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Prince William County COVID-19 Financial Impact

Page 1

COVID-19 Financial Impact


FY 2020 General Revenue Update Projected $2.4M Shortfall General Revenue Source Real Property Tax Personal Property Tax

Adopted

Q1 Revised

$694.1 M $694.1 M

Q2 Revised

Q3 Prelim

% Change (Adopted)

$694.4 M

$694.4 M

0.05%

207.2 M

207.2 M

211.9 M

212.1 M

2.36%

Sales Tax

68.2 M

68.2 M

71.4 M

66.8 M

‐2.02%

BPOL Tax

28.0 M

28.0 M

27.6 M

25.0 M

‐10.71%

Communications Sales Tax

15.5 M

15.5 M

14.9 M

14.9 M

‐3.87%

Consumer Utility Tax

14.6 M

14.6 M

14.6 M

14.6 M

0.0%

Investment Income

13.9 M

13.9 M

11.2 M

11.0 M

‐21.09%

All Other

12.2 M

12.2 M

13.4 M

12.8 M

4.88%

Vehicle License Fee

9.4 M

9.4 M

9.4 M

9.0 M

‐4.26%

Recordation Tax

7.9 M

7.9 M

8.5 M

8.5 M

7.59%

$1,069 M $1,069 M

$1,075 M

$1,067 M

+5.7 M

‐2.4M

TOTAL

= Proposed FY2021 Budget Update

2


FY2020 Actions to Address COVID-19/Projected Revenue Shortfall • FY2020 Financial Goals • Conserve cash • Maintain reserves – no drawdown at year-end

• Hiring Freeze • Spending focused on core services • Suspend capital projects not under contract • Continue projects funded by non-local sources (Transportation) • No new capital projects

Proposed FY2021 Budget Update

3


Proposed FY2021 Budget Update March 31, 2020


Proposed FY2021 Budget Summary Presented February 18, 2020

Tax Rates & Fees $1.145 Real Estate ($242 avg. increase) $0.08 Fire Levy ($12 avg. increase) $1.30 Computer & Peripheral $0.0025 Mosquito & Forest Pest Levy Flat Solid Waste & Stormwater Fees

Education

Safe & Secure Community

$38.7M or 6.4% School Transfer Increase

Police Staffing Plan

2.8% Step Increase plus 2.0% COLA

ADC Operating

953 Additional Students Projected Start-up Costs for 13th HS & Potomac Shores MS

Station 22 Engine Staffing Sheriff Staffing Plan Courts Staffing Plan Public Defender 15% Salary Supplement EMS Fee Increase

Other Community Investments Robust Economy Investment Mobility Referendum Design CSA Private Day School Placements Presidential Election 3.0% Community Partners Increase 3.0% Employee Compensation Class & Comp. Phase II

Proposed FY2021 Budget Update

5


Proposed FY2021 Budget General Revenue Update FY2021 Proposed Revised $735,783 219,530 65,130 14,700 14,530 24,375 8,050 27,364 $1,109,462

Amounts in thouands (,000s) Real Estate Taxes ($1.145) Personal Property Taxes Sales Taxes Consumer Utility Tax Communications Sales Tax BPOL Tax Investment Income All Other Total General Revenue

FY2021 Proposed 2/18/20 $743,946 221,060 73,949 14,700 14,530 28,430 11,030 29,781 $1,137,426

Recordation Tax General Revenue Shared with Schools

8,670 7,800 (870) $1,128,756 $1,101,662 ($27,094)

Schools County Recordation Transportation Total General Revenue

$645,987 $630,481 ($15,506) 485,009 473,191 (11,818) 6,430 5,790 (640) $1,137,426 $1,109,462 ($27,964)

Proposed FY2021 Budget Update

Difference ($8,163) (1,530) (8,819) ‐ ‐ (4,055) (2,980) (2,417) ($27,964)

