City Council to Vote Monday on Tax Increase, Budget Cuts, Affordable Housing Loan

By STAN FENDLEY
FALLS CHURCH TIMES STAFF

March 21, 2010

The Falls Church City Council will vote Monday on preliminary approval of a $.20 property tax increase, $9 million in budget cuts, including $2 million in school cuts, as well as final approval of a $2 million loan for an affordable housing project.

The affordable housing project, called “The Wilden,” will come first on the evening’s agenda.  Included will be a Special Exception ordinance allowing residential construction in a commercial area and approval of the $2 million City loan.

A City staff memo describing the details of the project is available at the City website, along with other background materials.

Following recommendations from the Falls Church Planning Commission, conditions will be added to the $2 million City loan for the project, including those relating to the use of proceeds from the potential sale of Winter Hill Apartments, the financing of land acquisition and parking construction on adjacent property at 360 S. Washington Street, and new loan default protections.

Also on the affordable housing agenda will be measures providing a tax exemption for the project and making related zoning code changes.

The staff memo relating to the affordable housing project also details arguments for and against the project made by members of the Falls Church Economic Development Authority and a number of Falls Church residents.

After taking action on affordable housing project, the Council will take its preliminary vote a FY2011 budget that cuts spending by almost $9 million and raises the City real estate tax from $1.07 to $1.27 per hundred dollars of value.  Under the proposed measure, the City FY2011 budget will be set at $64 million, as opposed to $73 million in FY2010.  The school operating budget will drop $2 million, from $36.8 million in FY2010 to $34.8 in FY2011.

The City Council meeting will begin at 7:30 pm in Council Chambers, 300 Park Avenue.  The meeting will be showing on local cable television and via the Internet (link available at the City web site.)

Shields Proposes 20 Cent Tax Increase, Cuts in Services

By GEORGE BROMLEY
Falls Church Times Staff

March 9, 2010

Faced with a record deficit, City Manager Wyatt Shields recommended a 20 cent increase in the real estate tax rate at last night’s meeting of the Falls Church City Council.  The increase will raise the average home owner’s property tax bill $976 or 15%.  The rate now is $1.07 for every $100 of assessed value.  The current median home value in Falls Church is $587,300.

Although the rate increase likely is the highest in City history, it is insufficient to close the FY 2011 budget gap, so Mr. Shields proposed cuts in staff and services to bridge the difference.

Sixteen positions will be eliminated through early retirement or vacancies.  Employee contributions to retirement funds and health insurance will increase, resulting in cuts in take home pay from 1.6 to 5%.  The current pay freeze also will remain in effect.  Additional savings will be achieved through staff reorganization.

Service cuts include closing the library on Sundays and reducing hours by one hour on weekdays, saving $45,000.  The community center will close an hour earlier on weekends and a half-hour earlier on weekdays.  Urban forestry contracts will be cut back, as will street sweeping.  Cuts in information technology will save $65,000.

Uniformed police patrol, storm water maintenance, and local matches for federal grants will be preserved.  Employee pension funds will remain fully funded.  The GEORGE bus system also survives, though with reduced hours and increased fares.  Its net cost to the general fund is $120,000.

Water rates will remain steady for the fifth straight year.  City sewer rates also will remain unchanged.  Some recreation and permit fees will rise but not significantly.  The meals tax, personal property tax, and decal fees will not increase.

Overall, the proposed $64 million budget is slightly smaller than that for the current year.  General government costs are projected to decline by $2.3 million (7.1%) and school costs by $1.3 million (4.5%).  Primary City expenditures are 43% to education, 11% to public safety, 8% to public works, and 7% to recreation and parks, which includes the library.

Sixty percent of the City’s revenue is derived through property taxes.  Mr. Shields noted that this is a larger share than in years pastg because most other revenue sources are decreasing.  Federal and state funding is declining and the $2 million transfer from the water fund to the general fund has been eliminated due to the recent Fairfax Circuit Court decision against Falls Church.  The absence of the transfer equates to 7 cents on the property tax rate.

