Falls Church council debates shifting curbside trash from taxes to fee; treasurer warns implementation would be a heavy lift

City staff and the treasurer’s office laid out competing approaches for financing curbside solid‑waste service at a work session where councilmembers voiced concern about equity for multifamily residents and the timing of a move from tax‑funded service to a fee structure.

City Manager Wyatt Shields presented two options. Option 1 would shift single‑family curbside trash out of the general tax rate and into a fee (staff recommended a flat fee rather than a variable weight‑based fee) and, as part of that move, treat composting as a separately offered program. Under staff modeling discussed in the session, the tax‑rate change associated with pulling the current curbside cost into a fee would be roughly 1.5 cents on the real‑estate tax rate — an amount staff said equates to roughly $950,000 in revenue. Shields and staff proposed a written revenue‑sharing hold‑harmless approach so that the school transfer would not immediately lose revenue as the service is reallocated.

Option 2 would delay adoption of a fee and instead fund a more extensive study of equity, multifamily service models, income‑eligible fee relief and how composting might scale in the city. Several councilmembers said they wanted additional public engagement and more modeling before deciding; others urged moving sooner rather than later while the budget window remains open.

Treasurer Jody Spencer said the city’s billing system vendor (Tyler/Munis) is capable of implementing a fee on the fall tax bill but that the work would be substantial and would require temporary staffing help from finance. “It is feasible, but it will be a very heavy lift,” Spencer said. She and city finance staff said Munis can implement a flat fee by October if the city assigns staff to support the vendor and implementation process.

Council members and staff discussed equity concerns for condo and multifamily residents who currently lack a curbside pickup service yet pay into city taxes that support curbside collection. That concern generated multiple approaches: (a) hold harmless the school transfer while the fee is implemented; (b) study a payment‑in‑lieu or other arrangements for HOAs and multifamily properties; or (c) provide targeted fee relief for income‑eligible households — a relief Shelby staff advised could be accommodated under state law but would require a qualifying ordinance and funding set‑aside.

Composting emerged as a connected question. Staff estimated a per‑household composting program would require upfront bin purchases (staff estimated about $155,000 to buy an initial set of bins) and an incremental subscription fee (staff estimated the compost option would add roughly $22 per household to the modeled fee). Councilmembers proposed phased or opt‑in rollout to limit up‑front cost and match demand.

Why this matters: moving curbside solid‑waste out of the tax rate and into a fee changes who pays and how the service scales. It raises equity questions because condo and multifamily residents do not receive equal curbside service but do contribute via taxes; it also affects the city’s general‑fund revenues and the school transfer calculation.

Council next steps: Staff and the treasurer will refine implementation timelines and work‑load estimates and will present further options and fiscal detail. Councilmembers flagged the city’s budget town hall and recommended broad community outreach prior to committing to a fee model.