The finance committee on July 8 recommended that the Board of Supervisors adopt a phased increase to Loudoun County’s annual debt issuance guideline beginning in fiscal year 2027 and approved small fiscal policy changes to streamline CIP budget administration.

Staff explained the proposed schedule: increase the guideline in FY27 and then by smaller, regular increments in later biennium years so the county can keep pace with inflation and rising project costs without suddenly stressing debt ratios. Under the recommended scenario staff showed, the county would add approximately $1,300,000,000 of issuance capacity across the FY27–FY32 CIP period while retaining compliance with board debt‑ratio targets (net debt as a percentage of market value, per‑capita measures and debt service as a share of governmental expenditures). The recommended plan peaked the debt‑service‑to‑expenditures ratio below the county’s 10% policy limit.

Staff argued a measured increase to the annual issuance guideline would reduce the need to rely solely on local tax funding for capital projects, allow the county to preserve capital‑asset maintenance programs and respond to higher market costs, and retain flexibility to fund unanticipated projects. Staff also recommended minor fiscal policy edits: record annual issuance guidelines in the budget/appropriation resolution instead of the fiscal policy text, and give staff authority to reallocate budget amounts from main parent CIP projects into individual subprojects for programmatic implementation (similar to existing contingency reallocation authority).

Committee members asked about the ratios and modeling assumptions; staff said the CIP modeling uses conservative assumptions for growth and interest rates. The motion to recommend the Board adopt the proposed increases and fiscal policy changes passed 5–0. Staff will include the guideline changes in the FY27 proposed CIP and present associated project prioritization options in the fall.