2021 Falls Church Budget Proposal Factors In New Revenue Estimate

FALLS CHURCH, VA — Falls Church City Manager Wyatt Shields presented a revised budget proposal for fiscal year 2021 on Monday night. The $97.9 million in proposed expenditures represents a 1.4 percent decrease from the current fiscal year 2020 budget. Like the original March 9 proposal, the revised proposal maintains the current real estate tax rate of $1.355 per $100 of assessed value.

"The proposal that I am submitting to you today is streamlined substantially from the original FY2021 proposed budget presented to Council on March 9," wrote Shields in a letter to City Council and residents. "It keeps the core services of the General Government and Schools stable, and funds the mandatory obligations to the Washington Metropolitan Area Transit Authority (WMATA) and other inter-jurisdictional contracts."

The budget proposal accounts for $1.36 million less in projected revenue than fiscal year 2020. Anticipated declines are expected from the personal property tax; sales tax; meals tax; business, professional and occupational license tax, transient occupancy tax, charges for recreation programs and interest income on city investments.

Shields said the revised budget included $2.4 million in government spending cuts due to revenue shortfalls and $1 million in mandatory increases. The proposal reduces the transfer to Falls Church City Public Schools by $500,000 from fiscal year 2020. Other changes include freezing general government vacancies, withdrawing new positions, eliminating compensation increases, cutting travel and training for six months, cutting funding for multiple pay-as-you-go capital projects and other spending reductions across all city departments.

Debt service would increase by $1.9 million due to the issuance of bonds in fiscal year 2020 to finance the new George Mason High School project, Mary Riley Styles Public Library renovation and expansion, and acquisition of the Fellows Property. The proposed $4.64 million in capital reserves to use toward debt service remains the same.

Funds from the federal CARES Act are not included in the budget proposal, as the local distribution of the $3.5 billion to Virginia has not yet been announced.

A public hearing on the budget and tax rate will be held on May 11, and final approval is slated for May 26. The city's fiscal years 2021-2026 capital improvement plan budget will be presented in May pending the result of state legislation for additional transportation funding.

More information on the revised budget proposal is available on the city's budget website. Public comments can be submitted to cityclerk@fallschurchva.gov.