Popular Annual Financial Report

POPULAR ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2025

INSIDE Letter from the County Administrator | 2

TIM HEMSTREET | COUNTY ADMINISTRATOR

To the residents of Loudoun County: I am pleased to present the County of Loudoun, Virginia, Popular Annual Financial Report (PAFR) for Fiscal Year (FY) 2025, ended June 30, 2025. I deliver this report to highlight the commitment of county officials and the Board of Supervisors to keep residents and stakeholders informed of the financial condition of their local government, ensuring accountability to provide fiscal stability. This report provides important and informative information about the financial condition of your county government, in a concise and accessible format. The county concluded FY 2025 in sound financial condition, in part due to the diversity of revenues of the county, which makes it less susceptible to volatility in the economy. In addition, the county continued its commitments designed to effectively manage the challenges that continued growth has brought to Loudoun County. These commitments include maintaining high quality educational opportunities, connecting Loudoun by developing an effective transportation network, meeting the county’s diverse housing needs, and uplifting Loudoun businesses and promoting economic development so that the tax burden to residents is lowered and job opportunities and business growth continue to increase. The Board continues to devote significant resources to attainable housing programs as well as transportation and transit projects that support access to businesses and promote walkable, mixed-use areas. Population growth continues to be a dominant local trend affecting every area of the government’s operations. Loudoun is expected to continue to experience one of the highest percentage growth rates in population and jobs in the Washington Metropolitan Area. Continued planning and commitment is required to meet the challenge of efficiently providing needed services for the growing population, providing for the necessary infrastructure for the future, and growing the tax base and resources required to pay for that infrastructure and its operations. Loudoun County has continued to follow a policy of fiscal sustainability. In April 2025, the county adopted a budget for FY 2026 that totaled approximately $4.7 billion in total appropriations for the general county government and public school system. This represents an overall increase of $119.6 million in funding for Loudoun County government and a $111.8 million increase in funding for Loudoun County Public Schools as compared to FY 2025 appropriations. In managing our available resources, the county must strike a balance between the demand for additional services and the ability to pay for those services. Financial management continues to be of paramount importance in this and future fiscal years. The county’s financial health is reflected in the soundness of its current financial condition, and it is anticipated that current financial management practices will continue the county’s tradition of fiscal stability. The Board’s emphasis on sound fiscal planning, budget development and financial management contributes to the present financial condition of the county and sets the parameters and tasks for next year.

The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to Loudoun County, Virginia, for its Popular Annual Financial Report for the fiscal year ended June 30, 2024. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. Loudoun County, Virginia, has received a Popular Award for the last eight consecutive years (Fiscal Years 2017-2024). We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to the GFOA to determine its eligibility for another Award.

ABOUT THIS REPORT This report is intended to provide the public with information about Loudoun County’s financial condition in an easily understandable format. The PAFR supplements the Annual Comprehensive Financial Report (ACFR) and is not a substitute for the ACFR. This report does not conform to Generally Accepted Accounting Principles (GAAP) and focuses only on governmental services. Financial information related to Loudoun County Public Schools, Internal Service Funds, and Fiduciary Funds are not included. While the PAFR is not audited and does not contain the full set of financial statements and disclosures, it does contain figures and information extracted from the fully audited ACFR. The ACFR is prepared in conformity with GAAP and audited in accordance with GAAP by a firm of licensed certified public accountants, Cherry Bekaert, LLP. The ACFR is available in its entirety online at loudoun.gov/ FinancialReports. We encourage all residents and stakeholders to read the ACFR and the full financial disclosures contained within the document.

Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting

Presented to County of Loudoun Virginia For its Annual Financial Report For the Fiscal Year Ended June 30, 2024

Executive Director/CEO

LOUDOUN COUNTY AT A GLANCE POPULATION

Loudoun County remains the 4th most populated county in Virginia, with a population increase exceeding 20 percent since 2015, including more than 7 percent from 2020 to 2025.

