FY 2020 Proposed Budget Revenue Work Session February 19, 2019 - - PowerPoint PPT Presentation

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FY 2020 Proposed Budget Revenue Work Session February 19, 2019 - - PowerPoint PPT Presentation

Oct 21, 2023 426 likes •680 views

FY 2020 Proposed Budget Revenue Work Session February 19, 2019 Highlights No change in real estate tax rate of $1.13 No change in personal property tax rates $5.00/ $100 of assessed value (vehicle) $4.75/ $100 of assessed value

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SLIDE 1

FY 2020 Proposed Budget

Revenue Work Session

February 19, 2019

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SLIDE 2

Highlights

  • No change in real estate tax rate of $1.13
  • No change in personal property tax rates
  • $5.00/ $100 of assessed value (vehicle)
  • $4.75/ $100 of assessed value (business

tangible personal property)

  • No change in other tax rates
  • Meals tax revenue grew 2.4% above the

rate increase during July – December time period

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SLIDE 3

Enterprise Funds

  • Fees = 100% of expenses
  • No change in sanitary sewer or

stormwater rates

  • Sanitary sewer = $2.28 per 1,000 gallons
  • Stormwater = $140 per year for average single

family house

  • + 9% change in residential refuse rate
  • From $373 to $406 per household per year
  • Market cost increases seen in rebids
  • Recycling standards changed in China

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SLIDE 4

FY 2020 Proposed General Fund Revenue

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Residential Real Property 34.6% Commercial Property 14.7% Multi‐Family Rental Property 11.5% Personal Property 7.0% Sales Tax 3.8% Utility Tax 1.6% Business License Tax 4.6% Recordation Tax 0.8% Transient Lodging 1.6% Restaurant Food 3.2% Communications Sales Tax 1.2% Other Local Taxes 1.6% Federal Revenue 1.2% State Revenue 6.3% Other Revenue 6.4%

$761.1 M (+$12.6 M or +1.7%)

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SLIDE 5

General Fund Revenue

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FY 2018 FY 2019 FY 2019 FY 2020 $ Chg % Chg General Fund Revenue Actual Approved Projected Proposed FY20 Proposed/ FY19 Approved FY20 Proposed/ FY19 Approved General Property Tax Revenue Real property tax 438.3 447.0 450.2 462.8 15.9 3.6% Personal property tax 49.2 50.8 51.3 53.1 2.3 4.5% Penalties and Interest 2.6 3.3 2.7 2.7 (0.6) ‐17.9% Total general property tax revenue 490.2 501.1 504.3 518.6 17.6 3.5%

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SLIDE 6

CY 2019 Real Estate Assessed Values

6 Classification % Change from CY1 8 Residential Single Family + 1.76% Residential Condo + 3.06 Total Residential + 2 .0 4 Commercial Multi-family + 4.09 Commercial Office, Retail & Service + 3.60 Total Com m ercial + 3 .5 8 Non-locally Assessed + 3.92 Total Taxable Property + 2 .7 1 %

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SLIDE 7

Real Estate Tax Rates

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  • Alexandria $1.13 residential and commercial
  • FY 2020 proposed
  • No change from FY 2019 approved
  • Arlington $1.006 residential/ $1.131 commercial
  • FY 2019 approved
  • Fairfax County $1.151 residential/ $1.276 commercial
  • FY 2020 proposed
  • Loudoun County $1.045 residential and commercial
  • FY 2020 proposed
  • Prince William County $1.2075 residential and commercial
  • FY 2020 proposed
  • Includes countywide fire and pest control levies
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SLIDE 8

Impact on the Average Residential Real Estate T ax Bill

8 Average Assessed Value Average Tax Bill CY 2018 $544,601 $6,154 CY 2019 $555,002 $6,272 Difference + $ 1 0 ,4 0 1 + $ 1 1 8 / year + 3 2 cents/ day

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SLIDE 9

Real Estate Tax Deferral Expansion

  • Deferrals Currently Part of Tax Relief

Program for Elderly & Disabled:

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Existing Program Minimum Age Requirement: 65 years old, or permanently and totally disabled Maximum Allowable Net Assets: $430,000 Dwelling: Must be the applicant’s sole dwelling Allowable Gross Income Available Relief Income $40,000 and less 100% Exempt $40,001 - $ 55,000 50% Exempt, Can defer all or part of taxes over 50% $55,001 - $ 72,000 25% Exempt, Can defer all or part of taxes over 25% _____________________________________________________________________________ New FY 2020 Proposal: Additional Stand-alone Deferral Program Maximum Allowable Gross Income Max Allowed Net Assets $72,001 - $100,000 $430,000 Deferral Only, Liability Due and Payable With Interest Upon Death or Transfer. Same age/disability requirements.

