Operating Budget 2025-2026

Utilities – The Town provides public water, operates a sanitary sewer collection system, collects household trash and recyclable materials, and manages the stormwater system. Increases are proposed to rates for public water, public sewer and solid waste and recycling in the next fiscal year. Increases are primarily due to inflationary cost increases to electricity, fuel, labor and operating supplies and equipment. The stormwater utility rate is remaining unchanged. The Town is planning a comprehensive utility rate study in the upcoming year to provide a long-range plan for utility rates that considers operating costs and upcoming capital improvement needs. • Water rates are increasing 5% due to increased operating costs at the NRV Water Authority and inflationary increases to operate the water system and capital cost increases to maintain the water distribution system. • Sewer rates are increasing 5% due to increasing operating and capital costs at the Sanitation Authority and Town capital projects to replace aging sewer infrastructure. • Solid waste and recycling rates are increasing 3.7%. There was no rate increase in the current budget year. The increased costs result from increased tipping fees at the Regional Solid Waste Authority and inflationary cost increases from the Town’s solid waste and recycling collection contractor. • The utility bill for the average Blacksburg utility customer is expected to increase 4.47%, or $6.02 per month for a customer with 6,000 gallons of water usage. Agency Funding - The Town provides funding for non-profit agencies that provide public services in the Town of Blacksburg. The Town received funding requests from twenty-nine organizations this year. As has been past practice, recommended funding is at the same level as approved last year by Town Council. Town Council will have an opportunity to discuss agency funding over the next two months in budget work sessions. Several Town Council Work Sessions are scheduled over the next two months to review and discuss the Recommended FY 2025/2026 Budget in more detail. The budget approval schedule is a month later this year than in typical years due to recent vacancies in the Finance Department. The Public Hearing on the Recommended FY 2025/2026 Budget is scheduled for Tuesday, May 13, 2025. Town Council is scheduled to consider adopting a budget ordinance on May 27, 2025. Copies of the Recommended FY 2025/2026 Budget are available at the Blacksburg branch of the Montgomery-Floyd Regional Library, as well as in the Town Clerk and Town Manager’s offices. The Recommended FY 2025/2026 Budget document is available on the Town’s web site at www.blacksburg.gov/budget. Acknowledgements – I sincerely appreciate the staff’s dedication and teamwork in preparing this budget for the Town Council’s review. Recent vacancies in the Finance Department required several employees to take on additional responsibilities. I want to thank Accounting Supervisor Melanie Minnick, MIS Manager Terri Self, Utility Services Manager Cary Quesenberry, and MIS Specialist Brad Wright for their extra efforts in this year’s budget preparation. I also appreciate the

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