The Town of Herndon is joining Fairfax County, Fairfax City and other Northern Virginia localities in contemplating real estate and meals tax rate increases to address growing expenses and prepare for potentially tough economic times ahead.
The proposed fiscal year 2026 budget released yesterday (Monday) by interim town manager Christopher Martino bumps up the property tax rate by 1 cent — from 26 cents to 27 cents per $100 of assessed value — and the tax rate on prepared food and beverages from 3.75% to 4%.
If approved, the real estate tax rate increase would be the town’s first since 2011, per a chart in Martino’s proposed budget. After a 10-cent reduction in 2012, Herndon held its rate at 26.5 cents until 2023, when the town council took a half-cent off to acknowledge the rising costs of living faced by many residents.
Despite the mostly flat rate, most residential property owners have seen their tax bill climb in recent years as a result of rising housing values, and the coming fiscal year, which starts on July 1, will be no different.
Residential real estate assessments are projected to jump by 6.63% for an average value of $560,939, according to a press release. However, with commercial property values expected to tick up by just 0.62% in FY 2026, increased residential assessments alone won’t be enough to cover the town’s expenses.
“Due to rising personnel and operational costs, and planning for further capital investments, the overall cost to provide the base level of services and programs to the community has risen further than what town revenues can support at current rates,” Martino said in a letter to Mayor Keven LeBlanc and the Herndon Town Council.
A 1-cent real estate tax rate increase would add $133 to the average homeowner’s bill and generate an additional $562,089 in revenue for the town. The suggested 0.25% increase in the meals tax rate would bring in another $300,000.
Martino recommends raising the business license tax for retail merchants and repair services to match Fairfax County’s rates, generating over $100,000 in additional revenue. Increases are also proposed for the sewer and water service rates as well as the recycling fee, which will be renamed the “solid waste fee”:
Sewer Service Rate
Increased from $8.93 in FY 2025 to $9.64 per 1,000 gallons of water consumption in FY 2026. The quarterly service charge per bill rendered shall be $15.95.
Water Service Rate
Increased from $4.08 in FY 2025 to $4.79 per 1,000 gallons of water consumption in FY 2026. The quarterly service charge per bill rendered shall be $21.24. All water consumed during the peak use periods in excess of the average consumption of the preceding two winter quarter billing periods shall be charged an additional amount of $8.15 per 1,000 gallons.
Recycling Fee
The proposed FY 2026 budget includes a fee increase of $5.00 per quarter and will be billed under the updated name “Solid Waste Fee.”
The proposed budget totals $95.6 million — a 28.1% increase in spending from the existing one for fiscal year 2025 — but the growth is mostly driven by rising personnel, project and operational costs, rather than new initiatives, according to the town press release.
In his letter, Martino noted that crafting the budget plan was challenging, as Herndon and other local governments try to gauge the potential impact of federal worker layoffs and other actions by the Trump administration.
“Since the pandemic, expenses related to the delivery of core municipal services have continued to rise due to increases in the cost of materials, supplies, equipment, and contracted services, among others,” he wrote. “In addition, the extent of potential economic impacts the town and region may face from actions at the federal level and how they will affect the town’s revenue projections is uncertain.”
More than half (65.6%) of the proposed budget is devoted to personnel costs, which will be nearly $3 million higher than the current budget. The increase stems from a 12% jump in health care premiums as well as employee raises that will average 4.5%.
“It is critical for the town to remain competitive in the marketplace through continued investment in its workforce,” the document says. “This proposed budget, in alignment with the town’s Total Compensation Philosophy, continues to prioritize attraction, development and retention of an engaged and committed workforce through competitive compensation and investment.”
With some roles getting consolidated or repurposed, the budget only adds one net new position: a sergeant for the Herndon Police Department’s planned Special Enforcement and Engagement Team. A vacant parking enforcement role will also be replaced by an additional police officer position to support the new team.
The police department describes the Special Enforcement and Engagement Team as a “high-visiblity” unit with officers patroling on foot and by bicycle “to address specific community concerns and areas of high activity.”
“They will also serve as a community engagement unit, focusing on neighborhoods and the W&OD Trail,” Herndon Police spokesperson Lisa Herndon said. “In addition to their regular duties, they will assist our patrol and investigation sections as needed.”
The team’s creation comes in the wake of the HPD’s arrest of a man who allegedly raped a woman who was walking on the Washington & Old Dominion Trail in December. Virginia Gov. Glenn Youngkin and other state officials have referenced the case, among others, while pressuring localities and law enforcement to collaborate with Immigrations and Customs Enforcement.
Other town priorities addressed by the budget include:
- Training to support Herndon Police’s recent KultureCity certification, which promotes inclusive practices for people with sensory needs. The HPD was the first Virginia law enforcement agency to get the certification.
- Maintenance costs for eight Flock safety cameras with license plate readers that will be placed around the town. The purchase was approved by the town council in December.
- Road Safety Action Plan: a multi-year project to identify safety improvements for drivers, bicyclists and pedestrians
- An analysis of options for installing electric vehicle infrastructure on town property
- Increased funding for tree removals, maintenance and plantings
- Initial funds for marketing the town’s newly adopted branding
- Support for translation and interpreter services
- Increased investment in park maintenance
The Herndon Town Council will discuss the proposed budget at a work session tonight (Tuesday) and on March 18. Public hearings are scheduled for April 8 and 22, with all meetings starting at 7 p.m. in the council chambers at 765 Lynn Street.
Community members can also submit comments about the budget online and by email at budget@herndon-va.gov.
The town council must adopt a final FY 2026 budget by June 30, the last day of the current fiscal year.
