County Board

EnviroCab Founder a Surprise Candidate for County Board

By Ethan Rothstein

Arlington County Board candidate Cord ThomasEnviroCab co-founder Cord Thomas announced he was running for the vacant seat on the Arlington County Board at last night’s Arlington County Democratic Committee, declaring a platform of job growth and fiscal responsibility.

Thomas is a newcomer to Arlington politics, having not held a public position before, but after he and his uncle, Hans Hess, sold EnviroCab six months ago, he decided he wanted to do more for the community.

“I don’t have a lot of experience in Arlington politics, but I have a lot of experience in growing Arlington,” Thomas told ARLnow.com. “I know what it’s like to spend money that’s your own. Everyone likes to spend other people’s money, but when it’s their own, they look at it more seriously.”

Thomas, a Nauck resident, is also a co-owner of Ballston-based Elevation Burger, which has grown to more than 40 locations worldwide.

Thomas was a surprise inclusion in the group of Democratic candidates vying for the seat made available by Board Member Chris Zimmerman’s impending resignation. Joining Thomas in the race will be Highland Park-Overlee Knolls Civic Association President Alan Howze and former Planning Commissioner Peter Fallon.

Howze’s and Fallon’s candidacies were widely known among local Democrats, to the point where many officials endorsed one or the other at the Democratic committee meeting.

“I was disappointed after I made my speech that so many elected officials had already made an endorsement,” Thomas said. “It seemed rather closed off, almost. I didn’t realize this was happening.”

Thomas, 31, said he plans to represent county constituents he feels are not represented at all on the County Board: small businesses and the county’s largest demographic, 25-34 year olds.

“I have an understanding of what it’s like to buy a home in Arlington these days,” Thomas said; he bought a home in Nauck six months ago. “A lot of small business owners support me in doing this. They really want a voice, and I think that’s important.”

Thomas doesn’t have a stated position on the Columbia Pike streetcar or the Long Bridge Park Aquatics Center, but said that fiscal responsibility must be a priority in deciding on all issues. Thomas said he swims at the Wakefield High School pool, but questioned the size of the investment the county was making with the aquatics center.

“With the streetcar, I’m really waiting for the county to have real numbers,” he said. “I want to see companies come and give us real projections. Until that comes out, I don’t think it would be responsible to make a decision on it. When the information comes out, if it supports economic development like we all think it will, then fantastic. But we need to be responsible here.”

Thomas is concerned with many of the ways the current County Board has allocated its dollars, emphasizing his business experience to show that he could correct the Board’s policies and be, as he put it, “good stewards of taxpayer dollars.”

“In business, every dollar counts,” he said. “However you spend it, you need to make sure you get the bang for your buck out of it. I don’t believe that’s really looked at in the board. In fact, I know that’s not really looked at. I don’t think anybody wants to cut any programs, and neither do I, but we have to learn how to increase our revenue through growth. In order to spend money you have to bring money in.”

Photo courtesy Cord Thomas

Peter’s Take: Budget Guidance Fails

By Peter Rousselot

Peter’s Take is a weekly opinion column. The views and opinions expressed in this column are those of the author and do not necessarily reflect the views of ARLnow.com.

Peter RousselotThe Arlington County Board’s budget guidance for FY 2015 fails to provide appropriate guidance on important issues. The guidance was adopted after a flawed process. The guidance reflects a status quo mindset in an era crying out for a new direction.

Process

The County Board needs a completely different, more open and more transparent process for adopting its annual budget guidance. Here is an example of a better process:

  • publish a draft set of guidelines 60 days prior to the target date for final adoption;
  • invite all citizens and citizens advisory groups and committees, like the Fiscal Affairs Advisory Commission, to comment in writing within 30 days of publication of the draft guidelines;
  • post all such public comments on the County website;
  • hold a public hearing on the draft guidelines and all written comments, then
  • adopt final guidelines.

Substance

In significant part because of the flawed process the County Board followed, this year’s budget guidelines fail to provide appropriate guidance on important issues.

