Council Approves Budget Cuts; Next Year Might be Worse

By GEORGE BROMLEY
Falls Church Times Staff

The Falls Church City Council continued grappling with budgetary shortfalls in a lengthy session Nov. 9, passing measures designed to address the City’s ongoing financial crisis and to better prepare for the future.

The first resolution, which passed by a vote of 6-0, authorizes a $5.6 million reduction in the current year’s (FY 2010) budget.  Most of the cuts involve reductions in capital improvements.  A hiring freeze, $600,000 in cuts in non-personnel expenses, and a reduction of $300,000 in the transfer to the schools account for most of the rest.

As originally written, the resolution’s text stated that the Council would “endorse” the cuts.  This was subsequently changed first to “accept”, which was deemed insufficient, and then to “approve.”

City Manager Wyatt Shields stated that the cuts are not a long-term solution and that they are primarily intended to protect the City’s bond rating.   He acknowledged that “The heavy lifting for the long term is in the context of developing the FY 2011 budget.”

Councilman Nader Baroukh, who abstained, urged that both the current and coming fiscal years be considered together.  He expressed concern that the City was “mortgaging out its future.”   Although commending City Manager Wyatt Shields’ efforts, Mr. Baroukh noted that even after the cuts there would still be a “residual” of $700,000 that would have to be dealt with in the FY 2011 budget.

That year may prove an even bigger challenge.  Mr. Shields briefed Council members over the past weekend on preliminary numbers for FY 2011.

Last night Councilman Dan Maller referred to the early FY 2011 figures as “unsettling, to say the least.”  Mr. Baroukh called them “staggering.”  Public disclosure still may be weeks away.  The first substantive discussion of the FY 2011 budget is set for a joint Council-School Board work session November 30.

Mr. Maller saw the problems ultimately as ”political, not fiscal.  Taxpayers need to say what it is they demand.”

Vice Mayor Hal Lippman, stressing he was not chiding citizens for not commenting, noted that only four people had expressed their views at Council sessions since it began struggling with the budget several weeks ago.

Whether this reflects citizen confidence or indifference is unclear.  At this point, neither the Council nor the citizenry have a full picture of what portends after FY 2010 and so are not in the best position to either recommend specific cuts or demand the full funding of particular programs.

A second resolution [shown as originally drafted], introduced by Mr. Baroukh, passed unanimously after the Council implemented some revisions reached in an impromptu work session.  The measure primarily directs the City manager to develop multi-year budget scenarios and long-term financial plans.

By a 6-0 vote the Council also approved the creation of the Long Range Financial Planning Working Group. which will assist City management and the Council with long range capital planning and other issues as specifically directed by the Council.  The new board, which will consist of up to five members, will serve until July 1, 2011, unless further extended by the Council.

Councilman Dan Sze abstained.  In remarks prior to the vote, Mr. Sze stated that he supported the general concept of the Group, but had reservations as to how well it would work.