City Retains AAA Bond Rating; Council Approves Budget Guidance
November 24, 2010 by George Bromley · Leave a Comment
By GEORGE BROMLEY
Falls Church Times Staff
November 24, 2010
On the heels of a legal setback and facing a difficult budget development process, the Falls Church City Council heard some positive news Monday night when city manager Wyatt Shields reported that a leading rating agency has affirmed the City’s AAA bond rating. Although its recent defeat in the Virginia Supreme Court will force Falls Church to withdraw $2.2 million from its general fund, Fitch, Inc. has continued to give the City its highest rating. Joe Mason of Davenport, Inc., the City’s financial advisor, noted that Fitch’s most recent report stated that the number of downgrades continues to outpace upgrades, indicating that the overall credit environment continues to be very difficult.
Mr. Mason stated that Fitch expected the City to return its fund balance to its minimum policy floor, sooner rather than later, and stressed that the revenue forecast for the balance of the current fiscal year and the next must be on target. He also noted that Fitch and other rating agencies want to see municipalities engage in long term financial planning, so to have “an early warning system that would identify future pitfalls.”
Mayor Nader Baroukh observed that the Council took prompt action on the fund balance restoration last year and managed its situation well during the FY 2011 budget cycle. The mayor sees the City as continuing in that direction, while also breaking new ground.
In remarks to the Times, Mr. Baroukh stated that the unanimous approval of the FY 2012 budget guidance and the Council’s work plan on Monday evening are significant new steps in City governance. “In the past we were adding things in the last week or two of the budget cycle.” he said. “Now the city manager has a framework, which should make the tail end of the process more workable.” The mayor lauded the School Board’s decision to submit its budget earlier in the process (February 15).
The budget guidance directs the City Manager to build the FY 2012 budget assuming an equalized revenue stream for real estate as compared to FY 2011. Declining assessments will necessitate approximately a 4 cent increase in the tax rate in order to generate an equal amount of revenue in FY 2012 as in the current year. The guidance also calls for a plan for restoring the General Fund balance above the policy minimum of 8% of annual revenues by the end of FY 2012.
Additional Legislative Actions – The Council unanimously approved several other measures on Monday.
At the recommendation of the Housing Commission, the Council approved a resolution for the FY2012 funding allocations for the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program Funds. The total amount of funding requested from the eight proposals was $106,330 of CDBG funds and $72,500 of HOME funds. The total CDBG and HOME funds available to the City are anticipated to be $104,938 in CDBG and $53,400 in HOME funds.
The City’s 2011 legislative program was adopted via resolution. The program’s primary positions are the prohibition of firearms in City facilities; codification of the right of all persons to be free from discrimination; improvements in pedestrian safety; the return of a greater portion of the existing income tax generated from the City of Falls Church to the City for state and unfunded mandates; and legislation to ensure effective and efficient administration of the photo red monitoring public safety system. During the discussion of the program, Councilman Lawrence Webb stated that next year he would like to include a Charter change which would require candidates for local office to obtain nominations only via petition and not through nomination by any political party.
First reading of an ordinance was approved to amend FY 2011 budgets to add $43,685 to the General Fund, $50,000 to the Capital Improvement Projects Fund, and $38,000 to the Water Fund Capital Improvement Projects Fund for new grants and other revenues awarded or received.
A consent item was approved authorizing a contract for purchase of miscellaneous plumbing supplies in an amount up to $300,000. The supplies are used in the maintenance and repair of the City’s water distribution system and in the connection of new water services.
State Representatives’ Comments – At the beginning of the meeting Senator Mary Margaret Whipple and Delegate Jim Scott gave the Council a glimpse of the view from Richmond. Ms. Whipple saw the state’s financial situation as “a lot better than last year” but said that “caution [is] the reigning word for the outlook ahead.” She noted that Virginia has seen a 3.6% revenue increase so far, which is below expectations. Mr. Scott called it “the most difficult budget year I can remember” and described the state’s revenue situation as “still not very good.” He attributed this to dramatic increases in medicare costs and the commitment to the retirement system and the state’s “‘rainy day fund.” Mr. Scott said this was not the time to limit local jurisdictions “flexibility” and that he intended to protect local streams of revenue.