Here are some examples of important issues that are not adequately addressed, or not addressed at all, in this year’s guidelines:

  • the seriousness and long-term nature of Arlington’s escalating office vacancy rate;
  • the impact on Arlington’s residential tax payers of the long-term stagnation in the valuation of Arlington’s commercial tax base;
  • the long-term declining share of Arlington’s operating budget dedicated to Arlington Public Schools even before enrollment increases are taken into account;
  • the need to devote a higher share of Arlington’s operating budget to APS (even higher than historic levels) to account for surging enrollment;
  • the need to introduce rigorous, unbiased cost/benefit tests to evaluate major capital projects like the Aquatics Center;
  • the impact on the operating budget, and Arlington’s AAA/AAA credit rating, of the rising debt payments needed to finance the escalating cost of Arlington’s capital projects;
  • the failure to impose adequate cost controls or caps on Arlington’s long-term commitment to affordable housing;
  • the adverse impact of all of the foregoing trends on Arlington’s ability to fund basic social safety net services, and
  • why all of the foregoing trends lead to the conclusion that Arlington needs to re-focus its budget to ensure that core government services are given priority for funding.

Conclusion

The County Board is treading water at a time when it needs to swim vigorously and resolutely in a better direction.

Peter Rousselot is a former member of the Central Committee of the Democratic Party of Virginia and former chair of the Arlington County Democratic Committee.

Morning Notes

By ARLnow.com

Aerial view of Rosslyn (Flickr pool photo by @ddimick)

Three Vying for County Board Nod — Three candidates for the upcoming Arlington County Board special election kicked off their campaigns at last night’s Arlington County Democratic Committee meeting. Among them are Alan Howze, president of the Highland Park-Overlee Knolls Civic Association; Peter Fallon, former Planning Commission member; and Cord Thomas, who helped found Envirocab and Elevation Burger. All three will compete in a two-day Democratic caucus, to be held Jan. 30 and Feb. 1. [Sun Gazette, Washington Post]

Remembering the Ballston Skulls — Up until the 1940s, the Ballston Skulls, a semi-pro football team, played at Ballston Stadium, on the site of what’s now Ballston Common Mall. The Washington Redskins also conducted work outs from the facility. [Ghosts of DC]

Attorney General Recount to Start Dec. 16 — The recount process in the election of the Virginia Attorney General will take place from Dec. 16-19. Currently, Democrat Mark Herring has a 165 vote lead over Republican Mark Obenshain. [WJLA]

Flickr pool photo by @ddimick

Board Closes Out FY 2013 with Budget Surplus

By Katie Pyzyk

County Board discusses FY 2013 closeout funds on 11/19/13Along with discussing recommendations for the Fiscal Year (FY) 2015 budget, the County Board closed out the FY 2013 budget at its meeting on Tuesday. As it turns out, the county was left with a $25 million budget surplus.

The surplus is due, in part, to savings by both the county and the school system, in addition to higher than anticipated tax revenues. Many of the funds will be re-appropriated to FY 2014.

County Manager Barbara Donnellan gave a presentation to the Board outlining the carried-over funds and recommendations for re-appropriation, noting that several of the funds have dedicated revenue sources which restrict their use.

“With all of the economic uncertainty, the federal government shutdown, sequestration and BRAC, Arlington continues to be fiscally responsible,” said Donnellan. “I am recommending that we add to certain pots to ensure that we are prepared for an uncertain economic environment.”

She added that the county anticipates keeping its triple-A rating.

Carried-over funds were allocated to reserves, previous commitments, and priority projects. Some of the one-time allocations are detailed below:

  • Additional $5 million to the economic stabilization fund in light of federal sequestration and BRAC impacts.
  • One-time $3.3 million employee compensation contingency, in case employee step/market pay adjustment is not included in the FY 2015 Budget. Another $1.5 million to fund ongoing comparative pay studies.
  • Affordable housing initiatives for FY 2015, including $2.9 million to Affordable Housing Investment Fund and $1.5 million to housing grants.
  • Additional funding of $1.7 million for Artisphere, for both FY2014 and FY2015.
  • Other FY 2015 set-asides, including a $3.0 million unallocated contingent to provide flexibility for the Board and funding various one-time projects primarily in the technology, planning and safety areas.

Donnellan specifically addressed the issue of what to do with Artisphere, which came in over budget for FY 2013. Donnellan had handed down a warning about Artisphere in February but seemed more optimistic on Tuesday.

