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Capital Projects On Hold

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County Staff Layoffs Are Also a Possibility

By Christopher Twarowski

Sunday, November 9, 2008

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Facing a tight bond market, a slumping economy and a projected $176 million shortfall in next year's budget, the Loudoun County Board of Supervisors voted last week to suspend 22 capital projects for 90 days.

County officials said the decision, in addition to allowing time for the credit market to thaw, would give them a chance to examine whether the projects should proceed. Those put on hold include improvements to schools, roads, public safety facilities, libraries and community centers.

In another move related to the budget gap, county department heads have been notifying some employees that their positions may be eliminated by July 1, depending on the spending cuts.

WORK ON HOLD IN LOUDOUN

The capital projects suspended for 90 days include:

Fire-rescue stations in Aldie, Sterling and Neersville.
Fire station renovations in Middleburg and Sterling.
The Brambleton Public Safety Center.
The western Loudoun sheriff's substation.
A public safety firing range.
Design of interchanges at routes 50 and 606 and routes 7 and 690.
Off-site road improvements at Woodgrove High School.
Road paving at Allder School.
A juvenile detention center.
The North Street Senior Center and Library Administration.
Renovations to the Bluemont and Lucketts community centers.
The Eastern Loudoun Respite Center.
Gum Spring Library.
Construction of Woodgrove High School and an Ashburn elementary school.
Land acquisition for a middle school and high school in the Dulles area.

"This is real," said County Administrator Kirby M. Bowers, referring to the possibility of layoffs. "We're not talking about expansion here; we're talking about retraction, right-sizing, whatever you want to call it, to match up with our economic circumstances. And so it will have implications."

The project suspensions were recommended to the board by county and school staff members, who also suggested projects that should proceed. That list was also approved by the board at its meeting Monday.

Capital projects are funded through bonds, and Loudoun, like other local governments, typically sells bonds through competitive bids. The financial crisis and lack of liquidity have left many would-be bidders on the sidelines, and government officials say they are worried they might have to pay higher interest rates in the current market.

Loudoun officials say they hope that 90 days will be enough time for the market to improve. After that period, Bowers is to present county supervisors with an update.

"We need cash to operate the county, we need cash to pay bills," said Supervisor James Burton (I-Blue Ridge), chairman of the board's committee on finance and government services and operations. "Since the bond market has tightened up ... there are projects that we could delay the start of."

Among the suspended projects are a high school, elementary school and fire-rescue station that voters approved Tuesday in bond measures. The projects that were given a green light include 10 school facilities, three fire-rescue stations and nine transportation improvements.

The board also voted to authorize $49.3 million in lease revenue bonds to finance the second phase of construction of the county's adult detention center.

The county department heads' meetings with employees whose jobs could be eliminated have been going on for a few weeks, Bowers said.

He said he is preparing budget proposals for next fiscal year based on four scenarios: the same local funding level as this fiscal year, and funding cuts of 5, 10 and 15 percent. Department heads have been drafting lists of priorities in their agencies and notifying employees whose jobs are at risk.

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Bowers said the county is trying to be as straightforward as possible with workers as it makes tough decisions about which services and jobs it might have to eliminate to achieve a budget that does not include tax increases.

"They're letting folks know that it's going to be tough fiscal times," Bowers said of the agency heads. "And if in fact the board eventually adopts a budget that's at those 5, 10, 15 percent reduction amounts, that may well involve service-level reductions in positions. We want to be upfront with people."

He would not say how many workers have received such briefings. The notifications do not mean that those employees will be laid off, he said, only that layoffs are a possibility.

Bowers is to present his budget proposals to the board in February.

Tagged: Board of Supervisors, development, elections, growth, schools

Comments:

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Unfortunately, "right-sizing" at this stage is going to be more like triage. If the governance in this county had been geared more toward responsible financial stewardship and fiscal conservatism, we might've been able to get through with fewer drastic measures. Instead, it was "Hey, Loudoun is the fastest-growing county in the country! Let the good times roll!" - and we now pay for it with an outrageous tax rate.
I hope the first occupants of the detention center are our county leaders, on charges of criminal incompetence!

Posted by Hoqenishy (anonymous) on November 10, 2008 at 7:58 a.m. (Suggest removal)

Hoqenishy - surely you mean our former county leaders? If not for the "develop here, develop now" mentality that excluded holding those that stood to profit the most from investing in the required infrastructure, we would not be in this position. Not unlike what is occuring on the national stage, Loudoun County is a case study in what happens when you let corrupt and outdated ideology run amok with no checks and balance. At least now we have a Board of Supervisors with the politcal courage to make tough decisions.

Posted by mattjack (anonymous) on November 10, 2008 at 9:40 a.m. (Suggest removal)

This measure, like all the other wait and see crap is to little to late. The water is swrilling.......can you hear the big FLUSH.

Posted by Funnyguyva (anonymous) on November 10, 2008 at 10:20 a.m. (Suggest removal)

Hogenishy, are you complaining again about the taxes you dont't Pay. I said it before, your choices not to register your cars in va in order to avoid paying your fair share of the taxes everyone else pays. You have forfited your right to complain. Your comments have no value.

Posted by beenaroundhere40ormore (anonymous) on November 10, 2008 at 10:55 a.m. (Suggest removal)

(This comment was removed by the site staff.)

Posted by Hoqenishy (anonymous) on November 10, 2008 at 11:16 a.m.

Your comments (resorting to personal attacks) still have no value or impact on me. The fact is your statements regarding the spending of tax dollars (you often refer to Personal Property tax, not property tax)to which you do not contribute your fair share, yet you drive on the roads, can call the sheriffs office, fire, rescue, and probably enjoy our parks, libraries and the other benefits that true tax payers fund and enjoy. If you do not contribute to the fund that pays for these things, you forfeit your right to complain about them. I will not dignify your personal attacks with a response.

Posted by beenaroundhere40ormore (anonymous) on November 10, 2008 at 5:02 p.m. (Suggest removal)

So, following your logic, I wouldn't have any right to do any of that in the other state in which I have residence if I moved my registration here, right? I still have property there, and I still fall within the legal residency requirement to register my car there, so I do. It's less convenient and slightly more expensive, but I choose to (legally) register there as a general statement against the travel infrastructure policies and priorities of this county and state. If I were to no longer meet the residency requirement of the other state, I suspect I would have to make other arrangements!

Posted by Hoqenishy (anonymous) on November 11, 2008 at 8:43 a.m. (Suggest removal)

Dual residency, dual citizenship bring with it burdens along with the benefits. One of the burdens is full tax burden in both jurisdictions. As a "Resident" you are obligated to provide for the infrastructure in both locations. You receive fire, police, and schools, and all the other “benefits” in both locations. I would agree that when it comes to Personal Property (Cars etc) you may have to make a choice. My statement is that the choice you have made (to register in the other location) should ethically preclude you from complaining here about the Personal Property tax, its rate, its use etc.. Your real Property Tax in on real estate only, complain about that all you want you have earned the right.

Posted by beenaroundhere40ormore (anonymous) on November 11, 2008 at 9:31 a.m. (Suggest removal)

Sounds good. When I say "tax rate", this is generally what I'm referring to... unless the personal property tax rate went up the same amount as the real property tax rate. I honestly don't know the answer to this.
And it's not "may have to make a choice", it's "-do- have to make a choice." You cannot legally have a car registered in two states according to authorities on the subject in both states.

Posted by Hoqenishy (anonymous) on November 11, 2008 at 10:46 a.m. (Suggest removal)

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