taxes

Morning Notes

By ARLnow.com

Hot Item for the Holidays: E-ZPass — With tolling set to begin on what are now the I-66 HOT lanes, stores in Arlington and elsewhere in Northern Virginia are having trouble keeping E-ZPass transponders in stock, particularly the E-ZPass Flex devices that will allow carpoolers to continue to use I-66 for free. [WJLA]

W&OD Trail Changes Discussed — Officials are considering options for separating cyclists from those on foot on the W&OD Trail. “I love the potential separation,” Arlington County Board member John Vihstadt is quoted as saying. “I think that will be well-received by both sets of users.” [InsideNova]

Dad Speaks Out After W-L Grad Son ODs — “As an admiral I helped run the most powerful military on Earth, but I couldn’t save my son from the scourge of opioid addiction,” writes retired Adm. James Winnefeld, in an Atlantic article entitled “No Family Is Safe From This Epidemic.” Jonathan Winnefeld, a Washington-Lee High School grad, died in Denver this past September “after a long and honorable battle with addiction.” [The Atlantic, Legacy, Denver Post]

More on Accessory Dwelling Vote — A GGW writer argues that while the Arlington County Board is to be commended for allowing the creation of basement apartments that can be rented out, it punted on the issue of backyard cottages at its Tuesday meeting. The Board’s action on so-called Accessory Dwelling Units included instructing the County Manager to study setbacks from the property line for detached accessory structures before any are approved under new rules.  [Greater Greater Washington]

New Incentive for Sustainable Buildings — “Arlington County will pioneer Virginia’s first Commercial-Property Assessed Clean Energy (C-PACE) program–a public-private partnership to provide affordable, long-term financing for projects to improve the energy or water efficiency of commercial buildings in the county.” [Arlington County]

DCA Tweets at Teigen — Model and social media personality Chrissy Teigen told followers yesterday that she left “a very large mom bra” under her seat on a flight that arrived at a D.C. area airport. Reagan National Airport’s official Twitter account responded by recommending that Teigen stop by the Spanx store in the airport for a replacement. [Twitter]

‘Age in Place’ Tax Deferral Questioned — Mortgage and title companies are reportedly not big fans of Arlington’s Real Estate Tax Relief Program, which allows older residents who meet certain income requirements to defer property tax payments until the home is sold. The system has sometimes sprung large tax bills on unsuspecting heirs, real estate agents and mortgage settlement officers. [Falls Church News-Press]

Flickr pool photo by Michael Coffman

Board Allocates Closeout Funds to Affordable Housing, Other Items

By Chris Teale
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The Arlington County Board voted to allocate the just-over $11 million in surplus funds to five “near-term” needs, but clashed over its use for affordable housing.

Board members voted 4-1 to follow County Manager Mark Schwartz’s recommendations and allocate the funds in the following ways:

  • Affordable Housing Investment Fund: $5.2 million in one-time funding to be set aside for the FY 2019 budget.
  • Critical Life Safety Needs: $2 million for unanticipated security system upgrades to the county’s Justice Center in Courthouse.
  • Employee Compensation: $1.75 million to reflect changes in federal law on several position classes in public safety.
  • County Manager Operating Contingent: $1.25 million to address “unforeseen needs that arise during the fiscal year without reprioritizing or cutting other programs.”
  • Facility Studies: $900,000 to primarily fund additional site analysis at the Buck and Carlin Springs sites, as directed by the Board.

Board member John Vihstadt voted against the proposal, and instead tried to free up the funds for three items — the Affordable Housing Investment Fund (AHIF), the manager’s operating contingent and facility studies — for next year’s budget cycle. Vihstadt said those three recommendations were not emergency needs.

“These may well be necessary and appropriate, but this is not reason enough for me to short-circuit the extensive and robust budget process the manager has already begun just because the money is here now,” Vihstadt said. “It doesn’t mean that every penny should be spent. Let’s hold this up to the air and the light and the sun and consider everything holistically as part of the budget cycle that comes in the next few months.”

But Vihstadt’s plan failed on a 4-1 vote, while a similar plan by Board member Libby Garvey to not allocate the $5.2 million in AHIF funding and instead give Schwartz room to make a decision on where it could go went down 3-2.

