Pr. William May Take Tax-Rate Crown

County Proposes Deeper Cut Than Arlington as Both Unveil Budgets

The boom in Prince William has driven up home values, allowing for tax-rate cuts, but has also forced such expenditures as the construction of Wentworth Green Middle School. (By Jahi Chikwendiu -- The Washington Post)

Prince William would surpass Arlington as the county with the lowest tax rate in Northern Virginia, according to spending plans released yesterday by the two jurisdictions.

For more than 20 years, Arlington has boasted the lowest tax rate among the largest jurisdictions in Northern Virginia, while Prince William historically has been one of the highest. But soaring tax revenue in the growing county led Prince William County Executive Craig S. Gerhart yesterday to propose slashing the county's tax rate by about 15 cents, more than double the proposed rate cuts offered by his counterparts in Arlington, Loudoun and Fairfax counties.

The rate cut would keep the average Prince William tax bill the lowest in Northern Virginia, county officials said. But property owners still would pay 5.7 percent more in taxes than last year in part because the county had the region's highest average increase in assessments, 25.5 percent.

Gerhart, who presented an $853 million spending plan for fiscal 2007 to the Board of County Supervisors yesterday, said the tax-rate reduction was a dramatic turnaround for a county that six years ago had the highest tax rate among its neighbors -- $1.42 for each $100 in assessed value. Yesterday's proposal would put the tax rate at 81.4 cents for each $100 in assessed value.

"We have gone from being at the top of the chart to the bottom of the chart," Gerhart said.

Arlington County Manager Ron Carlee yesterday proposed an $807 million budget that would set aside $26.1 million that he said could be used by the County Board to cut the tax rate by a nickel. If the board decides to do that, Arlington's tax rate would be 82.8 cents for each $100 of assessed value. A deeper cut would allow Arlington to retain the lowest rate; board members have said they will consider trimming the tax rate again this year.

Arlington homeowners on average would pay about $4,486 in taxes, an increase of $463, or 11.5 percent, from the year before. In Prince William, the average tax bill would rise to $3,346.

As more people move to Prince William, the estimated 370,000 people there have put a burden on county services, especially transportation, Gerhart said. Yesterday he proposed creating a county transportation agency of 60 employees that would concentrate solely on roads. The county has a 44-person transportation division under the Department of Public Works, which would be replaced. In the budget, 16 employees would be added.

The creation of a separate transportation department reflects Prince William officials' lack of trust in state transportation officials to address traffic congestion in Northern Virginia, the same frustration that led Fairfax County to set up a separate road agency more than 25 years ago. The Virginia Department of Transportation is supposed to maintain and build most of the state's roads.

Prince William officials are considering a proposal under which a developer would spend money to untangle the interchange at Interstate 66 and Route 29 in exchange for approval to build 6,800 homes nearby. The officials said they believe this is the fastest way for the interchange to be rebuilt.

The county transportation agency "is a sign of Prince William County taking on more of a role in transportation from the state. It's a reflection of the obvious that we need to do a lot of self-help," said Sean T. Connaughton (R), chairman of the Board of County Supervisors.

Supervisor Corey A. Stewart (R-Occoquan) said he was skeptical of setting up a separate agency for transportation. He said he would "hate to see more money go to bureaucracy and not to projects themselves."

Supervisor John D. Jenkins (D-Neabsco) said that the issue of transportation needed more visibility and power and that a separate department could give the county clout when working with state and federal transportation agencies.

Schools and public safety would get more dollars this year under the spending plan. Fire and rescue would get 36.5 new positions, and 29 police and five sheriff positions are proposed to beef up public safety, pushing the public safety budget to $139 million, a 12 percent increase. Schools would get $401 million.

Prince William's tax rate includes a 4.7-cent fire levy. Excluding the special tax for fire and rescue, the proposed rate actually would be under 77 cents, officials said. The board is scheduled to vote on the spending plan April 25.

In Arlington, Carlee proposed a tight budget that calls for no additional programs. Spending would rise 6.3 percent, including a 6.8 percent increase in money for the county schools.

"The budget I have proposed to you is really a sustainable budget," Carlee said. "It's not a budget that does anything new or exciting or different. A lot of what we do in Arlington is new and exciting every day . . . but in terms of adding new programs, staff or initiatives they are not in the . . . budget."

Under Carlee's budget, the Arlington public schools would receive $309.8 million. The County Board will vote on the budget April 22.