On Monday, the Roanoke City Council will hold a public hearing to adjust the FY25 budget to reflect over $16 million in extra revenues collected. The extra revenue, Margaret Lindsey, the city’s director of finance, said, will roll into the fund balance and will be used to pay off some of the city’s overspending on overtime.
She said the city spent $6.7 million in overtime, on a budget of $1.8 million. $4.25 million of the extra revenue will be used to pay off overtime spending.
“This won’t cure all of that differential, but it’ll definitely help,” Lindsey said.
She said this amount of extra revenue is unusual, and while the FY26 budget is already set in stone, additional revenue like this will be monitored to consider during the FY27 budget development season, beginning in July.
Most of the extra revenue, Lindsey said, comes from delinquent real estate taxes, which added up to a little over $3 million, and the other piece comes from Children Services Act funding from the state.
She said last year, the city requested $2 million from the state for CSA funding. The city received $8.1 million to reimburse payments already made — CSA is mandated by the state.
Some of these extra revenues must be allocated toward the same category they came from, Lindsey said, but some, like the real estate tax items, can be used wherever they are needed.
“Our first priority was trying to cover as much overtime as possible,” Lindsey said.
A public hearing is required because the budget adjustment is in excess of 1% of the total general fund.
Monday’s public hearing, at 7 p.m., follows a regular council meeting at 2 p.m. Those interested in seeing the full agenda can read it here. The meeting will be held in council chambers at 215 Church Ave. S.W. in Roanoke. The meetings will be livestreamed through Facebook.
