Operating Budget 2025-2026

BUDGET PROCESS

Basis of Accounting The budgets for the General Fund and Special Revenue Funds are adopted and maintained on the modified accrual basis of accounting with adjustments for encumbrances. All appropriations lapse at year-end to the extent they have not been expended or lawfully encumbered. Subsequently, an appropriation equal to year-end encumbrances is authorized in the succeeding fiscal year. Budgets for proprietary funds are also adopted and maintained on the modified accrual basis. However, this basis is converted to the accrual basis of accounting for preparation of the Town's Annual Comprehensive Financial Report (ACFR). The budget for the Capital Improvement Fund, like the General Fund, is adopted and maintained on the modified accrual basis of accounting. Unlike the General Fund, however, appropriations made to the Capital Improvement Fund can be carried forward for up to a five-year period or until the purpose for which the appropriation was made has been accomplished or abandoned.

Budget Process

The budget process in the Town of Blacksburg begins with the formulation of the five-year Capital Improvement Program (CIP). The CIP is a financing and construction/acquisition plan for public improvement projects that require significant financial investment by the Town. The CIP represents a balance between maintaining the Town’s existing assets and investing in new assets to support the Town’s growth, as well as ensuring that investments are made in accordance with the community’s priorities and the Town’s financial principles.

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