Monday, March 24, 2025 — During tonight’s City Council meeting, Falls Church City Manager Wyatt Shields proposed a Fiscal Year 2026 (FY2026) budget and six-year Capital Improvements Program (CIP). The City Manager was joined by School Board Chair Tate Gould and Superintendent Peter Noonan in the budget presentation to the City Council.

The General Government operating budget (not including debt service) for FY2026 provides for operating expenditures of $57,706,605 — an increase of 6.5 percent over FY2025. The FY2026 transfer to schools from general tax revenues is $55.6 million — an increase of 5.6 percent over the FY2025 transfer. The total School Division operating budget including state and federal revenues is $69,546 — a 7.1 percent increase over the FY2025 budget. 

Due to decreasing use of capital reserves and decreasing debt service, the overall FY2026 General Fund budget, inclusive of Schools, General Government, and Capital Plan totals $133.9, a 2.8 percent decrease from the FY2025. 

The budget includes a proposal to reduce the real estate tax rate by two and a half cents from $1.21 to $1.185 per $100 of assessed value. With this rate reduction, the median homeowner’s real estate tax bill will increase by $400 —  or 3.4%, owing to rising assessed value of homes due to market appreciation.

“The region is in a challenging economic environment with changes to the federal government. At the same time, the City is growing, which means new revenue and new costs associated with growth. The proposed budget seeks to ‘Sustain Momentum Together’ with investments in people, safety, and core infrastructure. We propose a very short list of new initiatives, namely, more funding for road maintenance, and otherwise seek to sustain programs,” said Shields. 

Putting People First — Highlights from this section of the proposed budget invest in the City’s workforce by funding a 5.0 percent merit increase for civilian employees, a 2.0 percent Cost of Living Adjustment (COLA), and a 3.0 percent step increase for uniformed police officers. The proposed budget also includes a $150,000 investment in City financial systems for more convenient resident access for online payments and building permit processing. The $500,000 in local revenue for the Affordable Housing Fund (AHF) to expand affordable housing options for people who live and work in the City is the same funding amount as last year. The budget also proposes $500,000 in contingency to provide the City with a buffer against revenue declines due to federal government actions. 

Improving Core Infrastructure — The budget sustains progress in updating City infrastructure to meet the needs of a growing population and maintain long-term sustainability and resilience. Highlights include: $2.2 million for road maintenance in the operating budget, an increase of $700,000 over FY2025. This is for street paving, bike lane and crosswalk markings, ADA curb ramps, traffic signal maintenance, sidewalk maintenance, and brick crosswalk maintenance. $59.2 million in transportation projects is proposed in the six-year Capital Improvements Program (CIP) to make streets and intersections more walkable and safe for all users. The CIP provides a six-year plan of $148.2 million for investment in City schools, parks and government facilities, transportation, sewer, and stormwater infrastructure. 

Advancing Safety — The budget sustains the City’s long commitment to promoting safety in all aspects of City life — police, fire, and emergency services, building safety, and safe streets for people on foot, bike, transit, and in cars. This includes $133,000 for replacing body-worn cameras and in-car cameras for all uniformed police and sheriff personnel as well as $200,000 – the same funding level as last year – for Neighborhood Traffic Calming (NTC) solutions in response to resident requests for safety enhancements on neighborhood streets.

The CIP includes federal grants ($12.4 million) and state grants ($23.6 million) and the use of City capital reserves ($9.9 million) over the next six years to create long-term value for the City’s taxpayers. No new taxpayer-supported debt is anticipated until FY2028.

The Council is scheduled to adopt a final budget on May 12, 2025. The 2026 fiscal year runs from July 1, 2025, through June 30, 2026. The complete text and charts included in the proposed budget can be viewed at fallschurchva.gov/Budget and at Mary Riley Styles Public Library (120 N. Virginia Ave.).

There will be two Town Hall meetings on the budget: Thursday, April 3 at noon and Thursday, April 24 at 7:00 p.m. Links are available at fallschurchva.gov/Budget. Both are open to in-person and virtual attendees.

Public comment is open at the City Council ’s regular meetings, including April 14 and April 28. The City Council’s work sessions do not allow for public comment but are open to the public: April 7,  April 21, and May 5. The full budget meeting calendar is available online, fallschurchva.gov/BudgetCalendar. Public comments and questions may be sent via email to cityclerk@fallschurchva.gov.