City Council Moves Forward with Budget, Taxes and Rates

By DAVID QUESENBERRY

Patriot Publishing

At its meeting on Monday, April 14^th, Radford City Council conducted public hearings on the proposed FY 2026 City Budget, including the Radford City School Budget, and the proposed increases in the Real Estate Tax and various service fees. Afterwards Council in a first reading of the budget, approved the proposed budget along with tax, rate and fee increases.

Council first heard a presentation on the 2026 school budget from School Superintendent Dr. Adam Joyce.

For the Fiscal Year 2026, the proposed budget for the schools was $50,298,738. Joyce reported that the Local Composite Index for Radford had dropped to .1658 – meaning that Radford is able to fund 16.58 percent of its K-12 education costs with the state covering the remaining 84 percent of funding. Joyce noted that the City’s LCI index was one of the lowest ratings in the state.

Joyce then discussed with Council the Local Required Match Program to which localities may contribute to participate in state funded programs.

These programs include At Risk Add On; 3 percent pay increase for SOQ staff; the Virginia Pre-School Initiative; class size reduction and additional funding for special education.

To buy into these programs would cost the City $1,383,588, which would qualify the City for an additional $6,960,049 in state and local funds.

The proposed city allocation for the schools was reduced approximately $600,000 from $5.8 million to $5.3 million in the city’s proposed budget.

Mayor David Horton said this was the first time that he had heard that a local match was required above the Local Required Effort. Joyce replied that the schools had never been told that they were just getting the local required effort.

For the City’s budget, Meadows said the total budget for FY 2026 was at $77,262,257 a decrease from the current year’s approved budget.

On proposed tax and fee increases, Meadows said at this time no increases in the rates for the Electric Fund were planned, but Council would review it in the next 30-90 days to see if adjustments were required.

The four dollar per month increase in water and wastewater rates for users of 4,000 gallons would increase the monthly utility charge by $8.00 per month or $96.00 per year. Combined monthly charges for customers for 4,000 gallons of water and wastewater use would rise from $52.80 to $60.80. The proposed three dollar increase in the monthly solid waste fee from $22.00 to $25.00 a month would cause increases of $3.00 per month or $36.00 per year.

With respect to real estate taxes, Meadows said that a home assessed at $250,000 which currently pays $1,725 would see their tax bill rise to $1,975 at the proposed rate of 79 cents and $2,060 at the advertised rate of 82 cents.

This would result in an annual increase of $250 at 79 cents and $325 at 82 cents.

Total tax and fee increase on a home assessed at $250,000 at 79 cents would see an annual increase of $382.

After the budget presentations, Council held a public hearing on advertised taxes, fees and rates for the upcoming year. No comments were received.

Council then opened a second public hearing concerning the 2026 Budget, which included the School Budget. Speakers expressed concern over the school budget and urged that it be protected from reductions. Some said they moved to Radford partly on account of the reputation of its schools and that it was a prime asset of the City. Others feared that the school system would move backwards if the reductions were allowed.

School Board member Chris Calfee told Council, “We don’t have a revenue issue, we have a communications issue. We’re looking for someone to blame. We have a political problem.” Calfee claimed that budget and financial information was not shared with some parties.

“Stop playing politics,” he said. “These are our children, our future and our City. If we can find funding for preferred items, we can certainly find funding for required items.”

School Board Chairperson Gloria Boyd, who joined the school system in 1999, said she saw a drastic demographic shift with the school population served.

“Our teaching methods had to change,” she said. “The services these children needed became more and more necessary for them to thrive in the school environment. I know our children need every single thing we can possibly give them, every single support we can possibly give them.”

After the public hearing Council ended the work session and reconvened in a regular session to consider a first reading of the 2026 budget as well as proposed tax rates and fees.

Council voted unanimously to approve Ordinance 1813 setting the following tax rates: Real Estate – 82 cents; Tangible Personal Property – $2.55; Meals Tax – 6.5 percent; Cigarette Tax – 41 cents per pack; and the Hotel Occupancy Tax – 8.5 percent. The rates as proposed for adoption would provide nearly $721,000 in additional revenue.

Council next voted to approve Ordinance 1814 setting the following fees: a four dollar increase in the water and wastewater fees; a three dollar increase in solid waste fees; site plan and engineering review – $300; subdivision plat – $50; zoning confirmation letter – $25; and Comprehensive Plan amendment – $250.

Council also approved Ordinance 1815 for a City Budget of $77,362,257 and a School Budget of $50,298,738 with the conditions suggested by Vice-Mayor Seth Gillespie that a hiring freeze be in effect for the entirety of the 2026 budget year which includes a $500,000 in cost reduction for personnel related costs in the General Fund and a ten percent cut in Council pay for 2026.

None of the proposed budgets or increases may take effect unless Council votes to approve the ordinances again at the second reading, scheduled for 6:00 p.m., Monday, April 21, 2025 in the Council Chambers of the Radford City Hall at 10 Robertson Street.