“This is a facility that came online just as the economic environment was turning. For the arts to be successful, it needs participation from attendees, donors and local or state support. Very few arts facilities like Artisphere can exist without some form of government support,” Donnellan said. “I want the Artisphere to be successful, and I think many others in our community want it to be successful as well.

Donnellan recapped her previous decision to shift half of Artisphere’s funding from ongoing to one-time. She then made a recommendation for the future, highlighting the arts center’s recent increased attendance, better programming and increased revenue from rentals.

“I’m recommending that we use some of the closeout funding to shore up this facility for this fiscal year and next. I told the Board that FY 2014 would be a transition year for Artisphere,” she said. “We’re beginning to see real signs of progress toward our goal of creating an arts and cultural center that will draw thousands of people from our county and across the region into Rosslyn, generating economic and cultural benefits for our entire community.”

Last fall, Donnellan imposed a hiring slowdown to provide expense savings in light of the budget gap faced in FY 2014. The county credits the hiring slowdown with helping departments achieve a higher amount of savings than in previous fiscal years. The slowdown is expected to continue indefinitely in order to achieve savings in FY 2014.

According to the county staff report, three departments did not achieve expenditure savings in FY 2013:

  • County Attorney’s Office (-$485,626): The over expenditure was primarily the result of increased legal costs and expenses including consultants, expert witnesses, filing fees, court reporters, copying costs and outside legal counsel related to law suits and other transactions the County was involved in during FY 2013.
  • Office of the Treasurer (-$146,731): The over expenditure was due to increased printing expenses and full staffing, which did not enable the Office to achieve a budgeted expense that assumed savings from vacant positions.
  • Economic Development (-$83,647): The over-expenditure resulted from personnel costs exceeding budgeted amounts, including temporary help for Artisphere

After Donnellan’s presentation, the Board voted unanimously to approve the recommended re-appropriation of funds carried over from FY 2013.

The Right Note: The More You Know

By Mark Kelly

The Right Note is a weekly opinion column published on Thursdays. The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

Mark KellyOn Tuesday, the County Board approved the FY 2013 closeout and re-appropriation measure.

According to the report accompanying the County Board’s agenda, tax revenue once again came in well ahead of predictions, by $27.9 million. The largest contributor to the surplus was real estate revenues, to the tune of $15.3 million. In percentage terms, real estate tax revenues ran 2.6% ahead of budgeted amounts.

In April, the County Board passed a 3.6 percent real estate tax increase. To justify it, the County Manager and the County Board cited a FY 2014 budget “shortfall.”

As it turns out for the 2013 fiscal year, and virtually every fiscal year in recent memory, the county underestimated the revenues that would be generated by the tax rate. Even if you agree with all of the spending priorities passed by the County Board in its annual budget, the surplus suggests your real estate taxes alone could have been 2 percent lower. And just as in previous years, the $27.9 million underestimation of all revenues was enough to actually lower your real estate tax rate even further.

The board also spends millions each year reclaimed from budget savings — adopting the federal government approach of “use it or lose it.” For FY 2013, the budget over-estimated the costs of government activities for the year by $25.3 million, but the money was still spent on other items. Among those items was $1.7 million in additional subsidies to the Artisphere, which was supposed to become self-sufficient by now.

In so doing, the board can say that they spent all that was budgeted in the prior fiscal year. This keeps the baseline of spending on an upward trajectory in order to help create another budget “shortfall” for FY 2015. You can find more information for next year’s budget in this report. County Manager Barbara Donnellan preliminarily estimates the “shortfall” will be $7.7 million. However, if you used this year’s actual surplus of excess revenues plus savings for comparison, that “shortfall” could actually become a $45.5 million surplus.

Granted, the county manager’s report also notes the schools could have up to $16 million in additional costs caused by higher enrollment. However, based on the consistent underestimation of revenue and over-estimation of costs, we can safely assume the FY 2015 revenues will more than cover school needs. And, it will still leave us with room to spare without necessitating another tax increase.

The board did give its budget guidance on Tuesday as well, and did not recommend a tax rate increase for next year. At the same time, your tax bill will still rise with your assessment by an average of $300 per homeowner. And, the Board regularly ignores its initial guidance.

Chairman Tejada’s comments that tax increases were still on the table in the budget process means the chances anyone on the board will propose the real estate rate cut the county could afford are somewhere south of slim-to-none. But, it is important to understand these numbers if the board comes to you in the spring and asks for another tax rate increase.