FY 2026 POPULATION PROJECTION: 462,063

100,000 0 200,000 300,000 400,000 500,000 600,000

2.2% 1.9%

4.7% 3.1%

6.4%

7.8%

14.2%

18.0%

20.5%

2015

2020 2025

2010

2030 2035

2050

2040 2045

Source: Decennial Census (2010,2020) Loudoun County Office of Management and Budget (2015, 2025), Metropolitan Washington Council of Governments Cooperative Round 10.0 Cooperative Forecast (2030-2050)

5,299 COUNTY EMPLOYEES Source: FY 2026 Adopted Budget, Total Full-Time Equivalent (FTE)

520 SQUARE MILES

YOUR BOARD OF SUPERVISORS

Loudoun County Board of Supervisors 2024–2027 (First row, from left to right) Sylvia R. Glass, Broad Run; Juli E. Briskman, Algonkian; Phyllis J. Randall, Chair At-Large; Michael R. Turner, Ashburn. Second row, from left to right: Caleb A. Kershner, Catoctin; Kristen C. Umstattd, Leesburg; Laura A. TeKrony, Little River; Koran T. Saines, Sterling; Matthew F. Letourneau, Dulles.

Loudoun County is governed by an elected body of representatives called the Board of Supervisors, with one Supervisor elected from each of the eight magisterial districts and one At-Large Chair for a term of four years. The Board of Supervisors is the legislative and policy setting body for the county government, oversees general governmental operations, and is responsible for appropriating funds for the various county departments and agencies.

The Board of Supervisors appoints a County Administrator to act as the Board’s agent in the operation of departments and agencies. The Board also appoints a County Attorney, along with advisory boards, commissions and committees that provide opportunities for county residents to be directly involved in local government. Other elected county officials include the School Board, Clerk of the Circuit Court, Commissioner of the Revenue, Commonwealth’s Attorney, Sheriff and Treasurer. The judges of the Circuit Court, General District Court, and the Juvenile and Domestic Relations District Court are elected by the state legislature.

LOUDOUN COUNTY ELECTION DISTRICTS

1. Algonkian - George Washington University

2. Ashburn - Ashburn Library

3. Broad Run - One Loudoun

4. Catoctin - Lucketts Community Center

5. Dulles - Dulles Airport

6. Leesburg - Historic Downtown

7. Little River - Salamander Resort

8. Sterling - Claude Moore Recreation Center

MAJOR INITIATIVES

During FY 2025, the county made significant progress on projects that reflect the Board of Supervisors’ strategic focus areas: • Community Programs and Services • Connecting Loudoun • Improving Diversity, Equity, Inclusion and Belonging • Meeting Loudoun County’s Diverse Housing Needs • Preserving Open Space and the Environment • Uplifting Loudoun Businesses and Promoting New Economic Development • Implementing the findings of the Administrative and Legislative Land Use Review Assessment

Data Center Standards The effort to update the county’s policies and standards for data center and utility substation uses continued in FY 2025 through the Data Center Standards and Locations project. In Phase 1, the Board of Supervisors adopted map and text amendments to the Loudoun County Comprehensive Plan and associated amendments to the Loudoun County Zoning Ordinance to address concerns related to land use, compatibility, aesthetics, infrastructure and natural and environmental resources.

Attainable Housing As the demand for attainable housing across all income brackets remains high, the Board of Supervisors approved several loans through the county’s Affordable Housing Loan program for affordable, multi-family rental housing. The Board also approved a residential rezoning project comprised entirely of affordable housing, moving the county closer to meeting its housing goals. Broadband Expansion The initiative to expand broadband service to unserved areas of Loudoun County connected the first customer in the county in FY 2025. The county is working with its grant partner, All Points Broadband, to bring internet access to approximately 8,600 unserved residents and businesses in rural parts of Loudoun.

Equity Action Plan In February 2025, the Board of Supervisors approved key goals and objectives for the county’s first ever Loudoun Equity Action Plan (LEAP). The LEAP is a three-year strategic plan designed to guide Loudoun County’s work to advance diversity, equity, inclusion and accessibility. Loudoun’s Trails and Waterways The county’s Linear Parks and Trails System became “Loudoun’s Trails and Waterways” in FY 2025. The initiative includes a new logo and signage for the county’s trail system, which will ultimately provide an interconnected system that protects natural and cultural resources, honors Loudoun County’s unique sense of place, and connects residents to each other and to the county’s natural and cultural landscapes, communities, and destinations. Transition Services for Young Adults Loudoun County government is working with the Loudoun County Public Schools to prioritize connecting county services with families supporting adults 22 years of age and up who are aging out of school and cannot engage in competitive employment.

