County leaders sell, seek input on transportation plan
By Greg Pearson STAFF WRITER

Page Dowdy/Chesterfield Observer

Convinced that the state government is walking away from its road building responsibilities, Chesterfield leaders began a series of community meetings last week to explain how the county is going to finance road building without state funding. Though other options are also under consideration, the current county plan dedicates part of real estate taxes and business licensing fees plus proffers from developers to raise $300 million for road building over the next 10 years.

Chesterfield is considering dedicating one penny of the real estate property tax rate ($2.9 million) from the upcoming budget. That amount would increase to five cents over the next five years, allowing the county to borrow $140-$160 million for roads. Though it is not a property tax rate hike, property owners would otherwise pay lower property taxes. A nickel lower on the tax rate for a $250,000 house would save the average homeowner $125 annually.

The county board appears ready to pledge one penny for roads this spring, but it still expects to reduce the property tax rate by at least five cents to 99 cents per $100 of assessed value. County Administrator Lane Ramsey says that is possible because of rising property values, which the county acknowledges means property owners will pay more again this year.

Though business organizations have fought to lower the Business Professional and Occupational License (BPOL) tax over recent years, Chesterfield projects businesses could finance $80-$90 million of road building debt over the next 10 years. Currently, 15,867 businesses - 77 percent of those who pay BPOL - are paying just $10 annually because they have gross annual sales less than $200,000. The county has capped the amount of taxes collected by BPOL at $15.6 million annually.

Larger businesses would pay more because of higher gross receipts. And smaller businesses would pay more if their sales exceeded the $200,000 ceiling.

"We have the lowest BPOL tax in the region," noted Ramsey, but that could change if BPOL becomes a financing mechanism. Both the Chesterfield County Chamber of Commerce and the Chesterfield Business Council (CBC) have previously sought further reductions. Bermuda Supervisor Dickie King has called BPOL "an unfair tax."

The third favored option is the existing proffer system where residential developers pay a maximum of $15,600 per residence to offset the cost of building roads and providing county services. Though Ramsey's staff assessed the actual cost of services for new homes - roads, schools, police, fire, parks and libraries - to be $22,600 last summer, the county board is on record opposing a proffer increase. Proffers are anticipated to generate about $65 million for roads over 10 years.

Commercial development would generate additional road money - usually in the form of widening nearby roads, adding turn lanes or paying for traffic lights. According to county Transportation Director John McCracken, 40 percent of the road improvements in the Route 360 corridor west of Route 288 were paid for with proffers.

During a community meeting held by the county last week to discuss transportation issues, Ree Hart, a possible supervisor candidate this year for the Bermuda District, wanted to know what the county board is doing to persuade members of the Chesterfield legislative delegation to "continue their traditional role" as road builders. Board members have had some testy moments with some conservative legislators - members of their own party since all supervisors are Republicans - over the issue.

"I'm trying to stay away from political issues," responded Board Chairman Kelly Miller, who represents the Dale District. In the past, Miller has been outspoken publicly, claiming the state isn't living up to its responsibility to build roads.

"We're being held hostage, [but we're]... hoping to get some help," said Miller during the community meeting.

In a written statement, Executive VP David Reel of the Home Building Association of Richmond, wrote, "We recognize the state's continuing failure to meet its historical obligations with respect to transportation...It is critical that we all continue to keep the pressure on state government to live up to its responsibilities."

Several citizens at the meeting proposed a letter-writing campaign to the Chesterfield delegation, but no county leader publicly endorsed such an effort.

CBC Chairman Bill Girvin acknowledged his group, an extension of the Richmond Metro Chamber of Commerce, was encouraging citizens to contact their statewide officials but not telling them what their message should be.

"Doing nothing like last year is not acceptable," he said. In 2006, the General Assembly reached a stalemate over road funding.

Other funding options

With the potential for 4,886 new homes in Magnolia Green over the next 15-20 years, supervisors have sketched out a possible transportation district just for the huge development, which is located off Route 360 five miles west of Route 288. New homebuyers could pay a property tax rate 15 cents higher than the rest of the county with $15 million targeted specifically for roads.

The county board has eyed Magnolia Green because it was rezoned 16 years ago, proffering $2,800 per home. The size of the development and its rural location presents unique problems for providing roads, schools and other county services.

Chesterfield is trying to solve part of the road problem by encouraging road building companies to consider extending the Powhite Parkway another nine miles as a toll road from where it currently ends at Charter Colony Parkway to Route 360 near Grange Hall Elementary School.

Asked if Chesterfield was putting together a request for proposal for a toll road, McCracken said, "No." Either the county or the Virginia Department of Transportation (VDOT) could solicit a bid.

Asked if the county's transportation department was calling road builders to get them interested in a toll road, McCracken smiled and replied, "No comment."

Another option is using a Community Development Authority with higher real estate taxes for a specific area, like the board has approved for the Watkins Centre. There, road improvements are being funded by a higher property tax rate of 15 cents plus sales taxes.

A seventh option outlined last week was to propose another bond referendum. In 2004, 87 percent of the voters approved a $40 million referendum for roads.

State vs. county

In 2004, Chesterfield projected $1 billion in needed road improvements and road building, according to McCracken. The county received only $80 million - half of that came from its bond referendum.

This year, state funding for construction is estimated to be about $450 million throughout Virginia, but only some $10 million is earmarked for Chesterfield. That would pay to build a two-lane road just a little more than one mile (see accompanying chart on road construction costs).

Though a compromise is at work at the state level, Chesterfield fears the county will see very little funding because of road needs in northern Virginia and Hampton Roads. "Basically, in the next six years we are going to see no revenue to build roads," predicted McCracken.

During this budget year, VDOT is transferring more than $400 million to cover the statewide shortfall in the budget for road maintenance. In terms of priorities, VDOT puts maintenance ahead of new construction.

Chesterfield is anticipating that the state government will transfer the road maintenance function to county government, and McCracken says road maintenance is way behind schedule. He compared it to buying a used car that needs a lot of repair work.

Several state legislators have pointed the finger at Chesterfield, saying it contributes more subdivision roads annually than any other county in the state. While Chesterfield doesn't dispute that, McCracken called that defense "a red herring," saying all new subdivision roads cost VDOT just $5 million a year to maintain, including snow removal.

The county will hold its final community meeting on transportation at Midlothian Middle School on Feb. 12 at 7 p.m. The public is invited to attend.

Road construction costs (in millions of dollars per mile)

	1992	2006
Reconstruct a 2-lane road	$2	$8
Widen from 2 to 4 lanes	$4	$10
Widen from 4 to 6 lanes	$6	$13

Since 1986, the gas tax, which provides much of the funding for transportation, has remained at 17.5 cents per gallon.