The new Loudoun County administrator’s proposed budget for next year would raise the average homeowner’s tax bill by about $500 and cut more than 100 county government positions.
The national recession and weak real estate market once again present the county with painful options, after the Board of Supervisors shaved about $180 million in spending and cut 85 positions from the county government last year.
Even with an increase in the property tax rate from $1.14 per $100 of assessed valuein fiscal2009 to $1.245 last year, the average tax bill in the county dropped by an average of 7 percent, or $383, because of declining home values. The value of taxable assessments in the county dropped from about $60 billion in 2008 to $53.5 billion in 2009.
But the proposed rate of $1.40 for fiscal 2011 would raise the average bill by 10 percent, or $505, after a more modest drop in assessments this year, to $52.2 billion.
“It’s a very unusual situation,” said County Administrator Tim Hemstreet. “The revenue base is declining while the population continues to grow, homes and buildings are still being constructed, businesses continue to open, and the use of many county services continues to increase.”
The budget projects that the average home value will start to increase again by 2011, when the average value of a single-family house is projected at $390,000.
Hemstreet proposes cutting about 105 full-time-equivalent positions in the county government. With some proposed staff additions, such as personnel for the second phase of the Adult Detention Center, there would be a net reduction of about 30 positions.
The budget did not factor in Virginia Gov. Bob McDonnell’s recent proposal to undo the freeze in a state education funding formula,which distributes tax dollars for schools based on relative economicgrowth of Virginia jurisdictions. The freeze would have cost the county up to $34 million.
A series of public hearings are scheduled for the budget, which will be adopted in the spring. Hearings are scheduled for Feb. 24, 25 and 27.
Proposed budget changes
Year Total expenditures Property tax rate Avg. change in tax bill
2010* $1.13 billion $1.245 -7%/-$383
2011** $1.16 billion $1.40 10%/$505
*adopted
**proposed
Source: Loudoun County government