Photo-red has not been implemented and now only two, rather than four intersections, are projected to have cameras.  Sales tax revenues are down $715,000, partly due to state corrections to the tax rolls, however meals taxes are expected to increase, in part due to new restaurants opening in the City.

Mr. Shields reported that assessed values in Falls Church are down 6.4% overall.  Specifically:

Single family  -  1.6%
Townhouses  –  1.6%
Condominium  –  9.6%
Commercial  -  13.4%
Apartments  -  12%

Assessed value of new construction, which peaked at $128 million in 2007, is projected at $40 million in 2010, only 20% of which was commercial.  On the other hand, improvements to residential properties have remained stable.

School Board Vice Chair Joan Wodiska followed Mr. Shields presentation, noting that the schools are facing similar reductions in funding while coping with increased enrollment.  The Board’s proposal includes instituting new fees totalling $76,000, including pre-school peer partner charges, higher parking fees for students at George Mason High School, and athletic fees.  The equivalent of 10 positions will be eliminated, partly through reducing staff hours.  The schools’ communications function will be consolidated with the City’s.  Anticipated student enrollment in FY 2011 is 2,032.  The cost per pupil, without benefits, is $13,715.

Mr. Shields then briefly reviewed the Capital Improvements Program, most of which is grant funded.  He stressed that the City must take steps to insure that its fund balance is restored to its appropriate level before undertaking major capital projects as proposed in the CIP.  The minimum level for the fund balance is 8%, though the targeted level is 12%.  However, that level may not be achieved until FY 2014.  One of the capital improvements proposed by the Planning Commission is the replacement of the Property Yard storage shed which was a casualty of the February blizzards.

Vice Mayor Hal Lippman and Councilman Lawrence Webb both called the proposals “sobering” and Councilman Dan Sze stated they left everyone “gasping for breath”, but Mr. Lippman was confident Falls Church would weather the crisis.  “I really think we’re going to get through this and the City will be just fine.”

Mayor Robin Gardner suggested that a citizen volunteer corps might be established to assist in maintenance duties such as cutting grass or painting rails.  She cited parents shoveling the Mount Daniel school playground after the recent snowfalls as an example.

The first reading of the budget is scheduled for the next Council session on March 22.  Town hall meetings will be held on March 20 and April 10.  Second reading and formal adoption will take place on April 26.

The proposed budget is available at the City’s website.

Barry, Kaylin, Hockenberry Running for Council as Independents

By STAN FENDLEY
Falls Church Times Staff 

March 4, 2010 

May’s City Council election took final form this week as Johannah Barry, Ira Kaylin, and Lindy Hockenberry filed to run as independents. 

After exploring the race for months, Barry and Kaylin made it official with an announcement indicating they would run a coordinated campaign with a common platform.  Hockenberry will run separately after losing her bid last month for a Citizens for a Better City endorsement. Read more

Development Authority Split over Affordable Housing Project

By STAN FENDLEY
and
STEPHEN SIEGEL
Falls Church Times Staff

March 2, 2010

The City of Falls Church’s Economic Development Authority split tonight in its consideration of  the affordable housing project and related office building proposed for 350 and 360 S. Washington Street.

The Falls Church Housing Corporation (FCHC) and “Flower Building” developer Bob Young presented their latest plan for coordinated redevelopment of the two properties at the meeting, hoping to win the EDA’s support.  After tough questioning, however, EDA members appeared divided over the issue, and Chairman David Tarter ruled that the body should simply supply comments on the projects to the City Council.

EDA members Bob Butchko, Phil Duncan and  Ed Saltzberg voiced support for the redevelopment, with Butchko and Saltzberg noting that the proposed projects “would be better than what is there now.”  By contrast, EDA members Ira Kaylin and Mike Novotny clearly opposed the projects, while Andy Rankin voiced mixed feelings.  EDA Chairman David Tarter abstained from taking a position because of his previous work as City Attorney.

