1. PowerPoint for Town Council Presentations
FY 2011 Budget Overview
Presentation to Town Council
Town of Herndon, Virginia
April 13, 2010
TOWN OF HERNDON, VA

2. PowerPoint for Town Council Presentations
FY 2011 Budget Overview
PowerPoint for Town Council Presentations
Budget Overview
Town Council Priorities
General Fund Overview
Enterprise Funds Overview
Capital Improvements Program
Summary
TOWN OF HERNDON, VA

3. PowerPoint for Town Council Presentations
Budget Overview
PowerPoint for Town Council Presentations
$42,252,600 – all funds
$33,688,030 – General Fund
$8,563,970 – Enterprise Funds
TOWN OF HERNDON, VA

4. Budget Overview
Increase of $1,123,815 or 2.7% from adopted FY 2010 budget of $41,128,785

5. Budget Overview Assessed value of real property: $3,288,699,460
Real Property Assessed Value, decreased $596 million %
Existing residential property decreased - 7.8%, overall residential decreased - 5%
Commercial property decreased %

6. Budget Overview
Residential properties 48% of real estate value/commercial properties 52%

7. PowerPoint for Town Council Presentations
Budget Overview
PowerPoint for Town Council Presentations
Real Estate Tax Rate
Increase ¾ of one cent from $0.26 to $ per $100 assessed value
Increased tax rate necessary to offset decreased assessments - $0.3109
TOWN OF HERNDON, VA

8. Budget Overview
One Penny of Real Estate Tax Rate - equivalent to $328,900 in revenue
FY $434,800
FY $472,945
FY $475,616
FY $388,465
FY $328,900

9. Budget Overview
Average Residential Property Value - $257,539

10. Budget Overview

11. Residential Property Assessment
Budget Overview
Residential Property Assessment
Number 0/0 of Total
Increased
Assessments %
No change %
Decreased
Assessments 4,968 83%

12. Budget Overview Meals Tax
Increase from 1.5% to 2.0%
½ percent = $348,100

13. Budget Overview

14. Budget Overview Meals Tax
Fiscal Year Amount Collected
2005 $1,010,413
2006 $1,077,313
2007 $1,169,591
2008 $1,167,976
2009 $1,103,744
2010 (estimated) $1,044,400
2011 (proposed) $1,392,500

15. Other Proposed Tax & Fee Changes
Budget Overview
Other Proposed Tax & Fee Changes
Vehicle Decal Fee
$25.00 for vehicles weighing 4,000 lbs or less
$32.00 for vehicles weighing more than 4,000 lbs
$12.00 for motorcycles
Recycling Fee - established in June 1991
Increase from $2.50/quarter to $4.00/quarter

16. Budget Overview Other Taxes Transient Occupancy Tax - $2,094,700
Communication Sales and Use Tax - $1,798,880
Bank Stock Tax - $215,590
Cigarette Tax - Remains at $ $291,000
Personal Property Rate
Remains at $0.00 per $100 assessed value

17. Budget Overview Transient Occupancy Tax Comparison
County
Local Overlay Total
Alexandria 6.5* *
Arlington
Fairfax City
Fairfax County
Falls Church
Herndon
Leesburg
Loudoun
Vienna
*+$1.00/room/night

18. Town Council Priorities
Implement Downtown Area Master Plan
Implement master planning for Herndon Metrorail Area Study
Continue to reduce excessive occupancy in residential neighborhoods

19. Town Council Priorities
Continue implementation of the 2027 Vision Plan Goals and Objectives within financial resources
Implement economic development taskforce
Implement Phase II downtown streetscape
Support improved transportation outside the western boundary to include the Rt. 28, Dulles Toll Road area improvements
Other CIP projects – storm drainage, Herndon Parkway intersection study

