Falls Church Budget Includes 1.5 Cent Real Estate Tax Hike

FALLS CHURCH, VA -- The Falls Church City Council approved a $87.4 million budget for fiscal year 2018 on Monday, April 24. The budget includes a 1.5 cent real estate tax hike.

The real estate tax for fiscal year 2018 increased from $1.315 to $1.33 for every $100 of assessed value. The city anticipates the tax increase will collect $600,000. The money will go to capital reserves for the future George Mason High School project.

The city has identified capital reserves as a way to lower the burden of the future high school project on taxpayers. The school board is conducting a feasibility study to provide updated estimates for the project. The city already has $9.9 million set aside from the 2014 sale of the water utility system.

The Falls Church News-Press reported that council members have been split on the reserve fund issue for weeks. The city had originally proposed a 3-cent tax increase, but cutting it in half allowed more members to get on board. The council voted 4-3 for the budget.

The council also approved a 1 percent hotel tax to 8 percent. The city expects to generate $60,000 in revenue that will go toward business district improvements.

The general operating budget of $44.3 million grew 1.1 percent from the current fiscal year. A major contributor was a 49 percent increase in the city’s contribution to the Washington Metropolitan Area Transit Authority.

The city also approved the Capital Improvement Plan for 2018-2022, which includes the following projects:

• Library renovation and expansion ($1.1 million funded in FY2018 and $7.4 million funded in FY2019)
• Mount Daniel Elementary School project ($1 million of additional funding in FY2018)
• Larry Graves Park turf project ($1.1 million funded in FY2018);
• Public safety firearms range project in partnership with the City of Fairfax ($1.2 million funded in FY2018)
• Voting equipment ($250,000 funded in FY2018)
• Fire Station 6 improvements ($200,000 funded in FY2018 and $223,000 funded in FY2019)
• City vehicles and public works equipment ($260,000 funded in FY2018)

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