City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 28, 2016
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 August 31, 2016.
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ISSUE: Receipt of the Monthly Financial Report for the Period Ending August 31, 2016.
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.
FY 2016: The unaudited preliminary estimate for FY 2016 General Fund revenues is $667.0 million. At the same time, FY 2016 expenditures, encumbrances and carryover projects are projected to total $659.6 million, enabling the City to end the year with a small surplus generated from the expenditure savings, as well as the 3-cent increase in the 2016 real estate tax rate (which was effective with the June 2016 first-half real estate tax payment). The additional real estate tax revenues generated in FY 2016 were allocated in the FY 2017 budget process towards City capital projects ($4.3 million), economic development incentive funding ($0.6 million), as well as Affordable Housing Trust Fund monies generated by the National Science Foundation project real estate taxes ($0.5 million). The bottom line is that an approximate $2.0 million surplus results, which will be designated towards the FY 2018 operating and/or capital budget. The FY 2016 overall financial results will enable the City to maintain its reserve requirements as delineated by the City’s financial policies and as expected by the bond rating agencies.
FY 2017: Through the first two months in FY 2017, the City’s revenue and expenditures are not noticeably different than the same time period last year. As of August 31, 2016, General Fund revenues totaled $29.4 million, a decrease of $4.6 million or 13.5% below the revenues collected at the same time in FY 2016. After adjusting to exclude $10.6 million debt proceeds received through the bond refinancing in the early part of FY 2016, the City received $6.0 million or 25.6% more revenue in this fiscal year than last year at the same time. This is entirely due to the timing of payments received and does not provide any economic indicator.
As of August 31, 2016, General Fund expenditures totaled $88.6 million, compared to $99.6 million over the same time period for FY 2016. After adjusting for expenditures related to the bond refinancing that was done in FY 2016 in the beginning of the fiscal year, the City spent $89.2 million through the first two months of FY 2016. Through the first two months of
FY 2017, which equates to 16.7 percent of the fiscal year, the City has expended 13 percent of the budgeted amount. Personnel expenditures are less than one percent lower through the same period in FY 2016.
ATTACHMENTS:
Attachment 1: Comparative Statement of General Fund Revenues
Attachment 2: Comparative Statement of General Fund Expenditures
STAFF:
Laura Triggs, Deputy City Manager
Kendel Taylor, Director, Finance Department
Morgan Routt, Director, Office and Management and Budget