Falls Church Proposes 6% Larger Budget, Reduction In Property Tax Rate

FALLS CHURCH, VA — The City of Falls Church’s proposed budget for fiscal year 2023 calls for a reduction in the real estate tax rate in response to rising property assessments in the city.

Under the budget proposal, unveiled Monday, the real estate tax rate for the new fiscal year would drop by 8.5 cents to $1.235 per $100 of assessed value, down from $1.320 per $100 of assessed value.

The budget proposal will still likely mean higher tax bills for most Falls Church property owners. Assessed residential property values increased by 13.7 percent over the previous year, while assessed commercial property value increased by 5.7 percent year over year.

This year, the average property tax bill is expected to increase by $635, or 6 percent, if the proposed budget is adopted, according to the city.

The 2023 fiscal budget, proposed by Falls Church City Manager Wyatt Shields, totals $112.6 million, which provides for a 6 percent, or $2,451,107, increase in general government operating expenditures and a 6.3 percent, or $2,750,000, increase in local funding for public schools.

Shields was joined at Monday's City Council meeting for the budget presentation by City of Falls Church School Board Chair Laura Downs and schools Superintendent Peter Noonan.

“This budget proposal is intended to strengthen the core government and education services at the high level residents expect, while at the same time ensure that we manage well the transformative capital projects and new development currently underway,” Shields said.

The City Council is expected to adopt a final budget on May 2. The 2023 fiscal year runs from July 1 through June 30, 2023.

This proposed budget includes the use of $4.03 million in capital reserves toward debt service, which is part of the plan of finance for the new high school that was presented to voters during a bond referendum in 2017.

READ ALSO: Real Estate Assessments Up 11.4% For Falls Church Property Owners

The budget proposal includes an appropriation of $3,789,331 of American Rescue Plan Act, or ARPA, funds: almost $1.4 million for assistance to small businesses, households and schools, and $2.4 million in the Capital Improvements Program for sidewalks and HVAC replacement at the Falls Church Community Center.

In 2021, the City Council approved $7 million in ARPA funds to be used for six major flood mitigation projects recommended by the city’s Stormwater Task Force.

The budget proposes a new commercial and industrial tax of 5 cents per $100 of assessed value on commercial properties, excluding multifamily properties, which by law can be used exclusively to fund transportation improvements.

Most counties and cities in Northern Virginia have adopted a commercial and industrial tax of 12.5 cents in recent years to help pay for transit and road expansions, the city said. Falls Church proposes to use the revenue to pay for its share of Washington Metropolitan Area Transit Authority capital costs, bike share program, and other transportation needs.

The complete text and charts included in the proposed budget can be viewed on the city's website and at the Mary Riley Styles Public Library. The city will hold two virtual town hall meetings on the budget: Thursday, March 31 at noon and Thursday, April 21 at 7 p.m.

Public comment is open at the City Council’s regular meetings, including April 11, April 25, and May 2. The City Council’s work sessions do not allow for public comment, but the sessions on April 4 and April 18 are open to the public.

Public comments and questions on the budget proposal can be sent by email to cityclerk@fallschurchva.gov.

Here's the City of Falls Church's budget meeting schedule:

• Thursday, March 31 at noon town hall meeting online; find link at www.fallschurchva.gov/Budget. Public comment opportunity.
• Monday, April 4 at 7:30 p.m. City Council work session online; find link at www.fallschurchva.gov/CouncilMeetings.
• Monday, April 11 at 7:30 p.m. City Council regular meeting: first reading of budget ordinance and tax rate ordinance at City Hall and online; find link at www.fallschurchva.gov/CouncilMeetings. Public comment opportunity.
• Monday, April 18 at 7:30 p.m. City Council work session online; find link at www.fallschurchva.gov/CouncilMeetings.
• Thursday, April 21 at 7 p.m. Town hall meeting online; find link at www.fallschurchva.gov/Budget. Public comment opportunity.
• Monday, April 25 at 7:30 p.m. City Council regular meeting: Second reading of budget ordinance and tax Rate ordinance at City Hall and online; find link at www.fallschurchva.gov/CouncilMeetings. Public comment opportunity.
• Monday, May 2 at 7:30 p.m. City Council regular meeting: Adoption of FY2020 Operating Budget and CIP City Hall and online; find link at www.fallschurchva.gov/CouncilMeetings. Public comment opportunity.