Montgomery County, Va. FY 26 Proposed Budget

PROPOSED BUDGET

for Fiscal Year 2026

MONTGOMERY COUNTY, VIRGINIA

Board of Supervisors

Fijalkowski

Angela M. Hill | County Administrator

Christopher S. Lawrence | Deputy County Administrator

Scott A. Woodrum | Assistant County Administrator

Terri T. Mitchell | Chief Financial Officer

Marc M. Magruder | Director of Management and Budget

Jody R. Parsons | Budget Manager

Susan S. Dickerson | Administrative Coordinator

Derek Kitts District B

Steve

Vice Chair District C

Sara Bohn District A

April DeMotts Chair District G

Anthony Grafsky District E

Mary Biggs District F

Todd King District D

COVER IMAGE

Scenic view of the Pilot area of Montgomery County.

PROPOSED BUDGET for Fiscal Year 2026

BUDGET MESSAGE

March 10, 2025

Dear Honorable Members of the Board of Supervisors:

The proposed Fiscal Year 2026 (FY 26) budget focuses on a strategic funding plan that addresses Montgomery County's growing population and corresponding needs. In addition, it emphasizes our commitment to providing superior customer service and the priorities outlined by you, the Board of Supervisors. With each budget, it is our responsibility to balance the available and limited resources with the identified needs.

Annual needs and requests for funding fall into four main categories: Montgomery County Public Schools; public safety; other general government functions; and outside agencies. The needs and overall budget requests for FY 26 once again exceed available resources. However, in the information that follows, I have provided a proposed budget that addresses recognized needs within the constraints of the available funding.

Proposed FY 26 Budget: $268.6 Million, 75 Cent Tax Rate

For FY 26, I am proposing a total budget of $268.6 million, an increase of $14 million, or 5.5 percent over the originally adopted Fiscal Year 2025 (FY 25) budget, with the real estate tax rate remaining at 75 cents per $100 of assessed value. It is important to note that while the budget has increased by $14 million, new revenue available for FY 26 is $11.2 million After the County adopted the approved FY 25 budget and tax rate in April of 2024, the state allocated an additional $2.8 million for MCPS, which provided additional funding for use in FY 25 and brought the total FY 25 budget to $257.4 million

Of the proposed budget amount, I am recommending $180.1 million, 67 percent, be allocated to Montgomery County Public Schools ($160.4 million for school operating, school capital, and school nutrition funds plus $19.7 million for school debt service) I am recommending the remaining 33 percent be used to fund public safety; general government administration; judicial administration; general services; health and welfare; parks, recreation, and cultural; community development; and other agencies.

Funding Sources: $11.2 Million in New Revenue

Currently, we are projecting $11.2 million in new revenue for FY 26. Funding sources for the proposed budget are from three areas: undesignated revenue; designated funds primarily from the state that are earmarked for specific purposes; and unallocated FY 25 funding Of that total, $7.7 million is undesignated revenue.

Designated funds, which include local fees, state funding, and federal grants, are expected to increase by 3.2 percent in FY 26 Additional state funding for Montgomery County Public Schools totals $2.2 million for FY 26.

FY 25 was unique in that after the County’s tax rate was set, the state allocated more funding to MCPS than we anticipated. This resulted in additional unallocated funding of $1.6 million in the FY 25 budget. The County was able to use a significant portion of these funds to approve eight new deputy positions for the Montgomery County Jail, fulfilling the Sheriff's November 2024 request for critical public safety support. Another portion of these funds was used in the base budget to annualize the cost of 12 career firefighters and the Deputy Chief of Training, as FY 25 included 10 months of funding to implement this initiative

Proposed Funding: $268.6 Million

The Board and I have worked intentionally together throughout the year to bring clarity to the County’s vision and priorities. The proposed FY 26 budget is a direct result of our collaborative work and shared direction. Our priorities are consistent, yet our community's growth has required us to adapt. The need for increased public safety funding has resulted in a slight adjustment to the recomme nded allocation between public education and public safety. Nevertheless, public education maintains its historical allocation, comprising approximately two-thirds of the total County budget in FY 26.

Of the proposed $268.6 million budget, I am recommending:

• $160.4 million for Montgomery County Public Schools to include the school operating budget; the school nutrition fund; and the school capital fund;

• $29.4 million for public safety, which includes the Sheriff’s Office; Western Virginia Regional Jail Authority; Montgomery County Fire and EMS Department; Volunteer Fire and Rescue Agencies; and the Animal Care and Adoption Center;

• $45 million for general government functions to include funding for general government administration; judicial administration; general services; health and welfare; parks, recreation, and cultural; and community development;

• $5 million for the County Capital Fund;

• $24.8 million for debt service ($5.1 million for County and $19.7 million for MCPS); and

• $3.5 million for outside agencies.

During the County’s budget analysis, we identified $1.4 million in one-time funding requests. These include fire and EMS equipment and vehicles, software upgrades, two vehicle replacements, and the local VA250 initiative. These costs, which align with our priorities and support our desire to provide superior customer service, are outlined beginning on page 33 of the proposed budget document and will be presented to the Board for approval after the budget is adopted.

Montgomery County Public Schools: $180.1 Million

Historically, the County has allocated more than two-thirds of the overall budget to Montgomery County Public Schools, leaving the remainder to fund public safety; general government administration; judicial administration; general services; health and welfare; parks, recreation, and cultural; community development; and other agencies

Given public school education is one of the Board’s main priorities, I am proposing a significant sum of the County’s overall budget continue to be allocated for MCPS. The FY 26 proposed budget includes $2.75 million in new funding for the MCPS operating fund, which will be allocated from the $7.7 million in new undesignated County revenue. Increased state and federal funding of $2.3 million is also included for MCPS, bringing the total proposed increase to slightly over $5 million based on the estimated state funding. MCPS requested $ 5.4 million in increased funding for the school operating fund and $1.25 million for the school nutrition fund, resulting in a total request of $6.6 million from the County for FY 26. The

proposed budget includes 2.5 cents ($3.1 million) of the real estate tax rate to be earmarked for MCPS capital projects.

On Monday, March 17, a joint meeting with the Board of Supervisors and the School Board is scheduled to discuss the FY 26 budget. This is an additional opportunity to foster collaboration while addressing both the needs of the public schools and the County.

The chart provided illustrates the total new designated and undesignated annual revenue allocation and demonstrates the County’s commitment to consistently providing a significant portion of new revenue to MCPS. It is important to note the state provides designated funding to public schools that far exceeds the amount of designated state funding provided to localities. While public education is one of the Board’s main priorities, we must balance our limited undesignated revenue as we strive to fund other priorities and identified needs, such as public safety.

In Fiscal Year 2023, the County began funding paid EMS for the first time ever, providing 24/7 coverage in Eastern Montgomery and the Riner area. In FY 25, the County responded to growing public safety needs in Eastern Montgomery by providing career firefighters from 7 a.m. to 7 p.m., seven days a week. Proposed funding for FY 26 includes costs for eight deputies for the Montgomery County Jail; one investigator for the Sheriff’s Office; and 12 additional paid firefighters to provide 24-hour fire service in Eastern Montgomery.

Public Safety: $29.4 Million

In FY 26, I am proposing 11 percent of the overall budget be allocated to fund public safety needs. Public safety includes the Sheriff’s Office; Western Virginia Regional Jail Authority; Fire and EMS Department; Volunteer Fire and Rescue Agencies; and the Animal Care and Adoption Center. In total, I am recommending $29.4 million in funding for public safety in FY 26.

Sheriff’s Office

The FY 26 proposed budget allocates $1.6 million in additional funding to address the needs identified in the Sheriff’s Office, which include: staffing; adding funds in the vehicle replacement budget; and increased costs to support the camera and interview video systems

Included is approximately $700,000 to fund eight positions in the Montgomery County Jail, which addresses staffing needs. In addition, I am proposing an investigator position to allow the Sheriff’s office more capacity to focus on the increased number of cybercrimes.

Western Virginia Regional Jail Authority

I am proposing we allocate approximately $550,000 in additional funding for the Western Virginia Regional Jail Authority to cover the per diem costs based on the number of inmates housed at the jail, as well as the County’s portion of the debt service payment. Both the per diem cost and the number of inmates are estimated to increase in FY 26.

Fire and EMS Department

When citizens need emergency assistance, it is our duty to respond in a timely manner with trained professionals. As a result, I am proposing $1.15 million to fund 24-hour fire service in Elliston. In total, 13 positions are proposed to include four firefighter EMTs; four firefighter paramedics; two fire captains; and two fire lieutenants. To assist with the increased associated clerical duties, I am recommending an additional administrative coordinator position as well.

Volunteer Fire and Rescue Agencies

Montgomery County values the individuals who serve their community by volunteering as fire and rescue first responders. The County provides annual operating budgets to nine volunteer fire and rescue stations. For FY 26, I am recommending $1.6 million for recurring fire and rescue

operational needs, which includes approximately $65,000 in additional money, as well as an increase of $94,000 for insurance based on the premiums for the volunteers.

Animal Care and Adoption Center

The Montgomery County Animal Care and Adoption Center continues to receive local, regional and national recognition for the work they do in our community. In addition, the ACAC facility is featured as a premier model by the Shelters Planners of America and is used throughout the nation as a prime example of an animal shelter I am recommending a total budget for the ACAC of just under $1 million for FY 26.

General Government Functions; Judicial Administration; General Services; Health and Welfare; Parks, Recreation, and Cultural; and Community Development: $45 Million

The FY 26 proposed budget includes $45 million for other general government functions, which includes general government administration; judicial administration; general services; health and welfare; parks, recreation, and cultural; and community development.

The proposed funding is the direct result of a rigorous internal annual budget review process that requires each department to present and justify their budget requests to the County's leadership team. This ensures thorough review of all requests before recommendations for the General Government Functions are submitted to the Board.

Guided by the desire to provide superior customer service and the priorities outlined by the Board of Supervisors, the internal budget review process encourages interdepartmental collaboration; facilitates discussions about needs and challenges; and promotes a better understanding of each department's

responsibilities. This process often leads County staff to creative solutions to balance the limited resources with the identified needs

In FY 25, we implemented a multi-year strategic funding plan to address identified needs and empower our existing employees with the staff, tools, and resources necessary for them to continue to provide superior customer service to our citizens In continuation of this plan, I am proposing eight additional positions for FY 26 to include:

• Benefits Coordinator in Human Resources;

• Security Analyst in Information Technology;

• Building Inspector, Groundskeeper, and Housekeeper in General Services;

• Two Maintenance Workers in Parks and Recreation; and

• Library Associate at the Christiansburg Library branch.

These positions are in addition to the 14 proposed public safety employees previously outlined, bringing the total staffing request for FY 26 to 22 positions. Funding is also recommended to address three employee reclassifications. These reclassifications will realign the existing positions in the County’s compensation and classification plan to maintain the plan’s integrity.

I am also recommending $1.2 million be allocated to provide a 3 percent pay increase for County employees in an effort to allow us continue to provide competitive salaries Health insurance costs will not increase in FY 26.

Outside Agency Requests

As previously stated, we received funding requests for FY 26 from other agencies in the amount of $700,000. I am recommending we allocate an additional $300,000, a 10 percent increase over FY 25, to fund these requests. The FY 26 proposed budget includes a total of $3.5 million in funding for 50 outside agencies that support the Board’s priorities. A detailed list of the proposed funding for these outside agencies can be found beginning on page 273 of the FY 26 proposed budget document

Maintaining Financial Strength and Security

The County's dedicated and highly-skilled financial experts develop the annual proposed budget, carefully analyzing and even scrutinizing local, regional, and national trends and projections. The proposed FY 26 budget leverages the County's proven financial practices and policies, which have earned us a AA+ bond rating. This budget reflects the County's commitment to financial strength and security through sustainable and responsible financial activity, demonstrated by both the Board of Supervisors and County staff. While not all budget requests could be accommodated, the proposed FY 26 budget represents significant progress for our public schools, public safety and the County’s general government functions, balancing limited resources with identified needs.

In summary, the proposed FY 26 budget of $268.6 million, with a real estate tax rate of $0.75 per $100 of assessed value, addresses the needs of our growing community while remaining fiscally responsible. A budget timeline and calendar are included on page 63 of the proposed budget document Key dates include work sessions in March, as well as a public hearing scheduled on April 10. Please note the deadline to approve the FY 26 budget and tax rate is April 21, to accommodate the timeline for spring tax bills

I appreciate your continued leadership and support. Please let me know of any questions you may have as you review the proposed FY 26 budget.

Sincerely,

Angela M. Hill , CPA, CGMA County Administrator

PROPOSED BUDGET for Fiscal Year 2026

TABLE OF CONTENTS

PROPOSED BUDGET

for Fiscal Year 2026

OVERVIEW OF MONTGOMERY COUNTY

Montgomery County, Virginia

Since its founding in the eighteenth century, Montgomery County has experienced a rich history in agriculture, manufacturing, and technology with ties to notable historical figures to include George Washington and even Daniel Boone. The county has experienced consistent growth throughout the years.

Montgomery County – which is home to two of the state’s four largest towns, Blacksburg and Christiansburg – is a high-tech community strategically located on the Interstate 81 corridor.

The county provides a full range of services to its approximately 100,000 residents to include: law enforcement; fire and rescue; planning and GIS; economic development; social services; courts; parks and recreation; general services; environmental services; animal control; libraries; and schools.

Montgomery County traces its origin to 1776 when it was formed and named after General Richard Montgomery, an American hero of the French and Indian War and the American Revolution. The first settlement, Draper’s Meadow, was established in the 1740s but was destroyed by Shawnee Indians during the French and Indian War.

