Herndon Budget Plunges Nearly 8 Percent

HERNDON, VA — Herndon has adopted a $51.2 million budget for fiscal 2018, a 7.8 percent decrease from last year, the town announced in a statement on Wednesday.

The Herndon Town Council adopted the fiscal 2018 budget of $51,181,877 on Tuesday evening, and the budget will take effect on July 1, 2017 and run through June 30, 2018.

“Our aim in considering the budget each year is to hold tax rates steady while continuing the forward momentum our town is experiencing, as well as the programs and services our citizens value,” Mayor Lisa C. Merkel said in the statement. “The FY 2018 Budget that we adopted last evening succeeds on all counts.”

The town listed the following highlights in the proposed budget:

• Maintenance of the town real estate tax, meals tax and all other tax rates at their current levels;
• Continued allocation of resources to strategic capital projects, including downtown redevelopment and Metro planning;
• Resources to support development of a first-class arts facility that will act as an economic driver for the downtown;
• Implementation of a town-wide sustainability plan;
• Technology initiatives to include future radio upgrades for Herndon’s police and public works personnel and expanded wi-fi at the Herndon Municipal Center; and
• Increased personnel costs to include a one percent adjustment to the town’s pay scales and an average pay-for-performance increase of three percent.

The full budget will be available on the Town of Herndon website by July 1.

In addition to the highlights, the Town of Herndon also provided the following "at-a-glance" summary of expenditures in the fiscal 2018 budget:

Total Budget Expenditures

$51,181,877 for all funds (General Fund, Water and Sewer Fund, Golf Course Fund, Chestnut Grove Cemetery Fund, Downtown Parking Enterprise Fund and the Capital Projects Funds). The total reflects a decrease of 7.8 percent under the adopted FY 2017 budget of $55,486,261.

General Fund Recurring Budget Expenditures

$34,599,127, an increase of 2.8 percent over the FY 2017 recurring expenditures of $33,652,961. Includes personnel, operations and maintenance, debt service and minor capital (excludes transfers).

General Fund Expenditures

$35,618,127 which reflects an increase of $508,166 or 1.4 percent more than the FY 2017 adopted budget.

Personnel

Personnel costs for all funds total $26,882,555, an increase of $461,455 when compared to FY 2017.

Capital Improvement Program

$6,683,000 (all funds).

Real Estate Tax

Remains at $0.2650 per $100 of assessed value.

One Penny on the Real Estate Tax Rate

Equivalent to approximately $432,196 in tax revenues (includes assessed value of public service corporations and real property assessments).

Average Residential Property Value

Projected at $373,721.

Average Residential Real Estate Tax Bill

$990.36 based on $0.2650 per $100 assessed value.

Personal Property Tax Rate

Remains at $0.00 per $100 assessed value.

Meals Tax

Remains at 2.5 percent.

Cigarette Tax

Remains at 75 cents per pack.

Business Professional and Occupational License Tax

All classifications and thresholds remain at the current amounts.

Motor Vehicle License Fee

Remains at $25 for private passenger and other vehicles weighing less than 4,000 lbs; and $32 for vehicles weighing in excess of 4,000 lbs.

Consumer Utility Tax

Tax based on the purchase of utility services within the corporate limits of the town. The amount of the tax for residential consumers contains a monthly cap of $3 per utility.

Sewer Service Rate

Base rate remains at $5.05 per 1,000 gallons of water consumption.

Sewer Availability Fee

Remains at $7,490 for new, single-family homes.

Sewer Lateral Repair and Replacement Program

Remains at $2 per year ($0.50 per quarter).

Water Service Rate

Base rate remains at $2.90 per 1,000 gallons of water consumption. Peak rate remains at $4.95.

Water Availability Fee

Remains at $4,863 for new, single-family homes.

Recycling Fee

Remains at $16 per year ($4 per quarter).

Image via Flickr user Dion Hinchcliffe