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File #: 20-0821    Name: FY 2021 Appropriation Ordinance
Type: Ordinance Status: Agenda Ready
File created: 4/16/2020 In control: City Council Legislative Meeting
On agenda: 6/9/2020 Final action:
Title: Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Make Appropriations for the Support of the City Government for Fiscal Year 2021.
Attachments: 1. 20-0821_Att 1 - FY 2021 Appropriation Ordinance Cover, 2. 20-0821_Att 2 - FY 2021 Ordinance, 3. 20-0821_Att 3 - Table I - 2021 Appropriations by Department and Fund - Approved, 4. 20-0821_Att 4 - Table II - 2021 Sources of Revenue - Approved

City of Alexandria, Virginia

________________

 

MEMORANDUM

 

 

DATE:                     JUNE 3, 2020

 

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 Appropriations for the Support of the City Government for Fiscal Year 2021.

BODY

_________________________________________________________________

 

ISSUEConsideration of an Appropriation Ordinance to make appropriations for the support of the government of the City of Alexandria, Virginia, for the Fiscal Year (FY) 2021.

 

RECOMMENDATION:  That City Council adopt the proposed Appropriations Ordinance for Fiscal Year 2021 (Attachment 2) on first reading, and schedule it for second reading, public hearing and final passage on Saturday, June 20, 2020.

 

DISCUSSIONOn April 29, 2020, City Council adopted the FY 2021 Budget and adopted an ordinance setting the City’s real property and personal property tax rate for calendar year (CY) 2020. In accordance with sections 6.07 and 6.14 of the City Charter, an annual ordinance is also required to appropriate the Approved Operating and Capital Budgets. This ordinance is always scheduled for June City Council consideration. This ordinance contains the appropriation of the Adopted Operating Budget, the reappropriation of expected encumbrances, and an appropriation from the Special Revenue Fund for new grants. This ordinance also reflects the Approved Budget of the Alexandria City Public Schools (ACPS), set for adoption by the School Board on June 4. Any changes or amendments adopted by the School Board in the Final Budget will be brought to City Council for appropriation in the Fall.

 

ADOPTED OPERATING BUDGET:  Sections 1 through 9 of the attached proposed appropriation ordinance legally establishes the revenues and expenditures of the FY 2021 budget. As detailed in Section 7 of the attached ordinance, a significant portion of the General Fund’s revenues are transferred to other funds and component units, principally to finance operations of the Alexandria City Public Schools. In addition, the total expenditure appropriation is reduced by the amount of these transfers (referred to as “Interfund Transfers”) to eliminate double counting and accurately reflect the aggregate expenditure appropriations. Table I, which is attached to the ordinance, provides the detailed breakdown for all funds for each department and component unit. Table II, which is also attached to the ordinance, provides the detailed revenue estimate for all funds by the major sources of revenue. Both tables reflect expenditures and revenues net of Interfund Transfers. The total appropriation of $1,504,832,558, net of $386,339,384 in Interfund Transfers equals $1,118,493,174.

 

REAPPROPRIATION OF PROJECTED ENCUMBRANCES:  Section 10 of the attached proposed appropriation ordinance reappropriates monies authorized and expected to be obligated in FY 2020 but not expected to be expended as of June 30, 2020. 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 one 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. As introduced in 2006, encumbrances are now authorized based on estimates of preliminary encumbrances. The actual encumbrance amount that is carried over from FY 2020 into FY 2021 may be lower than this amount. The final encumbrance amount that is carried over into FY 2021 will be reduced to reflect actual authorized encumbrances.

 

FISCAL IMPACT This ordinance authorizes the receipt and expenditure of $1,513,634,558 for FY 2021 in the following sections $1,504,832,558 in Sections 1 through 9 and $8,802,000 in Section 10):

 

Section 1 to Section 9

 

                     General Fund                     $ 753,276,147

                     Housing Special Revenue Fund                     6,762,217

                     Special Revenue Fund                     124,005,524

                     Sewer Special Revenue Fund                     15,359,412

                     Stormwater Special Revenue Fund                     8,213,842

                     Potomac Yard Fund                     14,035,351

                     Northern Virginia Transportation Authority Fund                     21,742,497

                     Capital Projects Fund                     205,803,815

                     Equipment Replacement Internal Service Fund                     7,909,969

                     Alexandria City Public Schools                     317,259,118

                     Library Fund                     7,768,466

                     Alexandria Transit Company                     22,696,200

                     Less:  Interfund Transfers                        (  386,339,384)

                     Total                     $ 1.118.493.174

 

 

The amounts listed for the Alexandria Transit Company, the Schools, and the Library represent their total budgets, including the City’s General Fund appropriation to each agency and any fee revenue (such as farebox revenue for the Alexandria Transit Company), grants, State aid or other revenues that are part of the total budgets. By the City Charter, Council must appropriate all monies, including those for the Alexandria Transit Company, Alexandria City Public Schools, irrespective of the source. The appropriation to the ACPS includes $289.9 million of operating funds, $16.4 million for grants and special projects and $11.0 million for the School Lunch Fund.  The “Less: Interfund Transfers” line backs out dollars counted in more than one fund. The attached tables show revenues and expenditures by department and fund, net of interfund transfers. 

 

Section 10

 

The reappropriation of $8,802,000 of General Fund Balance as the maximum monies estimated to be encumbered as of June 30, 2020. This is a high end estimated amount which likely will be lowered in the first few months of FY 2020 to the actual encumbrance need. By obtaining an estimated authorized amount by July 1, clearer internal budget management is facilitated.  

 

   Reappropriation of monies encumbered as of June 30, 2020                     $   8,802,000

                     

   Total                                          $   8,802,000

 

ATTACHMENTS: 

 

Attachment 1 - Appropriation Ordinance Cover

Attachment 2 - Appropriation Ordinance

Attachment 3 - Table I - Expenditures by Department or Component Unit by Fund

Attachment 4 - Table II - Sources of Revenue

 

STAFF:

Laura Triggs, Deputy City Manager

Kendel Taylor, Director of Finance

Morgan Routt, Director of Management & Budget