Proposed Herndon Budget Keeps Real Estate, Meals Tax Rates Steady

Herndon Town Manager Arthur A. Anselene proposed this week a $49.2 million budget for fiscal year 2014, a plan 6.6 percent larger than last year's budget.

The plan takes into account the "fiscal uncertainty" from sequestration at the federal level and across the region, Anselene said in a statement.

It focuses on spending on major road improvements, particularly on Station Street and the Herndon Parkway, and capital projects for downtown redevelopment, along with development around Metro's future Silver Line.

It also puts funding toward plans outlined by the town's Economic Development Task Force, including the town's branding initiative, the creation of an economic development manager and a new ad campaign to promote the town’s restaurants, according to town documents.

The town's real estate and meals tax will remain the same, along with the town's water and sewer rates.

Rising assessed residential property values will drive the average residential real estate tax bill up despite the static rate, however.

Based on a rate of $0.265 per $100 of assessed value, the average water bill is expected to rise to $843.39, up $75.12 from FY 2013.

The average home in Herndon is projected to be assessed at $318,262 in FY 2014, up from the average of $289,913 in the last fiscal year.

The proposed budget must be adopted by June 30. The council will hold two public hearings on the spending plan on April 9 and April 23.

All public hearings start at 7 p.m. at Herndon's Ingram Council Chambers, 765 Lynn St. More information on the budget and the budget process will be posted at www.herndon-va.gov.

PROPOSED FY 2014 BUDGET HIGHLIGHTS, as provided by the Town of Herndon:

Total Budget Expenditures
$49,295,800 for all funds (General Fund, Water and Sewer Fund, Golf Course Fund, Chestnut Grove Cemetery Fund, Downtown Parking Enterprise Fund, and the Capital Projects Funds). 

General Fund Recurring Budget Expenditures
$30,362,400, a decrease of 0.4 percent under the FY 2013 recurring expenses. Includes personnel, operations and maintenance, debt service, and minor capital.

General Fund Expenditures
$32,243,200, which reflects a decrease of $50,890 or 0.2 percent less than the FY 2013 adopted budget.

Real Estate Tax
Remains at $0.2650 per $100 of assessed value.

One Penny on the Real Estate Tax Rate
Equivalent to approximately $399,168 in tax revenues (includes assessed value of public service corporations and real property assessments).

Average Residential Property Value
Projected at $318,262.

Average Residential Real Estate Tax Bill
$843.39 based on $0.2650 per $100 assessed value.

Personal Property Tax Rate
Remains at $0.00 per $100 assessed value.

Meals Tax
Remains at 2.5 percent.

Cigarette Tax
Remains at 75 cents per pack.

Business, Professional and Occupational License Tax
All classifications and thresholds remain at the current amounts.

Sewer Service Rate
Base rate remains at $5.05 per 1,000 gallons of water consumption. Peak rate remains at $1.70.

Water Service Rate
Base rate remains at $2.90 per 1,000 gallons of water consumption. Peak rate remains at $3.50.

Recycling Fee
Remains at $16 per year ($4 per quarter).

Personnel
Personnel costs for all funds total $24,520,200, a decrease of $42,700 when compared to FY 2013.

Capital Improvement Program
$7,665,000 (all funds).

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