Operating Budget 2025-2026

BUDGET GUIDANCE

The review and adoption of the Annual Operating and Capital Budget represents one of the most important policy-making responsibilities for the Mayor and Town Council. The budget is more than just a legal document appropriating funds; it establishes service levels based on the priorities and fiscal capacity of the Town.

Preparation of the Adopted FY 2024/2025 Budget was guided by the following policies:

 Plan and manage the continuing pressures of growth from Virginia Tech.  Maintain the overall quality of life for residents.  Maintain the quality and variety of services provided.  Meet current infrastructure needs before acquiring or building additional infrastructure.  Evaluate functions, activities and personnel levels.  Determine whether cost savings or service level improvements can be achieved.  Replace equipment and vehicles when it is most cost effective.  Identify alternative revenue sources. This budget includes performance measures which are an excellent tool to assist in the decision-making process. These measures help with the prioritization and allocation of resources, which is especially important in times of financial uncertainty. Budget measures are quantifiable measures of outcomes, quality, efficiency, effectiveness, inputs, and outputs that are meaningful and relevant. Measures are presented by department/fund in the respective sections. The Government Finance Officers Association (GFOA) recommends that governments forecast major revenues and expenditures for a three to five-year period beyond the current budget in order to assess the long-term financial implications of current or proposed policies, programs, and assumptions. This recommendation is even more important today based on the volatile state of the economy and the uncertainty that lies ahead. Financial forecasting is intended to accomplish the following goals:  Provide an understanding of available funding.

 Evaluate financial risk.  Assess service levels.  Assess resources for capital investments.  Identify future commitments and resource demands.

 Identify key variables that can affect future revenues or expenditures.  Plan effectively to meet financial principles and ensure fiscal responsibility.

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