During the Town Council work session on January 28th, a comprehensive review of the Fiscal Year 2026 to Fiscal Year 2030 Capital Improvement Projects (CIP) was presented. However, significant changes were made during a meeting on April 2nd, 2025, where the Purcellville Town Council, under the direction of Interim Town Manager Kwasi Fraser, discussed essential revisions to the projected budget.
In the initial review, the General Fund consisted of five major projects totaling $3.9 million. These initiatives included improvements to 32nd and Main Streets, upgrades to G Street sidewalks, a shared-use path from Hirst Road to the W&OD Trail, sidewalk enhancements along Nursery Avenue, and South 32nd Street sidewalk improvements from J Street to Nursery. The Town is actively seeking funding from external sources such as Loudoun County, the Northern Virginia Transportation Authority (NVTA), and the Virginia Department of Transportation (VDOT). Without this funding, the Town could face a reimbursement obligation of $1,220,239 to NVTA and VDOT for previously allocated funds.
In addition to the General Fund projects, the Council reviewed several other areas:
– Parks and Recreation: Two projects totaling $412,466 were highlighted, focusing on the renovation of the Fireman’s Field warning track and outfield press box.
– Waste Water: Three projects were outlined, requiring a total of $3,619,000.
– Water: Three projects were presented with a combined budget of $1.6 million.
At the April 2nd meeting, the Town Council moved forward with proposed revisions. Notably, there were no changes made to the General Fund, with Purcellville continuing its pursuit of external funding for the FY 26 projects. However, Parks and Recreation projects were deferred for further consideration.
In the Waste Water sector, the Council decided to proceed with CIP requests to replace essential screens, necessitating funding of $1,580,000 to be secured through cash or loans. The upgrades for the VIP Pump Station and West End Pump Station were also deferred.
The Water projects highlighted the urgent need for a new water tank on the Fields Farm property, targeted for completion by December 2026. An additional $983,000 in funding will be sourced from Mayfair proffers, American Rescue Plan Act (ARPA) interest, and cash/loans. Furthermore, $600,000 will be allocated in funding to bring Well 6F online, while repairs for the Million Gallon Tank have been deferred.
During the discussions, Interim Town Manager Fraser recommended utilizing reserves to provide immediate funding for these critical projects, coupled with a Reimbursement Resolution. This resolution is a formal declaration indicating the Town’s intent to reimburse cash reserves with proceeds from tax-exempt bonds for capital projects.
Council members Rayner, Wright, and Stought voiced their concerns regarding the potential consequences of depleting financial reserves below established policy levels, warning that this could negatively impact the Town’s credit rating for future loan applications. They highlighted that the necessary funding would not be available until July 1, 2025, while also expressing worries about increasing interest rates and new tariffs that might raise project costs. Council Member Rayner pointed out that the Council has been withdrawing funds from utility reserves without a clear plan to replenish those savings for emergency repairs. In response, Fraser stated that he would ask Stantec to create a model that incorporates a 3% rate increase.
A straw vote showed unanimous support for proceeding with the identified critical CIP projects by utilizing reserves for immediate funding. However, the following straw vote regarding the intent to use a Reimbursement Resolution resulted in a divided outcome. Council Members Stought, Rayner, Wright, and Khalil voted in favor, while Members Luke and Nett chose not to commit to the resolution. Council Member Nett expressed that he had other ideas for addressing the funding but noted that he was not prepared to present alternative options at this meeting. Mayor Bertaut abstained from the vote.
Finance Director Liz Krens emphasized the importance of establishing a clear direction on funding so that the necessary rate analysis and models could be prepared for the upcoming budget meeting with Stantec and Davenport.
As Purcellville navigates these CIP changes, the Town Council remains committed to ensuring that essential services continue while balancing fiscal responsibility and community needs.