Blog posts are the personal views of Letty Hardi and not official statements or records on behalf of the Falls Church City Council

Dear Friends,

I hope you’re staying warm. Monday was our last City Council meeting of 2025 (although if you see our calendar, committee meetings and such continue this coming week). This will also be my last post of 2025 — most of this post will cover the annual joint meeting with the School Board, revenue projections and budget guidance we adopted, and the always popular economic development news with new openings. I’d welcome your early input on budget and priorities ahead of the City Council’s planning retreat in the new year.

We celebrated newly elected and outgoing Councilmembers this week, which is always a special night – every two years, we recognize the neighbors we elect to serve this community. In a small city like ours, City Councilmembers aren’t really “politicians” – they’re our neighbors who really care (and can handle late night meetings!) and are dedicated to making our city better. We honored Vice Mayor Debbie Hiscott who is retiring from City Council. She has always shown up with her heart first – strong convictions of doing the right thing, giving voice to who’s not at the table, and problem solving together. If I have a hard thing to do, I want Debbie on my team. I hope you’ll join in our collective thanks for Debbie’s service across the community and across the years.

I wish you a healthy and joyful holiday season.

Best,
Letty

What Happened This Week:

(1) Joint School Board & City Council Meeting

We held our annual School Board and City Council joint meeting and dinner last week. It’s the traditional kick off of budget season – where city staff shares the revenue outlook for the coming year, general government staff shares the cost drivers and risks ahead, school staff shares their cost drivers and actuals and projected student enrollment. And based on that, City Council begins our deliberation and adoption of “guidance” which is meant for staff and the School Board to consider as they develop their budgets.

Economic Outlook and Revenue Proiections

The full presentation is available here, but here are few notable highlights. With upheaval at the federal level that impacts our local economy acutely, accurate revenue projections are harder than ever. The theme is: “uncertainty is the only certainty”. What we do know is that unemployment in Falls Church has grown 50% (now higher than Virginia’s average), residential real estate values are still appreciating because it continues to be a desirable place to live with limited housing supply, and we expect flat commercial revenue growth due to consumer sentiment. This is a slightly better position than our neighbors who are all facing flat or declining revenues.

Overall, we expect tax revenue to grow 2.9%.

Due to rising costs (Metro funding, healthcare benefits for employees, compensation, etc) – staff currently projects a budget gap unless we cut expenses or raise taxes. Over the coming months, we’ll be monitoring revenues and economic indicators closely and the projections will be refined.

Budget Guidance

In light of the above, City Council adopted budget guidance that emphasizes the uncertain economic environment, hardship faced by our residents and businesses, and asked for revenue and expense reduction options in the upcoming budget. And because residential values are expected to appreciate 6% (more than CPI of 3%), budget guidance also notes budget should be developed such that homeowners are protected from significant growth in their annual tax bill.

Budget Schedule – over the next few months, general government staff and the schools will develop their proposed budgets which will be in front of the City Council on March 26. Below are the meetings, work sessions, and town halls scheduled if you’d like to tune in.

(2) Economic development news

A fitting segue from the budget picture above – it’s more important than ever to support our local economy! Local sales and meals taxes are a meaningful part of our local revenues. And with so many options, there’s no need to leave The Little City for your eating and shopping.

Check out the new leases and expected openings at West Falls, Founders Row 1, and Founders Row 2 (aka Modera Falls Church). And the city’s newest grocery store – Grocery Outlet at the former baby Target space – is expected to open February 12.

What’s Coming Up:

Monday, January 5 – City Council Organizational Meeting & Work Session*

Wednesday, January 7 – Ask the Council Office Hours (City Hall, 9 am)

Monday, January 12 – City Council Meeting*

Monday, January 26 – City Council Meeting*

Saturday, January 31 – City Council Planning Retreat (9 am, TBD in city)

*Mondays (except 5th Mondays and holidays) at 7:30 pm. You can access the agenda and livestream here, including recordings of past meetings