2-cent Cut, But Schools Were Left Out of Conversation
The Falls Church City Council Monday approved a $137.8 million operating budget for the fiscal year beginning July 1, setting a real estate tax rate with a two cent reduction, making Falls Church the only N.Va. jurisdiction east of Loudoun County to lower, not raise, that tax this year.
The Council vote was 6-1, with veteran member Marybeth Connelly voting no on the grounds that the final version adopting a two cent, rather than one cent, tax reduction unfairly abused the “revenue sharing” agreement the Council has had with the F.C. School Board the last four years.
The Council also approved the FY 2025 budget and capital improvements program (CIP) at its Monday meeting. The budget provides for a seven percent growth for the general government expenditures and local funding for City schools.
The approved budget reduces the real estate from $1.23 to $1.21 per $100 of assessed value. Thus, the median homeowner’s real estate tax bill will increase by $174 or 1.5 percent, with market appreciation increasing the assessed value of homes in the City. This increase compares to the $450 increase voted by our larger neighbors, Fairfax and Arlington counties, earlier this month.
The approved budget addresses recently adopted Strategic Priorities, with investments in people, infrastructure, and process improvements. According to a City statement, “These investments will strengthen the City’s foundations to support the growth that is underway in the City.”
One of the biggest boosts to the budget came from the negotiated deal between Democrats in control of the Virginia legislature and Governor Glenn Youngkin (R-VA) this week that, based on higher than expected revenues to the state, halved the burden on the City for its obligation to the WMATA Metrorail system from $2 to $1 million. The City’s share was expected to be taken from the Northern Virginia Transportation Fund, but now the $1 million portion stays in its operating budget.
There was little left to doubt about the School Board’s displeasure with having to find $280,000 to cut from the budget at the last minute to accommodate the additional cut.
A delegation from the Schools attended the Monday Council meeting, led by vice chair Kathleen Tysse, who was flanked by Superintendent Dr. Peter Noonan and fellow board members Lori Silverman and Jerrod Anderson as she spoke, echoing remarks by councilmember Connelly expressing concern that the Schools were not properly included in last-minute budget cut discussion, instead having to find $283,000 to cut from a budget it had already voted to approve Tuesday night.
The Council will hold a joint work session this Monday at City Hall with members of the City’s Housing Commission, Planning Commission and Public Utilities Commission. The Council now awaits the data on what funds might be available for deployment as one-time expenditures from surpluses in the current fiscal year budget.
On Monday F.C. Mayor Letty Hardi spoke to this year’s budget being “very strong and dynamic” in keeping with a “growing city.”
Elements include competitive pay for the City workforce at six percent growth, 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 and 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 2-penny tax rate reduction,” said Mayor 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 budget 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.
Tuesday night, the day after the Council approved its budget, the F.C. School Board unanimously approved its final 2024-2025 school year budget, based on plans expressed by Superintendent Noonan for how to absorb the last minute $283,000 in cuts. The budget, he said, “confirms the board’s commitment to addressing the needs of a growing student population and maintaining high standards of educational excellence.”
The approved School budget incorporates the proposed enhancements, including adding five new elementary teachers, two half-time paraprofessionals, and a new teacher for the secondary campus, preparing FCCPS for an anticipated enrollment increase. Additionally, the budget introduces a new position for an Elementary Reading Specialist, underscoring the district’s focus on strengthening literacy and foundational learning skills.
The approved School budget supports a comprehensive compensation plan for FCCPS staff. The plan includes a step increase for employees and a 3.5 percent cost of living adjustment (COLA), resulting in an average pay increase of 6 percent. The budget also provides a new retirement contribution match for employees up to one percent of their salary.
Introducing an additional elementary reading specialist is a clear example of FCCPS’s proactive approach, Dr. Noonan said. “The School Board and FCCPS remain committed to fostering an environment where students and staff thrive.”
School Board Chair Tate Gould also reflected on the process and the outcome. “This budget represents a milestone in our collective mission to elevate educational outcomes in our district. It’s a product of thoughtful deliberation and community engagement, designed to ensure that every student in our district has the tools they need for success. We are grateful for the community’s input, which has been instrumental in shaping this comprehensive educational plan,” Dr. Gould remarked.