The EDA is a seven-member body created to advise the City Council in economic development issues and projects.

Kaylin has been an outspoken critic of the Housing Corporation’s request for a $2 million City loan for the affordable housing project, stating that the loan terms are unduly favorable.  The housing organization borrowed the same amount interest-free from the City in 2008, but was forced to begin repaying that loan when other funding could not be secured for a larger version of the affordable housing project.

Originally, the earlier loan was due for repayment in December 2009, but a substantial balance was carried over to 2010.

Novotny also has taken issue with the combined projects proposed by FCHC and Young, suggesting instead that a larger office and commercial complex would generate greater revenue for the City.  Novotny revisited his proposal for S. Washington Street at last night’s EDA meeting, contrasting his ideas with those of FCHC and Young.

If the City provides the $2 million loan to FCHC, financing for the affordable housing project presumably would be in place.  The housing organization won federal low-income housing tax credits for the project last summer, which will be provided to the project builder in order to lower the cost of construction.

Even with the housing credits and a City loan, however, the affordable housing project hit a roadblock via objections from the then-owner of the adjacent property at 360 S. Washington.  That roadblock potentially was removed when Young purchased the property and pledged to work with the Housing Corporation in a coordinated effort.

A question remains, however, whether Young can find the financial commitments to fund his part of the arrangement, originally envisioned as a 28,000 square foot office building over a three-story parking garage.  Last month Young proposed that the City help fund the effort by making an equity investment in the office building and pre-leasing a large amount of the space.  City officials declined that proposal, as well as a second idea relating to industrial development bonds.

Last night, Young indicated that he was seeking federal or state grant money to build the garage, as well as federal “intermodal” transportation dollars dedicated to the City.  To finance the office building, Young will seek to pre-lease office space.

In response to a question from Rankin, Assistant City Manager Cindy Mester stated that the City would not pre-lease space in the project.

If the redevelopment goes forward, it will require a “Special Exception” ordinance to City zoning laws, as well as a real property tax exemption.  The City Council is expected to vote on those requests on March 22.  The City Planning Commission will consider technical aspects of the proposals prior to Council action.

The meeting featured a lively give-and-take between the EDA critics of the proposal on the one hand, and Carol Jackson, head of the Housing Corporation, Housing Corporation Attorney Dave Lasso, and City Council candidate (and former City Council member) Lindy Hockenberry on the other.

Novotny authored a presentation suggesting that the city would take on significant risk by approving the affordable housing project — risk in the form of a loss of revenue.

He suggested that a more comprehensive redevelopment of the S. Washington Street corridor for commercial uses could ultimately yield a revenue bonanza.

“The Wilden (affordable housing) project will eliminate future opportunities for land consolidation and preclude larger and higher quality commercial development in this area, which could generate substantial net positive revenue for the City,” he wrote in an email he circulated prior to the meeting.

It was that fear of the revenue loss that motivated other opponents as well. Kaylin, also a candidate for City Council, said the project “is a net drain on the City. We have to try our very best to maximize revenue.”

But developer Young, who has ridden in like a white knight to salvage the affordable housing project with his proposal to include an adjacent office building, suggested this is the best the City’s likely to get, and he said it also may jump-start development in the area.

Friends of Cherry Hill Plead Their Case to City Council

By GEORGE BROMLEY
Falls Church Times Staff

February 23, 2010

In a stunning example of community activism in response to potential budget cuts, 10 citizens last night implored the Falls Church City Council to retain the part-time position of the site coordinator at Cherry Hill Farm.

The speakers were led by Friends of Cherry Hill Foundation President Michelle Crowell, who warned that the elimination of the position likely would result in the loss of the programs offered at the site, such as the summer history camp and Farm Day.  Ms. Crowell also noted that the absence of a coordinator might make it impossible to maintain insurance coverage on the house’s furnishings, which are owned by the Foundation.

