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Roanoke council hears April financial report; officials flag personal-property and communications-tax risks
Summary
City finance staff told Roanoke City Council on June 2 that April revenues are largely on track but highlighted risks in the communications-tax base, high health-and-welfare spending tied to the Children's Services Act and near-term personal-property collections tied to a June deadline.
Roanoke City Council heard its April 2025 financial report on June 2, with Finance Director Margaret Lindsay and staff outlining year-to-date revenues and expenditures and answering council questions about personal-property taxation, overtime costs and the declining communications-tax base.
The report matters because it highlights budget pressures ahead of the fiscal year close, including a health-and-welfare line running at about 92 percent of budget through April and a communications-tax line at roughly 70 percent of its expected level. Lindsay warned the council those items could affect fiscal planning for fiscal 2026 and the 2027 budget process.
"Today is the personal property deadline day," Lindsay said during her presentation, noting that some May collections would not be reflected in the April report. She told council that the city had collected approximately $5,400,000 in one line and was just over $20,000,000 in overall collections through the period reported, and that processing of late payments can create timing differences.
Lindsay also cautioned that the communications tax base has eroded as technologies change and that the city is unlikely to meet the current budgeted amount for that line. On expenditures, she said health and welfare spending—largely driven by the state's Children's Services Act (CSA)—is approaching 92 percent of budget and that the city recently received state approval for additional CSA award funds that will come back to council June 16 for formal acceptance.
Council members pressed for greater transparency on overtime and personal-property policy. Councilor Hagen asked for an analysis of how a reduction in the personal-property tax rate for automobiles would affect revenues; staff agreed to prepare that. Councilor Powers asked for earlier periodic briefings so the public can see how mid-year changes are managed. Interim budget manager Kasecki described an initiative to review and remove unused fees from the fee compendium and to improve fee transparency.
The finance presentation included two items staff said would return for council action: a June 16 item to accept additional CSA grant funding from the Commonwealth, and later budget briefings linked to the midyear revenues and the city's early work on fiscal 2027. No vote was required on the April report itself; council asked staff for follow-up analyses and scheduled further budget work sessions.
City staff and council members acknowledged the city's ongoing work to align the budget with revenue trends and one-time influxes and to better budget for recurring overtime costs going forward.
