Adopted Budget Accounts for Economic Uncertainties Caused by Pandemic
The Herndon Town Council has adopted a FY 2021 Budget that is designed to adapt to the economic fluidity presented by the COVID-19 pandemic while providing essential services to town residents. The total FY 2021 Budget balances at $61,060,754, and goes into effect July 1, 2020, the start of the new fiscal year. The FY 2021 General Fund Budget is $38,806,000 of the total adopted budget.
Built into the newly adopted budget is an immediate sequester of $11.5 million in total, of which $5.5 million is attributable to the General Fund. These funds may only be spent if/when the town achieves established revenue targets throughout the fiscal year. The list of sequestered items includes expenditures not immediately required at the start of the fiscal year. Conversely, should revenues fall below projections, reductions in personnel costs – the town’s largest expenditure category, by a wide margin – may need to be considered.
“While the adopted General Fund budget is $38.8 million, in practice it will be considered a $33.3 million budget,” said Mayor Lisa Merkel. “Sequestered funds may only be released if and when identified targets are met. This gives us latitude to adapt to the unstable and uncertain fiscal environment we are in. It also gives us the best chance to maintain our exceptional workforce.”
The town’s taxes and fees, to include real estate and meals taxes, remain unchanged in the newly adopted budget, with the exception of the recycling fee, which increases from $8 per quarter to $16 per quarter. This increase accounts for changes in the recycling industry that have resulted in significantly increased processing costs to the town.
The newly adopted FY 2021 Budget will be posted on the town’s website by July 1.