City Council approves resolution streamlining budget transfer process
Mayor addresses 'inaccurate reporting' about routine fiscal practice grounded in City Charter
City Council unanimously approved a resolution Tuesday night that streamlines how the city manager can transfer funds between departments, a routine practice Mayor Alyia Gaskins said has been mischaracterized in recent reporting.
“There’s been some inaccurate reporting about the purpose of this particular item,” Gaskins said before pulling the item from the consent agenda for discussion. “This is not a new practice. This is a critical function of city government.”
The resolution, grounded in Section 5.07 of the City Charter, affirms the city manager’s existing authority to transfer unencumbered funds within a department’s accounts. It also delegates the council’s authority for the manager to transfer funds between departments when circumstances require action before the next budget cycle.
Any such transfers must be reported to the council at the next appropriation ordinance, and the total funding appropriated by the council cannot change. Staff will develop a formal policy for the process.
City Manager James Parajon said the practice is standard for municipal governments and allows the city to respond quickly to unexpected needs.
“This is a very typical practice for cities and counties around the country,” Parajon said. “I’ve been doing this a long time. This is a very normal and needed thing that city managers and county executives have throughout the country. It’s also not new to the city of Alexandria. We’ve been doing this for years.”
Parajon outlined scenarios where the authority is necessary: accepting a grant that requires a quick local match, supplementing the city attorney’s budget when legal costs exceed projections — such as defending the zoning for housing initiative — or responding to emergencies like the current winter storm.
“This does not happen a lot, but it does happen enough that it allows the city to run operations effectively,” Parajon said. “It doesn’t give me more authority. It just gives me a timing issue to address it, and that goes directly to the city council for your action.”
Gaskins said the resolution clarifies the process and the council’s oversight role.
“This step really clarifies the process, makes it very clear what our role is and the council’s role in making sure that we affirm, deny, or modify any transfer requests,” she said.
The council approved the resolution 7-0.