Budget Hearings Underway, Continue Saturday

UPDATE:  No hearing Thursday. Next hearing is Saturday in Ashburn (see below).

Residents today and Saturday have the opportunity to comment on Loudoun’s proposed $1.6 billion FY 2012 budget during public hearings in Leesburg and Ashburn [Watch the county's Webcast].

Under County Administrator Tim Hemstreet’s proposal, the school system would receive full funding for its operating budget request and the real estate tax rate next year would be $1.32 per $100 of assessed value, representing a 4 percent tax increase for the average homeowner.

Nearly 70 percent of the budget – slightly more than $1 billion – would fully fund the Loudoun County Public School system’s request. Under the proposed fiscal plan, about 69 percent of local tax funding would be used for the school system’s operational, capital and debt service needs, while 31 percent would go to the general county government.
However, the school system is calling for a six-year Capital Improvement Program that’s $533 million more aggressive than current policies and directions from the board allow.

Hemstreet noted that the county’s revenue outlook is positive overall.

“Overall our revenue outlook is positive,” Hemstreet told the board when he presented the budget Feb. 7. “We have a real property tax base that is up. We are seeing increases in the personal property tax base, and sales tax revenues are also ahead of our adopted FY 2011 budget.”

He said revenue for current year is running about $45 million ahead of expectations. In addition, the county has maintained its AAA bond-rating status.

The value of the average home in Loudoun increased slightly between January 2010 and January 2011, a trend likely to continue, while the value of commercial property declined. That means many, if not most, homeowners would face a tax increase even if the rate were kept at the current $1.30.

Despite the national economic slump known as the Great Recession, Hemstreet said several economic indicators forecast a positive outlook for Loudoun, including lower unemployment and higher automobile sales. The county has also continued to build new infrastructure, such as the interchange at Rt. 7 and Loudoun County Parkway and new schools.

“You’ve achieved all this while the county has continued to grown and while revenue sources have continued decline,” Hemstreet said, adding that while must of the United States continues to struggle the economic downturn, “Loudoun County seems to be recovering more quickly.”

Unemployment here peaked at 5.4 percent a year ago, but had declined to 4.2% by December 2010. New car sales were 18 percent higher in 2010 than in 2009. More than 2,000 homes and 1.6 million square feet of commercial space were permitted in 2010.

“The county future remains bright,” Hemstreet said.

The proposed budget includes a number of new items, including the Sheriff’s Western Loudoun substation, Brambleton District Park, the Eastern Loudoun Adult Day Center, New Youth Shelter, the Gum Spring Library, a watershed management plan pilot project, riparian buffer incentives, contingency staffing for the Middleburg Fire Station and additional resources in supervisors’ district budgets to address board aide compensation.

In addition, Hemstreet has proposed a 3 percent salary increase for most county employees, who have not received a raise in three years.

The proposed transfer to the school system represents a $49.3 million increase over the current year’s budget, with 317 additional full-time equivalent employees.

The proposed Capital Improvement Program calls for $189 million in expenditures for FY 12, of which $23.7 million would be financed through local tax funding. A little more than $77 would go to school land acquisition and projects.

School projects for FY 2012 in Hemstreet’s proposal total $77.3 million and include one elementary school and one middle school in the Ashburn area as well as renovations at Park View High School. The school system’s proposed CIP includes $79.6 million for capital projects and asset replacement, and $118.4 million for debt service for FY 12.  

General county operating services amount to $386.6 million, while capital projects total $116.6 million and $40.3 million has been eyed for debt service. The proposed fiscal plan also includes charges and fee increases that will provide $2.7 million of additional fee-based revenue to offset the current reliance on real property tax.

Today’s hearing began at 3:30 p.m. and continues again at 6:30 p.m. in the County Administration Building, 1 Harrison Street SW, in Leesburg. If all speakers are not heard Wednesday night, the hearing will continue Thursday at 6:30 p.m. In addition, a hearing is scheduled at 9:30 a.m. Saturday, Feb. 26 at the school system’s administration building in Ashburn. Speakers who sign up Wednesday or Thursday will not be permitted to sign up again on Saturday.

Residents may also provide their comments to the board by e-mail at loudounbudget@loudoun.gov; by calling the Citizen Comment Line, 703-777-0115; or by mail at Board of Supervisors, P.O. Box 7000, Leesburg, VA 20177.

Supervisors has scheduled a series of budget work sessions in March.

Information about the budget, including Hemstreet's proposal, can be found on county's budget Web page.