Town of Blacksburg Adopted Operating Budget FY 2027
Town of Blacksburg FY 2027 Adopted Operating Budget
TOWN COUNCIL Michael Sutphin, Mayor Susan Anderson, Vice Mayor
Lauren Colliver Darryl Campbell Jerry R. Ford, Jr. Joel Goodhart Andrew Kassoff
TOWN ADMINISTRATIVE STAFF Town Manager – Marc A. Verniel Deputy Town Manager – Community Development – Matthew T. Hanratty Deputy Town Manager – Operations – Steven F. Ross Town Attorney – Lawrence S. Spencer, Jr. Town Clerk – Lorraine S. Spaulding
Director of Financial Services – Jeff D. Lazenby Human Resources Manager – Teresa A. Harless Community Relations Manager – Kenna C. Jewell Police Chief – John P. Clair Fire Chief – Drew Smith Rescue Chief – David English Director of Parks and Recreation – Dean B. Crane Director of Engineering and G.I.S. – Carolyn A. Howard Director of Planning and Building – Andrew F. Warren
Director of Public Works – John N. Boyer Director of Technology – Steven B. Jones Director of Transit – Brian D. Booth
July 1, 2026
Citizens of the Town of Blacksburg Blacksburg, Virginia Dear Citizens:
The FY 2027 Budget was presented to Town Council for review and consideration on March 10, 2026. Several Work Sessions were held to review the budget before a Public Hearing took place on April 14, 2026. Town Council adopted the Town’s Budget for Fiscal Year 2027 on April 28, 2026. The Council approved the Recommended Budget with the following changes to agency funding: • Blacksburg Refugee Partnership to $5,000 from the Town Manager’s recommendation of $0. • Literacy NRV to $4,200 from the Town Manager’s recommendation of $3,500. • NRV Agency on Aging to $9,800 from the Town Manager’s recommendation of $9,350. • Blacksburg Master Chorale to $1,100 from the Town Manager’s recommendation of $1,000. • Cayambis Institute for Latin American Studies in Music to $500 from the Town Manager’s recommendation of $400. • Lyric Council-Operating/Capital to $20,000 from the Town Manager’s recommendation of $15,000. • Wonder Universe: A Children’s Museum to $3,500 from the Town Manager’s recommendation of $3,000. • Live, Work, Eat, Grow (LWEG) to $20,000 from the Town Manager’s recommendation of $15,000. • YMCA at Virginia Tech to $4,000 from the Town Manager’s recommendation of $3,500. • Affordable Housing Tax Incentive to $40,000 from the Town Manager’s recommendation of $25,000. • Onward New River Valley to $5,500 from the Town Manager’s recommendation of $5,250. The Town Manager’s letter transmitting the budget to Town Council follows the Table of Contents and provides highlights of the budget. The budget is available online at www.blacksburg.gov/budget. A copy of the Ordinances adopting the budget for FY 2027 is included in the Adopted Operating Budget following the Town Manager’s transmittal letter. A copy of the Resolution adopting the Capital Improvement Program is included in the separately issued Capital Improvement Program . The Town Council approved the FY 2027-2031 Capital Improvement Program on January 27, 2026.
Sincerely,
Marc A. Verniel Town Manager
GENERAL FUND APPROPRIATIONS
4.
(a) The following sums are appropriated from the General Fund ofthe Town for the
annual operation of the Town departments and non-departmental accounts as set forth below:
Town Council/Town Clerk Town Manager/Human Resources/Community Relations Housing and Community Connections (i) General Fund 753,765 (ii) New River Home Trust 89,240 (iii) Total
$ 366,805 2,777,782
843,005
Agencies and Authorities Parking Services Town Attorney
2,619,105 2,001,505 155,292 512,195
Planning and Building Engineering and GIS Finance Technology Police Fire Public Works Parks and Recreation Debt Service Non-Departmental & Transfers Contingency
2,153,104 2,085,471 2,886,014 1,671,260 12,572,733
1,181,107 8,211,452 4,421,741 3,361,343 11,615,682 282,400 300,000
TOTAL GENERAL FUND APPROPRIATION
$ 57,716,491
(b) Sums so appropriated that have not been encumbered or expended as ofJune 30,
2026, except capital expenditures as set forth in§ 6.10 of the Town Charter, shall lapse and
revert to the unappropriated balance ofthe General Fund.
