Politics & Government

Paying for Metro in Loudoun

Several financing scenarios provide options for Loudoun that lower debt service.

Financing options available to Loudoun County to pay for the construction, operation and maintenance of Metro’s proposed Silver Line extension to Ashburn could in peak annual debt service payments in the range of $15 million to $19 million, according to information presented during a work session Wednesday.

The annual payments could be as low as $11 million, depending on the final interest rate and the time period over which the county issues the debt.

The Loudoun Board of Supervisors conducted a meeting as part of its review of the Dulles Corridor Metrorail Project. If the majority of the board were to decide to withdraw from the project, supervisors would have to notify the Metropolitan Washington Airports Authority, the Fairfax County and the Commonwealth of Virginia by July 4.

Find out what's happening in Ashburnwith free, real-time updates from Patch.

“If you don’t take action by July 4,” County Attorney John R. Roberts told supervisors Wednesday, “you are in.”

Board members also learned that there appeared to be enough debt capacity to pay for the Metro as long as costs do not rise significantly. The county’s share of construction for the project, which also includes Loudoun’s share for phase one, is now estimated at just under $270 million. Ben Mays, Loudoun’s acting finance director, said county could remain under the debt cap unless the rail construction costs rise above $315 million.

Find out what's happening in Ashburnwith free, real-time updates from Patch.

Mays also pointed out that if construction costs rise, Loudoun’s share would be 4.8 percent, the same as its share for the rest of the project.

“To me, this looks pretty affordable,” said Supervisor Matt Letourneau, who pointed out that the finals costs could amount to less than two cents on the real estate tax rate, in terms of cost to taxpayers.

But Supervisor Janet Clarke (R-Blue Ridge) said she was concerned staff was not factoring in enough collateral costs, such as roads needed to access the stations. Without considering such potential costs, she said, the county may not have the debt capacity for a future critical need.

Mays said such costs are difficult to calculate. While proffers are in place to pay for many such needs, he said, much of the land around the proposed stations at Routes 606 and 772 has not been rezoned, so its unknown what proffers those properties may contribute.

“I look for more absolutes,” Clarke said.

Tax Districts Considered

Several supervisors expressed interest in tax districts that the county can use to put the cost of rail on those who will benefit most. While staff members presented existing commercial and industrial tax districts as well as a rail service tax districts, some board members said they might want to pursue authority, if it does not already exist, to tailor districts — for example, whether residential units could be excluded from a rail service district.

Clarke said she opposed a countywide C&I tax district, and Supervisor Shawn Williams (R-Broad Run) said he was uncomfortable with tax service district within one or two miles of the stations.

Questions were also raised about whether a C&I tax could be used to fund road needs, regardless of the relation to Metro.

Despite continued disagreements—including an unknown divide among supervisors about whether to even participate in the project—Clarke, the board's vice chairman, said she believed the board made significant progress in its review.

MWAA sent a letter to the county regarding its in which it indicated it was prepared to begin procurement on the project on July 5 if Loudoun opts in by July 4. It's estimated that passengers could be riding the Silver Line to and from Ashburn by 2018 without delays.

See the county's webcast of the meeting here (scroll down to June 6 rail work session). See county’s Metro web page here.


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