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SLIDE 10

Tax Deferral Expansion

  • Circuit breaker to facilitate aging-in-place
  • Change acreage exemption from 2 acres

to 1 acre

  • Nominal fiscal impact anticipated

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SLIDE 11

Delinquent Tax Collection Outsourcing

  • Outsourcing delinquent collections of Real Estate,

Business Personal Property, and unpaid Parking Tickets

  • No Cost to City. State law allows 20% fee charged to

Delinquent Taxpayer

  • Builds upon successful outsourcing of Delinquent Car

Taxes

  • Finance retains complete program oversight and control
  • Continued focus on Customer Service. Payments plans

available for financial hardship

  • Helps maximize collection efficiency, enhances collection
  • f delinquent taxes and tickets.
  • Estimated gain of $341,000 offsets new Discovery

efforts associated with Decal Elimination

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SLIDE 12

Elimination of Vehicle Tax Decals

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  • · Eliminate annual decal

display requirement for vehicle windshield

  • · Proposed to be effective

for 2020 · Maintains local registration fee, $3.8 million in FY 2020

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SLIDE 13

Decal Elimination Statewide

· 76% of all Virginia localities have already abolished decal display requirement: · 94% of all counties · 87% of all cities · 60% of all towns · Norm throughout is to retain local registration fee as permitted by State law

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SLIDE 14

Decal Elimination, NOVA

  • Only the Cities of Alexandria, Fairfax

and Falls Church still require decal display

  • Loudoun County abolished decal in

2018

  • Arlington County planning to abolish

decal in 2020

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SLIDE 15

Decal Elimination, Customer Service

  • Improves customer service and

streamlines tax process for nearly 140,000 taxpayers each year

  • Eliminates affixing & scraping decals
  • Ends nuisance tax of $1.00 for decal

transfer (shards of previous decals had to be returned to Finance upon vehicle disposal)

  • Fewer walk-ins and better telephone call

coverage anticipated

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SLIDE 16

Decal Elimination, Collections

  • Decals initially established to ensure

collection; no longer an essential need

  • Localities have many other tools: DMV

Holds, State Income Tax Set-Off Debt, Bank Liens, Wage Liens, Boots, Tows, and Referral to Collection Agency

  • Most taxpayers are honest and comply

with law, avoiding penalties and collection hassle

  • Continued strong collection rates

anticipated- the norm in jurisdictions abolishing decals

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SLIDE 17

Decal Elimination, Discovery

  • In lieu of decals, Finance to deploy License Plate Reader

(LPR) technology. Automated match to Tax Roll to identify and research exceptions (used in Arlington/ Falls Church)

  • Adds 2.0 FTE’s, more discovery field work and research
  • LPR will enhance delinquent tax and parking ticket

collections (levy stickers/ boots)

  • LexisNexis data analytics project boosts taxation of

non-registered vehicles with out-of-state plates

  • Improves capacity of Parking Enforcement Officers by

Finance assuming tax enforcement

  • Revenue neutral: decal expenditure reductions,

enhanced discovery, levy stickers, and collection

  • utsourcing anticipated to cover costs, including

elimination of “No Decal” citations

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SLIDE 18

General Fund Revenue

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FY 2018 FY 2019 FY 2019 FY 2020 $ Chg % Chg General Fund Revenue Actual Approved Projected Proposed FY20 Proposed/ FY19 Approved FY20 Proposed/ FY19 Approved Other local tax revenue Local sales tax 27.3 27.7 27.7 28.7 1.0 3.6% Utility tax 12.1 11.8 12.0 12.0 0.2 1.7% Business licenses 33.8 34.9 34.9 34.9 ‐ 0.0% Motor vehicle licenses 3.7 3.8 3.8 3.8 0.0 1.2% Recordation 7.4 5.3 6.0 6.0 0.7 13.2% Cigarette 2.8 2.8 2.8 2.8 ‐ 0.0% Transient Lodging 12.9 13.3 12.4 12.4 (0.9) ‐6.6% Restaurant food 18.3 24.2 23.5 24.0 (0.1) ‐0.6% Admissions 0.7 0.7 0.7 0.7 ‐ 0.0% Communications service 9.9 9.9 9.3 9.3 (0.6) ‐6.1% Other miscellaneous 4.7 4.7 4.7 4.8 0.1 1.4% Total other local tax revenues 133.4 139.0 137.8 139.4 0.4 0.3%

