The Loudoun County Board of Supervisors heard from county staff Tuesday the options before them to pay for the most substantial transportation and economic development project in Loudoun County’s 255 year history.

Will the board vote to create a special two-mile “rail tax district?” Will it implement a new countywide commercial and industrial tax? Will funds for the project come exclusively out of general revenue and gas taxes?

Or, will Metrorail into Loudoun County happen at all?

These are questions likely to be answered before the Board’s July 4 deadline to decide whether Loudoun County will remain as a funding partner for the Dulles Corridor Metrorail Project.

On Tuesday, County Administrator Tim Hemstreet provided options, including the creation of either a one- or two-mile tax district around the proposed Metrorail Silver Line extension and the two stations in Loudoun County and implementing a countywide commercial and industrial tax. Hemstreet also gave projections for general tax increases and revenues from the county’s gas tax in relation to the county’s obligation were it to move forward with Metro into Loudoun County.

Hemstreet’s specific proposals or a combination approach are all on the table, the majority of supervisors agreed. The county administrator stressed that the options are two extremes – one is paying for rail strictly from general revenue and gas taxes, and the other includes no increase to the county tax rate. This could be achieved through a combination of the gas tax, a commercial and industrial tax and a two-mile tax district.

Under the baseline scenario, that which only includes general and gas tax funds, the county would start to see net profit from Metro’s development in 2035. Until around 2025, however, the county would have to implement a roughly 3.5-cent tax hike. In the mid 2020s, some investment return from development will come back to the county’s budget.

Within the proposals for the creation of a two-mile rail tax district, a 9- or 21-cent tax would be implemented on homeowners within two miles of Metro’s track.

Countywide commercial and industrial tax proposals would increase taxes 10 to 17 cents for commercial properties excluding rental properties.

If both a commercial and industrial tax and a rail tax district were implemented, according to one of staff’s briefings, commercial real properties within the Route 28 tax district would pay a total tax rate of $1.605, while Loudoun commercial properties outside the Route 28 district would be $1.425.

Two of the proposals don’t require any increase in the county’s general tax rate. One involves implementing a 21-cent, two-mile rail tax district and using gas tax revenues. Another option is to take revenues from the gas tax, implement a 9-cent rail district and a 10-cent countywide commercial and industrial tax.

Supervisor Ralph Buona (R-Ashburn) said he appreciated seeing the options clearly laid out.

“I’m not sure the answer is in any of these slides, but it shows the flexibility we have,” Buona said. “My kind of viewpoint on this is … those that benefit the most from Metro should pay the most.”

Commuters, landowners at the stations and Loudoun’s businesses will benefit the most, Buona said.

Late in the evening, Supervisor Shawn Williams (R-Broad Run) addressed his colleagues with slight dismay and frustration. Williams, who in the past two months has made passionate speeches for rail, reminded his colleagues that all of them – with the exception of Eugene Delgaudio (R-Sterling) – said they were in favor of Metrorail during their 2011 campaigns for office.

“We all ran on a pro-business, pro-economic development ticket. I remember eight of nine of us, with the exception of Eugene, sat in front of a panel at the Chamber of Commerce and said, ‘Yes, I’m for rail,’” Williams said. “Maybe I don’t understand the shift that’s taken place.

“This rail decision is really about adding an additional transportation infrastructure to our county, which we need. And it’s an economic development engine. And I feel like it’s been twisted into a political issue. And it’s frustrating,” said the Broad Run supervisor.

Supervisor Ken Reid (R-Leesburg) was absent from Tuesday’s meeting.