RD320 - Annual Report on Proffered Cash Payments and Expenditures by Virginia's Counties, Cities and Towns


Executive Summary:
This document fulfills the requirements of Section 15.2-2302.2 of the Code of Virginia that direct the Commission on Local Government to collect and report annually on local government revenues and expenditures resulting from the acceptance of voluntarily proffered cash payments.

Cash proffers are a form of conditional zoning in Virginia. Conditional zoning involves "proffered" conditions voluntarily offered by a developer of property owner that limit or qualify how the property subject to the conditions will be used or developed. These conditions are in addition to the general, uniform regulations otherwise applicable to land within the same zoning district, and they are made to lessen the potential some of the potentially negative consequences of proposed zoning changes.

During FY 2006, 256 Virginia localities (81 counties, 34 cities, and 141 towns) meeting specific criteria were eligible to accept cash proffers.

The Commission's survey of eligible localities found that only 42 (29.8%) of the eligible localities (28 counties, 8 cities, and 6 towns) reported cash proffer activity during FY2006. This represented an increase of 10.5% in the number of local governments accepting cash proffers over FY 2005. During the current period, the aggregate amount of cash proffers collected and expended by those jurisdictions was $67,302,128 and $67,684,130, respectively. The survey also revealed that the largest share of cash proffer revenue expended in FY 2006 went for roads and other transportation improvements (35.3% of total expenditures) and schools (31.2% of total expenditures).