6


Proposed FY2021 Budget Agency Revenue Update • Library

($1.0M)

• Shared services agreement • Revenue from Commonwealth

• Transient Occupancy Tax - Tourism

($0.8M)

• 60% of revenue collected mandated for tourism • Supports Parks, Recreation & Tourism

• Outstanding Issues • Parks & Recreation summer program? • General District Court fines & forfeitures

($2.5-$3.0M) ($0.3M)

• Federal economic stimulus • State budget Proposed FY2021 Budget Update

7


Proposed FY2021 Budget Update Summary of Revenue Impacts

Revenue Change from Proposed General Revenue Update at $1.145

Schools Impact

County Impact

FY2021 Total

($15.5)

($11.8)

($27.3)

Library Shared Services

0.0

(1.0)

(1.0)

Transient Occupancy Tax (Tourism)

0.0

(0.8)

(0.8)

Recordation Tax for Transportation

0.0

(0.7)

(0.7)

234 Bypass Transportation District

0.0

0.1

0.1

($15.5)

($14.2)

($29.7)

Total (in millions)

Proposed FY2021 Budget Update

8


County Impact of Revenue Reduction (in millions) County Revenue Impact

($14.2)

Reductions: Compensation ‐ 3% pay for performance Other compensation adjustments Police staffing plan Prince William Fire & Rescue System staffing Courts staffing plan Sheriff staffing plan Workplace safety staffing TRIP (recordation tax revenue decrease) Parks, Recreation & Tourism field maintenance Total Reductions

($7.1) (4.2) (2.7) (2.3) (0.5) (0.4) (0.3) (0.4) (0.1) ($18.0)

Addition: Public Health ‐ salary supplement for nurses Total Addition

$0.4 $0.4

Net Change Added to Contingency

$3.4

Proposed FY2021 Budget Update

9


Future Considerations • Contingency Budget

$4.9M

• Provides for unanticipated increases in service delivery costs • Increases from $1.5M to $4.9M in proposed budget • COVID-19 response & recovery • Only BOCS can authorize use of contingency

• Five-Year Fiscal Plan • COVID-19 duration & long-term impact unknown • Revenue projections beyond FY21 unstable

Proposed FY2021 Budget Update

10


Unfunded Services & Revenue Options


Wellbeing Unfunded Requests March 10 Budget Work Session • Community Services Service

State

Local

Total

Intellectual Disabilities

$360K

$190K

$550K

Early Intervention

$210K

$220K

$430K

$0K

$429K

$429K

$120K

$88K

$208K

Administrative Services

$0K

$404K

$404K

Adult Substance Abuse

$60K

$123K

$183K

Adult Mental Health

$60K

$123K

$183K

Same Day Access

$24K

$159K

$183K

Emergency Services

$0K

$400k

$400K

Intellectual Disabilities Contractual Support

$0K

$788K

$788K

Youth, Adult, and Families Division

$0K

$253K

$253K

$834K

$3,177K

$4,011K

Local

Total

Peer Outreach/SOR New Horizons

Total

• Social Services

Service

Homeless Prevention Contract Support

State -

$500K

$500K

Protective Services (CPS/APS) After-hours Team

$241K

$175K

$416K

BECC Staffing Plan

$311K

$225K

$536K

Total

$552K

$900K

$1,452K

Proposed FY2021 Budget Update

12


Advertised Revenue Options • Computer & peripherals business tangible • Advertised tax rate: $1.35 • $0.8M (each $0.05) additional revenue

• Motor vehicle license tax • Advertised tax rates • $33 automobiles & trucks • $20 motorcycles

• $3.5M additional revenue

Proposed FY2021 Budget Update

13


Remaining Budget Calendar • Budget Recap (afternoon)

April 14

• Budget Public Hearing (evening, required)

April 14 April 16

• Budget Markup (evening)

April 21

• Budget Adoption (evening)

April 28

Proposed FY2021 Budget Update

14


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