Fairfax County FY 2022 Budget
Pay Raises, Affordable Housing & Trust Policy Top the Highlights.

HIGHLIGHTS

• Includes funding for 1% pay increase for county employees.
• $15 million more for Fairfax County Public Schools to support compensation increases.
• Budget guidance addresses FCPS, strategic plan, affording housing, compensation and more.

The Fairfax County Board of Supervisors approved the FY 2022 Advertised Budget mark-up package including the addition of a 1% pay increase for county employees, $15 million more for the Fairfax County Public Schools Operating Fund transfer to support compensation increases for FCPS employees, and funding to provide salary supplements for state employees, including Office of the Public Defender support staff and probation and parole officers. The budget maintains the one-cent tax rate reduction proposed in the original FY 2022 Advertised Budget Plan, down from $1.15 in FY 2021 to $1.14 in FY 2022.

Higher Revenue, Reserve Fund Help Balance Budget
The additional expenditures are offset by net revenue adjustments over the FY 2022 Advertised Budget Plan estimate including higher than expected:

• Business, Professional and Occupational License revenue, $170,000,000, an increase of $8 million
• Revised estimate for Current Personal Property Tax receipts is $639,574,785, an increase of $0million.
• Revised estimate for Land Development Services building and Inspection Fees is $40,317,160, an increase of $8 million.
• Revised estimate for the Consumer Utility Taxis $44,940,753, a decrease of $0.7million
• $20 million Economic Recovery Reserve, resulting in a balanced FY 2022 Budget.

With additional resources required to staff the planned opening of new facilities, support necessary to continue initiatives such as the Diversion First program and Opioid Task Force, and baseline funding needed to support the Body Worn Camera program and pandemic response efforts, the proposed budget includes several adjustments that allow the county to move forward on community priorities.

Budget Guidance for FY 2022 and 2023:  The board also provided Budget Guidance for FY 2022 and FY 2023 that addresses:

• Funding for FCPS - Which should increase equally with county disbursements and include opportunities for collaboration between the county and schools.
• The Countywide Strategic Plan, on which the board stressed the need for appropriate feedback opportunities for the community. Board action on the plan is scheduled for October.
• Employee Pay – Staff was directed to return to the Board if an opportunity becomes available for an additional one-time bonus in FY 2022, either through county or federal stimulus funds. The guidance also described full compensation program funding for FY 2023 as “imperative.”
• Affordable Housing – The County Executive was directed to set aside the equivalent of at least one-half cent on the Real Estate Tax rate (in addition to the current half-penny) for the next two fiscal years – through county dollars or through the maximization of federal stimulus funds, where possible – to address preservation and development goals for affordable housing. The Affordable Housing Preservation Task Force established in July 2020, identified three preservation goals and the County Executive has been directed to return to the board this fall with a plan to implement those goals, including appropriate resources in FY 2022 and FY 2023.
• Trust Policy – The County Executive was directed to develop a comprehensive plan to ensure that the county is a welcoming community for immigrants, including the establishment of a position as the county’s first Immigrant Community Liaison.
  
  

Fairfax County Public Schools (FCPS):
In addition to the $3.1 billion dollar operating budget and additional sums for retirement contributions and building improvements, this past year’s General Assembly session, a bill was signed which mandates that FCPS shall provide at least three specialized support positions per 1,000 students, with these positions including school social workers, school psychologists, school nurses, licensed behavior analysts, licensed assistant behavior analysts, and other licensed health and behavioral positions. The County’s School Health model utilizes Public Health nurses, who are counted for in the calculation as a specialized support positions, as well as School Health Aides, who are not included in the calculation. Although the School Health program staff provide services within FCPS settings, the Public Health Nurses and School Health Aides who make up a majority of the staffing are budgeted for and managed by the County’s Health Department. Thus, it is necessary for the County and Schools to work together to develop recommendations regarding the most appropriate School Health model to meet student needs and ensure compliance with the new mandate. This review should include an analysis regarding the distribution of state funds available to offset County costs. Initial recommendations should be brought before the Board as part of the FY 2021 Carryover Review, with baseline funds built into the FY 2023 budget as appropriate.

Employee Pay:
The County has supported employees by providing additional types of leave for those unable to work, expanding telework options to allow many of our employees to work from the safety of their own homes, and creating a job matching program to place those employees who needed work with agencies in need of more workers.