Christiansburg, the county seat, was incorporated in 1792 and named in honor of Colonel William Christian. This community was an important stop on the Wilderness Road, which roughly corresponds to the present day U.S. Route 11. As the retail hub of the county, Christiansburg is host to several shopping centers and restaurants.

Blacksburg was incorporated in 1871. The town originated on tracts of land donated by William Black – for whom it was named – and was established at the same site as the previous settlement of Draper’s Meadow. Blacksburg is home to Virginia Tech, one of the nation’s leading educational institutions and research universities. The

town is also home to the Virginia Tech Corporate Research Center.

Graduates from area colleges and universities add to the abundant, educated workforce to make a probusiness community with a solid mix of high-tech, manufacturing, retail and professional services –including a variety of Fortune 500 firms.

Snapshot: Population and Economy

The graphics and charts provided below have been obtained from the Labor Market Information report provided by the Virginia Employment Commission.

Status of our Economy: Expected to outgrow our urban neighbor by 2030.

Source: Weldon Cooper Center for Public Service, U.Va., 2017.

Population by Gender

Source: 2020 Census.

OVERVIEW OF MONTGOMERY COUNTY

Population by Age

Source: 2020 Census.

20-29 years 10-19 years 0-9 years

30-39 years

40-49 years

50-59 years

60-69 years

70-79 years

80 years and over

OVERVIEW OF MONTGOMERY COUNTY

Projected Population Change

Source: U.S. Census Bureau, Virginia Employment Commission.

Projected Population Change: Montgomer y County

Economic Profile

Montgomery County maintains a few of the very industries that were popular at its inception including agriculture and manufacturing. In addition, technology, health care, education, retail, hospitality, and food service are now among popular industries throughout the county. According to the Local Area Unemployment Statistics by the Virginia Employment Commission, Montgomery County consistently maintains an average unemployment rate lower than the national average, with a recorded rate of 2.9 percent compared to the national rate of 4 percent as of November 2024.

Unemployment Rates

Source: Virginia Employment Commission, Economic Information & Analytics, Local Area Unemployment Statistics.

Employment by Industry

Source: Virginia Employment Commission, Economic Information & Analytics, Quarterly Census of Employment and Wages (QCEW), 3rd Quarter (July, August, September) 2024.

PROPOSED BUDGET for Fiscal Year 2026

BUDGET SUMMARY

Introduction

The FY 26 proposed County budget for all funds (net of transfers) totals $268.6 million. The General Fund budget totals $173.5 million, including transfers to other funds, such as the School Operating Fund. The School Operating Fund totals $151.7 million, including the transfer from the County of $64.3 million. The general government portion of the General Fund (net of transfers to other funds) totals $77.9 million and the School Operating Fund (net of transfers) totals $151.3 million. The total County budget also includes the Debt Service Fund ($24.8 million), the Law Library Fund ($17,600), the School Nutrition Fund ($6 million), funding for County Capital ($5 million), School Capital ($3.1 million), and the Economic Development Authority Incentive Program ($0.4 million).

The FY 26 proposed real estate tax rate is 75 cents per $100 of assessed value. The FY 25 approved rate was also 75 cents. There are no tax rate changes proposed for the FY 26 budget.

F Y 2 6

P r o p o s ed Bud get

$268.6 Million

BUDGET SUMMARY

GENERAL FUND

The following highlights major changes in expenditure areas. Detailed explanations of the expenditure recommendations can be found in the Expenditure Plan section of the document. A recap of expenditures by fund, County dollars by division, position (FTE) listing, and a graphic summary of the FY 26 proposed budget are included in the Appendices.

The FY 26 proposed budget includes funding to cover the cost of a 3% compensation increase for classified and part-time non-classified County employees July 1, 2025, and funding to maintain the County’s Compensation and Classification Pay Plan. These funds are held in Special Contingencies for the FY 26 proposed budget and will be distributed to divisions after approval.

Summaries of Major

Expenditure Areas

BUDGET SUMMARY

In the area of General Administration, the following major budget changes were made for FY 26:

Board of Supervisors – funds are added to provide compensation increases to board members. This compensation increase will align board member pay with those of nearby and comparably-sized localities in Virginia. Funds are also provided for Board members to attend conferences and events and to provide additional resources for extended work sessions and board meetings planned throughout the year.

County Administration – funds are added for the Employee Engagement Committee (EEC) based on the rising costs for events the EEC puts together for Montgomery County employees, such as the County picnic, public service recognition week, and breakfast with Santa. Funds are also added to support fuel and vehicle maintenance costs for the Assistant County Administrator’s assigned vehicle.

Public Relations and Community Engagement – funds are added to support centralized subscription-based web design programs and to begin an audio visual replacement schedule to start replacing various A/V equipment in the Board Room, various conference rooms throughout the Government Center, and various equipment used by staff, such as cameras, tripods, and drones.

Human Resources – funds are added for one Benefits Coordinator position (one FTE) to assist existing staff with employee benefits, payroll, state reporting mandates, processing new hires, and developing new processes for enhanced workflow. Funds are also added to reclassify one full-time position and to purchase professional evaluation software to provide managers with a more efficient and effective method of providing performance feedback to employees.

County Attorney – funds are added for professional legal services for outside legal counsel fees to cover litigation against the County throughout the year.

Finance – funds are added to cover audit and other professional services fee increases. The slight reduction in Finance was the result of staff turnover savings.

Insurance – funds are added to cover insurance premium increases.

BUDGET SUMMARY

Information Technology – funds are added for one Security Analyst (one FTE) to provide support for continuous monitoring and remediations of County information systems. Funds are also added to cover new software programs, software maintenance service contracts, increased telecommunications costs, a copier replacement schedule, and hardware costs for new positions.

Commissioner of Revenue – The slight decrease in the Assessment Division is also due to staff turnover savings.

Treasurer – funds are added for DMV administrative fees charged to the County, postage increases based on the increased number of property bills sent to citizens by the Treasurer, and to provide funds for staff to attend the Treasurer’s Association of Virginia Annual Conference, in support of gaining and maintaining professional certifications.

Electoral Board – The slight decrease in the Electoral Board Division is due to staff turnover savings and the one-time costs associated with the 2024 Presidential election.

General Contingencies – funds are added to the General Contingency Budget to meet the County’s financial policies of retaining 1% of the County’s general government portion of the General Fund to cover contingency needs.

Special Contingencies – funds are added to the Special Contingency Budget to cover the cost of a 3% compensation increase for classified and part-time non-classified County employees July 1, 2025, and funding to maintain the County’s Compensation and Classification Pay Plan. The $459,461 reduction in Special Contingencies was the result of reducing the additional funds left in Special Contingencies for funds remaining after compensation increases were distributed to departments in FY 25 and for funds that were unallocated in FY 25 by the board that were freed up after the state approved additional state revenues for schools.

Judicial Administration

In the area of Judicial Administration, the following major budget changes were made for FY 26:

Commonwealth Attorney – funds are added for one new legal assistant position (1 FTE) added by the state in FY 25.

Clerk of Circuit Court – The slight decrease in the Clerk of Circuit Court Division is due to staff turnover savings.

BUDGET SUMMARY

Public Safety

In the area of Public Safety, the following major budget changes were made for FY 26:

Sheriff – funds are added to the base budget to cover eight additional FTEs added to County jail operations off-cycle during FY 25 and for one new Investigator (one FTE) position to assist in solving cybercrimes. In addition, funds are added in the County budget to cover the costs for inmate per diem expenses at the Western Virginia Regional Jail, increases to the Sheriff’s vehicle replacement budget to maintain the Sheriff’s fleet, and increases to professional services that support existing in-car cameras, body cameras, fleet cameras, and interview video systems.

Sheriff's Office Local Funding

Fire and EMS (previously Emergency Services) – funds are added to provide 24/7 fire staffing (12 FTE) in the Eastern Montgomery area of the County and for an Administrative Coordinator (one FTE) to help existing staff with revenue recovery, financial reporting, equipment ordering and data entry. Funds are also added for employee physicals, the maintenance of existing fire apparatus, the replacement of turnout gear, and for staff training.

Fire and Rescue – funds are added to cover the increase in costs for ongoing operations for the volunteer fire departments and rescue squads, including the establishment of a Special Operations Team. Funds are also added for insurance premium increases.

BUDGET SUMMARY

General Services

In the area of General Services, the following major budget changes were made for FY 26:

General Services – funds are added to cover the costs of one Building Inspector position (one FTE) in Building Inspections, one Groundskeeper position (one FTE) in Lawns and Landscaping, and one Housekeeper position (one FTE). Funds are also added for utility cost increases at the New Court Services and Magistrate’s Building and the building at 305 Roanoke Street, tipping fee increases at Solid Waste Authority, and increases to the County’s vehicle replacement budget to maintain the County’s fleet.

Health and Welfare

In the area of Health and Welfare, the following major budget changes were made for FY 26:

Children’s Services Act – funds are added for increased costs of CSA expenditures based on approved state funding and local match requirements for FY 26. This increase is based on the FY 25 CSA budget reconciliation.

Human Services – The slight decrease in Human Services Division is due to staff turnover savings.

Public Health – funds are added for the New River Health District based on approved state funding and local matching requirements.

Social Services – funds are added to Social Services based on approved state funding and local matching requirements for FY 26. This increase is based on the FY 25 Social Services budget reconciliation. This reconciliation added one FTE to the base budget.

Parks, Recreation, and Cultural

In the area of Parks, Recreation, and Cultural, the following major budget changes were made for FY 26:

BUDGET SUMMARY

Parks and Recreation – funds are added for two Maintenance Worker positions (two FTEs) to provide ball field maintenance.

Regional Library – funds are added for one full-time Library Associate Position (one FTE) and one parttime non-classified Library Associate Position to provide additional support at the library. Funds are also added to reclassify one full-time Library Systems Administrator position and one full-time Technology Support Specialist position to be more in line with education, work experience, and supervisory skills required by other positions throughout the County.

Community Development

In the area of Community Development, there were no significant budget changes for FY 26

The slight decrease in Planning and GIS is due to staff turnover savings.

Other Agencies

Other agency requests are evaluated each year based on existing funding agreements, board directives, and funding alignment between local government support in the New River Valley. Significant increases were provided to the New River Valley Emergency Communications Regional Authority, the NRV Housing trust, the NRV Passenger Rail Station Authority, the Regional Tourism Office, and the Community Services Board.

Interfund Transfers

BUDGET

Transfer to the School Operating Fund

County funding in the FY 26 budget for the School Operating Fund totals $64.3 million, which is an increase of $2.75 million from the FY 25 approved budget.

Transfer to the Debt Service Fund

Funds are transferred to the Debt Service fund to cover the cost of County and School debt service.

Transfer to the School Capital Fund

2.5 cents of the real estate tax rate are earmarked for the School Capital Fund.

Transfer to the Economic Development Authority (EDA) Funds are transferred to the EDA for economic development incentives.

Transfer to the County Capital Fund

1.5 cents of the real estate tax rate are included for Fire and Rescue capital needs and 1 cent of the real estate tax rate is earmarked for future capital projects, which includes $100,000 for the Valley to Valley Trail project. In addition, $1,300,000 is transferred to address County capital maintenance needs (this is an increase of $550,000 and provides funding to meet an allocation of 1% of County asset replacement costs). Other monies include $425,000 for the Parks Revitalization project and $210,000 to address technology infrastructure issues.

PROPOSED BUDGET for Fiscal Year 2026

BUDGET SUMMARY, APPENDIX A

All Funds Summary

All Funds Budget FY 2026

PROPOSED BUDGET for Fiscal Year 2026

BUDGET

Expenditures by Division

Recap of Expenditures by Division, Fiscal Year 2026

Recap of Expenditures by Division, Fiscal Year 2026

PROPOSED BUDGET for Fiscal Year 2026

BUDGET SUMMARY, APPENDIX

One-time Funding

Appendix C: One-Time Funding

During the FY 26 budget process, County divisions made several one-time funding requests. These one-time funding items were excluded in the FY 26 Proposed Budget because they can be funded with one-time only money, which would reduce the overall cost of the budget and avoid any the impact on the tax rate for FY 26. Onetime funding of $1,350,726 will be requested in July 2025. Following are the specific items to be addressed.

• $75,000 in One-Time Funding for the VA250 Initiative – $75,000 in one-time funding is provided to support the commemoration of the 250th anniversary of both Virginia and Montgomery County.

• $293,800 in One-time Funding is Needed for Information Technology Needs:

• $250,000 is needed to replace the current land management software. The current software no longer meets the needs of the County or its citizens. The new software will provide an online citizen portal and provide a more efficient and effective software solution to support the development community.

• $24,300 is needed to implement a new online customer interface for tax and utility billing. This addition will modernize the County’s online customer experience. This application is mobile-friendly and includes features of a modern payment portal. The recurring costs total $17,000 and are included in the FY 26 proposed budget.

• $6,500 is needed to add a monitoring tool to increase cyber security event management. This tool will collect data from all possible sources, analyze it, and then respond to detected security threats. The advanced platform performs a much more detailed analysis of incoming events, compared to County’s current solution. Additionally, the solution provides 24/7 constant monitoring for the County. The advanced capabilities will result in improved monitoring of device and network activity in the County. The recurring costs total $46,176 and are included in the FY 26 proposed budget.

• $13,000 is needed to provide additional licenses for the County’s document management system. The recurring costs total $3,000 and are included in the FY 26 proposed budget.

• $71,350 In One-time Funding for Fire and Rescue Operational Needs – $71,350 in one-time funding is needed in FY 26, including $10,500 for Long Shop McCoy Rescue Squad, $19,195 for Riner Rescue Squad, and $50,000 for a new Special Operations Team Commission. The Fire and Rescue Commission has $8,345 in base funding to help off-set some of the one-time costs.

