Administrator Proposes $1.2 Billion Budget, Tax Hike

Administrator Proposes $1.2 Billion Budget, Tax Hike 

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Loudoun County Administrator Kirby M. Bowers, citing the bleak economy, mounting debt, plummeting residential property values and growing service demands, proposed a $1.2 billion operating budget yesterday that would increase the tax rate by 25.6 cents.

Bowers described the budget proposal as the most "lean" that Loudoun has considered since the early 1990s, saying most of its limited enhancements to county services are confined to public safety, including increased staffing for the sheriff's department. Personnel in the county's building and development department would be cut because the demand for building inspectors has waned with the slumping housing market.

The plan includes an $81 million increase in operating expenses for the 54,000-student school system, $23 million less than school officials requested.

"The party's over," said Board of Supervisors Chairman Scott K. York (I-At Large), noting that years of unbridled growth, combined with a slow economy, have contributed to the county's fiscal challenges. York declined to comment on the viability of the tax rate increase before hearing public input.

Other supervisors were more blunt.

"I'm quite sure we will reduce it," said Supervisor James Burton (I-Blue Ridge), adding that for residents whose property assessments did not decline drastically, the proposed rate would be too much to bear. "The schools are not going to be happy with what we do. ... Everyone is going to have to share in the pain."

School officials who attended the presentation said their funding request was warranted.

"There is an absolute demand in this county that children be educated, and educated well," said Superintendent Edgar B. Hatrick III, who added that he thinks county residents are willing to pay higher taxes for a better education system. "I understand that these are difficult economic times, but I also understand that we're expecting 3,200 more students next year."

Over the past year, the average assessed value of a single-family home in Loudoun fell to $447,605, from $487,187, according to county figures. Bowers's plan calls for a tax rate of $1.216 for each $100 of assessed value, up from 96 cents now.

Under the proposal, the average residential tax bill would increase 13.6 percent, or about $640.

Last year, an election year, the average tax bill increased about 2 percent, which some current supervisors said contributed to the county's fiscal problems now.

Burton said he thinks the last board "cut things way too close."

Once the second-fastest growing county in the nation, Loudoun was fourth as of 2006, the latest year available, according to census figures. From 2003 to 2004, the county added more than 18,000 residents, demographer Jill Allmon said, compared with about 8,000 last year.

Still, Bowers said, uncertain economic times erode property assessments and tax revenue while prompting an uptick in the demand for county services such as parks, libraries and assistance programs. It's a difficult combination, he said.

The proposal will be hashed out over the coming months, and funding for the schools, which accounts for more than 70 percent of county spending, is likely to be a source of tension.

In addition to operating costs, the School Board's six-year capital improvement funding request would also be cut significantly under Bowers's proposal, to $850 million, from a requested $1.3 billion. Bowers's full proposal totals $1.63 billion, including capital improvements.

His proposed capital appropriations for fiscal 2009 total $257 million. The package also includes $171.8 million in debt service appropriations.

Staff researcher Meg Smith contributed to this report.

Tagged: Board of Supervisors

Comments:

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Someone please buy Kirby Bowers a calculator. If the average home values dropped by 8% ($487187 to $447605) then in order to compensate for that loss you would need an 8% increase in the tax rate (from $.96 for each $100 of home value to $1.04) Everything over that is a tax increase. After years and years of tremendous growth in population, home values and taxes, we need to take a breather, control county spending and give those who are on a fixed income or are financially strapped a chance to recover. Car taxes, toll increases, adjustable mortgages and retirement investment losses are destroying the savings of our community. We need our leaders to stand firm and to give the citizens a chance to absorb the NEW cost of living in Loudoun County without yet another tax increase. Please!!!!

Posted by salm624 (anonymous) on February 12, 2008 at 10:31 a.m. (Suggest removal)

This is typical nowadays. The strategy is to ask for way more than you need, or can reasonably expect to get, then when the BOS comes back with a lower rate (that's still higher than last year), they can pretend they're doing you a favor. Unfortunately, I expect the new board of liberals to come back with a rate close to what Bowers is asking for.