Members of the Falls Church Historical Commission pointed out that Cherry Hill is not merely a historical site but a representation of the City.  Carl Ensign of the Village Preservation and Improvement Society referred to it as an anchor of the community and observed that it would be a shame if a site which survived the turmoil of the Civil War did not survive the FY 2011 budget cuts.

Council members were very supportive in their response.  Vice Mayor Hal Lippman, who reported that over 20 emails had been received on the issue, noted that the budget is still in preparation and that the proposal to cut the coordinator position was not part of a “working document.”  He assured that speakers that the Council “would be carefully weighing your thoughts and concerns.”

Councilman Dave Snyder observed that cutting the position would be counter-productive.  “Outside of the schools, Cherry Hill gets us more positive media than any other institution in the City.”

Councilman Dan Maller spoke most eloquently.  “History lives not just in the building but in people in their devotion to the building and what it means.  This is not an economic issue.  I feel an emotional attachment.  There is something deeply meaningful about Cherry Hill and I think it should be protected.”

In conclusion, Mr. Maller stated he wished the Council would see this sort of a reaction to other elements of the City budget so to better see what is most meaningful to the people Falls Church.

The site is listed on the National Register of Historic Places.

Buschow, Lawrence, Lippman, Peppe Win CBC Nod for City Council

By GEORGE BROMLEY
Falls Church Times Staff

February 21, 2010

Long-time Falls Church City acitvist Barry Buschow, Vice Mayor Hal Lippman, Planning Commission Chair John Lawrence, and School Board Chair Ron Peppe will represent the Citizens for a Better City (CBC) in the May 2010 City Council election, following the balloting at Saturday’s nominating convention.

Incumbents Rosaura Aguerrebere and Susan Kearney and newcomers Greg Rasnake and Patrick Riccards won the organization’s endorsement for School Board.

A total of 174 Falls Church voters registered at the convention, and 169 cast ballots.  It was the organization’s 25th bi-annual convention, held this year at George Mason High School.

Left out of the fold were Councilman Dan Sze, who was seeking nomination for a second term, and former Vice Mayor and two term Council member Lindy Hockenberry, who was attempting a comeback after her narrow defeat in 2008.

Under the CBC’s new system of balloting, all convention registrants had the three options.  They could vote for a candidate (+1 point), abstain (0), or vote against a candidate (-1).  A voter theoretically could endorse all of the candidates on the respective ballots or none of them, the determining factor being the total number of points scored, with the top four contenders winning nomination.  Any candidates receiving a negative total were automatically eliminated.

The four School Board slots were uncontested, but the complex Council balloting led to a protracted vote count.  Winners were announced in alphabetical order by CBC President Deb Gardner.  No point totals were released.

In her opening remarks, Ms. Gardner stated that the convention was an opportunity to increase the “social capital” of the community and noted that cities with strong civic participation develop more innovative public policy and operate more effectively.   She encouraged citizens to optimize their engagement via sites such as the Falls Church Times.  She then introduced former councilman David Chavern, who served as the convention chair.

Candidates, first for the Board and then the Council, were nominated and gave brief acceptance speeches.  Each group then responded to written and oral questions from the convention registrants.

Perhaps the most incisive question of the day was the last one:  how much will the City’s real estate tax rate of $1.07 have to rise to cope with the ongoing financial crisis?  Mr. Sze quickly said 10 cents.  Mr. Buschow estimated from 15 to 20 cents.  Mr. Lippman said he would love to see 10 cents, but was “dubious” that would be achieved.  Mr. Lawrence thought the increase would be closer to 20 cents.  Ms. Hockenberrry estimated 15 cents and Mr. Peppe 20.

Council candidates also were questioned about the recent decision to move municipal elections from May to November, beginning in 2011.  Mr. Lippman defended his vote in favor of the move.  Mr. Lawrence stated that he did not like how the change was made.  Mr. Buschow asserted that voters should have had their say on the issue via a referendum.  Mr. Peppe felt that the move might lead to more partisanship.  Ms. Hockenberry stated that she had not taken a stand on the issue.  Mr. Sze, who voted for the change, said that he was prepared to return the election date to May if voters favor such a move.