20. Town Council Priorities
PowerPoint for Town Council Presentations
Promote preservation and enhancement of neighborhoods through Neighborhood Inspection Program and Rental Inspection Program
Continue advancement of neighborhood improvements
Station Street
Wood, Oak, Nash, Pearl Streets
Obtain grants and alternative funding options for transportation, police and park facilities
TOWN OF HERNDON, VA

21. Town Council Priorities
Seek more financial sustainability of Parks and Recreation as an enterprise operation
Policy – 65% recovery
FY 2010 estimate - 71% recovery
FY 2011 projected – 75% recovery
Streamline town functions and examine efficiencies while minimizing impacts on service levels

22. PowerPoint for Town Council Presentations
General Fund Overview
PowerPoint for Town Council Presentations
Recommend: $33,688,030
Increase over adopted FY 2010 budget: $1,507,750 or 4.7%
TOWN OF HERNDON, VA

23. General Fund Overview Expenditures (Recurring)
Personnel, operations & maintenance, minor capital and debt service - $29,045,290
3.5% less than adopted FY 2010

24. General Fund Recurring Expenditures
FY 2007 $29,823, %
FY 2008 $30,987, %
FY 2009 $31,668, %
FY 2010 $30,496, %
FY 2011 $29,045, %

25. General Fund Overview (Reimbursements and Grants)
State fire insurance taxes - $60,580
Gang Task Force Grant - $131,200
ICAC Grant - $96,000
Police services (Section 599) - $568,620

26. General Fund Overview (Reimbursements and Grants)
Street maintenance - $1,411,040
DMV, Litter control & other mini-grants -$54,720
Fairfax County - $200,730
NRC - $114,730
Housing Rehabilitation Specialist - $86,000

27. General Fund Overview Expenditures (Capital)
Total capital: $4,453,000
Includes $4,171,600 in General Fund interfund transfers to fund CIP and IT programs
Recommends spending $2.140 M in bond proceeds and capital lease purchase
$200,000 of General Fund undesignated fund balance
$240,000 of capital projects fund undesignated fund balance
Reallocate the $50,000 in reserves for additional police retirement benefits to fund special police equipment

28. Budgeted Use of Available General Fund Undesignated Fund Balance
Fiscal Year Budgeted Actual Undesignated
Budget Amount Fund Balance – June 30
FY $676,185 $6,552,305
FY $595,022 $5,804,224
FY $726,699 $5,439,713
FY $963,718 $5,032,926
FY $773,725 $5,505,291
FY $833,949 $5,065,689
FY $853,768 $5,572,879
FY $104,150 $5,468,729 (projected)
FY $200,000 $5,268,729 (projected)

29. General Fund Overview Expenditures (Debt Service)
Recommends General Fund debt service expenditures of $2,517,750

30. Operations & Maintenance
General Fund Overview
Operations & Maintenance
Reduce general operating expenditures
Eliminate after-school teen club
Eliminate summer concert series
Reduce entertainment at July 4th Celebration
Eliminate the fall clean-up
Close the recycling center
Extend interior painting cycle for town buildings
Combine youth services and crime prevention initiatives

31. Operations & Maintenance
General Fund Overview
Operations & Maintenance
Elimination of some events in FY 2011
Big Truck Days
National Night Out
Senior and Youth Police Academies
Neighborhood College

32. Operations & Maintenance
General Fund Overview
Operations & Maintenance
Recommends grant funding for following non-profit organizations:
Council for the Arts of Herndon: $18,000
Elden Street Players: $22,000
Herndon Community Television: $74,000
Herndon Dulles Visitors Center: $32,000
Herndon Elementary School: $500
Herndon High School PTSA: $500
Herndon High School Band: $500
Herndon Middle School Band: $500
Kids at Hope: $4,000
Sister Cities International: $500

33. General Fund Overview Capital Equipment
Two police vehicles – CMAQ funding
Tandem dump truck – CMAQ funding
Snow blower – lease/purchase
Backhoe – lease/purchase
Police communication equipment and radios