Mark Kelly is a former Arlington GOP Chairman and two-time Republican candidate for Arlington County Board.

County Board to Consider Allowing ‘Jumbotrons’

By Ethan Rothstein

The WJLA building in RosslynThe Arlington County Board will consider next month whether to allow large media screens, like the WJLA ticker in Rosslyn, in other parts of the county.

The board voted unanimously to advertise for a public hearing before the Planning Commission Dec. 2 and the full board Dec. 14. The proposal would allow large media screens — colloquially known as “jumbotrons” — to be approved through the use permit or site plan process on buildings in mixed-use neighborhoods and in some parks.

Deborah Albert, an Arlington County planner, said the proposed ordinance, if passed, would prevent the screens to be used for commercial purposes.

“Staff has envisioned the screens could be used show public information, news, or in emergencies,” Albert told ARLnow.com. “The intent is really to enable the opportunities to consider another such sign, but not necessarily to encourage them to proliferate, so we’ve crafted careful standards to allow them in certain places but not to allow and over-proliferation.”

County staff recommends that the “jumbotrons” be limited to heights below 40 feet, screen sizes of less than 750 square feet and to take into consideration surrounding residences. They would only be allowed, through special exception, within a quarter mile of transit stations and in so-called public service districts, like Long Bridge Park.

Board Member Mary Hynes suggested the screens could be used much like they are at stadiums at ballfields: next to the scoreboard, showing a simultaneous broadcast of the game for the benefit of spectators in a crowd.

The WJLA screen is the only large media screen in the county, and all other screens are currently prohibited by county sign regulations. Albert said the conversation over “jumbotrons” arose during community meetings when the county updated the sign regulations last year.

Board to Manager: Assume No Tax Rate Hike

By Katie Pyzyk

County Board discusses FY 2015 budget on 11/19/13Budget cuts could be coming next year as county officials try to figure out a way to balance the county’s budget without raising taxes.

At its meeting on Tuesday, the Arlington County Board gave direction to County Manager Barbara Donnellan for developing the proposed Fiscal Year (FY) 2015 budget. The Board recommended the County Manager close a projected $20 to $25 million budget gap while maintaining the current tax rates.

Although this is the sixth consecutive year the county expects a gap between revenues and expenditures, Board members note the gap for FY 2015 is not as severe as in recent years. It’s smaller partially due to higher tax revenue projections — mostly from an increase in residential property assessments — but a significant gap still exists.

“It’s not something to ignore,” said Board member Chris Zimmerman. “There may be tough choices that have to be made.”

An average increase of 5.5 percent for residential real estate assessments is expected to boost the overall real estate tax base 2.6 percent. Commercial assessments are expected to remain flat or decline slightly. Real estate taxes are the county’s largest source of revenue.

Board members recommended Donnellan does not increase the tax rate, which currently stands at $1.006 per $100 of assessed value.

“I for one, could not give guidance to the manager today to raise the tax rate, knowing that we project an increase in real estate on homeowners and not on commercial,” say Board member Jay Fisette. “With all of the issues out there that we will have to grapple with, now is not the time to do that, in my view.”

The Board requested continued funding for services that protect residents’ health and safety, investments in affordable housing and environmental sustainability, and adequate support for public schools. That includes funding for an expected increase in school enrollment. Board members spent much time discussing the need to maintain school funding.

Costs are expected to increase for items such as county employee compensation, funding for Metro and debt financing for major capital projects. New costs are expected for projects such as the new homeless shelter, the Long Bridge Park aquatics center and investments in the ConnectArlington fiber network.

The Board members repeatedly pointed out that this is simply an initial recommendation and more input is necessary before Donnellan presents the proposed budget in February.

“This is the very beginning of the budget process,” said County Board Chairman Walter Tejada. “There’s a whole lot more information and data that we will be getting over the next few months.”

Board members acknowledged the potential to discuss additional cuts should the economic climate worsen. Measures could mimic Donnellan’s previous cost cutting measures, such as the county hiring slowdown that began in 2012.

