Town of Blacksburg Adopted Operating Budget FY 2027

Debt Service and Long-Range Planning General Fund debt service totals $3.36 million in FY 2027. Town policy is to target annual debt service costs at less than 10% and no more than 15% of General Fund net operating expenditures. The budget document reports that the FY 2027 debt-service-to-net-operating-expenditures indicator is projected at 9.87%, which remains within policy and reflects continued adherence to conservative debt management practices. The budget also benefits from a clearly articulated long-term planning framework. The Town maintains a five-year financial forecast and a five-year Capital Improvement Program, both of which are important GFOA elements because they connect near-term budget choices with future operating and capital capacity. This framework is particularly important as the Town plans for recreation, utility, transportation, and public safety investments in a higher-cost environment. Capital Improvements and Enterprise Funds Capital improvements remain a defining feature of the FY 2027 plan. The General Capital Improvement Fund increases substantially, and the General Fund includes $9.0 million of capital outlay. Across the organization, these appropriations support transportation improvements, public facilities, equipment replacement, and utility system needs. This pay-as-you-go emphasis is consistent with policy guidance calling for annual capital funding as a percentage of General Fund revenues and helps reduce reliance on debt for smaller recurring capital needs. The Town's enterprise and internal service funds continue to operate with a cost-recovery focus. The Water and Sewer Fund budgets $18.2 million in expenditures and reflects higher operating costs at regional authorities, inflationary cost pressure, and ongoing renewal needs. Transit grows to $29.6 million as the system responds to continued ridership demand. The newly established Rescue Fund adds transparency by segregating rescue-generated revenue and related expenditures in a dedicated special revenue fund. Utility rate adjustments in FY 2027 are targeted and policy driven. Water and sewer rates each increase 6%, solid waste and recycling rates increase 7%, and stormwater rates remain unchanged. The budget notes that the average customer using 6,000 gallons of water per month can expect an increase of approximately $8.40 per month.

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