2023 BOND REFERENDUM
What You Need to Know
This website provides information about a referendum that will be up for a vote on the November 7, 2023 general election in Gloucester County, Virginia.
Town Hall Meetings Scheduled
Two town hall-style meetings have been scheduled by Gloucester County Administration to provide citizens with information regarding the 2023 Bond Referendum that will be on ballots in the November General Election. Gloucester County Administrator Carol Steele announced that the first meeting will be held at Petsworth Elementary School on Tuesday, Sept. 26 beginning at 7 p.m. The second meeting will be held at Page Middle School on Wednesday, Oct. 4, also beginning at 7 p.m.
Steele will provide a PowerPoint presentation on the facts surrounding the referendum, which if adopted by voters, would fund a variety of capital needs for fire and rescue services, public schools, and public parks. Representatives from Gloucester and Abingdon Volunteer Fire and Rescue squads, the public school system, and Parks, Recreation and Tourism may also be on hand to provide more specific information on projects and answer questions that the public may have.
If adopted, the bond referendum would fund construction of a new Station #1 for Gloucester Volunteer Fire and Rescue Squad, Inc. on Main Street. It would also update Abingdon Volunteer Fire and Rescue’s Station #3 to better accommodate overnight crews.
Renovation of the 1993 Gloucester High School Sports Complex is also included in the referendum. Other school projects that would be supported include a renovation of the 1973 wing of Botetourt Elementary School and various HVAC replacements.
Finally, the bond project would renovate Gloucester Point Beach Park to address stormwater and flooding issues, beach erosion, sand infill on the boat landing, parking, restroom and pier improvements, and more. It would also provide infrastructure improvements at Woodville Park and add multiple pickleball courts and bathrooms at Brown Park.
The sale of bonds is a form of long-term borrowing that spreads the cost of major capital improvements over the life of a facility. A proposed 2-cent increase on the County’s Real Estate Tax rate would provide funding for the capital projects.
Two or more members of the Gloucester County Board of Supervisors may attend these town hall meetings.
Project Breakdown
Fire and Rescue
Gloucester Volunteer Fire and Rescue
The bond referendum will fund construction of a new Station One, on Main Street. The existing station, with a portion dating to 1946, will be replaced with a larger station and include a training center. The current facility has the following inadequacies:
The facility no longer meets NFPA standards for fire houses.
Lack of separation between the crew’s living quarters and equipment bay. Fumes from the exhaust escape into the living quarters.
No appropriate place to store, launder, and dry firefighting gear. Gear has to be hauled to the Harcum station, which takes the firefighter out of service for at least eight hours.
Size of fire and rescue vehicles has increased over the years, and bays don’t allow room to offload equipment for cleaning and maintenance.
The entrance to the bays is too small, and engines and ambulances backing in require traffic on Main Street to stop until the equipment can be backed in safely.
In addition to being a working firehouse, the new station, located a few blocks down from the current facility, will include:
6 drive-thru apparatus bays
Living space for up to 10 people
Administrative headquarters
An Emergency Operations Center/Conference Room
A Classroom/Training Center
The estimated cost for this project is $12,100,000. Construction is anticipated to take between 18 – 24 months and will begin in the spring of 2024 if the referendum is passed.
Abingdon Volunteer Fire and Rescue
The proposed list of projects includes updating Abingdon Volunteer Fire and Rescue Station 3 in order to better accommodate overnight crews. Because of growth in the County, additional staff are stationed on site overnight. The existing bunkroom has tight quarters and doesn’t provide for privacy. To accommodate the additional space for the bunkrooms and remodeled bathrooms:
A classroom and the weightlifting area will be moved
A wall will be extended to provide additional space
The estimated cost for this project is $1,100,000. Construction will take between six months and a year and will begin in the spring of 2024 if the referendum is passed.
Courtesy Gloucester-Mathews Gazette-Journal
Public Schools
Gloucester High School
Renovation of the 1993 Gloucester High School Sports Complex is also included in the referendum. Construction will begin in the spring of 2025 and work will be coordinated with the GHS project now underway.
