The Hidden Costs of Spotsylvania’s VA Clinic

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For Spotsylvania and regionally located Veterans, the recent announcement that a new VA Clinic will be constructed in Spotsylvania is a positive thing. It is also a great thing for the County, as it will bring in new businesses and revenue, not to mention the prestige of being in Spotsylvania.

Despite these positives, some Spotsylvanians will likely suffer due to this project. How is that possible that a project that County staff projects will bring in $1 million in new revenue each year could have a downside? The downside is that the Board of Supervisors tied their proposal to delivering $80 million in transportation projects in the vicinity of the VA Clinic. Transportation projects are solely the State’s responsibility, but the current Board of Supervisors accepted the responsibility for $80 million in projects associated with the VA Clinic - some projects which that area needed even without a clinic. The $80 million in projects don’t account for another $25 million in transportation obligations in their draft 5-year Capital Improvements Plan (CIP). Is this ultimately why the Board of Supervisors did not assist the community as much as neighboring localities during the pandemic? Were funds held back to pay for these transportation projects? The Board of Supervisors have already put $6.5 million in a Transportation fund to pay for VA Clinic projects, which should make the community ask how would we be paying for these projects if the County did not receive $24 million in CARES Act funding due to the pandemic? The below three slides were pulled from a November 17th Board of Supervisors meeting presentation.

Based on the way the Board of Supervisors have operated over the past 4-5 years, this is not the type of project that should have been pursued. Even if you discount the most recent budget cycle that required projected pandemic impacts to be considered, the Board of Supervisors have consistently pursued equalized tax rates, expressed interest in lower taxes, and approving almost every housing development project that leads to more congestion and ultimately more core services needing to be delivered to County residents.

If the Board of Supervisors do not seriously reconsider past budget objectives, the VA Clinic will require the Board of Supervisors to reduce expenses for the next several years in core service areas or more likely neglect to maintain levels of services that County residents expect. There will be no way to pay for these transportation projects over the next 5 years and maintain levels of services in the County without pursuing “interest only” loans, raising taxes, or cutting service levels.

County staff has already told the Board of Supervisors in November that the only way to balance the 5-year CIP plan is to use “interest only” loans for the first 4 years for the transportation projects and hope that once the VA Clinic opens that increased revenue can cover the principle due. Keep in mind that this is based on the current tax rate projections - projections that could be improved with tax increases to pay for these projects that the Board of Supervisors committed the County to get the VA Clinic.

In the long term, it is clear that this is a positive project for the County and the Board of Supervisors and County staff should be congratulated for bringing the VA Clinic to Spotsy. However, now that the hidden costs are known, the Board of Supervisors must make the tough choices that not only pay their VA Clinic obligations, but also their obligations to County residents - which is to maintain adequate levels of core services for their growing population.

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Spotsy supervisors set aside tax revenues to fund VA clinic road projects

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 VA selects Spotsylvania site for new veterans clinic 

VA Road Projects (Courtesy of Scott Shenk at the Free Lance-Star)

Spotsylvania agreed to make various road improvements around the U.S. Department of Veterans Affairs outpatient clinic, set to open in 2023.

  • Capacity and safety improvements at the intersection of U.S. 1, Courthouse Road and Lafayette Boulevard.

  • Improvements at U.S. 1, Hood Drive and Mine Road.

  • Improvements at the Interstate 95 northbound exit ramp by adding an additional lane, along with widening U.S. 1 from four to six lanes between the two interchange ramps and adding an additional left-turn lane from northbound U.S. 1 to northbound I-95.

  • Adding a lane to the southbound ramp and an additional left-turn lane from southbound U.S. 1 to southbound I-95.

  • Extending Germanna Point Drive to Spotsylvania Avenue.

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