Heather Bell
RADFORD – Radford City Manager Todd Meredith has presented a proposed budget for fiscal year 2027 to the members of the Radford City Council, including a five-cent real estate tax increase, and increases to the city’s water and electric rates.
The proposed budget is balanced, with a general fund of $35,380,494. Of that total, $10,719,953 is spent on public safety, $7,320,466 on education (with $5.994,142 of that to Radford City Public Schools for the locally required effort), $4,502,529 for general administration, $2,180,484 to judicial administration, $1,441,445 to public works, $4,314,019 to health and human services, $2,997,054 to parks, recreation and culture, $468,896 to community development (planning, economic development, etc.) and $1,435,651 for non-departmental expenses (including debt service and other expenses).
The proposed budget would increase the real estate tax rate from 82-cents-per-$100 in valuation of a property to an 87-cent rate. That would take the yearly property tax bill for a $200,000 property from $1,640 to $1,740, a $100 increase. For a $300,000 home, that increase would be $150 annually. Comparatively, surrounding localities rates are: $1.18 for the City of Salem, $1.02 for the Town of Blacksburg, 90-cents for the Town of Christiansburg, $1.10 for the Town of Pulaski, 98-cents for the Town of Dublin and $1.02 for the Town of Pearisburg.
The budget proposed by Meredith called for a one-dollar increase for every 1,000 gallons of water, which would translate to a $4 change in the monthly minimum 4,000-gallon charge per customer, from $24.32 to $28.32, with an additional one-dollar increase for every 1,000 gallons used above that minimum. However, Council member Guy Wohlford, echoed by Council member Kellie Artrip, called for an advertised rate not to exceed $47.79 per month for a minimum charge, which is the “target user rate” needed for a locality to qualify for grants for water system infrastructure projects. The city has an aging water system and grant funds could assist in getting those infrastructure needs addressed.
Council members agreed on the not to exceed rate of $47.79, but Mayor David Horton said the advertised rate does not mean the majority of council members would go along with that kind of rate increase. Vice Mayor Seth Gillespie said with the prices people are paying at the gas pump, in grocery stores and for other needs, households are struggling.
The budget also includes a change to the minimum customer charge for an electric account from $7.02 a month to $20 a month, and an increase of 4.2 percent to the electric rate. Meredith said the current bill for 1,000 kilowatt hours is $173.03 and the new bill would be $180.30 with the change. That includes the current rate for the wholesale power cost adjustment, which is a pass-through charge paid to AEP and from which the city does not profit.
Council member Jessie Foster said while she does not like to see any increases in taxes and rates, the City of Radford has some of the lowest rates for taxes and utilities of any surrounding locality.
City council members had a special meeting to continue work on the budget scheduled for Monday, April 6 and a public hearing for the budget and rates set for Tuesday, April 21 at 6 p.m. in council chambers, 10 Robertson St., Radford. There is also a regularly scheduled city council meeting on Monday, April 13 at 7 p.m., also in council chambers.
