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Preliminary Look Casts Tax Revenue Declines Near ‘Worst Case’ Levels

The City of Falls Church’s Chief Financial Officer Kiran Bawa reported to the F.C. City Council at its meeting Monday night that data on revenues from sales, food and transient taxes since the onset of the response to the Covid-19 pandemic has been on a sharper decline than predicted.

Whereas, the City chose to adopt a model of a more measured drop in revenue in these and other categories for its planning purposes going forward, Bawa reported that sales tax revenues were down 25 percent in March and April, meals taxes were down 65 percent in April and transient taxes were down 90 percent, touching “worst case” projections for the period.

City Manager Wyatt Shields also noted that funds set aside for emergency rental and food assistance will cover only the next few weeks and will run out as of July 1.

The City’s remaining $1 million portion of federal CARES Act funds will be appropriated by the City following the observance of trends in July and August, Shields said.

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