The Vienna Town Council passed its $29.8 million fiscal year 2011-2012 budget on Monday night with a last-minute reduction in the property tax rate.
The proposed budget included a real estate tax rate of $0.02435 per $100 of assessed value. But the town accepted a much lower bid than anticipated for a Town Hall exterior painting and wood replacement project, which allowed it to lower that rate to $0.02421, town officials said.
The change means the average Vienna resident's property tax bill will increase by about $36.60, instead of the $43.59 annual increase the town had projected with the initial proposed rate.
The reduction lowers the effective rate increase from 2.2 to 1.6 percent, Finance Director Phil Grant said, though the rate itself is a decrease from last year.
Grant said Colossal Contractors, Inc. bid $18,950 for the project. Town Council approved a $20,845 contract for Colossal on Monday night, which includes a 10 percent contingency from the budget's general fund, Grant said. The extra money allows for some of the building's rotted wood to be replaced once the paint is stripped.
The savings allowed the town to reduce the Department of Public Works budget by $35,000. Combined with a nearly $15,000 reduction in the town's contingency fund, Grant said, the town had almost $50,000 to lower the tax rate.Fund Budget
FY 10-11 Adjusted Budget
FY 10-11 Proposed
FY 11-12 Approved FY 11-12 General 20,769,965 21,085,085 21,322,648 21,272,703 Debt Service 1,978,945 1,978,945 2,081,909 2,081,909 Water and Sewer 6,452,770 6,379,653 6,486,947 6,486,947 Total 29,201,680 29,443,683 29,891,504 29,841,559
Other highlights of the budget:
- Water rates will decrease by 15 cents per 1,000 gallons, from $3.99 to $3.84 per 1,000 gallons for in-town customers, and from $4.37 to $4.22 for out of town customers. The new rates take effect July 1.
- Sewer rates will increase by 50 cents per 1,000 gallons for all users, from $5.23 to $5.73 per 1,000 gallons. Based on a quarterly usage of 19,000 gallons, the average Vienna customer's bill would increase annually by $26.60, according to town documents. The new rate takes effect July 1.
- The return of full-step anniversary date increases for salaried employees, after two years of frozen salaries, Grant said.
- Increased funding for snow removal and concrete repairs
- A transfer of $101,700 from the town share of the telecommunications tax to the capital projects fund for sidewalk construction
Miss a part of the budget process?