SECTION B - REVENUES
ECONOMIC OUTLOOK AND FY 2006 REVENUE PROJECTIONS
The
FY 2006 projected revenues reflect a continued growth in the local
economy. On a national level, calendar
year (CY) 2004 was a year of strength in the housing market fueled by continued
low interest rates and a return of positive earnings for companies and rising
stock prices. Though certain sectors of
the market continued to struggle, the strength of the economy was returning
from several years of declining or stagnant growth. At the same time, the Washington Metropolitan area was
experiencing phenomenal growth in real estate. The County continues to see a
strong real estate market. Appreciation
in real estate assessments has averaged 15.7 percent over the last three
calendar years (CY 2003 – 2005).
In
June 2004, the State adopted their FY 2004 – FY 2006 biennium budget. Most jurisdictions, including Arlington,
adopted their FY 2005 budget not knowing what the state would ultimately adopt
in terms of funding levels and local taxing authority. The State's adopted FY 2004 – FY 2006
biennium budget created several opportunities for Arlington to expand local tax
revenue. The State adopted changes in
the areas of personal property tax, sales tax, recordation tax, and the
cigarette tax. The impacts of the
State's changes on Arlington are discussed on the following pages in the
General Fund Revenue Summary section.
For
FY 2006, many tax revenues are estimated at growth rates at or slightly below
historical averages. However, several
local tax revenue sources have shown strong growth in the last few years. Real estate tax revenue, which has been
driven by the increasing assessment value of real property, recordation tax
revenue from the sale and refinancing of homes, and meals tax receipts have outpaced
other local tax revenues. This above
average growth in these sectors is not expected to continue. Interest rates are expected to rise and a
slowdown of the hot real estate market is expected. Arlington has a diverse tax base and the weakness in one area
has historically been offset by strength in another. The current optimism in the existing economic climate is tempered
by the uncertainty localities face from the State's General Assembly. In addition to the continued possibility of
the state reducing local funding or the enactment of legislative constraints,
localities must plan for the eventual reduction in Personal Property
reimbursements from the state. The
estimates of revenues forecast in the FY 2006 budget reflect conservative
projections when compared to recent trends in several tax and non-tax
categories.
County
budget information compares budgeted revenues and expenditures from the current
fiscal year to the adopted fiscal year.
Most of the growth calculations in this section, derived from historical
trends and other data, are calculated against revised estimates for the current
year. This is necessitated primarily
because of the County's assessment of real estate as of January 1 of each year. The value of real estate, determined in the
middle of a fiscal year, has a significant impact on the current fiscal year's
revenue (since the first payment is due in June, prior to the end of the
current fiscal year) and drives the forecast for the subsequent fiscal year. Other tax revenues are revised in the
current year if the tax receipts indicate higher/lower year-end projected
revenue. This revenue surplus/deficit
is typically not recognized in the budget until the Mid-Year or Third Quarter
review is completed. The revised FY 2005 estimates can be found in the spreadsheet at the end of this section.
General
Fund revenues (excluding fund balance) for FY 2006 are anticipated to increase
by 10.7 percent over the FY 2005 adopted budget. Given that real estate taxes comprise 53
percent of General Fund revenues, the growth in real estate materially affects
total revenue growth. While some
increase in the real property base is the result of new construction,
appreciation in values of existing real properties is the primary factor
influencing the growth in the real estate assessments for calendar year
2005.
Overall,
Arlington will continue to be fiscally sound and will benefit from its abundant
economic, cultural and educational resources.
Arlington's unemployment rate remains low and per capita income remains
high in comparison to other counties and cities in the nation. Residential properties experience strong
market activity due to Arlington's strategic location. Commercial office properties exhibit
relatively low vacancy rates attributable to Arlington's commercial development
near metro station areas.
The
chart on the following page displays several economic indicators which affect
the local tax revenue of Arlington County.
In section P of the Manager's Proposed Budget there are additional
fiscal indicators showing historical information on expense, revenue, and
population.
|
ECONOMIC INDICATORS
|
|
|
CY 2002
|
CY 2003
|
CY 2004
|
|
Consumer Price Index (CPI-U)
|
1.6%
|
2.3%
|
N/A
|
|
Employment Cost Index
|
3.7%
|
3.9%
|
3.8%
|
|
Unemployment – U.S. /
Arlington
|
5.8% / 2.7%
|
6.0% / 2.2%
|
5.5% / N/A
|
|
Mortgage Rates (annual
avg.) – 30 year fixed rate
|
6.65%
|
5.99%
|
5.97%
|
|
Federal Funds Rate
(range)
|
1.25% - 1.75%
|
1.00% - 1.25%
|
1.00% - 2.25%
|
|
Retail Sales (based on
1% of Arlington tax revenue)
|
$2.7 billion
|
$2.9 billion
|
$3.0 billion (est.)
|
|
Office Vacancy Rate
(incl. sublet)
|
8.2%
|
13.5%
|
11.8%
|
|
Tourism – Occupancy
|
68%
|
68%
|
73%
|
|
Average
Rate
|
$121.76
|
$121.60
|
$127.15
|
|
|
|
|
|
Sources: Federal Data, Virginia Employment Commission,
Costar, Smith Travel Research
|
TAX COMPETITIVENESS
Arlington County continues to have a tax structure that is
competitive with the region and with the nation. The County's $0.958 real estate tax rate in calendar year (CY)
2004 is one of the lowest in the Washington metropolitan area. Arlington's personal property tax rate of
$4.40 (effective rate for vehicles is $3.96) is lower than that of the Cities
of Alexandria and Falls Church, and Fairfax County. Arlington does not have a
residential consumer's utility tax, unlike all surrounding Northern Virginia
jurisdictions. Changes throughout the past several years have reduced the
business license tax liability for many small and medium-sized businesses. In addition, the Commissioner of the Revenue
lowered the depreciation schedule for computer equipment beginning CY 2000 (FY 2001), reducing business tangible tax bills for most businesses. Charts comparing tax rates and tax bills for
various northern Virginia jurisdictions are found later in this section.
FINANCIAL STANDING
Arlington is one of approximately 23 counties in
the United States to be awarded a triple Aaa/AAA/AAA credit rating. In May 2001, Fitch Inc. rated the County's
bond credit rating for the first time and awarded Arlington County its AAA
rating for the County's bond issues, the highest rating given by the firm. In April 2004, Fitch Inc. reaffirmed the
County's AAA credit rating. Moody's
Investors Services also confirmed in April 2004 that Arlington would maintain a
rating of Aaa, a rating the County has held with the firm since 1978. Standard & Poor's announced in April
2004 as well that Arlington would maintain its AAA rating, a rating the County
has held with S&P since 1989. With
a triple Aaa/AAA/AAA rating, this validates that Arlington's financial position
is outstanding and reflects the continued growth of high wage jobs in the
technology, communications and financial services sectors, high per capita
retail sales and strong operating reserves.
PROPOSED TAX RATES, USER CHARGES AND PERMIT FEE
CHANGES FOR FY 2006
The
following changes have been proposed for FY 2006 and are reflected in the
Proposed Budget revenue totals.
In the General Fund,
changes in several departments are reflected in the department revenue
narratives and the General Fund total revenues. These include the following actions:
- In
the Department of Environmental Services, decrease the Chain Bridge Road
Service District tax rate 1.1 cents to $0.069 for each $100 of real estate
assessment value. This tax is imposed
to fund the repayment of the extension of a sanitary sewer line along Chain
Bridge Road. This service district tax
rate is in addition to the real estate tax rate.
- In
the Department of Environmental Services, increase the household solid waste
rate by $3.12 to $248.76 per year. The fee is charged per refuse unit and is
set to recover the full cost of refuse collection and disposal, including
administrative costs.
- In
the Department of Human Services, increase the program fee for the Madison
Adult Day Health Care Center from $69/day to $71/day.
- In
the Department of Human Services, increase the food establishment licensing
application processing fee from $60 to $65.
- In
the Department of Human Services, increase a variety of fees relating to
regulation of water recreation facilities to recover the full cost of the
related regulatory activities.
-
In
the Department of Community Planning, Housing and Development, increase fee for
plan review-walk through.
- Increase
recreation services fees for summer and holiday camp programs, preschool, swimming
memberships, recreation fitness center memberships, and rentals for
facilities. The increase will cover the
direct costs of running the programs in the Department of Parks, Recreation and
Cultural Resources.
