Arlington proposes flat stormwater utility rate amid budget adjustments and tree initiatives

The Arlington County Board convened on March 4, 2025, for a work session focused on the proposed budget for Fiscal Year 2026. The meeting primarily addressed funding allocations and strategic initiatives related to stormwater management and environmental programs.

The session began with discussions on the use of litter grant money, which is earmarked for areas such as Fairlington Villages. Officials emphasized the importance of targeting high-density areas for these initiatives, noting that this approach has yielded positive results thus far. The conversation briefly touched on the potential for landlords to sponsor community projects, although the primary focus remained on budgetary matters.

Mr. DiFerrandi then took the floor to discuss stormwater management. He announced that there would be no increase in the utility rate for calendar year 2025, maintaining the rate at $258 per equivalent residential unit (ERU). This decision is significant as 80% of households pay one ERU or less. The budget reflects a 7% increase in expenses, driven by workforce compensation, contractual obligations related to the MS4 permit, and increased overhead costs. Notably, the budget also includes one-time funding for the tree canopy program.

DiFerrandi explained that the proposed budget anticipates a revenue shortfall of approximately $780,000, which is a strategic decision to utilize excess funds above the 90-day operating reserve. This allows for the flat utility rate while still addressing operational needs. The budget includes two key additions: a new engineer position to manage the growing complexity of stormwater projects and funding for tree canopy initiatives, which were discussed in a previous parks work session.

The proposed budget aims to keep the utility rate stable, contrasting with regional trends where average increases are around 7%. Arlington's competitive positioning within the region was highlighted, as it remains one of the lowest utility rates within the beltway.

Looking ahead, DiFerrandi cautioned that future rate pressures are anticipated due to the need for capital projects and compliance with regulatory requirements under the MS4 permit. These pressures will necessitate increased bond issuances and annual debt service to support ongoing and future stormwater management initiatives.

In conclusion, the work session underscored Arlington County's commitment to maintaining stable utility rates while addressing environmental and infrastructure needs. The board will continue to refine the budget as it prepares for the upcoming fiscal year, ensuring that essential services and community projects remain funded.