On the boundary dispute portion of the legal conflict between the City of Falls Church and the Fairfax County Water Authority, an out-of-court settlement was announced today that permits both Falls Church and Fairfas Water to provide water services in areas of Fairfax County the City’s water system has historically served.
The agreement is pending an approval by the Fairfax Circuit Court and includes an agreement that Falls Church will pay Fairfax $750,000 to settle all claims, fees and damages in this portion of the dispute between the two entities. According to Falls Church officials, that amount will be covered by the City’s liability insurance.
In a joint press release issued this morning, it was stated, “Both entities welcome the conclusion of this issue so that they can resume focus on the business of best serving the public.”
The settlement does not address the City’s appeal of the Fairfax Court’s ruling prohibiting the City from taking a “return on investment” from its water fund.