Fiscal Year 2005 Proposed Budget
County Manager's Message
Proposed Budget Contents
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RON CARLEE
COUNTY MANAGER |
ARLINGTON
COUNTY, VIRGINIA
OFFICE OF THE COUNTY MANAGER
#1 COURTHOUSE PLAZA
2100 CLARENDON BOULEVARD, SUITE 302
ARLINGTON, VIRGINIA 22201
(703) 228-3120 - FAX (703) 228-3295 |
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To the County Board of Arlington, Virginia:
I am pleased to report that Arlington’s financial position is again
strong. For Fiscal Year (FY) 2005, I am recommending a balanced General
Fund budget of $712.7 million that will maintain Arlington’s
high-quality services and fiscal sustainability. Additionally, the
recommended budget fulfills the Board strategic initiatives and
maintains Arlington as an employer of choice.
- Fiscal Sustainability. The base budget is balanced fully
within current tax rates and revenue projections. All reserve funds
are maintained at targeted levels, and all past year obligations and
annual “subject-to-appropriation” obligations are fully met—as are any
extraordinary inflationary costs in existing services. One-time
funding resources are devoted to capital reinvestments in the
community at a level of $10 million. There are no new programs or
expansions.
- Strategic Initiatives. The Arlington Public Schools are
funded based on our revenue sharing agreement. Strategic
initiatives are also fully funded for the current year, including
investments in transit, public safety, living wage contracts, and
public safety. For FY 2005, additional investments are recommended for
the County Board to consider to sustain the Board’s policy priorities
in housing, economic development, and public safety.
- Employer of Choice. Our goal is to nurture a talented
workforce to best serve our community. In 2003, Arlington was
recognized for these efforts as a pacesetter among area local
governments. The FY 2005 proposed budget maintains Arlington’s model
employee development program, Health Smart wellness initiatives, and
superb healthcare benefits for current and retired employees with no
employee premium increase.
As in every budget process, the County Board will face many competing
and worthy needs and wants that go beyond the base recommendations. To
provide flexibility to the County Board, a $3.1 million contingency is
available. These funds may be used to address policy priorities, tax
relief, capital investment, reserves, or unfunded community desires.
Arlington’s diverse economy and prudent financial decisions have
enabled us to weather what have been tough economic times for most state
and local governments. This year’s proposed budget continues Arlington’s
high standards of financial responsibility and stewardship of the
public’s trust, while delivering world-class community services.
Respectfully submitted,
Ron Carlee
County Manager
February 7, 2004
Attachment: Executive Summary
EXECUTIVE SUMMARY
FY 2005 County Manager’s Proposed Budget
Strategic Alignment
The Arlington Vision adopted by the Arlington County Board in 2001,
provides the overarching framework for our strategic and operational
decision making. The vision provides the continuity necessary to execute
both short- and long-term policy and resource decisions. The annual
budget serves as Arlington’s annual operations plan. Multi-year
strategies are incorporated into a Management Plan, which is updated
annually. Six core themes are contained in the 2005 Management Plan that
support the Board’s vision include:
- Economic and Fiscal Sustainability
- Safe and Attractive Neighborhoods
- A Participating Community: Civic Engagement
- Environmental Sustainability
- A Caring Community: Housing and Human Services
- Organizational and Administrative Development
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Arlington Vision
"Arlington
will be a diverse and inclusive world-class urban community with
secure, attractive residential and commercial neighborhoods
where people unite to form a caring, learning, participating,
sustainable community in which each person is important."
—
Arlington
County Board |
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Budget in Brief
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For Fiscal Year 2005, a total balanced General Fund budget of $712.7
million is recommended, which represents a 7.1 percent increase over
last year. Arlington Public Schools are fully funded at $275.9
million. This amount is based on a revenue-sharing agreement that
apportions 48.6 percent of County tax revenues to the public school
system. A total of $3.1 million is available to the County Board to
support policy priorities, e.g., tax relief, increases to capital
investments, expansion of reserves, or addressing unfunded community
desires. Identified priorities of $1.2 are recommended for funding
from the contingent.
