RADFORD, VA. – Radford City has recently readjusted its budget to address a growing deficit affecting the community. 10 News spoke with city leaders to learn about the situation.
Jenni Webb, director of communications for the city, told 10 News that since the COVID-19 pandemic, revenue projections have consistently fallen short of expectations. This decline, coupled with several years of no raises in tax and utility rates and rising inflation, has pushed the city into the red, resulting in overdue payments, including multiple bills to Appalachian Power.
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To correct this financial course, the city has implemented budget cuts along with increases in tax and utility rates for this year and the future. Officials said that through their partnership with AEP, they have been given more leniency on payments, and the power is paid under a wholesale agreement, but they want to get out of the red. Additionally, a new city manager is set to join the team this summer to help steer the city back on track.
While Webb noted there is no specific timeline for when the city will emerge from its financial challenges, she expressed confidence that the decisions being made currently and in the coming months will lead to a more stable future for Radford.
For more details on the city’s budget adjustments and plans for recovery, tune in to 10 News at 5 and 6.