• $797,576 in One-time Funding is Needed for Fire and EMS Needs:

• $323,400 is needed to replace the current outdated hose and nozzles on two engines and for onetime items for the 12 new positions including: turnout gear, helmets, gloves, hoods, boots, gear racks, wildland gear, and other miscellaneous equipment.

• $206,176 is needed to purchase LUCAS devices, which provides high-quality cardio pulmonary resuscitation (CPR).

• $200,000 is needed to purchase two new response vehicles to replace older vehicles which have exceeded their useful life. The first to be replaced is a 2001 Ford F-250; the second vehicle is a 2010 Chevrolet Tahoe.

• $50,000 is needed to purchase uniforms that would be used for formal events to include attending funeral services, honor guard functions, attending classes and ceremonies, etc. This cost is to outfit 48 FTE.

• $18,000 is needed to purchase two mobile radios to be installed in the new ambulance that is scheduled to arrive in FY 26.

• $113,000 in One-Time Funding for General Services Vehicle Purchases – $113,000 in one-time funding is needed for the purchase of 2 vehicles in the General Services division. $48,000 is needed to purchase a vehicle to be used by the Zoning Compliance Officer for code enforcement. This position was added and filled in FY 25; however, a vehicle was not included at that time. Additionally, $65,000 is needed to replace an IT work van for use by the Library’s IT staff to travel among branches.

One-time Items Removed from FY 2026 Proposed Budget

PROPOSED BUDGET for Fiscal Year 2026

BUDGET SUMMARY, APPENDIX D

Summary of Full-Time Employees/Equivalents

Summary of Authorized Full Time or Full Time Equivalent (FTE) Positions

PROPOSED BUDGET for Fiscal Year 2026

BUDGET SUMMARY, APPENDIX

Graphs

G en er a l Fund

G ener a l G o v er nment

S cho o l Fund s

PROPOSED BUDGET for Fiscal Year 2026

BUDGET SUMMARY, APPENDIX

Organization Chart

MONTGOMERY COUNTY, VIRGINIA Organization Chart

VOTERS

PROPOSED BUDGET for Fiscal Year 2026

UNDERSTANDING THE BUDGET

Preparation of the Annual Budget

Montgomery County’s annual budget begins with the development of the proposed budget, the budget recommended by the County Administrator, and ends with the approved budget, which has been reviewed, adjusted and approved by the Board of Supervisors (Board).

The County’s annual budget process begins in the fall of each year, when divisions, departments and agencies submit budget requests for the upcoming fiscal year. In January and February, County staff develop the proposed budget. The proposed budget and budget document are presented to the Board in March of each year. During that time, the Board begins deliberations to adjust the budget and develop the County’s approved budget. During budget deliberations, the Board holds public hearings for citizen comments and conducts work sessions. Citizen comments assist the Board of Supervisors in making decisions regarding spending. After budget adjustments, the final approved budget is adopted in April and becomes effective July 1. The budget runs on a fiscal year basis and is effective July 1 through June 30. The County’s 2026 Budget Calendar is shown below (some changes may occur during the process):

Fiscal Year 2026 Budget Calendar

July - August Prior year-end expenditure and revenue analysis; revenue analysis for FY 2026 begins.

SeptemberOctober 2024 Budget targets and budget instructions are developed for FY 2026 Proposed Budget.

November 2024

December 2024

January - February 2025

FY 2026 budget forms and instructions are sent to county divisions and external agencies.

Budget requests for FY 2026 are due.

Staff begins the development of the FY 2026 Proposed Budget.

Jan. 27, 2025 7:15 PM Public Hearing for citizen input.

Feb. 10, 2025 7:15 PM Preliminary revenue estimates are presented to the Board of Supervisors.

Feb. 24, 2025 7:15 PM Superintendent presents the Proposed FY 2026 MCPS budget to the Board of Supervisors. (Work Session)

Mar. 10, 2025 7:15 PM Presentation of the FY 2026 Proposed Budget. (Work Session)

Mar. 17, 2025 7:00 PM Joint meeting with MCPS. (Special Meeting)

Mar. 24, 2025 7:15 PM Establish advertised tax rate and advertised budget. (Work Session)

Mar. 31, 2025 6:30 PM Special Meeting & Work Session.

Apr. 10, 2025 6:30 PM Public Hearing on advertised tax rate and budget. (Special Meeting)

Apr. 21, 2025 6:30 PM Adopt budget and establish tax rate. (Special Meeting)

May – June

July 1

Year-end revenue and expenditure estimates are finalized for FY 2025 and transfers are made to close the year.

New Fiscal Year begins.

Budget Development Phase

JANUARY

CALENDAR KEY: Regular Meeting Work Session

The Budget in General

The County’s budget is the government’s estimated revenues and expenditures for the fiscal year that begins on July 1 and ends on June 30. It consists of operating and capital budgets for county programs and services. The budget also allocates funds for the operating and capital needs of the public school system and contributes to a number of other agencies.

The County’s budget consists of the following funds:

• General Fund – which provides funding for the day-to-day operations of the County government.

• Law Library Fund – which provides funding for the day-to-day operations of the law library.

• School Operating Fund – which provides funding for the day-to-day operations of the School system.

• School Nutrition Fund – which provides funding for the day-to-day operations of the School food program.

• County and School Capital Funds – which provides an annual cash-to-capital allocation for new county and school capital needs.

• Debt Service Funds – which provides funding to cover the County and School’s outstanding debt obligations.

• EDA Incentive Fund – which provides funding for economic development initiatives.

The County’s Budget Process

In November of each year, County divisions are provided with budget targets for the upcoming fiscal year. The base budget target represents the base of personnel and operating costs anticipated for the upcoming year based on the prior year approved budget with adjustments made for personnel changes and mandates. One-time only funding from the prior year is excluded from the base budget. Along with the base budget target, County divisions are also provided the opportunity to request addenda items, which represent dollars over and above the base budget.

Base Budget Targets allow for the delineation between previously approved funding levels and requested increases.

Base Budget Targets are established as follows:

• Personal Services - Includes all positions approved up to the issuance of the proposed budget and covers the estimated costs in fringe benefits.

• Operations and Maintenance - Caps funding at the level of the prior year approved budget, less adjustments for one-time only expenditure items.

• Capital Outlay - Most capital outlay is removed from the base budget target as typically it is a nonrecurring expense. Some divisions maintain a permanent capital outlay allocation as they utilize the funding on a yearly basis to replace equipment on an existing replacement plan. Examples include motor vehicle and computer replacements.

Addenda Requests are increased funding over and above the Base Budget Targets. They must be presented as Addenda to the Base Budget. This means that additional justification for increased funding or the inclusion of capital outlay dollars must be provided with the request.

These adjustments are designed to clearly identify increases to operations and initiatives proposed by departments. The chart below illustrates the process.

Base Budget

Estimated costs for continued operations

Based on prior year approved budget with adjustments

Excludes: Office Furniture Other equipment

over and above the base budget target for operating and capital items

Dollars requested for new or expanded services (initiatives)

All budget requests (base budget request and addenda) are due in December of each year and are evaluated for inclusion in the upcoming budget. When making budget requests, County divisions must address the following:

• Is there sufficient workload to justify the request?

• Is there sufficient need to justify the request?

• Is the request related to a state or federal mandate?

• Are there legal requirements that will not be met if the request is not funded?

• Is the request linked to a specified outcome that is community or board driven?

• What tangible benefits can the County expect to experience as a result of funding the request?

All budget requests are evaluated based on available funding and the justification listed above.

How to Understand and Use This Document

With the goal of allowing decision-makers to focus on broader issues, the budget document consolidates similar

functions. The FY 2026 budget continues to consolidate information and array budget data in ways that facilitate a broader understanding.

This budget document includes both the County’s general government operating budget, the Montgomery County Public Schools’ operating and nutrition budgets, the law library budget, County and School capital budgets, the debt service budget, and the economic development incentive budget.

The FY 2026 budget document is organized into 20 major headings, each of which is separated by a large divider tab:

• Budget Message

• Table of Contents

• Budget Summary

• Understanding the Budget

• Revenue Summary

• Summary by Function

• Expenditure Plans

• General Government Administration

• Judicial Administration

• Public Safety

• General Services

• Health and Welfare

• Parks, Recreation, and Cultural

• Community Development

• Other Agencies

• Transfers

• Law Library

• Education

• Debt Service

• County Capital

Included under the last section; Expenditure Plans, are the 33 major County Divisions or budget categories, which include Division expenditures, revenues earmarked for use by the specific Division, and County funding provided. Each of these sub-sections includes the Division’s Organizational Chart, Financial Data, Personnel, Key Performance Indicators (KPIs), whyDescription of the Division, Base Budget Discussion, Addenda Discussion, which includes the County Administrator’s recommendation. Also included are each Department’s Description and Financial Data.

Division Financial Data - Provides a recap of the Division’s funding history, including the Base Budget and addenda requests, and recommended funding by three categories:

• Personnel Services

• Operations and Maintenance

• Capital Outlay

Department Description and Financial Data - Presents historical budget data by major category for each department. The following column headings are used:

• FY 24 Revised Budget

• FY 24 Actual Budget

• FY 25 Approved Budget

• FY 26 Base Budget

• FY 26 County Administrator’s Recommended Addenda

• FY 26 County Administrator’s Recommended Total

The County Administrator’s Recommendation column identifies the amount of funding recommended for each major cost category by base budget and addenda.

Revenue that has been designated to offset expenditures in divisions is also presented. These sources include State Compensation Board funding, fees and permit charges collected by the respective divisions and other sources related to each specific function. In the presentation format, designated revenues are totaled and subtracted from the expenditures, identifying the amount of the County’s undesignated general fund revenue needed to support the division’s expenditures.

For FY 2026, the County’s General Government portion of the General Fund (which consists of individual county divisions) have been further consolidated into 8 functional areas: General Government Administration; Judicial Administration; Public Safety; General Services; Health and Welfare; Parks, Recreation, Cultural; Community Development; and Other Agencies. This consolidation will change how appropriation control and future budget amendments are handled

The Process and Approvals Required to Amend the Budget

After the budget is approved by the Board, the final approved budget is appropriated and becomes effective July 1. After July 1, the Board makes adjustments through additional appropriations. The budget is an estimate; therefore, as revenues and expenditure needs change, the appropriation may be adjusted. This can mean additional appropriations or reductions of appropriations. If the budget amendment exceeds 1% of the total expenditures shown in the currently adopted budget, the Board will hold a public hearing to gather citizen input. These adjustments are approved at the Board level.

How the original budget and amendments are incorporated into the accounting system

Each month, the Board holds public meetings where appropriations are approved if necessary. After these approvals, the appropriations are entered into the County’s financial system. Expenditures can then be made by the division using the budget adjustment. The County’s accounting system separately keeps track of the County’s original and revised budget. The revised budget changes throughout the year as appropriations are adjusted.

Basis of Accounting and Basis of Budgeting

The County’s accounting system is organized and controlled on a fund basis. The basis of accounting refers to the accounting method the County utilizes to recognize revenues and expenses. There are three ways in which a governmental entity can recognize revenue and expenses: cash, accrual, modified accrual basis. Under the cash basis method, revenue is recognized when cash is received and expenses are recognized when paid. Under accrual basis, revenue is recognized when earned and expenses are recognized when incurred. Modified accrual basis is a hybrid of cash basis and accrual basis. It recognizes revenues when they become both measurable and available. Expenditures are generally recognized when the related fund liability is incurred.

For FY 2026, the County will begin operating on the modified accrual basis of accounting for both budgetary and accounting purposes. This means that the County recognizes revenues when they become both measurable and available. Expenditures are generally recognized when the related fund liability is incurred.

How budgetary compliance is monitored and enforced

Division directors are responsible for individual budgetary compliance. Divisions are required to monitor and adjust their individual budgets and spending habits as needed throughout the year. They are required to stay within their approved expenditure authority.

The County’s Office of Management and Budget monitors budgetary compliance at the macro level to ensure compliance with the County’s financial policies. With the consolidation of County divisions into the 8 major functional areas: General Government Administration; Judicial Administration; Public Safety; General Services; Health and Welfare; Parks, Recreation, Cultural; Community Development; and Other Agencies; budgetary control has been set at each major functional area. Division directors are still required to stay within their approved division expenditure authority; however, the County Administrator has the ability to approve transfers within each major function without board approval. Within each division, directors can move funds between individual line items, with the exception of salary line items, which require approval of the Finance/Budget Director.

Allowing the County Administrator to approve transfers within each major function without board approval will provide better operational efficiency and reduce the number of budget amendments required annually.

Conclusion

The Board of Supervisors uses this combination of documents and information to review and approve the annual budget. It is available as public information for review by any citizen who requests access to it and is found on the County’s web site at www.montva.com. A glossary of financial terms begins in the following section in an effort to assist citizens in reviewing and understanding the County’s budget. If you have any questions about the County’s budget or the budget process, please contact Montgomery County’s Office of Public Relations and Community Engagement at 540-382-5700.

GLOSSARY OF TERMS

Addenda Request

The request for funding amounts over and above the designated Base Budget targets.

Appropriation

An approval by the Board of Supervisors for County staff to make an expenditure or to incur debt using government resources. These are usually for specific, stated amounts over a one-year period.

Appropriation Resolution

An official act by the Board of Supervisors providing staff the legal authority to obligate or spend County funds.

Approved Budget

The budget enacted by the Board of Supervisors.

Assessed Value

The fair market value placed by the Commissioner of Revenue on personal and real property owned by County citizens. Real estate values are reassessed every four years.

Base Budget

A budget that shows how much it would cost in the next fiscal year to operate the same programs approved in the current year.

Basis of Accounting

The basis of accounting refers to the accounting method the County utilizes to recognize revenues and expenses.

