Loudoun County Finance/Government Operations and Economic Development Committee Meeting - September 9, 2025

The Finance/Government Operations and Economic Development Committee (FGOEDC) of the Loudoun County Board of Supervisors met on September 9, 2025, to discuss the impact of ongoing federal actions, receive the monthly economic development report, and deliberate on FY 2027 budget development. The committee adopted a consent agenda with several procurement and contract items, and heard presentations on multi-year revenue forecasts and recommended service levels for IT and public affairs. Key discussions centered on federal policy changes, budget sustainability, and tax relief options.

Consent Calendar

• Adopted unanimously (5-0) including: Award authority increases for IT professional services, IT staff augmentation, telecommunications and internet services, heavy-duty transit buses, elevator equipment/service/repair, and contract renewals for architectural services, paratransit ADA buses, vehicles/motorcycles, COTS software, IT services, and a contract award for vehicles through Class 7. Also included: Consolidated Annual Performance and Evaluation Report (CAPER) for federal FY 2024-2025, and proposed amendments to the Home Accessibility and Repair Program (HARP) raising the maximum loan from $25,000 to $35,000.

Public Comments & Testimony

• No public comments were received.

Discussion Items

• Impact of Ongoing Federal Actions Update: Staff (Megan Bourke, Mike Franks) and federal lobbyists (Clarence Williams, Alfonso Lopez) presented on HR 1 (the "One Big Beautiful Bill Act," signed July 4, 2025). Key provisions: narrowing Medicaid/SNAP eligibility for lawfully present residents, expanded work requirements (ages 18–64), and reduced eligibility re-verification from annually to every six months. An executive order requiring review of discretionary grants and retroactive review of existing awards was also discussed. An estimated $25 million in federal funding for Loudoun County Public Schools is under review. The committee noted significant uncertainty; staff will monitor and report quarterly. Chair Briskman clarified that the county did not lose an EV charging grant—assumptions were changed. The county has 10,866 Medicaid expansion members and 50,500 combined Medicaid/CHIP recipients. Several supervisors expressed concerns about increased administrative burdens, potential clawbacks, and the need to track federal-impact resource needs in the budget. A consensus emerged to request staff identify budget resources attributable to federal actions.
• Monthly Department of Economic Development Report: Colleen presented KPIs, highlighting growth in the cybersecurity cluster via monthly cyber tech meetups. Unemployment in Loudoun County rose from 2.6% to 3.4% year-over-year (VA: 2.6% to 3.4%; US: 4.0% to 4.3%). Staff noted increased traffic in job-seeker programs, but contractor job losses are difficult to track. EDAC Chair Tim Shimbarra and Vice Chair Matt Holbrook reported on recent activities, including site visits, commissioner interviews, and upcoming studies on the Ravana project and retail corridors.
• FY 2027 Budget Development – Multi-Year Revenue Forecast: Staff (Megan Bourke) presented long-term projections showing a revenue plateau in the early 2030s as data center personal property depreciation slows. The committee discussed four scenarios to constrain operating budget growth to 9% and handle excess revenue (estimated at ~$200M in new local tax funding).
  • Scenario 1: Maintain real property tax rate, direct $25M excess to CIP (swap debt for cash).
  • Scenario 2: Same, but dedicate 10% of excess to the Housing Fund.
  • Scenario 3: Set both county and schools at 9% growth (no 60/40 split), resulting in $124M to schools and less CIP cash.
  • Scenario 4: Reduce real property tax rate by one penny (~$20M), reducing excess to $5M. Staff recommended holding the real property tax rate stable to preserve long-term fiscal health and avoiding further vehicle personal property tax cuts now. Several supervisors expressed interest in scenario two, with some wanting a higher housing fund percentage, and others favoring a modest vehicle tax reduction. Staff will return with formal budget guidance in the fall.
• FY 2027 Budget Development – Recommended Service Levels (Part II): Two presentations:
  • Department of Information Technology (DIT): Director Nate Wentland outlined goals to improve first-call resolution from 60% to 75%, customer satisfaction from 80% to 90%, and reduce resolution time from 2.5 to 1.5 days. Project management targets: on-time delivery from 70% to 85%, customer satisfaction from 85% to 90%, and reducing project duration by 10%.
  • Public Affairs and Communications (PAC): Director Glenn Barber reviewed administration and external communications activities. Challenges include high demand (20,000+ services/year), limited resources, and evolving expectations. Current service levels are inconsistent; targets include 95% on-time delivery for required/elective services, 90%+ customer satisfaction, and achieving 75% media inquiry resolution within 48 hours (staff noted many are resolved within 24 hours). Chair Briskman praised the office’s work, highlighted accessibility communication gaps, and asked for proactive messaging to counter misinformation.

Key Outcomes

• Consent agenda adopted 5-0.
• Guidance on federal impacts: Staff will identify resource needs in the budget that are direct results of federal actions; committee will receive quarterly updates (next likely December, but may request a mid-November briefing due to flux).
• Guidance on budget development: The committee generally supported constraining operating budget growth to 9%, with preference for Scenario 2 (directing some excess revenue to Housing Fund and CIP). No formal vote was taken; staff will model scenarios including potential modest vehicle tax reduction and return with formal budget guidance in the fall.
• Service level presentations noted; no formal action required. Staff will continue to refine service level definitions and performance measures.