Town of Blacksburg Adopted Operating Budget FY 2027

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.

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