In the Utilities
Fund:
- Increase the water/sewer
rate from $6.20 to $7.13 per thousand gallons.
-
Decrease
the 2nd Road North Service District tax rate 11.0 cents to $0.265
for each $100 of real estate assessment value.
This tax is imposed to fund the repayment of the extension of a sanitary
sewer line along 2nd Road North.
This service district tax rate is in addition to the real estate tax
rate.
In
the Special Assessment District Fund:
- Decrease
the Rosslyn Business Service District tax rate .2 cents to $0.046 for each $100
of real estate assessment value. This
tax is imposed to fund additional services in the downtown Rosslyn area. This service district tax rate is in
addition to the real estate tax rate.
GENERAL FUND REVENUE SUMMARY
The FY 2006 General Fund budget is financed by a
variety of revenue sources, which include local taxes, service charges, fees,
and revenues from the Commonwealth of Virginia and the federal government. For FY 2006, General Fund revenues,
excluding fund balance, are projected to total $782.6 million. The pie chart below depicts the major
sources of General Fund revenues. As in the past, local taxes are the largest
revenue source, projected to total $636.7 million, or 81 percent
(excluding fund balance) of total General Fund revenues. For FY 2006, total revenues (excluding
fund balance) increase by 10.7 percent, or $75.4 million, when compared
with FY 2005 adopted budget.
Beginning with the FY 2003
budget, local tax revenues are shown net of tax refunds. During the year, the County may be required to
repay or refund a portion of local taxes paid by taxpayers. If this tax payment were challenged for the
current year's taxes, the adjustment would be refunded or reduced in the
current year's tax revenues. Prior to
FY 2003, if this tax payment were challenged for taxes paid in past years, the
refund would be recorded as an expenditure in the general fund. Due to the accounting of the repayment as an
expenditure, the reduction in funds was not treated as a reduction in
revenues. With the agreement to share
with the Arlington Public schools local tax revenues net of tax refunds, all
local tax refunds are reduced from current year local tax revenue budgets.
Local tax revenues are net of tax refunds and are projected
to increase by 12.5 percent or $70.9 million over FY 2005 adopted.
LOCAL TAXES The pie chart below
illustrates the local taxes that the County collects. As demonstrated by the chart, real estate and personal property
taxes are the largest tax categories.
Together, they account for 77 percent of local tax revenue. A description of the local taxes and a
discussion of the FY 2006 projections follow:
REAL ESTATE TAX Real estate tax
revenues are the largest source of funds, generating $412.9 million or
53 percent of all revenues for the FY 2006 budget (excluding fund
balance) and 65 percent of all local tax revenues. The FY 2006 revenue
projections reflect a CY 2005 real estate tax rate of $0.958 for each $100 of
assessed property value (applying both to commercial and residential real
estate).
Under current state
statute, the real estate tax rate must be the same for all classes of real
property. Arlington County prorates real estate taxes for the value increase on
new construction, a policy adopted in FY 1986. Previously, a property owner paid real estate taxes based on the
January 1 value of a structure. No
additional tax was assessed if the building was completed during the course of
the year. With proration, property
owners pay a prorated share of the real estate tax increase during the calendar
year, based on when the building is substantially completed.
For
the proposed budget, the value of real property in the County excluding Public
Service Corporations (PSCs) increased approximately 18.3 percent on average
from CY 2004 to CY 2005. New
construction added 1.7 percent to the tax base, while assessments of
existing property increased 16.6 percent overall. The assessed value of the average single-family residence
increased by about 24 percent, from $369,600 to $458,200. Therefore, at the current real estate tax
rate of $0.958 the average single family residential tax bill will increase by
about $849 over CY 2004. The tax base
of multi-family residential properties (rental apartments), including new
construction, increased in assessed value by 15.5 percent. The commercial property showed the smallest
increase at 7.0 percent in assessed value.
While some increase in assessed value of residential property is the
result of new construction, renovation, and remodeling, the bulk of the
assessment increase is the result of higher market prices for homes in
Arlington County. In the commercial
sector, the value of office buildings increased by 9.0 percent while hotels and
motels remained relatively stable. The
net effect of the 18.3 percent increase in assessed value is an increase in the
FY 2005 re-estimated real estate tax revenue from the FY 2005 adopted
budget level, since assessment growth was projected to be 6.0 percent.
|
Change in Assessed
Value of Real Estate in Arlington County
Calendar Year 2004 to Calendar Year 2005
(In millions, numbers may not add due to rounding)
|
| |
|
Single-Family
|
|
|
|
|
Houses
|
Condominium
|
Apartment
|
Commercial
|
Total
|
|
Percentage
of CY 2005 Tax Base
|
44%
|
15%
|
13%
|
28%
|
100%
|
|
CY
2004 Tax Base
|
$15,147
|
$4,673
|
$4,792
|
$10,951
|
$35,563
|
|
Assessed
Value Change
|
$3,240
|
$1,519
|
$568
|
$575
|
$5,902
|
|
CY
2005 Tax Base
|
$18,387
|
$6,192
|
$5,360
|
$11,526
|
$41,466
|
|
(Excluding
New Growth)
|
|
Percent
Change
|
21.4%
|
32.5%
|
11.9%
|
5.3%
|
16.6%
|
|
New
Construction
|
$155
|
$69
|
$175
|
$196
|
$595
|
|
Percent
Change
|
1.0%
|
1.5%
|
3.7%
|
1.8%
|
1.7%
|
|
CY
2005 With New Construction
|
$18,542
|
$6,261
|
$5,535
|
$11,723
|
$42,061
|
|
Percent
Change CY 2004 to CY 2005
|
22.4%
|
34.0%
|
15.5%
|
7.0%
|
18.3%
|
The
FY 2005 adopted budget estimated a real estate tax base of $37.7 billion for CY
2005 (including reassessment and new growth).
Subsequently, the CY 2005 real estate tax base increased to $42.1
billion. The adjustment to the tax base
will increase real estate revenue in FY 2005 (June payment) $12.0 million. The projected tax base growth in CY 2006 is
currently estimated at 6 percent. This
reflects a conservative continued growth estimate in the residential and
commercial sectors.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
October
Taxes
|
$153,813,758
|
$169,069,839
|
$199,837,895
|
18%
|
|
June
Taxes
|
168,630,132
|
179,250,585
|
211,877,880
|
18%
|
|
Del./Pen./Int./Def.
|
3,099,901
|
2,784,000
|
3,259,728
|
17%
|
|
Tax
Refunds - Real Estate
|
-
|
(1,650,000)
|
(2,100,000)
|
27%
|
|
TOTAL
|
$325,543,791
|
$349,454,424
|
$412,875,503
|
18%
|
The
FY 2006 budget for real estate tax revenues are net of $2.1 million in tax
refunds and $3.0 million for the County's tax relief
program for the elderly and disabled.
The
following table shows the projected revenue generated by a real estate tax rate
of $0.958 per $100 of assessed value in FY 2006.
|
FY 2004
Actual |
FY 2005
Adopted |
FY 2006
Proposed |
|
%Change
'05 to '06 |
|
|
|
|
|
|
| October Taxes |
$153,813,758 |
$169,069,839 |
$199,837,895 |
|
18% |
| June Taxes |
168,630,132 |
179,250,585 |
211,877,880 |
|
18% |
| Del./Pen./Int./Def |
3,099,901 |
2,784,00 |
3,259,728 |
|
17% |
| Tax Refunds - Real Estate |
- |
(1,650,000) |
(2,100,000) |
|
27% |
| TOTAL |
$325,543,791 |
$349,454,424 |
$412,875,503 |
|
18% |
PERSONAL PROPERTY TAXThis
tax is levied on the tangible property of individuals and businesses. For individuals, personal property tax is
primarily assessed on automobiles. For
businesses, examples of tangible property include machines, furniture, computer
equipment, fixtures, and tools. Personal
property taxes are projected to generate 10.3 percent of the General Fund
revenues (excluding fund balance) for FY 2006. The current rate of $4.40 per $100 of assessed valuation has not
changed since 1987.
For the CY 2004 tax book, the assessed value of personal
property in the County (excluding PSCs) totals approximately $1.8 billion.