Moving and resurfacing the tennis courts
Renovating the Field House
Updating field lighting
ADA compliance remediation
Improving the structures of the home and visitors' bleachers
Renovating both Concession Stands
Renovating and regrading the athletic fields
The estimated cost for this project is $9,460,000.
Botetourt Elementary School
This referendum calls for the renovation of the 1973 wing of Botetourt Elementary School.
Design will start in the spring of 2024 if the referendum passes. The estimated cost for this project is $4,445,000, and renovations would include:
Updated restroom facilities
Technology upgrades
Hallway and classroom improvements
HVAC
The final school project included in the referendum is to replace heating and air conditioning units (HVAC).
The new equipment is part of an overall project that will cost more than $4 million, with $2,369,000 of the expense covered by the bond.
Public Parks
Gloucester Point Beach
Gloucester Point Beach is the oldest County-owned Park and the only public beach in the County. The bond project will renovate the park to address stormwater and flooding issues, beach erosion, sand infill on the boat landing, parking, restroom and pier improvements, and more. Gloucester will be seeking grants for portions of the project to supplement the borrowing. Design and initial improvements would begin in the spring of 2024 and a second phase would start in the spring of 2028.
Woodville Park
As Gloucester’s largest park, infrastructure improvements will make the park safer and more enjoyable. Many residents are familiar with the Whitcomb Lodge at Beaverdam Park and know that it is often booked one year in advance. The Bond Referendum will provide for a similar facility at Woodville and will also add water and sewer utilities to the park for public bathrooms and concessions.
Construction on the infrastructure, which will be on-site wells and sewer lines directly to the park, would start in the spring of 2024. Construction of the bathrooms and concessions would occur in the spring of 2025 and construction of the multi-purpose building would start in 2026. The County could provide additional lighting for two ballfields in 2031. The estimated cost for this project is $4,587,000.
Brown Park
Brown Park was donated to the County in 2005, to provide recreational facilities for youth and seniors. Due to a lack of funding, only a small part of the 19 acres has been developed.
The park has a concrete skateboard area and the referendum funding will add multiple pickleball courts and bathrooms. The estimated cost for this project is $1,328,000. Development at Brown Park would begin in the spring of 2026.
About the Bond
The Gloucester County Board of Supervisors has called for a referendum on the issuance of bonds to fund a variety of capital needs for fire and rescue services, public schools, and public parks.
The sale of bonds is a form of long-term borrowing that spreads the cost of major capital improvements over the life of a facility. A proposed 2-cent increase on the County's Real Estate Tax rate would provide funding for the capital projects.
The proposed debt of $39,582,993, falls within the County’s debt policy thresholds. If approved, construction on the projects funded with the bonds would begin between 2024 and 2029, and all projects would be completed by 2032.
How Will It Be Worded?
Shall the County of Gloucester, Virginia contract a debt through general obligation capital improvement bonds in the maximum amount of $39,582,993 which would result in an estimated increase in the real estate tax rate of $0.02/$100 of assessed valuation, to provide funds to finance various capital improvement projects for (1) volunteer fire and rescue departments to include construction of a new fire department for Gloucester Volunteer Fire & Rescue and renovations to the bunk room at Abingdon Volunteer Fire & Rescue; (2) construction, improvement, and/or renovation of public school buildings and facilities to include renovations of Botetourt Elementary School, renovation of the Gloucester High School sports complex and associated site improvements, and school HVAC systems; and (3) parks and recreation to include Woodville Park water, sewer, lighting, bathrooms, construction of a community use building, and improvements at Gloucester Point Beach Park and Brown Park?
Impact of 2-cent Tax Increase for Bond Projects
The impact to the proposed 2-cent tax increase depends upon the value of your home/property. The average home in Gloucester is valued at $318,500, which means an increase of $5.31 per month. (Chart below depicts the approximate cost increase per month and figures are rounded).
FAQs
Question: What is the projected timeline for borrowing the money and starting the projects?
