Vienna Real Estate Tax Rate Proposed To Decrease In 2023 Budget

VIENNA, VA — A real estate tax rate reduction is proposed in the 2022-2023 budget for the Town of Vienna. Town Council will begin discussing the budget on Saturday.

Town Manager Mercury Payton presented the budget proposal Monday. The budget proposes reducing the real estate tax rate by 1 cent from $0.2225 to $0.2125 per $100 of assessed value. Town of Vienna property owners pay this real estate tax on top of Fairfax County's real estate tax. The average residential tax bill would be an estimated $1,933, a 3.7 percent increase. In an introduction to the budget, Payton attributed the increase to a 4.4 percent increase in assessed values of existing property.

The proposed $48.7 million town budget includes four operating funds: general, water and sewer, debt service, and stormwater. The budget would be an increase of $5.4 million, or 12.7 percent over the current year's budget. In an introduction to the budget, Payton said the budget increase reflects "return to pre-pandemic levels of activity."

The budget seeks to provide compensation increases to employees in response to 40-year-high inflation. Eligible employees would receive a 3 percent increase deferred from 2021-2022 with funding from a surplus. Another 4 percent increase would be funded in the 2022-2023 budget. A separate step-based plan is proposed for sworn public safety employees.

"Health insurance premiums will increase by 11.7 percent for most employees, and the salary increase is important to cover those increases and address inflation, wage pressure and employee retention concerns," Payton said.

While salary increases are proposed, the budget funds no new programs.

"Each department was required to fund all programs and operational expenses as closely as possible to FY 2021-22 original proposed budget amounts, excluding salaries and benefits," Payton wrote in the budget introduction. "Requests for new programs and additional expenditures are included as unfunded priorities."

The town's water and sewer fund is proposed to increase by 6.3 percent due to increases in sewer treatment costs and transfers to the general fund. Water rates are proposed to increase by 2.6 percent, while sewer rates would increase by 6.3 percent. In addition, service charges for residential accounts are proposed to increase from $31.30 per quarter to $32.80 per quarter. The average customer's bill would increase by $10 per quarter or $40 per year.

The debt service fund would increase by 19.5 percent due to $12.5 million in debt issued this year. Meals tax revenue goes toward the debt service fund, and revenue from meals tax has returned to pre-pandemic levels.

The budget also notes Vienna will receive its second American Rescue Plan allocation in June. The stimulus package provides $17.1 million to Vienna, $8.5 million of which was received in June 2021 and the rest will come in June 2022. A large portion of the fund is addressing the town water and sewer infrastructure, park infrastructure, street infrastructure and sidewalk infrastructure. Remaining money goes toward improving cybersecurity, public safety and the economic impact of the pandemic on businesses and residents.

The full budget proposal can be viewed online. Budget work sessions will be held by Town Council on Saturday and Monday. A public hearing on the proposed budget and water and sewer rates is scheduled for April 11, a public hearing on the tax rate is scheduled for April 25, and budget adoption is scheduled for May 16.

SEE ALSO:

• Real Estate Tax Rate Won't Be Increased In Fairfax County
• Real Estate Assessments Up 9.57% For Most Fairfax Homeowners
• Fairfax Schools Would Be Fully Funded Under FY 2023 Budget Plan