The make-up of the County-assessed portion of the personal property tax base
reflects a decrease in the average assessed value per car, however; the number
of vehicles in the County has increased slightly primarily due to efforts by the
Commissioner of Revenue's office in locating unregistered vehicles in the
County. Business tangible assessments
are down substantially from CY 2003.
There are several factors contributing to the decline in assessments, which include an inaccurate prior year Public Service Corporation assessment, relief of large, erroneous telecommunication assessments, and the correction of an assessment for a company whose assets were not located in the County.
Vehicles
in Arlington County are assessed using the average loan value from the National
Automobile Dealers Association (N.A.D.A.) Used Car Guide, whereas other
neighboring jurisdictions (except for Loudoun County) use the average trade-in
value. This results in a lower
assessment (about 10 percent less or at an approximate rate of $3.96) for
vehicles in Arlington County. If
vehicles are in the County for only part of the year, the tax is prorated for
the time located in Arlington. The
estimated average assessed value (average loan value) for vehicles billed by
the County for CY 2004 was $6,601.
Therefore, the average vehicle tax bill was $290 and the average
household (assuming 2.0 cars per household) received a bill of $580 for its
vehicles. For CY 2005, the estimate is
assumed flat at the CY 2004 level of $580 per household.
The
FY 2006 budget for personal property tax revenues is net of $2.1 million in tax
refunds.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Personal
Property Taxes
|
$76,421,176
|
$85,650,955
|
$78,521,176
|
-8%
|
|
Delinquent/Penalty/Interest
|
3,180,921
|
2,574,000
|
3,140,847
|
22%
|
|
Tax
Refund - Personal Property
|
-
|
(1,650,000)
|
(2,100,000)
|
27%
|
|
TOTAL
|
$79,602,097
|
$86,574,955
|
$79,562,023
|
-8%
|
The Virginia 2004 General
Assembly adopted their FY 2004 – FY 2006 biennium budget in June 2004. This adopted budget fundamentally changed
the Personal Property Tax Relief Act (PPTRA) enacted in 1998. Beginning in FY 2000, the state reimbursed
localities for 47.5% of the personal property vehicle tax exempted by the
state. The scheduled phase out was frozen
at 70% by the 2002 General Assembly and currently remains at 70%. Beginning in FY 2007, Arlington will no
longer be reimbursed for 70% of vehicle taxes for automobiles assessed between
$1,000 and $20,000. Rather, the state will determine Arlington County's share
of the state's vehicle tax reimbursement based on Arlington's proportionate
share of the statewide CY 2004 base.
Arlington's proportionate share will be frozen at that level and
Arlington will receive this fixed dollar amount annually from the state instead
of the current reimbursement schedule.
Arlington's FY 2005 personal property tax revenue was not affected by
the State's adopted budget in June 2004.
BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE
(BPOL) TAX
(State Code Section
§58.1-3700, et al / County Code Section
§11-57 thru §11-84)
These
taxes are levied on entities doing business in the County and are in the form
of fixed fees or a percentage of gross receipts. For the first year of business, a firm is required to obtain a
business license within 75 days of operation.
The business license tax is based on the previous year's gross receipts
(except in the case of new businesses which must estimate their receipts until
they have been in business a full calendar year). All licenses that are paid based on estimates are subject to
adjustment when the actual receipts are known.
Effective in 2001, the due date for filing and renewal of business
license changed from January 31 to March 1.
A comparison of selected BPOL rates for Arlington and neighboring
jurisdictions can be found at the end of this Revenue section.
The
FY 2006 budget for BPOL tax revenues is net of $2.8 million in tax refunds, an
increase of $0.6 million over FY 2005.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
BPOL
Taxes
|
$38,011,080
|
$40,537,745
|
$41,999,915
|
4%
|
|
Delinquent/Penalty/Interest
|
7,079,383
|
7,800,000
|
7,300,000
|
-6%
|
|
Tax
Refunds - BPOL
|
-
|
(2,200,000)
|
(2,800,000)
|
27%
|
|
TOTAL
|
$45,090,463
|
$46,137,745
|
$46,499,915
|
1%
|
LOCAL SALES TAX (State Code Section §58.1-605 & 606 / County Code Section §27-6)
For
the State's FY 2004 – FY 2006 biennium revenue budget signed by the Governor
June 3, 2004 and effective September 1, 2004, the state sales tax was increased
0.5% from 4.5 percent to 5.0 percent on all non-food items. Of the new .5%
sales tax, one-half will go to the Arlington County School system directly and
the other one-half will stay with the State.
The revenue distributed to the School's will be based on school age
population and Standards of Quality (SOQ) funding formulas determined by the
state.
Of
the total 5.0 percent sales tax, 1.0 percent is a local option tax which
is returned to localities by the Commonwealth and supports general fund
expenditures. Sales tax revenue for FY 2006 is estimated at eight percent above the FY 2005 adopted budget.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Sales Tax
|
$29,371,091
|
$29,333,500
|
$31,688,213
|
8%
|
TRANSIENT OCCUPANCY TAX (TOT)
(State Code Section §58.1-3819,
3822 & 3833.3B / County Code
Section §40, et al)
A
5.25% local tax is levied on the amount paid for hotel and motel rooms (0.25
percent is dedicated to the promotion of tourism). The FY 2006 projections reflect continued growth based on recent
hotel trends. The FY 2006 revenues are
projected to increase seven percent over FY 2005 adopted budget. The 0.25 percent dedicated tax to the
promotion of tourism is estimated to generate $0.81 million in revenue in
FY 2006 and is reported separately in the Travel and Tourism Promotion Fund
section. There is currently a sunset
provision in the state code for the .25% dedicated tax to tourism which
Arlington is currently trying to extend.
The law is scheduled to sunset January 1, 2006.
In
the spring of 2002, the General Assembly passed enabling legislation allowing
Arlington to increase its transient occupancy tax an additional 2% provided the
funds are dedicated to the construction of a visitor and convention center. The County is required to have a site
selected prior to initiating the new tax.
The site selection process is currently under way and it is anticipated
that a recommendation will be brought forward for County Board action in the
spring of CY 2005. The potential
revenue that would be received from this tax increase to fund the construction
of a new convention and visitor's center is $6,200,000 in the first twelve
months the tax is in effect.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Transient
Tax
|
$14,977,887
|
$15,118,750
|
$16,200,082
|
7%
|
MEALS TAX
(State
Code Section §58.1-3833 & 3840 /
County Code Section §65, et al)
The
restaurant meals tax was enacted effective June 1, 1991. The tax of 4.0 percent is charged on most
prepared foods offered for sale. The
tax is in addition to the 5.0 percent sales tax (additional ½ percent adopted
for the FY 2004 – FY 2006 State biennium budget). Meals taxes have been common in most Virginia cities and a number
of Virginia counties for many years.
Airline catering services are assessed at a rate of 2.0 percent. Meals tax revenue is expected to continue
its strong growth into FY 2006.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2005
Proposed
|
% Change
'05 to '06
|
|
Meals
Tax
|
$21,928,701
|
$22,412,800
|
$25,200,000
|
12%
|
OTHER LOCAL TAXES
The chart below lists other sources of local taxes.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Car
Rental
|
$4,687,693
|
$4,462,500
|
$4,600,000
|
3%
|
|
Bank
Stock
|
1,269,547
|
1,200,000
|
1,200,000
|
-
|
|
Recordation
|
3,619,361
|
2,300,000
|
6,534,052
|
184%
|
|
Cigarette
|
691,269
|
650,000
|
3,900,000
|
500%
|
|
Estate
|
68,152
|
75,000
|
75,000
|
-
|
|
Short-term
Rental
|
38,885
|
65,000
|
65,000
|
-
|
|
Commercial
Utility
|
7,632,495
|
7,200,000
|
7,500,000
|
4%
|
|
Consumption
|
741,733
|
800,000
|
800,000
|
-
|
|
TOTAL
|
$18,749,135
|
$16,752,500
|
$24,674,052
|
47%
|
Car Rental Tax (State Code Section §58.1-2402)
In
1992, the General Assembly, at Arlington's initiative, voted to increase the
car rental tax from 2.5 percent on the gross proceeds from the rental of
passenger cars to 4.0 percent.
These funds are collected by the state and remitted to localities where
the rental transaction occurred.
