City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 6, 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 Appropriations for the Support of the City Government for Fiscal Year 2024.
BODY
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ISSUE: Consideration of an Appropriation Ordinance to make appropriations for the support of the government of the City of Alexandria, Virginia, for the Fiscal Year (FY) 2024.
RECOMMENDATION: That City Council approve the proposed Appropriations Ordinance for Fiscal Year 2024 (Attachment 2) reflecting $1,914,874,940 in total appropriations on first reading, and schedule it for second reading, public hearing and final passage on Saturday, June 17, 2023.
DISCUSSION: On May 3, 2023, City Council adopted the FY 2024 Budget and adopted an ordinance setting the City’s real property and personal property tax rate for calendar year (CY) 2023. 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). 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 2024 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 the expenditures and revenues net of Interfund Transfers. The total appropriation of $1,899,437,940, net of $473,123,692 in Interfund Transfers (in order to not double count) equals $1,426,314,248.
REAPPROPRIATION OF PROJECTED ENCUMBRANCES: Section 10 of the attached proposed appropriation ordinance reappropriates monies authorized and expected to be obligated in FY 2023 but not expected to be expended as of June 30, 2023. 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 2023 into FY 2024 may be lower than this amount. The final encumbrance amount that is carried over into FY 2024 will be reduced to reflect actual authorized encumbrances.
FISCAL IMPACT: This ordinance authorizes the receipt and expenditure of $1,914,874,940 for FY 2024 in the following sections: $1,899,437,940 in Sections 1 through 9 and $15,437,000 in Section 10):
Section 1 to Section 9
General Fund $ 884,328,028
Special Revenue Fund 140,249,094
Affordable Housing Fund 11,716,446
Sewer Special Revenue Fund 18,757,328
Stormwater Special Revenue Fund 18,750,000
Potomac Yard Fund 22,327,441
Northern Virginia Transportation Authority Fund 36,290,971
Capital Projects Fund 360,788,867
Equipment Replacement Internal Service Fund 5,638,751
Alexandria City Public Schools 359,898,061
Library Fund 8,991,005
Alexandria Transit Company 31,701,948
Less: Interfund Transfers ( 473,123,692)
Total $ 1,426,314,248
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, 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 total appropriation of $359,898,061 million to the ACPS includes $329,446,411 million of operating funds, $17,850,779 million for grants and special projects and $12,600,871 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 $15,437,000 of General Fund Balance as the maximum monies estimated to be encumbered as of June 30, 2023. This is a high end estimated amount which likely will be lowered in the first few months of FY 2024 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, 2023 $ 15,437,000
Total $ 15,437,000
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:
Morgan Routt, Director of Management & Budget
Emily Poly, Budget/Management Analyst