Prince William County needs $2.7 billion to pay for all the roads and other infrastructure necessary to keep up with projected population growth in the next five years, but has only $155 million in its budget to pay for it, the county executive said Tuesday.
County Executive Craig Gerhart stressed that county funds based on bonds, proffers and recordation taxes are struggling because of a bleak real estate market.
“Everything we depend on is in the tank,” he said.
The county’s building program for the years 2010 through 2015 includes 45 projects — many of which are road and highway improvements. The $155 million in funding is primarily provided by the county general fund and debt services.
Because so much of county revenue depends on real estate assessments and taxes, Gerhart stressed the need to diversify the county’s revenue base.
The Board of Supervisors, however, rejected measures that would have asked the General Assembly for local authority to levy taxes on admission to events, cigarettes, and food and beverages.
“I just don’t think that we should be looking for new ways to tax residents,” said Chairman Corey Stewart, R-at large.
Other supervisors said they thought it would send the wrong message to Richmond by asking for such powers to increase revenue.
Wally Covington, R-Brentsville, said that because Prince William and Northern Virginia generate a large portion of the state revenue, the region should be rewarded with commensurate state funds.
“If you want me to raise taxes somewhere, which I’m loath to do, you have to get someone to change the formula and stop playing Robin Hood,” he said.
Still, the fiscal challenge remains, Gerhart said.
“[It’s] not a small challenge, but we stand ready to support your efforts to make it happen,” he told the supervisors.
“It’s a lot bigger than $155 million, any way you slice it,” he added.
With the real estate market continuing to struggle, the supervisors approved the Home Help Program, designed to reduce the county’s oversupply of houses on the market — including foreclosed properties — while simultaneously helping county employees buy homes closer to work.
The program will involve up to $50 million in annual loans from SunTrust bank, at no cost to taxpayers, to help county employees buy houses valued at under $300,000. About 2,500 such homes are on the market.
