Radford Council Considers Budget Changes
By DAVID QUESENBERRY
Patriot Publishing
At a special Monday night budget session, the Radford City Council considered proposed budget cuts and reviewed potential revenue increases for the FY 2026-2027 budget which they requested at the last budget session.
City Manager Todd Meredith said that in line with Council’s request to find more budget cuts, staff had worked the past week reviewing the budget for further reductions. Over the past week, Meredith said the staff identified an additional $391,535 in cuts from the various funds of the City.
The reductions were as follows: General Fund $81,026; Water/Wastewater Fund $47,878; Electric Fund $258,745; Solid Waste $3,886 and Internal Services $58,798. The Internal Services amount is spread throughout the other funds and is not included in the final total.
The reduction in the Electric Fund of $250,000 was caused by deferring line repair across the New River.
“Those savings have been adjusted in the budget” Meredith said, “with keeping those in the fund balance so that the City can benefit from those and invest in capital and fund balances.”
Meredith then reviewed for Council the changes to the larger funds where cuts and some increases were added.
Major expenditures added to the General Fund included Legal Services, $50,000; Independent Auditor, $21,400; Park Maintenance $15,000 and transfers to the Capital Improvement Plan of $18,667.
Major reductions included Electoral Board Computers, $56,000; position reduction in parks and part-time wages in the library; $105,493 and a decrease in Internal Services of $17,532. The increases and cuts left the General Fund with $81,026 for reserves.
Mayor David Horton, noting the cuts for computers reminded Council that these computer upgrades would have to reconsidered at a future date. Meredith said that despite the reductions in the library, he felt there would not be any reduction of operating hours.
“We think we can make it work” he said.
Concerning the Highway Fund, Meredith reminded Council that this was a “wash” since funds were received from VDOT. Line items noting increases were VDOT Eligible increased construction contracts, $344,663; adding one Laborer I position to Public Grounds, $57,622. Reductions were noted in internal services, $3,598 and transfers to reserves $398,696. Transfers from the Highway Fund were reduced because the City planned to use these funds for paving projects.
An increase of $9.00 for health care was noted prompting a question from Vice-Mayor Seth Gillespie as to whether or not there would be no additional cost for health care for the employees for this year. Meredith confirmed there would not be an increase for employees. There was an increase of $12,000 in the budget for health insurance, but this was being covered by the City and not passed on to employees. The premiums for this year did not increase, but the deductibles increased from $1,000 to $1,500.
The Water/Wastewater Fund saw decreases in personnel, $31,557 and internal services, $16,331. These decreases allowed a savings for reserves of $47,878.
The Electric Fund saw decreases in Line Construction, $250,000 and internal services, $8,758.
The savings on line construction came from having the $500,000 transmission line project across the New River split between two fiscal years. The reduced expenditure allowed the fund to increase its transfer to reserves of $258,745. Mayor Horton asked if the decrease in Internal Services was caused by holding off maintenance. Meredith responded that it reflected the decision not to staff a mechanic’s position in the garage. If the volume of work became excessive, then the repairs would be sent out to a garage.
The Solid Waste Fund saw an increase in Refuse Collection of $58,693 to fill a Sanitation Worker I position. The increase was offset by a decrease in Refuse Disposal of $50,000 for mulching services.
Meredith noted that he had discussions with the Fire Chief who suggested that a controlled burn could be used instead of contracting for mulching services. Meredith said that since the mulching had not been done this year, there was the potential to recognize a total savings of $100,000 spread over two fiscal years. Overall, the Solid Waste Fund could transfer $3,886 to the reserves.
Meredith then reviewed a table showing the various revenue outcomes from having a 2-cent; 3-cent and 4-cent increase in the real estate tax rate coupled with a $2.00, $2.50 and $3.00 minimum water rate increase for 1,000 gallons. For each one cent increase in the property tax, the City would receive $118,000 while for a $1.00 increase per 1,000 gallons in the minimum rate for water, the City would receive approximately $447,000.
Each proposed level of real estate tax less than the proposed 5 cent would result in a revenue decrease that would have to be made up from transfers and payments in lieu of taxes from the enterprise funds (Water, Electric and Solid Waste). It would also result in increased transfers to Water reserves.
