How to Apply for $5.95 Million Interest-Free

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.

Click to read the pdf document here.