(c) The Town Manager may transfer funds from "General Fund Contingency" to
other departments, offices, agencies, or accounts as appropriate and to effectuate the pay plan
approved by this ordinance.
(d) The total number of full-time permanent positions set forth in the budget shall be
the maximum number ofpositions authorized for the various departments of the Town during
the Fiscal Year, except for changes or additions authorized by Town Council. The Town
Manager may from time to time increase or decrease the number ofpart-time or temporary
positions: provided, however, that the aggregate amount expended for such services shall not
exceed the respective appropriations made therefore.
STATE FIRE FUND APPROPRIATION
5.
There is hereby appropriated from the State Fire Fund, for the expenditures related to the
purchase ofradios for Fire Department operations during the Fiscal Year, $1,125,000.
RESCUE FUND APPROPRIATION
6.
There is hereby established a special revenue fund to be known as the "Rescue Fund."
The Fund shall be maintained as a separate accounting entity within the Town's financial
system in accordance with generally accepted accounting principles applicable to
governmental entities. The purpose ofthe Rescue Fund is to account for and restrict the use
ofrevenues designated for Blacksburg Volunteer Rescue Squad operations, including funds
received from the payment offees for emergency transport service, which may be used solely
for the costs ofemergency medical services. There is hereby appropriated from the Rescue
Fund, for the expenditures related to the operation ofthe Blacksburg Volunteer Rescue
Squad, $1,354,142.
MIDTOWN SPECIAL SERVICE DISTRICT FUND APPROPRIATION
7.
There is hereby appropriated from the Midtown Special Service District Fund, for
expenditures related to the operation ofthe Midtown Special Service District during the Fiscal
Year, $692,700. The Midtown Special Service District additional tax for the calendar year
2026 is $.20 per one hundred dollars ofassessed valuation ofreal property and improvements
in the district, pursuant to Town Code§ 22-1106.
CDBG ENTITLEMENT FUND APPROPRIATION
8.
There is hereby appropriated from the CDBG Entitlement Fund, for expenditures
related to the Federal CDBG Entitlement Program during the Fiscal Year, $517,900.
HOME CONSORTIUM FUND APPROPRIATION
9.
There is hereby appropriated from the HOME Consortium Fund, for expenditures
related to the Federal HOME Consortium Program during the Fiscal Year, $712,800.
EQUIPMENT OPERATIONS FUND APPROPRIATION
10.
There is hereby appropriated from the Equipment Operations Fund, for the operation
of the internal garage and maintenance facility during the Fiscal Year, $1,597,700.
11.
TRANSIT FUND APPROPRIATION
There is hereby appropriated from the Transit Fund, for the operation of the transit
system during the Fiscal Year, $16,453,326. There is hereby appropriated from the Transit
Fund, for capital expenditures during the Fiscal Year, $13,122,500, which shall not lapse at
the close of the Fiscal Year, as set forth in§ 6.10 ofthe Town Charter.
12.
SOLID WASTE AND RECYCLING FUND APPROPRIATION
There is hereby appropriated from the Solid Waste and Recycling Fund, for the
operation of the municipal solid waste disposal programs during the Fiscal Year, $2,708,184.
There is hereby appropriated from the Solid Waste and Recycling Fund, for capital
expenditures during the Fiscal Year, $235,523, which shall not lapse at the close ofthe Fiscal
Year, as set forth in§ 6.10 of the Town Charter.
13. STORMWATER MANAGEMENT ENTERPRISE FUND APPROPRIATION
There is hereby appropriated from the Stormwater Management Enterprise Fund, for
the operation of the stormwater utility during the Fiscal Year, $1,350,633. There is hereby
appropriated from the Stormwater Management Enterprise Fund, for capital expenditures
during the Fiscal Year, $840,000, which shall not lapse at the close of the Fiscal Year, as set
forth in§ 6.10 of the Town Charter.
WATER/SEWER FUND APPROPRIATION
14.
There is hereby appropriated from the Water/Sewer Fund, for the operation of the
water/sewer utilities during the Fiscal Year, $16,511,910. There is hereby appropriated from
the Water/Sewer Fund, for capital expenditures during the Fiscal Year, $1,681,959, which
shall not lapse at the close ofthe Fiscal Year, as set forth in§ 6.10 ofthe Town Charter.
EQUIPMENT REPLACEMENT AND BUILDING SYSTEM FUND APPROPRIATION
15.
