City of Alexandria, Virginia
________________
MEMORANDUM
DATE: MARCH 31, 2021
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 Supplemental Appropriations for the Support of the City Government for Fiscal Year 2021.
BODY
_________________________________________________________________
ISSUE: Consideration of a Supplemental Appropriation Ordinance to amend Fiscal Year 2021 Appropriation.
RECOMMENDATION: That City Council adopt this proposed Supplemental Appropriations Ordinance totaling $59,020,071 (Attachment 2) on first reading on Tuesday, April 6, 2021 and schedule it for second reading, public hearing and final passage on April 17, 2021.
DISCUSSION: This ordinance establishes budget authority in the current year for revenues received in the current or prior year that have not been appropriated. When 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 2021 Approved Operating Budget. Where significant, staff has described how the funding change will impact services.
Staff recommends that the Fiscal Year (FY) 2021 Appropriation be amended to accomplish the following purposes:
Section 1. Appropriation of Equipment Replacement Fund Balance to purchase Fire Department vehicles. This appropriation includes a total of $618,194 of Equipment Replacement funds to purchase Fire Department replacement vehicles.
Section 2. Appropriation of grant revenues authorized and adjusted but not appropriated in FY 2021. The grants in this section reflect grant revenues that are included as estimates in the current year budget that are being adjusted to reflect the actual award, as well as new grants. New grant applications are approved by City Council. A listing of grants is included (Attachment 3) and totals $2,488,316.
Section 3. Appropriation of Donations and Other Special Revenues received but not appropriated in the FY 2021 Operating Budget. This de-appropriation of $78,591 in donations and other special revenue reflects a number of small adjustments of donations and other special revenue in the Office of Historic Alexandria, Recreation, and Community and Human Services to bring budget authority in line with revenues received in FY 2021.
Section 4. Appropriation of project budget authority of Capital Improvement Program funds. This appropriation totals $1,793,874. The specific projects that will be adjusted are included in the ordinance. The most significant adjustment will appropriate $1.7 million of additional Stormwater Utility Fee Revenue in the CIP. Recently City Council voted to increase the Stormwater Utility Fee in the current fiscal year from $140 to $210, which will result in increased revenue collected in June 2021. Projects that will be funded by this increased revenue are not currently budgeted in FY 2021. The remaining $133,120 for the Recreation Department will increase the budget authority to align the project with actual contributions received for public art acquisition.
Section 5. Transfer of Budget Authority Between Departments. The FY 2021 Approved Budget is being adjusted to account for General Fund programs being moved between departments such as the employee transit benefit program from T&ES to Human Resources, Pretrial and Probation from the Sheriff’s Office to a standalone unit within the Criminal Justice Services set of accounts, funding from WMATA savings to Community and Human Services to continue emergency response programs, and funds from Non-Departmental to the Circuit Court Judges for additional cleaning requirements due to Covid.
Section 6 The appropriation of General Obligation Bond Proceeds. This appropriation includes $49,887,196 in bond proceeds from the November bond refinancing.
Section 7. Reappropriation of Funds to the Alexandria Transit Company. This appropriation external funds in the amount of $1,059,000 to the Alexandria Transit Company (DASH) for grants and CARES revenue that were received but not yet appropriated. These grants are also described in Attachment 3.
Section 8. Appropriation of Stormwater Utility Funds. This appropriation of $2,109,765 will provide budget authority for additional stormwater revenue to be received from increasing the fee from $140 to $210 for the second half of the year. These funds will be used to support projects in the CIP as shown in Section 4.
Section 9. Appropriation of General Fund Revenue. This appropriation of $1,131,420 recognizes funding received during the year that is not restricted. In December 2020, City Council authorized the use $1.0 million of the City’s anticipated FEMA reimbursement for COVID-related expenditures that occurred in FY 2020 for continued food and eviction prevention programs in DCHS. The remaining $131,420 is insurance reimbursement funds that are paid to the City but owed to City partners.
Section 10. Appropriation of Component Unit Funds - Alexandria Libraries. This appropriation of $10,898 in budget authority for the Alexandria Libraries recognizes additional state revenue provide above the amount included in the
FY 2021 Approved Operating Budget.
FISCAL IMPACT: The ten sections of the ordinance appropriate a total of $59,020,071 as follows:
Section 1. Appropriation of Equipment Replacement Funds $ 618,194
Section 2. Appropriation of grant revenues authorized and adjusted but not $ 2,488,316
appropriated in Fiscal Year 2021.
Section 3. De-Appropriation of Budget Authority in
Donations and Other Special revenue Accounts $ (78,591)
Section 4. Appropriation of Capital Improvement Program Funds $ 1,793,874
Section 5. Transfer of Budget Authority Between Departments $ 0
Section 6. Appropriation of Bond Proceeds $ 49,887,196
Section 7. Reappropriation of Funds to the Alexandria Transit Company $ 1,059,000
Section 8. Appropriation of Stormwater Utility Funds $ 2,109,765
Section 9. Appropriation of General Fund Revenues $ 1,131,419
Section 10. Appropriation of Component Unit Funds - Libraries $ 10,898
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2021 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2021 Appropriation
Attachment 3: Listing of Fiscal Year 2021 City of Alexandria Grant Adjustments
STAFF:
Laura B. Triggs, Deputy City Manager
Kendel Taylor, Finance Director
Morgan Routt, Budget Director, OMB
Mayuri Middough, Division Chief, Finance Administration