“Our guidance to the Manager begins a months-long conversation with our community that will involve tough decisions,” Tejada said in a subsequent statement. “With the increase in residential property assessments costing many homeowners close to $300 more per year, we have directed the County Manager to assume no tax rate increase; however, we recognize that this is a time of continued financial uncertainty. If the economic environment changes, we expect the Manager to give us options that may include further budget cuts and/or revenue increases.”

The Board approved the guidance by a 4-1 vote, with Libby Garvey offering the opposing vote.

2013 ABBIE Winners Announced

By Katie Pyzyk

ABBIES logoThe people have spoken and today the 2013 winners of the annual Arlington’s Best Business Awards (ABBIEs) were announced.

Arlington Economic Development organizes the contest and residents vote for their favorite businesses in each category. The winners were announced at this afternoon’s County Board meeting. This year’s winners are:

County Board Chairman Walter Tejada offered the reminder that the best way to support these and other Arlington businesses is to shop locally, especially during Arlington Small Business Day on Saturday, November 30.

County Braces for $24 Million Budget Gap

By ARLnow.com

Arlington FY 2015 budget projectionsArlington’s projected budget gap for Fiscal Year 2015 is between $20 and $25 million, the county manager’s financial forecast shows.

County revenues are expected to increase 2.6 percent to $1.093 billion, thanks largely to higher residential real estate assessments. Residential real estate tax revenue is expected to increase 5.6 percent, while commercial real estate revenue is expected to stay the same or slightly decrease, due to weakness in the office market.

Expenses, meanwhile, are expected to increase, thanks to pay raises for some of the county’s 3,344 full-time employees, a rise in the county’s payment to Metro, and costs associated with new facilities like the year-round homeless shelter and the Long Bridge Park aquatics center.

Total county expenses are projected at $675.6 million, and that assumes cutting the county’s Affordable Housing Investment Fund and pay-as-you-go project financing in half, due to the removal of one-time funds. The county government will face a $7.7 million revenue/expenditure gap.

Arlington Public Schools, meanwhile, will see its budget transfer from the county rise 3 percent to $425 million. Still, the school system is expected to face a $16 million budget gap due to a rise in enrollment.

County staff caution that the figures are still preliminary at this point. FY 2015 doesn’t begin until July 1, 2014.

“Current projections rely on incomplete revenue data and preliminary cost estimates,” staff wrote. “Projections will change as more data becomes available and further analysis is completed. Cost estimates could increase and revenue projections could decrease, exacerbating the problem, or estimates could also improve.”

County Manager Barbara Donnellan will present her budget projections to the County Board at its meeting tonight (Tuesday). The Board, in turn, will provide budget guidance to the manager and her staff.

FLES Group Calls for Add’l School Funding

By ARLnow.com

FLES participation (courtesy FLES For All)A vocal group of parents who have been advocating for foreign language education in all Arlington elementary schools once again took their case to the County Board over the weekend.

The Sun Gazette reports that “several dozen” supporters of the Foreign Language in Elementary School (FLES) program showed up for the public comment period of Saturday’s Board meeting. They asked the Board to find a way to work with Arlington Public Schools and the School Board to expand FLES to the 9 schools that currently don’t have the program.

Meanwhile, a group called FLES For All released an open letter to county and school leaders over the weekend. The group, which claims 25-30 active members “who work weekly to educate and advocate on this issue,” blasted “educational inequity” in Arlington and called on the County Board to provide a greater share of tax revenue.

The full letter, after the jump.

Image via FLES For All

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County Board Approves Pentagon City Mall Expansion

By Ethan Rothstein

Image via Arlington County

The Arlington County Board unanimously approved the Fashion Centre at Pentagon City’s request to expand and offer outdoor restaurant seating at its meeting on Saturday.

The mall, owned by Simon Property Group, will add 51,000 square feet along S. Hayes Street — two stories with space for 5-7 retail tenants whose entrances would be on the street.

The expansion will be built on the east façade of the mall, adjacent to the entrance to the Pentagon City Metro Station. As part of the construction, the mall is expected to make pedestrian and bicycle safety improvements along S. Hayes Street, Army Navy Drive and 15th Street.

“This expansion plan for one of the region’s most popular malls fits perfectly with the County’s goal of making Pentagon City a more lively, walkable area,” County Board Chairman Walter Tejada said in a press release. “Bringing new shops and restaurants to S. Hayes Street will be good for the mall and good for the neighborhood.”

Image via Arlington County

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