There is hereby appropriated from the Equipment Replacement and Building System
Fund, for the replacement of vehicles and equipment during the Fiscal Year, $6,183,650.
These are capital expenditures and this appropriation shall not lapse at the close of the Fiscal
Year, as set forth in§ 6.10 of the Town Charter.
GENERAL CAPITAL IMPROVEMENT FUND APPROPRIATION
16.
There is hereby appropriated from the General Capital Improvement Fund, for the
capital improvement expenditures in the approved Capital Improvement Program during the
Fiscal Year, $9,034,720. These are capital expenditures and this appropriation shall not lapse
at the close of the Fiscal Year, as set forth in§ 6.10 of the Town Charter.
EFFECTIVE DATES
17.
(a) As provided by Town Code§ 22-200, Paragraph 3 ofthis ordinance shall be
effective on and after its adoption; the rest ofthis ordinance, and the
appropriations set forth herein, shall become effective July 1, 2026. The pay
rates for the fiscal year shall be effective for the entire first paycheck in July.
(b) Effective with the June 21, 2026payroll-the first payroll o(Fiscal Year 2027.
the annual sala,y ofthe Town Attornev shall be $229.497. the annual salary of
the Town Manger shall be $247,564, and the annual salary o{the Town Clerk
shall be $81,781.
(c) Effective Janua,y 1, 2027, the annual sala,y o[the Mayor shall be $16,200 and
the annual salarv ofthe Council Members shall be $13,200.
Town Clerk oduction: fl1onx, I 0, w2J.g Public Hearing and Action: Aon\ I�, 2IJl£o V0'0\\c., UQa(ir'A held Of\ A0i' 2-B, w21.o APPROVED AS TO CONTENT:
APPROVED AS TO LEGAL SUFFICIENCY:
Lawrence S. Spencer, Jr., Town Attorney
the payment ofthe Montgomery Regional Solid Waste Authority tipping fee, and for the
improvement ofthe general public health and environment, a solid waste collection service
charge for each dwelling unit and commercial or residential establishment generating solid
waste within the town and required by section 20-200 ofthis chapter to participate in the
curbside collection and curbside recycling program. The service charge for collection of
Class A residential solid waste and Class II bulky rubbish shall be $32.67 $34.96 per
calendar month. The service charge for collection oflight commercial solid waste shall be
$32.67 $34.96 per establishment, in both cases, for up to one solid waste container, or its
equivalent, excluding recycling containers, and $32.67 $34. 96 for each additional unit or its
equivalent, excluding recycling containers, per calendar month. The service charge for all
other generators ofother types ofsolid waste contracting with the town for curbside refuse
and recycling service under this chapter shall be $32.67 $34.96 per dwelling unit or per
establishment, as appropriate, per calendar month.
** *
Sec. 24-602. Rates and fees established.
(a) The charges for water service for a customer shall be a flat billing service charge,
plus a rate based on the amount ofwater passing through and recorded by a meter for the
billing period, whether used or wasted as a result ofleaks or neglect ofthe customer, at the
following rates:
Billing service charge inside the corporate limits of $J-,M $3.43 and a rate of
(1)
$&M $9. 05 for each 1,000 gallons or fraction thereof.
Billing service charge outside the corporate limits of�68 $6. 02 and a rate of
(2)
$14.94 $15.84 for each 1,000 gallons or fraction thereof.
** *
2. This ordinance shall become effective July 1, 2026, and shall apply to all billing
periods beginning on or after that date.
