Operating Budget 2025-2026

remained stable over the past two years. Inflation continues to impact the Town’s operational expenses and the cost of capital projects. This recommended budget accounts for these inflationary increases within our projected revenues.

The Town is continuing to implement projects and programs funded by the $13 million received through the American Rescue Plan Act (ARPA). All of the Town’s ARPA funds were obligated to projects by the end of calendar year 2024. All ARPA projects must be completed by the end of calendar year 2026. The Town is continuing to implement programs supporting food security, childcare, economic development, and affordable housing. ARPA funded capital projects constructing trails, outdoor spaces, and bicycle and pedestrian improvements are in various stages of planning and design. Construction of the North Main Trail has begun and construction of the first phase of the Meadowbrook Greenway Trail will begin later this year. Sections of the Huckleberry Trail in most need of repair will also be completed this year. There are several new initiatives funded in the recommended budget. These initiatives are listed below: • The recommended budget includes funding to support affordable housing projects in Blacksburg. Funds are planned in the Town’s general fund to offset the cost of waiving water and sewer availability fees for these projects. The projects include The Legacy on South Main Street, the Airport Road Habitat for Humanity townhomes, 402 Clay Street development, and Stroubles Ridge located off Merrimac Road. • The Town partnered with New River Valley Community Services and other law enforcement agencies in Montgomery County to develop a behavioral health co-response program. The program pairs a police officer with a behavioral health specialist to respond to specific calls for service. For the initial year, the program was funded with grant funds from the Commonwealth of Virginia. This recommended budget contains funding to pay for the full cost of the law enforcement components of the program in case state grants are not available next year. • The Town is beginning to collect revenues from the EMS revenue recovery program to fund the growing cost of emergency medical services. These funds will be collected in the next fiscal year but are not appropriated for spending. These funds will be appropriated towards Rescue Squad expenses in upcoming budgets. • The New River Emergency Communications Regional Authority is working on a project to upgrade Montgomery County’s emergency radio communications systems. The project will address ongoing issues of capacity, coverage, clarity, and lack of security experienced with the current outdated technology. This recommended budget includes funding to begin paying the Town’s share of the debt to procure and construct the infrastructure to support the project. Radios for the Police Department, Fire Department, and Rescue Squad will be funded in an upcoming fiscal year once the infrastructure is complete.

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