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 KellyIf you have ever attended a Saturday morning County Board meeting, you probably know it kicks off with a public comment session at 8:30 a.m. If you want to hear about the issues buzzing in the community, public comments are a great place to start.

What could be on the docket this week?

The county brought in a podium, loudspeaker, Congressman Moran, and three County Board members to have a ribbon cutting for a sidewalk in Pentagon City. This monumental event comes on the heels of losing the National Science Foundation to Alexandria and the Signature Theater bailout. Maybe this event falls into the “any port in a storm” category?

Speaking of the Signature Theater, Treasurer Frank O’Leary reports he received the delinquent tax payment bailout for the property. For those counting at home, this has no real impact on our bottom line other than an accounting maneuver to erase a debt, with exactly zero public hearing time on the subject. In essence though, each and every one of Arlington’s approximately 210,000 residents just contributed about $1.20 to the arts. The remaining question is, how does the theater plan to pay next year’s bill or is this just going to be an ongoing line item in our budget?

The urban agriculture report is in, and it attempts to strike a middle ground on backyard hens — saying larger yards could have them provided they meet certain conditions. Many people believe that regardless of the conditions, permitting any hens will cause an enforcement nightmare for the County. The ball is now in the Board’s court, or coop.

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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 KellyAccording to a 2009 announcement, the Artisphere was supposed to be open 12 hours a day, seven days a week, attract over 250,000 visitors a year, become profitable in three years, and spur additional economic development in Rosslyn.

Two years later, the Artisphere produced massive first-year operational cost overruns and revenue shortages that would require escalating taxpayer subsidies for the foreseeable future. County Manager Barbara Donnellan produced what she deemed “a much more realistic plan.”

The new plan has still failed to put the Artisphere on a trajectory towards self-sufficiency. The bottom line is that we have pumped millions of taxpayer dollars into it, and the Artisphere is still nowhere near fulfilling the promises the County Board made to us, not once but twice.

Last week, we learned that the County Board had voted unanimously to bail out the Signature Theater to the tune of $250,000. The bailout covers the theater’s delinquent taxes — taxes they chose not to pay in an effort to “control expenses”. This bailout led one newspaper to deem the theater “too fabulous to fail.”

How would this have gone over with Treasurer Frank O’Leary if the offender had been anyone but a county-backed project? Quite possibly, it would have been sold to pay the debt.

Instead, the County Board essentially made a simple spreadsheet maneuver. The taxes were magically marked as paid courtesy of the rest of us who pay our taxes every year while controlling other costs in our budget. The money is still in the general fund to be spent elsewhere this year, while the theater is simply off the hook.

If you reach back into your memory banks, you may remember the County Board’s approval of another theater project in January 2012. As part of site plan concessions, the County will receive a black box theater on Wilson Boulevard. The County will pay to fill in the developer-provided shell, but it will make out well on the lease, at $1 a year. This is a similar deal to the 15 years of free rent for the Artisphere. The new theater will likely not be saddled with the repayment of a huge construction loan, something Signature still owes to the tune of $7.8 million.

So, will the financial honeymoon end soon after operations begin as it did with the previous two projects? According to the press release announcing the new theater last January:

“County staff will work with the Arlington Commission for the Arts and others to develop a business plan and economic options for the operations of the theater. These will address a series of cost, use and operational alternatives for review by the County Manager in the preparation of future budgets.”

Hopefully these are not the same county staff who assisted with the Artisphere’s original business plan or its “new” and “more realistic” plan. Of course, if they can count on the County Board for ongoing subsidies and bailouts, creating a business plan is little more than an intellectual exercise anyway.

The bottom line is Arlingtonians deserve more accountability than we are getting from our taxpayer-funded arts endeavors.

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


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 the way down to Richmond for the GOP convention, I found myself in the stop and go (mostly stop) traffic caused by the hazmat incident that shut down I-95 south for four hours. After slowly making our way around some back roads, my wife and I arrived at the junction of highway 17 and I-95 just as the interstate was being re-opened.

While waiting for the traffic to move, I spotted a man walking in the middle of the highway with water bottles and realized it was none other than Terry McAuliffe. The Democrats’ presumptive nominee for governor was politicking with fellow stranded motorists — a smart political move. There is no question that McAuliffe has a larger than life personality, an asset he is sure to bring to the campaign trail this year.

