Council Mulls Options for Water Sale Proceeds

City of Falls Church:

“Falls Church City Manager Wyatt Shields was slated to review a range of options for the use of net cash proceeds of about $14 million from the sale of the Falls Church Water System to the Fairfax Water Authority at a F.C. City Council work session Wednesday night, in advance of a Feb. 3 work session to which he’s invited professional consultants to ‘provide some independent suggestions on the use of the one-time proceeds from the sale.’

Options mulled so far have included investment in the City’s pension plan that could reduce the City’s annual required contribution by $980,000, use of the funds for ‘pay as you go’ to mitigate cost of capital improvement projects now on the drawing boards (such as a new high school), and the formation of an endowment that could generate $371,000 to $651,000 per year.”

~ Writes the Falls Church News-Press

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Fairfax Water to Supply City of Fairfax Residents

Fairfax County

“The City of Fairfax completed the sale of its water utility to Fairfax Water, beginning the process of merging these two water systems. ‘Fairfax Water is pleased to welcome the customers of the City of Fairfax service area to our family of 1.7 million Northern Virginians who receive water service from Fairfax Water. We look forward to continuing our history of providing exceptional service, quality, and reliability to our customers,’ said Philip W. Allin, Chairman of Fairfax Water.

In commenting on the transition Mayor Silverthorne said, ‘This is a win-win for all parties. City residents will continue to receive plentiful high-quality water plus lower rates for water in the future. In the final analysis, we had to give first consideration to an opportunity that would save our residents money in the near and long term.’

The City Council voted to sell the system in April 2013. In signing the final papers today, Fairfax Water purchased the City of Fairfax water system, transferred employment of the City’s water system employees to Fairfax Water, and guaranteed the reduction of water rates for the City of Fairfax water system customers to be equalized to the Fairfax Water rates within three years.”

~Writes The Connection

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