Bank Stock Tax
(State
Code Section §58.1-1208 - 1211 / County
Code Section §28, et al)
The
bank stock tax is a tax on the net capital of bank and trust companies. The tax is assessed at a rate of $0.80 per
$100 of capital.
Recordation Tax (State Code Section §58.1-3800 / County Code Section §27-1)
The
local recordation tax is assessed at the rate of $0.0833 per $100 of value for
all transactions including the recording of deeds, deeds of trust, mortgages,
leases, contracts, and agreements admitted to record by the Circuit Court
Clerk's Office. In Virginia, localities
can charge up to one-third of the state rate. Recordation tax revenues fluctuate due to the volume of mortgage
refinancing as a result of lower or higher interest rates.
For
the State's FY 2004 – FY 2006 biennium revenue budget signed by the Governor
June 3, 2004, the recordation tax was increased $0.10 to $0.25 per $100
effective September 1, 2004. With the
State's legislation change, Arlington's locally imposed recordation tax
increased $0.033 to $0.0833 per $100 of transaction value. The County Manager's FY 2006 proposed
budget reflects $3,922,000 in recordation tax revenue ($0.05 per $100) to fund
General fund expenses and $2,612,052 ($0.033 per $100) to be set aside for the
County Board to determine the most appropriate use of funds.
Cigarette Tax (State Code Section §58.1-3831 / County Code Section §39, et al)
The
local cigarette tax on every pack of 20 cigarettes sold in Arlington County is
$0.20. For the State's FY 2004 –
FY 2006 biennium revenue budget signed by the Governor June 3, 2004, the
state cigarette tax was increased from $0.025 to $0.20 per pack beginning
September 1, 2004 and to $0.30 per pack beginning July 1, 2005.
With
the state's legislative change, Arlington had the local authority to increase
the local cigarette tax to the new state levels. In July 2004, the Arlington County Board adopted an ordinance
increasing the local cigarette tax commensurate with the state. Arlington's tax on a package of cigarette
prior to September 2004 was $0.05.
Beginning September 1, 2004 the local tax rate was increased to $0.20
per pack and on July 1, 2005 (FY 2006) Arlington cigarette tax rate will
increase to $0.30 per pack of 20 cigarettes.
The County Manager's FY 2006 proposed budget reflects $650,000 in
cigarette tax revenue (first $0.05 per pack) to fund General fund expenses and
$3,250,000 ($0.05 - $0.30 per pack) to be set aside for tax relief.
Estate Tax (State Code Section §58.1-3805 / County Code Section §27-19)
The
local estate tax was introduced in FY 1992. The tax is charged for the processing of estates by the Circuit
Court Clerk's Office. At one-third of
the existing state estate tax rate of $0.10 per $100, the County rate is $0.033
per $100 of estate value.
Short-term Rental Tax (State Code Section §58.1-3510 / County Code Section §64, et al)
A
person is engaged in the short-term rental business if not less than 80 percent
of the gross rental receipts of such business in any year arises from
transactions involving rental periods between 31 and 92 consecutive days,
including all extensions and renewals to the same person or a person affiliated
with the lessor. The rate of the tax is
one percent on the gross receipts of such business.
Commercial Utility Tax (State Code Section §58.1-3814 / County Code Section §63, et al)
Arlington
charges a utility tax on commercial users of electricity and gas. This tax is based on kilowatt hours (kWh) or
hundred cubic fee (CCF) delivered monthly to commercial consumers. The tax rate on electricity and gas was
capped by the state at localities FY 2002 level. This cap expired on January 1, 2004 allowing the County future
flexibility on this local tax revenue.
Unlike other localities, Arlington does not charge this tax to
residential consumers. In addition to
electricity and gas, other localities also impose this tax on consumers of
telephone and water utilities.
Consumption Tax (State Code Section §58.1-2900 & 2904 / County Code Section §63, et al)
The
deregulation of electric and gas utilities, enacted during the 1999 and 2000
General Assembly, eliminates the BPOL tax on electric and natural gas companies
and creates a new tax charged to consumers based on usage. This consumption tax is collected by the
utilities and remitted back to localities effective February 2001.
LICENSES, PERMITS, AND
FEES Revenues in this category are levied to offset the cost
of licensing certain trades, inspecting various types of construction, and
providing related services.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Motor
Vehicle Decal Fees
|
$3,405,567
|
$3,500,000
|
$3,500,000
|
-
|
|
Cable
TV Franchise Fees
|
1,945,461
|
1,966,420
|
2,100,000
|
7%
|
|
Building
Permits
|
2,179,445
|
1,980,000
|
2,080,000
|
5%
|
|
Electrical
Permits
|
573,505
|
500,000
|
520,000
|
4%
|
|
Plumbing
Permits
|
363,169
|
432,000
|
437,000
|
1%
|
|
Mechanical
Permits
|
297,376
|
300,000
|
300,000
|
-
|
|
Right-of-Way
Fees
|
1,062,342
|
1,300,000
|
1,100,000
|
-15%
|
|
Other
|
1,417,655
|
1,729,326
|
1,893,529
|
9%
|
|
TOTAL
|
$11,244,520
|
$11,707,746
|
$11,930,529
|
2%
|
Decal Fees
An annual license tag fee of $24 is imposed for all applicable motor
vehicles. This annual fee compares
similarly to charges by the surrounding jurisdictions. From CY 2002 to CY 2004 the number of
vehicles remained relatively flat. This
trend is projected to continue in FY 2006.
Projected revenues for FY 2006 total $3.5 million.
Cable TV Franchise Fees
The agreement with the cable service license contract includes a franchise fee
of four percent of gross revenues. This
is paid to the County each year during the term of the certificate as
compensation for the use of the public rights-of-way.
Building Permit FeesBuilding permits
are calculated on a square footage basis and fluctuate based on the number of
projects. Electrical permits are
charged on all electrical work in homes, commercial and apartment projects such
as services, outlets, lights and motors.
Plumbing permits are required for water and sewer service, all plumbing
fixtures and gas installations for new construction, repairs, alterations and
additions. Mechanical permits are
charged for boilers, cooking appliances, heating and air conditioning systems,
ventilation and smoke control systems.
Building permit fee revenue increased in FY 2006 due to increased
activity.
Right-of-Way FeesThe FY 2006 budget
includes the public rights-of-way use fee which was approved during the 1998
General Assembly and enacted by the County Board effective October 1,
1998. Revenues from the right-of-way
fees are based on the current rate imposed by the state at $0.59/line. This fee covers the use of highway and
street right-of-way by certificated providers of telecommunication services and
is charged to the ultimate end user.
The decrease in fee revenue is based on a revised estimate for the
number of telephone lines in the County subject to the fee.
Other
Most of the "other" license and permit revenue is generated by the Department
of Community, Planning, Housing and Development. Included are elevator certificate fees, building plan reviews,
site plan fees and occupancy permits.
For FY 2006, revenue increased due to fee and activity increases.
FINES, INTEREST, RENTS
These revenues include fines, interest, rent, lease agreements, paid parking,
rental and sale of surplus.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Fines/Tickets
|
$9,357,346
|
$9,273,000
|
$8,903,584
|
-4%
|
|
Interest
|
3,009,428
|
3,700,000
|
3,811,000
|
3%
|
|
Courthouse Plaza
|
1,464,764
|
1,150,000
|
1,150,000
|
-
|
|
Paid
Parking
|
943,867
|
822,441
|
909,384
|
11%
|
|
Other
Revenues
|
372,618
|
295,814
|
400,825
|
35%
|
|
TOTAL
|
$15,148,023
|
$15,241,255
|
$15,174,793
|
-
|
Fines/Tickets
This category is comprised of traffic moving violations, parking tickets,
arrest fees, court reporter's costs, and miscellaneous court costs. Fines are also collected on infractions that
occur at Reagan National Airport.
Interest
Interest is earned on County general and bond funds, which are invested on a
short-term basis until needed to pay for County expenditures. Interest earned varies due to changing
balances and interest rates.
Courthouse Plaza The
County receives payments from Vornado Realty (formerly Charles E. Smith) for
the land under 2100, 2110 and 2150 Courthouse Road. The County shares in the net profit on the buildings
operations. Based on historical net
profit receipts and the anticipated stability in the three buildings operating
income, the budgeted revenue for FY 2006 remained flat.
