Loudoun County Charrette

Loudoun County
Virginia

Woods Road Solid Waste Facility

Population (County): Households: FY'94 Budget: Assessable Base: Municipal Property Tax: Median Household Income:

102,100 39,629 $218,929,041 $9,325,062,740 $1.00/$100 $62,000

County Background

Loudoun County, Virginia is part of the metropolitan Washington region. Loudoun is located 35 miles northwest of Washington, D.C. and covers 517 square miles. Eastern Loudoun County is home to Dulles International Airport and consists primarily of suburban, commercial, and industrial land uses. The majority of Loudoun's citizens live in the rapidly growing eastern portion. The western portion of the county has primarily rural residential and agricultural uses on gently rolling land between the Catoctin and Blue Ridge Mountains.

Loudoun County has an estimated population of 102,100. The county's population increased by 50% between 1980 and 1990 and continues to expand rapidly at about a 5% annual growth rate--more than 3,100 housing units were permitted in 1993. The rapid growth has placed increasing financial pressure on the county to provide services, particularly schools. Over the next five years, the county expects to have to finance nearly $180,000,000 in new schools and school improvements.

Loudoun is also an affluent county. The median household income is approximately $62,000. The average resale price of a single family detached home is $190,519. The unemployment rate in 1993 ranged below state and national averages at 3.6%.

The Issue

Since 1971 Loudoun County has operated a sanitary landfill four miles from Leesburg. That landfill is projected to reach capacity in 1996. Faced with a landfill that was rapidly running out of disposal space, the county began to look at options for future solid waste management alternatives in 1984. In 1989, the county contracted for a systematic county-wide search for the best site to locate a new landfill. As a result of that study, the county chose to locate a new landfill adjacent to the existing one (Woods Road site).

The existing county landfill serves all residents and businesses located in the county. The landfill accepts only municipal solid waste that is generated within the county. Waste collection services in the county are provided by the private sector. The local waste haulers assist the county in implementation of the county recycling program by providing curbside pick-up of recyclables. The recycling rate is 22%.

The volume of trash coming to the landfill has varied quite a bit since the county raised its tipping fees to $55/ton and implemented new regulations concerning the separation of brush, grass clippings, and woody wastes in July 1993. Daily volumes have shrunk from an average of 250 tons/day in 1992 to an average of 115 tons/day in 1994. Separation of brush, grass clippings, and woody waste along with increased recycling accounts for a portion of the reduced volume. The recent permitting of a local transfer station/material recovery facility (MRF) has also diverted a significant amount of the waste stream. The non-recyclable materials or by pass wastes from the MRF are currently being transported to a landfill outside of the county.

Currently, the county does not have flow control regulations that would guarantee a consistent volume of solid waste to be disposed of at the county landfill. The county could increase landfill revenues without substantially increasing operating costs if flow control was implemented. Recently, the Supreme Court has ruled against flow controls, but many in Congress believe that new legislation may bring this concept back.

Environmental Context

The county is still considering other alternatives to operating the new landfill. Recognizing that trash is a commodity and that there are a number of private landfills in the Richmond area that currently have relatively low tipping fees, the county has considered operating transfer stations to transport the waste to a private landfill. Loudoun's main concerns with exporting solid waste to a private landfill include potential long term liability issues, future hikes in tipping fees, and the investment that has already been made in land acquisition, design, and permitting of the Woods Road site

Project Financing

Loudoun County is trying to determine a feasible means to finance the Woods Road Solid Waste Facility. To date, Loudoun has already spent approximately $16,000,000 for land acquisition, permitting, and design work. The $16,000,000 was raised through general obligation bonds. Another $10,000,000-$12,000,000 is needed for the first two construction elements of the facility. The first two construction elements constitute most of the infrastructure needs as well as a disposal area for approximately 10 years of landfilling.

Due to the rapid growth in population, the county is already committed to spending most of the remainder of its self-imposed general tax fund debt limit for construction of new schools. With that limit in mind, Loudoun is attempting to identify other alternatives for financing the facility.

Recommendations and Observations

1. With a self-imposed county debt limit of 2 1/2% of assessable base, consider raising that ceiling to accommodate the increased costs of managing a rapidly growing metropolitan suburb.

2. Because the State of Virginia does not allow counties to impose their own impact fees, and must get prior approval from the State, work with the State to allow Loudoun County to impose impact fees on all development in the county. The proffer system that is currently in place is reactive, so that capital improvements do not take place in a timely manner.

3. Given recent legal opinion that suggests that, under certain conditions, local government would not be held liable for municipal trash transported to distant landfills, analyze the costs and benefits of transporting county trash to underutilized Richmond landfills. Amortize the money already spent on land acquisition and project design over the entire county population.

4. Sell or transfer the permit to a private operator and then contract back half of the capacity as a secondary source (back-up) to the shipping of trash to the Richmond landfill.

5. Play hardball--invite developers to participate in the county's prosperity and ideal location only if they shoulder some of the burdens of providing adequate facilities--"pay as you go."

6. Compete directly with the private transfer station by offering separation services and convenient locations at lower cost than the private company--try to attract private haulers' business by "marketing" the county's superior transfer capabilities. Finance county transfer station with revenue bonds.