City of Alexandria, Virginia
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MEMORANDUM
DATE: MARCH 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 January 31, 2014.
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ISSUE: Receipt of the City's Monthly Financial Report for the period ending January 31, 2014.
DISCUSSION: That City Council receives the Monthly Financial Report for the period ending January 31, 2014.
ECONOMIC HIGHLIGHTS:
On February 15, President Obama signed a bill increasing the debt limit. The bill will allow the Treasury Department to borrow normally for another 13 months. This removes a source of uncertainty for the City's economy until the end of the 3rd quarter of the City's FY 2015.
Updated economic tables are now posted online at the City's web site: http://www.alexandriava.gov/FinancialReports.
REVENUE HIGHLIGHTS:
Year-to-Date Revenues: The revenue picture is largely unchanged from last month's report. As of January 31, 2014, actual General Fund revenues totaled $316.9 million, which is approximately $5.9 million or 1.8 percent less than the report for the same period last year. The decrease was due to a refinance of $19.3 million in City bonds to a lower interest rate in FY 2013. The bond proceeds are recognized as revenue at the time of the refinance and thus added to the FY 2013 revenue number. After adjusting for the bond refinance, through January, total revenues in FY 2014 increased by 4.4 percent or $13.4 million compared to FY 2013. The increase is due to higher real property tax collections from real estate tax rate increases ($10.6 million) and personal property tax rate increases ($3.4 million) and a $0.6 million decrease in all other revenue categories.
The City has set aside $1 million in fund balance to compensate for potential short-t...
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