Budget

A financial plan for operating the County using estimates of costs (expenditures) and proposed methods for offsetting those costs (revenues).

Budget Calendar

The County’s schedule of deadlines and events related to preparing and adopting the next year’s budget.

Budget Document

The County staff’s official report, which presents the proposed budget to the Board of Supervisors.

Budget Message

The County Administrator’s written synopsis of the proposed budget. This message analyzes budgeting issues and specific programs within the context of the County’s economic climate. In addition, it gives the County Administrator an opportunity to highlight certain noteworthy recommendations.

Capital Assets

Fixed assets with a value of at least $5,000 and an anticipated useful life of more than one year. Furniture and equipment are examples of fixed assets.

Capital Improvement Program

The County’s five-year plan for completing capital projects on an annual basis, with tentative beginning and ending dates for each, and anticipated costs and options for financing them.

GLOSSARY OF TERMS

Capital Projects

Large one-time construction projects or purchases that are expected to provide services to citizens over a period of time. Examples of capital projects are the construction of new schools, fire stations, etc.

Contingencies

Special monies set aside for unforeseen costs or emergencies, or for special purposes that may require further analysis.

Debt Service

The repayment of County debt, including principal and interest.

Expenditures

The cost of or payment for goods and services used in County operations.

FTE

Full Time Employee or Full Time Equivalent.

Fiscal Year

The County’s financial reporting year, which begins on July 1 and ends on June 30 of the next calendar year.

Function

An overall activity performed by a division or organization. The County’s budgets are divided into personal services, operations and maintenance, and capital outlay.

General Fund

The part of the budget that accounts for day-to-day operating expenses for the County, including dollars transferred from the General Fund for support of the School System.

General Obligation Bonds

A promise from County government to pay for bonded debt (essentially a loan) based on its full faith and credit or basic power to pay debts with tax revenue. These bonds are used to finance long-term projects through payments of principal and interest over a period of years.

Grant

A gift of assets, usually cash, by one source to another organization. The County receives most of its grants for specific projects or programs from the federal or state government. However, private foundations sometimes contribute funds to the County.

Proposed Budget

The initial budget prepared for and proposed to the Board of Supervisors by the County Administrator.

Revenue

Income or increased assets for a specific fund.

Tax Exempt Revenue Bonds

Under the lease revenue method, the County transfers a “lease hold interest” (the legal right to use the property) to the Economic Development Authority (EDA). The EDA then “leases back” these facilities and projects to the County for a term equal to the debt service term. The lease payments cover the debt service term. These issuances

are also structured with a Trustee, who must enforce all obligations. Consequently, the Trustee collects rental payments, pays bondholders, and monitors requisitions on the use of funds and issues checks to vendors from the proceeds.

Tax Levy

The total dollar amount of tax that should be collected based on existing tax rates and assessed values of personal and real properties.

Tax Rate

The level at which taxes are imposed or charged for certain property owned by citizens and businesses.

Unemployment Rate

The Virginia Employment Commission’s (VEC’s) report of persons who are actively filed as not holding, but are seeking, a job for which they would receive compensation. This does not include persons who have no job, but do not consult the VEC for job placement services.

PROPOSED BUDGET for Fiscal Year 2026

REVENUE SUMMARY

Revenue Forecasting

Montgomery County’s general revenue forecast is developed based on past revenue trends, current revenue collections, and current and future local growth patterns. The County’s local economy, along with state and federal influences, contribute to the revenue picture. Budget staff, with data from the Commissioner of the Revenue and Treasurer offices, work throughout the year evaluating revenue trends, collection rates, and growth patterns to determine the revenue projection.

Local, state, and national economic conditions all influence the local fiscal environment. The County’s revenue structure, job base, and major economic contributors provide a strong foundation for sustained growth. Montgomery County is home to Virginia Tech, which is the second largest public university in Virginia. Virginia Tech is also the largest employer in the County, providing jobs for approximately 12,000 employees. Montgomery County is fairly unique in that Virginia Tech’s presence in the community provides a stable foundation for economic growth. However, even with the presence of a stable and large employer, the local economy remains heavily dependent on the broader state and national economies. These broader economies are some of the most important factors in predicting increased revenue growth, even at the local level.

The sudden onset of the pandemic in March of 2020 created a host of challenges for the economy and revenue forecasting. In March of 2020, the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, provided direct cash stimulus payments to individuals, as well as economic assistance to workers, businesses and state and local governments. In December of 2020, a second pandemic relief package provided direct cash stimulus payments to individuals, as well as economic assistance to workers and businesses. In March of 2021, the Federal Government passed the American Rescue Plan Act, a third round of legislation totaling $1.9 trillion, that provided additional direct aid, added unemployment benefits and $350 billion of aid to state and local governments.

As the government responded to the pandemic, the Federal Reserve (America’s Central Bank) decreased interest rates sharply to near zero and increased its balance sheet through Quantitative Easing (QE) to increase the money supply. Easy money, coupled with supply chain issues and increased demand for goods and services, created inflationary pressure. Inflation started to rise in November of 2021 and hit 40-year highs, peaking in June of 2022. To address this surge in inflation, the Federal Reserve began increasing interest rates in March of 2022. The Federal Reserve increased the federal funds rate from near zero to a peak target rate of 5.25% to 5.5% in July of 2023. As inflation has eased and the economy has cooled over 2023 and 2024, the Federal Reserve began reducing rates. The current federal funds target rate (as of February 2025) is 4.25% to 4.5% and represents a 1% reduction since the peak rate in July of 2023. While the market has priced in three or four rate cuts, the Fed has signaled the potential of only two rate reductions in 2025, targeting a federal funds rate of around 3.75% to 4.0%.

National Economic Outlook

The condition of the County economy is greatly affected by national and state economic conditions.

National Economic Outlook

Evaluating the current state of the economy is difficult as there is often a lag time between when information and data are available and our ability to evaluate the impact of that information and data. The U.S. economy has remained strong over the past two years, surprising many analysts as economic activity has continued to expand. The outlook for 2025 is positive with moderate growth, but at a slowing rate. Labor market conditions have eased and inflation has dropped considerably from the peaks in June of 2022. Inflation, however, is still above the Fed’s 2% target range. Most analysts agree that a recession is unlikely in 2025; however, there are still risks to the economy. Higher unemployment and inflation above the targeted 2% could create a drag on the economy.

Gross Domestic Product (GDP)

GDP is one of the broadest measures of the economy. This measure affects interest rates, fiscal budgeting, and U.S. monetary policy. According to the Bureau of Economic Analysis, the real GDP of the U.S. increased at a rate of 2.3% in the fourth quarter of 2024. In the third quarter, real GDP increased 3.1%. Analysts expect the economy to grow by 1.9% to 2.5% for 2025 and 1.6% to 2.0% for 2026. The ideal range for manageable GDP growth is in the 2% to 3% range.

Unemployment

The unemployment rate is a second measure of the broader economy and it is one that personally affects most Americans. According to the Bureau of Labor Statistics, the national unemployment rate for 2024 was 4%, up from 3.6% reported in 2023. Comparing the latest information, the unemployment rate for December 2024 was 4.1%, up from 3.8% in December 2023. Economists estimate that the unemployment rate will be between 4.0% and 4.5% in 2025 and 4.3% and 4.4% in 2026.

Inflation – Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a measure of inflation. The CPI is also a measure that personally impacts most Americans. Unlike recent years, where the U.S. experienced low inflation, the annual rate of inflation accelerated in 2021 and 2022 to a near 40-year high. As a result of interest rate increases in 2022 and 2023, the percentage change (inflation rate) cooled. According to the Bureau of Labor Statistics, for 2024, the CPI was 2.9%, down from 4.1% in 2023. Comparing the latest information, the inflation rate for December 2024 was 2.9%, down from 3.4% in December 2023. High inflation rates mean that purchasing power is being degraded and the cost for goods and services are rising. Economists expect inflation to fall to between 2.1% and 2.9% in 2025 and 2.1% and 2.9% in 2026. The Federal Reserve’s target range for inflation is 2%.

Housing and Auto Sales

The housing market weakened during 2024 as housing starts and existing home sales declined due to interest rate increases. Housing shortages are still an issue, which has kept housing prices high. Many homeowners are locked into low mortgage rates creating low inventory. Total housing starts in 2024 were 1.36 million, down from 1.42 million in 2023. Existing home sales are expected to grow as interest rates decline and buyers become accustomed to higher prices. New construction will help supply gaps in existing home inventory.

For the auto industry, an estimated 15.9 million new vehicles were sold in 2024 compared to approximately 15.5 million units in 2023. Inventories are improving; and for 2024, forecasters estimate that U.S. auto sales could be 16.3 million units. The biggest issue for the auto industry post-pandemic was low inventory. This low inventory boosted used car values nationwide. During 2022 and 2023, however, used car prices started to fall as new car inventory began to stabilize and demand dropped. Used car prices dropped 15% in 2022 and 7% in 2023. In 2024, used car prices stabilized with a 0.4% increase. In 2025, used car prices are expected to continue to stabilize.

State Economic Outlook

According to economists, Virginia’s economic outlook is consistent with national trends with the economy showing signs of slowing growth for 2025.

Virginia Unemployment

According to the Virginia Department of Workforce Development and Advancement, the unemployment rate for the Commonwealth of Virginia for 2023 was 2.9%, up from 2.8% in 2022. Comparing the latest information, the unemployment rate for December 2024 was 2.5%, down from 2.7% in December 2023. Virginia unemployment

rates are lower than the national rates.

State General Fund Revenues

State General Fund revenues for FY 24 grew by 5.5%. State General Fund revenue projections for FY 25 and FY 26 are expected to increase by 8.63% and 2.96%. Sales tax collections are estimated to grow at 1.9% for FY 25 and 3.9% in FY 26.

Other State Funds

More than half of the State’s revenues are non-general fund revenues, which are designated funds earmarked for specific purposes. These funds include federal grants, institutional revenue, transportation funds, and Master Tobacco Settlement Agreement funds. Non-general fund revenues are expected to increase by 30.8% in 2025 and increase by 2% in 2026.

Local Economic Outlook

Like the U.S. and State economic outlooks, Montgomery County’s economic outlook is viewed with optimism. The County’s unique qualities and job base provide a strong foundation for sustained growth. Local employment rates are consistent with state and federal trends.

According to the Virginia Department of Workforce Development and Advancement, the unemployment rate for Montgomery County for 2023 was 2.8%, up from 2.7% in 2022. Comparing the latest information, the unemployment rate for December 2024 was 2.4%, down from 2.5% in December 2023. Like the national and state trends, the local unemployment rate is still extremely low and will likely increase over FY 25. The ideal unemployment rate is around 3% to 5%.

County Resources

Resources within the County budget are classified as either designated or undesignated.

• Designated Resources represent revenue accounts that are mandated for specific uses including:

• Support from the State Compensation Board for constitutional officers, court fees, fees for services and programs;

• Direct state aid for public assistance payments;

• State and federal funds for schools; and

• Support for human services programs.

• Undesignated Resources fall into two categories: undesignated revenue and fund balance. Undesignated revenue represents dollars which may be used in the budget at the Board’s discretion. These include property taxes, sales taxes, and similar local sources of revenue. Total budgeted revenue for FY 26 is $268.6 million with $114.7 million considered designated. Of this designated amount, $93 million or 81% is earmarked for schools. Undesignated revenue dollars that may be used in the budget at the Board’s discretion total $153.9 million. Of this amount, $64.3 million goes to the public schools for operations, and $22.7 million of the undesignated dollars support debt service costs for county and public school facilities.

Local Revenue Patterns and Growth for FY 26

Local revenue growth is heavily dependent on property taxes, especially the real estate tax, which is the County’s single largest local revenue source. Real estate revenues (real property) represent 58% of the County’s total undesignated revenue. Personal Property tax revenue (motor vehicles) is the County’s second largest local revenue source; it represents 14% of the County’s undesignated revenue. Sales and Use Tax is the third largest local revenue source; it represents 9% of the County’s undesignated revenue. Taken together, these three revenue sources account for 81% of the County’s undesignated revenue and represent the bulk of revenue growth the County experiences on a yearly basis.

Since the pandemic, the County has experienced strong yearly revenue growth. In FY 24, total undesignated revenue collections exceeded estimates by $5.3 million (net of $3 million for ½ year of a 5-cent tax rate increase). Areas of strong growth were found in interest earnings ($2.5 million), real estate and public service corporation taxes ($0.9 million), personal property taxes ($0.6 million) and sales tax collections ($0.5 million). All other categories of revenue exceeded estimates by $0.8 million.

In FY 25, the County is still experiencing growth in current revenues that are above historical trends. The County’s interest rate on investments, sales tax collections, and personal property collections all remain strong. For FY 25, the County expects to exceed total undesignated revenue estimates by $3.3 million, with $0.3 million in real estate, $1.4 million of the excess revenue in business personal property, $0.4 million in motor vehicle personal property, $0.3 million in machinery and tools, $0.5 million in interest earnings, $0.2 million in sales tax, and $0.2 million in all other categories. Most revenue categories are trending back to normal levels. With the Federal Reserve planning several interest rate reductions in 2025 and 2026, some of this additional revenue is likely to be one-time in nature.

