News

20% Fund Balance Reserve Policy Approved

In the contest of the City of Falls Church’s decision to incur considerable new debt to pay for construction of a new high school and the renovation and expansion of its City Hall and Mary Riley Styles Public Library and more, the Falls Church City Council Monday night voted in unanimous agreement with the recommendation of its Davenport consultants to shift its fund balance reserve policy from a range of 12 to 17 percent of an annual operating budget to 15 to 20 percent. The move will better insulate the City from the impact of its borrowing for the work and will appease the concerns of the City’s New York bond rating agencies.

City Manager Wyatt Shields said the shift will not require any tax rate increase, in itself.