Child Care Provider Incentive Child care providers in Loudoun County were encouraged to apply for a grant designed to improve the quality of child care in the county. The Child Care Quality Improvement Incentive Program used $286,500 in American Rescue Plan Act funding to assist local child care providers. The $750 grant could be used to purchase equipment, help furnish or otherwise supply classrooms, provide teacher incentives or purchase specialized training.

LOUDOUN’S ECONOMY

In FY 2025, Loudoun Economic Development received several significant recognitions, including earning the designation of an Accredited Economic Development Organization (AEDO) by the International Economic Development Council (IEDC). This recognition places Loudoun among an elite group of only 85 organizations worldwide and only the third in Virginia to receive this honor. A former IEDC Economic Development Organization of the Year, Loudoun Economic Development continues to establish itself as the gold standard in innovative economic development practices. The AEDO accreditation involves a rigorous, multi-phase review process assessing an organization’s policies, procedures, and accomplishments. Loudoun’s focus on attracting diverse industries, supporting local businesses, and maintaining a thriving rural economy were key factors in earning the designation. Loudoun Economic Development also received national and statewide recognition for its programs, publications and marketing efforts, receiving awards for the Innovation Challenge, Loudoun Farm Tours, the FY 2024 Annual Report and the Holiday Card campaign.

Loudoun County’s economy reflects the relative stability, high income and low unemployment characteristics of the Washington, D.C. region. The county’s key industries include data centers, information and communications technology, federal government contracting, aerospace and defense, aviation and logistics, health innovation technology, and agriculture and rural business. Loudoun’s dynamic and diverse economy continued to thrive in FY 2025 with the county securing investments that bolstered its key industries. These investments not only created jobs but have also enhanced the quality of life for all residents. Working with the Office of the County Administrator and the Board of Supervisors, Loudoun Economic Development has crafted strategic initiatives that attract new businesses, support local enterprises and foster an environment where innovation flourishes. These efforts have not only helped businesses thrive but have also positioned Loudoun as a leader in economic development, earning the county national recognition and solidifying its reputation as a business-friendly environment.

178 4,561 $8.47 B

Businesses Opening or Expanding Jobs Created or Retained

In New Commercial Investment

TOP 5 LARGEST EMPLOYMENT INDUSTRIES

Professional, Scientific, and Technical Services

Health Care and Social Assistance

Accommodation and Food Services

Educational Services

Construction

Source: Chmura JobsEQ, Q2 quarter 2024

TAXES

The county’s largest revenue source is property tax revenue. FY 2025 was another year of revenue and tax base growth, with a property tax revenue increase of approximately $104.4 million from FY 2024. Property tax includes real property and personal property. Real property is assessed annually at 100% fair market value, with the date of value being January 1. The increase in real property and personal property taxes was a result of growth in assessment values. The growth in the new construction of commercial properties, increase in assessed values of commercial properties, personal property taxes on computer equipment and vehicles were the main factors driving the increase in revenues.

In April 2025, the Board set the calendar year 2025 real property tax rate at $0.805 per $100 of assessed value, $0.060 lower than the previous rate of $0.865 for the calendar year 2024. The increase in real property values enabled the county to decrease the real property tax rate while still providing sufficient revenue to support Loudoun County government and Loudoun County Public Schools operations that continue to feel the impact of the county’s sustained population growth. Over the past decade, as the assessed real property tax values appreciated, the Board has reduced the property tax rates.

