By Amy Gardner and Leef Smith
Washington Post Staff Writer
Wednesday, February 15, 2006; B01
Another year of skyrocketing property values will allow at least two Northern Virginia communities to increase spending on schools, public safety and other government services while reducing their real estate tax rates.
Alexandria and Loudoun County officials introduced spending proposals yesterday for the coming fiscal year that would sharply increase real estate tax bills even as tax rates head lower.
In Alexandria, property owners would pay an average of 10.6 percent more in taxes, and those in Loudoun County would see bills rise 24 percent.
Both budget proposals face hearings, debate and possible changes before their final approval in the spring.
Soaring assessments have given most local governments across the Washington region the opportunity to greatly increase spending. Many local officials have justified the increases as the only way to defray the costs of inflation and major growth -- including the need for new schools, police officers and, in some localities, roads.
"Unfortunately, the continued onslaught of development comes with a cost," said Scott K. York (I), chairman of the Loudoun County Board of Supervisors. "The cost to our citizens continues to rise."
This month, officials in Fairfax, Prince William and Arlington counties will also propose their budgets for the fiscal 2007.
In Alexandria, where City Manager James K. Hartmann presented a $503.5 million spending plan for the fiscal year beginning July 1, real estate assessments rose an average of 19.5 percent. The average homeowner would pay $427 more in residential property taxes, even with a tax rate reduction of 6.8 cents -- from 91.5 cents to 84.7 cents per $100 of assessed value.
Hartmann's proposal would increase spending by $33 million, or 7 percent, over the current year while holding the line on city services, adding the equivalent of nearly seven employees and providing a 3 percent cost-of-living raise for city and school staffers.
The plan would provide $150.4 million -- an $11.6 million increase -- to the Alexandria City public schools.
Hartmann prepared an "alternate" fiscal plan that could reduce the budget by an additional $5.9 million and allow an additional 1.8 cent real estate tax rate reduction, but that alternative, he said yesterday, would mean "not painless" choices.
"I think there will be some people hoping for a smaller budget and some people who'd like to see some services that are not funded at 100 percent funded at 100 percent," Hartmann said. "But we've put together a responsible budget."
In Loudoun, average tax bills would rise even more steeply than in Alexandria: $1,000, according to a proposal presented by County Administrator Kirby M. Bowers. The $1.13 billion operating budget for schools and government would increase spending by about 16 percent over this year while lowering the property tax rate by 7 cents, to 97 cents per $100 of assessed value.
Bowers said the increases are needed to fund Loudoun's recent growth. Facing the demands of 12,000 to 15,000 new residents each year, Bowers proposed adding 223 full-time positions, nearly half of them in public safety, and spending more than $328 million on capital projects, most of them schools.
Bowers also proposed spending more than $45 million on road projects, including a new interchange where Loudoun County Parkway meets Route 7. For future projects, he proposed asking voters to approve more than $200 million in borrowing.
Bowers's idea of funding transportation projects with bonds reflects a growing frustration among Northern Virginia officials, who say too few state resources have been devoted to solving the region's growing traffic crisis. Yesterday, Prince William County Executive Craig S. Gerhart introduced a capital improvement program seeking voter approval for $236 million in road bonds. Sean T. Connaughton (R), chairman of the Board of County Supervisors, said the county is increasingly stepping in when the state does not appear to be moving quickly enough or at all.
He said the county is trying to stick to local roads with the referendum but has considered expanding into state territory. "The situation has gotten so desperate that we're now looking at interstates," he said.
In Loudoun, some supervisors who want to keep tax bills in check have said they will try to further lower the tax rate to about 89 or 90 cents.
"Government spending should not increase faster than those two figures," said Supervisor Mick Staton Jr. (R-Sugarland Run).
Staff writer Nikita Stewart contributed to this report.
