Fairfax City Council Adopts Budget For Fiscal Year 2021-22

Press release from the City of Fairfax:

05/07/2021 9:30 AM

On May 5, the Fairfax City Council approved City Manager Robert Stalzer’s recommended $155 million FY 2021-22 General Fund budget and FY 2022–26 Capital Improvement Program (CIP).

The adopted budget fulfills Council directives and goals while minimizing the tax burden for city residents and businesses. The fiscal year runs from July 1, 2021 through June 30, 2022.

The adopted FY22 budget reflects a $19.3 million increase (14.2 percent) from the previous fiscal year budget. The total approved budget for all city funds (General, Wastewater, Stormwater, Transit, Old Town Service District, Cable Fund, Transportation and Capital Funds) is $183.7 million, a 10 percent increase over the corresponding previous year amount.

The adopted FY22 expenditures ($183,692,038 for all funds and $154,966,818 for the General Fund) are meant to get the city significantly back on track from where it was pre-COVID and plant the “seed” needed to ensure a financially stable and vibrant Fairfax City for generations to come. The adopted budget contains the necessary personnel, operating and capital resources to support economic recovery and grow the city’s commercial base in an impactful and sustainable way. The city’s adopted spending plan restores core operations to pre-COVID-19 levels ($5.5M), funds deferred initiatives ($2.4M), subsidizes the estimated increase in the school tuition contract ($2.1M), and provides the minimum investment needed to support its long-term CIP ($9.3M).

As a result of a determined effort to keep costs to residents and businesses as low as possible while still effectively operating the city, the adopted FY22 real estate tax rate is unchanged from the FY21 amount of $1.075 per $100 of assessed value. Of the $1.075, 3¢ is dedicated to the Stormwater Fund. As a result of a 3.7 percent average increase in 2021 residential assessments, the average annual residential real estate tax bill will increase $210, or about $17.50 a month. The average annual commercial real estate tax bill will decrease by 5.3 percent as a result of a drop in the 2021 commercial assessment values. The adopted FY22 budget retains the proposed Old Town Service District tax rate of $0 and eliminates the proposed stormwater tax rate increase of $0.005.

The approved wastewater rates increased 6 percent, increasing the average residential customer’s quarterly bill by $7.16 and the average commercial customer’s monthly bill by $15.60.

The adopted FY22 budget includes a net increase of 6.375 full time equivalent (FTE) positions (4.375 General Fund supported FTEs, of which .625 were requested by City Schools). FTEs will support economic development, urban forestry, human resources, fleet maintenance, finance, wastewater, stormwater, and schools.

The adopted FY22 budget also includes a 3.5 percent merit increase and a 2.3 percent market rate adjustment to the employee pay scales, which will ensure greater parity within the Northern Virginia region and support the city’s recruitment and retention efforts.

The adopted FY22 budget provides a multi-year fiscal plan that funds the FY22 – 26 CIP of $263,773,219, maintains the city’s 12 percent undesignated fund balance, creates the opportunity to fund an Economic Development Opportunity Reserve, all while maintaining the city’s “AAA” bond rating.

The adopted budget will be posted on the city website by July 1 at fairfaxva.gov/budget.

For information on the adopted FY 2021-22 budget, contact Budget Manager Kerry Kidd: email, 703-385-7876

This press release was produced by the City of Fairfax. The views expressed here are the author’s own.