QSCB Application – School Board chair Joan Wodiska thanked the Council for its prompt action in support of the City’s application for $5.95 in Qualified School Construction Bonds which, if approved, will facilitate renovation of Thomas Jefferson Elementary and allow 5thgraders to return to the school. The state’s decision on the request of the grant likely will be made before the end of the year. She also noted that the Board was developing a public/private partnership with a Reston-based firm that would provided wireless internet access and free wireless service to low income students in the community. School Board member Patrick Riccards, echoing Ms. Wodiska’s remarks, called the application “a major step forward for the City.”
Zoning Issues – Former councilman Dan Maller, a member of the zoning ordinance advisory committee, stated that the City has developed and sustained several radical policies over the last several years, including residential development on so called substandard lots and called its policy “not only an assault on our neighborhoods but an assault on the English language. How can we care more about the status of a parcel of land than the rights of neighbors and neigborhoods?”
Mr. Maller noted that he recently had brought a zoning code violation case to the Board of Zoning Appeals, but lacking three votes to overturn the zoningadministrator, now would have to appeal to the Circuit Court to stop the development. He asked the Council to accept the responsibility of prosecuting the appeal, saying that the City would be a party to the repeal regardless, but that it was important for the Council to stand with the citizens on the issue. Mayor Baroukh suggested that city attorney John Foster review the case and that the Council discuss the matter at next Monday’s work session.
Gordon Thiesz made his third statement on zoning issues to the Council this term, pointing out that since 2005 variance requests have become a rarity in the City. He suggested that the Zoning Department had approved redevelopment plans without requiring a review by the Board of Zoning Appeals and noted that BZA cases became more common after that year. Mr. Thiesz called on the Council to insist on proper oversight of the Zoning Department. The mayor saw his complaint as similar to Mr. Maller’s and worthy of review at the next work session on November 29.
Councilman Ira Kaylin commented at the end of the meeting that it was great to the citizens’ concerns, but there had been no indication as to what the City’s position was in these matters. He suggested that the city manager have someone present its position at the upcoming work session.
City Manager’s Report – Mr. Shields stated that the FY 2012 budget development calendar now is on the City’s website. The calendar lays out all steps between now and final approval on April 25, 2011. He said that there would be a “public input session” in January, though the date was still undetermined. Two town hall meetings will be held later in the process.
Regarding the QSCB application, the city manager advised that the projected savings would be $2.6 million over the life of the bond, compared to conventional financing, in effect a below zero percent interest rate.
Mr. Shields thanked acting CFO Melissa Ryman for her work on the preparation of the reports for the rating agencies and for her efforts in helping identify issues and presenting solutions to the Council.
Appointments – David Tarter was reappointed to the Economic Development Authority. His term will run through November 30, 2014. Ginger Pinholster was appointed to an unexpired term on the Tree Commission which will run until March 31, 2013.
Council Comments – Vice Mayor Dave Snyder made several requests to the city manager:
> A review and report on the process that resulted in the installation of No Parking signs at the corner of James and Virginia.
> A staff report on state revenues citizens pay to Richmond. He noted that an earlier study had found that the City received only 20 cents in return for every dollar it sent to the state.
> A “top to bottom look” at the City’s senior programs, now that the Senior Citizens Commission seems to have disbanded.
> Information on the financial and liability risks the City assumes in running the water system.
Mr. Webb congratulated Joan Wodiska on her election as president of the Virginia School Board Association. Councilman Ron Peppe seconded Mr. Webb. Both attended the conference that saw Ms. Wodiska’s election, which Mr. Baroukh termed a great tribute to her and the entire School Board.
Councilwoman Robin Gardner encouraged residents to attend the production of Les Miserables at George Mason High School. She asked for their prayers and good wishes in behalf of the ailing Ruby Bolster.
Links to all pertinent documents are available at the City’s website.
How to Apply for $5.95 Million Interest-Free
November 24, 2010 by Falls Church Times Staff · Leave a Comment
By FALLS CHURCH TIMES STAFF
November 24, 2010
The City of Falls Church School Board has provided the Falls Church Times with a copy of its 18-page application to the Virginia Department of Education for $5.95 million in interest-free school construction bonds. (See below for a link to the full application.)