fkk/Je Mayor
ATTEST:
Introduction: O'.Jove,lr) lO, 2D2io Public H � aring and Action: �p
APPROVED AS TO LEGAL SUFFICIENCY: Lkt �;JZ Town Attorney
TABLE OF CONTENTS
Page 1
Transmittal Letter ......................................................................................................................... 1 Town Council Strategic Goals ....................................................................................................... 6 Budget Guidance .......................................................................................................................... 8 Principles of Sound Financial Management ................................................................................. 9 Budget in Brief Town of Blacksburg Organizational Chart ....................................................................... 12 Description of Town Funds.............................................................................................. 13 Expenditures - All Funds .................................................................................................. 18 Fund Balance Determination........................................................................................... 19 Town of Blacksburg FY 202 7 Budget Summary ............................................................... 21 General Fund General Fund Five-Year Summary ................................................................................... 28 General Fund Revenues .................................................................................................. 29 General Fund Budget Summary ...................................................................................... 33 Debt Service/Contingency ............................................................................................... 34 Town Council .................................................................................................................. 35 Town Clerk ...................................................................................................................... 37 Agencies and Authorities................................................................................................. 40 Town Manager ................................................................................................................ 43 Human Resources Office ................................................................................................. 46 Community Relations Office............................................................................................ 50 Housing and Community Connections Office – Community Connection Division ........... 53 Sustainability Office......................................................................................................... 57 Town Attorney ................................................................................................................ 59 Financial Services Department Financial Services Department Organizational Chart/Narrative...................................... 62 Financial Services Department Funding Summary .......................................................... 65 General Services .............................................................................................................. 66 Accounting ...................................................................................................................... 67 Purchasing ....................................................................................................................... 68 Management Information Systems ................................................................................. 69 Technology Department Technology Department Organizational Chart/Narrative ............................................... 71 Technology Department Funding Summary .................................................................... 72 Public Safety and Justice Police Department Organizational Chart/Narrative ........................................................ 73 Police Department Funding Summary............................................................................ 76 Office of the Chief of Police............................................................................................ 77 Police Services ................................................................................................................. 78 Administrative Services ................................................................................................... 79 Police Operations ........................................................................................................... 80
TABLE OF CONTENTS (continued)
Page 2
Public Safety and Justice (continued) Volunteer Fire Department Organizational Chart/Narrative ........................................... 81 Volunteer Fire Department Funding Summary ............................................................... 83 Public Works Department Public Works Department Organizational Chart/Narrative ............................................. 84 Public Works Department Funding Summary ................................................................. 87 Public Works Administration ........................................................................................... 88 Streets Division................................................................................................................ 89 Property Division ............................................................................................................. 90 Landscape Maintenance Division .................................................................................... 91 Parks and Recreation Department Parks and Recreation Department Organizational Chart/Narrative ................................ 92 Parks and Recreation Department Funding Summary..................................................... 94 Administration Division ................................................................................................... 95 Indoor Aquatic Division ................................................................................................... 96 Natural Lands Division..................................................................................................... 97 Parks Division ................................................................................................................. 98 Golf Course Maintenance................................................................................................ 99 Golf Course Shop........................................................................................................... 100 Athletic Division ............................................................................................................ 101 Community Center Division........................................................................................... 102 Community Programs/Special Events Division .............................................................. 103 Outdoor Division ........................................................................................................... 104 Senior Division............................................................................................................... 105 Engineering and Geographic Information Systems (GIS) Department Engineering and GIS Department Organizational Chart/Narrative................................ 106 Engineering and GIS Department Funding Summary .................................................... 109 Engineering Division ...................................................................................................... 110 GIS Division.................................................................................................................... 111 Street Lighting Division.................................................................................................. 112 Planning and Building Department Planning and Building Department Organizational Chart/Narrative ............................. 113 Planning and Building Department Funding Summary.................................................. 116 Planning Division ........................................................................................................... 117 Building Safety Division ................................................................................................. 118 Capital Improvement Fund Description of Capital Improvement Funds ................................................................... 119 General Fund Capital Improvements Funding Summary ............................................... 120