As no other candidates have announced for School Board office, the CBC nominations may be tantamount to election.  However, the race for the four Council seats remains wide open.  Councilman David Snyder, who was endorsed by CBC in 2006, intends to seek a fifth term as an independent.  Mr. Sze and Ms. Hockenberry, though unsuccessful today, might also run as independents.  Two other prospective candidates, Ira Kaylin and Johannah Barry, are circulating signature petitions, but have not formally announced.  The filing deadline is Tuesday, March 2.

The Falls  Church Times policy on local election coverage is: 

• Make no endorsements
• Promote informed, civil dialogue on election issues
• Provide equitable, impartial coverage of candidates

Stan Fendley also contributed to this report.

ON THE RECORD: An Interview with CBC President Deb Gardner

By STAN FENDLEY
Falls Church Times Staff

February 19, 2010

On the eve of the annual nominating convention of the Citizens for a Better City (CBC), the Falls Church Times conducted an email interview with CBC president Deb Gardner in which she discusses her view of the organization’s role and her outlook for the convention.   

—

FCT:  When did you first become involved in the CBC?

Gardner:  We lived in the same neighborhood with Jane and Wayne Dexter when we first moved to the City, so the vision of CBC was made very real to me. My first direct and in-depth involvement with CBC was when my husband Dan decided to run for a School Board nomination over 12 years ago. I was immediately struck by the commitment of these people to make the City a better place to live and their efforts toward inclusion. 

 FCT:  When were you elected president and how long does your term run?  

Gardner:  The term of President is 2 years as it is with all offices.  I was elected to my term in November of 2008. 

 FCT:  What do you do when not running the CBC? 

Gardner:  I am a nurse with a PhD in Health Policy. Currently, I work at the National Institutes of Health Clinical Center, as the Chief of Organizational Development.

FCT:  By the way, are you any relation to Mayor Gardner?

Gardner:  No, we’re not related.

FCT:  What do you see as CBC’s role in the community?

Gardner:  The role of CBC is to protect and improve the quality of life in our community by promoting good government through strong civic involvement.  It is a “non-partisan” political organization that encourages residents to register and vote in all elections and to fully participate in public affairs.  Developing knowledge of your community takes time and involvement with others. Boards and Commissions provide an avenue for the development and use of citizen talents. Encouraging people to engage in these activities is a baseline effort CBC has always promoted, and recently we have been increasing that focus. The other important and complementary role of CBC is to provide open and public consideration of City Government policies with respect to the views of “all” citizens and to promote communication between citizens and officials to ensure a strong government that reflects the residents voices. Encouraging dialogue, not rhetoric, is also a primary goal.

FCT:  Why does CBC not take policy positions?

Gardner:  This question has been debated almost since the inception of CBC, but the dominant belief is that given the complexity of issues and the fact that variables change, the best role a civic organization like ours can take is to find strong candidates to take on the issues. The principles of CBC are really shared goals, which I believe all citizens share. The CBC principles direct our efforts for recruitment. How those goals are realized must be addressed within the current context and not be prescriptive. Policy positions are often restrictive and limited in foresight.

FCT:  The CBC has been active for months, talking to potential candidates and preparing for the nominating convention.  Are you satisfied with the outcome so far?

Gardner:  I certainly am. The City is in a critical moment in time, and with the national and local distrust in government, while we need informed citizen involvement more than ever, many do not want to step forward and make the tough decisions.  I think each of the citizens of this City who have come forward to run for a City Council or School Board nomination from CBC are talented, committed and ready to lead either for the first time or to continue to lead.  We have made a strong effort to engage anyone who has expressed interest in seeking a School Board or City Council seat in a conversation about CBC and our purpose.  Obviously some folks have either not wanted to have that conversation or have made the decision to not participate in the process, which is their choice. My goal as president has been to increase the size of the CBC tent this past year and a half. There is a great deal of work that goes into recruiting good candidates, and to think we need two parties to do this is a redundancy which I believe is unnecessary in such a small community. This year we have candidates who definitely have different views on how to approach the challenges facing the City, and I believe that will provide a rigorous conversation making the CBC convention a viable way to begin assessing the candidates.