Before the Republican convention was gaveled to a close the next day, Virginia Democrats were attacking the Republican ticket as “too extreme for Virginia.” If that sounds familiar, it is precisely the same rhetoric they used unsuccessfully four years ago.

My counterpart here at ARLnow, former chairman of the Arlington Democrats and current State Democratic Committee member Peter Rousselot, got the memo and joined in the attack. In fact, he has written multiple columns attacking Republican nominee Ken Cuccinelli. In last week’s column he even presumed to know what Arlington Republicans would think about the entire 2013 GOP ticket.

Rousselot’s most recent column did drop the specific criticism of health clinic regulations, presumably in light of the horrific Kermit Gosnell case in Pennsylvania. At the same time, Rousselot has written exactly zero columns supporting his party’s candidate. I do not recall that there has even been a single supportive sentence in his columns for McAuliffe.

This “attack first” strategy should not come as a surprise. McAuliffe failed to impress Democratic primary voters four years ago. He was called out as a forum shopping candidate with little to offer Virginia Democrats. He eventually lost the nomination contest convincingly to State Senator Creigh Deeds, who went on to lose to Governor McDonnell by more than 17 percentage points in November.

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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 KellyAs the fiscal year winds down here in Arlington, I wanted to touch on two lesser known facts about the budget process.

Fact Number One: When the County Board passed the tax rate increase last month, it applied retroactively to January 1st of this year, not to the next fiscal year which begins July 1st.

If you have a mortgage, that new obligation is settled between the County and the financial institution you make payments to each month. Chances are your escrow account has more than enough cushion to cover the difference. If you have paid off your property, you will be writing the bigger checks immediately to cover the costs. If you rent, your landlord has probably built this assumption into your rate increases as your leases are up for renewal.

Fact Number Two: The county underestimates revenue collections every year for the budget that is approved. For fiscal years 2010 to 2012, the average was $37 million – roughly 3.5 percent on average each year.

It is more than a bit disheartening that every year we bring in more revenue than is estimated, yet we are always hearing about budget “shortfalls” as the reason to increase taxes.

What does the County Board do with the excess revenue? They spend it on new projects outside of the regular budget process in what is known as the “close-out” process. The close-out process is in place primarily to allow the Board to re-allocate millions of dollars that have been budgeted for, but not spent, for a variety of reasons.

If the Board had applied all of the excess revenue in last year’s close-out to offsetting this year’s budget, we could have seen our tax burden held steady without cutting one penny from the services promised as part of this year’s adopted budget. The Board did carry forward $12.9 million from last year’s close-out process to apply to this year’s budget, so I guess we can be grateful that our taxes were not raised even more.

It is still a few months before the County Board will close the books on fiscal year 2013. The unfortunate reality is that the close-out process will once again result in additional spending projects rather than giving us a little tax relief.

The County Board should start by explaining why county staff consistently underestimates revenue year after year. The Board should commit to end the use of the close-out process to spend money on items that were not vetted as a part of the regular budget process, nor to raise total spending for the year over the adopted fiscal year budget.

In short, the Board should confine its close-out decisions to re-allocating already budgeted spending and treat the adopted budget each year as a ceiling, not a floor.

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


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 KellyThis is not news, but the Democratic party controls every elected office in Arlington.  While we witnessed a rare, and extremely close, intra-party endorsement contest for sitting School Board member James Lander last week, the accountability for what our elected officials do falls primarily on the press and the public at large.

However, a competitive electoral process with candidates from across the spectrum is healthy, and one we need to see more of here in Arlington.

Running for the County Board twice myself gave me the opportunity to talk to thousands of Arlingtonians from across the political spectrum. When I write about concerns with major spending projects, or the levels of taxation and debt, or the frustrations of business owners, it comes from listening to people. And, I can say for certain, even before I opened myself up to the comments section here, that Arlingtonians are not shy with their opinions.

Over time, many of the people I’ve spoken with have just accepted that our County Board will do what it wants, regardless of any public protestations. I remain eternally optimistic. I believe if we make it a priority to consistently hold our elected officials accountable they will either change their course of action, or the voters will eventually change it for them.

Look at what my counterpart from the left Peter Rousselot has had to say many times in his take. He has called upon his party to have even more competitive primaries. And, he agrees with me that the county’s spending priorities are currently out of whack.

Living in Arlington is certainly a choice for most of us. I appreciate my neighbors and enjoy my relatively easy commute into the District. My children attend our public schools and play in our recreational sports leagues. And, the church we attend is just a short drive away in Alexandria.