Paid Parking Parking revenue is generated by the monthly
charge to Arlington County employees to park in the various government
buildings.
Other
Rentals, sales of surplus, and lease agreements are also included in this
revenue category.
CHARGES FOR SERVICES
This category encompasses revenues received for a variety of County
services. Service charges are
structured so that the users of a particular service are the ones to pay for a
majority of its costs, as opposed to using general tax dollars to fund services
that benefit a small segment of the population. The chart below highlights the major sources of revenues.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Refuse/Recycling
Fee
|
$7,513,426
|
$7,897,326
|
$7,997,634
|
1%
|
|
Parking
Meters
|
3,471,469
|
3,838,000
|
4,016,830
|
5%
|
|
Court
Costs
|
1,911,287
|
1,599,386
|
2,300,000
|
44%
|
|
Falls
Church Reimb
|
1,659,438
|
1,648,859
|
1,853,553
|
12%
|
|
Recreation
Fees
|
4,178,159
|
4,417,147
|
4,670,111
|
6%
|
|
E
9-1-1 Surcharge
|
3,149,708
|
5,762,000
|
5,400,000
|
-6%
|
|
Other
|
8,575,121
|
8,153,388
|
8,476,563
|
4%
|
|
TOTAL
|
$30,458,608
|
$33,316,106
|
$34,714,691
|
4%
|
For
FY 2006, the combined residential customer rate for refuse collection,
disposal and recycling is proposed to increase $3.12 from $245.64 to $248.76
per year. The County's policy for the
refuse rate is recovery of 100 percent of disposal and collection costs. In FY 2006, the solid waste fee will
generate approximately $8.0 million in revenues based on the current number of
households served by the refuse collection and recycling programs.
The change in revenue for
court costs reflects the amount of court-related activity. The Falls Church reimbursement represents a
charge for services provided by the County which includes fire, emergency
medical services, sheriff, court and judicial services. Recreation fees include charges for summer
and holiday camp programs, senior adult programs, competitive swimming, and
membership to the Thomas Jefferson Community Center and for use of athletic
fields.
The FY 2005 adopted budget includes an
increase to the E-911 telephone fee charged for each telephone land line. The fee was increased from $1.75/line/month
to $3.00/line/month. The additional
revenue will be used to fund the cost of
debt financing and system upgrades in a new emergency communication
center. The decrease in revenue from FY 2005 to FY 2006 is based on a reestimate of the number of telephone lines in
the County paying the E-911 fee.
Major revenue sources in the
"Other" category and their estimated FY 2006 revenues are: fees from human
services programs ($1.9 million); reimbursement from the Utilities Fund for
administrative functions of County staff agencies ($1.0 million);
ambulance service fees ($0.8 million); library fines and fees ($0.5 million);
engineering service charges ($0.8 million); and Arlington Transit (ART) charges
($0.7 million).
REVENUE FROM THE
COMMONWEALTH Arlington
receives funds from the Commonwealth of Virginia for a variety of
state-mandated and supported functions and services. The County also receives its portion of some revenues collected
by the state. The chart below
highlights the total amount received from the Commonwealth of Virginia and
details the sources that comprise the total.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Highway
Aid
|
$15,188,266
|
$13,300,000
|
$14,300,000
|
8%
|
|
Law
Enforcement
|
7,217,260
|
7,423,765
|
7,527,961
|
1%
|
|
Health
Reimb.
|
3,376,004
|
3,357,283
|
3,335,241
|
-1%
|
|
Social
Services
|
3,991,464
|
4,583,164
|
4,069,323
|
-11%
|
|
Mental
Health
|
4,914,302
|
4,779,990
|
5,209,665
|
9%
|
|
Sheriff
/ Detention
|
6,628,420
|
6,443,033
|
6,779,475
|
5%
|
|
Prisoner
Expense
|
1,540,020
|
1,038,270
|
1,478,741
|
42%
|
|
Commuter
Assistance
|
2,610,948
|
2,199,260
|
2,555,460
|
16%
|
|
Comprehensive
Svc. Act
|
2,502,341
|
2,209,656
|
2,209,917
|
-
|
|
Jail
Construction
|
1,807,884
|
1,800,000
|
1,800,000
|
-
|
|
Other
|
8,916,975
|
7,884,772
|
9,143,102
|
16%
|
|
TOTAL
|
$58,693,884
|
$55,019,193
|
$58,408,885
|
6%
|
The
County receives highway aid as a result of Arlington's decision not to join the
Commonwealth's secondary road system in 1932.
The County assumed maintenance responsibilities for the secondary roads
in Arlington, and receives state highway aid for that function. These funds are derived primarily from the
Commonwealth's collection of new car sales and gasoline taxes, and other
vehicle related fees and taxes ($14.3 million). In addition to highway aid, the County receives funds of
approximately 49 percent of its costs for maintaining traffic signals on state
roads. The state traffic signal funds
total approximately $0.8 million for FY 2006 and are included in the "other"
category.
Law enforcement aid is
provided to the County to partially fund salaries of law enforcement officers
and to provide funds for their training in order to comply with the Code of
Virginia Section 9.1-165. Arlington receives a
percentage of law enforcement aid ("599") funding each year based on
population, crime rates, and social service rates. Calculations to determine the distribution of "599" funds are
performed biennially by the Department of Criminal Justice Services.
Changes
in Social Services budgeted revenues include a decrease in the state
reimbursement of social services programs.
This
revenue source fluctuates depending on the number of state social services
caseloads. The Comprehensive Services
Act (CSA) is a consolidation of court and social service programs targeted at
preventing out-of-home placements for troubled youths and totals $2.2 million
for FY 2006.
The County also receives a reimbursement
for a portion of the costs to construct the Arlington Regional Jail. The regional jail reimbursement to the
County will continue until FY 2013.
Other major revenues that the County receives from the Commonwealth
include support for health and mental health/retardation programs. Other revenues from the Commonwealth include
Compensation Board funding for support of elected officials who perform
state-mandated and local functions, such as the Commissioner of the Revenue,
Treasurer, Sheriff, Commonwealth's Attorney, Circuit Court Clerk, and the
General Registrar.
REVENUE FROM THE FEDERAL
GOVERNMENTThe federal government provides funding for employment
assistance, housing programs, drug enforcement, aid to the elderly, and other
programs. The Workforce Investment Act
(WIA)/Job Training Partnership Act (JTPA) funding is based on unemployment data
and poverty levels and are based on the current year's allocation by the
state. The revenue decline in FY 2006
is due to lower funding in JTPA. In
FY 2006, Arlington's allocation of HUD/HOME funds is slightly reduced for
FY 2006. Revenue of approximately $9.8
million from the federal government for social service programs is passed
through from the state budget to Arlington County. This includes approximately $6.6 million in federal funding
appropriations from the Local Public Assistance Cost Allocation Plan (LPACAP)
to support a variety of human service initiatives. Since some of the federal social service programs are 100 percent
reimbursable, revenue will change with changes in caseloads. Revenue for U.S. Marshall prisoners is
generated through an agreement with the U.S. Marshall's Office to house federal
prisoners in the Arlington County Detention Facility when bed space is
available. The remaining federal fund
revenue includes payments for grant funding through the Older Americans Act,
mental health reimbursements and other miscellaneous grant and reimbursement
funding.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
WIA/JTPA
|
$1,752,898
|
$1,064,559
|
$977,397
|
-8%
|
|
HUD/HOME
Program
|
1,339,616
|
1,260,827
|
1,201,029
|
-5%
|
|
Social
Services
|
10,715,380
|
9,983,713
|
9,837,029
|
-1%
|
|
LPACAP
|
3,552,552
|
6,964,492
|
6,603,830
|
-5%
|
|
Substance Abuse
|
791,728
|
808,141
|
853,141
|
6%
|
|
US
Marshall Prisoners
|
1,039,431
|
1,137,004
|
1,137,004
|
-
|
|
Other
|
6,667,721
|
3,383,817
|
3,439,705
|
2%
|
|
TOTAL
|
$25,859,326
|
$24,602,553
|
$24,049,135
|
-2%
|
MISCELLANEOUS REVENUEThese include revenue sources that do not fall
under any other category and include one-time or pass through funds. Included in these payments are the sale of
land & buildings and cable revenue from Comcast Cable of Maryland, Inc. for
administrative reimbursements and pass-through payments to the Arlington
Community Television (ACT) as part of the cable television agreement. The other category includes various revenue
to the Department of Human Services for a lease agreement with Cherrydale
Nursing Center, Comprehensive Health Investment Project (CHIP) of Virginia,
Teens Against Tobacco, and other County departmental funding including
Department of Environmental Services reimbursements.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Sale
of Land and Building
|
-
|
$25,000
|
$25,000
|
-
|
|
Cable
TV Administration
|
$176,844
|
181,000
|
185,050
|
2%
|
|
AHIF
|
1,214,366
|
-
|
-
|
-
|
|
Cable
TV ACT Payments
|
501,437
|
486,105
|
525,000
|
8%
|
|
Bond
Premiums
|
2,212,334
|
-
|
-
|
-
|
|
Proceeds
from Lease Purchase
|
1,179,948
|
-
|
-
|
-
|
|
Other
|
743,576
|
618,341
|
645,967
|
4%
|
|
TOTAL
|
$6,028,505
|
$1,310,446
|
$1,381,017
|
5%
|
TRANSFERS FROM OTHER FUNDS
Transfers to the General Fund include the Automotive Fund transfer to cover its
share of insurance costs, funding for the Chesapeake Bay program, funding for
the administration of the Rosslyn Business Improvement Tax District, and
transfers to the Departments of Economic Development and Parks & Recreation
from the Rosslyn Trust & Agency account.
