Town Manager's Proposed Fiscal Year 2024 Budget Overview
The Town Manager's Proposed Fiscal Year 2024 Budget includes a total of $6,927,595 allocated across various funds, with an increase of $1,324,672 from the previous year. Key focus areas include personnel, asset management, future capital investment, grant funding, and maintaining service levels. The General Fund budget shows increases in personnel expenses and contractual services, offset by the elimination of certain grants and contributions. Revenue sources for the General Fund are expected to increase from real estate taxes, consumer taxes, investment interest, and administrative overhead.
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Town Managers Proposed Fiscal Year 2024 Budget & Fiscal Year 2024- 2028 Capital Improvement Plan February 23, 2023 Town Manager Jason Cournoyer
Budget Overview: Proposed FY 2024 Budget ALL FUNDS % OF TOTAL FY 2024 BUDGET $6,927,595 The Fiscal Year 2024 Proposed Budget for all funds totals $6,927,595. Event Fund, 4.3% General Fund, 25.5% Utilities Fund, 36.3% This represents an overall increase of $1,324,672 or 23.6 percent. The table below illustrates the FY 2023 v. FY 2024 Proposed Budget by Fund. General Government Capital Projects Fund, 32.8% FY 2023 Adopted FY 2024 Proposed FY 2023 v FY 2024 Fund $ Change % Change General Fund General Government Capital Projects Fund Utilities Fund $1,748,287 $1,764,120 $15,833 0.9% $1,233,500 $2,330,000 $1,096,500 88.9% $2,344,486 $2,532,225 $187,739 8.0% Event Fund $276,650 $301,250 $24,600 8.9% Total Expenditures $5,602,923 $6,927,595 $1,324,672 23.6% February 23, 2023
Overall Budget Themes/ Focus Areas PERSONNEL Proposed 1%COLA and 3.5% Merit Market Study ($5,000) and 4% Salary Adjustment Funding Placeholder ($21,000) Continue to lag behind other local govts in Region. Other localities are providing 7-8% annual increases. ASSET MANAGEMENT $100,000 Contribution to Capital Asset Replacement Reserve for Future General Government CIP FUTURE CAPITAL INVESTMENT- GRANT FUNDING $50,000 for Conceptual Design Work on future CIP projects for Enhanced Grant Funding Applications Assistance with Grants ($35,000 in General Fund and $15,000 in Utilities Fund) MAINTAIN CURRENT SERVICE LEVELS Washington-Baltimore Region Inflation (5.6%: Oct 2021-2022) Efficient Water and Sewer Operations FUND OPERATING WITH EQUALIZED RATES General Fund Operating fully funded at Equalized RE rate (14.6 ) Water/Sewer Rates keep pace with operating expense increases February 23, 2023
Fiscal Year Fiscal Year 2024 2024 General General Fund Fund February 23, 2023
General Fund Budget Allocation by Category The Proposed Fiscal Year 2024 Budget for the General Fund totals $1,764,120 or an increase of $15,833 or 0.9%. Increases in the General Fund budget is attributed to: Personnel (salary and benefit adjustments) Contractual Services Cost Increases (Recycling/ Refuse, CIP concept designs and grants, Town website design, new holiday streetlight decorations) Decreases offsetting is the elimination of ARPA Grant funding of $100,000 and a decrease in CIP contribution of $122,500 ($57,000 in FY 2024 vs. $179,500 in FY 2023) February 23, 2023
General Fund Revenue Sources Increases in the General Fund estimated revenues are attributed to: Real Estate Taxes ($87,423) Consumer Taxes ($27,426) Investment Interest ($6,500) Administrative Overhead ($29,984) WHERE GENERAL FUND REVENUE COMES FROM... Use of Reserves/ Fund Balance, $0, 0% Inter-Fund, $200,600, 12% State and County, $17,750, 1% Permits, Fees, Reimburements, $19,000, 1% Property Taxes, $815,641, 46% Decreases in revenue include: Use of Unassigned Fund Balance ($24,250) ARPA Funding ($100,000) Local Taxes, $711,129, 40% February 23, 2023
Real Estate Taxes One of the Town Council s recurring tenets is to maintain equalized tax rates and established user fees. Equalized tax rates are intended to collect the SAME amount of revenue from the SAME parcels in the following year. Real estate property taxes are collected semi-annually, half in June and half in December. The 2023 tax rate impacts the current fiscal year, as tax year 2023 (calendar year) overlaps both Fiscal Year 2023 (June 2023 payment) and Fiscal Year 2024 (December 2023 payment). February 23, 2023
