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Posted on: May 9, 2017

Vienna Council adopts $36.3 million budget, maintains level tax rate

Vienna Town Council approved last night a $36.3 million operating budget, including a $24.2 million general fund budget, for fiscal year 2017-18, which begins July 1. The $36,337,460    FY18 budget is 7% more than last year’s budget – 3.9% more when increases due to accounting changes for the Town’s vehicle capital lease program are excluded.

The Town’s real estate tax rate remains the same as last year at $0.225 per $100 assessed value. The Town’s tax rate has remained the same or been reduced for the past seven years.

“It’s important to our Councilmembers and staff that Vienna citizens receive a high level of service at a good value for their taxes paid,” says Town Manager Mercury Payton. “We’re really pleased that good management by our department heads and modest revenue growth have allowed the Town to hold or decrease its property tax rate since 2012. At the same time, this budget provides the Town with the ability to address some long-term needs, such as upgrading our email system, and to provide appropriate compensation for our hard-working staff.”

The new budget includes $397,000 in additional expenses to cover a 3.1% increase in Town salaries – 1.1% in market adjustment and 2% in pay-for-performance raises. A classification and compensation study undertaken recently indicated that Town pay grades, in some cases, lagged the comparable market, although most employees are paid within appropriate ranges because of their longtime service.

The FY18 budget includes funding for two new positions – one in the Planning and Zoning Department and an events coordinator in Parks and Recreation – as well as expanded hours for a parks and recreation customer care specialist. Positions in the Parks and Recreation Department will be funded as increased revenues anticipated from re-opening of the Vienna Community Center are realized.

Other increases in expenses in the FY18 budget include a $104,900 bump in health insurance costs and $120,000 increase in landfill fees. New expenditures for community enhancement and public art programs, Chillin’ on Church event expenses, and additional asphalt overlay are included.

On the revenue side, additional funds are expected to be generated through tax revenues due largely to increased property values, state road support funds, water and sewer developer fees, and parks and recreation fee revenue as well as an increase in the tobacco tax from $0.75 to $0.85 per pack, an increased transfer from the water and sewer fund of $50,000, and use of $116,000 in general fund reserves.

The Town’s FY18 overall budget is separated into four funds:

  • General Fund               $24,207,310
  • Water & Sewer Fund   $8,123,760
  • Debt Service Fund       $3,623,560
  • Stormwater Fund         $382,830


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