County Administrator Unveils 2009 Fiscal Plan Proposal

By LoudounExtra.com staff

Originally published at 5:52 p.m., February 11, 2008
Updated at 7:34 p.m., February 11, 2008

County Administrator Kirby M. Bowers today presented the Board of Supervisors with his proposal for Loudoun County government's 2009 fiscal plan. The forecast invoves $1.6 billion in appropriations for the general county government, school system, and fire and rescue services.

Bowers' proposed fiscal plan includes $1 billion for the school system, $527 million for general county expenditures, $51.5 million for the Fire and Emergency Medical Services (EMS) Tax District, and $9.7 million for the Comprehensive Services Act for At-Risk Youth (CSA).

The proposal includes a $1.216 real property tax rate for the county government, school system, and Fire and EMS Tax District. Because of lower assessed values, the proposed tax rate would result in an increase of about 13.6 percent, or $640, in the average residential tax bill. The advertised budget includes an additional 5¢ on the real property tax rate to provide the Board of Supervisors with the option of fully funding the School Board's budget proposal.

The expenditure request for general county services includes $369 million for operating expenditures, $171 million for capital projects and asset replacement, and $39 million for debt service. About $270 million of the request for the general county government and the Fire and EMS Tax District would require local tax funding.

Because of fiscal constraints from what Bowers called "one of the most challenging economic environments in recent memory," the proposed fiscal plan falls short of school board's budget request by $23 million. If approved, Bowers' plan would provide an increase of $81 million in operating expenses for the school system for student enrollment growth and inflation.

"Some school projects would be deferred under this plan," Bowers said, "but I've worked to honor the School Board's stated priorities within the boundaries of our debt issuance policy and other debt service ratios."

The administrator's plan would defer some school capital projects, and includes a very limited number of enhancements for the general county government.

The School Board's adopted operating budget totals $804.3 million, of which $585.6 million would require local funding. Bowers's proposed budget includes $562.9 million in local funding for the school system, which would provide $81 million in additional operating funding over the 2008 financial year -- an increase of about 10 percent.

Under Bowers's proposed fiscal plan, per pupil spending would increase more than five percent, from $12,962 to $13,638. The administrator said the increase would offset student enrollment growth and inflation, fund a compensation increase for all school employees, and support a modest package of new initiatives to be funded by the School Board.

More than 71 percent of local tax funding would be used for the school system's operational, capital and debt service needs under the proposed plan.

Bowers said that the proposed fiscal plan for the county's 2009 fiscal year was constructed in one of the most challenging economic environments in recent memory. Among the factors shaping the fiscal plan were rising energy and health care costs, a system-wide credit crunch, declining property values, and weakening employment growth.

"These trends limit the resources available to the county to finance the services that Loudoun residents have come to expect from their government," Bowers said. "At the same time, they actually work together to increase the demand for human services, public recreational facilities, libraries and public schools."

Hilights from Supervisor Bowers' Proposed Fiscal Plan

County Budget Initiatives

Bowers said that he is proposing only a very limited number of new initiatives for the county government, totaling $4 million in additional local tax funding. His priorities for new initiatives are to local match requirements for grant-funding activities, staff new capital facilities, and address critical human service programs.

Proposed county budget initiatives include:

-- Staff for the Brambleton public safety center, eastern Loudoun Sheriff's substation, and the next phase of the Adult Detention Center.

-- Hiring additional court security personnel.

-- Increasing animal control personnel.

-- Staffing for the Health Department's women, infant and children's nutritional program.

-- Market and performance-based compensation adjustments for county employees to help the county remain competitive in the regional economy.

Capital Improvement Program

The proposed Capital Improvement Program for fiscal year 2009 - fiscal year 2014 totals about $1.85 billion. New school projects proposed to receive funding in this six year period include 11 elementary schools, three middle schools, and three high schools. The proposed capital improvement program reduces the school board's $1.3 billion request by $437 million, including land purchases. Bowers said that the proposed fiscal plan places an emphasis on creating student capacity and complying with the Board of Supervisors' debt policies.

Including land purchases for county projects, the county government portion of the capital improvement program totals about $1 billion, including $446 million for transportation projects. Though he scknowledged that transportation is among the top concerns for county residents, Bowers said the state has not met its commitment to provide the county with adequate transportation infrastructure.

Poposed capital improvement program projects include:

-- Fire and Rescue stations in Aldie, Kirkpatrick Farms, Leesburg, and western Loudoun, and additional apparatus.

-- Expansion of the county courts complex.

-- A new County Government Center.

-- A western Loudoun Sheriff's substation

-- An expansion of the Juvenile Detention Center.

-- Transitional and emergency homeless shelters and townhouses, group homes and supported living residences for mental health and mental retardation clients.

-- A Gum Spring Library in the Dulles South area.

-- Regional Park and Ride lots.

-- Improvements to expand capacity at the county landfill.

Tax Rates

The proposed tax rate of $1.216, including 6.6¢ for the Fire/EMS Tax District, would increase the FY 08 adopted real property tax rate of 96¢ by 25.6¢. Because of lower assessed values, the $1.216 proposed real property tax rate would result in an increase of about 13.6 percent, or $640, in the average residential tax bill. Fully funding the School Board's FY 09 budget request would require adding 5¢ to the real property tax rate above the proposed rate of $1.216, and would require the county to issue more debt than allowed under the Board's fiscal policies.

Of the $1.216 tax rate, 85.4¢ is directed to support the school system, 27.7¢ to support the county government, 6.6¢ for the Fire and EMS Tax District and less than one cent for the Comprehensive Services Act (CSA). To provide the Board of Supervisors with additional flexibility in setting the tax rate, a combined real property tax rate of $1.266 was advertised. The advertised tax rate would allow for full funding of the School Board's budget request. The personal property tax rate of $4.20 would remain unchanged under the proposed fiscal plan.

Factors

Bowers said several factors shaping his proposed fiscal plan. They include:

-- The integrity of Loudoun's financial operations, best demonstrated by the county's Triple-A status, as recently reaffirmed by all three major bond rating agencies.

-- Community input, including the results of a countywide survey in November 2007 that showed that residents are very positive about the quality of life in Loudoun County and the value they receive in return for their tax dollars.

-- Survey respondents report high levels of satisfaction with county services and the public schools.

-- Slowed growth rates: Loudoun County is still expected to grow by 26,000 residents during the Board of Supervisors' four-year term.

-- A lag between the initial decline in growth rates and the demand for services: Even if no new residential units were constructed, there would be growth in the school system for years.

-- Operational and debt costs associated with the opening of schools and other public facilities over the next several years.

-- Economic and demographic trends, including data that confirm that Loudoun residents have among the highest income levels in the nation.

-- Increased demands placed on human services programs as families experience economic downturns.

Have Your Say

A public hearing on the fiscal plan is scheduled for Wednesday, February 27, 2008 at the County Government Center, 1 Harrison Street, S.E., in Leesburg. The hearing will begin at 3 p.m. in the Board of Supervisors meeting room and will break for dinner but will resume at 6:30 p.m. If needed, it will continue at 6:30 p.m. on February 28 if needed.

Anyone who wishes to speak at the public hearing may sign up in advance beginning Tuesday, February 12, by calling 703-777-0204. Alternatively, residents can provide their feedback to the Board of Supervisors by e-mail at bos@loudoun.gov, by calling 703-777-0115, or by writing to the Board of Supervisors, P.O. Box 7000, Leesburg, VA 20177.

Information about Bowers' proposed fiscal plan is available on the Loudoun County website at www.loudoun.gov/budget.

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