ASSESSED VALUE OF TAXABLE PROPERTY

PROPERTY TAXES (REAL & PERSONAL)

$30,000,000,000 $40,000,000,000 $50,000,000,000 $60,000,000,000 $70,000,000,000 $80,000,000,000 $90,000,000,000 $100,000,000,000 $110,000,000,000 $120,000,000,000

$2,900,000,000

$2,400,000,000

$1,900,000,000

$1,400,000,000

$900,000,000

$400,000,000

2015

2017

2019

2021

2023

2025

Fiscal Year

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

REAL PROPERTY TAX AND TAXABLE VALUE OF REALPROPERTY $0.790 $0.840 $0.890 $0.940 $0.990 $1.040 $1.090 $1.140 $1.190

30,000,000,000 40,000,000,000 50,000,000,000 60,000,000,000 70,000,000,000 80,000,000,000 90,000,000,000 100,000,000,000 110,000,000,000 120,000,000,000

Taxable Value of Real Property

Real Property Tax Rate

Real Property tax rates are per $100 of assessed value

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Fiscal Year

TOP 10 TAXPAYERS

Rank

Business Name

Assessed Value

% of Taxable Assessed Value

1.61% 1.53% 1.35% 0.85% 0.83% 0.79% 0.73% 0.58% 0.56% 0.55%

Digital Loudoun 3 LLC NTT Global Data Centers VA LLC Amazon Data Services Inc Digital Loudoun Pkwy Ctr North LLC Equinix LLC Microsoft Corp Aligned Energy Data Centers IAD Propco LLC Kaveh Ventures LLC

1 2 3 4 5 6 7

$2.76 Billion $2.63 Billion $2.31 Billion $1.47 Billion $1.42 Billion $1.35 Billion $1.26 Billion

8 9 10

$991.31 Million $966.50 Million $951.40 Million

C1 Norther Virginia Sterling V LLC Compass Datacenters IAD I LLC

LOUDOUN COUNTY GOVERNMENT BY THE NUMBERS

GENERAL GOVERNMENT ADMINISTRATION

99% of public inquiries resolved within 48 business hours

JUDICIAL ADMINISTRATION

2,210 criminal cases filed 4,415 civil cases filed

PUBLIC SAFETY

12:10 minutes average response time for emergency calls 29,932 emergency medical incidents 10,470 fire incidents

PUBLIC WORKS

1 landfill, 210,115 tons of waste disposed 9 recycling drop-off centers, 8,396 tons of waste diverted

HEALTH AND WELFARE

178,948 senior meals provided 61,777 companion service hours provided 1,230 children served by early intervention

PARKS, RECREATION AND CULTURE 3,400,000 million park patrons 7,000 adults participating in sports 52,000 children participating in sports

COMMUNITY DEVELOPMENT

1,085 residential and 3,012 commercial building permits issued 98% of affordable dwelling unit rentals filled 146,000 building code inspections

FUND BALANCE & NET POSITION

GOVERNMENT-WIDE

The Government-wide Statement of Net Position, along with the Statement of Activities, answers the question of whether the county is better or worse off as a result of the year’s activities. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to a private-sector company. All revenues and expenses are taken into account, regardless of when cash is received or paid. In the Statement of Net

Position, the county reports governmental activities and its component units. All the county’s basic services are reported as governmental activities. Property taxes, other local taxes, and state and federal grants, finance most of these activities. The component units, the Loudoun County School Board (Loudoun County Public Schools) and the Economic Development Authority (EDA) are separate legal entities. Although legally separate, the county is financially accountable for the component units and provides operating and capital funding for the Loudoun County Public Schools. The county ended FY 2025 with a positive net position of $3.5 billion, a 4.8% increase over FY 2024. The largest portion of the net position reflects an investment in capital assets of $5.5 billion which increased by 6.3% over the prior year. The primary government and its component units use these capital assets to provide a variety of services to residents. Government-wide liabilities for FY 2025 totaled $5.3 billion, an increase of 4.9% over FY 2024. For primary government, this increase was primarily due to the issuance of bonds providing funding for various school, parks, public safety, and transportation projects, as well as increased liability for compensated absences.