The county has also been able to provide bonuses to Health Department employees and hazard pay to those employees whose jobs put them at a high risk of exposure to COVID-19.While these actions have helped employees manage the stresses and uncertainties of the pandemic, employee pay has been stagnant as the adjustments originally included in the FY 2021 advertised budget were eliminated, and no compensation increases were included in the County Executive’s FY 2022 proposal. Consequently, these one-time bonuses to County employees for FY 2021 and to a 1 percent pay increase for FY 2022 are being provided.

County staff is directed–as they have over the last year –to return to the Board if there is an opportunity to provide an additional one-time bonus to County employees in FY 2022–using either County funds or federal stimulus funds. The County’s full compensation program is to be prioritized as part of the FY 2023 budget.

Affordable Housing:
A priority is to preserve and expand the availability of affordable housing in Fairfax County. To develop recommendations to help us succeed in that endeavor, the Affordable Housing Preservation Task Force was established in July 2020. The Task Force was charged with developing definitions for the types of preservation that can occur in communities; a typology of properties at risk and characteristics to guide prioritizing properties or neighborhoods in need of action sooner; and a comprehensive set of preservation strategies that includes recommended policies and tools to achieve the County’s aspirational goal of no net loss of affordability.

Earlier this month, the Task Force presented its report at part of the Board’s Housing Committee. In addition to reaffirming the preceding recommendations of the Affordable Housing Resources Panel (AHRP), the Task Force recommended three preservation goals:

▪Goal 1: Preserve the affordability of approximately 9,000 market affordable multifamily units at 60% AMI and below through a combination of preserving physical assets that contain affordable housing and preserving the affordability in redevelopment scenarios.

▪Goal 2: Preserve the affordability of existing committed affordable multifamily buildings and units when affordability covenants are set to expire.

▪Goal 3: Preserve through a combination of means the affordability of the approximately 1,750 housing opportunities that exist in manufactured housing communities.

To allow the county to make progress towards these goals, the County Executive is directed to return to the Board with a plan to respond to these recommendations in the Fall of 2021, including the dedication of appropriate resources in the FY 2023 proposed budget, consistent with Task Force recommendations. Additionally, consistent with guidance approved by the Board in April 2019, we should not lose sight of the importance of developing new affordable housing units in addition to preserving existing ones, in order to meet the 15-year goal of producing at least 5,000 new affordable units.

A commitment remains to the dedication of an additional penny on the Real Estate Tax rate, as initially proposed as part of the FY 2021 budget. Therefore, as part of quarterly reviews in FY 2022 and the FY 2023 proposed budget, the County Executive is also directed to set aside the equivalent of at least one-half cent on the Real Estate Tax rate (in addition to the current half-penny) for the next two fiscal years–through County dollars or through the maximization of federal stimulus funds, where possible –to address our preservation and development goals for affordable housing.  

Trust Policy: 
On January 26, 2021, the Board of Supervisors approved a Trust Policy for Fairfax County government. The Board values the contributions of immigrants to our County’s economy and social fabric. To better understand and address the unique challenges facing the County’s immigrant community, the Board directs the County Executive and Chief Equity Officer, with the involvement of the community, to develop and implement a comprehensive, countywide plan for ensuring that Fairfax County is a welcoming community for immigrants.

The plan, with short-and long-term strategies, should include a timeline and estimated costs for elements such as building staff capacity and infrastructure, monitoring progress, and ensuring the full implementation of the Trust Policy, a key priority of the Board of Supervisors. To support this work, it is further directed that, using existing resources, the County Executive identify a position to serve as the County’s first Immigrant Community Liaison, under the leadership of the County’s Chief Equity Officer and embedded in the Office of the County Executive.

This position will work with County departments to address specific immigrant community concerns and, as necessary, adapt current County practices to ensure County staff and departments are aware of and are following this new policy. Further, the position will work with the community, stakeholder groups, nonprofits, and interfaith organizations to create strong networks that facilitate coordination and the connection of Fairfax County’s immigrant community to the information, resources, and services that will support their success.