The County estimates that $2.6 million of the $3.3 million in additional FY 25 collections will be available for FY 26 expenditures. The chart shows a breakdown of the revenue by category:

*Calculated in Millions

Of the $3.3 million projected, the County expects to collect above the estimated revenue in FY 25, $0.3 million is from additional real estate growth, $0.4 million is from additional motor vehicles growth, $1.4 million is from additional business personal property growth, $0.3 million is from additional machinery and tools growth. The County expects to retain all of these revenues for expenditure in FY 26. Sales tax collections remain strong. The County expects to collect an additional $0.2 million for FY 25 and retain $0.1 million for FY 26. The $0.1 million decrease in sales tax from the FY 25 estimated actual is due to a change in school age population estimates in the towns for FY 26. Interest earnings are up in FY 25 due to increased interest rates and provide $0.5 million in additional revenue over FY 25 estimates. With interest rates expected to drop over the next two years, the $0.5 million surplus is expected to be one-time in nature and will not be retained in FY 26. All other categories of revenue are expected to exceed FY 25 revenue estimates by $0.2 million. The County expects to retain $0.1 million of all other revenues in FY 26. Overall, the County is estimating a FY 26 base revenue increase of approximately $2.6 million.

For FY 26, the County projects an increase of approximately $5.1 million in new undesignated revenue growth. This increase is made up of $1.3 million in new real estate construction, $0.9 million in personal property motor vehicles and all other personal property categories, $0.3 million in delinquent revenue, $0.4 million in sales tax revenues, and $2.2 million in Public Service Corporation revenues due to the completion of a pipeline project.

Total undesignated revenues are estimated to provide $7.7 million in new money for FY 26. General Fund designated revenues are estimated to increase by $1.3 million. $0.5 million is due to additional state funding increases for constitutional officers provided in FY 25 and FY 26, $0.3 million is due to the state CSA reconciliation in FY 25 and added to the base in FY 26, $0.2 million is due to Social Services reconciliation in FY 25 and added to the base in FY 26, and $0.3 million is due to an increase in local user fees in FY 26. Total County General Fund revenue growth for FY 26 is expected to be $9 million.

Real Estate Revenue

Real estate values are based on the actual assessed value as of January 1, 2024, and estimated increases for new construction. Based on building permit data, from January 1, 2024 to January 1, 2025, assessed values are expected to increase $177 million. Growth from January 1, 2025 to January 1, 2026, is estimated at $180 million.

Real estate values totaled $12.3 billion for the CY 24 land book, including land use. The CY 25 land book is estimated to be $12.5 billion. The CY 26 land book is estimated at $12.6 billion. Total real estate revenues are estimated at $88.7 million, which is $1.6 million more than the FY 25 estimate.

Personal Property

Personal property tax collections are based on the 2024 tax book, which is the most recent documentation of assessment values. From this data, the 2025 values are estimated. In addition, prior year collection rates are used as predictors of future year collections. The rate of collection in FY 24 and FY 25 is used to estimate the rate of collection in FY 26. The tax rate for personal property categories is $2.55 per $100 of assessed value.

This category includes motor vehicles (the County’s second largest source of revenue) and business personal property. FY 26 estimated taxes on motor vehicles total $21.8 million; business personal property taxes total $6.9 million.

Taxes on motor vehicles are estimated to grow by $0.9 million over the FY 25 estimate. Business personal property revenue is expected to grow by $1.6 million. In total, personal property revenue categories are expected to provide $2.5 million in growth.

Personal Property (Motor Vehicles)

REVENUE SUMMARY

Auto Sales

New car registrations for CY 2024 were down 4% compared to CY 2023, while new truck registrations were up 6%. This resulted in a net decrease in new vehicle registrations of 2%, as 46 less vehicles were purchased in 2024 as compared to 2023.

Source: Commissioner of Revenue’s Office

Sales and Use Taxes

Montgomery County’s third largest category of undesignated revenues is sales and use tax. Sales and use tax is a consumption tax paid for sales of certain goods and services. For FY 24, the County collected $13.5 million and estimated $13.6 million for FY 25. For FY 26, the County is estimating $14.1 million, which is $0.5 million more than the FY 25 budget.

FY 07

$7,093,880

FY 08 $7,333,314

FY 09 $7,205,999

FY 10 $6,885,153

FY 11 $7,184,055

FY 12 $7,639,848

FY 13 $7,986,545

FY 14 $7,939,087

FY 15 $8,467,926

FY 16 $8,857,514

Other Categories of Undesignated Revenue

FY 17

$9,048,892

FY 18 $9,423,190

FY 19 $9,489,392

FY 20

FY 21

FY 22

FY 23

FY 24

FY 25

$10,013,089

$10,701,631

$12,443,543

$12,997,571

$13,463,283

$13,588,174

FY 26 $14,109,401

Historically, the County’s other undesignated revenues grow at a modest level annually; however, for FY 26, all other categories of undesignated revenue are expected to increase by $3.1 million. Based on completion of the pipeline project, public service corporation taxes are expected to increase $2.1 million. The County expects machinery and tools revenues to increase $0.4 million. Delinquent and air craft taxes are estimated to remain flat. Due to expected changes in interest rates, the County’s interest on savings is also expected to remain flat. All other categories of undesignated revenue in total are estimated to increase by $0.6 million.

Machinery and tools is a tax on businesses at $1.82 per $100 in value, which is assessed at 60%/50%/40%, depending on the number of years the asset has been owned. Revenue collections were relatively flat for many

years. The County has experienced more growth in the last 10 years. The County estimates $3.3 million in collections for FY 25. The FY 26 estimate has been set at $3.7 million.

Machinery and Tool Revenue

State Budget: Local Impact

Over the past several fiscal years, the state has reduced the amount of funding provided to local governments. Public education, public safety, Constitutional Officers, local libraries, and other local services have all been affected. In many areas, the state has shifted the burden of revenue generation to local governments. For the Montgomery County Public School System, the State’s budget includes an additional $2,208,655 in new funding for general school operational needs. $216,613 in new state funding is included for Constitutional Officers and their staff for FY 26.

County Tax Rates

There is no change proposed to any of the County tax rates for FY 26. All tax rates are per $100 of assessed value.

Real Estate Tax Rates

As the graph denotes, the FY 26 budget uses the current tax rate of 75 cents, which is the same rate as was approved in FY 25.

Fund Balance

No General Fund balance dollars have been used to balance the FY 26 budget.

Reserve Funds

Reserve funds are dollars set aside that are either not required for expenditure in the current year or are earmarked for a specific future purpose.

Why Do We Need Reserve Funds?

The financial health of a locality is determined based on its “operating position,” which refers to three factors:

• The County’s ability to balance the budget using current revenue (not using fund balance in the operating budget).

• The County’s ability to maintain reserves for emergencies (establishing reserve funds for specific purposes).

• The County’s ability to maintain sufficient cash to pay expenses on a timely basis (ensuring an adequate level of cash flow reserves)

Why Shouldn’t We Use Reserve Money to Balance the Budget?

These funds are “non-recurring.” The use of these funds can only be for items that do not require expenditures in future years (one-time-only expenses). These funds cannot be used for salary increases, additional personnel, or program expansion that recurs in future years. For example, if $1,000,000 of reserve monies were used in the budget to cover salaries, the next year there would be $1,000,000 worth of costs and $1,000,000 less money. The County’s independent financial advisors have recommended a policy of maintaining undesignated fund balance between 10% and 12% of operating revenue.

The County maintains a number of specific reserve funds to respond positively to unforeseen circumstances, should they arise in the current year or the next year’s budget. The County’s primary reserve is the Cash Flow

Reserve, which sets aside approximately $28 million or 10.4% of the total FY 26 Budget to ensure sufficient cash to pay the bills. Other reserve funds that the County maintains include, but are not limited to:

• Capital Reserve to support unanticipated capital needs not funded in the Capital Projects Fund;

• Landfill Post Closure Reserve to support potential costs associated with monitoring and remediation of closed landfills;

• Facilities and Maintenance Reserve to support unanticipated facility and general maintenance items;

• Technology Reserve for technology projects and infrastructure requirements necessary for these projects;

• Rainy Day Reserve to address major unanticipated financial issues;

• Line of Duty Reserve to provide funds for family members of employees that are injured or killed in the line of duty;

• Parental Leave Reserve to provide funds to cover additional staffing costs, such as overtime, for departments whose employees are on extended leave;

• Road Maintenance Reserve to earmark the County share of the Revenue Sharing Program; and

• Conservation Easement Reserve to support conservation easements and the County’s land use program.

Financial Policies

• The Board of Supervisors adopted financial policies and goals to influence and guide the financial management of the County. The policies were adopted in March of 2000 and updated in October of 2015. The importance of adopting and following these policies include:

• Insulating the County from fiscal crisis,

• Enhancing the ability to maintain financial credit by achieving and maintaining the highest bond ratings possible,

• Promoting long-term financial stability by adhering to clear and consistent guidelines,

• Directing attention to the financial condition of the entire County rather than a single issue or area,

• Promoting coordination of long-term financial planning with daily operations, and

• Providing the Board of Supervisors and citizens a framework for measuring the fiscal impact of services provided against established guidelines.

See Revenue Summary, Appendix B for the specific policies.

PROPOSED BUDGET for Fiscal Year 2026

Revenue Estimates

PLANNING & GIS

14

PROPOSED BUDGET for Fiscal Year 2026 REVENUE

Appendix B: Financial Policies

Capital improvement budget policies

1. The County will consider all capital improvements in accordance with an adopted capital improvement program.

2. The County will develop a five-year plan for capital improvements and update each annually.

3. The County will enact an annual capital budget based on the five-year capital improvement plan. Future capital expenditures necessitated by changes in population, changes in real estate development, or changes in economic base will be calculated and included in capital budget projections.

4. The County will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts.

5. The County will use intergovernmental assistance to finance only those capital improvements that are consistent with the capital improvement plan and County priorities, and whose operating and maintenance costs have been included in operating budget forecasts.

6. The County will maintain all its assets at a level adequate to protect the County’s capital investment and to minimize future maintenance and replacement costs.

7. The County will project its equipment replacement and maintenance needs for the next several years and will update this projection each year. From this projection a maintenance and replacement schedule will be developed and followed.

8. The County will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted for approval.

9. The County will attempt to determine the least costly financing method for all new projects.

Debt policies

1. The County will confine long-term borrowing to capital improvement or projects that cannot be financed from current revenues except where approved justification is provided.

2. When the County finances capital improvements or other projects by issuing bonds or entering into capital leases, it will repay the debt within a period not to exceed the expected useful life of the project.

3. Net debt as a percentage of estimated market value of taxable property should strive to be below 3.0% but not exceed 4.0%.

4. The ratio of debt service expenditures as a percent of governmental fund expenditures (General Fund plus School Operating Fund expenditures less the General Fund transfer to the School Operating Fund) should strive to be below 10% but not exceed 12%.

5. The County will review the 10-year tax supported debt and lease payout ratio on an annual basis, and intends to maintain the ratio at 60% over a five-year period, with the ratio being no less than 55% in any one year during the period.

6. The County recognizes the importance of underlying and overlapping debt in analyzing financial condition. The County will regularly analyze total indebtedness including underlying and overlapping debt.

7. Where feasible, the County will explore the usage of special assessment, revenue, or other self-supporting bonds instead of general obligation bonds.

8. The County will retire tax anticipation debt, if any, annually and will retire bond anticipation debt within six months after completion of the project.

9. On all General Fund support, debt-financed projects, the County will attempt to make a down payment of at least 5% of total project costs in the aggregate from current resources. The long-term goal is to annually designate a portion of General Fund cash for one-time capital projects.

Reserve policies

The County will establish an emergency reserve to pay for needs caused by unforeseen emergencies, including unanticipated expenditures of a nonrecurring nature, or to meet unexpected small increases in service delivery costs. This General Contingency will be budgeted at not less than 1.0% of the General Fund.

Unassigned fund balance at the close of each fiscal year should be at least 12% of the General Fund plus School Operating Fund revenues, excluding the General Fund transfer to the School Operating Fund. Should the County find it necessary to access these funds in an emergency situation the Unassigned Fund Balance would be allowed to fall below the target described above. Any appropriation which causes Unassigned Fund Balance to drop below 12% will occur only after the County Administrator presents to the Board of Supervisors a plan and timeline for replenishing the balance to a minimum of 12%.

Investment policies OVERVIEW

The Montgomery County Board of Supervisors recognizes that it is the explicit constitutional responsibility of the County Treasurer to invest County Funds in accordance with Virginia Law. It is the desire of the Montgomery County Board of Supervisors to provide the Treasurer with the most timely information in order to best execute the powers of the Treasurer’s Office. To that end, the following Investment Policies are intended as a guide for the Montgomery County Board of Supervisors to facilitate this relationship.

POLICIES

The County will attempt to provide a cash-flow analysis of all funds on a continuous basis. Disbursement, collection, and deposit of funds will be scheduled to insure maximum cash availability.

The County will develop an annual cash-flow budget for County Operations to be reviewed quarterly with the Treasurer.

MONTGOMERY COUNTY, VIRGINIA

Summary by Function

Below is a summary chart for the following functions: General Government Administration; Judicial Administration; Public Safety; General Services; Health and Welfare; Parks, Recreation, Cultural; Community Development; and Other Agencies.

PROPOSED BUDGET for Fiscal Year 2026

EXPENDITURE PLANS

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for General Government Administration

General Government Administration consists of the following divisions: Revenue Sharing; Board of Supervisors; County Administration; County Attorney; Finance; Insurance; Information Technology; Commissioner of Revenue (Compensation Board and Assessments); Reassessment/Board of Equalization; Treasurer (Compensation Board and Collections); Electoral Board; and Contingencies (General and Special).

Below is a summary chart of each division and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts for each division are provided.

MONTGOMERY COUNTY, VIRGINIA

Budget Summary

BY DEPARTMENT

REVENUE

About

Payments to the City of Radford as part of a revenue sharing agreement between the County and the City are budgeted here. Payments are equal to 27.5% of all revenue collected in the 177 Corridor and are made semiannually to the City of Radford.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Board of Supervisors

Board of Supervisors VOTERS

Budget Summary

BOARD OF SUPERVISORS

Base Budget Discussion

About

There are seven members of the Montgomery County Board of Supervisors, each elected from one of the seven geographic districts. The Board of Supervisors serves as the County’s legislative arm, with both administrative and legislative responsibilities. Terms are for four years, with three or four seats for re-election each odd year.

