Budget Includes Property Tax Break, Some Fee Increases

The Prince William Board of County Supervisors yesterday approved a budget of nearly $861 million based on a property tax rate that will mean lower bills for the average homeowner but higher fees related to construction, development and use of county parks and facilities.

Facing a revenue shortfall because of a decline in home sales and a decrease in the value of single-family homes, the board has spent the last three months debating where to cut the budget to maintain the lowest property tax rate of all counties in Northern Virginia.

The budget, along with a real estate tax rate of 78.7 cents per $100 of assessed value, was approved unanimously and without debate.

About $411 million of the budget is for funding schools.

"It was a tough budget season," said Chairman Corey A. Stewart (R). "We faced declining revenues not only in property tax, but recording taxes and sales taxes that I think were all related to the turndown in the housing market. We had to come up with a plan, and I think we did pretty well. We could have, instead of making cuts, raised the tax rate to 88 cents, which would have meant about a $400 to $500 [average] increase in the tax burden. But we thought the most responsible thing we can do is really scour the budget."

Under the adopted budget, the county will hire 30 firefighters and 18 police officers next year. It will also keep open libraries, swimming pools and an adult day-care center in Manassas.

The county eliminated 94 jobs, mostly through attrition. It employs about 4,000 people, not including the school system.

Supervisor Maureen S. Caddigan (R- Dumfries) expressed some concern about funding levels for the school system, which is expected to add about 1,700 students next year, and for the increase in fees that residents will have to pay to use the county's parks. "The Park Authority cuts were $900,000," she said. The budget will eliminate winter golf, some mowing and lining of fields, stocking a county fishing spot, and 23 jobs while raising park fees, she noted. "Our citizens are going to pay more for less service," Caddigan said.

Prince William County, the second-largest county in Virginia, is among the top 10 wealthiest counties in the United States and is projected to be the fastest-growing county in the region over the next 40 years. It has gone from having one of the highest property tax rates in the Washington region to one of the lowest, riding a rising revenue stream fed by the housing boom. But under a five-year plan adopted yesterday, the board will face rising deficits beginning in three years at the current tax rate, according to projections by the county executive. By law the county budget must be balanced.

"It was a tough budget year," said Supervisor W.S. Covington III (R-Brentsville). "There are a lot of issues that bothered me, pushing back some transportation plans, for example. The unknown for the future is how much revenue you are going to be able to fill in with the transportation impact fees that were part of the transportation bill passed in Richmond. We're not sure how that is going to play out."

The vote yesterday ended the budget season for this year, and soon the election season will be in full swing.

All members of the board, except Hilda M. Barg (D-Woodbridge), who is retiring, are running for reelection. Only Caddigan has an opponent in the primary. Caddigan has sometimes been at odds with Stewart over school funding. Stewart was elected chairman last fall in a special election.