Observer Online | Reston Town Idea is Sound

Edition of Sept. 21, 2007

Reston Town Idea is Sound

To the editor:

The financial plan of the Reston Citizens' Association (RCA) proposal for a Reston town (ResTown) is not well understood by many Restonians and some people doubt the assertions of RCA that their proposal would not result in higher taxes for homeowners.

There is nothing hidden or magic about the ResTown financial plan; it is all laid out in detail on the RCA website, www.go-restown.org, and there was an open workshop several weeks ago to discuss the proposal. But, perhaps, that is part of the problem. Not everyone has the time, interest, or expertise to review the many interlocked spreadsheets in which the details of the proposal are described. The purpose of this note is to describe the logic behind the plan in a way that would make sense to people without a Ph.D. in economics.

First, let's talk about county and local services that we already have, and pay for. The major part of the RCA proposal for ResTown is for the town to take over both the functions (and therefore the expenses) and the revenues of the Reston Association (RA) and the Reston Community Center (RCC). All of the staff salaries and benefits, and facilities, of both institutions would be turned over to the town. Also, the town would collect as taxes the equivalent of the Reston homeowners dues and the revenue from Small Tax District 5. Both RA and RCC are financially sound (indeed, with the rise in real estate values in the last few years, RCC made an operating profit which it plowed back into the Community Center to pay for capital improvements). Therefore, taking over the revenues and expenditures of RA and RCC by the town would be financially neutral.

With respect to county services and taxes, nothing would change. Police, fire department, schools, libraries, and other county services would still be provided by the county and the county would collect all the taxes it does now, except for Small Tax District 5. Thus, with respect to these services, the ResTown proposal would be financially neutral for both the county and the town.

Second, what about new services, expenses, and revenue sources of the town? Part of RCA's proposal is for the town to have a planning an zoning department apart from the county. This is important because it is through this department that Restonians would be able to exert influence and power in how our community develops. But it would add to the expenses of the town over and above the RA and RCC budgets. The town would also have additional revenues, mainly from businesses contributing town taxes. Currently, businesses do not pay RA dues. Reston is no longer a suburban residential community; look around and one sees the skyline dominated by commercial high rises. In RCA's proposal, businesses would pay town taxes like everyone else, and the revenue would cover the additional town expenses and leave some left over.

The bottom line for homeowners is given in the financial scenarios worked out by RCA (also on their website).

Most homeowners would actually pay less than they do now, in part because the business contribution to the town's finances allows a tax rate that would be less than what homeowners now pay in RA dues and Small Tax District 5 property taxes, and in part because town taxes would be deductible on Federal and State income taxes whereas RA dues are not. Businesses would pay more, but they should consider that they get benefits from being in Reston, and the proposed ResTown tax is much less than what businesses pay to our neighbors, the towns of Herndon and Vienna.

The ResTown proposal is not half-baked or "pie in the sky." It is a serious plan for the citizens of Reston to have more say in how our community grows.

Currently RCA is campaigning only to allow Restonians to vote on the town proposal. We need approval of the state legislature just to be able to vote on it. If you think we should have the right to vote on whether there should be a town of Reston, sign the petition on the RCA website.

Richard Stillson

Reston