County Manager s FY 2017 Proposed Budget. Overview for the Public Hearing On Tax and Fee Rates

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1 County Manager s 2017 Proposed Budget Overview for the Public Hearing On Tax and Fee Rates Public Tax & Fee Hearing - March 29 & 31, 2016

2 General Fund Revenue By Source License, Permits & Fees, 1% Charges for Services, 5% State, 10% License, Permits & Fees, 1% Charges for Services, 5% State, 12% Misc., 8% Federal, 4% 1985: $205.2 million Local Taxes, 70% 2000: $502.3 million Local Taxes, 72% License, Permits & Fees, 1% Charges for Services, 5% State, 6% Misc., 3% Federal, 1% 2017: $1.2 billion Local Taxes, 84% Misc., 9% Federal, 3%

3 Local Tax Revenue by Source (General Fund) RE Commercial, 20% RE Detached & Townhouse, 26% RE Apartments, 14% RE Condominium, 10% Meals, 4% Utility Tax, 1% PP Bus. Tangible, 4% Sales, 4% Transient Occ., 2% PP Vehicle, 7% BPOL, 6% Other, 1% Communication, >1%

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.

5 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.

6 $650,000 Average Single Family Home Assessment CY 2007 CY 2016 $600,000 $587,100 $603,500 $550,000 $500,000 $537,500 $530,800 $520,100 $503,200 $510,200 $519,400 $524,700 $552,700 $450,000 $400,000 $350,000 $300,000 $250,000 CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016

7 Tax & Fee Burden on Average Household Summary of Residential Taxes and Fees Average Homeowner Impact CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 ( 2017) CY 2016 ( 2017) Current tax rate 1/2 Cent Rate Reduction Average Assmt 519, , , ,100 $603,500 $603,500 T ax 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* Annual Decal Fee* Refuse Fee** Water / Sewer Service Residential Utility Tax 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 * For two car household monthly change $24 $29 $18 $16 7

8 Jurisdiction Tax Rate Comparison Total Rate Applied to Residential Properties $1.40 $1.30 $1.20 $1.10 $1.00 $0.996 $0.996 $0.996 $1.174 $1.131 $1.053 $1.073 $1.043 $1.174 $1.104 $1.100 $1.104 $1.340 $1.315 $1.360 $1.215 $1.194 $1.215 $1.135 $1.135 $1.135 $0.90 $0.80 $0.70 $0.60 $0.50 Arlington Alexandria Fairfax County Fairfax City Falls Church Loudoun Prince William CY 2015 Adopted CY 2016 Proposed CY 2016 Advertised

9 County Manager s 2017 Proposed Budget Overview for the Public Hearing On Tax and Fee Rates Public Tax & Fee Hearing - March 29 & 31, 2016

10 County Manager s 2017 Proposed Budget Public Budget Hearing - March 29 & 31, 2016

11 General Fund Budget Facts Proposed Total General Fund budget of $1.19 billion 2.8% increase over 2016 County Operating Budget (excluding Schools) totals $727.5 million Schools Transfer of $464.9 million Ongoing funding increases $10.8 million (2.4%) Schools, 39% 2017 Proposed Budget General Fund Expenditures (Percent) Management & Administration, Courts & 4% Constitutionals, 6% Public Safety, 11% Environmental Services, 8% Human Services, 11% Debt/Capital, 6% Community Services, 4% Non- Departmental, Regionals, Metro, 9% Planning & Development, 2% 11

12 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

13 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 maintenance 13

14 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 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

15 $ s millions Adopted County Transfer to Schools (from ongoing tax revenues) Transfer to Schools $500.0 $450.0 $400.0 $350.0 $331.3 $350.1 $352.4 $360.3 $378.8 $400.4 $412.6 $432.2 $451.6 $462.5 $311.4 $300.0 $275.0 $290.0 $250.0 $233.2 $252.0 $200.0 $ % 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% $

16 Regional WABE Comparison Chart $20,000 Cost per Student $15,000 $10,000 $5,000 $ Arlington County City of Alexandria Fairfax County City of Falls Church Loudoun County Prince William County 16

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

18 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

19 Tax & Fee Burden on Average Household S ummary of R es idential T ax es and F ees Average Homeowner Impact CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 ( 2017) CY 2016 ( 2017) Current tax rate 1/2 Cent Rate Reduction Average Assmt 519, , , ,100 $603,500 $603,500 T ax 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* Annual Decal Fee* Refuse Fee** Water / Sewer Service Residential Utility Tax 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 * For two car household monthly change $24 $29 $18 $16 19

20 Budget Process Feb. 18 Feb. 20 Feb. 23 Feb. 25 Mar. 3 Mar. 29 Mar. 31 April 19 County Manager Worksession/Overview of Proposed Budget Proposed Budget released & online County Manager presentation County Board action on tax and fee advertisements Superintendent proposes budget to School Board County Board work sessions begin and continue through mid-april Public hearing on tax rates/fees and budget Public hearing on tax rates/fees and budget Budget adoption 20

21 County Manager s 2017 Proposed Budget Public Budget Hearing - March 29 & 31, 2016