Operating Budget 2025-2026

• The Town is participating in the New River Valley Housing Trust Fund and providing funding to support its work. The New River Valley Regional Commission established the Trust as a regional housing initiative to support affordable housing development in Blacksburg and throughout the New River Valley. • Town Council has set a priority for the Town to comprehensively review and update the Town’s Zoning Ordinance. The recommended budget includes funding to hire a consultant to assist with this work. A request for proposals has been issued and work will begin in the upcoming fiscal year. • The New River Valley Regional Commission is planning to purchase and renovate new office space in Christiansburg. The Town is a partner in the NRVRC with all the other local governments in the New River Valley. The recommended budget includes funding for the Town’s share of the costs to support the new office space. • Work continues to bring passenger rail service back to the New River Valley by 2027. This budget includes the Town’s share of funding to support the renovation and construction of the new passenger rail station in the Cambria area of Christiansburg. Revenue – The FY 2025/2026 Budget projects revenue growth in all major categories. Economically sensitive revenue sources such as meals tax, lodging tax, and sales tax are all projected to increase. The increased revenues are due primarily to inflationary cost increases for meals, lodging and goods purchased in local retailers and online. The current real estate tax rate of $0.26 per $100 of assessed value is maintained in the recommended budget. Modest real estate tax revenue increases will be seen from new construction. Personnel and Benefits – The Town remains a desirable employer and we are fortunate to have dedicated employees who are committed to providing exceptional service to the community. The recent implementation of an updated employee compensation system, along with ongoing recruitment efforts and an improving labor market, has helped address staffing shortages experienced in recent years. As a result, staffing levels in most operating departments have returned to normal. Many current vacancies are due to staff retirements. Human Resources continues to explore creative strategies to attract applicants and fill open positions. The success of the updated compensation system is largely due to the Town’s commitment to fund cost-of-living increases to keep pace with inflation, as well as fund step increases to advance experienced employees within the pay structure. The recommended budget includes funding for a 2.5% cost-of-living pay increase, effective July 1, 2025. Additionally, a mid-year step increase of 2% is proposed for employees with satisfactory annual evaluations, beginning January 1, 2026. The total recommended compensation increase for employees in FY 2025/2026 is 4.5%. This adjustment aligns with current inflation rates, is consistent with pay increases in neighboring localities, and appropriately recognizes employees for their contributions throughout the year. The Town’s largest benefit expense is health insurance. For the third year in a row, the Town will not have a health insurance premium increase from our health insurance provider. This is welcome

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