Board of Supervisors

The Board sets the annual budget and local tax rates, enacts ordinances governing the County and its citizens, sets policies and oversees their administration. The Board also appoints members of various boards and committees, hires the County Administrator and County Attorney, and adopts the County’s comprehensive land use plan and related ordinances.

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $26,374 is Added for Compensation Increases for Board Members – $26,374 in additional funding is added in FY 26 to provide compensation increases to board members. This compensation increase will align board member pay with that of nearby and comparably sized localities in Virginia. The chart below shows the proposed increases to be effective January 1, 2026.

• $19,000 is Added for Travel, Meals, and Lodging – $19,000 in additional funding is added in FY 26 to provide for Board members to attend conferences and events and to provide additional resources for extended work sessions and board meetings planned throughout the year.

MONTGOMERY COUNTY, VIRGINIA

County Administration

Board of Supervisors VOTERS

County Administrator

Chief Financial Officer (CFO)

Management and Budget

Administration

Deputy County Administrator

Public Relations & Comm. Engagement Human Resources

Budget Summary

About

County Administration includes Administration, Human Resources, Management and Budget, and Public Relations & Community Engagement. The County Administrator, appointed by and accountable to the Board of Supervisors, leads County operations.

Administration

The County Administrator guides and directs the day-to-day operations of County government under the authority of the Board of Supervisors and has ultimate responsibility for all phases of local government. The County Administrator is responsible for recommending policies and implementing programs for the Board of Supervisors, and for ensuring compliance with federal, state and local laws.

Emergency Services

The Emergency Services Department coordinates volunteer fire and rescue agencies throughout the County to provide emergency medical services (EMS) and fire response. Emergency Services personnel participate in the Fire and Rescue Commission and provide oversight of the regional radio cache. Staff members provide emergency management of critical incidents to include hazardous material response and mitigation. The department also provides leadership, management and oversight of the Montgomery County Fire and EMS Department.

Beginning in FY 25, Emergency Services was combined into a newly created Fire and EMS Division. Information on the Fire and EMS budget can be found under the Fire & EMS tab.

Human Resources

Human Resources develops, recommends and interprets human resources policies for employees. Recruitment, selection, retention efforts and employee training programs, along with compensation and benefit programs, are managed through this office. The office also handles employee events, wellness initiatives including an onsite health clinic, worker’s compensation, performance management, incentive programs and employee service awards.

Management and Budget

The Management and Budget Office develops and administers the County’s budget and Capital Improvement Program (CIP). Budget staff perform budget and financial analysis, revenue forecasting, budget monitoring, program analysis, economic analysis, and special studies on County programs.

Public Relations & Community Engagement

The Public Relations & Community Engagement Department serves as a communication link between County departments, residents, the news media and other groups. The department manages and publishes print and digital content related to external and internal communications. The department maintains the County’s website, creates and publishes social media content, produces podcasts, writes and distributes news releases and media advisories, captures videos and photos, assists with event planning, and maintains the County’s photo library.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $5,000 is Added for the Employee Engagement Committee – $5,000 in additional funding is added in FY 26 to the County Administration Department to increase the budget for the Employee Engagement Committee (EEC). The additional funding is needed based on rising costs for events the EEC puts together for Montgomery County employees, such as the County picnic, public service recognition week, and breakfast with Santa.

• $1,500 is Added for Fuel and Vehicle Maintenance Costs for the Assistant County Administrator – $1,500 in additional funding is added in FY 26 to the County Administration Department to support fuel and vehicle maintenance costs for the Assistant County Administrator’s assigned vehicle.

• $2,000 is Added for the Web-Based Subscriptions for County Employees – $2,000 in additional funding is added in FY 26 to the Public Relations and Community Engagement Department to support centralized subscription-based web design programs. Several departments utilize specialized software for a variety of tasks. By centralizing the subscriptions, the Public Relations and Community Engagement Department can maintain County brand oversight and design assistance as needed.

• $15,000 is Added for an Audio Visual (A/V) Equipment Replacement Schedule – $15,000 in additional funding is added in FY 26 to the Public Relations and Community Engagement Department to begin an A/V replacement schedule. The additional funding is added to begin replacing various A/V equipment in the Board Room, various conference rooms throughout the Government Center, and various equipment used by staff, such as cameras, tripods, and drones.

• $25,000 is Added for Performance Management Software – $25,000 in additional funding is added in FY 26 to the Human Resources Department for performance management software. This software will provide managers with a more efficient and effective method of providing performance feedback to employees. Managers will have better tools to evaluate employees and be better positioned to assist employees with establishing goals and addressing areas for performance improvement.

• $81,165 is Added for a Benefits Coordinator (One FTE) – $81,165 and one FTE are added in FY 26 to the Human Resources Department. This position will assist existing staff with employee benefits, payroll,

state reporting mandates, processing new hires, and developing new processes for enhanced workflow. This new position will allow for better service to employees and the County.

• $5,970 is Added to Reclassify One Full-time Position – $5,970 in additional funding is added in FY 26 to the Human Resources Department to reclassify one Administrative Assistant to an Administrative Coordinator. The position has been assigned more responsibilities and tasks with no change in position classification. The reclassification will better align classification and compensation with staff roles and responsibilities.

MONTGOMERY COUNTY, VIRGINIA

County Attorney

Board of Supervisors VOTERS

County Attorney

Budget Summary

About

The County Attorney defends or brings actions on behalf of the County and any of its boards, officials, departments, or employees. This division also drafts and prepares County ordinances, leases, bonds, deeds and contracts in which the County is a party.

County Attorney

The County Attorney is appointed by and serves at the pleasure of the Board of Supervisors. The County Attorney represents and counsels the Board of Supervisors, County boards, commissions, departments, agencies, officials and employees on all legal and civil matters involving County government.

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $30,000 is Added to Cover Professional Legal Services – $30,000 in additional funding is added in FY 26 to the County Attorney for professional legal services. These funds will be used for outside legal counsel fees to cover litigation against the County throughout the year.

MONTGOMERY COUNTY, VIRGINIA Finance

VOTERS

Board of Supervisors

County Administrator

Chief Financial Officer (CFO)

Finance

Finance Purchasing

Budget Summary

BY DEPARTMENT

BY CLASSIFICATION

REVENUE BY CLASSIFICATION

FINANCE

About

Finance is responsible for ensuring the integrity of public funds by developing and monitoring compliance with internal controls and financial policies and procedures. The division is responsible for payroll, accounts payable, risk management, and purchasing. Finance also provides County Administration with financial reports and performs billing, collection and customer service for the Public Service Authority (PSA). The division also provides financial services to the Economic Development Authority (EDA), the Metropolitan Planning Organization (MPO), the Montgomery County Regional Tourism program, the New River Valley Emergency Communications Regional Authority (911 Authority), and the Montgomery Blacksburg Christiansburg (MBC) Development Corporation.

Finance

The Finance Department maintains accounting records related to the County’s financial system and prepares and distributes monthly expenditure reports. Finance also processes invoices for payment, payroll, and all state, federal and IRS earnings-related forms. In addition, the Finance Department performs billing, collection and customer service functions for the Public Service Authority.

Purchasing

The Purchasing Department supports County departments by providing procurement services and guidance. Formal invitations for bid and requests for proposal are developed, issued and awarded in accordance with the Virginia Public Procurement Act. Purchase orders are issued upon award.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 24 and projected fee collections in FY 25 and FY 26, an additional $15,000 is added to Finance’s base fee revenue for FY 26.

• Consolidation of Finance and Purchasing Departments – For the FY 26 Base budget, the Finance and Purchasing departments were consolidated into one department. This change was made for better management and operational efficiency. As a result, $218,042 in base Purchasing Department expenditures were consolidated in the Finance Department.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $14,700 is Added to Cover Professional Services Fee Increases – $14,700 in additional funding is added in FY 26 to the Finance Department for professional services. Professional Services, including audit and actuarial fees, increase each year, with audit fees projected to increase 7% in FY 26. This increased funding will allow the County to maintain financial advisory, actuarial and audit services from reputable firms.

MONTGOMERY COUNTY, VIRGINIA

Budget Summary

About

Insurance coverage for County buildings and their contents at replacement cost value, risk management consulting services and liability insurance for County officials are paid from this division.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Workers’ Compensation Audit Increase – A total of $30,000 is added to the County’s base workers’ compensation audit fees for FY 26. The increase is based on the FY 25 audit true-up and added positions from Fire and Rescue and the Sheriff’s Office.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $3,300 is Added for Insurance Premium Increases – $3,300 in additional funding has been added in FY 26 to cover the cost of insurance premium increases.

MONTGOMERY COUNTY, VIRGINIA

Information Technology

Board of Supervisors

County Administrator VOTERS

Assistant County Administrator

Information Technology

Budget Summary

About

Information Technology (IT) is responsible for planning, deploying, and managing technology solutions that support the County’s operations. The IT department supports the computing technology and telecommunications in all County facilities.

Information Technology

IT supports over 100 systems and applications in a high availability, 24X7 environment and over 1,500 end-user devices, including PCs, laptops, printers, and phones across multiple locations in the County.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 24 and projected fee collections in FY 25 and FY 26, an additional $1,000 is added to Information Technology’s base technology fee revenue for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $64,655 is Added for New Software Programs – $64,655 in additional funding is added in FY 26 to cover new software programs.

• $46,176 is added to increase security event management using Assura’s SIEM tool. This tool will collect data from all possible sources, analyze it, and then respond to detected security threats. The Assura SIEM offering (StellarOne) is an advanced platform that performs much more detailed analysis of incoming events, compared to County’s current software provider. Additionally, StellarOne will be monitored 24/7 by Assura Security Operations Center staff, providing constant monitoring for the County. The advanced capabilities of StellarOne will result in the IT security team (and IT as a whole) being much better informed on device and network activity in the County.

• $17,000 is added to implement a new online customer interface for paying tax bills and utility billing. This addition will modernize the County’s online customer experience with Tyler’s Resident Access Portal. This application is designed to be mobile friendly and include features of a modern payment portal.

• $1,479 is added for the purchase of Rich Web support. Rich Web support will help migrate the County from its on-premise exchange environment to Microsoft’s cloud solution. This addition brings the County current with technology used by most organizations and reduces complications collaborating with other entities, especially those already using Microsoft products. This would also eliminate the need for the County’s Zoom account.

• $109,615 is Added for a Security Analyst (One FTE) – $109,615 and one FTE are added to the Information Technology Division for FY 26. This position is added to provide support for continuous monitoring and remediations of County information systems. The addition of this position allows the County to handle new security implementations, continued monitoring of existing systems, remediations, and training. This position will also meet the Virginia Local Election Security Standards for a separation of duties between security personnel administering access control tasks and audit tasks.

• $53,342 is Added for Software Maintenance Service Contract Increases – $53,342 in additional funding is added in FY 26 to cover increases in software maintenance service contracts. $3,000 is included to cover additional Laserfische licenses, $28,000 is included to cover VMware and Docusign license increases, $14,000 is included to cover Munis and IAS world software license increases, $4,342 is included for network infrastructure support services, and $4,000 is included for Microsoft exchange.

• $20,000 is Added for a Copier Replacement Schedule – $20,000 in additional funding is added in FY 26 to begin a copier replacement schedule. The additional funding is added to begin 5 to 6-year life cycle replacement on all new Ricoh printers.

• $10,000 is Added for Telecommunications – $10,000 in additional funding is added in FY 26 to cover telecommunication costs. Telecommunication costs were consolidated in the IT budget for FY 25. Based on projected expenses for FY 25 and FY 26, $10,000 in additional funding is added for FY 26.

• $11,800 is Added for Computer Costs for New Positions – $11,800 in additional funding is added in FY 26 to cover the costs of providing computer hardware for new positions added to the FY 26 budget.

Note: $210,000 is included in the FY 26 capital budget to address future infrastructure issues. These funds are located in the County Capital tab at the end of the budget document

MONTGOMERY COUNTY, VIRGINIA

Commissioner of the RevenueCompensation Board

Commissioner of the Revenue VOTERS

Compensation Board

Budget Summary

About

The Commissioner of the Revenue is an elected Constitutional Officer responsible for assessing the fair market value of all property, personal and business, subject to taxation and maintaining real estate ownership records. This division accounts for the costs shared between the County and the State Compensation Board.

Commissioner of the Revenue

The Commissioner of the Revenue Division assesses all tangible personal property in accordance with the Code of Virginia, verifies personal property data filed by taxpayers, calculates assessments and taxes, and issues the personal property tax book annually. It also assists taxpayers with filing state income tax returns.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Compensation Board Revenue Adjustments – A total of ($1,671) is reduced to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 25 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. This adjustment reconciles the County’s budget to the FY 25 approved Compensation Board budget that contains a 3% increase for locally supported positions July 1, 2024. The reduction in funds is due to staff turnover.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses.

Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $4,771 is Added to the Commissioner of the Revenue’s Compensation Board Revenue Budget – These funds account for a 3% across the board salary increase included in the state’s budget for locally supported positions July 1, 2025. Since the County is providing a 3% compensation increase to all County funded positions in FY 26, these funds provide additional revenue to the County. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state.

MONTGOMERY COUNTY, VIRGINIA

Commissioner of the RevenueAssessments

Commissioner of the Revenue VOTERS

Assessments

Assessments Land Use

Budget Summary

ASSESSMENTS

About

The Assessment division is responsible for maintaining real estate ownership records, including transfers of ownership recorded in the Circuit Court Clerk’s Office, assessing the value of real property, administering the land use program, and mapping of real property. The County provides 100% of the funding since real estate and personal property assessments are a primary focus of this division.

