Mayor Hardi Optimistic as City Council Approves 2025 Budget

In a City Hall public meeting May 13, chaired by Mayor Letty Hardi, the Falls Church City Council voted 6-1 to approve next year's city budget. In part because of concerns over how the city's real estate tax cut proposals affect revenue-sharing and budgeting with the School Board, Council member Marybeth Connelly provided the Council's sole vote against the bill. Mayor Hardi, however, expressed enthusiastic approval for a $137.8 million budget she said will "do a lot of good for the city."
Much of the wrangling over the budget required balancing considerations between the city's recent revenue windfalls, high inflation rates increasing home valuations – and therefore real estate taxes – and how long-term budgeted items might be affected by proposed tax cuts that might draw down city revenues over time or affect how the School Board might weigh possible budget cuts.
Tax Cuts with a Large Growth in Expenditures
According to a press release from the City's Office of Communications, the 2025 budget will provide "for a 7 percent growth for General Government expenditures and local funding for City schools," while it will reduce "the real estate tax rate by two cents from $1.23 to $1.21 per $100 of assessed value," while the "median homeowner’s real estate tax bill will increase by $174 or 1.5 percent with the rising assessed value of homes in the City due to market appreciation."
"The budget addresses the City Council’s recently adopted Strategic Priorities with investments in people, infrastructure, and process improvements," the press release continued. "These investments will strengthen the City’s foundations to support the growth that is underway in the City."
Examples include:
- Competitive pay for the City workforce
- Enhancing public safety including three new police officer positions and two additional 911 emergency communications technicians
- Expanding street paving, new sidewalks, and neighborhood traffic calming initiatives
- Adding three project managers to deliver transportation, facility, and sewer projects in the Capital Improvements Program (CIP).
- Investing in technology and processes to make it easier to access government services
- $500,000 to the Affordable Housing Fund
- Adding additional Library hours during the weekend
It's All About Balance
"This year's budget balances the key priorities we have heard from the community on education, environment, housing, transportation, and good governance while simultaneously investing in the City's workforce and fiscal responsibility with a two-penny tax rate reduction," said Mayor Letty Hardi in a press release. "As the City grows, these investments in our future will pay dividends for our community."
"Budgets are all about balance," Mayor Hardy said, as she wrapped up consideration of the budget before the final vote. "You’ve heard all the comments about all the good things we're doing, between having parity and having very generous salary increases in general government and in the schools, extra project management resources to deliver all the projects our community expects, [and] the environment — I mean if it were up to me, we would do a lot more on sidewalks, but, we’re [still] doing a lot for sidewalks — But what we have not mentioned is that we’re increasing by three-times the [city's] contribution to affordable housing. And that’s sizable as well. So we’re doing lots of good things. And I really appreciate that this budget does good while balancing a lot of [our] priorities and investing in the future while being responsive to community needs."
While Hardi acknowledged that she doesn't always "see eye-to-eye" on issues with Council member Dave Snyder, she offered that the two of them "share the philosophy that, at the end of the day, budgets are about making sure we're using tax-payer dollars wisely."
A City Flush with Cash
Given massive revenue increases in The City of Falls Church over the last year, the majority of Council members supported cutting city residents' real estate taxes by an even larger amount than earlier envisioned – up from 1 cent proposed to 2 cents per $100 of assessed value. "We are very, very fortunate in Falls Church," Hardi said. "And it's not lost on me that Falls Church and Loudoun [County] are the only two jurisdictions in northern Virginia with revenue growth, and hopefully we are the only two jurisdictions to be able to offer tax cuts. And an 8 percent revenue growth year is remarkable in this environment. But, at the same time, 8 percent revenue doesn't mean we should spend all of it. After taking care of core needs, I do think we have to take care of the rising cost of living and the burden on our taxpayers. So, that's been a core part of my philosophy in terms of fiscal responsibility in my eight years on Council."
Grumbles from School Board Reps
Following the appearance at the meeting of disgruntled School Board members protesting the compressed timetable for considering how the increased real estate tax cuts might affect revenue sharing and budgeting for the school system, Mayor Hardi acknowledged room for improvement in the budgetary process. "I very much appreciate and value the good relationships we have with the schools. So, from a process perspective, I think you're hearing we're open to improving it. And when we provided guidance in December, which was 5 months ago, that was not early enough in the process to talk about how serious we are at looking at options.... But, again, I'm certainly open to improving the communication and the relationship."
