Heather Bell
RADFORD – Radford City Council finalized the city’s 2021-22 budget Monday, unanimously passing the budget ordinance at its regularly scheduled meeting.
The budget includes a six-cent increase on the real estate tax rate, bringing the rate to 84-cents-per-$100 of a property’s value. The increase is wholly to provide funds for the debt service on the McHarg Elementary School renovation and expansion project. The yearly $880,000 debt service payment requires 9.46 cents on the tax rate.
“Finding $880,000 for debt service is extremely challenging,” said Mayor David Horton regarding the tax increase prior to city council’s first vote on April 14. “This is never an easy decision to make.”
“This is something we have planned on for a long time,” added Vice Mayor Naomi Huntington. “The increase is driven by the McHarg project.”
All other tax rates, utility rates and fees, such as electric, solid waste, water, sewer, personal property, machinery and tools, among others will remain the same. The $28,726,722 general fund includes a four percent pay increase for city employees.
City council is considering a possible increase to the tobacco and cigarette tax which would go into effect on July 1 if council opts to move forward with it. Currently, the city’s city’s tobacco tax rate is 15-cents per pack of cigarettes. The state allows for up to 40-cents per pack.
“We’ve been looking at different rates among the surrounding localities,” said Radford Mayor David Horton. “We are looking at two cents per cigarette, 40 cents a pack, which is the maximum.”
Radford City Manager David Ridpath said the city’s tobacco tax rate has been the same for more than a decade. Council scheduled a public hearing for May 10 to hear comments about the possible rate change.
