Radford City Council adopts tax and fee increases, approves hiring freeze and related budget measures

Radford City Council on Monday approved a package of tax and fee increases and a package of budget measures intended to close a projected shortfall in the city’s fiscal 2026 budget. The council voted to raise the real-property tax rate to 82 cents per $100 of assessed value, increase several user fees and utility rates, initiate a hiring freeze for the 2026 budget year, and adopt related ordinances and appropriations.

The tax change and related fees are intended to reduce the city’s projected deficit while also helping cover a spike in employee health-insurance costs. At the 82¢ rate, council members said the city would generate about $363,000; $165,000 of that was designated to help offset employee health-insurance increases and the remainder was directed toward reserves to reduce the budget shortfall. Councilors described the measure as a compromise to protect city services and partially cover rising personnel costs.

Councilors discussed several other revenue and fee adjustments: a proposed increase in the tangible personal property rate from $2.44 to $2.55 per $100 of assessed value (an estimated $80,000, the city said, subject to vehicle values), a 1-percentage-point increase in the meals tax to 6.5%, a proposed cigarette-tax change to 41¢ per pack, and a 0.5-percentage-point increase in the hotel-occupancy tax (to 8.5%). City staff also presented ordinance 18-14, which raises utility and service fees: wastewater would increase from $32.48 to $36.48 per 4,000 gallons, water from $20.32 to $24.32 per 4,000 gallons, and the solid-waste fee from $22 to $25; several land-use and planning fees were also raised (site-plan review, engineering review, subdivision plat fees and others).

Council discussed personnel measures in tandem with revenue changes. Members approved a hiring freeze for the 2026 budget year that would keep vacant positions from being filled automatically; each vacancy would require department director and city-manager review and council approval before refilling. Council also proposed a 10% reduction in council pay for fiscal 2026; the mayor said staff would review legal options for how that would be implemented, including an option some jurisdictions use where the elected official keeps the official salary but gives a voluntary contribution back to the city.

The council reviewed the proposed budget totals during the meeting: the city budget presented to council totaled $33,122,947 and the schools’ appropriation was listed at $50,298,738; council members said small adjustments might remain before final adoption. Councilors also discussed the possibility of a second meeting if further adjustments were needed and decided to continue the process at a scheduled meeting the following Monday.

Votes at a glance: - Proclamation: Medical Laboratory Professionals Week (April 20–26, 2025) — motion to adopt proclamation approved (unanimous vote). - Appointment: Melissa Skelton named as Radford’s alternate to the New River Valley Regional Rail Authority — motion approved (unanimous vote). - Tax rates: real-property tax increased to 82¢ per $100 of assessed value; tangible personal property and other tax changes as presented — motion to adopt tax rates approved (roll call recorded as affirmative votes; council recorded multiple "yes" responses). - Ordinance 18-14 (rates and fees): adopted as advertised; includes water, wastewater and solid-waste increases and higher land-use fees — motion approved (roll call yes votes). - Ordinance 18-02.27 (CIT/Marcus Alert grant): acceptance and appropriation of $33,441 grant to support a police–clinician response program — motion approved (4 affirmative votes were noted during the vote). - Ordinance 18-15 (appropriation ordinance, amended to include hiring freeze and related cuts): motion approved (roll-call yes votes).

Councilors who spoke during the budget discussion included Councilor Kelly Foster, Councilor Wilkins, Councilor Gillespie, Councilor Seth, Councilor Jesse and Councilor Kelli; Craig (city manager) and Jenny (city clerk) provided financial and procedural details. Councilors repeatedly emphasized the trade-offs between cuts and revenue and the goal of protecting employees and essential services while reducing the deficit.

Councilors and staff stressed that several estimates (revenue generation and insurance-cost offsets) are subject to change and will be finalized before a subsequent reading and final adoption of the fiscal-year budget.

The council said it will continue work on the final budget and encouraged public attendance at the next scheduled meeting, when the formal reading of the budget will occur.