The City of Falls Church and Fairfax Water Office issued a joint press release this afternoon reporting a settlement in their case in Fairfax County Circuit Court.

The release is as follows:

The City of Falls Church and Fairfax Water have successfully resolved the matters pending in Fairfax County Circuit Court. The consent decree is beneficial for all residents and businesses in the City of Falls Church and Fairfax County.

In the decree, neither party admits liability and both Fairfax Water and the City of Falls Church will have the opportunity to provide water service in the portions of Fairfax County currently served by the City. In addition, the City has agreed to pay Fairfax Water $750,000 to settle claims, fees and damages, which will be covered by the City’s liability insurance.

Both entities welcome the conclusion of this case so that they can resume focus on the business of best serving the public. The City will continue its appeal of Count V, the Fairfax County Circuit Court’s Final Decree of Jan. 6, 2010, which prohibited the City from transferring water fund surpluses to the City’s general fund.