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TextSeizing the Crisis
Seizing the Crisis
Board Retreat, June 29 & 30, 2009
When President Obama's Chief of Staff used the phrase, "You never want a serious crisis to go to waste", I thought the quote was original. In fact, the sentiment was used 500 years ago by Machiavelli, maybe earlier if you dig back far enough in history. Whenever it was first used, it has been good advice in difficult times throughout history, and remains relevant today.
Fairfax County is moving forward despite the severe economic turmoil taking place across nation and we will continue to identify and adopt more effective and smarter ways to maintain and enrich the quality of life that defines us.
During a
two day retreat last week at Frying Pan Farm Park in Herndon, our Board
took time to review and affirm priorities and to discuss in depth some of
the challenges and issues we identified during our recent budget
process. I think the discussion was excellent and a lot of
important ground was covered.
BOARD MEMBERS' ISSUES
At the beginning of the retreat, each member of the Board was given fifteen minutes to highlight issues and concerns in their respective districts. A more thorough summary of this discussion can be viewed on the County's website by going to: http://www.fairfaxcounty.gov/government/board/retreat/.
I began the session by stating that my number one priority is getting Fairfax County back on its fiscal feet and this priority was confirmed by every member of our Board. As we continue to be challenged by the most serious economic breakdown in our lifetimes, it is more important than ever for our Board to work together effectively, and to engage the community in the process for resolving our challenges.
There was agreement that, despite the turmoil taking place in this nation, we must continue to identify and adopt effective and smarter ways to maintain and enrich the quality of life that defines us. By engaging our residents and businesses in the process of addressing these challenging times, protecting investment in our most critical priorities, and by maintaining strong responsible fiscal management, we will ensure that we continue to have:
- a quality educational system,
- safe streets and neighborhoods,
- a clean, sustainable environment,
- recreational & cultural opportunities,
- livable, caring and affordable communities,
- with a vibrant economy, and
- efficient transportation network.
ACTION ITEMS - MOVING AHEAD
The board agreed to move ahead on several fronts, with further discussion planned for upcoming board committee meetings:
THE CHALLENGE OF FY 2011
The Board received a financial forecast for Fiscal Year 2011 with a projected shortfall of $316 million. Economic indicators suggest that the financial challenges we are facing will continue into the next fiscal year. The number of jobs in Northern Virginia declined by 19,600 between April 2008 and April 2009. Fairfax County's unemployment rate was 4.5% in April; during the last two downturns, unemployment never exceeded 4.0%.
The FY 2011 projected deficit of $315.6 million is based on a projected loss of revenue of $232.5 million. This assumes no funding for salary adjustments/inflation. The county budget is heavily reliant on real estate taxes and a ten percent decline in residential real estate values is projected for FY 2011. Nonresidential property values are projected to decline 18 percent in FY 2011. New vehicle registrations in Fairfax during the first 5 months of the year have fallen 10 percent from the same period of 2008. Sales tax receipts have worsened significantly over the past three months. Actions by the Commonwealth have reduced county revenue by $15.1 million over the past two years.
Various strategies for addressing the fiscal challenge of FY 2011 were discussed, including reorganizational opportunities, diversification of revenue, staffing, evaluating management structures within county agencies, carefully tracking stimulus applications and funding and reviewing fuel and utility requirements.
The effective community engagement process conducted last year will continue this fall as the community again will be invited to work with elected officials and county staff to address the continuing revenue shortfall. Budget Community Dialogue forums are expected to begin this September for the public and employees to participate in this process. The Board's Budget Committee will begin meeting early in order to give provide focus and direction as the County Executive prepares his Advertised Budget for FY 2011.
BOARD PROCEDURAL ISSUES
During the afternoon of our first day, the Board considered a number of procedural issues:
There was consensus to consider holding Board meetings on a day other than Monday; Tuesday was suggested as an alternative meeting day. Mondays are often federal holidays so weeks can go by without meetings and sometimes meetings are held on back-to-back weeks. Consensus by the Board was to review this proposed change by August, when staff will give the Board a projected calendar incorporating this change. A final decision will be made later in the year when we adopt the calendar for the next year, beginning in January.
We also discussed the traditional (and sometimes confusing) protocols for the amount of time that individuals and spokespersons for groups can address the Board at public hearings. Agreement was reached to adopt a policy for "three minute per individual/three minutes for a group representative". The Board will need to take action at a board meeting to approve this change in procedures.
Board Members discussed content and timing of "substantive" Board Matters. It was agreed that more sensitivity is needed in allowing review of Board items before action is requested, and an informal practice will begin so that when possible policy changes or significant items are brought to the dais via board matter, Board members can request that the item be referred to staff and deferred for action to the next meeting to allow time for public notification or deferred to a time later in the day.