GOVERNMENT-WIDE NET POSITION

$4,000,000,000

$3,500,000,000

$3,000,000,000

$2,500,000,000

$2,000,000,000

$1,500,000,000

$1,000,000,000

2021

2022

2023

2024

2025

FUND BALANCE & NET POSITION

GOVERNMENTAL FUNDS

The county presents two kinds of financial statements: the government-wide statements discussed previously and the fund financial statements. The governmental fund financial statements provide information on a current resource basis only and focus in greater detail on the county’s funds, and not the county as a whole. Most of the county’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets can readily be converted to cash flow in and out and, (2) the balances left at year end that are available for spending. Consequently, the governmental funds’ statements provide a detailed short-term view that helps the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance the county’s programs. Loudoun’s general fund balance has been increasing over time and is both positive and available. This indicates a healthy trend and strong fiscal condition which serves to support the county’s AAA bond ratings and provides sufficient carry-over funds for cash flow purposes. Carryover funds eliminate the need for short-term borrowing between the start of the fiscal year and the receipt of revenue from taxes. The general fund balance increased by $60.5 million in FY 2025 compared to the previous year. County tax revenue increased primarily from stronger than-expected performance in the real estate portfolio,

particularly among commercial properties and growth in business personal property equipment revenues. An increase in interest earned on investments, due to high interest rates, contributed to a stronger than expected performance in revenue. The increase in assessment values for property and growth in local tax revenue exceeded the growth in expenditures related to personnel and operating and maintenance costs, as well as higher transportation and infrastructure costs, contributing to the increase in fund balance. The total general fund balance is $777.6 million, of which $194.4 million was unassigned and available to meet the county’s current and future needs. In addition to the General Fund, the county has 29 special revenue funds reported in the ACFR as Non- Major Governmental Funds. A special revenue fund is a fund established to collect revenue for a specific project or purpose. The non-major governmental fund balance increased by $61.9 million compared to the previous year. This increase is attributable to a rise in proffer contributions, increases in tax revenue allocated to affordable housing, and increased funding of transportation projects from the Northern Virginia Transportation Authority and gasoline tax. Please refer to the ACFR, Other Supplementary Information for details on these Special Revenue Funds.

GENERAL FUND BALANCE

$900,000,000

$800,000,000

$500,000,000 $600,000,000 $700,000,000

$400,000,000

$100,000,000 $200,000,000 $300,000,000

2021

2022

2023

2024

2025

FUND BALANCE & NET POSITION

GOVERNMENTAL FUNDS

• Committed: funds to be used only for a specific purpose based on constraints placed by formal action of the Board of Supervisors. • Assigned: funds the government designates to be used for a specific purpose. • Unassigned: residual fund balance available for any purpose. At the end of each fiscal year, the unassigned fund balance is available for appropriation by the Board to be used for one-time expenditures. The county maintains a fiscal reserve in the committed portion of fund balance equal to no less than 10% of the county and component unit- schools’ General Fund operating revenues. In FY 2025, the fiscal reserve increased by $22.5 million to a total of $340.0 million. In FY 2025, the governmental funds reflected a total fund balance of $2.1 billion. Capital projects reported a fund balance of $901.1 million and debt service $53.5 million. The general fund and capital projects fund balance increased by $60.5 million and $109.7 million respectively, and debt service increased $12.6 million from the prior fiscal year.

Governmental fund balances are listed in five categories: • Non-Spendable: funds that cannot be spent because they are not in spendable form or are required legally or contractually to remain intact, such as prepaid items and notes and loans receivable • Restricted: funds to be used only for a specific purpose based on constraints placed on the funds by external parties, legislation, or constitutional provision.

