LISTEN: Roanoke heads to May 11 budget adoption with spending under pace, tax revenues mixed
Roanoke City Council is set to reconvene Monday at 2 p.m. to consider adoption of the City of Roanoke Recommended Fiscal Year 2026-2027 Budget, following a March financial report that shows expenditures running below pace and some local taxes lagging.
The adoption meeting will be held in City Council Chamber, Room 450, at the Noel C. Taylor Municipal Building. Council’s May 4 meeting was formally recessed until May 11 specifically for the budget vote.
Current-year spending running below benchmark
Interim Finance Director Acquenatta Harris told council that nine months into the current fiscal year, total expenditures are tracking at 68% of the annual budget. That is below the 75% pace that would typically be expected at this point.
“While several expenditure categories are slightly under the 75% benchmark, spending is anticipated to align within the current budgeted amounts,” Harris said.
City leaders highlighted the slower spending as a positive sign for budget discipline as they approach Monday’s vote.
Some revenues strong, others lag behind last year
Harris reported that several key revenue sources are meeting or exceeding the current-year budget:
- Business license tax at 101%
- Penalties and interest at 96%
- Public service tax at 95%
- Real estate at 79%
- Consumer utility tax at 71%
At the same time, she said other lines are under pressure compared to last year. Admissions revenue is down about $27,000 and cigarette tax revenue is down about $156,000.
Sales tax is essentially flat, with a modest increase of $94,000 year over year. Mayor Joe Cobb noted during the meeting that the proposed budget for the coming year already assumes a decrease in sales tax revenue.
Harris said non-local tax revenues overall are tracking as expected, with some differences caused by the timing of receipts.
Overtime over budget; temporary wages expected to finish within limits
Council also received an update on payroll-related costs, including overtime and temporary wages.
Harris said overtime costs have already exceeded the annual budget, “largely driven by increased labor demands related to snow removal activities.” She added that staffing limitations in some departments have required overtime “to maintain service levels to meet operational needs.”
Temporary wages are on a different track.
“Temporary wages expenditures are currently on track to meet the annual budget,” Harris said. If monthly spending stays at or below $250,000, the city projects it will remain within the approved temporary wage budget for the fiscal year.
City officials noted that higher temporary wage costs in some departments may be offset by savings from vacant positions.
Elevator parts delayed; installation expected later this summer
Council members also received a brief update on elevator replacement projects in city facilities. Because of the age of the equipment, parts had to be specially ordered. Harris said the latest information from staff indicates the new elevator components may arrive in July or August, while cautioning that delivery schedules can still change.
Council signs off on RVTV budget share
Earlier in the meeting, council unanimously approved the city’s share of the Roanoke Valley Television (RVTV) operating budget.
Roanoke will cover 50.04% of RVTV’s total operating costs. The overall RVTV budget is increasing by 3.4% from the prior fiscal year, driven by cost-of-living pay adjustments, higher health insurance costs and increased information technology expenses.
School grant funds appropriated; two members recuse
Council also adopted an ordinance appropriating funding from the commonwealth, federal government and private grants for various Roanoke City Public Schools programs.
Before the vote, Vice Mayor Steven McGuire and Councilwoman Vivian Sanchez-Jones each read conflict-of-interest statements and recused themselves, citing their employment with the school division. No specific dollar amount for the grants was discussed in the portion of the meeting captured in the transcript.
The ordinance passed with the remaining council members voting in favor.
McGuire warns of missed solar incentives; no vote taken
During council comments, McGuire raised concerns about what he described as a missed opportunity to use federal incentives for solar energy projects under the Inflation Reduction Act.
He said “the solar investment tax that we have known for some time now it has been wiped out because of President Trump’s big beautiful bill,” and argued the city could have captured “millions if not tens of millions of free money free federal dollars” if it had moved more quickly. McGuire stressed that he did not want to advance a solarization proposal that would be contentious and confirmed he was not bringing his previously discussed council member initiative forward at this time.
Council member Peter Volosin responded that he believes “everybody on this dais” supports expanding solar, but said any plan needs to be handled “in the most open and transparent manner that we can.” He said some concerns raised so far related to how the process has unfolded rather than to the goal of pursuing renewable energy itself.
No vote was taken on any solar-related measure, and no specific solar projects or cost figures were approved.
What happens Monday
Council will reconvene Monday, May 11, at 2 p.m. to consider adoption of the City of Roanoke Recommended Fiscal Year 2026-2027 Budget and any related actions. The meeting is open to the public in council chambers and is expected to finalize the coming year’s spending plan, including details on department funding, tax rates and revenue projections that have not yet been publicly adopted.
