Radford City to advertise budget and proposed tax and fee increases after managers flag multi‑million revenue shortfalls

Radford City Council agreed to advertise the proposed fiscal 2026 budget and upper limits for several taxes and fees after interim City Manager Craig Meadows told the council the city faces recurring revenue shortfalls that must be addressed to keep the general fund balanced.

Meadows said the city’s recent detailed review showed selected revenue lines — notably real estate taxes, sales and use taxes, charges for rescue services, state and federal health-and-welfare reimbursements — have consistently trailed budget estimates, producing gaps that have prevented the city from rebuilding reserves. “We have to place the advertisement for the public hearing,” Meadows said, adding the council must set advertised upper limits for the real‑estate tax and utility fee changes before the public notice is posted.

The council agreed to advertise an upper threshold of 82¢ per $100 of assessed value for the real estate tax (the interim manager proposed 79¢; Councilmember Foster asked that 82¢ be advertised as a possible maximum). Meadows and council members described that 10¢ would generate roughly $1.2 million; the additional 3¢ to reach 82¢ would generate about $360,000. The advertised limit is only an upper bound: the council may set a lower rate after the public hearing but cannot adopt a higher one than advertised.

Why it matters: Meadows told the council the general fund for fiscal 2025 shows a large net shortfall when compared with earlier budgets and that persistent overestimates on a handful of revenue lines left the city unable to rebuild reserves. He said the FY2026 proposal reduces the city’s general fund spending compared with the current year while relying on revised, more conservative revenue estimates. If the advertised rates are approved after the public hearing and readings, staff said the FY2026 budget would be balanced on paper, but would not erase the current multi‑million dollar…