Fairfax County Board of Supervisors To Reallocate $59.25 Million

Fairfax County has money to play with. Tuesday morning, the Board of Supervisors will hold a public hearing on how to reallocate $59.25 million in carryover funding.

At $3.3 billion, Fiscal Year 2011 General Fund revenues increased $50 million, and the County saved $69.47 million in expenditures. 

The allocation of the funds will weigh on FY 2012 and FY 2013 budgets. "The County is fortunate that FY 2011 revenue came in higher than anticipated," said County Executive Tony Griffin in a staff report to the Board. "Total FY 2011 revenues were $49.97 million or 1.5 percent higher than anticipated."

Recommendations by Griffin include $11.3 million to fund a 1.52 percent market rate adjustment for County employees and setting $24.44 million aside for the FY 2013 budget. County staff anticipate a shortfall of $100 million in 2013.

"I have instructed agencies to identify spending reduction options as part of the FY 2013 budget development, which will be incorporated into the budget recommendations for FY 2013. The reserve of $24.44 million will be important as we review various budget alternatives," Griffin said. "Projecting revenue during this time of economic uncertainty is problematic," Griffin wrote to the Board.

The economy has continued to recover, but the pace of the expansion during the first half of 2011 has been modest, Griffin wrote. "While the County’s unemployment rate has been on a downward trajectory this year and home prices have increased, there is still a lot of uncertainty about a sustainable economic recovery, which weighs down on consumer confidence. While actual revenue exceeded the budget estimate for Sales Tax receipts, the level of FY 2011 collections is still below the FY 2008 level.

"Bank Franchise Taxes were also significantly higher than the budget estimate as a result of banks holding excess reserves due to continued economic concerns," said Griffin.

The Board will discuss these funding options:

• $11.3 million - Funding of $11.3 million would provide County employees with a 1.52 percent Market Rate Adjustment (MRA) effective with pay period beginning September 24, 2011. The 1.52 percent adjustment was calculated based on a formula agreed upon at the May 3, 2011 Personnel and Reorganization Committee meeting of the Board of Supervisors. 
• $10 million - Funding for the Legacy Systems Replacement Project, FOCUS. The payment would continue to support a Fairfax County government and school system multi-year, joint initiative to modernize many administrative applications. 
• $6 million - The General Fund transfer to Fund 501, County Insurance Fund, is increased by $6 million for accrued liability adjustments. An actuarial analysis is performed each year to estimate the value of property and other self-insured losses for which the County is liable. 
• $1 million - Set aside to support relocating human services agencies through a new lease agreement, which will eventually pay for itself in cost savings throughout the term of the lease.
• $2 million - Funding will be used to increase cybersecurity, particularly as it pertains to secure access of web-based social media. It would also improve compliance with regulatory standards, proactively protect the County's computer networks and provide for real-time network security. As funds available in Fund 105, Cable Communications, are being used to secure and deploy this technology, there is no net cost to the General Fund. 
• $5 million - Funding of $5 million, offset entirely by revenue from Fund 319 (the Affordable Housing Fund), would support affordable housing initiatives consistent with the Blueprint for Affordable Housing. Of the $5 million, funding of $2 million would support a funding gap for FY 2012 Housing Blueprint activities, providing services to almost 200 additional households. 
• $1.5 million would be used for rehabilitation and renovation work at the Wedgewood Apartments community center and related facilities, including increased accessibility. 
• $1.5 million would be used to support non-profit organizations in supportive services to 72 homeless individuals and families and an additional 303 households on the County’s affordable housing waiting lists who are receiving rental subsidies. 
• $6.8 million - $5 million would go toward costs associated with a new Public Safety Headquarters building for the County, and $1.8 million would support work associated with renovating Bailey's Fire Station.  
• $1 million - Funding of $1 million is required for costs associated with a new lease agreement for Fairfax County Human Services agencies. This includes information technology and infrastructure costs, architectural design and moving. All Fairfax County Human Services agencies now working at 6245 Leesburg Pike in Falls Church would move to a new location at 7611 Little River Turnpike in Annandale, probably in January 2012. Impacted agencies include SkillSource, Job Corner, Adult and Aging, Child Protective Services, the Office for Women and Domestic and Sexual Violence Services and several others.
• $422,000 - Funding is required to support ongoing litigating in pending legal cases. $200,000 of this would support a case impacting Fairfax County's retirement systems, wherein the Virginia attorney general is suing Bank of New York Mellon on behalf of the Virginia Retire System and local retirement systems in Fairfax County, Arlington County and the Fairfax County Public Schools. (If the lawsuit is successful, the county would most likely recoup the money.) $200,000 - This money would go toward increasing the library's collection of e-books and other electronic materials, which are under increasing demand from patrons. 
• $900,000 - $900,000 would go toward Fund 104, Information Technology, for infrastructure, applications and more for the FOCUS project and other County computer systems. 
• $250,000 - This would provide ongoing support or the 2015 Police and Fire World Games in Fairfax County, an Olympics-style event that is projected to generate substantial revenue through receipts from local hotels, restaurants, venues and shopping associated with event participants and spectators. From the fund balance, $81,100 would go toward 150th Civil War Anniversary events and expenses and $50,000 would go toward the Birmingham Green Feasibility Study.