Fellow Board members were critical of the proposals. Vice Chair Katie Cristol said it is imperative for the facility studies to advance, while Board chair Jay Fisette said denying money for affordable housing was “undermining a key priority to the community.”

“In my view, Mr. Vihstadt’s alternative proposal undermines the current Board priority on affordable housing,” Fisette said.

At the same meeting, the Board provided its budget guidance to Schwartz for FY 2019, and asked him to propose a “balanced budget within the existing tax rate.” The guidance also calls on Schwartz to “include expenditure or service enhancements that are fully offset by reallocations or fee revenue increases.”

The Board approved a 1.5-cent property tax hike for FY 2018 earlier this year, and expects to see moderate revenue growth for FY 2019.

“However, there is uncertainty regarding the impact of the state and federal budgets, as well as potential legislative changes to federal income tax policy, on the County, and real estate assessments are not yet known,” the Board wrote. “Further, the projected moderate increase in revenues is not keeping pace with budget pressures in expenditures, creating an expected budget gap of $10-13 million for FY 2019.”

Board members called on Schwartz to maintain affordable housing funding, and allocate 46.6 percent of county revenue to Arlington Public Schools, consistent with previous years.

They also said Schwartz should include funding for Metro that does not exceed the proposed 3 percent cap on annual increases in funding, and assumes that a new state or regional funding source will cover higher capital costs.

The budget process, which is already underway for FY 2019, will kick into high gear in the new year.

Morning Notes

By ARLnow.com

Beyer Blasts GOP Tax Bill — Says Rep. Don Beyer (D-Va.) regarding the tax bill that passed the House yesterday: “I am adamantly opposed to the House Republican tax bill, H.R.1. The bill will raise taxes on millions of middle class Americans in order to fund tax cuts for the wealthy, and yet still manages to explode the deficit.” [Rep. Don Beyer]

Crystal City Scores 320 Jobs — A Georgetown-based nonprofit is moving much of its staff to a new office in Crystal City, leasing 90,000 square feet and adding 320 jobs in Arlington County. The move was announced by Virginia Gov. Terry McAuliffe, who approved a $500,000 state grant to assist Arlington with the project. [Virginia Business, Bisnow]

Dems Seek Ways to Defeat Vihstadt — “John Vihstadt, who in 2014 broke the Democratic stranglehold on the Arlington County Board, is ready to go back to the voters in 2018. And Arlington Democrats already are strategizing on how to oust him from office.” [InsideNova]

Charges Dropped Against ‘Laughing Librarian’ — Arlington librarian and Code Pink activist Desirée Fairooz, who was arrested after laughing during the confirmation hearing of Attorney General Jeff Sessions, has had the case against her dropped by the Justice Department. [American Libraries, NPR]

Incident at Kenmore Middle School — A tipster tells ARLnow.com that a Kenmore Middle School student was arrested yesterday afternoon for assaulting a PE teacher. An Arlington Public Schools spokesman, however, did not confirm that an arrest was made, saying: “There was an incident earlier today between a student and a teacher. Staff is following normal disciplinary procedures. But beyond that, we can’t disclose anymore because it is a student matter.”

Flickr pool photo by Michael Coffman

County Could Face $10-13 Million Funding Gap in Next Year’s Budget

By Chris Teale

Arlington County could face a funding shortfall of up to $13 million in its Fiscal Year 2019 budget, according to budget projections by County Manager Mark Schwartz.

At the Arlington County Board’s meeting yesterday (Tuesday), Schwartz projected revenue will grow by 2.9 percent in FY 2019, but the county’s expenditures will grow by 4 percent. That would result in a funding gap of between $10 million and $13 million.

The funding gap assumes the current real estate tax rate of $1.006 per $100 of assessed value will remain the same. County staff is also projecting “modest growth” in assessed property values.

The projections are only for county government, and do not include revenues and expenditures for Arlington Public Schools. The forecast largely keeps the county’s operations and services budget the same, with the exception of expansions in transit service as laid out in the Board-adopted Transit Development Plan.

“This is a preliminary projection — it’s still early in the budget-building process,” Schwartz said in a statement. “We have additional information that will come in the next few months — including actuarial reports for our pension and retiree healthcare, state budget proposals as well as Metro’s updated financial forecast.”