AFFORDABLE HOUSING
During budget deliberations, it became clear that board members had different opinions regarding affordable housing strategies and on how to achieve goals in affordable housing. For that reason, an entire morning on the second day of the retreat was devoted to this subject.
The general policy about affordable housing is contained in the county's comprehensive plan:
"Opportunities should be available to all who live or work in Fairfax County to purchase or rent safe, decent, affordable housing within their means. Affordable housing should be located as close as possible to employment opportunities without adversely affecting quality of life standards. It should be a vital element in high density and mixed-use development projects, should be encouraged in revitalization areas and encouraged through more flexible zoning wherever possible."
No disagreement was expressed regarding this policy.
Last year the Board adopted the preventing/ending homelessness initiatives as one of the tools available to address the need for housing and no one expressed disagreement with this initiative.
Recognizing that opportunities should be available to all who live or work in Fairfax County to purchase or rent safe, decent, affordable housing within their means, the board agreed to work toward the development of alternative strategies to address current affordable housing needs. There was recognition that the criteria for use of the "Penny Fund", which was created to stem the loss of affordable apartment units to high end condominium conversions, should be amended to address the current challenges we are experiencing due to foreclosures and job loss.
Agreement seemed to galvanize around a new tiered approach that may include a direct rental subsidy to assist persons with low to extremely low income, partnering with nonprofits and targeting resources toward housing projects already in the pipeline.
Discussion also centered on the continued need for affordable housing for our growing senior population and persons with disabilities.
Additionally, land use policy should be directed toward workforce housing and "next generation" housing in order to add to the stock of affordable housing in the County. The three legs of the stool of affordable housing assistance are nonprofits, private sector providers and public.
More discussion and refinement of this strategy will take place at a future Housing Committee meeting.
LAND USE PLANNING
Acknowledging that the current area plan review (APR) process no longer serves the county well, the Board agreed to consider other models which can provide better urban design, public outreach and technical analysis.
Regular "state of the plan" reviews were discussed as an alternative to APRs that would facilitate big picture planning and ensure a review of various policies so they still all work together. The varying level of detail during APRs has not met the needs of some communities. In some cases, revitalization opportunities are so large and plan language is so antiquated, a new process is needed.
Future planning work beyond 2011 will include an assessment of future growth and development, looking at the employment/economic development potential, future housing supply and location, service and industrial uses and public facilities review.
TRANSPORTATION ISSUES
The very last item on the agenda for our retreat has resulted in the most media attention.
County staff began the session by laying out the fiscal challenges we are facing due to declining state funding. To keep most major planned transportation capital construction projects moving on schedule, the County has obtained or provided funding from many other sources including County bonds. In 2004 Fairfax County received $28 million for capital improvements of secondary roads. For the current fiscal year, we are receiving only $240,000 - not even enough for one new traffic signal.
Other issues include increasing frustrations regarding the inflexibility of state design standards and the regulation of traffic and parking operations within a highly congested and urbanized region, a growing demand for small-scale projects, increased complexity in funding and regulatory requirements, reductions in state transportation workforce levels and the larger role the county has taken in funding and implementation by default.
To meet these needs, the county's Department of Transportation is transitioning to a full-service transportation agency over an estimated 2-5 year time period. The County is also developing a road map for future transit service through a Transit Development Plan, a 10-year plan for improving Fairfax Connector and Metro bus service countrywide.
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Before the retreat ended, County Executive Tony Griffin put an intriguing and unexpected proposal on the table. He suggested that maybe it's time to consider taking over the roadway system in Fairfax County. Mr. Griffin ventured that Fairfax County is already doing everything a city does "except for the roads" and suggested it might be time to explore the issue.
He stated that in 1990 the Board had commissioned a study to explore the feasibility of taking over responsibility for "the construction, control, maintenance, and repair of its secondary, or secondary and primary road systems from VDOT." Several years later, a Blue Ribbon Commission looked into the possibility of Fairfax either becoming a City or negotiating a charter that would give us more authority over transportation. No action ever resulted from these studies. The Board rejected takeover options due to cost implications, an economic recession at that time and concerns about further assumption of financial responsibilities from the state.
The county executive pointed out that the state was devolving this issue to localities financially and legislatively over time, and he worries that the County will eventually be responsible but without sufficient funds to do so.
He posed the question, "should we negotiate with the state for funding and facilities to take over the secondary roadway system in the County?" Two approaches could be taken:
- to consider becoming a city with the additional responsibilities and authorities that city status entails or
- to consider taking over all or portions of the roadway system responsibilities within the current county government model used in Arlington and Henrico counties.
The state would continue to focus on primary roads and interstates.
Using the current formula, the County Executive suggested it appears we would do better financially by becoming a city. The Board agreed to engage in a review and further discussion of this issue in the Board's Transportation Committee and Legislative Committee.
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