Special Revenue Funds Housing and Community Connections Office Narrative – Housing Division .................. 121
TABLE OF CONTENTS (continued)
Page 3
Special Revenue Funds (continued)
Affordable Housing Development Fund Affordable Housing Development Fund Narrative ........................................................ 124 Affordable Housing Development Fund Five-Year Summary ........................................ 126 American Rescue Plan Act (ARPA) Fund ARPA Fund Narrative..................................................................................................... 127 ARPA Fund Five-Year Summary ..................................................................................... 130 ARPA Funding Summary ................................................................................................ 131 CDBG Entitlement Fund CDBG Entitlement Fund Five-Year Summary ................................................................. 132 CDBG Entitlement Funding Summary ........................................................................... 133 HOME Consortium Fund Home Consortium Fund Five-Year Summary................................................................. 134 Home Consortium Funding Summary ........................................................................... 135 Midtown Special Service District Fund Midtown Special Service District Fund Narrative .......................................................... 136 Midtown Special Service District Fund Five-Year Summary........................................... 138 Midtown Special Service District Funding Summary ..................................................... 139 Rescue Fund Volunteer Rescue Squad Organizational Chart/Narrative ............................................. 140 Volunteer Rescue Squad Fund Year One Summary ....................................................... 143 Volunteer Rescue Squad Funding Summary.................................................................. 144 Equipment Operations Fund Equipment Operations Narrative .................................................................................. 145 Equipment Operations Fund Five-Year Summary.......................................................... 146 Equipment Operations Funding Summary .................................................................... 147 Transit Fund Transit Fund Organizational Chart/Narrative ................................................................ 148 Transit Fund Five-Year Summary................................................................................... 150 Transit Funding Summary.............................................................................................. 151 Administration .............................................................................................................. 152 Communications and Customer Support ...................................................................... 153 Information Technology ................................................................................................ 154 Operations .................................................................................................................... 155 Training ......................................................................................................................... 156 Maintenance ................................................................................................................. 157 Mode of Service ............................................................................................................ 158
TABLE OF CONTENTS (continued)
Page 4
Solid Waste and Recycling Fund Solid Waste and Recycling Narrative ............................................................................. 159 Solid Waste and Recycling Fund Five-Year Summary .................................................... 160 Solid Waste and Recycling Funding Summary ............................................................... 161 Stormwater Fund Stormwater Narrative ................................................................................................... 162 Stormwater Fund Five-Year Summary........................................................................... 164 Stormwater Funding Summary...................................................................................... 165 Water and Sewer Fund Water and Sewer Narrative........................................................................................... 166 Water and Sewer Fund Five-Year Summary .................................................................. 168 Water and Sewer Funding Summary ............................................................................. 169 Utility Financial Services ................................................................................................ 170 Utility Division ............................................................................................................... 171 Utility Contracts and Testing ........................................................................................ 172 Water and Sewer Fund Debt Service/Capital Improvements ........................................ 173 Supplemental Information General Information - Town of Blacksburg.................................................................... 174 Miscellaneous Statistics ................................................................................................ 175 Community Profile and Demographic Statistics ............................................................ 176 Principal Taxpayers and Water/Sewer Customers ........................................................ 177 Location Map - Town of Blacksburg .............................................................................. 178 Authorities, Boards, Commissions, Committees and Task Forces ................................. 179 The Budget Process and Budget Calendar..................................................................... 180 Description of General Fund Revenues ......................................................................... 184 Personnel Services Narrative......................................................................................... 193 Allocation of Positions to Pay Plans FY 2027 ................................................................. 194 Personnel Funding Summary......................................................................................... 195 Town Pay Plan Summary FY 2027.................................................................................. 196 Sworn Police Pay Plan FY 2027 ...................................................................................... 199 Debt Service Information .............................................................................................. 200 Glossary of Terms.......................................................................................................... 203 Additional Information Town Council Work Sessions on the FY 2027 Recommended Budget ........................... 211 Comparative Analysis of Water and Sewer Rates.......................................................... 212 Recommended and Historical Utility Rates ................................................................... 213 Tax Rates in Selected Virginia Cities, Counties and Towns ............................................ 214