Through November 22, residents can share feedback online about the FY 2019 budget, in addition to the series of public roundtables that end this week.

The county is also seeking feedback on Schwartz’s plan to spend the $11.1 million surplus from this past year’s budget between five “near-term needs,” including affordable housing, facilities studies, public safety employee compensation, a fund for “unforeseen needs” and a security system upgrade at the county’s Justice Center.

Residents can email [email protected] with comments on the plan. Those comments will then be compiled and shared with the County Board before its November meeting, where members will vote on close-out spending.

Manager Recommends Surplus Go to Affordable Housing, Other ‘Near-Term Needs’

By Chris Teale

Arlington County Manager Mark Schwartz is recommending the county’s just-over $11 million surplus be spent on several “near-term needs & County Board policy priorities,” including affordable housing.

County staff said $11.1 million is left over, 1.4 percent of the county’s FY 2017 General Fund budget, excluding money appropriated to Arlington Public Schools.

The county collected just over $1.022 billion in revenue from property, business, sales taxes and other sources, having projected in April it would collect just over $1.004 billion. That is 1.8 percent more than projected.

“It is the lowest as a percent of total budget in recent years; in FY 2016, available funds totaled $17.8 million, or 2.4 percent, and in FY 2015 available funds totaled $21.8 million,” staff wrote. “This reflects diligent focus on executing the adopted FY 2017 budget.”

Schwartz is recommending the Arlington County Board use the leftover funds in the following ways:

  • Affordable Housing Investment Fund: $5.2 million in one-time funding to be set aside for the FY 2019 budget.
  • Critical Life Safety Needs: $2 million for unanticipated security system upgrades to the county’s Justice Center in Courthouse.
  • Employee Compensation: $1.75 million to reflect changes in federal law on several position classes in public safety.
  • County Manager Operating Contingent: $1.25 million to address “unforeseen needs that arise during the fiscal year without reprioritizing or cutting other programs.”
  • Facility Studies: $900,000 to primarily fund additional site analysis at the Buck and Carlin Springs sites, as directed by the Board.

“As was started with housing grants as part of the FY 2018 budget, it is important to move to a higher level of ongoing funding for AHIF in the future,” staff wrote. “This transition to a higher amount could take several years, and the transition can be eased with reliance on available one-time funding.”

Certain community members and some County Board candidates have criticized the closeout practice in Arlington, and instead suggested the extra money should be given back to residents and businesses as tax relief, or at least applied to the next year’s budget.

The County Board will consider its options at its recessed meeting tomorrow (October 24), although numbers are preliminary until the county’s independent auditors complete their work at the end of the month.

Groups Seek Budget Influence As More Funding Goes to Schools, Metro

By Chris Teale

Funding for schools, Metro and public safety officials weigh heavily as Arlington County’s initial budget conversations continue.

In an infographic released yesterday (Tuesday) ahead of more public roundtables to discuss the FY 2019 budget, county staff highlighted how the county spends its money and the challenges ahead.

According to the data, the biggest expense in the county’s operating budget is Arlington Public Schools, which is allocated $490.2 million by the county, or 39 percent of its budget. Human services and public safety are second and third, around $140 million each, or 11 percent.

Among the challenges ahead, staff said APS enrollment has grown by 850 students a year for the last five years, and it takes up almost all of the $510 million raised from real estate taxes on homes, condos and apartments.

And with Metro needing more money and an office vacancy rate of 17.8 percent, which keeps commercial real estate revenue down, county leaders are expecting some tight fiscal times and hard budgetary decisions.

A number of groups will be looking to influence county leaders’ thinking during the budget discussion. Among them is IAFF Local 2800, the Arlington Professional Firefighters and Paramedics Association.

In a tweet Tuesday, the group said firefighters, paramedics and police officers need a market adjustment to their salaries — a pay rise to keep up with inflation and the rising cost of living — to “remain competitive.” The last adjustment was in 2013.

According to figures provided to ARLnow.com by IAFF Local 2800, starting pay for county firefighters is 20 percent below the regional average and only $2 more per hour than the county’s minimum wage.

Since the last “market adjustment,” the group said, inflation in the region is up almost 5 percent, the cost of family HMO health insurance for county employees has increased over 45 percent, and the cost for HMO coverage for retirees and their spouses has increased over 55 percent.

