Budget Development

FY2022 Budget Development Progress

It’s a busy time of year for all local governments preparing their budgets for the next fiscal year FY22 (July 1, 2021 – June 30, 2022) as well monitoring the progress of the current Fiscal year 2021 (July 1, 2020 – June 30, 2021). At our most recent presentation (starting at 14:00) to Council on March 1 we presented preliminary information on FY21 as well as a preliminary overview of FY22 operating budgets and potential updates to the current Capital Improvement Program (CIP). Download the slides here.

Local taxes comprise of 67% of all revenues so as you can imagine we tend to focus on the performance of these taxes as an early indicator how things may progress for FY22. 

FY2021 current fiscal year performance remains positive with revenues anticipated to come in about $2.1 million above budget projections. Real Estate is performing very well driven by home sales and improvements but our biggest surprise is how well Transient Occupancy Tax has made an earnest recovery despite the continuing pandemic.

FY2022 local taxes estimates are about $203.8 million which is $2.1 million greater than FY2021 revenue budget. Most of the growth is in Real Estate, Sales and Transient Occupancy Tax while we expect other revenues to decline or hold steady. Of the $2.1 million growth, about $1 million is shared with other organizations such as RCPS, Visit Virginia Blue Ridge and Neighborhood Districts and only $920,000 would stay with the City. These projections are very preliminary and will certainly change as we continue to refine our estimates.

The March 1 Council Briefing provides a first glimpse at budget balancing efforts. Supplemental requests included so far total about $6.4 million of which $4.6 million are considered non-discretionary. Revenues and expenditures may appear balanced at $301.3 million but we must also acknowledge this does not include a very important pay-raise. 

The March 1 Council Briefing also provides an update to the CIP and identifies projects not yet funded. We will continue to evaluate debt models and project feasibilities to provide another update to the CIP on April 5.

A third component to this briefing included an update on our Enterprise Funds (Parking and Berglund Ctr) and a Stormwater briefing was provided following the budget update.

Aside from just evaluating numbers and trends and future funding needs, this year we are also incorporating into the budget process an Equity and Empowerment focus. We have asked all Directors to submit their budget requests while simultaneously answering questions in three key areas which will then be evaluated by Equity Teams. Those three questions are as follows:

Does the request advance equitable outcomes for residents and/or advance or improve upon an identified neighborhood or community asset? If so, how? If not, could it be adjusted to do so? How?
Does the request burden or benefit communities of color and/or low-income individuals or neighborhoods?  If so, how? Could it be adjusted to avoid or mitigate the burden and/or to realize a benefit?  How?
Does the request help reduce an identified disparities? If so, how? If not, could it be adjusted to do so?  How?

To keep up-to-date on progress of the FY22 budget season including past presentations and future ones including the new format of Facebook and Zoom Town Hall Meetings, continue to monitor this page.

On January 29, 2021 our first Townhall meeting was held to highlight the Real Estate Assessment process and historical trends in this very vital revenue item for the City. Real Estate tax revenues account for 30% of all General Fund Revenues (of which 40% goes directly to the Schools). To view this very informative meeting click here with the slides here.

Our next Town Hall will cover the Capital Improvement Program to follow-up with what was discussed at the March 1 Council Briefing.

  1. FY2022
  2. FY2021
  3. FY2020
  4. FY2019

Important Dates, Presentations and Official Documents

  • December 1, 2020: City Council Budget Planning Workshop (pdf)
  • December 4, 2020: City Leadership Budget Kickoff meeting
  • December 21, 2020: Priority Indicators and Performance Measures Document (PDF) available (shows FY 2020 results)
  • January 4, 2021: City Council Real Estate Briefing: watch at 1:06:30 / slides (pdf)
  • January 29, 2021: Real Estate Town Hall: watch / slides (pdf)
  • February 1, 2021:City Council Financial/Budget Planning Work Session: watch at 14:00 / slides (pdf)
  • March 1, 2021: City Council Financial/Budget Planning Work Session watch at 14:00 / slides (pdf)
  • TBD: Capital Improvement Program Town Hall
  • TBD: FY22 Budget Development Town Hall
  • April 5, 2021: City Council Financial/Budget Planning Work Session
  • April 19, 2021: Recommended Budget presentation to City Council and Recommended Budget Document, Budget at a Glance is available.
  • April 27, 2021, 7:00 PM: Public Hearing on recommended budget and tax rates
  • May 3, 2021: Budget Study
  • May 10, 2021: City Council adopts budgets and update to the HUD Consolidated Plan  and approves an annual appropriation ordinance and Capital Improvement Plan ordinance
  • June 21, 2021: Adopted Budget Document is available