Tax rates on real estate and meals won’t increase, but the car tax rate might, as Falls Church City Council members work to finalize a $134.3 million budget package.
Council members voted 7-0 Monday night (April 13) to advertise a real estate tax rate of $1.185 per $100 assessed valuation, unchanged from the current rate. That becomes the highest rate that could be adopted when the budget package comes to a final vote on May 11, although a lower rate could be set.
If the rate holds steady, Falls Church homeowners will still pay an average $611 more in the coming fiscal year owing to rising home assessments.
A Council majority also rejected a proposal by two members to consider increasing the meals tax, currently 4%, to bring in more revenue or offset increases elsewhere.
Proposals by Arthur Agin to consider increasing the rate to 4.25%, and from David Snyder to consider a 4.2% rate, did not draw further support among their colleagues.
Agin, who has pushed the idea for the past month, said advertising a higher rate gave Council members flexibility during the final stages of budget deliberation.
“I really don’t want to raise the meals tax, but I want to keep the option open,” he said Monday night.
Snyder argued that since those living outside the city pay the meals tax when eating in Falls Church, it would help reduce the overall tax burden on city residents.
Council members Justine Underhill and Erin Flynn were among those saying the time wasn’t right to increase that tax.
“There’s a hefty surcharge as it is,” said Flynn, noting the meals tax was imposed on top of the 6% sales tax both at restaurants and for prepared meals at retail outlets like supermarkets and convenience stores.
Underhill said there already were tensions between the restaurant community and city government, and she didn’t want to inflame them.
Mayor Letty Hardi was critical of advertising higher tax rates in general, calling it “unconscionable and irresponsible” given projections that the city’s income will be up 7% in the coming year with tax rates left unchanged.
“I don’t think we have a revenue issue,” said Hardi.
Others on the dais said there should be consideration of increasing some taxes and decreasing others to fit specific circumstances in a difficult budget year.
“There’s only so much money,” Council member Laura Downs said.
Hardi said her preference would be to lower the tax rate a half-cent, but she was OK with advertising no change to the existing rate.
Council members did vote to advertise a potential increase in the personal property tax on vehicles from $4.80 per $100 value to $5 per $100. If enacted, that 20-cent increase could bring in an additional $340,000.
The extra revenue likely would go to support the city’s road-paving operations. Left undetermined is whether half the increase would be given to the Falls Church school system as part of a revenue-sharing agreement.
Under the budget proposal, a typical Falls Church homeowner also would pay $12 more for city trash service; $23 more in a stormwater fee; and $27 more for sewer service.
The first public hearing on the budget plan will be held April 27. A second hearing and adoption are slated for May 11.
The fiscal year 2027 budget will go into effect July 1.
City manager’s resignation moves forward: Council members on April 13 formally accepted the resignation of City Manager Wyatt Shields.
Shields, who has led the city government since 2007, announced last month that he would retire in early September. Accepting the resignation was a procedural step that will allow the search process for a new city manager to begin.
“We do have to accept his retirement, even if we don’t want to,” Mayor Letty Hardi said.
Shields is the longest serving local-government chief executive in the immediate area.
“We really are grateful, and the community is grateful, for your steady hand,” Hardi said.
New website makes debut: City officials on April 13 touted an updated government website.
“We invited everybody to come and take a look if you haven’t already,” City Manager Wyatt Shields said.
Shields said the goal of the revamp was to increase “speed, clarity and ease of use” while improving search functionality.
“Our intention is to really give the city a world-class digital front door that’s welcoming for people to learn what they need to know,” he said.
