ROANOKE, Va. – On Monday, Roanoke City Council voted in favor of its proposed budget of more than $407 million in general funds that could impact schools, public safety, and the meals tax.
A key focus in the budget centers around Roanoke City Public Schools.
The school system said it faces a $9 million budget shortfall.
The proposed budget maintains level funding for the school system, departing from the city’s traditional funding formula.
10 News spoke with Mayor Joe Cobb, who emphasized the city’s commitment to finding collaborative solutions.
“Our goal is to get us back on track. We’re addressing some difficult challenges and changes systemically related to the funding formula and fund balance,” said Mayor Cobb.
The budget proposal includes increasing the meals tax, which would rise from 5.5% to 6.5%, pushing Roanoke’s rate above neighboring localities like Salem City and Botetourt County. Initially, city leaders proposed a 7% meals tax rate but reconsidered.
City officials said increasing the meals tax would help with overtime compensation, help operate parks and recreation centers, and help with a backlog of maintenance at city properties.
The proposed meals tax increase has sparked concern among residents and business owners.
“It makes it less likely for us to want to come out and spend money because you know, three kids, a house, and everything,” said Taylor Cranmer, a local resident.
Jason Martin, who owns several local restaurants including Sidecar, Martin’s, and Jaybird Tavern, shared similar concerns about people dining out in Roanoke City.
“Everybody’s happy they’re eating during the meal, and then they get the check at the end and are like ‘holy cow, that’s a lot of money.’ They might think twice before they come back out to eat with us again,” said Martin.
The budget proposal also now includes 1.5% credit for restaurants who pay the meals tax early on time.
Here’s what the meals tax rates look like across Southwest Virginia:
- Roanoke County- 4%
- Botetourt County- 6%
- Montgomery County- 4%
- Bedford County-6%
- Franklin-4%
- Lynchburg-7%
The budget also includes several measures to support city employees, including a three percent merit increase and salary adjustments for workers earning below a living wage of $42,000 annually.