Governmental Funds Financial Analysis of Fund Balance Fiscal Year 2025

General

Capital Projects

Debt Service

Non-Major Governmental

Total

Non-Spendable Restricted Committed Assigned Unassigned Total Fund Balances

$1,472,923 - 494,521,802 87,244,876 194,392,805 $777,632,406

$ - 292,142,257 493,318,540 115,598,140 - $901,058,937

$- - - 53,533,987 - $53,533,987

$509,904 287,004,551 42,840,794 36,741,066 - $367,096,315

$1,982,827 579,146,808 1,030,681,136

293,118,069 194,392,805 $2,099,321,645

FY 2024 Total Fund Balances FY 2024 to FY2025 Comparison

$791,341,298

$40,981,606

$305,156,579

$1,854,586,190

$717,106,707

$109,717,639

$12,552,381

$61,939,737

$244,735,456

$60,525,699

FISCAL YEAR 2025 FINANCIAL RESULTS: GENERAL FUND SUMMARY

The General Fund is the primary tax and operating fund for county governmental activities used to account for all county revenues and expenditures which are not accounted for in other funds, and which are used for the general operating functions of county agencies. The charts shown here report only on the General Fund and are presented on a current financial resource, non- GAAP basis. More detailed GAAP basis financial statements can be found in the county’s ACFR in the Basic Financial Statements, and Required Supplementary Information. General Fund Revenues Seventy-nine percent of the county’s General Fund revenues and other financing sources come from property taxes on real and personal property. The other 21% comes primarily from sales and other taxes, intergovernmental & transfers-in, and charges for services and use of property. This mix has remained relatively consistent over the past three fiscal years, with property taxes 79% of total revenues, other local taxes 8% to 9%, and intergovernmental and transfers-in 5%. For FY 2025, actual tax revenues from all sources - including local, commonwealth, and federal - exceeded amended budget amounts by $154.9 million. Real property taxes driven by increases in assessment values and continued growth of commercial and industrial properties provided $9.7 million of the increase. Personal property taxes for computer equipment in data centers exceeded the budget by $29.6 million. Other personal property increases, including vehicles, accounted for $39.0 million of the increase due to elevated assessed values of vehicles and additional equipment and furnishings that accompany the growth in commercial properties in the county.

Intergovernmental revenues fell short of the amended budget by $47.7 million, primarily due to resources received before eligibility requirements were met for programs such as pandemic recovery activities and broadband initiatives which are budgeted as received. Since the timing of these grant funds crosses fiscal years, not all funding was spent in FY 2025. Revenues not meeting recognition requirements were reclassified as liabilities, to be recognized next fiscal year as spending continues. Revenues generated from interest on investments exceeded the budget by $54.5 million due to interest on investments far exceeding expectations, higher than expected interest rates, and growth in the size of the county’s portfolio have contributed to a much stronger-than-expected performance in interest revenue. Leases and IT subscriptions inflows totaled $45.5 million; however these were offset with outflows as required by Governmental Accounting Standards Board accounting standards. Charges for services were $2.8 million below budget due to a decline in enrollment in preschools, daycares and afterschool activities and a delay in the opening of new facilities that charge fees for services.

FY 2025 REVENUES & OTHER FINANCING SOURCES BY TYPE

1% 1%

Property Taxes 79%

Intergovernmental & Transfers-in 5%

Charges for Services & Use of Property 5%

79%

Misc and Other 1%

Sales & Other Taxes 8%

Leases, IT Sub. & Public-Private Partnerships 1%

Permits & Licenses 1%

FISCAL YEAR 2025 FINANCIAL RESULTS: GENERAL FUND SUMMARY

GENERAL FUND REVENUE & OTHER FINANCING SOURCES 2023-2025

$2,800,000,000

$2,600,000,000

$2,400,000,000

$2,200,000,000

$2,000,000,000

$1,800,000,000

$1,600,000,000

$1,400,000,000

$1,200,000,000

$1,000,000,000

2023

2024

2025

Property Taxes

Sales & Other Taxes Permits & Licenses

Intergovernmental & Transfers

Charges for Services & Use of Property Leases, IT Sub. & Public-Private Partnerships

Misc & Other

GENERAL FUND REVENUE & OTHER FINANCING SOURCES

FY 2024

FY 2025

Variance

Actual

Final Budget

General Fund Revenue & Other Financing Sources General Property Taxes Other Local Taxes

$2,283,573,991 $223,529,346 $39,394,130 $1,827,023 $87,839,076 $44,741,818 $10,191,885 $14,189,832 $135,503,742 $1,956,109

$86,988,117 $1,888,196 $12,770,549 $312,323 $54,505,697 $(2,774,007) $(485,832) $3,742,357 $(47,661,121) $153,108

$2,128,061,045 217,120,606 29,284,973 1,728,569

$2,196,585,874 221,641,150 26,623,581 1,514,700

Permits and Licenses Fines and Forfeitures Use of Money and Property Charges for Services Miscellaneous Revenue Recovered Costs Intergovernmental Revenue

85,844,698 42,146,872 10,293,913 13,157,065 135,847,853 1,651,888

33,333,379 47,515,825 10,677,717 10,447,475 183,164,863 1,803,001

Transfers-in and Sale of Capital assets Leases, IT Subscriptions, Public-Private Partnerships

