Town of Blacksburg Adopted Operating Budget FY 2027

Figure 2. FY 2027 General Fund expenditures by function. Source: Town of Blacksburg FY 2027 Operating Budget.

Personnel and Employee Compensation Maintaining a competitive compensation structure remains central to the Town's workforce strategy. 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. In combination, these changes provide a 4% total compensation increase for eligible employees. Benefit costs also increase in FY 2027. Health insurance premiums rise 7%, representing the first increase in four years, and the Virginia Retirement System contribution increases 15% as the Town enters the first year of a new two-year rate cycle. Despite these pressures, the budget continues to fund compensation adjustments that support recruitment, retention, and internal equity. The budget adds four new full-time Police Department positions and supports transit expansion through eight new full-time bus operator positions and two full-time transit dispatcher positions. These investments reflect both service demand and the need to sustain operational resilience in labor-intensive public services.

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