Town of Blacksburg Adopted Operating Budget FY 2027

At the all-funds level, growth is concentrated in the General Fund, General Capital Improvement Fund, Transit Fund, Water and Sewer Fund, and the newly established Rescue Fund. Transit and capital investment account for a significant share of the overall increase from FY 2026 to FY 2027, reflecting both service demand and the Town's commitment to infrastructure and equipment reinvestment. Fund Balance and Fiscal Policy The General Fund begins FY 2027 with an estimated balance of $15.6 million and ends the year at $8.1 million after planned use of fund balance for capital and other one-time purposes. Reserved fund balance is projected at $585,000, and unassigned fund balance is projected at $7.5 million. While the recommended budget continues to use fund balance strategically, that use is tied to one time expenditures rather than recurring operations, consistent with adopted policy. This fiscal strategy allows the Town to preserve operational stability while moving forward on capital needs that would otherwise place pressure on the operating budget or future debt capacity. In the context of GFOA best practices, the budget clearly distinguishes ongoing operating support from one time financing sources and demonstrates how reserves are used to smooth major capital needs rather than subsidize structurally recurring expenditures. General Fund Expenditures General Fund expenditures and transfers total $57.7 million in FY 2027. The largest functional areas are police, public works, parks and recreation, general fund capital improvements, and debt service. The budget preserves service levels across operating departments while also providing targeted capacity increases in selected areas where service demand or implementation needs are rising. Expenditure growth is driven primarily by compensation and benefit adjustments, operating inflation, additional public safety and parking enforcement capacity, and planned capital investment. The budget also supports policy priorities such as downtown economic development, housing coordination, and transportation improvements. General Fund capital improvements total $9.0 million, underscoring the degree to which the budget serves not only as an operating plan but also as a capital financing document for near-term project delivery.

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