PRIOR YEAR FUND BALANCEFunds unspent
(under-expenditures or increased revenues) from previous fiscal years have been
used to support one-time expenses in subsequent year's budgets. At the end of FY 2004, $3.3 million was
set aside by the County Board for capital project implementation. The County Manager has not included these
funds in the FY 2006 fund balance typically used to fund the Pay-As-You-Go
Capital Program. These funds may be
needed by the County Board in FY 2005 to fund a variety of current capital
funding needs.
The fund balance in the proposed FY 2006 budget
of $1,275,150 is the amount of unspent FY 2005 revenue received from the
incremental increase in the recordation tax ($.05 - $.0833). The County Board has indicated that they may
want to designate these funds for affordable housing needs in FY 2006.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Transfers
|
$511,805
|
$274,500
|
$289,916
|
6%
|
|
Prior
Year Adjusted Balance
|
$11,273,773
|
$11,203,957
|
$1,275,150
|
-89%
|
TOTAL GENERAL FUND
REVENUES Below is a summary of the revenue categories previously
described, as well as total revenues for the General Fund in Fiscal Years 2004,
2005 and 2006.
|
General
Fund Revenues
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
|
|
|
|
|
Real
Estate Tax
|
$325,543,791
|
$349,454,424
|
$412,875,503
|
18%
|
|
Personal
Property Tax
|
79,602,097
|
86,574,955
|
79,562,023
|
-8%
|
|
BPOL
Tax
|
45,090,463
|
46,137,745
|
46,499,915
|
1%
|
|
Local
Sales Tax
|
29,371,091
|
29,333,500
|
31,688,213
|
8%
|
|
Transient
Tax
|
14,977,887
|
15,118,750
|
16,200,082
|
7%
|
|
Commercial
Utility Tax
|
7,632,495
|
7,200,000
|
7,500,000
|
4%
|
|
Meals
Tax
|
21,928,701
|
22,412,800
|
25,200,000
|
12%
|
|
Other Taxes
|
11,116,641
|
9,552,500
|
17,174,052
|
80%
|
|
Total Local Taxes
|
$535,263,166
|
$565,784,674
|
$636,699,788
|
13%
|
|
|
|
|
|
|
Decal
Fees
|
3,405,567
|
3,500,000
|
3,500,000
|
-
|
|
Licenses,
etc.
|
7,838,953
|
8,207,746
|
8,430,529
|
3%
|
|
Fines,
Interest, Rents
|
15,148,024
|
15,241,255
|
15,174,793
|
-
|
|
Charges
for Services
|
30,458,608
|
33,316,106
|
34,714,691
|
4%
|
|
Commonwealth
|
58,693,884
|
55,019,193
|
58,408,885
|
6%
|
|
Federal
Government
|
25,859,326
|
24,602,553
|
24,049,135
|
-2%
|
|
Miscellaneous
Revenues
|
6,028,504
|
1,310,446
|
1,381,017
|
5%
|
|
Transfers
|
511,805
|
274,500
|
289,916
|
6%
|
|
Total Other Revenue
|
147,944,671
|
141,471,799
|
145,948,966
|
3%
|
|
TOTAL
(excluding prior year balance)
|
$683,207,837
|
$707,256,473
|
$782,648,754
|
11%
|
|
Prior
Year Adjusted Balance
|
11,273,773
|
11,203,957
|
1,275,150
|
-89%
|
|
TOTAL
(including prior year balance)
|
$694,481,610
|
$718,460,430
|
$783,923,904
|
9%
|
TRAVEL AND TOURISM PROMOTION FUNDThe FY 2006
revenue budget for the Travel and Tourism Promotion Fund (Fund 002) reflects a
seven percent increase in projected transient occupancy tax revenues from the
FY 2005 adopted budget. Funds are
used to market and promote tourism in Arlington County. Reorganization of the County Manager's
Office in the latter half of FY 1999 resulted in the transfer of County store
revenue from the General Fund to the Travel and Tourism Fund. During FY 2003, a federal recovery grant
totaling $400,000 was received. The
grant funds will be paid out over the next five years and are being used toward
the cost associated with the build-out and the rent related to the newly located
Visitors' Center in Pentagon Row. For
FY 2006, the reimbursed revenue for lease costs is estimated to be
$78,000. The General Fund transfer supports the personnel costs associated with
the Arlington Convention and Visitors Service, which was transferred from the
General Fund in FY 1992.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Transient
Occupancy
|
$765,563
|
$755,900
|
$810,000
|
7%
|
|
County
Store Revenue
|
2,216
|
8,000
|
8,000
|
-
|
|
Misc. Federal Grant
|
399
|
70,200
|
78,000
|
11%
|
|
Transfer
In
|
247,000
|
247,000
|
247,000
|
-
|
|
Utilized
Fund Balance
|
-
|
77,969
|
49,446
|
-37%
|
|
TOTAL
|
$1,015,178
|
$1,159,069
|
$1,192,446
|
3%
|
UTILITIES FUND
For FY 2006, the Utilities Fund (Fund 003) revenues total
$55,569,585. The revenues for this
enterprise (self-supporting) fund are derived from water/sewer service charges,
water service connection fees, sewage treatment service charges, interest
earnings, and other fees for service.
Beginning in FY 2003 the utility marking fee was transferred from the
Department of Environmental Services General Fund to the Utilities Fund.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Interest
|
($2,860)
|
$100,000
|
$100,000
|
-
|
|
Utility
Marking Fee
|
99,623
|
100,000
|
100,000
|
-
|
|
Water
Sewer Service
|
38,086,344
|
45,353,597
|
52,138,085
|
15%
|
|
Water
Svc. Connection
|
20,993
|
400,000
|
400,000
|
-
|
|
Sewage Treatment
|
3,196,805
|
2,823,500
|
2,823,500
|
-
|
|
Flow
Test Fees
|
9,500
|
8,000
|
8,000
|
-
|
|
Late
Charge & Turn On Fee
|
27,000
|
-
|
-
|
-
|
|
Misc.
Revenue
|
600,909
|
-
|
-
|
-
|
|
TOTAL
|
$42,038,314
|
$48,785,097
|
$55,569,585
|
14%
|
Water/sewer service charges
are the largest source of revenue for the Utilities Fund and are derived from
quarterly utility bills paid by residents and monthly or quarterly bills paid
by commercial establishments. The
water/sewer rate is proposed to increase $0.93 to $7.13 per thousand gallons
for FY 2006.
Water service connection fees,
which are paid by new water users to connect to the water system, recover 100
percent of costs. The fee amount is
based on the size of the pipe being connected into the water system.
Sewage treatment charges
are revenue received for operations and maintenance cost reimbursement from
neighboring jurisdictions (Falls Church, Alexandria, and Fairfax County) and
federal government installations (Pentagon, Reagan National Airport, Columbia
Island Marina and Fort Myer) that use the County sewage system, but supply
their own water.