The application includes letters of support from the School Board, the city manager, the Planning Commission, and the Long-Range Financial Planning Working Group, as well as a resolution by the City Council.
The letter from the Financial Planning Group provides particular insight into the financial situation of the City and its schools. It notes that:
- The City has stripped away nearly all funding for capital improvements programs. Historically, the City has allocated about $4.2 million annually for improvements, but this year allotted only $100,000 between the City and the School system.
- Over the past two years, median household income in Falls Church has fallen approximately 10 percent, while City real estate taxes rose 16 percent —the largest increase in the City’s history. Household discretionary income has likely been reduced by about $3,500 to about $5,300.
- The perception of Falls Church being an affluent community is superficially misleading when a full analysis of household incomes and expenses is taken into account. Read more
Crime Report for November 16 – 22
November 24, 2010 by (see byline) · Leave a Comment
By FALLS CHURCH POLICE DEPARTMENT
November 24, 2010
Graffiti-Damage to Property, 904 Ellison St (The Fields), Nov 16, unknown suspect(s) using a permanent marker wrote on lobby walls and broke light bulbs some time before Nov 13.
Larceny – Theft from Motor Vehicle, 200 blk W Rosemary Ln, Nov 17, 06:54 AM, unknown suspect(s) removed multiple tools from a work truck parked overnight on the street.
Smoking in a Non-Designated Area, 6763 Wilson Blvd, #12B (Café de Paris Restaurant), Nov 18, 03:46 PM. A 68 year old Falls Church man was cited for smoking in a restaurant.
Smoking Prohibited in Restaurant, 6763 Wilson Blvd, #12B (Café de Paris Restaurant), Nov 18, 03:51 PM,). A 41 year old Falls Church man was cited for permitting smoking in a restaurant.
Larceny – Theft from Building, 6763 Wilson Blvd, #1 (Planet Fitness) Nov 19, between 06:20 PM and 8:00 PM, unknown suspect(s) cut the locks on two lockers and removed valuables.
Destruction of Property, 220 N Washington St (State Theatre), Nov 19, 11:07 PM, three poster display cases were broken by a known suspect.
Larceny – Theft from Motor Vehicle, 127 E Broad St (Applebee’s), Nov 20, between 8:30 PM and 9:30 PM, unknown suspect(s) shattered a driver’s side window and took a bag containing a Dell laptop and a Navagom GPS.
Smoking in a Non-Designated Area, 6757 Wilson Blvd #17 (Déjà Vu), Nov 20, 11:01 PM. A 37 year old Arlington man was cited for smoking in a restaurant.
Larceny – Theft from Motor Vehicle, 140 S Maple Ave (Bowl America), Nov 20, between 8:30 PM and 11:07 PM, a passenger side window was broken by unknown suspect(s) and a Tom Tom GPS, Visa Card and a diamond ring were taken.
Vandalism to Motor Vehicle, 200 blk E Fairfax St, Nov 21, 07:53 AM, unknown suspect(s) broke a rear right window. Owner was not available and it is unknown if any items were taken.
Lebanese Butcher, Other Businesses Find New Spaces
November 23, 2010 by Stephen Siegel · 3 Comments
By STEPHEN SIEGEL
Falls Church Times Staff
November 23, 2010
The popular Falls Church City institution Lebanese Butcher, which was burned by a raging fire out of its space at 101 Annandale Road in September, has found new space and opened around the corner on Hillwood Avenue.
The restaurant is not yet fully recovered, however; it’s only re-opened the grocery and deli portion of its business at 150 Hillwood Ave., the site of the former Allied Lock and Safe building.
Other businesses forced to close by the blaze, including an insurance agency, limousine service, and travel agency, also have relocated within the city limits. Some others have not: Aana Beauty and Spa is now in Fairfax County’s Seven Corners, after considering and rejecting a number of locations within City limits, according to a City official.
Crescent Moon Limousine Service has relocated to 131 E. Broad Street. Nationwide Insurance agency is around the corner from the fire at 115 Hillwood, but still looking for permanent space, according to the City’s Economic Development Office. Red Sea Travel and Tours also is around the corner at 307 Hillwood, and Best Accounting and Tax Service relocated to Skyline in Fairfax County.
The fate of some other businesses is unknown. City officials have been unable to contact Gocong Supermarket, for example.