Environmental and Energy Initiative:
The Board of Supervisors has long supported policies, programs, and initiatives that advance environmental sustainability in Fairfax County. In keeping with the Environmental Vision, the County’s guiding policy on the environment, the Board considers environmental stewardship and the prudent management of natural resources to be among its fundamental responsibilities and essential to ensuring a high quality of life for all living and working in the County. Fiscal resources for environmental, energy, and climate projects are often prioritized by the Board, particularly in the last several years as the County has ramped up its efforts to respond to the ongoing climate crisis. In adopting the Operational Energy Strategy in 2018, the Board committed to a 10-year multi-million-dollar effort to fund projects to reduce the County’s energy consumption and corresponding greenhouse gas emissions, including building efficiency improvements, the conversion of streetlights to LED technology, and the transition of the County’s fleet to electric vehicles.

This effort is being supplemented with initiatives to achieve net zero goals, including the implementation of on-site renewable energy generation, the design and construction of net zero energy (NZE) buildings, and actions intended to achieve zero waste. In addition, the Board has allocated close to $1.4 million in recent years for the development of a Community-wide Energy and Climate Action Plan (CECAP) and Climate Adaptation and Resilience Plan, both of which will help the County better understand, prepare for, and mitigate local climate impacts. Considerable resources have also been allocated in recent budget cycles to projects that support environmental stewardship in the greater community, including additional funding as part of the 11DRAFT 4-23-2021FY 2022 budget. Additional resources to begin implementation of the County’s Green Bank and Zero-Waste initiatives were also approved as part of the FY 2021 Third Quarter Review. There will be a sustained need for resources for environmental, energy, and climate programs and projects as we head into FY 2023, as the County continues to develop and implement operational and community-wide initiatives in these fields. As a Board, the consideration and prioritization of these resources is essential as we work to carry out the objectives in the Environmental Vision and provide leadership on key environmental issues.

Stimulus Funding:
Through the $200.2 million received through the CARES Coronavirus Relief Fund, reimbursements received through the Federal Emergency Management Agency (FEMA), and other federal stimulus awards, Fairfax County has been able to respond quickly and effectively to our community’s needs throughout the COVID-19 pandemic.

The Board of Supervisors is hopeful that the $222.56 million in anticipated funds through the American Rescue Plan Act (ARPA) will be able to provide continued support, including assistance to our most vulnerable residents and aid to County businesses who are struggling to recover from the pandemic. Throughout this past year, staff has kept the Board abreast of the various funding resources available, providing monthly updates on spending guidelines, awards received, and funds expended for each initiative. It is expected that these updates will continue when the County’s ARPA funds are received. Additionally, following the County’s financial policies, as these funds are one-time in nature, they should be prioritized for one-time spending requirements so as not to create future budgetary pressures.

Increase in Fees:

• An increase in the Refuse Collection fee from $370to $400per household. It should be noted that this rate was reduced last year from $385 per household based on the inability to provide yard waste collection during the pandemic.
• An increase in Sewer Service Charges from $7.28 to $7.72 per 1,000 gallons
• An increase in the Sewer Service Base Charge from $32.91 to $36.54 per quarter
• An increase in the Sewer Availability Charge from $8,340 to $8,507

Land Development Services:
Reoccurring adjustment included as part of the FY 2021 Third Quarter Review, $2,796,273 is claimed to be required in FY 2022 to support the Land Development Services Customer Experience Team and other workload requirements on an ongoing basis. Due to the COVID-19 pandemic, LDS business areas have pivoted from in-person interactions to complex virtual exchanges.  LDS has shifted to 100 percent all electronic submission for permits and plans including online payment processing. As a result, the number of phone calls received has increased exponentially. Funding was added as part of the FY 2021 Third Quarter Review for a Customer Experience Team (CET) to mitigate the challenges and provide top-notch customer service experience to LDS customers who need navigation through the system. The 5 new positions, including 2 Engineering Aides, 2 Engineering Technicians I, and 1 Administrative Assistant III.  Based on the recommended FY 2021 adjustments, funding of $396,273, including $266,774 in Agency 31, Land Development Services, and $129,499 in Agency 89, Employee Benefits, is required in FY 2022.

Funding was also added as part of FY 2021 Third Quarter Review to address development regulation workload requirements associated with increasing site plan and building permit activity and to support contracted elevator safety compliance. Based on the recommended FY 202 1 adjustments , funding of $2,400,000, including $2,000,000 in Agency31, Land Development Services, and $400,000 in Agency 89, Employee Benefits, is required in FY 2022.

The guidance also addresses funding for transportation and site studies ($800,000), analysis and research to implement a Green Bank ($300,000), development and implementation of a zero waste plan ($100,000) and funding for relaunch of Celebrate Fairfax ($250,000).

 

 

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