South Fairfax News

On Tuesday, May 3, the Fairfax City Council approved the $162.2 million General Fund budget for FY23 and Capital Improvement Program (CIP) for FY23-27.

The adopted budget fulfills Council directives and goals while minimizing the tax burden for city residents and businesses.The fiscal year runs July 1 through June 30, 2023.

The adopted FY23 General Fund budget is $7.2 million more than the city’s previous year budget, an increase of 4.6%. The total approved FY23 budget for all city funds — General, Wastewater, Stormwater Utility, Transit, Old Town Service District, Cable, Transportation Tax, Capital and American Rescue Plan Act (ARPA) Funds — is $193.9 million, a 5.3% increase from the corresponding FY22 amount.

The adopted FY23 expenditures of $193,908,167 for all funds, and $162,157,744 for the General Fund, continue the significant progress made during the past several years. The adopted budget contains the necessary personnel, operating, and capital resources to support economic recovery and grow the city’s commercial base in an impactful and sustainable way. The city’s adopted General Fund-supported spending plan provides the necessary investment to support its long-term CIP ($11.0 million).

• As a result of a determined effort to keep costs to residents and businesses as low as possible while still effectively operating the city, the adopted FY23 real estate tax rate was set at $1.01 per $100 of assessed value, a decrease of 6.5¢ from the previous rate of $1.075. Residential real estate assessments increased an average of 8.75% this year — but the adopted rate decrease translates to a lower fiscal impact across the board. Residential real estate tax bills will increase an average of $127 annually (or about $10.58 a month), while the average annual commercial real estate tax bill will decrease by 4.2%.
• The adopted FY23 budget re-establishes the Old Town Service District tax rate at $0.04 per $100 of assessed value (a 4¢ increase from the previous year).
• The personal property tax rate remains at $4.13 per $100 of assessed value; however, the assessment ratio for vehicles was reduced to 86% (from 100% the previous year).
• The enterprise utility funds will operate without support from the General Fund and remain financially sustainable.
  • Wastewater rate increased by 6%.
  • Stormwater Utility rate was set at $28.80/billing unit. The stormwater utility was established Dec. 14, 2021.

The adopted budget includes a net increase of 9.75 full-time equivalent (FTE) positions to address growing needs and support initiatives in Economic Development, Human Services, Fire Code Administration, Fleet Maintenance, Information Technology, Finance, Public Works, and Wastewater and Stormwater Utility.

• 5.75 General Fund-supported FTEs
• 2.0 ARPA-supported FTEs
• 2.0 Enterprise Fund-supported FTEs

It also includes a 3.5% merit increase and a 2.6% market rate adjustment to employee pay scales, ensuring greater parity within the Northern Virginia region and supporting the city’s recruitment and retention efforts. The budget also funds the transition of public safety compensation plans from pay ranges to a step system, effective October 1.

The FY23-27 CIP, which includes 116 projects, is fully funded at $80,409,389 for FY23. The CIP projects address many current and future needs citywide. The FY23-27 CIP total amount is $309.1 million.

The adopted General Fund budget increases the city’s 12% undesignated fund balance (minimum policy requirement) to 15%, providing additional support to the city’s AAA bond rating.

The adopted FY23 budget will be posted by July 1 on the city website at fairfaxva.gov/budget.

Info: email, 703-385-7876

Original source can be found here.