FCT:  Do you expect a large turnout tomorrow?  How many people normally attend a CBC convention?

Gardner:  Yes, I think given the number of candidates and their energy to bring supporters, we are going to have a strong turnout.  The number of folks who normally attend the Convention ranges anywhere from 100 to 200 people.  However, we are hoping for a record turnout this year! 

FCT:  Talk to us about this year’s rules changes.  One new rule is that people can vote either for or against a candidate.  Why that change?

Gardner:  The reason for the rules change is that the CBC Executive Committee, responding to feedback from the community, decided that it would be okay to nominate fewer than the allotted spaces open for election.  The only way to do that was to create a system where the convention could exert its will and qualify candidates, not just fill available slots.  The rules allow for this by requiring that a candidate receive a positive score.  If a candidate does not receive a positive score, then he or she  is eliminated from the convention.  Thus, the convention could end up nominating fewer candidates than spaces available.

FCT:  And is it correct that people can “vote and leave” this year?   

Gardner:  I think it would be unfortunate if participants came in, voted and left without hearing the candidates explain their positions.  After all, the candidates have made a huge commitment to service to the community.  Hearing them out is the least we can do.  So, we do hope that most attendees will stay to hear the debates and make up their mind at the conclusion.  Of course, Falls Church City citizens have a lot happening on Saturdays, so if they needed to leave early, they could leave their ballot with a friend, give it to an usher, or to the chief teller.  Again, this is really not our preference.

FCT:  You have six candidates running for four endorsements for City Council.  Sometimes in recent years, candidates have run unopposed for CBC endorsements.  To what do you attribute the higher level of interest this year?   

Gardner:  You are correct about the unopposed endorsements. We have been recruiting for some months now.  By increasing the diversity of the CBC Executive Committee membership, we have been able to to discover new networks of residents which has really helped. This year we wanted to ensure more competition, as that has been a criticism in the past.  

FCT:  There are three candidates seeking a CBC endorsement for School Board.  If they all win an endorsement, can the CBC Executive Committee appoint a fourth person?   

Gardner:  As you may know by this time, we expect to have a fourth candidate nominated from the floor.  I am very excited that Greg Rasnake has decided to step forward. His background in budget and finance will be invaluable.  There is a provision where the Executive Committee could appoint someone, but this has rarely been necessary.

FCT:  Do you expect nominations from the floor as well?

Gardner:  Since Greg did not file with the Candidate Search Committee before the filing deadline, he will seek the nomination from the floor.

FCT:  What happens once CBC nominates its candidates?  What does the organization do to try to elect them?

Gardner:  My job as CBC President is to see that the organization provides a good convention. Once the convention is over, attendees choose their nominees, then the campaign for the May election is in the hands of those nominees. They are responsible for recruiting volunteers, raising money, and getting their message out to the City’s voters.

FCT:  Thanks for taking time with us.  Good luck with tomorrow’s event.

 

Falls Church Rejects Use of Public Funds for Office Building

By STAN FENDLEY
Falls Church Times Staff

February 18, 2010

Earlier today, the Falls Church City Council decided against using City monies to support redevelopment at 360 S. Washington Street, as was proposed by McLean-based Jefferson One LLC last week and reported in the Falls Church Times yesterday.

The following statement was received by a City spokesperson this morning following a meeting of the Economic Development Committee of the City Council:  

“[City] Council determined that public funds will not be committed to  support the redevelopment on 360 S. Washington St. (proposed office building). The Council’s Economic Development Committee continues to work with the developer to explore alternative options.”

 

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