The Martinsville City Council will hear residents’ opinions about a no-frills budget for fiscal 2026-27 when it meets on Tuesday.
If approved, the nearly $122 million budget that would take effect July 1 is about $5.5 million less than the original current-year budget, even with tax and fee increases.
The spending plan includes:
- Raising the real estate tax from 75 cents to 84 cents per $100 of assessed value. The bill on a property worth $100,000 would increase by $90. The bill on a property worth $200,000 would increase by $180.
- A $5 increase in each tier of garbage collection rates, aimed at restoring that operation to pay for itself. Without it, trash collection would mean the city would lose more than $175,000 in the coming fiscal year, according to City Manager Robert Fincher. The current household monthly bill for weekly trash pickup is currently $20.60.
- Changing electric rates by raising the power cost adjustment by 6%. A home using 1,000 kilowatt hours per month would see the monthly bill rise from $176.38 to $186.78.
Spending cuts include:
- A city employee hiring freeze, affecting nine vacant positions and any future vacancies, but not affecting public safety agencies.
- Reducing local school funding to the previous year’s level. The proposed schools’ budget is $33 million, an increase of about $1.22 million compared to the current-year budget, but that amount includes state-supported pay raises.
- Cutting departmental spending on items such as office supplies, travel and training, eliminating duplication of software costs, then asking each department to come up with additional cuts of 4%.
- Asking employees to absorb part of the cost of a 20% group health insurance rate increase.
The administration plans to offer employees a cost-of-living pay adjustment to match state workers’ raises. However, the General Assembly has yet to pass a state budget.
Competing proposals would give state workers and public school employees either 2% or 3% raises.
According to Fincher, who became city manager in March, the budget process was complicated by last year’s revenue being overestimated by $1 million, while spending was underestimated by $4 million. Also, Fincher has noted that city revenue has lagged behind rising costs since 2020.
A public hearing on the proposed budget will begin at 7 p.m. Tuesday at the municipal building, 55 W. Church St.
