The Boom Levels Off

For three years Middleburg's meals and lodging taxes climbed so fast that the Town cut its real estate tax rate, built a reserve, built a Town Hall and gave $300,000 to charity. In February, the first budget of 2024 said the climb is over, at least for now. Council also heard that the County is studying Route 50, watched Richmond take a swing at local zoning, said goodbye to the Middleburg Deli after 30 years, and thanked the firefighters who kept a Washington Street fire from spreading.
Council met February 8 without Councilmember Darlene Kirk, and February 22 with everyone. Mayor Bridge Littleton votes only to break a tie.
The Boom Levels Off
Asked for numbers adjusted for inflation, Town Manager Danny Davis brought them on February 8 ▶ video. Meals tax revenue rose 11 percent from 2021 to 2022, but only 3.5 to 5.5 percent after inflation, and was flat or down as much as 4 percent in 2023. Lodging taxes fell more. Only two businesses pay them, Littleton noted, Salamander and the Red Fox, "and to be down 9 to 11%. You know, that means they are down 9 to 11% in visitorship." Davis expects this year's meals tax to come in about 5 percent under budget and lodging taxes 5 to 10 percent under. He offered perspective: in FY '18 the lodging tax brought in $756,000, "so, yes, we have to be careful that we don't assume it's always going up."
The FY '25 budget Davis presented on February 22 assumes revenue grows just 1.8 percent ▶ video. Spending rises 4 percent over this year's amended budget, mostly because principal payments on the Town Hall bonds begin. He proposes cutting the real estate tax rate to 12.36 cents per $100, the equalized rate plus 3 percent for inflation; with assessments up, the average bill still rises $21 to $66. Property values rose about 10 percent, including $18 million of new houses at Salamander, and average assessed value is up 62.5 percent since 2020, a figure Davis said shows why Council is worried about affordability and the size of new houses.
Staff would get a 4 percent market adjustment and sworn police officers 7 percent, plus merit raises averaging 2 percent; Loudoun County is proposing 12.7 percent for its deputies. Water and sewer rates rise 3 percent again, with older mains on Stonewall Avenue and Chestnut Street next in line. The budget sets aside $750,000 for South Madison Street, alongside the $1 million already held for the Asbury Church, and leaves $431,000 unallocated. Littleton pushed for better forecasting than adding 5 percent to last year: "Salamanders nightly rates are down significantly," he said. The tax rate hearing is March 14.
Route 50, Again
The County is studying safety on Route 50 between Lenah and Upperville, and Littleton has seen this movie before ▶ video. When County staff mentioned possible turn lanes and roundabouts, "I actually said to him, I strongly recommend you don't make the Mickie Gordon mistake," he told Council: start with "a blank sheet of paper." The $60 million Route 50 traffic-calming project came with conditions, he reminded them: no turn lanes between Gilbert's Corner and Upperville, grass-and-gravel shoulders, no roundabouts. Few of the County staff had heard of it. He was also wary of designing today for 2050's traffic, since a wider road invites the growth it was built for.
About 60 people came to the County's February meeting, Littleton reported on February 22. He told the County to start from the position that nothing new is needed unless the data says so, and asked Chief Shaun Jones to get the Sheriff's enforcement numbers, since more enforcement might do more than new pavement. Childs Burden, from the original Route 50 Task Force, will represent the town on the County's study group. The project stops at the town line.
Richmond Swings at Zoning
The speed-limit bill Middleburg wanted, now HB 1071, passed both houses; once signed, it lets Council lower in-town limits by a vote ▶ video. The lodging-tax bill died. But SB 304, which would require localities to allow accessory dwelling units by right, with no limit on lot size, was alive in the House, and Littleton and other mayors went to Richmond to testify against it. Nine groups, mostly realtors and builders, spoke for it; about 30 localities and associations spoke against. Under questioning, he said, the sponsor admitted it wouldn't really produce affordable housing. SB 544, limiting permits for owner-occupied short-term rentals, was in House committee. A cannabis retail bill would let towns hold their own referendum on sales.
The Middleburg Deli Says Goodbye
After 30 years, Maria and Pedro Fuentes are retiring and closing the Middleburg Deli on February 29 ▶ video. They came from Washington to run it for Richard Danker, who later asked them to buy it. Council thanked them, 7-0. Danker had told them Middleburg was a good place for their children to grow up, Mrs. Fuentes said, and it had been, and that she would hang the resolution in her home in El Salvador.
Also This Month
- Fire on Washington Street: a fire in a downtown building on Tuesday, February 20, was ruled accidental, started by "a commercial style power strip located in what used to be a kitchen," Davis said. Crews came from Middleburg, Aldie, South Riding, Fairfax, Prince William and Fauquier. A private school bus struck a Middleburg officer in the leg during the response; the officer was treated and released. Littleton and Kirk want regular fire and electrical inspections of the old downtown buildings, which is a County job.
- Christmas in Middleburg parked about 1,100 cars, ran a 71-minute parade, drew 9,000 to 10,000 people by the Chief's estimate, and suffered a few dog fights, Doug Myers reported ▶ video. He will ask for a $10,000 grant toward resident seating and the extra police the new active-shooter policy requires. On complaints about parking prices, Littleton said, "free just means free to one person. It's still got to be paid for."
- Streetscape: Punkin Lee reported a year of trees: a red maple for Joe Embry, a dogwood for Mary Kay Garwood, a redbud for Eura Lewis. Arbor Day is April 27, with a tree for Joanne Cole.
- EV fast charger: Council approved the XCharge agreement, 6-0; the Town gets the charger free and keeps the revenue. Level 2 chargers may come to the Liberty Street lot and West Federal Street.
- Septic conversion is finished; Lori Olivieri of Lincoln Road thanked the Town for connecting her 1950 house to sewer.
- Staff: former Town Administrator Martha Semmes returns part time as interim zoning administrator while Deputy Town Manager Will Moore is on leave (Loudoun Now). Coe Eldredge joins the Strategic Finance Committee and Erin Leonard the Sustainability Committee.
- Calendar: the strategic retreat moves to April 2–3; the October 24 meeting moves to October 30 for the 1000 Miglia, which returns October 22–27. The Asbury Church outreach request for proposals went out February 22. Three short-term rental applications at Salamander go to public hearing. Vice Mayor Chris Bernard's Polar Plunge team was among about 280 jumpers.
Public Comment
February 8: no public comment period on the agenda.
February 22 ▶ video
- Lori Olivieri, Lincoln Road, thanked the Town and its staff for the septic conversion project and how it kept residents informed.
Tips & Wags (opinion)
Tip of the Hat to the firefighters from six jurisdictions who kept one building's fire in one building, on a block where a fire could take out the row.
Tip of the Hat to Maria and Pedro Fuentes, for 30 years of sandwiches and a deli that felt like Middleburg's kitchen.
Wag of the Finger to the drivers who ignored traffic directions during a downtown fire, and to the bus that hit an officer.
Coming Up
- March 5: Virginia presidential primary, voting at Town Hall.
- March 14: public hearing on the real estate tax rate; budget discussion.
- March 18: Volunteer Appreciation Reception.
- March 23: Wellness Fair at the Community Center.
- April 2–3: Council strategic planning retreat in Culpeper.
- April 27: Arbor Day. May 11: Art in the Burg.
Sources: the meeting videos (February 8, February 22), the Town's minutes (pending approval) and the transcripts attached to them. Quotes come from the Town contractor's transcripts; each ▶ link opens the video at the start of that agenda item.
Other sources cited:
- Loudoun Now, February 2024: "Semmes Returns to Middleburg"