The Vienna town government is on solid financial ground midway through fiscal year 2024, although its meals-tax revenues have taken a minor hit and housing costs continue to escalate.
“We are in good financial shape,” town finance director Marion Serfass told the Vienna Town Council when presenting the town’s mid-year financial report Jan. 8.
Total assessed property values for fiscal 2024 checked in a $6.1 billion, up 9.1 percent from the previous year. Residential properties now account for 84.8 percent of the town’s real-property values and commercial parcels the remaining 15.2 percent. The 10-year averages for those proportions are 82.2 and 17.8 percent, respectively, and commercial properties made up 19 percent of the total a decade ago, officials said.
The new Sunrise Senior Living facility on Maple Avenue, W., should help boost the town’s commercial revenues, Serfass said.
Taxable-property values in mid-fiscal 2024 were up 9.7 percent overall, with residential parcels increasing 10.6 percent and commercial properties 4.7 percent.
Despite those solid gains, property taxes dropped from 46.5 percent to 44.6 percent of the town’s total revenues and transfers thanks to higher interest revenue, business-license taxes, parks-and-recreation fees and state road-maintenance funding. The town has seen decreases, though, in some taxes (such as tobacco), fines, permits and street-cut inspections.
Vienna’s general-fund revenues rose 8 percent, but were offset by a 14.4-percent rise in expenditures, notably for paving costs and parks-and-revenue expenses.
Inflation has not been as high as town officials budgeted for, especially for fuel and supplies. But officials are having to contend with higher utility costs and pressure to increase employees’ pay.
The town’s “rainy-day” fund now stands at $5.7 million, or 18 percent of the fiscal 2024 budget, which is right where Vienna officials want it. Town leaders often put surplus moneys into a revenue-stabilization fund, which in recent years has been drawn down some to cut the real-estate-tax rate and pay employees more.
As of November, meals-tax collections – which finance the town’s capital-improvement projects – were down 1.6 percent compared with the previous year. Town officials anticipate that the opening of two eagerly awaited restaurants in December and January may help goose those numbers up a bit.
Eight restaurants opened in Vienna in 2023 and three closed.
“There’s strong support for restaurants in Vienna,” Serfass said. “I always tell people to go out to eat.”
