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Southwest, Central Virginia budgets fared better than expected during COVID-19 pandemic

Roanoke is projecting about a surprising $9.5 million increase in revenue

ROANOKE, Va. – Crunching the numbers, Roanoke City’s looking a lot better than expected for the Fiscal Year 2022.

The city’s projecting about a $9.5 million increase in revenue. During the council meeting on Monday afternoon, City Manager Bob Cowell said he was shocked.

ā€œI would not have believed that a year ago. Where we were a year ago, was preparing for really the significant fallout we anticipated coming from COVID, particularly tied to revenue,ā€ said Cowell.

The surprising trend has been seen across Central and Southwest Virginia.

Danville will see a total revenue increase of $3 million. City Manager Ken Larking said that stimulus checks allowed citizens to spend more and sales tax revenues saw a spike.

ā€œThe state has started collecting tax revenue from online sales in a more robust way than it used to and that happened to be about a year ago, ā€ said Larking.

However, the meals and hotel tax revenues took a hit.

ā€œThose things aren’t performing as well as we would have expected otherwise, but all in all, I think we balanced out fairly well,ā€ said Larking.

But not everyone’s better off. In Montgomery County, the projected FY22 budget predicts a revenue loss of $3.9 million.

Over in the Hill City, Lynchburg Interim City Manager Reid Wodicka credits conservative spending for their success. He said the city’s revenue is less than anticipated, but slowly making a comeback. Lynchburg is projecting a $4.4 million revenue increase.

ā€œOn the whole, we are doing better than what we anticipated, but there certainly are still some challenges,ā€ said Wodicka.