Falls Church adopts FY 2026 budget, trims real-estate rate to $1.20 and sets contingencies amid economic uncertainty

The Falls Church City Council adopted the fiscal year 2026 operating budget and capital improvement program and approved a package of related ordinances May 12, setting the real-estate tax rate at $1.20 per $100 of assessed value and passing utilities rate updates and fees.

City Manager Shields and Finance Director Kiran Bawa presented the revisions that led to the final package. Shields said a downward revision of about $1.2 million in local tax revenues required adjustments; the budget before council reduces some spending and sets aside a revenue-contingency reserve of roughly $535,000. The council adopted the primary budget ordinance (TO25-02) on a 7-0 vote.

The council also adopted the tax ordinance (TO25-03) setting the real-estate tax levy at $1.20; the vote was 7-0. The personal property tax rate did not change. Staff said the net effect of the adopted rate combined with rising assessed values would mean the median home…