Arlington County Board Adopts FY 2020 Budget
Published on April 23, 2019
- Unanimously approves $1.4 billion balanced budget
- Two-cent increase to CY 2019 property tax rate, including 1.5 cents to Schools
- $532.3 million transfer to Schools, with increased revenue sharing percentage
- $4.8 million in reductions, after some cuts to Cultural Affairs restored with one-time funding
The Arlington County Board today adopted a $1.4 billion balanced General Fund Budget for Fiscal Year 2020 that includes a two-cent increase per $100 of assessed value in the property tax rate for Calendar Year 2019. The Board's approval of the budget concluded an intensive review that included a series of work sessions and two public hearings.
"After hearing from hundreds of constituents and holding a work session with the School Board, this Board was convinced that more funding was needed to avoid significant cuts for our schools," County Board Chair Christian Dorsey said. "We are committed to ensuring that Arlington's public schools remain among the nation's best. At the same time, we wanted to raise the property tax rate as little as possible. To that end, we accepted many, but not all the cuts proposed by the Manager, and raised the tax rate only as much as necessary to meet essential needs."
The Board voted unanimously to approve the FY 2020 Budget and CY 2019 property tax rate, along with a number of associated actions. To read the staff report, visit the County website. Scroll to Item No. 40 on the agenda for the Tuesday, April 23, 2019 Regular County Board Meeting.
The Board's action set the CY 2019 tax rate at $1.026 (including the sanitary district tax) per $100 of assessed value. That rate, together with increased assessments as well as other taxes and fees adopted by the Board, will cost the average homeowner (with a home valued at $658,600) $9,023 in FY 2020 in taxes and fees, an increase of $281 from FY 2019, or 3.2 percent. The 2020 fiscal year begins July 1, 2019. The County saw a 2.8 percent increase in the average residential property assessment in 2019.
The Manager had proposed a tax rate increase of one-and-a-half cents (including one cent to Arlington Public Schools to address the cost associated with opening new schools, including Alice West Fleet Elementary School, Dorothy Hamm Middle School, and The Heights Building), when he presented his proposed FY 2020 budget to the Board in February. The Board added another 0.5 cents to increase funding for Arlington Public Schools.
The Board retained the 0.5 cents proposed by the Manager for County priorities of public safety and general employee compensation as well as resources to support Schools ,including school nurses, school resource officers, and increased support for APS swimming pools. The efforts to ensure competitive pay for public safety continues a commitment made by the Board last year that will address our critical need to recruit and retain talented staff.
The Board adjusted other spending recommendations by the Manager to increase funding for the County's Affordable Housing Investment Fund, its main funding mechanism for affordable housing, to $16 million in FY 2020.The $1.5 million increase was funded with one-time funds.
The Board also fully funded the Electoral Board staffing request, and restored arts and literary programming and staffing that the Manager originally recommended reducing. The restoration of cultural affairs programming is the first step in a broader initiative outlined in the guidance to the Manager that will examine how Arlington delivers arts programming.
"This budget makes strategic investments in our infrastructure and our schools, maintains our social safety net, and helps us compete regionally in attracting and retaining high-quality public safety staff," Dorsey said.
$4.8 million in budget reductions
After the restoration of some Cultural Affairs programming, FY 2020 budget reductions total $4.8 million and approximately 27.5 full time staff positions. These reductions are in areas where service demands have declined, where there is another way to provide the service or achieve administrative efficiencies, or where the program is of lessor priority than new demands.
The FY 2020 budget includes adjustments to some existing fees — including Parks and Recreation fees that are reviewed annually and development services fees — as well as new fees for Special General Land Use Plan (GLUP) study process changes, Conceptual Site Plan applications, and a lifetime dog license. The household solid waste rate that residents pay for garbage and recycling is decreasing from $314.16 to $306 annually, while water and sewer rates are increasing by 1.3 percent, or $11 per year for the average household.
Closing Schools' funding gap
The Board closed the funding gap in the Arlington Public Schools by adopting a 1.5 cent tax rate dedicated to APS, and allocating an additional $0.6 million in one-time funding. Total County funding for Schools in FY 2020 is $532.3 million, with $522.4 million in ongoing and $9.9 million in one-time funding.
Guidance to the Manager
The Board gave direction to the Manager in several areas including Metro, cultural affairs and environmental sustainability, for the Fiscal Year 2021 budget.
Non-profit funding: The Board directed the Manager to develop a submission tool and methodology to evaluate non-profits with service contracts with the County to evaluate requests they make for more or supplemental funding for substantially the same scope of work, and for a separate evaluation of non-profits that request funding from the Board for scopes of work not currently supported by public funds.
Metro: The Board directed the Manager to project Arlington funding for Metro for the next two budget years by identifying the high/low variants based on a Fiscal Year 2021 Silver Line phase 2 opening, and maximum increases to Arlington's portion of state-capped operating subsidies.
Cultural Affairs: The Board accepted the Manager's revised Cultural Affairs transition plan, including full funding of Arts Grants and proposed "bridge" staffing for the Costume Lab and Scenic Studio, for 3700 Four Mile Run, and for the Facility Technology Services Director, with the expectation that a more strategic funding proposal for the arts in Arlington will be forthcoming in Fiscal Year 2021. The Board offered guidance to the Manager on the elements that must be included in any draft charge, and said the review should be completed in time for the FY 2021 budget development process.
Environmental sustainability: The Board directed the Manager to explore the financial and operational feasibility of installing a solar array at the Minor Hill pumping station, with the goal of a successful net metering arrangement producing more energy on site than is consumed on an annual basis. The feasibility study will be performed by a consultant if such capacity is helpful after consideration of staff expertise. Up to $50,000 is available for such consultant or staff time, whichever will complete the analysis most effectively and expeditiously in the opinion of the Manager.
The results of the feasibility study should include, subject to staff's expertise, a zoning analysis, conceptual cost estimate, concept plan, draft elements of the business framework for net metering, input from neighbors, and strategy for maintaining both the solar array and the underlying water storage infrastructure over the long term.
Staff will also work with the County Attorney's Office to address the legal issues and matters related to the proposal, including the drafting and negotiation of necessary agreements. The feasibility study will be undertaken with the goal of a decision on whether to proceed with a solar array at Minor Hill no later than the FY 2021 budget process.
For more information on the FY 2020 Budget, and the public process through which it was developed, visit the County website.