City Manager Todd Meredith told Radford City Council on Dec. 16 that the city has taken “critical first steps” to stabilize cash flows but continues to face structural budget challenges that attracted the attention of the Virginia Auditor of Public Accounts.

In a midyear presentation on the city’s fiscal year 2026 finances, Meredith said the city paid off a revenue anticipation note and adopted several revenue increases — including higher real-estate and personal-property tax rates, a 1% meals-tax increase and a rise in solid-waste and water/sewer fees. He added staff reduced payroll through attrition by about 28 full-time positions since the budget was created.

Meredith urged a data-driven approach to budgeting, saying repeated overestimates on line items such as local sales and use tax produced significant variances in recent years. "If you look at the total variance at the end of that three-year period, there's only a $21,000 variance, and it's to the good," he said while describing trend-based projections and confidence intervals used to set more accurate revenue targets.

Meredith also said the Auditor of Public Accounts has begun a follow-up review using financial ratios and qualitative measures to determine whether Radford meets the state's criteria for fiscal distress. "The purpose of this review is not punitive," Meredith told the council. "If we meet that criteria, the outcome can come in the form of assistance to help us recover — funds, consulting services and planning support — not punishment."

Meredith described operational changes the city is implementing: requiring managerial review for purchases above $1,000, closer lien and process management, and organizational adjustments including a newly created chief financial officer position filled by Trish Cox. He said the city has issued an RFP for a forensic audit to examine past operations and finances; staff expect vendor proposals in the coming weeks.

Council members applauded efforts to improve the quality and transparency of financial reporting. Multiple councilors noted that improved trend-based projections and monthly financial reporting will be crucial as the council prepares the FY2027 budget.

The APA review is ongoing; Meredith said city staff are cooperating and producing requested documentation. He did not provide a timeline for the state’s determination. The next steps are continued information exchange with the APA and review of forensic-audit proposals once bids are received.