Posted by blarf (anonymous) on February 12, 2008 at 10:41 a.m. (Suggest removal)

There is no way this is realistic. Of course the school board would agree. They spend more than any other facet of the govenment in LC. Some one please wake up the numbers are not real.

Posted by jteague (anonymous) on February 12, 2008 at 11:18 a.m. (Suggest removal)

Start cutting with Hatrick's ridiculous salary and benefits! Sorry, I'm not paying anymore taxes, and I couldn't do it, even if I wanted to. My family is at bare bones as it is.

Posted by GenuineRisk (anonymous) on February 12, 2008 at 2:27 p.m. (Suggest removal)

Using the avaerage assessment numbers in your article, the average tax bill would go up $766 or 16.4%. I would have no problem with the 8% compensation for lower assessment value and the addition cost of COLA for school and government employees. I am not in aggreement with a 16.4% increase!

Posted by mkowalski (anonymous) on February 12, 2008 at 2:57 p.m. (Suggest removal)

You should've known that our illustrious county govt. would be jacking up the tax rate after looking at your recently mailed assessments. This area has forgotten what it's like to live with financial restraints on, and now they expect us to fork out the cash that we don't have. Mr. Hatrick best portrays that attitude with his comment, "he thinks county residents are willing to pay higher taxes for a better education system". Maybe the folks in Sterling would be willing to pay it if we got it, but we certainly aren't getting it. Look at how many of the schools in Sterling are failing the SOLs and AYP evaluations. Where is the better education that we're paying for?

Posted by ronin718 (anonymous) on February 13, 2008 at 12:36 p.m. (Suggest removal)

Why not just tax income? It's a lot more stable than real estate prices.

Posted by blarf (anonymous) on February 13, 2008 at 12:56 p.m. (Suggest removal)

blarf - I have always been told that Virginia is a Commonwealth - hence the taxing of property, or wealth instead of income.

In any event, with the decrease in assessment, my tax bill still would go up 19% with this tax rate. Just my opinion, but that seems a bit unreasonable to me.

Posted by teden (anonymous) on February 13, 2008 at 2:15 p.m. (Suggest removal)

I can't believe he proposed an increase that size and the schools STILL get 70% ? I don't even have any kids, and am sick of most of my tax money going to schools when there is soo much more to put it towards - like safety (cops) and stopping gangs and illegal immigration! He sure did not ask me!!
I will NOT want to pay higher taxes for schools. I DON'T USE THEM!!!

Posted by travlin.terry (anonymous) on February 13, 2008 at 5:46 p.m. (Suggest removal)

How is this a surprise to anyone?

Republicans and Conservatives out here in Loudoun told you all the way up to the door
of the polls the Dems would be picking your pockets before the chairs in in the county
house reformed to their butts.

Bowers has been pulling this crap for years. Luckily, up until November we had some semi- quasi Republicans at least attempting to hold this jackass at bay. Now he'll be able to steal every dime to his hearts content.

Time for Bowers and Hatrick to go. And if the county passes this budget, I say let's make this the shortest term they have ever seen and demand a special election to get rid of the thieves that were elected in November.

Posted by Quantrill (anonymous) on February 14, 2008 at 11:59 p.m. (Suggest removal)

Here's a better idea - tax the left-leaning folks who put these morons in office in the first place! Some of us would rather have that extra $600 a year in our own pockets rather than have the government mismanage it.

"The economy's bad, so let's take a bigger cut of your lower earnings" - that's socialist logic if I've ever heard it.

Posted by Hoq (anonymous) on February 15, 2008 at 1:31 p.m. (Suggest removal)

Bowers's motto: Beatings will continue until morale improves.

Posted by blarf (anonymous) on February 15, 2008 at 1:49 p.m. (Suggest removal)

That's great! More and more homes are fore-closed and we want to increase the tax to help! And they are talking about building a new county government building!!

Posted by chncsu2000 (anonymous) on February 16, 2008 at 10:15 a.m. (Suggest removal)

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