Assessing

The Assessing Department, which reports to the Commissioner of the Revenue, maintains real estate ownership records, assesses the value of real property, issues the real estate land book annually, administers the land use program, and handles the mapping of real property. This department also administers the County’s real estate tax relief programs for veterans and the elderly and disabled.

Land Use

The Land Use program provides for the deferral of real estate taxes on real estate that qualifies for agricultural, horticultural and forestry uses. It processes new and renewal applications, validates information provided on the applications, and calculates use values per crop yields and soil classifications.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%.

All other fringe benefits rates remain unchanged.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Treasurer - Compensation Board

Budget Summary

About

The Treasurer is an elected Constitutional Officer responsible for collecting all County revenue, submitting financial reports to the state and County, authorizing County disbursements, and cash management, which includes managing the County’s bank and investment accounts.

Treasurer-Compensation Board

This division accounts for the operational costs shared between the State Compensation Board and the County. The Treasurer Division also collects current and delinquent tax payments, motor vehicle license fees, issues dog tags, and collects and remits payments to the Commonwealth of Virginia for individual and business state income and estimated state income taxes.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Compensation Board Revenue Adjustments – A total of ($4,923) is reduced to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 25 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. This adjustment reconciles the County’s budget to the FY 25 approved Compensation Board budget that contains a 3% increase for locally supported positions July 1, 2024. The reduction in funds is due to staff turnover.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses.

Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $4,946 is Added to the Treasurer’s Compensation Board Revenue Budget – These funds account for a 3% across the board salary increase included in the state’s budget for locally supported positions July 1, 2025. Since the County is providing a 3% compensation increase to all County funded positions in FY 26, these funds provide additional revenue to the County. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state.

MONTGOMERY COUNTY, VIRGINIA

Budget Summary

About

The Treasurer is an elected official responsible for collecting all County revenue, submitting financial reports to the state and County, and authorizing County disbursements.

Treasurer-Collections

This division is funded solely by the County. Treasurer-Collections collects current and delinquent tax payments, motor vehicle license fees, issues dog tags, and collects and remits payments to the Commonwealth of Virginia for individual and business state income and estimated state income taxes.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $19,300 is added for DMV Stop Fees – The Treasurer’s Office issues DMV stops on delinquent taxpayers. This program prevents taxpayers from receiving DMV license renewals until their delinquent taxes are paid to the County. The DMV charges an administrative fee to the County, which the Treasurer’s Office passes onto the taxpayer. This expenditure is offset by a like amount of revenue.

• $14,000 is Added for Postage – $14,000 in additional funding is added in FY 26 to the Treasurer

Collections Division to increase the postage budget. The additional funding is added based on rising costs for postage and the increased number of property bills sent to citizens by the Treasurer.

• $5,000 is Added for Travel, Meals, and Lodging – $5,000 in additional funding is added in FY 26 to provide for Treasurer staff to attend the Treasurer’s Association of Virginia Annual Conference, in support of gaining and maintaining professional certifications.

MONTGOMERY COUNTY, VIRGINIA

Office of Elections

Electoral Board

Office of Elections

Budget Summary

About

The Electoral Board/Office of Elections provides registration and election services to eligible citizens of Montgomery County. These services include supporting and training individuals and groups holding registration drives; providing in-house voter registration; processes through the Virginia Election and Registration System (VERIS); purchasing, maintaining, and testing all voting equipment and electronic poll books; providing registered voters with a voter notice; and preparing and conducting fair elections per the Code of Virginia Election Laws. The office also provides Officer of Election training, processes candidate filings and petitions, provides proof and printing of ballots, conducts early in-person voting, maintains polling locations and processes mailed absentee ballots, etc.

Office of Elections

The Office of Elections division is committed to providing each citizen of Montgomery County with the opportunity to exercise his or her right to vote in an efficient and equitable manner. The Director of Elections registers voters, maintains voting records, and manages elections by staffing polling locations for the County’s 29 precincts plus the Central Absentee Precinct (CAP). The staff conducts elections, supervises poll workers on Election Day and submits all election results through Election Night Reporting (ENR) to the state.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Revenue Adjustments – A total of $6,187 is added to the base Office of Elections’ revenue budget. These funds account for the adjustment of revenues as reported by the State and reconciled to the FY 25 County approved budget.

• One-time Funding Reduction – A total of $43,060 is reduced from the base personal services budget for FY 26. The total consisted of funds provided during the FY 25 budget for the one-time costs of seasonal wages to assist the Office of Elections with the 2024 presidential election. Presidential elections require additional one-time resources that are not contained in the Office of Elections’ base budget.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Contingencies - General

Board of Supervisors

County Administrator VOTERS

Contingencies

General

Budget Summary

CONTINGENCIES -

About

This division provides for contingency reserves to pay for unanticipated expenditures that arise during the year.

Contingencies – General

Contingencies – General provides for unknown and unanticipated expenditures that arise during the year but have not been included in the approved budget.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $85,000 is Added to the General Contingency Budget – The County’s Financial Policies require retention of 1% of the County’s general government portion of the General Fund to cover contingency needs. An additional $85,000 is needed to comply with this policy.

MONTGOMERY COUNTY, VIRGINIA

Contingencies - Special

Board of Supervisors

County Administrator VOTERS

Contingencies

Special

Budget Summary

EXPENDITURES BY DEPARTMENT

EXPENDITURES BY CLASSIFICATION

REVENUE BY CLASSIFICATION

About

Special Contingencies serves as a holding account for funds approved for a specific purpose for which the details are not finalized. For funds held in special contingencies to be expended, the Board of Supervisors must approve a resolution transferring them to the appropriate division.

Personnel

Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• $200,000 is Included for Salary Adjustments to Maintain the County’s Compensation and Classification Plan – $200,000 is included annually for salary adjustments to maintain the County’s compensation and classification plan.

• ($52,594) is Removed from Funds Remaining after Allocating Compensation Increases to County Departments – Monies were held in Special Contingencies until transferred to County departments to provide a 5% compensation increase for classified and part-time non-classified County employees July 1, 2024 and to maintain the County’s Compensation and Classification Plan. $52,594 is the remaining balance after the funding was distributed. These funds have been removed for FY 26 as they are no longer needed as base funds.

• ($1,643,678) is Removed from the additional state funds provided to the School Operating Fund – The FY 25 budget resolution approved by the Board of Supervisors included language that if additional state funding was received for the School Operating Fund, the General Fund transfer to the School Operating Fund would be reduced by the amount of the additional state funding and the balance held in Special Contingencies to be allocated by the Board under future action. The state approved budget included an additional $2,760,727 in state funding for public schools. The County transfer to the School Operating Fund was, therefore, reduced by $2,760,727. $1,117,049 was used to fund paid fire staffing in eastern Montgomery. The remaining $1,643,678 was held in Special Contingencies and required additional action by the Board of Supervisors prior to use. A separate resolution was provided after the approved budget to appropriate the additional $2,760,727 in state funding for public schools. These funds have been removed from the base budget and will be used to cover new expenditure needs in the FY 26 budget.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also

include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $1,236,811 is Added to Provide a 3% Compensation Increase in FY 26 – $1,236,811 in additional funding is added in FY 26 to cover the cost of a 3% compensation increase for classified and part-time nonclassified County employees July 1, 2025.

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for Judicial Administration

Judicial Administration consists of the following divisions: Commonwealth Attorney; Circuit Court; General District Court; Juvenile and Domestic Relations Court; Magistrate; Circuit Court Clerk.

Below is a summary chart of each division and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts for each division are provided.

MONTGOMERY COUNTY, VIRGINIA

Commonwealth Attorney

Prosecution Collections

Budget Summary

About

The Commonwealth Attorney is an elected Constitutional Officer responsible for the prosecution of all felony and certain misdemeanor and traffic offenses within Montgomery County, including those occurring in the towns of Blacksburg and Christiansburg and on the Virginia Tech campus. Court is held five times per week in District Court, four times per week in Circuit Court and two to three times per week in Juvenile and Domestic Relations Court.

Prosecution

This department is responsible for trying cases in Circuit Court, two General District Courts and the Juvenile and Domestic Relations Court. Through the Victim Witness Program, the office assists victims and witnesses involved in the prosecution of cases. The office advises citizens, law enforcement agencies and magistrates regarding the interpretation of criminal law.

Collections

The Collections department is responsible for the collection of delinquent fines and costs from Juvenile and Domestic Relations District Court, General District Court(s) and the Circuit Court. This entails collection of reports from the Clerk’s Office, preparation and mailing of collection letters for all fines/costs not paid within 40 days, generating reports and accounting procedures.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments –For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Compensation Board Revenue Adjustments –A total of $57,350 is added to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 25 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. This adjustment reconciles the County’s budget to the FY 25 approved Compensation Board budget that contains a 3% increase for locally supported positions July 1, 2024. The adjustment also includes a new legal assistant position (1 FTE) added by the state in FY 25, which increases the Commonwealth Attorney’s base FTE count from 17 to 18.

• Victim Witness Base Revenue Increase – Based on the actual Victim Witness grant that was reconciled in FY 25, an additional $14,747 is added to Commonwealth Attorney’s base fee revenue for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $25,088 is Added to the Commonwealth Attorney’s Compensation Board Revenue Budget –These funds account for a 3% across the board salary increase included in the state’s budget for locally supported positions July 1, 2025. Since the County is providing a 3% compensation increase to all County funded positions in FY 26, these funds provide additional revenue to the County. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state.

MONTGOMERY COUNTY, VIRGINIA

Circuit Court

Budget Summary

CIRCUIT COURT

About

The Circuit Court, with two resident judges, is the trial court with broadest powers in the County and handles all civil cases with claims of more than $25,000. It shares authority with the General District Court to hear matters involving claims between $4,500 and $25,000. The Circuit Court also hears all serious criminal matters involving felonies, handles family matters including divorce, and hears cases appealed from the General District Court and the Juvenile & Domestic Relations District Court. The County provides general operating funds for each judge, funding for 2 legal assistants and a judicial law clerk, and office furnishings for the staff.

Circuit Court

The Circuit Court is the principal trial court of the state and has both original and appellate jurisdiction.

Juries

This department provides basic operating funds for jury services, including juror and witness compensation.

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

CIRCUIT

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

General District Court

GENERAL DISTRICT COURT

Budget Summary

EXPENDITURES BY DEPARTMENT

GENERAL DISTRICT COURT

About

The General District Court hears criminal, traffic and civil cases, misdemeanor cases, and preliminary felony cases. The division has exclusive original jurisdiction over any claim not exceeding $4,500 and has concurrent jurisdiction with the Circuit Court over any claim from $4,500 to $25,000, except for personal injury and wrongful death cases in which the amount in question does not exceed $50,000. Both totals exclude interest and attorney’s fees; however, claims, counter-claims and crossclaims filed in actions for unlawful detainer are not subject to the maximum jurisdictional limit of $25,000.

General District Court

This division is responsible for ensuring compliance with all policies and procedures as established by the Supreme Court. The General District Court holds court five days a week and staffing is comprised of a clerk and 10 deputy clerks.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Juvenile and Domestic Relations Court

VOTERS

General Assembly

Juvenile and Domestic Relations Court

Juvenile and Domestic Relations Court Court Services

Budget Summary

About

The Juvenile and Domestic Relations Court has jurisdiction over all proceedings involving minors, children in need of services, and children who have been abused or neglected. This division also provides probation, counseling and rehabilitation services to children and their families.

Juvenile and Domestic Relations Court

The Juvenile and Domestic Relations District Court hears all matters involving juveniles such as criminal or traffic matters. Juvenile delinquency cases are cases involving a minor under the age of 18 who has been accused of committing an offense that would be considered criminal if committed by an adult. Other juvenile offenses may be referred to as status offenses. Status offenses are those acts that are unlawful only because they are committed by a minor.

In addition, this court handles other matters involving the family such as custody, support and visitation. The court also hears family abuse cases, cases where adults have been accused of child abuse or neglect, and criminal cases where the defendant and alleged victim are family or household members.

Court Services

The 27th District Court Service Unit (CSU), also commonly referred to as Court Services, is a component of the Virginia Department of Juvenile Justice (DJJ) with the Christiansburg Office providing services to Montgomery, Floyd, and Giles. The office completes reports, processes intake complaints, and provides probation supervision to juveniles.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• No

Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Magistrate

General

Assembly

Magistrate

MAGISTRATE

Budget Summary

EXPENDITURES BY DEPARTMENT

BY

REVENUE

BY CLASSIFICATION

About

The Magistrate’s Office provides judicial services for the 27th Judicial District within Region 1. Magistrates possess regional authority and assist all districts within Region 1, which consist of the 27th, 28th, 29th, and 30th Judicial Districts. The Magistrate’s Office operates 24 hours a day, 7 days a week.

Magistrate

The Executive Secretary of the Supreme Court of Virginia appoints magistrates. The Magistrate’s Office conducts probable cause hearings to determine the issuance of arrest warrants, summonses, search warrants, temporary detention orders, emergency custody orders, emergency protective orders, and civil processes. Magistrates also conduct bail hearings to determine release or commitment to jail. Magistrates can accept prepayments for certain traffic infractions and pre-payable misdemeanor offenses.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Clerk of the Circuit Court

Clerk of the Circuit Court VOTERS

Budget Summary

About

The Clerk of the Circuit Court is an elected Constitutional Officer who serves as the record keeper for the County. This division serves as the repository for the Court’s records, a clearinghouse for court information, and is also responsible for maintaining records for all bench and jury trials.

