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County plan would cut jobs, raise property tax rate
Staff layoffs, service cutbacks and a residential property tax rate hike are all part of the county administrator's formula for coping with Loudoun's $200 million budget shortfall.
During a 20-minute budget presentation to the Board of Supervisors Feb. 9, County Administrator Kirby Bowers proposed a residential tax rate increase from the current $1.14 per $100 of assessed valued to $1.29.
“The dramatic rise and subsequent decline of residential property [values] in Loudoun County has had its effect,” Bowers said.
Sales taxes, residential tax revenues and business licenses and fees all have declined, putting the county in its current situation, Bowers told the board.
Residential property assessments in Loudoun dropped an average of 14 percent in a year, while foreclosures have more than doubled since 2007, cutting deeply into the county's tax revenues.
Even under the higher tax rate, the dropping home values mean many homeowners would actually receive a lower tax bill than in the past.
A home assessed at $500,000 last year would have been taxed about $5,700 under the $1.14 tax rate. This same home -- now valued at 14 percent less, or $430,000 -- would be billed for about $5,547 in taxes under the $1.29 rate.
The higher tax rate in itself will not solve the county's budget woes.
Bowers also presented Loudoun's nine supervisors with a four-tier plan of reductions, starting with 5 percent cuts and ending with up to 20 percent reductions to government staff and services.
County government department heads were asked to meet with staff last week to prepare them for the likelihood of layoffs.
The effects of the staff cuts on county services will be “pretty severe,” said Terry Wharton, director of the Department of Building and Development.
Loudoun County employs 3,187 full- and part-time workers, not including employees of the public schools. Under the scenario of the most extreme cuts, the county would eliminate about 400 positions and save $46 million.
When asked if county staff could expect furloughs -- unpaid mandatory leave -- Wharton said everything is on the table.
Estimated salaries under the fiscal year 2009 budget projections total more than $243 million, according to county documents.
The key to making these cuts, Bowers said, is finding a “balance between service needs and affordability.”
In response to the budget presentation, Chairman Scott York (I-at large) prioritized public safety and education as departments where funding cuts should be limited.
“I will not sacrifice the services of law enforcement and fire and rescue,” he said.
Supervisor Eugene Delgaudio (R-Sterling) responded by saying he would not support an increase in the residential tax rate, as proposed by Bowers.
“Even though we have a reduction to funding and even though assessments are going down ... my position is that [the tax rate] needs to go lower,” he said.
The bleak picture painted by this year's budget cuts could be just the beginning, supervisors warned.
“This is going to be a very difficult year,” said Supervisor Lori Waters (R-Broad Run). “I think we need to prepare ourselves that next year may be an equally or more difficult year.”
I visit the courhouse the other day and was appalled at the waster of six deputies standing around. Why don't we outsource these jobs, it would be less expensisve and save the taxpayers money. How many deputies do we have milling around the courthouse?
Posted by disgustedtaxpayer
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They can't keep raising taxes and property rates. People just can't pay it. I've had my salary reduced and I can't deal with increases. I agree that police, fire/rescue can't be cut at all, but there is plenty of waste in government that can go without penalizing citizens.
Posted by Waya
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I'm sick and tired of my taxes going higher because the people who run this county can not get off there ???? and
do the right thing. Cut your pay check in half and try to live off what other people make and see how you like your
house payment going up every year due to taxes alway going UP UP UP UP. Cut
ALL Goverment Boss pay and leave the little people alone for once. And Leave the School alone also. Same apply to them like Hatrick.
Posted by MightyMouth
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County staff, wages and benefits need to be cut just like any private business. LoCo his hugely bloated on top of the fact that many residents get a double taxation from their respective town governments. If it were me I'd abolish town governments. They are redundant. What does the town do for me that the county and my HOA don't? Absolutely nothing except cost me more money. It's a needless layer of government. Truly, the county provides, police, fire, parks, and every other service we need while the HOA's provide trash service, plowing and any service we need that the county doesn't provide. What does the town government provide that I don't already pay Loudoun and my HOA for? It sure would save everyone some money if the town governments were done away with.
As for a reduction in services? You raise my tax rate to the point that after an $80,000 assessment drop I'll pay a mere $200 less in taxes a year. Seems like a little belt tightening by the government could prevent us taxpayers from suffering reduced services. Seriously, you raise my taxes to offset the reduction in value of my property, collect almost the same amount of money from every resident and you want to reduce services? Unacceptable.
When my tax bill goes down your services can be reduced.
Make each county employee actually work a full day like the rest of us and you may find you are paying too many people needlessly.
You might look at the list of employees making over $75,000 of taxpayers' money annually. I know I look at that list every year and it disgusts me. How many assistant to the assistant to the assistant secretaries do we need making $95,000 a year?
LoCo could easily reduce itself by 30% and it should. Stop serving yourselves and serve your taxpayers.
Posted by SomeGuy
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The good news - my real estate taxes will go down $465. The bad news - I am one of the employees of Loudoun County who will lose their job. So neighbors, when you complain about no services next year, remember you get what you pay for.
Posted by stuckinthemiddle
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It really puzzles me why every article I read about property taxes in LoCo, be it in this paper or the two others that cover the county, they are always focusing on the tax rate, like that is all that matters, like it is a single value equation. In reality, no one really cares about the tax RATE, they care about their tax BILL, which is a calculation based on the tax rate and the assessed value of their homes.
Obviously if assessed values go down, the tax rate must go up to keep the county income (and an average, everyone’s taxes) the same. Did anyone really expect just because assessment values plunged the tax rate would stay the same and the county would just simply run on less? We’re talking about the government!
Is the government bloated and in need of cuts? Absolutely. But that is not because of a budget shortfall; that is because of fiscal irresponsibility when times were good. Now you need to pay the price for that irresponsibility when times are tough. If you want that to stop happening, stop voting Democrats into the county board seats.
Posted by TimessemiT
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Did anyone take a look at what offices will be cut back the most? There are some huge ommissions for departments that can arguably be reduced without comprising quality programs. Making the schools and public safety more efficient would benefit us all. It seems to me that if the school system constitutes 76% of the budget than they really do need to be as efficient as possible. It doesn't seem like the projected budget had logical reductions. I really feel the Cooperative Extension Office is being unfairly targeted. They provide a ton of great resources and function off very little money. That is just one example of many projections with skewed cut backs.
Posted by mituck
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