Proposed Real Estate Tax Rate The projected value per 1 of Real Estate Tax Rate is $50,193. The Town s977 residential units make up 97% of the 1,012 total taxable parcels in the Town. Residential re-evaluation for 2023 increased 11.3% overall over 2022 for an average assessment of $484,570, or an increase of $50,493. The Proposed Fiscal Year 2024 General Fund budget is based on an unchanged real estate tax rate of 16.25 for the proposed operating and debt costs. The calculated residential equalized tax rate is 14.6 which comparatively is a decrease of $83,100 in expected FY 2024 General Fund revenue compared to the proposed tax rate of $16.25 . February 23, 2023
PROPOSED VS. EQUALIZED Tax Rate The Proposed Budget includes $83,100 in additional revenue based on a proposed 16.25 rate versus the Equalized of 14.6 . ALL FISCAL YEAR 2024 GENERAL FUND OPERATING, DEBT AND GENERAL GOVERNMENT CAPITAL EXPENDITURES ARE FULLY FUNDED AT THE EQUALIZED TAX RATE. IMPROVEMENT PLAN The additional funding is proposed to be utilized for a contribution to the Capital Asset Replacement Reserve for: FUTURE CIP requirements Matching Grant Funding Available for any emergency capital expenses February 23, 2023
Tax Bill Comparisons for Varying Tax Rates CURRENT TAX RATE 16.25 CURRENT TAX RATE 16.25 EQUALIZED TAX RATE 14.6 2022 2023 Variance 2023 Variance Average Assessment Average Tax Bill Average Assessment Average Tax Bill Average Assessment Average Tax Bill Housing Type Annual Monthly Annual Monthly Single Family Detached $490,004 $796.26 $547,095 $889.03 $92.77 $7.73 $547,095 $798.76 $2.50 $0.21 Townhome $337,321 $548.15 $367,517 $597.21 $49.07 $4.09 $367,517 $536.57 ($11.57) ($0.96) All Residential $ 434,778 $ 706.51 $484,570 $ 787.43 $ 80.91 $ 6.74 $ 484,570 $ 707.47 $ 0.96 $ 0.08 The proposed tax rate, on average, results in an annual tax bill $80.91, or just under $6.75 per month more compared to the 2022 tax bills and the equalized tax rate. February 23, 2023
Fiscal Year Fiscal Year 2024 2024- -2028 2028 Capital Capital Improvement Improvement Plan Plan- - General General Government Government February 23, 2023
General Government: Capital Improvement Plan SEVEN General Government projects are underway in Fiscal Year 2024 and total $2,330,000. FY 2024 GENERAL GOVT- CAPITAL PROJECTS FUND EXPENDITURES $2,305,000 BROAD WAY IMPROVEMENTS PHASE 2A, 59.7% S CHURCH/E PENN IMP., 21.6% TOWN CLOCK TOWER REHABILITIATION, 0.2% QUARTER BRANCH BARN IMPROVEMENTS, 0.9% LOVETTSVILLE ENTRY SIGN, 0.3% LOUDOUN ST / S LOCUST IMPROVEMENTS , 15.8% MUNICIPAL COMPLEX GENERATOR (NEW), 1.5% February 23, 2023
General Government: Capital Improvement Plan Fiscal Year 2024 includes $57,000 as a General Fund Contribution deriving from a General Fund operating revenue. The Town remains reliant on GRANT FUNDING and $183,800 has been requested from Loudoun County for W Broad Way/ Berlin Turnpike Intersection. FUNDING SOURCE TOTAL FUNDING PREVIOUS YEARS FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 5-YR CIP COST PROJECT FUNDING SOURCES: PAY-GO/ CAPITAL ASSET REPLACEMENT RESERVE/ EVENTS FUND RESERVE NC $ 754,500 $ 432,500 $ 57,000 $ 148,000 $ 40,000 $ 27,000 $ 50,000 $ 322,000 LOANS L - - - - - - - - LOUDOUN COUNTY 6-YEAR AWARDED FUNDS CTY1 5,027,000 2,119,000 1,638,000 260,000 907,000 103,000 - 2,908,000 LOUDOUN COUNTY 6-YEAR REQUESTED FUNDS CTY2 5,357,800 - 183,800 210,000 90,000 - 820,000 1,303,800 VDOT GRANT AWARDED VDOT1 1,345,000 770,000 575,000 - - - - 575,000 VDOT GRANT REQUESTED VDOT2 7,810,200 - - 748,600 1,318,000 1,369,500 4,374,100 7,810,200 AMERICAN RESCUE PLAN ACT OF 2021 ARPA 60,000 - 60,000 - - - - 60,000 $ 20,354,500 $ 3,321,500 $ 2,513,800 $ 1,366,600 $ 2,355,000 $ 1,499,500 $ 5,244,100 $ 12,979,000 TOTAL REVENUES February 23, 2023
Fiscal Year Fiscal Year 2024 2024 Utilities Utilities Fund Fund February 23, 2023
