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Herndon’s proposed fiscal 2026 budget would increase spending by 28.1 percent while raising several taxes and utility rates, trimming town programs and canceling planned initiatives.

Interim Town Manager Christopher E. Martino presented the $95,628,447 proposal during the Town Council’s March 11 work session. The current adopted budget is $74,632,183.

The plan covers the General Fund, Stormwater Management Fund, water and sewer services, the cemetery, golf course and other enterprise funds, along with the fiscal 2026 portion of the Capital Improvement Program.

Martino said the town’s Strategic Plan and its vision for a sustainable, safe and equitable community guided the proposal. However, he said the cost of maintaining regular programs and services is rising faster than existing revenue can support.

Most spending would sustain ongoing town operations, with additional money addressing unexpected events and a smaller share advancing strategic initiatives.

Higher taxes and fees proposed

The balanced budget recommends increasing the meals tax from 3.75 percent to 4 percent, which is projected to generate an additional $300,000.

The real estate tax rate would rise from 26 cents to 27 cents per $100 of assessed value. Combined with an estimated 4.38 percent increase in property assessments, the change could produce as much as $562,000 in additional revenue. The average residential property owner would pay about $133 more per year.

Herndon would also align its Business, Professional and Occupational License rate schedule with Fairfax County’s and increase the quarterly recycling fee from $16 to $21.

Residential assessments are projected to rise 6.63 percent, while commercial assessments are expected to increase 0.62 percent. Together, they produce the estimated 4.38 percent increase.

Real estate assessments for Herndon properties are conducted by the Fairfax County Department of Tax Administration’s Real Estate Division, which values property at full and fair market value as of Jan. 1 each year.

Water bills and stormwater spending climb

The proposal includes a 20.6 percent water-rate increase and a 9.8 percent sewer-rate increase. The combined quarterly charge would reach $210.45, or $25.23 more per household than in fiscal 2025.

Town officials previously outlined a multiyear rate plan, warning that Herndon would have to draw from retained earnings to balance the water and sewer fund without rate changes.

The Stormwater Fund carries the budget’s largest year-over-year expenditure change, rising 216 percent from the fiscal 2025 adopted level.

Programs face reductions

Several departments would absorb cuts as Herndon contends with inflation, aging buildings and infrastructure, uncertain grant funding, the possible regional effects of federal policies and the transition away from American Rescue Plan Act funding.

The Public Tree Forestry Program, intended to replace trees and gradually expand the canopy, would receive $25,000 less than its $293,000 program level.

A $166,000 parks safety program would be reduced by $38,000. The town would delay inspections and turf testing and make repairs reactively instead of proactively.

Building maintenance and repairs would be cut by $185,000 from a $358,000 program level already budgeted below recent actual spending. Town facility systems are aging and have passed their useful lives.

The town also plans to cancel the $120,000 spring cleanup and $1.2 million in brand marketing expenses.

Martino said escalating core-service costs have forced Herndon to repurpose resources and reduce some services while trying to maintain the level residents expect.

General Fund rises 12.7 percent

Proposed General Fund expenditures total $50,328,225, up 12.7 percent from the fiscal 2025 adopted budget. Personnel-related costs would rise 8.7 percent, while capital costs would increase 28.7 percent.

The increases partly reflect Herndon’s shift from federal pandemic-relief grants to the General Fund and other sources for projects and capital purchases.

The plan includes $2.9 million in General Fund capital spending financed through the General Fund Capital Reserve and capital projects. The Capital Improvement Program reflects $5.9 million for fiscal 2026.

In a March 7 letter to Mayor Keven LeBlanc and council members, Martino said personnel, operating and capital costs had pushed the price of basic community services beyond what the town could support at current revenue rates.

Herndon’s proposed 28.1 percent overall increase is larger by percentage than the fiscal 2026 proposals presented at that point by Fairfax County and other jurisdictions within the county.

Vienna proposed a 3.2 percent increase, while the City of Fairfax recommended $306,551,165 in total expenditures—a 21.3 percent rise that includes $105.1 million for capital projects. Fairfax County’s advertised budget proposed a $297.1 million, or 7.9 percent, increase over fiscal 2025.

Herndon’s proposed Enterprise Fund budget was scheduled for presentation at the council’s March 18 meeting. Public hearings on the full fiscal 2026 proposal were set for April 8 and April 22, giving residents opportunities to testify and comment before the town establishes its financial priorities.