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SLIDE 19

General Fund Revenue

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FY 2018 FY 2019 FY 2019 FY 2020 $ Chg % Chg General Fund Revenue Actual Approved Projected Proposed FY20 Proposed/ FY19 Approved FY20 Proposed/ FY19 Approved Non‐tax revenue Licenses, permits, and fees 2.2 2.6 2.6 2.6 0.0 0.1% Fines forfeitures 5.0 5.2 5.2 5.1 (0.1) ‐1.2% Use of money and property 7.3 8.0 10.2 11.1 3.1 38.3% Charges for services 21.3 21.7 21.9 15.6 (6.1) ‐28.1% Intergovernmental revenues (PPTRA ) 23.6 23.6 23.6 23.6 ‐ 0.0% Intergovernmental revenues 33.0 33.4 32.7 33.6 0.2 0.6% Miscellaneous 1.6 1.9 1.9 2.1 0.2 12.0% Total non‐tax revenue 94.1 96.4 98.1 93.7 (2.7) ‐2.8% Other financing sources (uses) Appropriations to/from Fund Balances ‐ ‐ ‐ ‐ ‐ 0.0% Contribution to/Use of Fund Balance ‐ ‐ ‐ ‐ ‐ 0.0% Transfer from special revenue acct. 10.7 11.9 11.9 9.3 (2.6) ‐22.2% Total Transfers In 10.7 11.9 11.9 9.3 (2.6) ‐22.2% Total General Fund Revenues and Other Sources 728.4 748.4 752.0 761.1 12.6 1.7%

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SLIDE 20

RPCA Fee Increases

City Marina - $42,617

  • Pleasure Boat Slip License Fee* : $21,211
  • Commercial Docking Fee* : $5,250
  • Marina Outdoor Dining Lease* : $1,156
  • Tall Ship Providence Docking Fee: $15,000
  • The proposed fee is providing a 50% discount on the

annual rate consistent with the proposed rental discount for Affiliates/ Partners/ Community Service providers.

* The City Marina is a Tier 5 service in the City Council Adopted Resource Allocation and Cost Recovery Policy.

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SLIDE 21

RPCA Fee Increases - continued

Program & Services: $104,514

  • Private School Athletic Field Use: $80,000
  • Increase the fee paid by private schools to $115/ h, the full

non-discounted hourly rate for usage. Previously, private schools paid 50% of the adopted fee

  • Tier 5 service in the City Council Adopted Resource

Allocation and Cost Recovery Policy.

  • Tennis Court Rental Fee: $4,000
  • Fee to $10/ hour for residents and $15/ hour for non-

residents

  • Tier 5 service in the City Council Adopted Resource

Allocation and Cost Recovery Policy.

  • Out of School Program Fee: $20,514
  • 3% increase to offset increasing expenditures.
  • Tier 2 service in the City Council Adopted Resource

Allocation and Cost Recovery Policy.

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SLIDE 22

Transportation & Environmental Services Fee Increases

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Parking Revenues:

  • Increase number of blocks eligible for Pay-by-

Phone program (+ $120,000), if approved

  • Add 3-5 blocks for annual growth of meter

program (+ $15,000), if approved

  • Adjust meter time limits to better meet

demand (+ $16,000)

  • Additional revenue due to lower credit card

fees by Parkmobile (+ $16,000)

  • Increase Motorcoach parking fees at the

Masonic Temple by $5 from $40 to $45 (overnight) and $15 to $20 (daily) (+ $6,000)

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SLIDE 23

General Services

Monthly Parking Fee Increases - $55,920

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  • City Em ployee Monthly Parking Fee -

$ 1 5 ,4 8 0 additional revenue

  • Increase from $130 to $140 per month ($10 increase)
  • Approximately 129 employees
  • Public Parking Monthly Parking Fee -

$ 4 0 ,4 4 0 additional revenue

  • Increase in public monthly parking fee across four City-
  • wned parking facilities
  • 316 public monthly parking accounts