Local 2800 added that new firefighters will earn 12 percent less per hour over a 20-year career compared to their peers in Fairfax, Prince William, Prince George’s and Montgomery Counties, the City of Alexandria and D.C.

“Arlington invests a tremendous amount of money in hiring, training and developing its firefighters,” said Brian Lynch, President of Local 2800. “Every time a firefighter leaves the department for another opportunity or does not complete their probationary period, we consider this a loss of an investment in human capital. If the department’s physical capital, vehicles, tools etc. were being lost the way we are losing our people, it would be considered common sense to try to stop the losses. There is not only a moral imperative to fairly compensate those who risk their lives to protect the community, there is also a fiscal imperative.”

Reminder: Deadlines Approaching for Property Tax Payments

By Chris Teale

Two major property tax deadlines are next week.

Thursday, October 5 is the final due date for the payment of both vehicle personal property tax and the second installment of real estate tax. Payments postmarked after October 5 are subject to penalties and interest charges.

Residents can manage and pay their bills online on the county’s Customer Assessment and Payment Portal.

And the deadline for displaying the new car decals is Wednesday, November 15. This year’s decal is entitled “Arlington Sees Stars,” designed by Amy Kohan in the county’s 13th Annual Decal Design Competition.

The county treasurer’s web site has more information about paying tax bills and about the county’s Taxpayer Assistance Program. Residents can also contact the Treasurer’s Office directly by calling 703-228-4000 or emailing [email protected].

Arlington Tourism Broke Records Last Year for Spending, Jobs Supported

By Chris Teale

Tourists spent more than $3 billion in Arlington County last year, supported more than 25,000 jobs and produced over $200 million in local and state tax revenues, all record highs.

According to figures released by the U.S. Travel Association, tourism in the county generated $3.12 billion in 2016, up 2 percent from the previous year. Arlington continued to lead all Virginia counties in visitor spending, as it has since 2009.

“Tourism continues to be an incredibly vibrant sector in Arlington’s economy,” Arlington County Board chair Jay Fisette said in a statement. “Through jobs, spending at Arlington businesses and tax revenues that support local schools and services, tourism will always be a key to our economic growth.”

The 2016 tourism data is based on spending by visitors from inside the United States, from trips taken 50 miles or more away from home.

“These excellent results are a testament to the strength of our hospitality community and its longstanding collaboration with the County in marketing Arlington to potential visitors,” Arlington Chamber of Commerce president and CEO Kate Bates said in a statement. “We are proud of the exceptional work of our hotels, whose dedication to top quality service continues to attract more visitors to our area.”

Victor Hoskins, director of Arlington Economic Development, said support from the County Board and Chamber for increased investment in tourism promotion has been crucial.

“It has dramatically expanded our ability to showcase Arlington and its businesses to meeting planners, consumers, tour operators and journalists – domestically and around the globe,” Hoskins said in a statement.

Flickr pool photo by Starbuck77

Morning Notes

By ARLnow.com

It’s September — As if to emphasize that today is the start of September and the first day of meteorological autumn, mother nature has dialed up a crisp start to the morning and a cool day overall in the D.C. area. [Twitter, NOAA]

Arlington Seeing Airbnb Tax Revenue — The recently-implemented enforcement of the transient occupancy tax on Airbnb-style rentals in Arlington County is producing revenue: nearly $18,000 through July. County tax enforcers think taxes on Airbnb and other short-term rentals may eventually bring in $250,000-$1.5 million per year. [InsideNova]

HS Football Kicks Off — The high school football season has kicked off for Arlington’s high schools. Wakefield defeated Washington-Lee 37-27 last night at the Generals’ home turf. The game was attended by a number of Arlington Public Schools officials, including Superintendent Dr. Patrick Murphy. Also Thursday night, Yorktown defeated D.C.’s Wilson High School 20-14. Arlington-based private high school Bishop O’Connell lost its season opener. [Twitter, Twitter, InsideNova, InsideNova]

Flickr pool photo by John Sonderman

Morning Notes

By ARLnow.com

Commonwealth Joe Gets $2.5 Million — Local nitro cold brew coffee purveyor and Pentagon City cafe operator Commonwealth Joe has landed a $2.5 million round of funding. The Arlington-based firm says it plans to use the investment to expand its cold brew business, which includes distributing kegs of the sweet, smooth chilled coffee to offices. [Washington Business Journal]