34. Personnel – all funds Recommend funding 264 regular positions
No new positions
Eliminate 13 vacant positions
Freeze five vacant positions
Freeze two vacant positions for 6 months
No market rate adjustment or cost-of-living adjustments
No pay-for-performance increases

35. Eliminated Positions – General Fund
Personnel – all funds
Eliminated Positions – General Fund
Associate Community Inspector Community Development
Office Assistant III/Administrative Clerk Community Development
Naturalist Parks and Recreation
Office Assistant III (p/t) Parks and Recreation
Program Coordinator (Gang Task Force) Police
Police Officer Police
Neighborhood Building Inspector Public Works
Sign/Signal Technician Public Works (Traffic)
Utility Equipment Operator I Public Works (Grounds)
Utility Equipment Operator/Truck Driver Public Works (Refuse)
Office Assistant II (p/t) Town Attorney
Office Assistant II (p/t) Finance-Water & Sewer
Utility Equipment Operator II Water & Sewer

36. Frozen/Unfunded Positions
Personnel – all funds
Frozen/Unfunded Positions
Planner II Community Development
Senior Accounting Technician Finance
Police Officer (2 positions) Police
Assistant Crew Supervisor Public Works (Refuse)

37. Personnel – all funds
Continue to monitor overtime to essential or emergency needs
Freeze educational assistance program
10.1 percent increase on health insurance premiums – shared cost between Town and employees

38. Enterprise Funds Overview
Water & Sewer Fund
Recommend: $6,418,530
Increase from adopted FY 2010 budget: $156,464 or 2.5%

39. Enterprise Funds Overview
Water & Sewer Fund
Sewer Service Rate
$3.72/1,000 gallons of water consumption
Peak rate $1.70/1,000 gallons water consumed in peak range
Sewer Lateral Repair and Replacement Program remains at $2/year
Sewer Availability Fee
Remains at $6,250

40. Enterprise Funds Overview
Water & Sewer Fund
Water Service Rate
$2.90/1,000 gallons of water
Water peak rate $3.50/1,000 gallons of water consumed in peak range
Water Availability Fee
Remains at $4,200

41. Enterprise Funds Overview
Water & Sewer Fund
Includes $75,000 for sewer main reconstruction
Includes $50,000 for water component replacement
Includes $30,000 for water meter replacement

42. Enterprise Funds Overview
Water & Sewer Fund
Includes $241,000 to provide for progress payment to Fairfax County for additional 1 MGD (million gallons/day) water capacity

43. Enterprise Funds Overview
Golf Course Fund
Recommend: $1,438,850
Decrease from adopted FY 2010 budget: $510,639 or
26.2%
All expenses funded through users’ fees - Not taxpayer dollars
Rates adopted by Town Council on 3/9/2010

44. Enterprise Funds Overview
Chestnut Grove Fund
Recommend: $692,040
Decrease from adopted FY 2010 budget: $29,760 or 4.1%

45. Enterprise Funds Overview
Downtown Parking Fund
Provides $15,150 operations and maintenance of Station Street and James Building surface parking lots and monthly lease payments.

46. Capital Improvements Program General Fund Overview
Wood, Oak, Nash, Pearl Improvements – 1M
Station Street Improvements – 1.466M
Downtown Streets Improvements-Phase k
Herndon Parkway Intersections – 500k
Dranesville Road Improvements – 450k

47. General Fund Overview Capital Improvements Program
Sidewalk Construction Program – 45k
Storm Drain Improvements – 25k
General Services Vehicles/Equipment - 282k
Information Technology - 195k
Buildings Major Maintenance – 200k

48. PowerPoint for Town Council Presentations
Summary
PowerPoint for Town Council Presentations
Budget provides for financial and operational efficiencies and effectiveness while reducing cost, but maintaining overall quality of service
Continues implementation of 2027 Vision Plan goals and objectives
Provides continued capital improvement expenditures to advance capital projects and long term planning initiatives
TOWN OF HERNDON, VA