County Manager’s

FY 2017 Proposed Budget

Overview for the Public Hearing

On Tax and Fee Rates

Public Tax & Fee Hearing - March 29 & 31, 2016

General Fund Revenue By Source

Federal, 3%

Misc., 9%

State, 10%

Charges for

Services, 5%

License, Permits & Fees, 1%

Local Taxes, 72%

FY 2000: $502.3 million

Federal, 1%

Misc., 3%

State, 6%

Charges for Services, 5%

License, Permits & Fees, 1%

Local Taxes, 84%

FY 2017: $1.2 billion

Federal, 4%

Misc., 8%

State, 12%

Charges for Services,

5%

License, Permits & Fees, 1%

Local Taxes,

70%

FY 1985: $205.2 million

Local Tax Revenue by Source

(General Fund)

RE Condominium, 10%

RE Detached & Townhouse, 26%

RE Commercial, 20%

RE Apartments, 14%

Meals, 4%

Utility Tax, 1%

Transient Occ., 2%

Sales, 4%

Communication, >1%Other, 1%BPOL, 6%PP Vehicle, 7%

PP Bus. Tangible, 4%

Tax & Fee Changes in Proposed Budget

• Tax Rates – Real Estate Tax Rate – proposed budget includes the

base tax rate of $0.983/$100 of assessed value– The advertised base tax rate is $0.983 – no change from CY 2015

No Change Recommended

– Stormwater Tax Rate – $0.013/$100 (of assessed value)

– Commercial Transportation Tax Rate – $0.125/$100

– Personal Property & Business Tangible Tax – $5.00/$100

– Business License Tax Rates – no changes to various rates

– Business Improvement Districts – proposed budget assumes flat tax rates for all BIDs; fully funds the proposed business plan for each.

Tax & Fee Changes (Continued)

• Fees – Increase various Parks & Recreation fees

– Increase ambulance transport fees to Fairfax County rates

– Increase the household solid waste rate by $36.24 to $307.38/year

– Library Fees – set all fees to $0.30/day some fees lowered / some increased

• Other Funds

– Utilities Fund - No change to water/sewer rate of $13.27 per thousand gallons.

Average Single Family Home Assessment

CY 2007 – CY 2016

$537,500 $530,800$520,100

$503,200$510,200

$519,400 $524,700

$552,700

$587,100$603,500

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

$650,000

CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016

Tax & Fee Burden on Average Household

7

Average Homeowner Impact CY 2012 CY 2013 CY 2014 CY 2015

CY 2016

(FY 2017)

CY 2016

(FY 2017)

Current tax

rate

1/2 Cent Rate

Reduction

Average Assmt 519,400 524,700 552,700 587,100 $603,500 $603,500

Tax Rate (Inc. Sanitary Dist) $0.971 $1.006 $0.996 $0.996 $0.996 $0.991

Real Estate Tax $5,043 $5,278 $5,505 $5,848 $6,011 $5,981

Personal Property* 368 410 459 454 474 474

Annual Decal Fee* 66 66 66 66 66 66

Refuse Fee** 294 294 271 271 307 307

Water / Sewer Service 883 883 913 929 929 929

Residential Utility Tax 72 72 72 72 72 72

Total Residential Tax & Fees $6,726 $7,003 $7,286 $7,640 $7,859 $7,829

Percent Change 3.0% 4.1% 4.0% 4.9% 2.9% 2.5%

Dollar Change $199 $277 $283 $354 $219 $189

$24 $29 $18 $16

* For two car household

monthly change

Summary of Residential Taxes and Fees

Jurisdiction Tax Rate ComparisonTotal Rate Applied to Residential Properties

$0.996

$1.043

$1.131 $1.100

$1.315

$1.135

$1.194

$0.996

$1.053

$1.174

$1.104

$1.340

$1.135

$1.215

$0.996

$1.073

$1.174

$1.104

$1.360

$1.135

$1.215

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

Arlington Alexandria Fairfax County Fairfax City Falls Church Loudoun Prince William

CY 2015 Adopted CY 2016 Proposed CY 2016 Advertised

County Manager’s

FY 2017 Proposed Budget

Overview for the Public Hearing

On Tax and Fee Rates

Public Tax & Fee Hearing - March 29 & 31, 2016

County Manager’s

FY 2017 Proposed Budget

Public Budget Hearing - March 29 & 31, 2016

General Fund Budget Facts

• Proposed Total General Fund

budget of $1.19 billion

2.8% increase over FY 2016

• County Operating Budget

(excluding Schools) totals

$727.5 million

• Schools – Transfer of $464.9

million

– Ongoing funding increases $10.8

million (2.4%)

11

FY 2017 Proposed Budget General Fund Expenditures

(Percent)Management & Administration,

4%

Courts & Constitutionals,

6%

Public Safety, 11%

Environmental Services, 8%

Human Services, 11%

Community Services, 4%

Planning & Development, 2%

Non-Departmental,

Regionals, Metro, 9%

Debt/Capital, 6%

Schools, 39%

Manager’s Budget Includes…

• Public Safety ($1.6 million of on-going & $0.4 million of one-time funds)