$45,470,131

32,417,584

$45,470,131

$2,697,555,066

$2,888,217,083

$2,733,307,565

Total

$154,909,518

FISCAL YEAR 2025 FINANCIAL RESULTS: GENERAL FUND SUMMARY

General Fund Expenditures The county’s largest spending category is education, representing 47% of spending, including transfers to other funds. Transfers to other funds are for the purpose of funding activities outside of the General Fund. Other expenditures reported in the general fund include public safety (12%), general government (6%), health and welfare (5%) and parks, recreation and culture (4%) Actual expenditures and transfers ($2.8 billion) were 2.6% less than the total amended budget amount of $2.9 billion.

Most of the expenditure savings were in operations and maintenance areas. The areas of operations included contractual services for $32.5 million less than budgeted due to delays and underspending in American Rescue Plan Act (ARPA) funding, transportation, information technology, family services, mental health and substance abuse contracts. Other charges of $10.1 million, and materials and supplies of $6.9 million contributed to expenditure savings. Total expenditures and transfers grew by 11.2%, or $285.2 million. Major areas of increase in expenditures over were education, public safety, and general government administration.

FY 2025 EXPENDITURES & OTHER FINANCING USES BY ACTIVITY

GENERAL FUND EXPENDITURES & OTHER FINANCING USES 2023-2025

$2,650,000,000

1% 1%

$2,150,000,000

$1,650,000,000

47%

$1,150,000,000

$650,000,000

12%

$150,000,000

19%

2023

2024

2025

Education 47% Public Safety 12%

Transfers to Other Funds 19%

Education

Transfers to Other Funds

General Government Administration Health and Welfare

General Government Administration 6%

Health and Welfare 5%

Parks, Recreation and Culture 4%

Community Development

Public Works

Public Works 1%

Community Development 3% Judicial Administration 1%

Parks, Recreation and Culture

Public Safety

Capital Outlay, Leases & IT Subscriptions 2%

Judicial Administration

GENERAL FUND EXPENDITURES & OTHER FINANCING USES

FY 2024

FY 2025

Variance

Actual

Final Budget

General Fund Expenditures & Other Financing Uses General Government Administration Judicial Administration Public Safety Public Works Health and Welfare Parks, Recreation and Culture Community Development Capital Outlay, Leases & IT Subscriptions Education Transfers to Other Funds Total

$156,500,700 31,985,614 326,691,138 33,912,554 137,575,604 106,590,248 93,306,156 82,545,646 1,328,647,449 529,936,274 $2,827,691,383

$199,840,984 33,268,683 352,678,764 45,795,409 172,217,219 121,360,367 118,692,630 32,991 1,328,610,735 529,922,139 $2,902,419,921

$43,340,284 1,283,069 25,987,626 11,882,855 34,641,615 14,770,119 25,386,474 (82,512,655) (36,714) (14,135) $74,728,538

$131,206,912 28,428,384 292,838,299 30,406,303 125,369,338 93,194,855 83,458,305 62,455,978

1,235,777,857 459,392,415 $2,542,528,646

CAPITAL IMPROVEMENTS

The county’s Capital Improvement Program (CIP) provides a six-year forecast of the county and school division’s land, facility, and equipment needs for each project, and plan to replace, improve, expand, and develop infrastructure, facilities, or other large county assets. The program prioritizes the following key areas: • An efficient and effective transportation network • Expanding infrastructure to support high quality educational opportunities • Safe and secure neighborhoods for residents

At the end of FY 2025, the government invested approximately $2.4 billion in capital assets, while the component unit-schools had $2.5 billion in capital assets. This represents an increase of $160.7 million over FY 2024 for the primary government, and $51.5 million for the component unit-schools. In FY 2025, the county adopted the FY 2025 - 2030 CIP totaling $3.5 billion during the six-year planning period. County projects total $1.1 billion, transportation projects total $1.4 billion, and school construction and renovation projects total $996 million.

