Peter’s Take is a weekly opinion column. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.
Arlington County seeks public input on the Manager’s recommended allocation of $17.8 million in surplus “one-time” close-out funds (from FY2016) and on the Board’s proposed budget guidance to the Manager for FY 2018.
The Board will vote on both matters in November.
Kudos to the Board and Manager for embracing reform in choosing to discuss the surplus close-out funds’ allocation and the Board’s budget guidance in October and wait to adopt them in November. This gives the public more time to weigh in before decisions are made.
Submit public comments on both matters here.
Arlington should follow certain principles to guide its decisions in allocating the close-out surplus.
- As a matter of prudent financial management, a fair and reasonable percentage (i.e., a % higher than 0%) of any close-out surplus always should be allocated to moderate the tax rate and/or reduce bonded indebtedness.
Adopting this principle would mean only that a fair and reasonable percentage of the FY2016 close-out surplus would be earmarked for property tax rate moderation in calendar-year 2017. Adopting this principle would NOT necessarily mean that the calendar-year 2017 property tax rate would fall, rise or remain the same. A final decision on that would be made next year.
What is “fair and reasonable?” That should depend upon the close-out surplus amount in any given year and careful consideration of public input. But the fair and reasonable percentage should be multiplied against the entire surplus, and set aside for consideration next year before any final decisions are made regarding how to allocate the remaining surplus.
Similarly, we should consider using some percentage of the close-out surplus for early debt retirement when that makes financial sense. The County’s bond capacity is limited, and retiring debt early will help free up more capacity in addition to reducing interest expense.
- The remainder of the close-out surplus (after setting aside a % for tax rate moderation and any debt reduction) should next be considered to address any emergency that requires funding before final adoption of the FY2018 operating budget.
An “emergency” expenditure is one that simply cannot be deferred until the FY2018 general fund (operating) budget is approved in April 2017. Reasons for not waiting until April 2017 might include the complete loss of a current vital opportunity or the strong likelihood of sharply escalating costs to meet a core government function.
However, the County should first determine whether it already has an appropriate reserve fund set aside to cover an emergency before tapping surplus close-out funds.
- All other proposed uses of the close-out surplus automatically should be deferred, and the remaining funds’ allocation should be decided in conjunction with the FY2018 budget process.
County Board action on all other proposed uses of close-out surplus funds should be automatically deferred until more is known about the County’s financial position in the coming calendar year. Close-out surpluses are “one-time” funds rather than ongoing revenue. They exist solely because the County collected more tax revenue than required to meet its budgeted commitments. Therefore, these funds should be used for nonrecurring expenditures (e.g., replacing a bridge, acquiring land, etc.) rather than for supplementing the County’s ongoing operating expenses.
The County Board should direct the Manager to reconsider his current recommendations by applying the guiding principles discussed above.
Shots Fired Investigation in Green Valley — From the Arlington County Police Department: “ACPD is investigating the report of shots heard in the area of 25th Street S. and S….
Tour the secluded and quiet Bellevue Forest with its local parks, trails, forested areas and more in Neighborhood Spotlight.
In loving memory of William Dinwiddie Tucker, who passed away in 2023 at the age of 95.
Good Friday evening, Arlington. Today we published articles that were read a total of 6626 times… so far. 📈 Top stories The following are the most-read articles for today —…
St. Charles offers a play-based curriculum in a welcoming, Christ-centered environment.
Our program focuses on socio-emotional development and kindergarten readiness through hands-on and engaging activities. Our programs offer different schedules ranging from 7:30 am-5:30 pm for students, ages 2-5. We feature a full-day Jr. kindergarten class for older 4’s/5’s. Our facility includes a full-sized gymnasium, school chapel, and library. All of our students enjoy music and physical education weekly. Children have an opportunity to participate in enrichment classes such as soccer, basketball, ballet, and science.
We offer Summer Camp with weekly themes and twice a week water play, including Fun Friday moon bounce. Please join us for our Open House Feb. 3 at 9:30 am and 11:00 am. Click here to sign-up.
For more information or to schedule a tour, visit us at www.stcharlesarlington.org or call (703) 527-0608.
If you are a lifelong learner over 50+ who wants to make new friends, power up your brain, and enjoy a wide-variety college-level courses, Encore Learning is for you. An Arlington based nonprofit, Encore Learning offers courses in the arts, theater, literature, history, technology and more. This semester we offer our most popular course, Global Hot Spots as well as 25 new courses. Courses are presented either online or in-person at George Mason University at Virginia Square and other Arlington locations.
Join the free presentation to learn about courses and meet the instructors. This is Encore Learning’s signature event to highlight the upcoming semester with brief presentations by each instructor.
The Spring Course Preview event is Thursday, February 2nd at 9:30 AM via Zoom:
The truth, your first pregnancy and new mom months are full of twists and turns, ups and downs, and lots of questions! None of us really know the best way to do it – we just figure it out, together…