Herndon Council Passes Final 2013 Budget Items

The Herndon Town Council finished its work on the 2013 budget on Tuesday, May 8, passing a resolution to adopt the budget as well as an ordinance to appropriate funds to implement the budget.

The Council spent its April meetings discussing the budget but pushed off voting on two of the budget items so the town could see what decisions Fairfax County would make with its budget. They were also waiting on possible changes in state legislature to the Virginia Retirement System that could impact the budget.

The Council passed a resolution in April to keep all its tax rates, including the real estate tax, cigarette tax, meals tax and other taxes and fees at the current rates. 

Town Manager Art Anselene said the General Assembly signed legislation that was adopted by Gov. Bob McDonnell that would require employees of local governments to pay 5 percent of their member contribution. The requirement would also mean jurisdictions must provide an offsetting 5 percent increase in wages to those employees.

The legislation was amended by McDonnell so that municipalities could complete the requirements in one year, or over the course of up to five years. Anselene said if the town were to do one-year increments the cost would be about $30,000, or about $149,000 if it were done in one year.

When Fairfax County adopted its budget on May 1 it included a 2.18 percent market rate adjustment for employees, as well as a 2.5 percent performance-based rate adjustment for sworn police officers.

The Town of Herndon has a policy that has been in use for a number of years that its pay for police officers should be in line with Fairfax County’s, Anselene said. Councilwoman Sheila Olem said that is because for a time officers would go through costly police training with Herndon, then take jobs with Fairfax County.

Anselene said town staff has been able to review the information from General Assembly and Fairfax County and has come up with options that could help the town meet its goals.

He said if the Council implements the 5 percent Virginia Retirement System adjustments in one year, and provides the 2.5 percent merit increase to police officers who qualify then the town will maintain its similar pay levels with Fairfax County.

Anselene recommended several adjustments to fund the program. He said the town collected $110,000 more in business, professional and occupational license taxes than it had anticipated this year.

He said the town could also save $18,000 for making changes in its life insurance policies as well as switching to the Virginia Municipal League for its Line of Duty Act requirements, saving another $12,000.

Anselene also recommended that two police cars in the budget be paid for with funds from the current year’s revenues, which the town has the resources to do. The combined adjustments will allow the town to implement the new VRS requirement in one year.