Answer: See the chart below. Borrowing will occur as needed, as determined by the Board of Supervisors.
Question: Is the County going to borrow the entire amount of money and hold it in reserve?
Answer: No, the County will only borrow the amount that it anticipates spending in a three-year period. The proposal has five different borrowing time periods. Once funds are borrowed, they will be in a trustee account for spending on the projects listed in the referendum.
Question: Can we accomplish the public safety (fire and rescue) projects without raising taxes?
Answer: Yes, the County can borrow enough money to pay for the public safety projects in fiscal year 2025 without a tax increase.
Question: Would it cost taxpayers less if these projects were funded in cash as funds became available?
Answer: Perhaps, as cash funding would avoid financing and indirect costs. However, on current revenues, it would take many years to save the funds needed to accomplish these projects. Project costs are expected to increase each year due to inflation.
Question: The County changed the use of the sales tax money once it was approved, how do we know this will not happen again?
Answer: Using general obligation bonds to cover the cost for school and county facilities is a long established and common practice. Legal requirements mandate that funds must be spent according to the referendum wording, and the Board of Supervisors included the specific projects in the referendum question.
Question: How long will we have to pay on this debt?
Answer: All but 2 of the projects have a 20 year debt term. The two fire department projects are planned for a 25 year debt term due to a longer lifespan of the proposed buildings.
Question: What if I can’t afford the additional real estate taxes?
Answer: There are a variety of County programs available to provide tax relief to certain citizens. For more information on these programs, contact the Commissioner of Revenue’s Office at 804-693-3451.
Question: Why are taxpayers having to make this decision?
Answer: The Board of Supervisors voted to have the public determine whether to borrow funds and incur a debt that could potentially result in a tax increase.
Question: Will we still have capital needs if the referendum is adopted?
Answer: Yes, the County will maintain its Capital Improvement Plan.
Question: Is the proposed borrowing within the Board of Supervisors’ debt policy limits?
Answer: Yes. The Board of Supervisors adopted debt policy requirements are as follows:
Debt as a percentage of assessed value cannot exceed 3%
Debt payments as a percentage of governmental expenditures cannot exceed 15%
With the proposed borrowing for referendum projects, these percentages are estimated to reach 1.95% and 8.05%, respectively, at the highest points. The full policy is available on the county website by clicking here.
Question: Will the referendum impact the County’s bond rating?
Answer: Gloucester County does not have a bond rating. The County uses the Commonwealth of Virginia’s bond rating, as many localities do. General Obligation Bonds of the Commonwealth are currently rated in the highest bond ratings category: AAA, Aaa, and AAA by Fitch, Moody’s and Standard and Poor’s, respectively.
Question: Can we pay off the debt incurred by the referendum early?
Answer: Yes, depending on revenue sources that may be available.
Question: What happens when the value of a penny changes or when assessments change?
Answer: The spending plan is based on a set amount of $1,164,255 additional revenue needed each year for debt service, which is $.02 based on FY2024 dollars. The budget team analyzes revenues each year. That data is provided to the Board, who will decide whether a tax increase or decrease is required to fund the debt payment. Since 2003, the value of a penny has increased each year except in 2011 and 2015, where the value decreased by 1% and 2%, respectively.
Question: The County used to obtain grants to pay for parks. Why aren’t we doing that for these projects?
Answer: The County actively searches for grants to support capital needs and will continue to do so in hopes of reducing the costs of these projects.
Question: Why is the County proposing a $.02 tax increase?
Answer: In April, the County’s financial advisors from Davenport presented borrowing scenarios based on no tax increase, a $.01 tax increase, and a $.02 tax increase, given the value of a penny from the FY2024 budget. On August 1, the Board passed a resolution to move forward with the borrowing plan based on the $.02 tax increase model. The tax rate increase of $.02 is an estimate based on the amount of additional funds required to fund the cost of the debt of referendum projects.
Question: How many households are there in Gloucester County to fund this debt?
