Town of Blacksburg

December 9, 2025

The Honorable Mayor and Members of Town Council Members of the Planning Commission Town of Blacksburg

300 South Main Street Blacksburg, VA 24060 Dear Mayor, Members of Town Council and Members of the Planning Commission: We are pleased to present the Recommended FY 2027-2031 Capital Improvement Program (CIP) for your review and consideration. The CIP provides a snapshot of the Town's current financial condition, forecasts future revenues and expenditures, and outlines plans for major capital projects over the next five years. Recommended projects are guided by Town Council's Strategic Goals, the Comprehensive Plan, departmental needs assessments, and citizen feedback. Current economic conditions have improved significantly compared to recent years. Inflation has declined from decades-high levels, and Town revenues have returned to pre-pandemic growth rates. The Town's fund balances remain healthy and exceed minimum requirements set in the Town’s financial policies, enabling the Town to fund cash-financed capital projects. After peaking at 7.7% in 2023, inflation has moderated to 3% as of September 2025. Despite this improvement, construction bids continue to come in higher than expected. We are factoring these elevated costs into our estimates for future capital projects. The Town has completed several major capital projects in recent years, including a new police station, a 300-space parking garage, a multi-modal transit facility, bicycle and pedestrian improvements, park and streetscape enhancements, and infrastructure and building maintenance work. Additional projects funded by the American Rescue Plan Act of 2021 (ARPA) are also nearing completion: the Meadowbrook Greenway, the North Main Street Trail, retail co-op renovations at 414 North Main Street, and repaving and widening sections of the Huckleberry Trail. Many projects in the Recommended CIP are either ongoing from previous capital budgets or maintenance-focused initiatives necessary to preserve the Town's investment in existing infrastructure. In developing the CIP, staff balanced these maintenance needs with quality-of-life improvements for Blacksburg residents. Significant projects in this year's CIP include design and construction of an over-under deck on the Progress Street lot downtown, major improvements to youth and adult athletic fields, and the Draper Road Streetscape Project.