The Mayor's Summary
After offering "many thanks to the staff and to the Council for all their hard work," Hardi concluded: "Overall, I do think this budget does a lot of good while balancing the needs of the community, the needs for the future, as well as adjusting to the rising costs of living and the tax burden for our community."
The Capital Improvements Program (CIP)
Following is from a press release from the city's Office of Communications:
The Capital Improvements Program (CIP) provides a six-year plan for investment in City schools, parks and fields, library, government facilities, transportation, sewer, and stormwater infrastructure. The six-year CIP totals $190 million and provides funding for transportation ($82 million), facilities, public safety, information technology, parks ($57 million), sanitary sewer ($37 million), and stormwater improvements ($14 million).
The CIP relies on $63 million in federal and state grants and the responsible use of $19.5 million in Capital Reserves over the next six years to create long-term value for the City’s taxpayers. No new taxpayer-supported debt is anticipated until FY2028. Debt service will decrease 3.4 percent in FY2025 due to normal amortization of outstanding debt. Debt issuance is planned only for the Sanitary Sewer Utility Fund in FY2025.
To keep up with inflation cost increases, the sanitary sewer and stormwater fees will increase by 3.6%. The Sanitary Sewer rate increase to $10.48 per 1,000 gallons equates to a $15 per year for the average household, and the stormwater fee increase equates to a $10 per year increase for the average homeowner.
The adopted FY2025 Budget will go into effect on July 1, 2024.
All budget materials are available on the City website: www.fallschurchva.gov/Budget.
Following is from the City government's "Budget and Capital Projects" page on the website at https://fallschurchva.gov/1501/Budget-Capital-Projects which includes a calendar of upcoming hearings:
Budget & Capital Projects
Proposed FY2025 Budget and CIP
Adopted FY2024 Budget and CIP
Quick Links
- Find all meeting videos and materials here.
- The full meeting schedule is posted further down on this webpage.
- See previous adopted budgets here
- See previous real estate tax rates here
Fiscal Year 2025 Budget Development Schedule
All meetings and events are available in-person and online. There is no public comment during meetings labeled as Work Sessions.
Watch online live or later (fallschurchva.gov/CouncilMeetings or youtube.com/c/cityoffallschurchgovernment) or live on FCCTV (Cox channel 11, RCN channel 2, Verizon channel 35).
Council Chambers and the Dogwood Room are located in City Hall (300 Park Ave.).
Date, Time, and Location |
Meeting and Topic |
Monday, April 1 7:30 p.m. Dogwood A and B and Online |
City Council Work Session Presentation of the City Manager's Proposed Budget. |
Thursday, April 4 7 p.m. Council Chambers and Online |
Town Hall Meeting #1 Public comment opportunity. |
Monday, April 8 7:30 p.m. Council Chambers and Online |
City Council Meeting First Reading of Budget, CIP, Tax Rate Ordinances. Public comment opportunity. |
Monday, April 15 7:30 p.m. Dogwood A and B and Online |
City Council Work Session Budget Aspects of Public Safety, City Process Improvements, Affordable Housing |
Wednesday, April 24 Noon Council Chambers and Online |
Town Hall Meeting #2 Public comment opportunity. |
Monday, April 29 7:30 p.m. Council Chambers and Online |
City Council Meeting Public Hearing |
Monday, May 6 7:30 p.m. Dogwood A and B and Online |
City Council Work Session Budget Mark Up |
Monday, May 13 7:30 p.m. Council Chambers and Online |
City Council Meeting Public Hearing, Second Reading of Ordinances, and Anticipated Adoption. Public comment opportunity. |
About the Budget Process
The City Council approves a budget each year to fully serve its 16,000 residents and nationally recognized school system. The City's fiscal year begins July 1 and ends June 30; for example, FY2025 begins on July 1, 2024 and ends June 30, 2025.
The City Manager typically presents the proposed budget in late March or early April. After a number of public hearings, town hall meetings, and work sessions, the City Council typically adopts the budget in late April or early May. A calendar of meeting dates, public hearings, and town halls is available here.
Member discussion