Radford budget hearing draws residents’ opposition to proposed electric fee; city manager warns of $1.3M co‑gen shortfall

Radford City Council opened a public hearing April 21 on the city’s advertised FY2027 budget, during which City Manager Todd outlined an $81.7 million budget and revenue options that included a not‑to‑exceed real‑estate tax of $0.87 per $100 assessed value, a proposed 5% electric rate increase and multiple water‑rate scenarios.

Todd said the advertised water/wastewater budget line would rise to $9.9 million under the 'not to exceed' figure and summarized a 12‑scenario matrix combining differing real‑estate tax increases (2¢, 3¢, 4¢) with water‑bill increases ($2.00 to $3.50 on the minimum). He told council that each one‑cent change in the real‑estate rate equates to roughly $118,000 in revenue and that increasing the electric customer charge from $7.02 to $20 would slightly lower the per‑kilowatt‑hour charge for high usage while raising fixed monthly costs for all customers.

The presentation framed tradeoffs between drawing more from enterprise transfers and preserving water reserves; Todd said the city is trying to rebuild a near‑zero water reserve (the original proposed reserve shown as $256,000) to fund capital needs such as storage tanks and line replacements.

Residents at the podium urged caution on fee increases. "I stand before you today in strong opposition to the additional fee on our electric bills," said Beth Barber, who brought a multi‑page petition and asked the council to "eliminate these fees" because she said they are regressive and raise housing costs for HUD recipients. "A flat fee on electricity does not account for income; it punishes the elderly on fixed incomes and working families alike," she said.

Doug Knipp, a resident of more than 20 years, told council that rate increases should be a last resort: "Raising rates should be a last resort and making cuts should be the first priority," he said, urging deeper scrutiny of departmental spending after prior meetings identified $400,000 in potential cuts.

Regina Meredith said roughly 30% of Radford residents are at or below the poverty rate and warned small, repeated rate increases compound hardship; an emailed comment from Alyssa Archer urged raising property taxes to $0.87 so the burden shifts toward property owners who 'can afford it.' Amanda Winter cautioned that shrinking HUD allotments can translate fee increases into higher rents for non‑owners.

Council and staff quantified the arithmetic behind adjustments. Todd told council that reducing the advertised 5% electric increase by 1% would lower expected electric revenue by about $300,000; to replace that revenue the city would have to reduce transfers to the general fund or identify other revenue, which Todd said is roughly equivalent to a 3¢ change in the real‑estate tax rate. He also told council the city is anticipating about $1.3 million in potential lost revenue tied to the co‑generation facility; those losses factor into the revenue scenarios being considered.

Council closed the public hearing on rates and opened the budget hearing. After public comments and follow‑up questions, mayor and council moved to a closed session under Virginia Code §2.2‑3711(A)(8) to consult with legal counsel regarding the Pulaski County Public Service Authority.