Falls Church Council directs staff to prepare budget amendment to spend prior-year surplus on schools, parks, sidewalks and bike plans

City staff on Oct. 21 asked the Falls Church City Council for direction on a proposed budget amendment that would appropriate prior‑year revenue surplus and reallocate remaining ARPA and local funds to a set of capital and one‑time priorities, including a revenue share with the Falls Church City Schools and local matches for electric school buses.

Staff summary and next step

Staff told the council the amendment is intended to move available year‑end funds into projects that had been identified during the Budget and Finance Committee review. Staff said the city could maintain its unassigned fund balance policy and still direct one package of allocations; the recommendation shared two scenarios for capital reserves and long‑range projections showing drawdowns over the next six years. Staff asked the council for consensus direction so staff could prepare a first‑reading ordinance for the next regular meeting.

Why it matters: money, priorities and reserve policy

The amendment links near‑term project funding to a choice the council must make about capital reserves. Staff presented two allocation scenarios; under the more aggressive spending path capital reserves fall in later years toward or below the policy target. Several councilmembers urged caution about any practice that would use reserves to smooth debt service without broader council agreement, and asked staff for multiyear scenarios that exclude using reserves for debt service so the council can assess risks before final action.

What the amendment would fund

• School revenue sharing…