Loudoun County Finance/Government Operations and Economic Development Committee Meeting – December 9, 2025

The Finance, Government Operations and Economic Development Committee (FGOEDC) of the Loudoun County Board of Supervisors met on December 9, 2025, at 5th Floor, 1 Harrison Street, Leesburg, VA. The committee approved a consent agenda, received the monthly economic development report and FY2025 audit results, took action on uses of unassigned general fund balance, discussed service levels for the FY2027 budget, and provided final budget guidance. Key outcomes included funding for a crosswalk safety study, an invasive species removal program, and budget parameters directing 9% county operating growth and increased housing fund contributions.

Consent Calendar

• Items approved unanimously (3–0 with Chair Randall and Supervisor Laterno off the dais):
  • Contract Award – Construction of the Sterling Boulevard W&OD Trail Overpass
  • Contract Award – Automatic External Defibrillators (AEDs) & Accessories
  • Shellhorn Road Extension Additional Funding Request
  • Fiscal Impact Committee 2025 Annual Report
  • Fiscal Impact Committee Bylaws Amendment 2025
  • Sheriff’s Office Utilization of Federal and State Asset Forfeiture Funds (including $180,000 for TRM forensics pro, $210,000 for analyst notebooks, $32,000 for a zodiac boat, $75,000 for thermal imaging)
  • Disability Services Board Bylaws Amendment 2025
  • Board of Equalization 2025 Annual Report

Discussion Items

• Monthly Department of Economic Development Report: Staff reported 57 wins, over 500 business retention activities, and support for creation/retention of over 4,600 jobs to date in FY25. November job listings in Loudoun exceeded 3,000 newly posted and 11,400 total active. Weekly continued unemployment claims remained steady at 1,000–1,100. A WARN notice for an Amazon distribution facility in Sterling will affect 247 jobs effective January 30, 2026; Amazon stated employees may transfer. The department launched an FY25 annual report inspired by Spotify’s “wrapped.” The Economic Development Advisory Commission (EDAC) reported recent tours and panel discussions, and thanked outgoing commissioners. Supervisor Saines noted 43 Inc. 5000 companies in Loudoun. Discussion highlighted tight flex/industrial space and the Amazon layoff’s relation to national tech adjustments and AI.

• Results of FY2025 Financial Audit and Year-End Financial Condition: Elaine Crawford (interim Finance and Procurement director) and auditor Maliv Sheth (Cherry Bekaert) presented. The county ended FY25 with a positive net position of $3.5 billion, up $163 million (4.8%) over FY24. General fund revenues exceeded revised budget by $154.9 million (5.7%); expenditures were under budget by $74.7 million (2.6%). The county received an unmodified (clean) audit opinion with no material weaknesses. The fiscal reserve totaled $340 million (10% of operating revenues). Unassigned general fund balance stands at $194.4 million.

• Uses of FY2025 Unassigned General Fund Balance (Item 5): Staff recommended allocations including a new $19 million federal impacts contingency fund and $10 million for cybersecurity. The committee debated several proposed uses. Motions passed:

  • Whitfield Place Crosswalk Safety Improvement Study ($950,000): Approved 4–1 (Supervisor Umstead opposed) – to fund a study after a pedestrian fatality; funds drawn from federal impacts contingency.
  • Invasive Species Removal Program ($2,000,000): Approved 4–1 (Supervisor Umstead opposed) – to replenish the highly successful program; funds from federal impacts contingency. Supervisor Umstead expressed concern about using contingency for this purpose.
  • Packet Motion (as amended): Approved 5–0 – directed $123,692,805 for FY2026 uses, included $34 million for one-time FY27 purposes, $25 million to fiscal reserve, $11.7 million to self-insurance fund, and accepted staff’s other recommended uses (including $10 million cybersecurity, $19 million federal contingency, etc.).

• FY2027 Budget Development – Glass Recycling Program Expansion: Staff presented three scenarios: current service level (Scenario 1), expansion to Ashburn, Algonkian, and Dulles South (Scenario 2), and countywide equitable access (Scenario 3). Staff recommended achieving current service level first (completing nine drop-off centers) before expanding. The committee expressed consensus for Scenario 2 (three new mobile trailer sites), using plastic bag tax funds, with timeline subject to budget.

• Recommended Service Levels – Department of Finance and Procurement: Staff presented performance measures for accounting/financial reporting, contracting, and grant management. Noted 1.5 million general ledger transactions processed annually, 65 solicitations (20-week average processing time, targeting 17 weeks), and 57 nonprofit grant applications (95% efficiency rate). New Oracle Fusion platform expected to improve efficiencies.

• Recommended Service Levels – Fire and Rescue: Chief presented current capabilities, staffing challenges, and four-person engine company proposal per NFPA 1710. Discussed year-round recruiting, training investments, and future high-rise response readiness. Committee asked about volunteer staffing and regional partnerships.

• FY2027 Budget Development – Final Budget Guidance: Staff recommended 9% county operating budget growth, 8% LCPS growth, maintaining real property tax rate at $0.805 per $100, personal property at $4.15, and vehicle tax at $3.09 (first full year). Excess Local Tax Funding (LTF) would be directed to CIP and housing (10% originally; later amended to 20%). Chair Briskman emphasized responsibly managing slowing data center revenue growth. Supervisor Saines supported 9% as a first step in constraint. Supervisor Umstead preferred county growth at 8% and a half-penny to full-penny real property tax reduction; she opposed funding the arts program as a priority. Chair Randall clarified the guidance on vehicle tax rate is for one year. Supervisor Laterno opposed the overall approach, advocating for lowering the vehicle tax rate to $3.00 (estimated $2.2 million impact) and not locking in high growth rates. Vice Chair Turner argued that holding tax rates steady avoids increasing dependence on data center revenue and prevents sharp future rate hikes.

• Cigarette Tax Dedication: Chair Randall’s motion to dedicate the cigarette tax (approximately $3 million/year) to the housing fund for down payment and closing cost assistance passed 5–0. Chair Randall expressed frustration that the tax had not previously been used for this purpose despite her repeated requests.

Key Outcomes

• Consent Agenda: Approved unanimously (3–0, with Chair Randall and Supervisor Laterno off dais).
• Fund Balance Motions:
  • Whitfield Place Crosswalk Study: Approved 4–1.
  • Invasive Species Removal: Approved 4–1.
  • Packet Motion (as amended): Approved 5–0.
• Cigarette Tax Dedication: Approved 5–0 – directs revenue to housing fund for down payment/closing cost assistance.
• FY2027 Budget Guidance: Approved 3–2 (Supervisors Umstead and Laterno opposed) – directs County Administrator to prepare the proposed budget using:
  • Real property tax rate: $0.805/$100 assessed value
  • General personal property tax rate: $4.15/$100
  • Vehicle personal property tax rate: $3.09/$100
  • County operating budget growth: 9%
  • LCPS operating budget growth: 8%
  • Excess Local Tax Funding: 20% to housing fund, remainder to CIP (reducing from staff-recommended 10%)
• Next Steps: The county administrator will incorporate guidance into the FY2027 proposed budget, to be presented to the full Board of Supervisors in early 2026.