With Hefty Adds to Meet Growth Needs

A $138.3 million annual budget for City operations and the school system for the coming fiscal year (FY2025) beginning July 1 was recommended to the Falls Church City Council by City Manager Wyatt Shields at the Council’s work session Monday. The size of the budget proposal includes an overall increase of 7.9 percent in general government expenditures and a 7.6 percent increase in funding for the City’s public schools.

The first public forum presentation of the proposal is scheduled for tonight (Thursday, April 4) at 7:30 p.m. in the Council chambers in City Hall. This marks the first steps in the annual budget approval process that will culminate in mid-May.

The budget proposal that also advances a six-year agenda for capital improvement projects (CIP) includes an ambitious 23 new full time positions, including 14 for the City (six in the police department, three additional project managers, two to accommodate the recent reorganization of the City Manager’s office, one in human resources and the remainder conversions to positions that were originally filled with federal American Rescue Act funds, all to accommodate the increased levels of economic activity and population growth), and the rest in the schools.

It proposes for the coming year a single penny reduction in the real estate tax rate to $1.22 per $100 of assessed valuation, and as such would make, if approved, Falls Church the only jurisdiction in the region to accomplish a rate cut this budget cycle. What this means for homeowners in Falls Church is an increase in net tax bills by an average of $271 for the year, or a 2.4 percent increase, due to rising assessed values on homes generated by market factors.

The overall increase in the size of the Falls Church budget includes six percent merit and cost of living increases for City staff, including police personnel, which corresponds to the pay increases proposed for school personnel in the Falls Church City Public Schools’ (FCCPS) portion of the budget as voted by the School Board last month and incorporated as required by law into Shields’ proposal presented Monday.
Shields said Monday his proposed budget includes “provisions for spending and investment in people, processes, infrastructure and strategic initiatives to support a growing community. It strengthens our foundations to support a growing city. It addresses the City Council’s recently adopted Strategic Priorities through investment in people, infrastructure, and process improvements.”

FCCPS Superintendent Dr. Peter Noonan, who along with School Board chair Tate Gould, briefed the City Council on the Schools’ share of the budget, said in his monthly letter to parents, “ The School Board adopted a budget that funds key FCCPS initiatives that are part of our five-year Strategic Plan. The budget is in the hands of the City Manager who will present it as part of his proposed budget to City Council on April 1. I know the Board members are looking forward to working with Council members to finish the process. The revenue sharing agreement that’s been guiding our budget planning for the past six years makes this a smooth and collegial process.”

Noonan told the Council Monday that as this marks the sixth consecutive year that schools have proposed a budget that comes within the guidance that the Council laid out in December, it has been made possible largely due to the revenue sharing deal that has taken a lot of the drama out of the annual budget process. In the past lack of such an agreement involved almost guaranteed tugs of war between the City side and school budget requests that were frequently resolved in tension-filled last minute compromises.

Of course, the fact that the City has been awash in new revenues related to its booming economic development also has helped ease things up.

New initiatives in the proposed budget stem from the opportunities and challenges that come with growth, Shields said Examples he cited included funds for enhancements to public safety, growth of the Affordable Housing Fund, neighborhood traffic calming, new sidewalks, technology for improved processes, and opening the Mary Riley Styles Public Library for two additional weekend hours.

The six-year Capital Improvements Program (CIP) portion of the proposal provides for investment in City schools, parks and fields, library, government facilities, transportation, sewer, and stormwater infrastructure. The six-year CIP totals $191 million, and provides funding for transportation ($83 million), facilities and parks ($57 million), sanitary sewer ($37 million), and stormwater improvements ($14 million).
Shields explained that the CIP relies heavily on federal and state grants and proposes the responsible use of $20 million in the City’s capital reserves over the next six years, aimed at “creating long term value for the City’s taxpayers,” he said.. No new taxpayer-supported debt is anticipated until FY2028.

Debt service obligations will actually decrease 3.4 percent in FY2025 due to normal amortization of outstanding debt. Debt issuance is planned only for the Sanitary Sewer Utility Fund in FY2025.

After tonight’s town hall on the budget, a second will be held at noon on Wednesday, April 20, also at City Hall. The town halls are open to the public both in-person and virtually (via the City’s website).
Public comment is welcomed at the City Council ’s regular meetings, including April 8, April 29, and May 13. The City Council’s work sessions do not allow for public comment but are open to the public: April 1, April 15, and May 6.

Public comments and questions may be sent via email to cityclerk@fallschurchva.gov.

The Council’s strategic priorities addressed in the proposed budget include environmental sustainability, transportation, economic development, housing and good governance, and the budget plan comes as new construction is booming with 550,000 square feet of new commercial development, including a new office building, a new hotel, two new grocery stores and two new theaters, and 1,585 housing units are under construction, amounting to a 22 percent growth in the city’s housing stock and anticipating a 13 percent growth in projected population by the end of the decade.

Currently the City manages 41 capital projects totaling $62 million, and over the next six years will manage 43 capital projects totaling $191 million.

The breakdown of the projected budget includes $51,419,818 for general government (a 7.9 percent growth), $52,958,920 for the schools (a 7.6 percent growth), $500,000 for affordable housing (a 316 percent growth) and $2,571,856 for the WMATA public transport system (a 64 percent increase).

While the real estate rate is proposed to decline by a penny, there are no changes the personal property or other taxes and a 3.6 percent rate increase in utility fees that are routinely born by developers.