County staff outline FY2026–2030 CIP, propose adding health lab and splitting childcare bonds

Christina Jackson, Fairfax County chief financial officer, and Martha Reed, capital programs division director, presented an overview of the county’s FY2026–2030 capital improvement program (CIP) and bond plan at the March 25 Budget Committee meeting.

The lede: staff emphasized affordability in a higher interest‑rate environment, recommended a handful of changes to the 2026 bond plan (including a new health department laboratory and staged childcare funding), and highlighted use of sinking fund balances and Economic Development Authority financing to manage large projects.

The nut graf: the county’s broader CIP totals more than $15 billion over multiple programs; the focus of the committee discussion was on the general‑fund supported capital program and upcoming bond referenda and how to balance program needs with debt affordability.

Staff said the FY2026 general‑fund supported capital program totals about $31.7 million in the advertised budget and that the county’s overall CIP includes both county‑managed and non‑county managed programs (for example NOVA Parks and Fairfax Water) and self‑supported programs (stormwater, wastewater, solid waste). A joint CIP committee recommendation raised the county’s annual bond sale limit from $300 million to $400 million; the January 2025 general obligation bond sale used the new $400 million ceiling.

Staff said the county now sets aside 30% of year‑end balances to a Capital Sinking Fund (up from 20% previously). Since the sinking fund began in 2014 the county has set aside more than $200 million for reinvestment; the board‑approved formula currently allocates sinking fund dollars roughly 45% to Facilities Management Division (FMD), 25% to schools and the remainder across other categories, staff said.

On the bond referendum plan, staff proposed adding a health department laboratory to the 2026 bond question at $35 million, citing the current lab’s constrained space and the use of a modular lab installed during the pandemic. Staff also recommended splitting the previously proposed $50 million early‑childhood bond into two $25 million questions (one in 2026, one in 2032) and said library leadership agreed to prioritize two library projects for 2026—Kings Park and Herndon Fortnightly—while deferring the Centreville Regional Library to the 2032 bond to better match costs to available funding.

Staff flagged one near‑term decision: the Judicial Annex Building 1 project, which has a total estimated cost exceeding $200 million. The staff presentation said about $18 million of previously approved general‑obligation bond authority (originally for a police evidence storage facility) could be used, but approximately $185 million would need to be financed by Economic Development Authority (EDA) bonds; if that schedule proceeds, debt service would increase in FY2027 by nearly $17 million. Staff characterized this as a sizable fiscal impact and said the board will need to consider timing and financing options as the project advances.

On debt and market conditions, staff noted the county achieved a 3.57% interest rate on the January 2025 GEO bond sale; by contrast a prior sale had achieved roughly 1.23%, and staff said the higher rates materially increase debt service costs. Joe LaHate of the budget office summarized bond sale composition: the January 2025 sale totaled $400 million with $230 million for schools and $170 million for county projects (noting $44 million of the county portion is attributable to WMATA obligations).

Staff said the county will continue using GEO bonds along with EDA financing for some projects and will monitor affordability using established debt‑capacity ratios. Planning Commission markup is scheduled for April 2; public hearings on the CIP will occur in late April with board markup in May and final adoption as part of the budget process in May.

Supervisors raised a series of follow‑ups during committee discussion: questions about how sinking‑fund percentages were set (Martha Reed said the original allocations were based on maintenance backlog at program start and that the Planning Commission has asked staff to review those percentages), how co‑location and co‑financing opportunities can be expanded, and whether there is room in the bond plan to include additional ped/bike or other transportation projects not directly tied to Metro. On Metro financing, staff said the county has held a placeholder $200 million figure for its projected contribution while regional DMV‑Moves work proceeds to narrow capital and operating needs.

Ending: staff framed the recommendations as subject to further board review and public hearings; no formal board vote occurred at the March 25 committee meeting and final CIP and bond decisions will be made during the FY2026 budget markup process.