Herndon Town Council Passes FY2021 Budget

After revisions to its previous proposal, the Herndon Town Council formally adopted its budget for FY2021 this week.

The $61 million budget was scaled back to adapt to economic fluidity and uncertainty caused by the COVID-19 pandemic. The town’s taxes and fees, including real estate and meals taxes, remain changed. But the town’s recycling fee doubled from $8 per quarter to $16 per quarter.

Unlike previous budgets, the document includes $11.5 million in immediately sequestered funds, $5.5 million of which will be attributed to the town’s general fund. Overall, the FY2021 budget allocates $38.8 million for the general fund.

Sequestered funds can be spent if the town achieves its revenue targets through the fiscal year. But if revenues fall below projections, the town may need to consider reductions in personnel costs.

 “While the adopted General Fund budget is $38.8 million, in practice it will be considered a $33.3 million budget,” said Mayor Lisa Merkel. “Sequestered funds may only be released if and when identified targets are met. This gives us latitude to adapt to the unstable and uncertain fiscal environment we are in. It also gives us the best chance to maintain our exceptional workforce.”

The adopted budget will be posted on the town’s website by July 1, the beginning of the new fiscal year.

Photo via Herndon Town Council/Zoom

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