Budget Development

FY2022 Budget Development Progress

The Division of Management and Budget along with the City Manager's Office has provided City Council with several briefings during the development of the FY22 budget  beginning back in December 2020. These briefings always discuss budget to actuals and year end projections for the current Fiscal year 2021 (July 1, 2020 – June 30, 2021)
as well as provide ongoing updates to budget discussions for the next fiscal year FY22 (July 1, 2021 – June 30, 2022). At our most recent presentation (watch starting at 1:42) on May 3 the focus of this briefing was to begin initial discussions regarding compensation. A few notable items regarding what is being considered are noted below:
  • Non-sworn personnel - 2.5% to 3% salary increase
  • State Compensation Board Covered Employees would receive raises recommended by the Governor and General Assembly
  • Sworn personnel (Sheriff/Jail/RPD, Fire-EMS) - increased starting pay and increased base pay at each rank along with creation of a step-pay plan with multi-year phase-in.
  • No full-time employee would receive less than 2.5% to 3% pay increase.
If fully implemented this compensation package would cost $8.0 million. Current budget development shows we can only afford about $4.05 million. A phased-in approach to the step plan as well as determining a pay increase percentage for all non-sworn employees will be the focus of discussions leading up to the Recommended Budget presentation on May 17.

FY2022 local taxes estimates are about $210.0 million which is $8.3 million greater than FY2021 revenue budget. Most of the growth is in Real Estate, Sales, Transient Occupancy and Personal Property and Business License Tax while we expect other revenues to decline or hold steady. Of the $8.3 million growth, about $3.8 million is shared with other organizations such as RCPS, Visit Virginia Blue Ridge and Neighborhood Districts and only $4.5 million would stay with the City.

FY2021 current fiscal year performance remains positive with revenues anticipated to come in about $1.216 million above our very conservatively projected budget. Real Estate is performing very well driven by home sales and improvements but our biggest surprise is how well Transient Occupancy Tax has made an earnest recovery despite the continuing pandemic. Expenditures continue to trend lower than expectations and with healthy reserves still in place we are anticipating surplus funds at year end.

In other briefings we have discussed potential fee and tax updates for FY22 (April 5th) and expenditure enhancements, possible updates to the Capital Improvement Plan and other Enterprise Fund considerations (March 1). Links to these presentations can be found below.

Aside from just evaluating numbers and trends and future funding needs, this year we are also incorporating into the budget process an Equity and Empowerment focus. We have asked all Directors to submit their budget requests while simultaneously answering questions in three key areas which will then be evaluated by Equity Teams. Those three questions are as follows:

Does the request advance equitable outcomes for residents and/or advance or improve upon an identified neighborhood or community asset? If so, how? If not, could it be adjusted to do so? How?
Does the request burden or benefit communities of color and/or low-income individuals or neighborhoods?  If so, how? Could it be adjusted to avoid or mitigate the burden and/or to realize a benefit?  How?
Does the request help reduce an identified disparities? If so, how? If not, could it be adjusted to do so?  How?

To keep up-to-date on progress of the FY22 budget season including past presentations and future ones including the new format of Facebook and Zoom Town Hall Meetings, continue to monitor this page.

On January 29, 2021 our first Townhall meeting was held to highlight the Real Estate Assessment process and historical trends in this very vital revenue item for the City. Real Estate tax revenues account for 30% of all General Fund Revenues (of which 40% goes directly to the Schools). To view this very informative meeting click here with the slides here.

On March 16 a Town Hall was done covering the Capital Improvement Program and funding to external agencies. Watch / slides.

At our next Town Hall meeting we will discuss the American Rescue Plan Act (ARPA). The City will receive about $44 million over a two year period. At this point we are still awaiting guidance from the AIG on how these funds shall be spent. A date has yet to be set for this town hall but continue to watch this page or subscribe to MyRoanoke notifications for updates and a chance to participate in the Town Hall.

  1. FY2022
  2. FY2021
  3. FY2020
  4. FY2019

Important Dates, Presentations and Official Documents