March 10, 2026
The Honorable Mayor and Members of the Town Council Town of Blacksburg 300 South Main Street Blacksburg, Virginia 24060
Dear Mayor and Members of Town Council:
We are pleased to submit the Recommended FY 2027 Budget for the period beginning July 1, 2026 through June 30, 2027 for your review and consideration. This budget was prepared by town staff and serves as the Town's financial plan for the upcoming fiscal year, providing the resources needed to support the high-quality services and initiatives the Blacksburg community has come to expect. Its development is guided by Town Council's Strategic Goals and the Town's Principles of Sound Financial Management. The Recommended FY 2027 Budget for all funds totals $125,655,488. Allocation by fund, as well as a comparison to the FY 2026 budget is as follows: RECOMMENDED BUDGET ALLOCATION BY FUND FY 2027
Percent Increase (Decrease)
FY 2026 Budget
FY 2027 Budget
Difference
General Fund General Capital Improvement Fund Rescue Fund State Fire Fund CDBG Entitlement Fund HOME Consortium Fund Midtown Special Service District Fund Water and Sewer Fund Solid Waste & Recycling Fund Stormwater Fund Transit Fund Equipment Operations Fund Total
$53,420,497 4,853,400
$57,716,491 9,034.720 1,354,142 1,125,000 517,900 712,800 692,700 18,193,869 2,943,707 2,190,633 29,575,826 1,597,700 $125,655,488
$ 4,295,994 4,181,320 1,354,142 1,125,000
8.0% 86.2% 0.0% 0.0% 0.0% 0.0% 0.0% 3.8% (0.2)% 55.1% 19.4% 7.3%
- -
517,900 712,800 692,900 17,527,349 2,949,335 1,411,999 24,773,720 1,489,600 $108,349,500
- - (200) 666,520 (5,628) 778,634 4,802,106 108,100
$17,305,988
16.0%
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The Recommended FY 2027 Budget provides funding to support the broad array of Town services at expected service levels under current economic conditions. The local economy has continued to grow moderately while, nationally, inflation has remained at around 3%. While this is a positive sign, the economy remains sensitive to national and global activities. Town revenues have 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. By the end of calendar year 2026, the Town will have completed all the projects and programs funded using the $13 million received through the American Rescue Plan Act (ARPA). Funds were used for programs supporting food security, childcare, economic development, and affordable housing. Capital projects included the Meadowbrook Greenway Trail, the North Main Trail, repaving sections of the Huckleberry Trail, creating outdoor spaces, and town-wide bicycle and pedestrian improvements. The Town’s use of ARPA funding will have a lasting impact on the quality of life in Blacksburg. There are several new and continuing initiatives funded in the recommended budget. These initiatives are listed below: • The Town continues to participate in the New River Valley Housing Trust Fund and provides 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. • In FY 2027, the Town will open The Local at 414 , a downtown retail incubator offering space for start-up businesses and small downtown events and meetings. The budget includes funding to support staffing, programming, marketing, and facility activation during start-up, until tenant and event rental revenue are realized to offset operating costs. • In FY 2026, the Town launched an EMS revenue recovery program to offset rising emergency medical services costs. The FY 2027 Budget establishes a new Rescue Fund which is a dedicated special revenue fund to track all Rescue Squad revenues and expenditures. • The New River Valley Emergency Communications Regional Authority is upgrading Montgomery County’s emergency radio communications systems. The project addresses ongoing issues of capacity, coverage, clarity, and lack of security experienced with the current outdated technology. The budget funds the Town’s share of the debt to procure and construct the radio system infrastructure as well as funding to purchase radios for the Town’s three public safety departments. Fire Department radios will be funded through the State's Fire Fund, Rescue Squad radios through the newly
2
implemented EMS revenue recovery program, and Police Department radios through the General Fund. • The Town is evaluating alternatives for downtown parking management in FY 2027. The goal is to maximize parking availability for downtown customers through new technology and improved enforcement. The budget includes funding for additional enforcement personnel and equipment. General Fund Revenue – The FY 2027 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 inflation in the cost of meals, lodging and retail goods. The real estate tax rate remains unchanged at $0.26 per $100 of assessed value, with modest revenue gains anticipated from new construction. Personnel and Benefits – The Town remains a desirable employer with dedicated staff committed to exceptional community service. The updated employee compensation system, ongoing recruitment efforts, and an improving labor market have largely resolved recent staffing shortages, with most departments returning to normal levels. Current vacancies are primarily due to retirements, and Human Resources continues to pursue creative recruitment strategies. The compensation system's success reflects the Town's commitment to funding both cost-of living increases to keep pace with inflation and step increases to advance experienced employees in the pay system. The FY 2027 Budget includes a 2% cost-of-living increase effective July 1, 2026, and a mid-year 2% step increase for employees with satisfactory performance evaluations, effective January 1, 2027. These adjustments result in a total compensation increase of 4%. This aligns with current inflation, is consistent with neighboring localities, and recognizes employee contributions to the organization. Health insurance is the Town’s largest employe benefit expense. Health insurance premiums will increase 7%, the first increase in four years and still below national and regional averages. The Town actively manages its health insurance program to provide employees with quality plan options at a responsible cost. The Town’s Virginia Retirement System contribution is increasing 15%, beginning the first year of a two-year rate cycle, with the next adjustment in FY 2029. The budget adds four new full-time Police Department positions. A Sergeant will strengthen oversight of specialized units and manage various technical systems. A Communications Specialist/FOIA Officer will handle media communications, maintain Police Department social media, assist with crisis communications and manage the increasing number of FOIA requests reliving sworn personnel of these duties. A Police Public Liaison Supervisor will improve supervision of the civilian staff in the Fusion Center and Public Liaison Assistants. A Parking Enforcement Officer will support proposed changes to the Town's downtown parking policies.
