City of Alexandria, Virginia
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MEMORANDUM
DATE: NOVEMBER 6, 2019
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Consideration of the Monthly Financial Report for the Period Ending September 30, 2019
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending September 30, 2019.
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. Schedules comparing revenues and expenditures to date to the same period in
FY 2019 are attached.
At this time in FY 2020, the City’s revenue and expenditures are not noticeably different than the same time period last year. As of September 30, 2019, General Fund revenues totaled $64.9 million, a decrease of $7.5 million or 10.3% below revenues collected at the same time in
FY 2019. Through the first quarter, approximately 8.4 percent of budgeted revenues have been collected. Revenues may not track consistently with the calendar since many revenue sources have due dates that do not occur evenly through the year. Large revenue sources, such as real estate and personal property tax revenues are remitted twice per year and once per year, respectively. Through the first quarter of the fiscal year, no category has sufficient receipts to provide evidence of any change in projected economic condition or forecast. Personal property taxes were due on October 5th. Next month’s report should show a significant revenue increase to reflect the budgeted rate increase that eliminated the Motor Vehicle License Tax. The second half of the calendar year real estate tax is due on November 15th. Most variances are due to payment timing issues which can vary from year to year.
As of September 30, 2019, General Fund expenditures totaled $158.0 million, an increase of $2.7 million over the same time period for FY 2019. Similar to the situation with revenues, no significant unexpected revenue variance or expenditure has occurred in the first quarter of Fiscal Year 2020 that is unbudgeted or unexpected. The most significant difference is the timing and source of payments. The most significant timing variance occurred in the Department of Information Technology Services. Enterprise-wide software license costs increased with the new three-year contract that took effect for this fiscal year. The costs for the year were paid in full in FY 2020. In FY 2019, the contribution to WMATA included a greater portion of General Fund resources than the contribution budgeted for FY 2020. In addition, the City’s cost for WMATA reflects a 27% increase.
Quarterly Short-Term Investment Report:
The City’s short-term cash investments are actively reviewed and monitored so that the investment portfolio is consistent with City Council’s adopted investment policy. Staff annually provides the status of the City’s investments in the Comprehensive Annual Financial Report. Attachment 3 provides a description of the various investments as well as a chart showing the distribution. The City’s return on investment for FY 2019 was 2.7% and resulted in $7.2 million in General Fund Revenue. Through the first quarter of FY 2020 the City has earned $1.7 million with a weighted average yield of 2.25% which reflects Federal Reserve rate decreases and general overall market conditions.
ATTACHMENTS:
Attachment 1 - Comparative Expenditure Schedule for September 30, 2019
Attachment 2 - Comparative Revenue Schedule for September 30, 2019
Attachment 3 - Investment Portfolio as of September 30, 2019
STAFF:
Laura Triggs, Deputy City Manager
Kendel Taylor, Director, Finance Department
Morgan Routt, Director, OMB