Councilman Guy Wohlford said he only proposed going up to $2.00 per thousand gallons, which would raise the minimum charge for 4,000 gallons to $32.32 ($8.00). His thought was that the City was trying to get to a $48.00 minimum charge for 4,000 gallons to make the City eligible for grant funds. This could be done by raising the minimum charge for 4,000 gallons by eight dollars for three years.
“I don’t think I like seeing going up to $34.00 this year,” he said.
Meredith then outlined the next steps in the budget process which were:
- April 21st: Public hearing and first reading of ordinances for the budget, tax rates, utility rates and fees.
- April 27th: Optional Budget Work Session
- April 28th: Second reading of ordinances for budget, tax rates, utility rates and fees.
Following the presentation, Mayor Horton asked the other members of Council for their thoughts.
Councilman Wohlford said he favored the 2-cent increase in the real estate rate and $2.00 increase per thousand gallons of usage resulting in a minimum water charge of $32.32.
Councilwoman Jessi Foster expressed her concern that there “was no contingency plan in some of the rates we’re proposing. If anything goes wrong then we are looking at taking another RAN (Revenue Anticipation Note) out or creating another crisis. You try not to plan your own household that way without any contingency for emergencies.”
Vice-Mayor Gillespie said he could support the 2 cent increase in real estate and the proposed $2.00 increase in the minimum charge for 4,000 gallons. He acknowledged that over the last three years the City had done what he termed “a ton of heavy lifting” in potentially raising the real estate rate 20 cents with the goal of getting off transfers to the General Fund. He recognized that there would have to be moderate increases over time.
“Long term, I think we absolutely have to be able to rebuild our reserves. We have to continually replace things. I just think we have to do that moderately. We have water tanks, we have equipment all those things have to be addressed, but it has to be done in a moderate fashion.”
Councilwoman Kelli Artrip said she was concerned the City would find itself in the situation where it did not not have the funds to fix problems. She said that the information received had given her more to think about.
“I want to make sure that we can take care of our citizens, and that means providing services like water and trash and things like that and also means making sure that they can provide food to go on their table and roofs over their heads.”
Mayor Horton asked Meredith to prepare an estimate using the 2-cent real estate tax increase and the $2.00 increase per 1,000 gallon in line with his existing estimates submitted earlier to Council. He also asked for a review of what could be set aside for emergencies, needed purchases, and for issues the City already has.
Councilwoman Artrip asked Meredith how the proposed 2 cent, $2.00 increase would affect the budget he originally submitted. He responded that while it would be a step ahead of the last two budgets, cash flows would remain very tight, fund balances would be lower and dependence on transfers would remain.
If anything happened, then the City would have to secure a loan to deal with the situation.
The next scheduled meeting of the Radford City Council will be a special budget meeting on 6:00 pm, Tuesday, April 21, 2026 in the Council Chambers of the Radford City Hall to conduct a public hearing on the proposed FY 2026-2027 budget and all rates proposed for the coming fiscal year.
April 17, 2026 @ 5:47 am
let’s see…
Based on my Water Usage I Believe Y’all Should Be A Refund At The END Of EACH MONTH
I use my dishwasher one day a week on the one hour setting
I run two loads of clothes (using the single rinse selection) through my clothes washer
I take one 10-minute shower each day (two on lawn-mowing day)
if things are going well I might flush my toilet five times a day. okay let’s call it six.
I drink three 12- ounce cups of coffee every morning and three, maybe four, 16 – ounce cups of MIO flavored water during the day
My dogs get a fresh bowl of water every morning
I water my two indoor house plants every five days or so
I DO NOT water my lawn but I DO spend 20 minutes twice a week watering various flower beds.
I DO NOT have a swimming pool but I have been known to hose down the dogs when necessary.
I DO power-wash my decks, gutters, outside windows and vinyl siding – once in the spring. once in the fall.
IF you want to make some money, REAL MONEY, then charge a $10 fee for Yard Sales and this is where you can really get rich…
if they post signs throughout the city advertising their yard sale then force them to take them down the day after the event if not write them a ticket let’s say $30 for each send still hanging two days after the event. You already have all the information you need ( like address) And will definitely increase revenues because nobody takes this crap down.