SPECIAL ASSESSMENT DISTRICT FUND In December, 2002, the Arlington County Board
established a service district in the downtown Rosslyn area. The purpose of the district is to provide
supplemental services to those already provided by county government. For FY 2004, an additional real estate tax
levy was approved to fund the additional services and programs within the
district's boundaries. The Rosslyn
Business Improvement Corporation, an organization whose board of directors and
committee membership includes owners and tenants of properties in the district
as well as County and neighborhood representatives, submitted a work program
and budget for Arlington County Board consideration. In FY 2004, an additional real estate tax rate of $0.049 for each
$100 of real estate assessment value was set for the first fiscal year to fund
the work in Rosslyn Business Improvement District. Based on the CY 2006 real estate assessments for the properties
in the district an additional tax rate of $0.046 per $100 of assessed value
will fund the FY 2006 Rosslyn Business Improvement District budget.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Service
District Taxes
|
$981,915
|
$1,001,239
|
$1,040,751
|
4%
|
|
TOTAL
|
$981,915
|
$1,001,239
|
$1,040,751
|
4%
|
COMMUNITY DEVELOPMENT FUND
The FY 2006 revenue budget for the Community Development Fund
(Fund 006) are used to address low- and moderate-income housing needs and
other community projects. The Community
Development Block Grant (CDBG) program was established as a separate special
revenue fund in FY 1987 to comply with requirements of the federal
Department of Housing and Urban Development (HUD).
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Federal
Aid - CDBG
|
$2,951,298
|
$2,248,000
|
$2,172,472
|
-3%
|
|
TOTAL
|
$2,951,298
|
$2,248,000
|
$2,172,472
|
-3%
|
SECTION 8 HOUSING ASSISTANCE
FUND This program provides vouchers for housing to eligible
Arlington County residents. The federal
funds are used for the administrative costs of the program, as well as for the
rental subsidy payments.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Federal
Section 8
|
$13,698,638
|
$13,706,076
|
$13,854,892
|
1%
|
|
HOPWA
Grant
|
186,634
|
140,000
|
140,000
|
-
|
|
Shelter Plus Care
|
-
|
108,312
|
108,312
|
-
|
|
Misc.
Revenue
|
17,001
|
18,703
|
15,679
|
-
|
|
TOTAL
|
$13,902,273
|
$13,973,091
|
$14,118,883
|
1%
|
AUTOMOTIVE EQUIPMENT FUND
The Automotive Equipment Division of the Department of Environmental Services
operates as an internal service fund (Fund 009) and supports the County's
automotive fleet.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
|
|
|
|
|
Sales
of Surplus Equipment
|
$286,958
|
$200,000
|
$271,800
|
36%
|
|
Subrogation/Third Party
|
118,575
|
63,000
|
63,000
|
-
|
|
Miscellaneous
|
59,098
|
47,100
|
22,100
|
-53%
|
|
Transfer
In
|
244,384
|
192,459
|
-
|
-100%
|
|
TOTAL
|
$709,015
|
$502,559
|
$356,900
|
-29%
|
PRINTING FUND
Revenues in this internal service fund (Fund 011) are received from outside
agencies and the Arlington County Public Schools for printing and photocopying
services, as well as a General Fund transfer for non-billable services.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Svcs
to Outside Agencies
|
$37,811
|
$40,000
|
$40,000
|
-
|
|
Miscellaneous
|
-
|
-
|
-
|
|
|
Transfer
In
|
125,156
|
144,655
|
144,655
|
-
|
|
TOTAL
|
$162,967
|
$184,655
|
$184,655
|
-
|
JAIL INDUSTRIES FUND
The Jail Industries Fund (Fund 012) was created in FY 1995 to track and report
the activities of a program within the new Detention Facility which trains
inmates in park maintenance, printing services and catering services. Revenues accrue from charges to outside
agencies for services provided.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Service Fees
|
$3,625
|
$5,100
|
$5,100
|
-
|
|
TOTAL
|
$3,625
|
$5,100
|
$5,100
|
-
|
GENERAL CAPITAL PROJECTS
FUND The General
Capital Project Fund (Fund 013) accounts for the capital projects for general
government functions which are financed under the County's Pay-As-You-Go
Capital Program. The program areas
include local parks and recreation, transportation, community conservation,
government facilities, and regional contributions. The FY 2006 budget does not include a specific amount of funds to
be allocated to the General Capital Project Fund.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Project
Receipts
|
$1,076,736
|
-
|
-
|
-
|
|
Developer
Contributions
|
461,936
|
-
|
-
|
-
|
|
Misc.
Revenue
|
(450,936)
|
-
|
-
|
-
|
|
Cable
TV
|
700,012
|
-
|
-
|
-
|
|
VA
Trans Dept Grants
|
449,714
|
-
|
-
|
-
|
|
Misc
State & Federal Grants
|
144,004
|
-
|
-
|
-
|
|
State
& Local Emerg. Grant
|
2,864,425
|
-
|
-
|
-
|
|
Proceeds
from Jail Settlement
|
200,000
|
-
|
-
|
-
|
|
Transfer
In
|
9,205,000
|
$11,694,207
|
-
|
-100%
|
|
TOTAL
|
$14,650,891
|
$11,694,207
|
-
|
-100%
|
UTILITIES CAPITAL PROJECTS
FUND The Utilities
Capital Projects Fund (Fund 019) accounts for capital projects for the sanitary
sewer system, water distribution system, and wastewater treatment plant. The projects are funded through interest
earnings from fund balance, hook-up charges paid by developers for connection
into the County water distribution and sanitary sewer systems, and transfers
from the Utilities Operating Fund.
Sewage treatment charges are revenues received from neighboring
jurisdictions (Falls Church, Alexandria, and Fairfax County) for reimbursement
of a portion of the upgrade costs at the Water Pollution Control Plant.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Interest
|
$342,176
|
$390,000
|
$100,000
|
-74%
|
|
Project
Receipts
|
9,268
|
-
|
-
|
-
|
|
Water
Sewer Hook-Up
|
3,574,251
|
2,500,000
|
3,000,000
|
20%
|
|
Sewage
Treatment Charges
|
2,337,076
|
773,000
|
294,667
|
-62%
|
|
Miscellaneous
|
6,200,400
|
-
|
-
|
-
|
|
Misc
State Revenues
|
470,845
|
-
|
-
|
-
|
|
Proceeds
from VRA Loan
|
8,749,767
|
-
|
-
|
-
|
|
Transfer
In
|
4,270,155
|
6,963,467
|
9,945,333
|
43%
|
|
Utilized
Fund Balance
|
-
|
-
|
200,000
|
-
|
|
TOTAL
|
$25,953,938
|
$10,626,467
|
$13,540,000
|
27%
|
BALLSTON GARAGE Revenues received from the Ballston Garage
Fund (Fund 040) are used to offset costs of operating the garage. Interest accrues from earnings on the fund
balance. Parking revenues are payments
by the users of the public parking facility, which are collected by the
County's contract operators, Standard Parking.
For FY 2006 fund balance will be used to fund construction in the garage
in FY 2006.
|
FY 2004
Actual
|
FY 2005
Adopted
|
FY 2006
Proposed
|
% Change
'05 to '06
|
|
Interest
|
$59,388
|
$200,000
|
$100,000
|
-50%
|
|
Parking
Revenues
|
4,021,351
|
3,375,567
|
3,517,140
|
4%
|
|
Utilized
Fund Balance
|
-
|
1,454,407
|
2,240,148
|
54%
|
|
TOTAL
|
$4,080,739
|
$5,029,974
|
$5,857,288
|
16%
|
RESIDENTIAL TAXATION AND
FEE TRENDS
During
each budget cycle, tax and fee rate changes are reviewed in light of the costs
of providing services to County residents.
The following section is a brief analysis of the residential tax burden
in Arlington County and other area jurisdictions. Generally, Arlington's tax rates are the lowest, or are very competitive
with other Washington metropolitan area jurisdictions. For example, Arlington does not have a
residential utility consumer's tax while all surrounding Northern Virginia
jurisdictions levy this tax on electricity, natural gas and telephone usage.
