfer. This net appropriation totals $16,562,723 for increases and decreases to the specific projects included in the ordinance.
Section 7. Transfer of Budget Authority Between Departments. This section shifts General Fund appropriations between departments, reallocating shared resources for Public Safety Mental Health Clinician services across departments.
Section 8. Appropriation of Component Unit Funds - Alexandria Library. This appropriation of $16,856 recognizes additional State Aid revenue received, but not yet appropriated.
FISCAL IMPACT: The eight sections of the ordinance appropriate a total of $31,654,091
as follows:
Section 1. Appropriation of Equipment Replacement Reserve Fund $ 599,071
Balance to pay for replacement vehicles per City asset
management schedule
Section 2. Appropriation of Stormwater Fund Balance $ 23,664
Section 3. Appropriation of grant revenues authorized and adjusted but not $ 1,290,905
appropriated in Fiscal Year 2026.
Section 4. Appropriation of Donations and Other Special Revenues $ 443,833
received but not appropriated in the FY 2026 Operating Budget
Section 5. Appropriation of General Fund Balance $12,717,039
Section 6. Appropriation of Capital Improvement Program Funds $16,562,723
Section 7. Transfer Between Departments $ 0
Section 8. Appropriation of Component Unit Funds - Alexandria Library $ 16,856
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2026 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2026 Appropriation
Attachment 3: Listing of Fiscal Year 2026 City of Alexandria Grant Adjustments
Attachment 4: Resolution Affirming February 2026 Transfer of Unencumbered Funds
STAFF:
Morgan Routt, Director, OMB
Amanda Hamm, Assistant Director, OMB
Meghan McGrane, Budget Analyst, OMB
Johanna Seltzer, Chief of Administration, Department of Finance