3
These positions are the highest priority among those considered and are fully supported within projected revenues. Blacksburg Transit – Blacksburg Transit is a critical component of the Town's transportation system, with ridership expected to exceed 5 million passengers this year. As Virginia Tech continues to grow and more students live off campus, demand for transit service will only increase. BT consistently evaluates its operations for efficiency improvements, and the budget includes additional service to meet this growth. Eight new full-time Bus Operator positions and two full-time Transit Dispatcher positions are included to support current and expanded service and ensure adequate dispatcher coverage during peak times. Blacksburg Transit has operated fare-free since 2020, with funding provided primarily through federal and state grants, along with contract funding from Virginia Tech and the Town of Christiansburg. Utilities – The Town provides public water, sanitary sewer, trash and recycling collection, and stormwater management. Rate increases are proposed for water, sewer, and solid waste and recycling in FY 2027, driven primarily by inflation in electricity, fuel, labor, and operating supplies and equipment. Stormwater rates remain unchanged. The Town will conduct a comprehensive utility rate study in the coming year to develop a long-range rate plan that accounts for operating costs and upcoming capital improvement needs. • Water rates are increasing 6%, reflecting higher operating costs at the NRV Water Authority, inflationary pressures, and capital costs to maintain the distribution system. • Sewer rates are also increasing 6%, due to rising operating and capital costs at the Sanitation Authority and Town capital projects to replace aging sewer infrastructure. • Solid waste and recycling rates are increasing 7%. The increases reflect higher tipping fees at the Regional Solid Waste Authority and inflationary cost increases from the Town's solid waste and recycling collection contractor. • The average Blacksburg utility customer with 6,000 gallons of monthly water usage can expect a rate increase of 6%, or approximately $8.40 per month. 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 thirty 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.
4
Several Town Council Work Sessions are scheduled over the next two months to review and discuss the Recommended FY 2027 Budget in more detail. The Public Hearing on the Recommended FY 2027 Budget is scheduled for Tuesday, April 14, 2026. Town Council is scheduled to consider adopting a budget ordinance on April 28, 2026. Copies of the Recommended FY 2027 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 2027 Budget document is available on the Town’s web site at www.blacksburg.gov/budget. Acknowledgements – The preparation of this budget reflects the hard work and professionalism of Town staff across every department. Their commitment to serving the Blacksburg community is evident in the quality of their work each day. I also want to thank the Mayor and members of Town Council for their continued leadership and support. I look forward to working together to advance the priorities outlined in this budget on behalf of our community.
Sincerely,
Marc Verniel
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Town Council Strategic Goals 2026 - 2028
Transportation
Plan and construct transportation improvements that focus on “moving people, not cars” as well as prioritizing investments in pedestrian, bicycle, and transit facilities. Housing Implement strategies to encourage the development of affordable and middle- income owner-occupied and rental housing for long-term residents, young professionals, families and seniors. Downtown and Economic Development Plan for additional structured parking, cultivate and support independent retail, protect the Town’s historic character, and continue to invest in streetscape and place-making projects in downtown. Expand Recreational Opportunities Provide amenities to improve the user experience in the park system, plan for indoor recreation improvements, continue to invest in trails and outdoor recreation and further develop the supporting infrastructure for high-quality parks. Community Building and Engagement Promote initiatives, events, and partnerships that enhance community wellbeing, strengthen community connections, and create opportunities for residents to engage in civic, cultural, and community life.
Communication
Focus on clear, intentional, and effective communication by actively engaging our citizens, welcoming their diverse perspectives, and ensuring they receive timely, accurate and accessible information.
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Continuing Community Values Environmental Sustainability - Continue the Town’s environmental sustainability efforts to implement the Town’s Climate Action Plan. Neighborhood Quality - Continue the ongoing focus on code enforcement activities in neighborhoods to maintain a high quality of life and property standards for residents. Continue to look for and use all tools available to the town for effective neighborhood code enforcement. Affordable Housing – Continue to support the development of affordable housing in Blacksburg and the surrounding region. Regional Cooperation – Continue positive relationships with Virginia Tech and neighboring communities in the New River Valley. Work to build closer working relationships with the Roanoke Valley and communities in Southwest Virginia.
