State: Radford meets criteria for fiscal distress

Radford – The City of Radford has been notified by the Virginia Auditor of Public Accounts (APA) that it meets the criteria for fiscal distress under the Commonwealth’s early warning system.

City leadership appreciates the collaborative and transparent process conducted by the Auditor’s Office and welcomes the opportunity to continue working with state partners to strengthen Radford’s financial position and ensure long-term stability.

The City of Radford has already taken proactive steps to address the challenges identified in the report:

• The City has engaged The Berkley Group to provide consulting services focused on improving financial operations and long-term planning.

• Radford has contracted with Brown Edwards to conduct forensic audit services, enhancing financial transparency and accountability.

• The City has strengthened its financial leadership team through the hiring of a new Chief Financial Officer, Assistant Finance Director, and Accounts Payable Clerk.

• The City Treasurer and Commissioner of Revenue Offices are in the midst of migrating their financial operations to Munis, the City’s Enterprise Resource Planning (ERP) software, which will improve financial reporting, internal controls, and coordination across departments.

• The City has implemented improved and more conservative methodologies for revenue forecasting to ensure more accurate and sustainable budgeting practices moving forward.

In addition, the City has made measurable progress in addressing its obligations related to wholesale electricity costs. At present, Radford has reduced its outstanding balance with American Electric Power (AEP) from six months to three months, reflecting ongoing efforts to stabilize the City’s electric fund and meet its’ financial commitments.

City officials remain fully committed to resolving structural budget challenges, improving operational coordination, and ensuring the long-term sustainability of municipal services. The City also supports the Commonwealth’s consideration of targeted assistance and advisory services, which will complement the actions already underway.

The City will continue to provide updates to residents and stakeholders as additional progress is made.

You may find the official letter from the Auditor of Public Accounts here: