Radford Council Approves FY2027 Budget With Tax and Utility Hikes
City Council approved the $80.1 million FY2026-2027 budget, including a 2-cent real estate tax increase and 5% electric rate hike — the third consecutive year of increases as Radford addresses its "fiscal distress" designation.
The Radford City Council voted to approve the FY2026-2027 budget totaling $80,135,986, a 2.7% increase over the prior year. The budget includes a 2-cent real estate tax increase (from 82 to 84 cents per $100 assessed value) and a 5% electric bill increase.
Water rates will also climb by $3 per 1,000 gallons, raising the minimum charge for 4,000 gallons from $24.32 to $36.32. Council Member Jessie Foster was the sole dissenter on the tax rate, advocating for a larger 3-cent increase to build reserves faster.
City Manager Todd Meredith noted the budget is the first in several years to be balanced solely from the city's own revenues, without borrowing or relying on reserves. The city has also frozen 20.5 positions for an estimated savings of $1.7 million and postponed the north New River crossing project, saving $250,000.
The council also approved $90,000 for implementing the Lean Six Sigma continuous improvement model to streamline city operations. Meredith stated that an additional 40-cent increase in the real estate tax rate would eventually be needed to fully eliminate reliance on enterprise fund transfers.
Vice Mayor Seth Gillespie, who is running for mayor, emphasized the need for a five-year financial plan focused on sustainable economic development rather than solely increasing taxes. Mayor David Horton described it as the "best budget we have had" in over eight years.