An allegation contained in a memorandum from the City of Falls Church’s appointed citizens Long Range Financial Planning Group (LRPG) suggesting the City’s current budget may violate state and local laws having been adopted as, technically, a “deficit budget” is being reviewed by F.C. City Attorney John Foster, the News-Press was told by City Hall officials today.
The charge pertains to the City’s two annual real estate tax billings, due June 5 and December 5 of each year. While last June’s tax collection was used to overcome shortfalls in the Fiscal Year 2010 budget year ending last June 30, it left the current fiscal year budget with a deficit of $1.4 million by Sept. 24, according to a memo from City Manager Wyatt Shields to the City Council of that date. By failing to increase the current fiscal year tax rate last fall to overcome the shortfall before this month’s semiannual tax collection, the LRPG memo states, the City effectively acted to perpetuate the deficit.