City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 4, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KENDEL TAYLOR, INTERIM DEPUTY CITY MANAGER
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 2023.
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ISSUE: Consideration of a Supplemental Appropriation Ordinance to amend Fiscal Year 2023 Appropriation.
RECOMMENDATION: That City Council adopt this proposed Supplemental Appropriations Ordinance totaling $3,075,618 (Attachment 2) on first reading on Tuesday, April 11, 2023, and schedule it for second reading, public hearing and final passage on Saturday, April 15, 2023.
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 2023 Approved Operating Budget. Where significant, staff has described how the funding change will impact services.
Staff recommends that the Fiscal Year (FY) 2023 Appropriation be amended to accomplish the following purposes:
Section 1. Appropriation of Equipment Replacement Fund Balance to purchase City vehicles. This appropriation includes a total of $1,000,000 of Equipment Replacement Reserve funds to purchase replacement vehicles. This appropriation will ensure that funds are appropriated in FY 2023 for planned vehicle replacement. Due to supply chain issues that have severely impacted the time frame for vehicle replacement and appropriation authority has lapsed for planned purchases.
Section 2. Appropriation of Grant Revenues Authorized and Adjusted but not Appropriated in FY 2023. 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 $1,061,321.
Section 3. Appropriation of Donations and Other Special Revenues Received but not Appropriated in the FY 2023 Operating Budget. This appropriation of $825,935 in donations and other special revenue reflects several adjustments of donations and other special revenue in the Office of Historic Alexandria, the Department of Recreation, Parks, and Cultural Activities, the Department of Transportation and Environmental Services and the Office of the Sheriff to bring budget authority in line with revenues received in FY 2023.
Section 4. Transfer of Budget Authority Between Departments. The FY 2023 Approved Budget is being adjusted to account for several transfers across departments. Several authorized programs were budgeted on a contingent basis in Non-Departmental ($1.85 million for the Office of Climate Action, $60,000 to study Out of School Time initiatives) and are being transferred to the City Manager’s Office for execution. In addition, the Office of Organizational Excellence has been structurally reorganized. Funds are being appropriated to the Department of Human Resources. Finally, costs associated with outside attorneys to provide expertise to the City Attorney’s Office exceed the amount budgeted by $0.3 million and is being transferred at this time from available resources in Non-Departmental.
Section 5. Appropriation of General Fund Balance. This appropriation of $125,000 of Economic Development Incentive Funds will enable the City to comply with the terms of the performance agreement with Kearney and Company. The company has met all of the requirements of the agreement.
Section 6. Appropriation of Capital Project Funds from Intergovernmental Revenue, Rental Fees, and Developer Contributions. This appropriation totals $234,091 for various projects included in this ordinance.
FISCAL IMPACT: The six sections of the ordinance appropriate a total of $3,246,347 as follows:
Section 1. Appropriation of Equipment Replacement Funds. $ 1,000,000
Section 2. Appropriation of Grant Revenues Authorized and Adjusted but not
Appropriated in Fiscal Year 2023. $ 1,061,321
Section 3. Appropriation of Donations and Other Special Revenues
Received but not Appropriated in Fiscal Year 2023. $ 825,935
Section 4. Transfer of Budget Authority Between Departments. $ 0
Section 5. Appropriation of General Fund Balance. $ 125,000
Section 6. Appropriation of Capital Project Funds. $ 234,091
ATTACHMENTS:
Attachment 1: Ordinance Cover to Amend Fiscal Year 2023 Appropriation
Attachment 2: Ordinance to Amend Fiscal Year 2023 Appropriation
Attachment 3: Listing of Fiscal Year 2023 City of Alexandria Grant Adjustments
STAFF:
Morgan Routt, Budget Director, Office of Management and Budget
Amanda Hamm, Assistant Budget Director, Office of Management and Budget