Even though our quality of life in Arlington is relatively high, the way to make it higher is not for our County Board to continually dream up new ways to spend our money. Instead, we should hang that big ‘Open for Business’ sign on the door. We should demand independent accountability with an Inspector General. We should put our county’s checkbook online in real time, and then ask if we are getting our money’s worth for our tax dollars.

You have to evaluate for yourself whether you believe a change in leadership would produce better results. Would new ideas and a fresh perspective be a welcome change? If so, you have the power to help make that happen. There is still time to file as a candidate for office this fall. You can actively support a Republican, Green or Independent candidate who does file. Or, you can become more vocal by speaking up in your civic association, at County Board public comment times, and at other public meetings. But please, if you agree that a little change would be a good thing, do something.

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


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 KellyThe United States continues to battle Japan for the dubious distinction of having the highest corporate tax rate in the world. It is not a place in the world rankings we should aspire to hold if we want to remain the global economic leader for generations to come. While our unemployment rate is inching down, too many Americans have simply given up looking for work. So, it is incumbent upon elected officials to create a pro-growth environment at every level of government.

This week Virginia gubernatorial candidate and Attorney General Ken Cuccinelli outlined his Economic Growth & Virginia Jobs Plan. It touches on a number of items, but I wanted to highlight three:

First, the plan calls for capping state government spending growth at no more than the rate of population plus inflation. This is a common sense measure that would give legislators in Richmond a reasonable budget to work with every two years. Hopefully, the idea would be given the force and effect of law rather than simply be stated as a goal.

Second, the plan would reduce the corporate income tax rate to 4 percent, which would make Virginia’s rate one of the most attractive in the country. Certainly, one of the ways, other than savings from a cap in spending growth, to accommodate the tax rate reduction is by heeding Cuccinelli’s call to curtail special interest tax breaks. Leveling the playing field for all businesses in Virginia makes sense.

Third, the plan would create a Small Business Tax Relief Commission. One of the goals of this commission is to reduce or eliminate the BPOL tax. As noted last week, BPOL is a tax on gross receipts, not income. This tax particularly hurts businesses with the slimmest profit margins.

Making jobs and the economy his first specific policy rollout sends a strong signal about the highest priority of the Cuccinelli campaign. For comparison, Terry McAuliffe’s website does feature an issue section with a page on jobs or the economy. His sole economic growth policy position is that we should invest in the creation of “green jobs”, which probably means taxpayer funded special interest incentives. McAuliffe has maintained this priority even after a string of negative reports on his GreenTech Automotive venture. Based on GreenTech, and failed companies like Solyndra, Virginians should be wary of any government attempts to pick winners and losers.

Competition for businesses, and the jobs they bring, will continue between states. We should expect our next governor to have a plan to make Virginia number one in private sector job creation.

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


The Right Note is a weekly opinion column by 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 KellyLast week, I closed with a reference to the change in parking regulations for food trucks. If you talk to people in the restaurant business, they might find disagreement with what I had to say. It is not that they do not appreciate the the ability of entrepreneurs to start up a business. Their issues are more with the challenges they face in an area with a high cost of doing business. And, they take issue with the way Arlington County treats our existing business by way of taxes, fees, permitting issues, etc. Food trucks, they would argue, have it relatively easy by comparison.

It’s hard to argue with this perspective.

Our County Board once infamously took several hours to debate permits for the placement of sidewalk cafe tables for just two local restaurants. You had to be there to really appreciate the ridiculousness of the length of discussion. In fact, if you talk to most long-standing business owners around Arlington, they can probably tell you at least one story dealing with the county that will make you shake your head in disbelief.

The county certainly has not been able to fill ground floor retail space in new developments that had been promised. Yet, they have famously put businesses like the Westover Market through the wringer.

The way to benefit our employers and improve the options for consumers is to ease the burdens on our existing brick and mortar businesses. Here are three goals to start:

  1. Arlington should increase the efficiency of its permitting process. To further this goal, it should clarify its zoning rules and ensure greater consistency in their application.
  2. We should cut the commercial property tax surcharge in half permanently, or at least until it might be required for the ill-advised trolley project. Currently, this property is taxed at a rate 12.5 percent higher than residential properties. By cutting it in half, money would still be available for targeted transportation upgrades. More dollars would be left in our local economy, and it would not be at the expense of general fund dollars that go to county services.
  3. County Board members should investigate reducing or eliminating the Business Professional Occupational License (BPOL) tax. The BPOL tax is based on gross receipts rather than a tax on profits. In essence, it’s an additional sales tax that our businesses must remit. And, it is an additional paperwork headache for our small businesses.