Local Holocaust Survivor Reunited — An Arlington man was reunited with a Dutch couple that hid him and his sister, who are both Jewish, from the Nazis in 1945. The reunion took place at the U.S. Holocaust Museum and happened thanks to a high school project undertaken by the couple’s grandson. [NBC Washington]

Raise for Arlington County Board Members? — There is renewed discussion of a significant raise for Arlington County Board members, in recognition that their job, rather than being part time as originally envisioned, now involves full-time hours. There are even “whispers” that Board salaries could be nearly doubled, to reach six-figures, according to one report. [InsideNova, InsideNova]

Tax Delinquency Rate Hits Historic Low — Arlington County’s 2017 tax delinquency rate has hit a record low of 0.226 percent, County Treasurer Carla de la Pava announced. That’s the lowest rate in Virginia and the lowest rate ever in Arlington, she said, touting it as “good for the county” and “good for taxpayers.” The news led Del. Patrick Hope to declare de la Pava the “best treasurer in the Commonwealth.” [Twitter, Twitter]

Remembering the Ballston Mall’s Past — First known as Parkington, then Ballston Common Mall, and soon (next year) to be reopened as Ballston Quarter, following extensive renovations, Ballston’s shopping mall has a long history that dates back to the early 1950s. [WETA]

Nearby: Legislation on Confederate Monument — State Sen. Adam Ebbin says he will introduce legislation “to give Alexandria the authority to relocate the Confederate statue in Old Town” Alexandria. “It is past time that we address the impact that lionizing the Confederacy has had on the character of our Commonwealth,” Ebbin said. [Twitter, Twitter]

Metro GM Promises Less Dramatic Hikes in Agency Funding Needs

By Chris Teale
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Arlington County will not be asked to pay for more from its local coffers to cover dramatic funding hikes for Metro, the agency’s general manager promised Tuesday night.

Metro General Manager Paul Wiedefeld said he hoped to cap any requests for increased contributions from the various jurisdictions that make up the transit authority at 3 percent per year.

More money for Metro was a factor in the Arlington County Board’s decision to hike property taxes by 1.5 cents, meaning residents can expect to pay an extra $277 on average. Arlington will contribute $70.7 million for FY 2018, compared to $56.6 million in FY 2017.

And while Wiedefeld’s pledge does not rule out Arlington’s contribution rising, it would be a lower increase than the 23.85 percent hike taxpayers funded for Metro’s fiscal 2018 budget.

Wiedefeld, during his presentation to the County Board, said smart fiscal management would avoid asking jurisdictions for more money, as would a new dedicated revenue source. The Metropolitan Washington Council of Governments adopted a resolution earlier this month calling for a dedicated funding source, but it would need buy-in from Maryland and Virginia’s state assemblies as well as D.C.’s government.

County Board Chair Jay Fisette said the FY 2018 contribution was a “big number for a locality like Arlington,” and said he welcomed a cap on funding.

Board Vice Chair Katie Cristol said she was “delighted to see [the promised funding cap] having just gone through a pretty difficult budget process and like many other jurisdictions are struggling with the idea of trying to do that again.”

Wiedefeld also promised that local riders of the Blue and Yellow lines would see more frequent trains as Metro looks to adjust its rail service, starting June 25. He said that the plan is for the Blue Line to arrive on platforms every eight minutes during rush hour, instead of every 12 minutes, as is current practice to accommodate the Silver Line.

Board member John Vihstadt pointed out that riders of the Blue and Yellow Lines in Arlington might have “a little different perspective” on Metro’s reliability from those who use the Orange and Silver Lines in the county.

Wiedefeld said that Metro would look to further increase frequency and emphasize reliability as it ends its SafeTrack program and moves into its new Back2Good initiative.

“I think we have to roll this out in June, let’s start to rebuild the base around that, deliver that and be much more consistent in that service, and then as we start to get better and better we can look at ways we can expand that,” Wiedefeld said. “But we have to start with looking at the realities of where we are.”

On ARLnow’s 26 Square Miles podcast last week, County Board and Metro board member Christian Dorsey said that while Metro still has work to do to increase reliability, delays have decreased as SafeTrack has wrapped up.

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