Tuesday, May 14, 2024 — The Falls Church City Council approved the Fiscal Year 2025 Budget and Capital Improvements Program (CIP) at last night’s meeting. The FY2025 General Fund budget, inclusive of Schools and General Government, totals $137.8 million. The budget provides for a 7 percent growth for the General Government expenditures and local funding for City schools.
The approved budget reduces the real estate tax rate by two cents from $1.23 to $1.21 per $100 of assessed value. The median homeowner’s real estate tax bill will increase by $174 or 1.5 percent with the rising assessed value of homes in the City due to market appreciation.
The budget addresses the City Council’s recently adopted Strategic Priorities with investments in people, infrastructure, and process improvements. These investments will strengthen the City’s foundations to support the growth that is underway in the City.
Examples include:
- Competitive pay for the City workforce
- Enhancing public safety including three new police officer positions and two additional 911 emergency communications technicians
- Expanding street paving, new sidewalks, and neighborhood traffic calming initiatives
- Adding three project managers to deliver transportation, facility, and sewer projects in the CIP.
- Investing in technology and processes to make it easier to access government services
- $500,000 to the Affordable Housing Fund
- Adding additional Library hours during the weekend
“This year’s budget balances the key priorities we have heard from the community on education, environment, housing, transportation, and good governance while simultaneously investing in the City’s workforce and fiscal responsibility with a two-penny tax rate reduction,” said Mayor Letty Hardi. “As the City grows, these investments in our future will pay dividends for our community. I thank everyone who participated in the budget process this year. Community input during meetings, town halls, and office hours, as well as collaborating with our School Board and Boards and Commissions partners, are important parts of the process.”
The CIP provides a six-year plan for investment in City schools, parks and fields, library, government facilities, transportation, sewer, and stormwater infrastructure. The six-year CIP totals $190 million and provides funding for transportation ($82 million), facilities, public safety, information technology, parks ($57 million), sanitary sewer ($37 million), and stormwater improvements ($14 million).
The CIP relies on $63 million in federal and state grants and the responsible use of $19.5 million in Capital Reserves over the next six years to create long-term value for the City’s taxpayers. No new taxpayer-supported debt is anticipated until FY2028. Debt service will 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.
To keep up with inflation cost increases, the sanitary sewer and stormwater fees will increase by 3.6 percent. The Sanitary Sewer rate increase to $10.48 per 1,000 gallons equates to a $15 per year for the average household, and the stormwater fee increase equates to a $10 per year increase for the average homeowner.
The adopted FY2025 Budget will go into effect on July 1, 2024.
All budget materials are available on the City website: www.fallschurchva.gov/Budget.