In short, Arlington should constantly look for ways to hang a big “Open for Business” sign on the door. Encouraging more businesses to open and thrive will benefit all of us with more jobs for people who need them, more choices for consumers, and ultimately more taxpayers to help shoulder the load.

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


The Right Note is a weekly opinion column by 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 Kelly

Every year since I moved to Arlington in 2000, the County Board has passed a budget that effectively raised our taxes, either through increased rates or in effect, by not offsetting appraisal increases with tax rate decreases. And, every year in recent memory, the county’s press staff sends out a statement claiming it’s not really that bad.

This year’s press release said the tax increase will only cost the average homeowner $23 more per month. Over the past five years, the increases cited in those press releases total $73.50 per month. So, it now costs the average homeowner $882 more per year to live in Arlington than it did in 2008. In case you were wondering, this is only a small bite compared to what the Board has done in the revenue raising department since 2000.

If you rent, you have not escaped this cost as your landlord has most certainly passed some or all of these taxes on to you.

My favorite argument heard from at least one board member is that we should be glad to pay more property taxes because our houses are worth more. Of course, unless you sell your house, you will not recognize the gain. We actually have to pay the taxes from our incomes. I don’t know about you, but my income has not doubled since I moved into my home while my property taxes have.

The tax increase passed unanimously on Saturday. Then on Tuesday, county staff disclosed that the federal government pegged the price tag of the Columbia Pike trolley project at $310 million — nearly 25 percent over what we were told. The federal estimate said the project could cost as much as $402 million. Of course, when the federal government is estimating, we can safely assume to bet on the high side.

This price tag does not come as a surprise to those following the issue closely. It demonstrates the need for increased and independent accountability in how the Board spends our money.

As I wrote recently, it is time to revisit the idea of opening an office for an independent inspector general. With the under-estimated trolley cost, Artisphere cost overruns, and the $1 million bus stop, the perception that Arlingtonians are not getting straight answers is growing. In response, the County Manager announced she was reorganizing the internal auditing functions instead of bringing in a true independent perspective. With a $1 billion plus budget and $1 billion plus in debt, it is time to do more than an internal staff shuffle.

There was some good news from the April County Board actions. The Board agreed to treat food trucks like any other motor vehicle and allow them to park for two hours in parking spaces. While many communities have moved to impose additional restrictions on food trucks, this common sense move in favor of promoting both increased dining choices for consumers and opportunities for small businesses was a good one.

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


The Right Note is a weekly opinion column by 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 KellyThe new Virginia transportation plan assumes it will receive revenue from online sales taxes captured under proposed legislation currently being considered by Congress. While the plan faces a number of hurdles in Washington, many are wondering how it would work?

Online sales have been largely exempt from taxes based on a Supreme Court case decision requiring a seller to have a physical presence in a state in order to be subject to collecting that state’s sales tax. Instead of trying to overturn this legal precedent, proponents of imposing online sales taxes have deftly moved to the other, largely unknown side, of the tax. It’s known as the use tax.

If you’ve never heard of it, you are not alone. By some estimates, 99 percent of use taxes are not paid. This makes it the type of ineffective government plan that is likely to be a prime candidate for repeal.

What is a use tax? In the simplest terms, residents of Virginia are legally required to pay a tax on any items you purchase that are not currently subject to a sales tax. So, whether you have been shopping tax free at Amazon.com or in Delaware, you technically owe Virginia sales tax on those items.

I found out about the use tax the hard way when my wife received an item as a gift that was shipped into Virginia from North Carolina. The revenue office acquired the shipping invoice and sent us a tax bill well over a year later. Rather than spending countless hours fighting the charge, we simply paid it, despite not having purchased the item ourselves.

Since then, I have always made a voluntary contribution to the use tax on my annual Virginia tax return. I also have been waiting for a statewide candidate who calls for repealing the use tax as part of their platform.

Now the use tax is proposed as the vehicle for a big revenue increase that will take more money out of our economy. Under the theory that we in Virginia, and in most states, currently owe this use tax anyway, the proponents of federal legislation view this mechanism as a way around the Supreme Court ruling requiring a physical presence in a state to collect sales taxes. To do so, the plan would require us to pay the use taxes for Virginia on online sales at the point of sale.

