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Leesburg council approves tax rate and budget
Late-night votes taken April 22 by the Leesburg Town Council approved maintaining the current 18-cent tax rate for another year and also approved the fiscal year 2009 budget.
A roll call vote revealed all but one council member, Kenneth “Ken” Reid, in favor of the 18-cent rate.
The tax rate will go into effect July 1 and generate about $11.73 million in general fund revenues for the town, about $440,000 less than was generated in 2008 under the same tax rate.
“I'm thrilled to be adopting a tax rate that means a lower bill” for most residents, said Councilman Kevin Wright, who said the council focused on lowering Leesburg residents' tax bills.
Town staff had recommended an 18.75-cent property tax rate that would help counterbalance revenue shortfall due to a slumping housing market, which has brought lowered property values.
Town council members, however, argued that the town could meet budget needs without raising the tax rate.
“I think the whole council is very mindful that town residents are being double-taxed [by the county and town],” said Mayor Kristen Umstattd, who is running for re-election this May.
The decision to keep the tax rate at 18 cents is in part a reaction to rising county real estate taxes, which are projected to go up an average of $308. County supervisors voted April 1 to approve a $1.14 property tax rate, up from the current rate of 96 cents.
“Keeping the tax rate down when everybody's tax bills are going up ... and making the town more efficient is in everyone's best interests,” Wright said. “Holding the tax rate steady actually helps businesses.”
Prior to voting on the property tax rate and budget, the council met April 21 for an informal vote approving changes to the budget under the 18-cent rate.
To meet the council's wishes, staff cut more than $700,000 from the general fund, about $150,000 more than necessary to meet the 18-cent rate. The cuts came primarily from social services like fire department, library and parks.
These extra cuts gave the council some cushion to re- appropriate funding for social service organizations that had previously been cut. Council discussed including in the budget $8,000 for a matching grant for the public arts, $6,250 for Loudoun Interfaith Relief, $6,250 for the Loudoun Free Clinic, $3,000 for the Thomas Balch Library, $10,000 for the Loudoun Volunteer Caregivers and $10,000 for the Bluemont concert series.
Council approved these additions formally with the vote April 22.
Council members opposing the expenditures said social services were the county's responsibility and should not be a burden to Leesburg taxpayers.
The council also made room in the budget for the possibility of $280,000 in repairs to the Loudoun Museum, which rents its building at 16 Loudoun St from the town for $1 a year. The museum temporarily shut down in January because of electrical problems, roof leaks and a soggy brick wall.
The council did not meet the Leesburg Volunteer Fire Department's funding request, falling short about $45,000.
“A 10 percent increase is reasonable,” Wright said, pointing out that although not fully funding the department's request, the town was giving it a bump from last year.
Contact the reporter at hhobbs@timespapers.com
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