Radford Designated in "Fiscal Distress" by State Auditor

In March 2026, the Virginia Auditor of Public Accounts (APA) officially designated the City of Radford as being in "fiscal distress," a status that qualifies the city for state-provided expertise and financial guidance.

The designation stems from years of financial challenges, including heavy reliance on enterprise fund transfers from water and electric accounts to balance the general fund, a near-total absence of reserves, overestimated annual budgets since 2023, and late funding for public schools.

Contributing factors include the closure of key businesses, approximately half of the city's property being tax-exempt (including Radford University land), and an ongoing lawsuit by Pulaski County to end a revenue-sharing agreement in Fairlawn that provides Radford about $200,000 annually.

The city had previously used an unusual $4 million loan to cover bills and fell behind on millions in back payments to American Electric Power (AEP) for wholesale electricity, though City Manager Todd Meredith reported the outstanding balance has been reduced from six months to three months.

A forensic audit firm was selected in March, and a state-paid consultant could assist if the governor and legislative committee approve an improvement plan. A decision on the state support plan is expected by late spring to early summer 2026.