The Lebanese Butcher had been at the previous site for 30 years, and its loss was met by sadness among City residents and Falls Church Times readers, as reflected in comments posted on the Times site after the fire.
Meanwhile, a new restaurant has opened in the same area as the Butcher’s location: Lesly Restaurant, at 306 Hillwood. Serving Tex-Mex and Salvadoran specialties, the restaurant occupies the former Taco Laredo building. Lesly is the name of owner Samuel Umanzor’s eldest daughter.
Umanzor has expanded the menu from Taco Laredo’s offerings and spruced up the building, principally by removing the tired old carpet that was there and exposing a tile floor.
Business has been slow so far, he said, although it only has been open for six weeks. He is offering lunch specials from 11-3 each weekday, such as three Salvadoran pupusas and a soda for $5.95, or two tacos and a soda for the same price. The restaurant is open seven days a week from 10 to 10.
MAN ABOUT TOWN: Where’s the Change?
November 22, 2010 by George Southern · 8 Comments
By GEORGE SOUTHERN
Falls Church Times Columnist
November 22, 2010
No, despite the headline, the Man About Town is not indulging in Washington commentary. When I ask, “Where’s the change,” I’m sticking close to home. The new City Council has been in office almost five months now, and I can name only two actions different from what their predecessors would have done:
(1) Repealed the election change ordinance in favor of a referendum; and
(2) Declined to provide a million-dollar advance on proposed new seniors housing.
That’s it. And in the greater scheme of things, those two “changes” are less than defining moments.
The previous Council behaved as if their ship of state had not struck an iceberg, and was not sinking. And I gave them grief for that. But now the new Council seems to be acting out the same role.
Where’s the sackcloth and ashes? Wailing and gnashing of teeth? Maybe it’s going on in private, but don’t the taxpayers deserve to know if Council is worried?
But to be fair, just what could City Council do dramatically different? Frankly, I can’t think of anything that wouldn’t cause a firestorm of protest. Because institutions always resist change. And the Little City is no exception.
Does anyone really know how bad it is?
Each month, City Council gets a report from the acting Chief Financial Officer. That’s at least an improvement – it used to be only quarterly. But at last Monday night’s briefing our CFO admitted not to having been aware that the state Supreme Court had declined to hear the City’s appeal of the Water War judgment. (Note to CFO: Read the Falls Church Times!) That means the City has 30 days to pay out close to $2.5 million.
The financial report as of October 31 shows the City’s fund balance at a flat $2 million. Subtract $2.5 million from that, and . . . .
Of course, there will be a cash infusion come December 5 when property tax is due. But talk about living paycheck to paycheck!
The new City Council, like the old City Council, continues to ignore the “elephant in the room.” And this time I’m talking about capital improvements. Simply put, there are none. Because we can’t afford them.
As the ship of state lists to starboard, we’re planning a budget that essentially ignores the fact that buildings and equipment wear out. And that school and City employees, while appreciative of an annual salary hike, at the very least don’t want to see their net paycheck shrink – which could happen when employees shoulder a larger share of pension contributions.
Our City Manager has prepared a draft resolution for Council to approve that would “guide” him in making the budget. Included in his proposal is:
(1) No increase in real estate revenue. But since property values (particularly commercial) continue to decline, the projection is that we’ll need a 4 cent tax increase to obtain the same revenue as this year.
(2) Increased pension costs of $1 million and one-half percent higher operational costs.
Add (1) and (2) and what have you got? A slash-and-burn personnel policy. There’s no other way to balance the budget – and forget about trying to restore the fund balance, or provide for capital improvements, or fund the schools’ increased enrollment.
No, in the end, the new City Council is pretty much like the old City Council. They’re not miracle workers. And for that matter, why should we expect them to be?
I certainly don’t claim to have an answer how to fund the Little City – short of just raising the tax rate as needed. I think 26 cents would be a good start, which would give us a nice round rate of $1.50. Then you could restore the fund balance, pay for the schools, and start providing again for capital improvements.
Trouble is, not a single member of Council ran on an “Increase Our Taxes” campaign.
But the hard truth is, if you want a boutique city with a boutique school system, you have to pay for it. If, on the other hand, you want efficiency, you have to consolidate.