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County Manager's FY 2005
Proposed Budget
General Fund Summary (millions)
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FY 2003
Actual |
FY 2004
Adopted |
FY 2005
Proposed |
% Change '04
to '05 |
| Expenditures |
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| County Services |
$392.1 |
$378.7 |
$399.7 |
5.5% |
| County Debt Service |
$33.7 |
$35.0 |
$37.1 |
6.1% |
| Schools Transfer |
$239.0 |
$252.0 |
$275.9 |
9.5% |
| Total Expenditures |
$664.8 |
$665.7 |
$712.7 |
7.1% |
Revenues |
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| Taxes |
$494.7 |
$518.5 |
$567.7 |
9.5% |
| Other Revenue |
$167.3 |
$135.9 |
$138.1 |
1.7% |
Prior Year
Fund Balance |
$15.9 |
$11.3 |
$10.0 |
-11.6% |
| Total Revenues |
$667.9 |
$665.7 |
$715.8 |
7.5% |
Budget Contingent |
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$3.1 |
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Total FTEs |
3,343.6 |
3,376.9 |
3,368.0 |
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Major Budget Increases
| Base budget appropriations were adjusted to address contractually bound
and/or externally driven, nondiscretionary increases in operating costs.
These adjustments were made to the base in order to truly capture the
real costs associated with sustaining core services and previous
strategic initiatives that are now reflected as base activities. Areas
that significantly influence unprecedented increases to the base budget
are listed in the adjacent table.
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FY 2005 KEY BUDGET
DRIVERS
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| Contracts and Living Wage |
$1,566,632 |
| Utilities |
$381,419 |
| Landfill Charges |
$499,005 |
| Auto Charges |
$277,830 |
| Inmate Care |
$278,222 |
| Lease Purchase Agreements |
$123,915 |
| Rent |
$396,837 |
| Insurance Claims |
$264,541 |
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Recommended Policy Priorities
| No new initiatives have been recommended. However, $1.2 million has been
identified to provide growth to existing policy priorities to meet the
increased demands for these programs. Three priority areas have been
identified for the Board’s consideration: affordable housing, economic
sustainability, and public health/safety. Funding of these priorities is
recommended out of the $3.1 million contingent.
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COUNTY BOARD FY 2005
POLICY PRIORITIES
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POLICY PRIORITY |
FUNDING |
FTEs |
| Affordable Housing |
$510,273 |
1.0 |
| Economic Sustainability |
$280,000 |
6.0 |
| Public Health/Safety |
$403,221 |
6.0 |
| TOTAL |
$1,193,494 |
13.0 |
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Capital Improvement Priorities
| Of the numerous capital improvement projects in the County’s six-year
Capital Improvement Plan, capital improvement projects in the amount of
$10 million are to be funded in FY 2005. Additionally, there are a
number of high priority capital improvement projects that remain
unfunded, the most compelling of which is improvement to the regional
transit system. The County’s support of the Washington Metropolitan Area
Transit Authority (WMATA) is crucial to the economic sustainability of
the County and the region. While our obligation to WMATA is unknown at
the present time, the financial implications are potentially
significant.
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CAPITAL
IMPROVEMENT PROJECTS
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FUNNDED CAPITAL PRIORITIES
($000) |
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Regionals |
$1.034 |
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Capital Asset Preservation Program |
$5.500 |
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Technology |
$2.363 |
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Community Programs |
$1.065 |
| Funded
Capital Priorities |
$9.962 |
UNFUNDED CAPITAL PRIORITIES ($000) |
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Transportation |
TBD |
| Paving |
TBD |
| Other
Capital Projects |
$1.038 |
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Conclusion
This executive summary is intended to provide a high-level perspective
of the contents of the County Manager’s FY 2005 Proposed Budget. Further
details can be found in corresponding sections of the budget.
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