Finance/Government Operations and Economic Development Committee Meeting - May 12, 2026

This meeting of the Loudoun County Board of Supervisors Finance, Government Operations, and Economic Development Committee, chaired by Chair Briskman, addressed a wide range of topics including federal workforce downsizing impacts, the county's economic development status, water utility updates, volunteer fire and rescue internal controls, nonprofit grant funding, transit contract renewal, and a project labor agreement pilot. The committee adopted a consent agenda with several contract renewals and awards, heard multiple presentations, and voted on action items.

Consent Calendar

• Items Adopted: The committee approved the consent agenda, which included: Quarterly Report FY2026 Third Quarter Financial Update (Item 5); Contract Renewals for Information Technology Consulting (Item 7), Intersection Improvement Design Services (Item 8), AT&T Equipment and Services (Item 10), and Compressed Natural Gas Fuel Card (Item 11); and Communications Commission 2026 Bylaws Revision (Item 13). A brief discussion on Item 11 clarified the increase in the fuel card authority from $600,000 to $1.3 million was due to extending the contract period and fleet expansion, not solely gas prices.

Discussion Items

Presentation on Federal Government Downsizing Impacts

• Speaker: Dr. Tracy Hadden Lowe, Fellow at Brookings Institution, presented on the DMV Monitor project tracking the regional economy under the second Trump administration.
• Key Data: Over 300,000 federal workers have left government nationally. Loudoun County lost 16.5% of its federal jobs in 2025, though private sector job growth partly offset that. The region lost more jobs in 2025 than any other major metro area; unemployment rose at over three times the national rate. Black workers experienced unemployment nearly double that of white workers. Internships declined sharply, and venture capital flow to DMV startups lagged national trends. Residential listings surged, and consumer spending at local businesses dropped.
• Positions: Dr. Lowe emphasized the need for regional collaboration and data-driven responses. Chair Randall expressed concern about federal agency relocations and the disproportionate impact on African Americans. Supervisor Umstead asked about gender disparities. Supervisor Laterno questioned the methodology for federal job loss data within Loudoun, noting discrepancies with county data. Dr. Lowe offered to coordinate with staff.

Monthly Economic Development Report

• Speakers: Buddy Rizer (Economic Development Director) and Jan Kernan (REDC Chair).
• Updates: Small Business Week saw 15 business visits; the spring farm tour featured 42 farms. National CPI rose 3.8% year-over-year; consumer sentiment hit a record low. Loudoun's unemployment rate was 3.8% as of March 2026. International business efforts included successful trips to India and participation in Select USA.
• Rural Economy: REDC reported that equine and livestock sectors showed stability, but wineries, breweries, and horticulture faced significant strain. Recent frost caused 50–90% grape losses, prompting a request for a state of emergency. Agritourism remains critical. Workforce challenges related to immigration policies were noted.
• Discussion: Chair Randall highlighted a 6% gain in farmland, pushing back against narratives of loss. She expressed support for the wine industry's emergency request. Supervisor Umstead asked about the trend of rising unemployment (Loudoun's rate increased 39% year-over-year). Supervisor Saines inquired about international markets and the need for venture funding and entrepreneurship programming.

Loudoun Water Annual Update

• Speakers: Brian Carnes (General Manager), Mark Peterson, and others from Loudoun Water.
• Financial Condition: Triple-A credit rating from all three agencies; $1.2 billion capital spending plan over five years. Rates remain competitive (quarterly bill ~$300 vs. $344–$442 in neighboring jurisdictions). Major projects include Broadrun Water Reclamation Facility expansion (from 10 to 30 MGD over 10–15 years), Milestone Reservoir (1.25 billion gallon storage, completion spring 2028), and Leesburg JLMA infrastructure.
• Cybersecurity: Active threat intelligence and incident response updates.
• Data Centers: Mark Peterson explained Loudoun Water's proactive planning, including a reclaim water system that supplies about 12–13% of total water portfolio to data centers. The county's stringent discharge regulations necessitate high-level treatment.
• Discussion: Supervisor Saines requested monthly updates on the Sterling Boulevard water main replacement. Supervisor Laterno raised resident complaints about chlorine taste and delays in posting the 2025 water quality report; staff noted flushing season and said the report is forthcoming. Supervisor Laterno also questioned future rate increases; staff indicated rates may drop after the current three-year cycle. Chair Randall praised the board's transparency and professionalism and asked about the impact of a recently passed state faith-based housing bill on water infrastructure; Loudoun Water noted master planning can accommodate growth.