Answer: While in 2022 there were 17,331 households in Gloucester according to the US Census Bureau, not all pay real estate taxes. The 2023 Land Book lists 24,485 parcels, of which 604 are exempt from taxes.
Question: How much money is generated by a $0.02 tax increase?
Answer: Based on FY2024 budget calculations, a penny is worth $582,127, so 2 pennies is expected to provide $1,164,254 of revenue.
Question: What is the total cost of all the projects, including principal and interest over the life of the loans?
Answer: The anticipated project cost (Principal) is $39,582,993, over 10 years. The anticipated interest based on 5% rate and maturities of 20-25 years for each borrowing is $26,585,738. The total cost of the debt is $66,168,731. This does not factor in interest rates which may be lower or higher (current interest for similar bonds are between 3 and 4%).
Question: Is holding a referendum legal?
Answer: Yes.
Question: Will the $.02 tax increase be enough to fund these projects?
Answer: The funding model takes into consideration an annual payment of $1,164,254 (FY2024 $.02 rate), along with funds from retirement of existing debt, $2,200,000 in up front revenue including cash from the Gloucester Fire and Rescue Department (GVFR), proceeds from the sale of a portion of the property GVFR owns, and a one-time use of fund balance.
Question: How long will the $.02 tax increase be needed?
Answer: The additional $1,164,000 in revenue will be needed through fiscal year 2051, based on current estimates. Beginning in fiscal year 2032, some of the $1,164,000 begins to accumulate into a reserve. This reserve could be used for future projects, or the Board could decide to redirect those funds or reduce the tax rate at that time.
Question: Why is the focus of this referendum on parks and schools when there are clearly infrastructure issues that need to be addressed specifically public utilities and the leak at Burleigh Road?
Answer: The project list was derived from the County’s capital improvement plan with input and approval from the Board of Supervisors. The Utilities Fund is separately supported with Utilities fees instead of General Fund tax revenue. A long-range Utilities plan was presented to the Board of Supervisors on September 9th and is available on the Board of Supervisors meeting portal.
Question: Why do taxes need to be raised if the County is issuing bonds?
Answer: The potential of a tax rate change is considered by the Board of Supervisors annually during the budget process. The bonds issued for the referendum projects will be repaid over time and the additional tax revenue will fund the debt payments.
Question: Didn’t the County just raise my taxes 1% a year or two ago to pay for school renovations?
Answer: The 1% school sales tax revenue is currently funding debt payments on the High School renovation, school HVAC projects, school paving projects, playground equipment replacement, the Achilles Bus Loop and the Page Athletic fields. If there is a balance of funds left from the sales tax which will be collected for 20 years, the Board can consider using those proceeds to cover any eligible referendum related school projects to reduce the amount of real estate tax revenue needed.
Question: Why isn’t a community pool/community facility included in the referendum?
Answer: The list of projects comes from the County’s 5 Year Capital Improvement Plan. The request for a community center/pool was not included in the 5-year plan. Citizens are encouraged to reach out to their Board representative or attend monthly meetings to provide input on other projects or budgetary considerations. You can find out who your Board representative is, view the meeting schedule, and watch past and current meetings on the County website here: https://gloucesterva.gov/board-of-supervisors
Question: What does Gloucester have in its general reserves, and why can’t it borrow against the reserves without a tax increase?
Answer: The estimated (unaudited) unassigned fund balance at the end of FY2023 was $29,678,469. The County can use the unassigned fund balance as appropriated by the Board of Supervisors. However, the Board of Supervisors has a policy that requires 14%-16% of governmental expenditures to remain in unassigned fund balance. The additional fund balance above this policy is provided to the Board during the budget process and is generally appropriated for smaller capital projects that can be paid for in cash rather than those that require financing. The fund balance above the Board policy that was available for use in the FY2024 budget was $4,609,739.
Your Vote Is Your Voice
The last day to register to vote or make changes before this election will be Monday, October 16, 2023
The last day to request to vote by mail in this election is Friday, October 27, 2023
Early voting in the Elections Office will go from September 22 through November 4, 2023
