Roanoke council adopts FY26 budget, reaffirms real estate tax rate after budget shortfalls disclosed

Roanoke City Council adopted the city's fiscal year 2026 budget and related appropriations on May 12 and reaffirmed the existing real property tax rate, after council members described previously undisclosed shortfalls and deferred maintenance that the city must address.

The vote on the budget ordinance was 5-1, with Councilor Hagen the lone dissenting vote. Mayor Cobb, Councilor Nash, Councilor Vollison, Councilor Powers and Vice Mayor McGuire voted to adopt the budget; Hagen voted no.

Councilor Vollison told colleagues the council had learned of prior budget practices that left the city with substantial deferred maintenance and unbudgeted liabilities. "Previous leaders used vacancy savings to cover funding gaps, did not budget overtime for public safety, and deferred maintenance on roughly $25,000,000 of items including 14 elevators and $6,700,000 worth of air handlers," Vollison said during the meeting.

The council also reaffirmed the real property tax rate as set in Article 2 of Chapter 32 of the Code of the City of Roanoke. That ordinance passed on a 5-1 vote with the same pattern of support and opposition as the budget vote.

Why it matters: Council members said the newly revealed maintenance obligations and budgeting practices required immediate corrective action and contributed to the need for new appropriations. Council members and city staff repeatedly endorsed the work of the interim administration and finance staff to produce a transparent budget, and said the adopted plan is intended to stabilize city operations and address urgent capital needs.

What the budget and related measures include: Council adopted one measure to appropriate funding for the general stormwater utility, civic facilities, parking, risk management, school general and school food services funds for the fiscal year beginning July 1, 2025, and ending June 30, 2026. The council also adopted the annual electronic fee compendium (with a limited change: updates to fire EMS fees) and endorsed an update to the capital improvement program for fiscal years 2026'30. The council approved a separate ordinance authorizing transfers from the general fund to the capital improvement fund tied to the CIP update.

Council commentary and next steps: Several members asked for regular, quarterly reviews of budget performance after adoption. Councilor Powers asked that quarterly checks show progress on deferred maintenance items and overtime funding, saying, "as we get into each quarter ... we know that we're on track." Mayor Cobb and other members said they will continue discussions with the school division and other departments as implementation continues.

Formal actions taken: - Reaffirmation of real property tax rate (Ordinance): motion moved and seconded; roll-call vote: Nash Aye, Vollison Aye, Powers Aye, Hagen Nay, McGuire Aye, Mayor Cobb Aye; outcome: approved. - Adoption of the FY26 budget appropriations (Ordinance): roll-call vote: Nash Aye, Vollison Aye, Powers Aye, Hagen Nay, McGuire Aye, Mayor Cobb Aye; outcome: approved. - Adoption of the annual electronic fee compendium (Ordinance): roll-call vote recorded as unanimous among those present; outcome: approved. - Endorsement of the FY26'30 capital improvement program (Resolution) and authorization to transfer general fund dollars to the CIP (Ordinance): roll-call votes recorded and measures approved.

Implementation: City staff will begin executing the adopted budgets and appropriations on July 1, 2025. Council members requested quarterly budget reports, and staff said they will continue discussions with the Roanoke City Public Schools about allocations tied to the budget cycle.

Ending: Council recessed the meeting and scheduled a May 16 strategic planning retreat; implementation and quarterly reporting on the adopted FY26 budget will follow in coming months.