Volunteer Fire and Rescue Internal Control Maturity Review

• Speakers: Elaine Crawford, Megan Cox, Tiffany McCoy (Cherry Bekaert), Brad Grubb.
• Findings: Reviewed seven volunteer fire and rescue companies (Cohort 1). Scores ranged from 90% to 48%. Four companies had strong functioning controls, one moderate, two average. Weakest area was vendor management. Recommendations included formalizing policies, improving documentation, and providing refresher training.
• Discussion: Supervisor Umstead noted challenges in recruiting volunteers for accounting roles. Chair Randall asked about enforcement; staff clarified that the board can restrict funding if recommendations are not followed, but there is no history of noncompliance.

Action Items

Human Services Nonprofit Grant Funding Recommendations (FY2027)

• Proposal: Staff recommended awarding $3,958,331 to 42 organizations (38 standard, 4 mini grants) from 56 applications. Eight organizations scoring above 75% threshold were not funded due to budget constraints. Funds align with four areas of need: prevention/self-sufficiency (47%), crisis intervention (29%), long-term support, and improved quality.
• Discussion: Chair Randall asked about duplication of services and feedback for unsuccessful applicants. Supervisor Umstead explored definitions of leveraging. Supervisor Saines noted that some applicants had incomplete paperwork despite offered assistance. Chair Randall raised future budget constraints due to slowing commercial tax revenue. County Administrator Hemstreet confirmed the board could use fund balance or roll the gap into next year's budget.
• Vote: Motion to recommend approval by Supervisor Saines, seconded; passed 5-0.

Contract Renewal: Operation and Maintenance of Combined Transit System

• Proposal: Renew contract with Keolis Transit Services LLC for five years (July 1, 2026 – June 30, 2031) at $178.6 million, including provisions for potential transition to in-sourced services.
• Discussion: Chair Randall abstained, indicating she plans to propose a shorter (4+1 year) contract at the full board meeting, but lacked cost numbers. She praised recent performance improvements by Keolis. Supervisor Laterno supported the motion, noting the renewal allows flexibility for on-demand service and that the contract can be terminated early for convenience. Staff stated Keolis is willing to hold pricing for a four-year base plus one-year option.
• Vote: Motion passed 4-0-1 (Chair Randall abstaining).

Project Labor Agreement (PLA) Pilot Updates

• Proposal: Staff recommended proceeding with PLAs for two projects: Adult Detention Center (ADC) Phase 3 ($38M) and the combined Route 15 widening ($86M). PLAs would be required in bid documents; contractors must negotiate with the Baltimore-DC Metro Building Trades Council within 60 days of award. Previous attempt on a different project ended in litigation and was abandoned.
• Discussion: Chair Randall expressed support for PLAs, especially on vertical projects, and offered a friendly amendment for semi-annual updates (accepted). She noted a prior bridge project using a PLA came in under budget and on time. Supervisor Umstead opposed, citing concerns about increased costs (12-20% studies), reduced competition from non-union contractors, and potential delays, especially for Route 15 which has already faced delays. Supervisor Saines, the motion maker, noted that staff believes the Route 15 project is now on schedule and PLAs do not delay bidding, though post-award negotiations could extend project initiation. Supervisor Briskman also expressed mild concern about Route 15 delays but voted yes.
• Vote: Motion to direct staff to proceed with PLA pilots for ADC Phase 3 and Route 15, amended for regular updates, passed 4-1.

Key Outcomes

• Consent Agenda Approved: 5-0 vote.
• Human Services Grant Recommendations Approved: 5-0 vote; recommended to full board.
• Transit Contract Renewed: 4-0-1 vote (Chair Randall abstaining); recommended to full board.
• PLA Pilot Approved: 4-1 vote to proceed with two projects; staff to provide semi-annual updates.
• No further action taken on information items; presentations received and discussed.
• Meeting was called to order at 10:45 AM and adjourned; timing of adjournment not specified.