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Blacksburg council hears FY2027 budget; staff outlines $125 million plan, vote set for April 28
Summary
Town staff presented the recommended FY2027 budget, describing roughly $125 million in overall spending, an operating increase of about 5.8% (excluding capital), and capital priorities including nearly $13 million for bus replacements and $5 million for water and sewer work; Mayor Sutphin disclosed a conflict and will abstain on a separate appropriation.
Blacksburg officials on the town council heard a staff presentation on the recommended fiscal year 2027 budget and scheduled a final vote for April 28, 2026.
Town staff told the council the overall budget is about $125 million. After removing capital projects to make year-to-year comparisons, the operating budget rises by roughly 5.8%, staff said. The town will maintain its property tax rate, staff added.
"When you look at the overall budget, um comparing year to year, that the overall budget's $125 million," the presenter said. The staff presentation highlighted capital and operating priorities: nearly $13 million for bus replacements and electric-bus charging infrastructure; about $5 million in water and sewer projects; a multi-decade replacement of the 911 radio system with costs shared across funding sources; $1.8 million in sidewalk projects; $840,000 in stormwater projects; and $790,000 for pedestrian-safety improvements.
Officials said transit remains largely funded by state and federal grants and a student transportation fee paid by Virginia Tech students, while utility enterprise funds (water, sewer, solid waste and recycling) are supported by user fees. Staff said regional authorities that treat water and sewage have driven some rate increases and that the town must raise utility rates to cover operations, maintenance and capital needs. Staff provided an example: an average customer using 5,000 gallons would see a combined utility-bill increase of about $8.40, roughly a 6% increase.
The presentation also listed personnel and benefit changes. Staff said the town is adding sworn and civilian positions in the police department (including a police sergeant and a police public liaison supervisor), a communications specialist and a FOIA officer, a parking enforcement officer, and conversions of several part-time transit roles to full-time positions. Health-insurance costs were described as rising about 7% (the first increase in four years), and the town's Virginia Retirement System contribution was cited as increasing roughly 15%.
Mayor Michael Sutphin read the required conflict-of-interest disclosure under the Virginia State and Local Government Conflicts of Interest Act, saying he is employed by Community Housing Partners, which receives HUD funding. He said that an $89,240 appropriation to the New River Valley Home Trust and other specified paragraphs in Ordinance 2113 affect that interest and that he "will not vote in any manner" and "will then abstain from voting on that portion of the ordinance." The council is expected to vote on the budget and associated ordinances on April 28.
Council opened the public hearing and invited comments, but no one came forward. Staff said public comments received tonight would be addressed in a work session if needed and that the council would take final action at the April 28 meeting.
The meeting closed the public record on the budget and moved on to other business, with the council later voting to enter a closed session for personnel evaluations.
