County Office of Public Affairs
12000 Government Center Parkway, Suite 551
Fairfax, VA 22035-0065
703-324-3187, TTY 703-324-2935, FAX 703-324-2010
Aug. 2, 2004
On Aug. 2, 2004, Fairfax County Executive
Anthony H. Griffin presented the status for the county's fiscal
year 2004 which ended June 30, 2004, as well as recommended
necessary carryover adjustments for fiscal year 2005, which
began July 1, 2004. As the beneficiary of an improving economy
that generated a higher level of revenue, Fairfax County realized
a positive year-end balance of $48.66 million, after netting
out outstanding encumbrances and unencumbered commitments as
well as associated Managed Reserve adjustments. This $48.66
million year-end balance represents less than 2 percent of the
total fiscal year 2004 General Fund disbursements and consists
of additional revenue of $33.71 million as well as expenditure
savings of almost $15 million on a $2.6 billion budget.
The additional revenue consisted of higher than anticipated
property taxes, other local taxes (including sales, recordation
and deed of conveyance, mobile local telecommunications, and
business, professional and occupational license taxes), permits,
fees and regulatory licenses, as well as revenue from the commonwealth
and federal government. A significant portion of the increase
occurred during the last quarter of the fiscal year, a surge
that was not anticipated during the fiscal year 2004 Third Quarter
Budget Review. Griffin noted in his memorandum to the Board
of Supervisors, "…after relatively uneven economic performance
over the past few years, it has been extremely difficult to
predict the exact timing and magnitude of improvements in the
economy and their impact on county revenue." A similar phenomenon
occurred after the severe economic downturn of the early 1990s.
Spending cuts and an unpredictable recovery led to increased
balances for both fiscal years 1993 and 1994 as the economy
As part of his recommendations for fiscal year 2005, the county
executive identified a revenue increase of $4.85 million, necessary
administrative adjustments totaling $33.32 million, the allocation
of $7.81 million to the county's Revenue Stabilization Fund
as required by board policy, and $0.83 million in associated
Managed Reserve adjustments, leaving a balance of $11.55 million
for board consideration.
Among the priorities identified in his fiscal year 2004 Carryover
Review recommendations are administrative adjustments that support
strategic county vision elements, such as Maintaining Safe and
Caring Communities, Building Livable Spaces, and Practicing
Environmental Stewardship. In addition, an allocation to the
Revenue Stabilization Fund of $7.81 million, with an associated
Managed Reserve adjustment of $0.16 million, in conjunction
with anticipated fiscal year 2005 interest earnings, will bring
the total RSF to $42.96 million or approximately 50.9 percent
of the targeted amount, which represents 3.0 percent of total
General Fund disbursements.
Of the available balance of $11.55 million, Griffin recommended
that $5.0 million be set aside for Fairfax County Public Schools'
vehicle and computer replacement requirements pending development
of a clear approach subject to Board of Supervisors' approval
and matching funds from the school system. In addition, he recommended
that $2.0 million be placed in a reserve for environmental projects
identified by the county executive and approved by the Board
of Supervisors as part of its adopted plan, "Environmental Excellence
for Fairfax County: A 20-Year Vision."
The Board of Supervisors approved the advertisement of a public
hearing on the fiscal year 2004 Carryover Review to be held
Sept. 13, 2004. Following the public hearing, the board will
take action on the proposed Carryover Review.
Information on the fiscal year 2004 Carryover Review is available
on the county's Web site at www.fairfaxcounty.gov/dmb
and by calling the Department of Management and Budget at 703-324-2391,
FAIRFAX COUNTY IS COMMITTED TO A POLICY OF
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AND WILL PROVIDE REASONABLE ACCOMMODATIONS UPON REQUEST. TO
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