Vienna Real Estate Tax Bills Could Rise Despite Proposed Flat Tax Rate

VIENNA, VA — A flat real estate tax rate has once again been proposed in the Town of Vienna budget, but tax bills would be on the rise for homes with increasing assessed values.

Town Manager Mercury Payton's proposed $55.5 million town budget for 2025-2026 would be a 3.2 percent increase — about $1.7 million — over the current year's budget. The town's annual budget covers four operating funds: general, water and sewer, debt service, and stormwater. The town manager said the budget priorities include covering essential town government costs, pay increases, debt service and maintaining existing programs and facilities.

“This proposed balanced budget is lean compared to previous budgets, with a modest 3.2 percent increase over the current year’s budget to manage inflationary pressures,” said Town Manager Mercury Payton. “While proposed budgets in some of our neighboring jurisdictions call for an increase in property taxes to cover their operating expenses, our proposed budget demonstrates our commitment to provide services that we can with the revenue that we have.”

The real estate tax rate would remain at $0.1950 per $100 of assessed value. Town of Vienna property owners pay this rate in addition to the Fairfax County rate. Even with a flat tax rate proposed, higher assessed values for homes translate to higher tax bills. The town estimates the average residential tax bill would increase by 7 percent from $2,204 to $2,359.

The average increase in assessed values for existing properties was 6.2 percent. The town manager's budget notes that 43.6 percent of properties are residential properties assessed over $1 million, up from 36.4 percent of properties last year.

"Real estate taxes, which account for approximately 43% of the general funds’ revenue, continue to rise due to the ongoing desirability of Vienna’s location," Payton wrote in his proposed budget introduction.

For compensation, the budget proposes a 2 percent market rate adjustment and 1 percent merit increase for general town employees. Sworn law enforcement officers would receive a 2.5 percent step increase and 2 percent market rate adjustment.

Other proposed increases to the budget include $200,000 for a fitness center operating reserve. The reserve funds seek to offset operational expenses during the first years of a fitness center and indoor pool facility, which the town is considering for the annex property at 301 Center Street South. Town Council is considering a 1 percent meals tax addition to fund construction more quickly than the town's capital budget process, but a decision was postponed until August.

The town's water and sewer fund would increase by $509,800 or 3.8 percent. Water and sewer rates are proposed to increase by 7.25 percent to help cover replacement of aging infrastructure and increased costs for wholesale water purchase and sewer treatment, according to the town manager's proposal. Service charges for residential accounts are proposed to increase from $40 per quarter to $42 per quarter. The average customer’s bill would increase by $19 a quarter, or $74 per year.

The stormwater fund tracks revenue transfers from Fairfax County. This year's budget would provide a $568,180 increase, or 9.3 percent increase. The town says six stormwater projects will be under construction and four will be in design in 2025-2026.

The town's debt service is proposed to decrease by $510,110 or 7.8 percent, due to transfers from the water and sewer fund. According to the town manager's budget proposal, water and sewer interest payments on debt will be directly charged to the water and sewer fund. In addition, strong meals tax revenue is contributing to meeting the debt service spending.

Town Council will host two work sessions to review the budget proposal and make desired changes. The public can attend work sessions, but public comment will not be accepted. There will be two public hearings to accept public comments. All meetings are held at Vienna Town Hall.

Here is the budget timeline:

• Budget work session 1: Saturday, March 15, 9 a.m.
• Budget work session 2: Monday, March 17, 7 p.m.
• Public hearing - proposed budget and water and sewer rates: Monday, April 7, 7:30 p.m.
• Public hearing - proposed tax rate: Monday, April 28, 7:30 p.m.
• Adoption of budget, tax rate and water and sewer rates: Monday, May 19, 7:30 p.m.

For more information, visit www.viennava.gov/budget.

MORE ON FAIRFAX COUNTY BUDGET

• Real Estate Tax Hike, 208 Staffing Cuts In Proposed Fairfax Co. Budget
• ‘I Don’t Like This Budget’ Palchik Tells Town Hall Attendees