Town Council adopts Purcellville FY 2023 Budget

On May 10, the Purcellville Town Council approved a Fiscal Year 2023 budget totaling $23.9 million for governmental and utility operations and investment in the capital infrastructure.

While this budget represents a 6 percent increase over the FY 2022 adopted budget of $22.432 million, it is comparable to the Town’s pre-pandemic FY 2020 adopted budget of $23.729 million from three years ago. Budget work sessions were held from November 2021 through May 2022, culminating in the adoption of a lean budget during inflationary times that maintains the high level of service delivery for which Purcellville has been recognized.

The FY 2023 operating budget totals $21.3 million, a $2.7 million or 14 percent increase over the current FY 2022 operating budget. The Town Council and management team accomplished this budget while reducing the prior year’s real property tax rate by one cent, from $0.22 to $0.21 per $100 of assessed valuation. The components of the FY 2023 operating budget are: General Fund of $12,591,139; Parks and Recreation Fund of $726,284; and Utility Funds (Water and Wastewater) of $7,998,297. The FY 2023 Capital Improvement Plan (CIP) budget totals $2.5 million and is comprised of: General Fund CIP of $916,728; Parks and Recreation Fund CIP of $585,918; Water Fund CIP of $777,538; and the Wastewater Fund CIP of $265,270.

Said Purcellville Mayor Kwasi Fraser, “Thanks to our citizens and business community for their continued support in funding the operations of our great Town. Thanks to the Town staff and management team for delivering operational excellence each day, and thanks to each member of Town Council, Committees, Commissions, and Boards for strategic leadership, volunteerism, and commitment to our citizens. This budget delivers a lower tax rate to our citizens, a commitment to infrastructure improvement, a slow-growth strategy with less reliance on availabilities while pursuing continuous innovation. With this commitment, Purcellville will remain a Triple A-rated community and the economic hub of Western Loudoun County without high-density growth and traffic congestion.”

The FY 2023 budget includes:

General Fund:
The General Fund operating budget maintains current service levels to include weekly residential trash and recycling services, and the highly regarded response times for street maintenance, snow removal, and delivery of government services.

The General Fund budget continues to provide 24-hour / 7 day-a-week police services with average response times of about 3 minutes for priority calls. Personal Property tax rates are unchanged from the prior year and adopted in February 2022. In addition, the 2022 Real Estate tax tates were adopted in March with a one-cent reduction from the prior year.

The Town’s General Fund CIP for FY 2023 includes $0.9 million for transportation and pedestrian projects to improve traffic flow and enhance Purcellville as a walkable community. The Town has effectively leveraged outside funding sources to include the Northern Virginia Transportation Authority (NVTA), Virginia Department of Transportation (VDOT), Loudoun County and designated Town proffers. As a result, the Town is achieving the transportation and pedestrian capital projects without the use of Town tax dollars in FY 2023.

Utility Fund:
While the FY 2023 Utility Fund’s operating cost increased 15 percent over the current FY 2022 budget, the Town was able to maintain the same low single-digit rate increases for both utility funds from the previous year. The Utility CIP invests $1.0 million in water distribution and sewer improvements. To augment these investments, the Town is leveraging the majority of Purcellville’s allotment of American Rescue Plan funding to support investment in the Town’s critical water and wastewater infrastructure.

Master Tax and Fee Ordinance
As part of the budget adoption, the Town Council also approved the FY 2023 Master Tax and Fee Schedule. Changes to Town fees include Governmental: (1) Tax Penalty and Interest: Penalties and Interest on Real Estate and Personal Property Tax set in accordance with transition to Loudoun County tax billing program effective January 1, 2022. (2) Business License: Tax on value of gross receipts for Other. (3) Site Plan: New fee for Plats. Utilities: The user rate increases are consistent with the prior year and with recommendations from the Town utility rate consultant, Stantec, and financial advisor, Davenport. (4) Utility Usage Rates: Include an overall 3 percent water and 5 percent wastewater revenue increase for In and Out of Town. No change in Tiers. (5) Water Administrative Service Fee Rates: adopted 3 percent water and 5 percent wastewater increase in Administrative Fee Rates. (6) Water Meter Fee: Fee for new water meters.

The FY 2023 Budget and Master Tax and Fee Schedule will go into effect on July 1, 2022, while the real and personal property tax rates were effective as of January 1, 2022. More information on the budget can be found on the Town’s website at: http://www.purcellvilleva.gov/budget

“I am committed to working with Town Council and management to pursue opportunities for further asset monetization,” said Mayor Fraser, pointing out the net revenue of more than $900,000 obtained from our nutrient credit bank and the planting of more than 100,000 trees. He added, “Those funds will be used to fund water and sewer operations and lessen the burden to our rate payers and the environment. That $900,000 of green revenue is equivalent to 19 availabilities without the traffic congestion and long-term costs.

“Further,” Mayor Fraser noted, “we will be laser focused on bringing precious tax dollars from the federal government’s Bipartisan Infrastructure Law back to our community to fund end-of-life utility infrastructure.”