Meanwhile, the only good news is the City’s application for $6 million in interest-free school construction bonds provided by the Feds and divvied up by the State of Virginia.
But, while it’s worth a try applying for the money, we should remember that every other school district in the state has its eyes on the same pot. And Falls Church does just happen to be the wealthiest district, per capita, in the state. So I wouldn’t bank on that “free money” just yet.
SATURDAY/SUNDAY 12/4-5: Holiday Craft Show at Community Center
November 21, 2010 by George Southern · Leave a Comment
Deck the halls this holiday season with special gifts from the 18th Annual Holiday Craft Show. More than 60 crafters will take over both floors of the Falls Church Community Center, 223 Little Falls St., to sell unique handmade items and baked goods from 9 a.m. to 4 p.m. on Saturday, Dec. 4, and from 11 a.m. to 4 p.m. on Sunday, Dec. 5.
Admission to the craft show is $1 for adults and 50 cents for children 12 and older; admission is free for children under age 12. Lunch is available for purchase both days.
Children are invited to come and enjoy special holiday activities. Saturday, Dec. 4 activities include Breakfast with Santa from 9-10:30 a.m.; holiday crafts from 11:30 a.m.-1:30p.m.; and a performance by the Great Zucchini from 2-2:45 p.m. Also on Dec. 4, children can visit with Santa from 11 a.m. to 2 p.m. Falls Church City TV professionals will film videos of children with Santa at a cost of $10 per DVD. Saturday will also features a performance by students from the George Mason High School chorus.
On Sunday, Dec. 5, a puppet show is scheduled from 1-1:30 p.m., and free holiday crafts and face painting will be offered from 2-4 p.m.
Reservations and pre-payment are required for Breakfast with Santa ($5), The Great Zucchini ($5), and the Puppet Show ($5). Reservations and payment can be made by calling 703-248-5027 (TTY 711) or online at www.fallschurchva.gov/RecRegistration. All other children’s activities are free with admission.
The Cherry Hill Farmhouse, 312 Park Ave., will host a special Holiday Shoppe on Dec. 4 from 10 a.m. – 2 p.m. Volunteers will help children purchase and wrap inexpensive gifts ($5 and under) for friends and family.
Donations Sought for Mary Riley Styles Public Library Foundation Trust
November 21, 2010 by Falls Church Times Staff · Leave a Comment
With a new year fast approaching, please think of the Mary Riley Styles Public Library Foundation Trust as you make year-end charitable donations.
The Foundation is a 501 (c) (3) organization that helps support the City of Falls Church Mary Riley Styles Public Library, which was recently nationally recognized for its outstanding service for the third year in a row. Money from generous donors to the Foundation helps supplement the funding received from the City government. In recent years, contributors have funded the wireless networking capability at the Library, purchased additional books, books-on-disc, and DVDs for the collection, and paid for the prizes given to young adults who won the library sponsored poetry contest. This past year it also provided money for the National Library Week celebration at the Library and teen software and computer equipment.
You may direct your contribution to immediate needs or add to the endowment that has been established by the Foundation to provide a future guaranteed stream of income for the Library.
Please mail your contributions (checks made out to the MRSPL Foundation Trust) to: MRSPL Foundation Treasurer, 213 W. Columbia Street, Falls Church, VA 22046
All contributions are acknowledged by letter which serves as your receipt.
For more information, call 703-248-5030.
Free Energy-Saving Services Offered to Low-Income City Homeowners
November 21, 2010 by Falls Church Times Staff · Leave a Comment
Rebuilding Together (RPJ Housing) in partnership with Housing and Human Services, City of Falls Church, is looking to provide free energy efficiency services and modifications to low-income homeowners in the City of Falls Church. These services can help save on energy costs with a variety of home improvements. Income qualifications apply.
Modifications include but are not limited to:
- Adding insulation
- Caulking
- Doors and appliances
- Replacing of old faucets and toilets
- Installing programmable thermostats
- Weatherstripping
- Installing energy efficient windows
Funding for this program is provided to RPJ Housing through Community Development Block Grant Funds (CDBG) sponsored by City of Falls Church, Housing and Human Services Division.
For more information about this limited time opportunity contact: RPJ Housing 703-528-5606 ext. 16 or email: [email protected]
Falls Church in the News