PERCENTAGE OF SCHOOL PROJECT EXPENDITURES BY TYPE

Renovations & Other Projects 47%

High Schools 45%

47%

45%

Elementary Schools 8%

Middle Schools 0%

PERCENTAGE OF COUNTY PROJECT EXPENDITURES BY TYPE

0.4%

Transportation 55%

10.6%

General Government Administration 26%

55%

Parks, Recreation & Culture 10.6%

Public Safety 8%

26%

Health & Welfare 0.4%

CAPITAL IMPROVEMENTS

PROJECTS COMPLETED IN FY 2025

Aldie Fire and Rescue Station #7

Ashburn Recreation and Community Center

Eastern Loudoun Group Home

Bles District Park Facility Improvements

Landfill Construction Demolition Debris Unit

Belmont Ridge Road Improvements

MAINTAINING OUR AAA STATUS

Loudoun County issues debt in the form of bonds and other financial instruments to help fund capital projects. As the county has experienced near exponential growth over the last two decades, the need for more facilities has grown as well. School and public safety facilities, recreational centers, transportation, and construction projects are often funded through the issuance of bonds. While Loudoun County has taken on debt in the creation of these capital improvements, it has done so responsibly and within the confines of good fiscal management. In May 2025, the nation’s top bond rating agencies affirmed Loudoun County’s triple-A ratings on its general obligation

bonds, noting the county’s strong financial performance, a robust economic profile with a diverse tax base and strong management. Loudoun County has held the Aaa rating from Moody’s since 2004, and AAA from Fitch Ratings and S&P Global since 2005. The three rating agencies also affirmed Loudoun’s AA+ and Aa1 ratings on the sale of public facility revenue bonds through the Economic Development Authority, as well as its outstanding appropriation-backed bonds. The rating outlook for all three rating agencies is “stable.” These are the highest ratings available from each of these firms, and these ratings allow the county to borrow at competitive interest rates and ensure that our residents’ tax revenues are used efficiently.

2026 AND BEYOND

To best serve the community, Loudoun County government continues to deliver innovative programs and services and construct new facilities and infrastructure while preserving the cultural, historic and natural resources of the county. Crisis and Stabilization Center Loudoun County’s new Crisis Receiving and Stabilization Center, which is expected to be complete in 2026, will provide around-the-clock care, including urgent psychiatric care, for adults who are experiencing a behavioral health crisis. The center will reduce the reliance on law enforcement in situations where behavioral health services are required. The center’s services will promptly address the needs of the individual in crisis and offer timely intervention and treatment.

Transportation Projects In addition to ongoing road projects designed to reduce traffic congestion and improve safety, Loudoun County is implementing several projects that are designed to improve bicyclist and pedestrian safety and accessibility as well as connectivity to bike and pedestrian trails and transit options, including Loudoun Transit bus service and Metrorail stations. Union Street School The Union Street School rehabilitation project is expected to be completed in FY 2026. The historic structure is being renovated for public access and adaptive reuse. The Union Street School is part of Loudoun County’s Resident Curator Program, which helps to preserve the county’s historic buildings by rehabilitating and maintaining underutilized historic properties and making them accessible to the public. The Loudoun Freedom Center will serve as the curator for the property. Western Loudoun Rural Uses and Standards The review of the county’s rural uses and standards in western Loudoun will continue in FY 2026 as part of proposed amendments to the Loudoun County 2019 Comprehensive Plan and the Loudoun County Zoning Ordinance. The project includes extensive community engagement, which includes participation by the general community as well as those with a specific interest in agriculture, business, conservation and tourism.

Electrical Infrastructure Loudoun County is working to amend the Loudoun County 2019 Comprehensive Plan to improve the county’s ability to influence and guide the location, development and management of high-voltage transmission corridors and electrical infrastructure. The project includes updates to the plan’s maps and text, including policy updates related to the location, design and aesthetics of high-voltage transmission corridors. Invasive Plant Species Management Program The Loudoun Invasive Plant Species Management Program will continue in FY 2026 offering guidance and funding to eligible landowners. The program promotes and implements the removal of non-native invasive plant species that are negatively impacting the local economy and ecosystems. The county is partnering with the Loudoun Soil and Water Conservation District to administer the program.

Loudoun County Government Department of Finance and Procurement 1 Harrison Street S.E. P.O. Box 7000 Leesburg, VA 20177-7000 703-777-0290 loudoun.gov/ FinancialReports

A publication of Loudoun County Government | December 2025

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