Loudoun's New Budget Takes Into Account Coronavirus Impact

LOUDOUN COUNTY, VA — The Loudoun County Board of Supervisors approved a budget Tuesday totaling about $3 billion in total appropriations for the county government and county school system for fiscal year 2021, which begins July 1. The county board said the budget takes into account an expected revenue shortfall in the upcoming fiscal year of up to $100 million due to the coronavirus crisis.

In adopting the 2021 budget, the Loudoun County board said it recognized the uncertain financial future the county faces because of the coronavirus crisis and took action to give the county flexibility in managing the economic impacts. The original fiscal year 2021 budget revenues were estimated on assumptions of economic growth that are "unlikely to be fully realized due to COVID-19," the county said.

The adopted budget includes a real property tax rate of $1.035 per $100 in assessed value, one cent lower than the current tax rate.

For the upcoming fiscal year, $100 million will be placed into a reserve, with $40 million designated for county government expenditures and $60 million for Loudoun County Public Schools. These funds will be held in reserve until released by the board.

When including the $60 million of reserved Loudoun County Public Schools expenditures, the fiscal year 2021 fully funds the county school board’s Feb. 4 adopted budget request.

For the $40 million in county government-reserved expenditures, this freeze includes most new expenditures, including a 3.5-percent merit increase for eligible county employees and step increase for public safety employees; operating and maintenance adjustments; and new departmental resource requests for capital facility openings and departmental priorities.

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Loudoun County Administrator Tim Hemstreet is taking action to limit expenditures in the remaining months of fiscal year 2020, which ends June 30, including instituting a hiring freeze for vacant positions and directing departments to limit all nonessential operating and maintenance expenditures for the rest of the fiscal year, the county said.

In adopting the budget, the Loudoun County board temporarily paused new capital projects that include debt financing until conditions improve for the county to enter the municipal debt market.

At its Tuesday evening meeting, the county board also adopted an amended fiscal year 2021-2026 capital improvement program totaling $2.9 billion. Transportation projects account for the largest expenditure percentage at 40 percent. They include widening a portion of eastbound Route 7 between Loudoun County Parkway and Route 28 and an intersection improvement on Shellhorn Road.

Other new projects include the Broad Run Farms waterline extension, planning for a linear parks and trails system and critical technology infrastructure projects for the county government.

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