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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 2027 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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Principles of Sound Financial Management
Overall Goals Introduction These principles set forth the broad framework for overall fiscal planning and management of the Town’s resources. In addition, these principles address both current activities and long-term planning. Every two years, following a Council election, these principles will be reviewed to assure the highest standards of fiscal management. The financial goals of the Town of Blacksburg are designed to ensure the Town’s sound financial condition at all times. 1. Sound Financial Condition may be defined as: Cash Solvency - The ability to pay bills. Budgetary Solvency - The ability to annually balance the budget. Long Term Solvency - The ability to pay future costs. Service Level Solvency - The ability to provide needed and desired services. 2. Flexibility is a goal that ensures that the Town is in a position to react and respond to changes in the economy and new service challenges without measurable financial stress. 3. Adherence to Best Accounting and Management Practices in conformance with generally accepted accounting procedures as applied to governmental units, and the standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). 1. A balanced budget should be prepared annually by the Town Manager and forwarded to the Town Council for consideration. 2. Ongoing operating costs should be funded by ongoing revenue sources. This protects the Town from fluctuating service levels and avoids concern when one-time revenues are reduced or removed. In addition: a. Cash balances should be used only for one-time expenditures, such as land acquisition, capital improvements and capital equipment or special one-time expenditures. b. Federal grants should not financially support essential Town services. Federal grant monies should be tied to programs and services with the understanding that those services delivered with grant funding may be revised and altered based on grant funding availability. c. New operating costs associated with capital projects should be funded through the operating budget but identified and outlined in the Capital Improvement Program. 3. The Town Manager should forward to the Town Council a quarterly financial report identifying meaningful trends in budget to actual for both revenues and expenditures for all major funds. Financial Principles
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Principles of Sound Financial Management (cont.) 4. Department Heads are responsible for managing departmental budgets within the total appropriated budget. 5. Replacement of Town vehicles, including Fire, Rescue and Police vehicles, should be fully funded through the Equipment Replacement Fund. 6. The Town’s goal is to add $120,000 annually to a capital reserve to set aside funds for future debt service or to be utilized for capital projects. Withdrawals from the reserve are only for “down payments” for large capital projects, to transition to debt service, or an emergency approved by Town Council. 7. The Town’s goal is to budget an amount of cash (pay-as-you-go) funding for capital projects equal to 5% of General Fund revenues (less capital transfers), with a minimum level of 3%. While it is the Town’s intent to use this pay-as-you-go funding annually for capital projects, should revenue shortfalls or unanticipated operating expenditures occur in the General Fund, this funding may be used as a source of budgetary flexibility. 8. Financial Trend Indicators should be prepared and reviewed annually to determine the Town’s financial condition. Town Council will review these indicators prior to the development of the Capital Improvement Program and annual operating budget. The Financial Trend Monitoring System (FTMS) offers the following: a. A method for quantifying a significant amount of information in relatively simple terms to gain better understanding of the Town’s financial condition; b. Places the events of a single year into a longer perspective and permits the Town to evaluate trends; and, c. A straightforward picture of financial strengths and weaknesses. 9. General Fund Unassigned Fund Balance is targeted at no less than 10% of operating expenditures exclusive of capital improvements. However, the Town will strive to increase the level to a target of 15% of operating expenditures exclusive of capital improvements. Unassigned Fund Balances should only be used for one-time uses. Bond Proceeds should be deposited and budgeted into the Capital Project Funds. 10. The Town Council may, from time-to-time, appropriate fund balances that will reduce available fund balances below the 10% policy for the purposes of a declared fiscal emergency or other such global purpose as to protect the long-term fiscal security of the Town. In such circumstances, the Council will adopt a plan to restore the available fund balances to the policy level within 36 months from the date of the appropriation. If restoration cannot be accomplished within such time period without severe hardship to the Town, then the Council will establish a different but appropriate time period. 11. Tax-supported debt service should strive to be less than 10% and not exceed 15% of operating expenditures exclusive of capital improvements. 12. The Town intends to maintain its ten-year tax-supported debt and lease payout ratio at or above 60% at the end of each adopted five-year Capital Improvement Program. 13. Net Debt as a percentage of total assessed value of taxable property should not exceed 2.0%. Net Debt is defined as any and all debt that is tax-supported. 14. A five-year financial forecast should be developed annually to determine net capital financing potential, to react to changes in the economy, and to accommodate regulatory and legislative mandates.
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