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TOL PR 2016-02-23 proposed FY 2017 budget EMBARGO Town of Leesburg News Release Embargoed until 8:30pm, February 23, 2016 Media Contact: Betsy Arnett, Public Information Officer barnett@leesburgva.gov  703-771-2734 Town Manager Kaj Dentler Presents Proposed Fiscal Year 2017 Budget to Leesburg Town Council Leesburg, VA (February 23, 2016) – At the Leesburg Town Council meeting this evening, Leesburg Town Manager Kaj Dentler presented his proposed Fiscal Year 2017 Budget. The proposed Fiscal Year 2017 Budget is built upon a tax rate of 18.72¢ per $100 of assessed value, an increase of 0.42¢ from the current rate of 18.3¢. The proposed tax rate is a combination of the residential equalized tax rate of 18.6¢ plus inflation that equates to 0.12¢ on the tax rate. Overall, assessments for residential property in the Town of Leesburg declined 0.67% from 2015. The major headline for the proposed Fiscal Year 2017 Budget is the 43% increase in General Fund debt service costs. This $2.4 million “fiscal cliff” was created when Town restructured its debt in Fiscal Year 2011. In anticipation of this increase, the Town has set aside funds in a Debt Service Reserve in order to avoid increasing taxes in Fiscal Year 2017 and subsequent years. The increased debt service costs will be funded with the accumulated funds in the Debt Service Reserve. The second significant change in the proposed Fiscal Year 2017 Budget from the Fiscal Year 2016 Budget is a projected 18% decrease in health insurance and other post-employment benefit costs. In addition to issuing a request for bids for the Town’s health insurance contract, Town management actively pursued other options, resulting in the expected decrease. The savings will be used to provide cash funding for Capital Projects management costs and to absorb some of the operational cost increases in Public Works and Information Technology. Excluding the increase in debt service costs, the proposed Fiscal Year 2017 General Fund budget reflects a 2.2% increase from Fiscal Year 2016. In his presentation, Dentler emphasized that the Town remains financially solid and on track with the Council’s adopted fiscal policy. “The overarching themes of this year’s budget are fiscal restraint, long-term financial sustainability and operational efficiency,” Dentler told the Council. “Town staff continues to TOL PR 2016-02-23 proposed FY 2017 budget Page 2 seek costs savings where possible, to reallocate resources as necessary and to anticipate future needs. We are a Triple-A bond rated community and my proposed budget for Fiscal Year 2017 reflects the Council’s fiscal policies that allowed us to achieve – and retain – that rating.” A copy of the proposed Fiscal Year 2017 Budget is available for download from the Town’s website at www.leesburgva.gov/budget. # # #