The Blacksburg Town Council will hold a public hearing on the fiscal year 2027 budget at its regular meeting on Tuesday at 6:30 p.m. The hearing will cover two ordinances: Ordinance 2113 is for adopting the budget recommended by the town’s administrative staff; Ordinance 2114 is for increasing fees for water, sewer, solid waste and recycling services.
FY 2027 budget includes upgrading emergency radio communications system
The recommended budget for FY 2027, which runs from July 1, 2026, to June 30, 2027, is $125,655,488. The balance is outlined on page 18 of the 220+ page recommended budget document:
- Estimated beginning fund balance on July 1, 2026: $44,528,645
- Estimated revenues: $114,551,924
- Estimated expenditures: $125,655,488
- Estimated ending fund balance on June 30, 2027: $33,424,881
The recommended budget specifies allocations across 12 funds. The three largest funds are the General Fund ($57,716,491), the Transit Fund ($29,575,826) and the Water and Sewer Fund ($18,193,869).
The FY 2027 budget is approximately $17 million more than the FY 2026 budget, which was $108,349,500. The three largest increases by percentage are the General Capital Improvement Fund, which goes up by about 86%; the Stormwater Fund, +55%; and the Transit Fund, +19%.
The recommended budget also establishes a new Rescue Fund to track all rescue squad revenues and expenditures.
In addition, the recommended budget allocates funding for upgrading Montgomery County’s emergency radio communications systems in conjunction with the New River Valley Emergency Communications Regional Authority. The project “addresses ongoing issues of capacity, coverage, clarity, and lack of security experienced with the current outdated technology,” according to the budget document. As part of the project, new radios will be purchased for Blacksburg’s Fire Department, Rescue Squad and Police Department.
Opening a retail incubator, providing cost-of-living increases for town employees
Initiatives funded in the recommended budget include opening The Local @414, a downtown retail incubator offering affordable space for start-up businesses; increasing town employee compensation by 4%, including a 2% increased cost-of-living expense; and continuing to support the New River Valley Housing Trust Fund for affordable housing.
In the budget’s introductory letter, Town Manager Marc Verniel highlights the addition of four new full-time Police Department positions plus funding to support the growth of Blacksburg Transit, which has operated fare-free since 2020.
Verniel wrote, “This budget was prepared by town staff and serves as the Town’s financial plan for the upcoming fiscal year, providing the resources needed to support the high-quality services and initiatives the Blacksburg community has come to expect. Its development is guided by Town Council’s Strategic Goals and the Town’s Principles of Sound Financial Management.”
Copies of the recommended budget are available at the Blacksburg branch of the Montgomery-Floyd Regional Library, as well as in the town clerk and town manager offices. The digital version can be accessed at www.blacksburg.gov/budget.
Breaking down the utility fee increases
The recommended budget states that fee increases for water, sewer, solid waste and recycling are “driven primarily by inflation in electricity, fuel, labor, and operating supplies and equipment.”
If the budget is adopted, water and sewer rates will increase by 6%. Solid waste and recycling rates will go up 7%.
The fee increases are published in Ordinance 2114 and include the following per month:
- Water within corporate limits will increase from a flat billing service charge of $3.24 to $3.43 plus a rate increase from $8.54 to $9.05 for each 1,000 gallons or fraction thereof.
- Sewer service for customers served by the town water system inside corporate limits will increase from a flat billing service charge of $3.27 to $3.47 plus a rate increase from $7.36 or $7.80 for each 1,000 gallons or fraction thereof.
- Solid waste collection for each dwelling unit will increase from $32.67 to $34.96.
- Recycling collection will also increase from $32.67 to $34.96.
Overall, the average Blacksburg utility customer with 6,000 gallons of monthly water usage can expect an increase of approximately $8.40 per month, according to page 4 of the recommended budget.
Town council to vote in two weeks
Town council will take action on adopting the budget and increasing utility fees on April 28, two weeks after Tuesday’s public hearing. This week’s hearing and council meeting will be held at the Blacksburg Municipal Building at 300 S. Main St.