Utilities Fund Budget Allocation by Category The Proposed Fiscal Year 2024 Budget for the Utilities Fund totals $2,532,225 or an increase of $198,339 or 8.6%. FY 2024 UTILITIES FUND EXPENDITURES $2,532,225 Personnel, 19.1% Transfers/ Debt, 27.9% Increases in the Utilities Fund budget is attributed to: Personnel (salary and benefit adjustments) Contractual Services Cost General Utility Capital Improvement Plan Water/Sewer Operations Transfers/Debt Contractual, 4.5% General Utility, 3.0% Water/Sewer Operations, 16.4% Capital, 29.0% February 23, 2023
Utilities Fund Revenue Sources WHERE UTILITIES FUND REVENUE COMES FROM... Increases in the Utilities Fund estimated revenues are attributed to: Investment Interest ($26,940) Water/ Sewer User Rates ($37,600) Frye Court Sewer District ($4,500) Availability Fees ($43,349) Cellular Antennae Lease ($4,770) ARPA ($25,000) Use of Net Position for CIP ($9,400) Use of Reserves/ Fund Balance, 19,400 , 1% State and County, 735,000 , 29% Utility Revenue, 1,364,400 , 54% Antennae Lease, 124,025 , 5% Availability Fees, 289,400 , 11% Decreases in revenue include: Use of 3R Reserve ($20,000) February 23, 2023
Water and Sewer User Rate Bill Comparison Average Monthly Residential Usage The Proposed Budget includes a 3% rate increase for water and sewer user rates. The average monthly use is 3,850 gallons. The proposed rate increase would result in a monthly bill increase of $3.66, or from $93.91 to $97.57. FY 2023 Rates Charges based on FY 2023 Rates Proposed FY 2024 Rates Charges based on Proposed Rates Charge Variance Minimum rate 0-2,000 Gallons Water Charges 1,850 above Min. Water Charges 1,850 above Min. Total Monthly Billed $49.20 $49.20 $50.68 $50.68 $1.48 $9.51 per 1,000 gallons $9.80 per 1,000 gallons $17.59 $18.13 $0.54 $14.66 per 1,000 gallons $15.55 per 1,000 gallons $27.12 $28.77 $1.65 $93.91 $97.57 $3.66 January 26, 2023
Utilities Fund: Capital Improvement Plan CIP includes the proposed use of $735,000 of ARPA funding. SEVEN of the 11 projects for the Utilities Fund will be underway in Fiscal Year 2024. FUNDING SOURCE 3R, ARPA ARPA ARPA ARPA 3R, ARPA L, ARPA ARPA 3R, ARPA ARPA ARPA 3R, ARPA TOTAL COST 325,000 175,000 200,000 225,000 275,000 1,600,000 60,000 100,000 90,000 100,000 233,070 3,383,070 $ PREVIOUS YEARS 325,000 200,000 100,000 100,000 123,070 848,070 $ 5-YR CIP COST 175,000 225,000 175,000 1,600,000 60,000 100,000 90,000 110,000 2,535,000 $ PROJECT EXPENDITURES: TLOV-2019-02 FY 2024 175,000 225,000 75,000 100,000 30,000 90,000 40,000 735,000 $ FY 2025 35,000 60,000 30,000 20,000 145,000 $ FY 2026 35,000 1,500,000 20,000 20,000 1,575,000 $ FY 2027 15,000 20,000 35,000 $ FY 2028 15,000 30,000 45,000 $ CREEK BANK SHORING & REPAIR - - - - - - - - - - - - - - - - - - - TLOV-2020-03 TLOV-2021-02 TLOV-2019-03 TLOV-2024-04 TLOV-2025-02 TLOV-2022-02 TLOV-2024-05 TLOV-2025-03 TLOV-2023-02 TLOV-2024-06 PENNSYLVANIA AVENUE WATERMAIN REPLACEMENT INFLOW & INFILTRATION GRAVITY SEWER /MANHOLE REPAIR - - - QUARTER BRANCH ROAD WATERMAIN REPLACEMENT WASTE WATER TREATMENT PLANT UPGRADES AND IMPROVEMENTS NEW ELEVATED WATER TOWER UTLITY OPERATOR TRUCK REPLACEMENTS WATERMAIN REDUNDANCY IMPROVEMENTS WASTE WATER TREATMENT PLANT GENERATOR WASTE WATER TREATMENT PLANT UV DISINFECTION BASIN UPGRADE WATER PLANT UPGRADES AND IMPROVEMENTS TOTAL EXPENDITURES - - - - - - - - - - - - - - - - - - - - - - - February 23, 2023
Budget Summary- Conclusion Overall, the proposed budget continues to provide the current level of the services provided with a focus on long-term financial sustainability and preparation for future capital investments. The proposed real estate tax rate positions the Town for future management of assets or capital grant opportunities. The water and sewer user rates keep pace with the overall increases in the Utilities operating costs. Operating budgets include personnel compensation increases that will continue to lag behind other local governments in the region (1% COLA and 3.5% Merit) average in the region is closer to 7-8%. February 23, 2023
Community Outreach & Feedback Proposed budget document is available as a PDF on the Town website at: www.lovettsvilleva.gov A hardcopy is available at the Town Administrative Building and the Lovettsville Library. Town Council s TWO remaining Budget Work Sessions on: Feb. 23rd and March 9th. Budget and Tax Rate Adoption/ Public Hearing on March 23rd February 23, 2023
