Falls Church City Manager Wyatt Shields made not one, but two major announcements on back-to-back days this week. The first was his proposed budget for the coming fiscal year that calls for no tax rate change, and the second was the announcement of his plans to retire from his seminal role in the City as of August.
The budget announcement came as little surprise, although concerns expressed by a number of City Council members about the high residential real estate assessments that are included signal that it will be a difficult period between now and when the final budget for the Fiscal Year 2027 (beginning July 1) is adopted.
Shields’ retirement announcement that came on Tuesday, however, was more unexpected. Shields began his career in Falls Church as an assistant city manager to the late Dan McKeever in 2003 and took over, first as interim upon McKeever’s death and then as full city manager in 2007.
In a statement from City Hall, it was noted that “since his appointment, Shields has helped guide the City of Falls Church through a period of significant growth and opportunity. Shields worked to strengthen the City’s financial position, advance major economic development initiatives, invest in critical infrastructure, and maintain a high standard of responsive, community-centered government services.”
Shields added a statement saying, “It has been the honor of my life to serve the City of Falls Church for these past 23 years. I have truly enjoyed the collaboration with our amazing City staff, dedicated community volunteers, and caring and effective City Council,” said Shields. “I am grateful for the trust that has been given to me by this community and proud of what we have been able to accomplish together. The City of Falls Church has a bright future.”
A statement is also included from Falls Church Mayor Letty Hardi, who said, “Wyatt’s leadership has helped shape the City of Falls Church into the vibrant, forward-looking community we are today,” said Mayor Letty Hardi. “He has led with integrity, vision, and a genuine dedication to our community. We are deeply grateful for his service and wish him all the best in his well-earned retirement.”
In his announcement, Shields indicated a retirement date of September 4, 2026. Pursuant to the City Charter, the City Council will lay out a schedule and process for the recruitment and appointment of a new city manager. A further announcement will be made in the coming days regarding that process.
The City Council held a special meeting early yesterday morning to begin planning out how to find a replacement.
The announcement overshadowed Shields’ presentation Monday night of his proposed, Fiscal Year 2027 (FY2027) budget and six-year Capital Improvements Program (CIP). Shields was joined by School Board Chair Kathleen Tysse and Superintendent Terry Dade in the budget presentation to the City Council.
Shields reported that his proposed General Government operating budget (not including debt service) for FY2027 provides for operating expenditures of $59.5 million — an increase of 3.4 percent over FY2026. The FY2027 transfer to schools from general tax revenues is $57.8 million — an increase of 4.1 percent over the FY2026 transfer. The total School Division operating budget, including state and federal revenues, is $71.6 million — a 3.4 percent increase over the FY2026 budget.
Due to decreasing use of capital reserves and decreasing debt service, the overall FY2027 General Fund budget, inclusive of Schools, General Government, and Capital Plan, totals $134.3 million, a 0.8 percent increase relative to FY2026.
The budget proposes no change to the real estate tax rate of $1.185 per $100 of assessed value. The median homeowner’s real estate tax bill will increase by $611 — or 5 percent, owing to the rising assessed value of homes due to market appreciation.
“The proposed budget seeks to provide reliable, responsive, and resilient City services through investment in people and core infrastructure,” said Shields.
The CIP provides a six-year plan for investment in City roadways, schools, parks, and utilities. Transportation projects total $100.6 million, City and School Facilities $7.6 million, Sanitary Sewer $33.5 million, and Stormwater $8.7 million. The CIP is funded with $94.8 million in federal, state, and regional grants, with $90 million of that for transportation projects to improve safety and accessibility on City roadways. There is no new taxpayer-funded debt planned in the CIP until FY2031, when $5 million is planned to replace the roof at the Falls Church Fire Station.
The first of two public town hall sessions to discuss the budget was scheduled for today, March 26, at noon at City Hall.