If the federal law enabling use tax collections passes, Richmond should drop the plans to spend it. Instead, we should move to immediately lower the sales and use tax rate in a manner that ensures there is no net increase in revenue. Our Virginia economy would benefit from this approach. It would help all Virginians, and particularly those with lower incomes who need to maximize their buying power.

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


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

Mark KellyAt last week’s Arlington County Democratic Committee meeting, party leaders stressed the importance of giving voters a positive reason to come out and support gubernatorial nominee Terry McAuliffe in November.

You might question the sincerity of that plea since the meeting took place immediately after a “dramatic reading” of excerpts from Attorney General Cuccinelli’s book. Based on Mr. McAuliffe’s ongoing resume problems, they may actually spend a lot of time talking about the Attorney General instead.

But, what about a little farther down the ticket? What does County Board Vice Chairman Jay Fisette offer to inspire Arlingtonians to vote in 2013?

Mr. Fisette stands firmly behind the Columbia Pike trolley boondoggle. And, he has offered no indication that he would support a straight up or down vote on the issue. Yes, a vote is possible if the Board adjusts the funding mix to include a small amount from general obligation bonds.

It follows that Mr. Fisette is squarely in favor of building the 24 super bus stops on Columbia Pike as well. Yet, the first one took so long, cost so much, and was subject to such intense public ridicule, that the project has now been stopped pending review.

ARLnow ran a story on Monday on the black hole of spending known as the Artisphere. Mr. Fisette recently admitted the arts center did not meet expectations. It should not have surprised him as the Board ignored those who predicted the Artisphere’s shortcomings at the time the Board approved the project.

The Board will raise taxes yet again this year and still may not be able to fully fund our police and fire departments. Remarkably enough, fiscal responsibility and public safety are the top two issues listed on Mr. Fisette’s campaign website.

Website issues list aside, Mr. Fisette has made a “crusade” against single use water bottles — his number one pet project for the year. He announced it at the Board’s kick-off meeting January 1st and has followed through by scheduling a public forum on the topic.

Any effort to legislate on water bottles at the County level will likely go the way of efforts to regulate single use plastic bags, single use styrofoam, or even energy use in private homes — another Fisette idea. The Virginia General Assembly is unlikely to lift the Dillon Rule for Arlington to regulate these items any time soon.

However, it might make you wonder if a water bottle “crusade” was what the local Democratic leaders had in mind to inspire voter turnout.

It might be time to schedule another dramatic reading.

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


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

Mark Kelly

Stockton, California is proceeding in bankruptcy. It is a cautionary tale of a local government who thought the goose would continue to lay golden eggs and allowed themselves to spend more than prudence dictated.

Stockton is about 50 percent larger in population than Arlington and it is the largest city to go bankrupt. Stockton’s debt at the time of filing for Chapter 9 protection was $500 million, approximately half of Arlington’s current debt load. Jefferson County, Alabama is already working through the largest municipal bankruptcy filing in history with approximately $4.2 billion in debt.

What Arlington has compared to other municipalities is the seat of the federal government as its next door neighbor. Arlington was therefore largely shielded from the effects felt in many places during the recession. While the County is not increasing spending at the rate of the last decade, our county officials have actually plowed full speed ahead on capital expenditures and show no desire to slow down.

The County spent $1 million on one dog park while harassing a business owner who wanted to beautify another one for free. The County spent millions on the Artisphere which has not lived up to any of the promises made when the Board agreed to fund the project. Voters approved a parks bond that funded an aquatics center which may cost taxpayers $79 million to construct. And, the boondoggle trolley project, which will almost certainly cost well over the current $250 million price tag, is coming to the Pike.

The current symbol of spending excess in Arlington is the $1 million bus stop on Columbia Pike — a precursor to the trolley project. The price tag is so outrageous that even CNN ran a story on it this week. The County Manager said they would “reassess” these “super stops” before moving forward, but the plan all along was for each of the 24 stops to cost over $850,000 on average.

The County Board should reassess the need for an independent office of Inspector General to audit all county expenditures. The Board has resisted the idea raised first by the Civic Federation consistently, but do we really believe the same county staff that oversaw the projects to begin with will produce an independent analysis? With a billion dollars and climbing in debt, it is time for the Board to embrace this measure of transparency and accountability.

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


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