– Fire – addition of 8.0 firefighters for the two remaining fire

suppression units

– Police – addition of 6.0 patrol officers

– Sheriff – addition of 4.0 uniformed officers and 1.0

administrative position

– One-time funds for equipment of new staff and monies to

assist in identifying enhancements to the courts facility

12

Manager’s Budget Includes (continued)

• Workforce Investment ($6.3 million)

– Merit-based compensation increase for all pay plans

– Open ranges replace grade and step plan

– Increasing maximum of each range by 1.75%

– All permanent employees paid a minimum of $14.50 per

hour

– Increases to Live-Where-You-Work program, employee

clinic hours, tuition reimbursement program, and new

parent leave

• Infrastructure ($0.4 million)

– Streetlight repair

– Residential concrete maintenance13

Schools

Schools

• Ongoing funding $462.5 million, up $10.8 million or 2.4%

• One-time funding of $2.4 million

• Local tax revenue sharing remains at FY 2016 level at

46.5% Schools / 53.5% County

• Above revenue sharing County provides other services to

the Schools costing more than $7 million each year– Includes School resource officers, School health nurses and clinic aides and

crossing guards

14

Adopted County Transfer to Schools(from ongoing tax revenues)

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

$450.0

$500.0

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

$233.2

$252.0

$275.0

$290.0

$311.4

$331.3

$350.1 $352.4 $360.3

$378.8

$400.4 $412.6

$432.2

$451.6 $462.5

$’s

millio

ns

Transfer to Schools

48.6% 48.6% 48.6% 48.6% 46.6% 46.7% 45.3% 45.9% 45.8% 46.1% 46.1% 45.8% 45.6% 46.5% 46.5%

Regional WABE Comparison Chart

16

$0

$5,000

$10,000

$15,000

$20,000

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cost per Student

Arlington County City of Alexandria Fairfax County

City of Falls Church Loudoun County Prince William County

One-Time Funds

• Additional One-time Funds Included ($22.1 million)– The majority of one-time funds are from prior year savings discussed during

FY 2015 closeout

• Use of One-time Funds:– Economic Development - $1.5 million

– Housing Grants - $3.7 million

– Library Pop-Up Space - $0.25 million

– Public Safety - $0.4 million

– Inauguration & Elections - $0.6 million

– Affordable Housing Investment Fund (AHIF) - $8.2 million

– Maintenance Capital - $1.7 million

– Economic & Revenue Stabilization Reserve - $3.0 million

– Miscellaneous one-time investments - $0.25 million

– Schools - $2.4 million

17

Recommendation of Funding Over County

Board Guidance

Funding Above County Board Guidance: $6.2 million

• Reduce the Tax Rate by ½ cent

– Reduction cost = $3.5 million

Balance of Funding Available ($2.7 million)

• Share with School adhering to Principles of Revenue Sharing

($1.3 million)

• Add Fire medic unit to address peak demand in the daytime ($332k)

• Expand the streaming of public meetings ($100k)

• Expand hours of School Health Clinic Aides ($142k)

• Unallocated balance of $900k to address other priorities identified during

the budget process

18

Tax & Fee Burden on Average Household

19

Average Homeowner Impact CY 2012 CY 2013 CY 2014 CY 2015

CY 2016

(FY 2017)

CY 2016

(FY 2017)

Current tax rate

1/2 Cent Rate

Reduction

Average Assmt 519,400 524,700 552,700 587,100 $603,500 $603,500

Tax Rate (Inc. Sanitary Dist) $0.971 $1.006 $0.996 $0.996 $0.996 $0.991

Real Estate Tax $5,043 $5,278 $5,505 $5,848 $6,011 $5,981

Personal Property* 368 410 459 454 474 474

Annual Decal Fee* 66 66 66 66 66 66

Refuse Fee** 294 294 271 271 307 307

Water / Sewer Service 883 883 913 929 929 929

Residential Utility Tax 72 72 72 72 72 72

Total Residential Tax & Fees $6,726 $7,003 $7,286 $7,640 $7,859 $7,829

Percent Change 3.0% 4.1% 4.0% 4.9% 2.9% 2.5%

Dollar Change $199 $277 $283 $354 $219 $189

$24 $29 $18 $16

* For two car household

monthly change

S ummary of R es idential T ax es and F ees

Budget Process

Feb. 18 County Manager Worksession/Overview of Proposed

Budget

Feb. 20 Proposed Budget released & online

Feb. 23 County Manager presentation

County Board action on tax and fee advertisements

Feb. 25 Superintendent proposes budget to School Board

Mar. 3 County Board work sessions begin and continue

through mid-April

Mar. 29 Public hearing on tax rates/fees and budget

Mar. 31 Public hearing on tax rates/fees and budget

April 19 Budget adoption20

County Manager’s

FY 2017 Proposed Budget

Public Budget Hearing - March 29 & 31, 2016