FALLS CHURCH, Va. — The Falls Church City Council voted unanimously Monday night, 7-0, to advertise a real estate tax rate with no increase for the coming fiscal year, taking a key step forward in the city’s annual budget process.

The vote sets the maximum tax rate that can be adopted when the Council finalizes the budget later this spring. Under Virginia law, once a rate is advertised, the Council may lower it but cannot raise it without re-advertising and reopening the public hearing process.

City officials emphasized that the decision does not lock in a final tax rate, but rather establishes a ceiling as deliberations continue.

The action comes as the Council weighs competing pressures, including rising property assessments, ongoing school funding needs, and broader economic uncertainty.

Falls Church relies heavily on real estate taxes to fund core services, including public safety, infrastructure and schools, which receive a significant share of general fund revenues.

City Manager Wyatt Shields, in earlier budget presentations, has pointed to “headwinds” in the regional economy and softening local tax revenues as factors shaping the current budget outlook.

While the advertised rate would remain unchanged, many homeowners are still expected to see higher overall tax bills due to increases in assessed property values. In recent budget cycles, assessments in Falls Church have risen significantly, driving higher revenues even when the tax rate itself is held steady or reduced.

Council members indicated that advertising a flat rate provides flexibility while maintaining caution in a shifting economic environment.