Real estate tax
Using the current tax rate of $0.958 per $100 of assessed valuation, the real
estate tax bill of the average residential family home would increase by $849
to $4,390 for calendar year (CY) 2005 (portion of FY 2005 and
FY 2006). The average assessment
for a single family home increased by 24 percent from $369,600 to $458,200 for
CY 2005.
Real Estate Tax Payment
Average Single Family Home
|
|
Calendar Year
|
Assessed Value
|
Tax Rate
|
Tax Payment
|
|
|
|
|
|
1996
|
$185,400
|
$0.96
|
$1,780
|
|
1997
|
$186,030
|
$0.986
|
$1,834
|
|
1998
|
$186,130
|
$0.998
|
$1,858
|
|
1999
|
$191,350
|
$0.998
|
$1,910
|
|
2000
|
$202,770
|
$1.023
|
$2,074
|
|
2001
|
$224,390
|
$1.023
|
$2,296
|
|
2002
|
$269,500
|
$0.993
|
$2,676
|
|
2003
|
$316,000
|
$0.978
|
$3,090
|
|
2004
|
$369,600
|
$0.958
|
$3,541
|
|
2005 Proposed
|
$458,200
|
$0.958
|
$4,390
|
Personal property tax
For residents, vehicles are generally the item for which the personal property
tax is paid. The personal property tax
rate has been $4.40 per $100 of assessed valuation since 1987. The valuation method uses the average loan
value, which is approximately ten percent lower than the trade-in value, and
results in an effective personal property tax rate to $3.96. The chart below illustrates the calendar
year average assessed value through the sixth certified personal property book
(December) which represents approximately 97% of the actual year end vehicle
assessments.
Personal
Property Tax Paid by Typical Household*
(Assumes 2.0 Cars Per
Household)
|
|
Calendar Year
|
Assessed Value
|
Tax Rate
|
Tax Payment
|
|
|
|
|
|
1996
|
$5,101
|
$4.40
|
$449
|
|
1997
|
$5,227
|
$4.40
|
$460
|
|
1998
|
$5,311
|
$4.40
|
$467
|
|
1999
|
$5,581
|
$4.40
|
$491
|
|
2000
|
$5,986
|
$4.40
|
$527
|
|
2001
|
$6,287
|
$4.40
|
$553
|
|
2002
|
$6,405
|
$4.40
|
$564
|
|
2003
|
$6,702
|
$4.40
|
$590
|
|
2004
|
$6,970
|
$4.40
|
$613
|
|
2005 Proposed
|
$6,601
|
$4.40
|
$580
|
* Does not reflect state
rebates of PPTRA.
Refuse collection and
disposal fees The annual residential charge for refuse collection and
disposal is proposed to increase to $248.76 and includes cardboard
recycling. This rate achieves the
County's objective of 100 percent recovery of household refuse collection and
disposal costs and part of the leaf collection costs. Arlington's rate continues to be competitive in the Washington
metropolitan area.
|
Fiscal Year
|
Refuse/Recycling Fee
|
|
|
|
1997
|
$137.72
|
|
1998
|
$160.60
|
|
1999
|
$168.60
|
|
2000
|
$197.64
|
|
2001
|
$219.48
|
|
2002
|
$219.48
|
|
2003
|
$227.92
|
|
2004
|
$232.60
|
|
2005
|
$245.64
|
|
2005 Proposed
|
$248.76
|
Water/sewer service fees As costs have risen, additional funding is
required to sustain the self-supporting Utilities Fund. The water/sewer rate is proposed to increase
by $0.93 to $7.13 per thousand gallons in FY 2006. Arlington's rate continues to be competitive in the Washington
metropolitan area.
Fiscal
Year
|
Water/Sewer
Service Rate*
|
Average Annual
Residential Cost
|
|
|
|
|
1997
|
$4.19
|
$335.20
|
|
1998
|
$4.19
|
$335.20
|
|
1999
|
$4.19
|
$335.20
|
|
2000
|
$4.19
|
$335.20
|
|
2001
|
$4.46
|
$356.80
|
|
2002
|
$4.58
|
$366.40
|
|
2003
|
$4.70
|
$376.00
|
|
2004
|
$5.30
|
$424.00
|
|
2005
|
$6.20
|
$496.00
|
|
2006
Proposed
|
$7.13
|
$570.40
|
*Per
Thousand Gallons; average usage equals 80,000 gallons per year.
Major residential taxes
and fees The following chart summarizes the major residential
taxes and fees for Arlington County for the average household. The chart uses current and proposed tax,
refuse/recycling and water/sewer rates.
|
Summary of Major
Residential Taxes and Fees
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
CY 2002
|
|
CY 2003
|
|
CY 2004
|
|
CY 2005
|
|
'04 to '05
|
|
|
|
|
|
|
|
|
|
|
|
|
Real
Estate Tax
|
|
$2,676
|
|
$3,090
|
|
$3,541
|
|
$4,390
|
|
24%
|
|
Personal
Property*
|
|
564
|
|
590
|
|
613
|
|
590
|
|
-4%
|
|
Annual
Decal Fee
|
|
24
|
|
24
|
|
24
|
|
24
|
|
-
|
|
Refuse
Fees
|
|
228
|
|
233
|
|
246
|
|
249
|
|
1%
|
|
Water/Sewer
Service
|
|
376
|
|
424
|
|
496
|
|
570
|
|
15%
|
|
TOTAL
|
|
$3,868
|
|
$4,361
|
|
$4,920
|
|
$5,823
|
|
18%
|
|
*
Assumes 2 cars per household. Does
not reflect state rebates of PPTRA.
|
The
following chart compares the major residential taxes and fees for the Northern
Virginia jurisdictions for the average household using Calendar Year 2004 rates
and assessments.
|
Calendar Year 2004
Regional Comparison
|
|
Average Annual
Local Taxes/Fees Per
Household
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
City of
|
|
Prince
|
|
|
|
Arlington
|
|
Fairfax
|
|
City of
|
|
City of
|
|
Falls
|
|
William
|
|
Loudoun
|
|
County
|
|
County
|
|
Fairfax
|
|
Alexandria
|
|
Church
|
|
County
|
|
County
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real
Estate 1
|
$3,541
|
|
$4,176
|
|
$3,326
|
|
$3,678
|
|
$3,992
|
|
$4,239
|
|
$4,093
|
|
Personal
Property 2
|
613
|
|
637
|
|
459
|
|
662
|
|
657
|
|
516
|
|
585
|
|
Residential
Consumer Utility 3
|
-
|
|
265
|
|
144
|
|
130
|
|
240
|
|
144
|
|
97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
4,154
|
|
5,079
|
|
3,929
|
|
4,470
|
|
4,888
|
|
4,898
|
|
4,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water/Sewer
4
|
496
|
|
390
|
|
480
|
|
604
|
|
708
|
|
548
|
|
481
|
|
Solid-Waste/Recycling
5
|
246
|
|
240
|
|
n/a
|
|
205
|
|
n/a
|
|
260
|
|
300
|
|
Annual
Decal Fee
|
24
|
|
25
|
|
25
|
|
25
|
|
25
|
|
24
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
4,920
|
|
5,734
|
|
4,434
|
|
5,303
|
|
5,621
|
|
5,730
|
|
5,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
more (less) than Arlington
|
|
$814
|
|
($486)
|
|
$383
|
|
$701
|
|
$810
|
|
$662
|
|
|
|
16.5%
|
|
-9.9%
|
|
7.8%
|
|
14.3%
|
|
16.5%
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Represents
the annual real estate tax bill based on each locality's tax rate at an
average single family home value of $369,600.
|
|
2
Estimate
based upon 2.0 cars per household, and assumes the same average vehicle value
(however, given that Arlington and Loudoun uses a lower assessment valuation,
the actual average vehicle value for Fairfax County and Cities of Alexandria
and Falls Church may be higher).
Taxes do not reflect State rebates.
|
|
3
Average
household utility tax bills are based on the ceiling tax rate.
|
|
4
Rate
for City of Falls Church represents the residents who live inside the City
and pay Falls Church water and sewer rates.
Residents living outside the City pay Falls Church water and Fairfax
sewer rates.
|
|
5
Residents
in Falls Church pay for the solid-waste/recycling fee as part of their real
estate taxes. Loudoun & Prince
William Counties do not offer this service.
Instead, residents pay private haulers, such as BFI, directly. The amounts shown represent the average
fees charged by private haulers.
|
|
|