Clerk of the Circuit Court

The Clerk of the Circuit Court Division issues concealed handgun permits, subpoenas, processes court orders and collects court fees. Divorces, adoptions, legal name changes, deeds, deeds of trusts, land plats, and assignments are recorded in this office. Other public services include issuing marriage licenses, notary applications, assisting with genealogy research, entering judgments, probating wills and qualifying estate executors, and scanning and imaging of documents.

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Compensation Board Revenue Adjustments – A total of $8,407 is added to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 25 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. This adjustment reconciles the County’s budget to the FY 25 approved Compensation Board budget that contains a 3% increase for locally supported positions July 1, 2024.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 24 and projected fee collections in FY 25 and FY 26, ($47,600) is reduced from the Clerk’s base fee revenue for FY 26. The Clerk of the Circuit Court receives excess fees when revenues exceed thresholds set by the state. The County receives 33% of the excess collection. Based on actual collections for FY 24 and 25, $47,600 has been reduced for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $12,523 is Added to the Clerk of the Circuit Court’s Compensation Board Revenue Budget –These funds account for a 3% across the board salary increase included in the state’s budget for locally supported positions July 1, 2025. Since the County is providing a 3% compensation increase to all County funded positions in FY 26, these funds provide additional revenue to the County. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state.

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for Public Safety

Public Safety consists of the following divisions: Sheriff (Compensation Board and County); Fire and Rescue; Fire and EMS; and the Animal Care & Adoption Center.

Below is a summary chart of each division and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts for each division are provided.

MONTGOMERY COUNTY, VIRGINIA

Sheriff - Compensation Board

VOTERS

Sheriff Compensation Board

Civil and Court Security

Field Operations

Jail Block

Jail Operations

Budget Summary

Civil and Court Security

About

The Montgomery County Sheriff’s Office safeguards life, liberty and property, and maintains civil order. The Sheriff’s Office provides uniformed patrols, school resource officers, civil process service, corrections and courthouse security; and conducts motor vehicle accident investigations and criminal investigations. This division is designed to show the costs shared between the state and the County for operations of the Sheriff’s Office.

The Civil and Court Security department’s responsibilities include service of civil process such as subpoenas, asset levies and seizures, and sale of those assets. Security of the Courthouse and surroundings is also maintained by this division.

Dispatching

Dispatching functions are handled by the New River Valley Emergency Communications Regional Authority.

Jail Block

This is the jail per diem sent to the County by the State for the housing and care of inmates. Funds are based on the number of inmates housed and the charges placed against them and/or their sentence. All funds are used to operate the jail as mandated by the Code of Virginia.

Jail Operations

This department provides for the care, security, and transportation of jail inmates. Educational, recreational and medical services are provided to those inmates requesting and/or needing them. Daily logs are kept on various duties, such as checking on each inmate two times each hour and transporting inmates to other jurisdictions and courts. The number of inmates housed in the jail must be maintained and reported to the state.

Field Operations

Field Operations’ duties include patrolling the County, responding to citizen calls for service, crime prevention, state criminal and traffic law enforcement, County ordinance enforcement, life and property protection, peace preservation, warrant service, and criminal apprehension.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Compensation Board Revenue Adjustments – A total of $179,303 is added to the base Compensation Board revenue budget. These funds account for the adjustment of revenues as reported by the State Compensation Board reconciled to the FY 25 County approved budget. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state. This adjustment reconciles the County’s budget to the FY 25 approved Compensation Board budget that contains a 3% increase for locally supported positions July 1, 2024.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $169,285 is Added to the Sheriff’s Office Compensation Board Revenue Budget – These funds account for a 3% across the board salary increase included in the state’s budget for locally supported positions July 1, 2025. Since the County is providing a 3% compensation increase to all County funded positions in FY 26, these funds provide additional revenue to the County. Each year, Compensation Board funding is reconciled to the County approved budget when final numbers are received from the state.

MONTGOMERY COUNTY, VIRGINIA

Sheriff - County

VOTERS

Sheriff County

Civil and Court Security Jail Operations

Civil & Court Security Criminal Investigations Field Operations

Civil & Court Security Police Training Academy Support Services

Civil & Court Security

Inmate Litter Pickup Program

Western VA Regional Jail

Budget Summary

About

The Montgomery County Sheriff’s Office safeguards life, liberty and property, and maintains civil order. The Sheriff’s Office provides uniformed patrols, civil process service, corrections and courthouse security; and conducts motor vehicle accident investigations and criminal investigations.

Civil and Court Security

The Civil and Court Security department’s responsibilities include service of civil process such as subpoenas, asset levies and seizures, and sale of those assets. Security of the Courthouse and surroundings is also maintained by this division.

Dispatching

Public Safety Answering Point (PSAP) functions are handled by the New River Valley Emergency Communications Regional Authority.

Jail Operations

This department provides for the care, security, and transportation of jail inmates. Educational, recreational and medical services are provided to those inmates requesting and/or needing them. Daily logs are kept on various duties, such as checking on each inmate two times each hour and transporting inmates to other jurisdictions and courts. The number of inmates housed in the jail must be maintained and reported to the state.

Field Operations

Field Operations’ duties include patrolling the county, responding to citizen calls for service, crime prevention, state criminal and traffic law enforcement, County ordinance enforcement, life and property protection, peace preservation, warrant service, and criminal apprehension.

Police Training Academy

The Sheriff’s Office utilizes Cardinal Criminal Justice Academy. To meet the standards of the Department of Criminal Justice Services and state training requirements, the academy provides for basic training, recertifications, and other specialized training as required.

Wireless 911

The state mandates that localities provide Wireless 911 services, and the Virginia Wireless Board supplements funding for Wireless 911. The New River Valley Emergency Communications Regional Authority assumed these duties July 2016.

Support Services

The Support Services division provides administrative and operational support services to all other divisions within the Sheriff’s Office. Responsibilities include grants, accreditation, public presentations/community events, Drug Abuse Resistance Education (D.A.R.E.), school resource officers, training, policy/procedure, media relations, public information, uniform/equipment acquisition, fleet management, website management, Citizen’s Police Academy, and budget planning.

Criminal Investigations

The Criminal Investigations division investigates complex cases involving traditional and non-traditional criminal conduct, including but not limited to organized crime, misuse of public funds, fraud, consumer fraud, crimes against persons including murder, rape, robbery, crimes against property, narcotics and other crimes. The department also processes crime scenes, collects/stores evidence, extracts digital evidence, and conducts interviews and polygraph operations.

Inmate Litter Pickup Program

This covers the cost of overtime for a deputy to supervise the Inmate Litter Pickup Program to clean litter from

County roads.

Contracted Overtime

These are services paid for by outside entities such as Virginia Tech, U.S. Forest Service and the U.S. Marshals.

Western VA Regional Jail

The County is a participant in the Western Virginia Regional Jail (WVRJ) in Roanoke County, Virginia. The WVRJ facility has 805 general population beds and can be expanded to hold an additional 649 inmates. The regional jail serves Montgomery, Franklin and Roanoke counties and the City of Salem.

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base FTE Increase – Eight additional FTEs were added to the County Jail Operations off-cycle during FY 25. These positions were added due to staffing levels which were inadequate to consistently maintain the necessary coverage and to safely conduct the required duties of the deputies. The total personal services cost of these eight positions is $682,528, which has been added to the base budget for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also

include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $554,030 is Added for the Western Virginia Regional Jail – $554,030 in additional funding is added to the Western Virginia Regional Jail budget for FY 26. $554,030 is added to cover per diem costs based on the number of inmates housed at the jail.

• $198,550 is Added to the Vehicle Replacement Budget – $198,550 in additional funding is added in FY 26 to the Sheriff’s vehicle replacement budget. Traditionally, the Sheriff’s vehicle replacement budget provides for the replacement of 5 vehicles annually. Due to rising costs of vehicles, the Sheriff’s base budget only allows for the replacement of 3 vehicles annually. In order to maintain the Sheriff’s fleet and the replacement of 5 vehicles annually, $198,550 is added for FY 26.

• $100,000 is Added for the Replacement of Cameras and Interview Video Systems – $100,000 in additional funding is added in FY 26 for the replacement of existing in-car cameras, body cameras, fleet cameras, and interview video system. This funding increase will place the Sheriff’s Office on a routine replacement schedule that includes software and hardware replacement, maintenance, and support.

• $96,226 is Added for an Investigator Position (One FTE) – $96,226 and one FTE are added to the Sheriff’s Office. Over the past decade the instances of cybercrimes involving the use of the digital media have increased significantly. These crimes commonly include fraud, child exploitation, threats, and harassment. The advent of social media platforms has also increased the occurrence and complexity of these types of crimes. This position will provide additional support to investigators to solve cybercrimes more efficiently and effectively.

MONTGOMERY COUNTY, VIRGINIA

Fire Departments and Rescue Squads

VOTERS

Board of Supervisors

Fire and Rescue Commission

Fire Departments

Blacksburg Fire Department

Christiansburg Fire Department

Elliston Fire Department

Long Shop McCoy Fire Department

Riner Fire Department

Rescue Squads

Blacksburg Rescue Squad

Civil & Court Security

Christiansburg Rescue Squad

Civil & Court Security

Long Shop McCoy Rescue Squad

Civil & Court Security

Riner Rescue Squad

Budget Summary

About

The County provides funding for five volunteer fire departments and four volunteer rescue squads that deliver emergency services to citizens.

Retirement and Insurance

The County has coverage for fire and rescue members which includes accident and sickness, workers compensation, life insurance, and retirement benefits.

Fire Departments

Fire departments provide volunteer fire services to County and town residents. The Virginia Department of Fire Programs’ basic training for firefighters involves a minimum of 192 hours, which includes 160 hours of Firefighter Level 1 training and 32 hours of hazmat training. This does not include the in-house training required to operate the equipment of individual departments.

Rescue Squads

Rescue squads provide volunteer and career rescue services to County and town residents. The Virginia Department of Health’s Office of Emergency Medical Services and local squads offer training for squad members. The Emergency Medical Technician (EMT) is required to complete a minimum of 154 hours of training, enhanced rescue members have 256 hours of training, the intermediate rescuer has 528 training hours and paramedics have a minimum 781 training hours. This prepares rescue squad volunteers to provide basic emergency medical care and transportation for patients. Local squads require volunteers to answer calls at will and on assigned call nights.

Regional Fire and Rescue Training Center

The Regional Training Center is available to all agencies in Montgomery County as well as Floyd, Giles and the Radford Army Ammunition Plant Fire Departments. The Training Center property is owned by the Blacksburg Fire Department Foundation with a 25-year lease to Montgomery County. All buildings on site have been purchased through private donations and grants, and the County insures the property. The Town of Christiansburg and the Town of Blacksburg provided labor and equipment for site development. Volunteer fire personnel constructed training aids such as a maze, ladder tower, and ventilation simulator for use at the center.

Key Performance Indicators

Fire and Rescue Operating Budgets

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• $1,060,596 is Included for Fire and Rescue Operations – A total of $1,060,596 in base funds are included for Fire and Rescue operations.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $65,032 is Added for Recurring Fire and Rescue Operational Needs – $65,032 in additional recurring funding is added in FY 26, including $3,532 for Blacksburg Rescue Squad, $6,000 for Long Shop McCoy Rescue Squad, $5,500 for Riner Rescue Squad, and $50,000 for a new Special Operations Team. Recurring funds will be used to support general daily operations of each squad/team.

• $94,000 is Added for Fire and Rescue Insurance Needs – $94,000 is added for Fire and Rescue Insurance needs. Based on actual premium costs in FY 25 and anticipated costs in FY 26, $94,000 is added.

MONTGOMERY COUNTY, VIRGINIA

Fire and EMS

Board of Supervisors VOTERS

Budget Summary

FIRE AND EMS

About

Montgomery County has enjoyed a long and successful history of volunteerism within the various fire and rescue departments across the County. In recent years, areas of the County have followed national trends and been impacted by a decrease in volunteerism, while calls for service have continued to grow. In order to ensure effective EMS response to all citizens, after reviewing months of calls for service reports, response times, and various other aspects of the EMS system, the County began a career staffed agency in FY 22.

Montgomery County Fire and EMS

The Montgomery County Fire and EMS Department provides 24-hour/365-day coverage emergency medical response in areas of the County to ensure timely response to 911 calls. The department also coordinates volunteer fire and rescue agencies throughout the County to provide emergency medical services (EMS) and fire response within Montgomery County. Emergency Services personnel participate in the Fire Rescue Commission and provide oversight of the regional radio cache. Staff members provide emergency management of critical incidents to include hazardous material response and mitigation.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 24 and projected fee collections in FY 25 and FY 26, an additional $150,000 is added to Fire and EMS’s base service fee revenue for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $1,146,808 is Added for Additional Fire and EMS Support in Eastern Montgomery County (12 FTEs) – $1,146,808 in additional funding is added in FY 26 for additional fire staffing in eastern Montgomery. Montgomery County has enjoyed a long and successful history of volunteerism within the various fire and rescue departments across the County. Over the past year, there has been a noticeable decline in fire response in the eastern Montgomery area. In order to ensure effective fire response to citizens, and after collaborating with the individuals who volunteer for the Elliston Volunteer Fire Department and reviewing various other aspects of the fire operations in the eastern Montgomery area, the County has determined that additional staffing is necessary to begin in FY 26.

To cover existing demands for fire service in eastern Montgomery, the following additions are included:

• $1,118,183 for personnel services including 4 Firefighter Paramedics, 4 Firefighter EMT positions, 2 Fire Lieutenant positions, and 2 Fire Captain positions.

• $28,625 for Uniforms and wearing apparel

• $77,837 is Added for an Administrative Coordinator (One FTE) – $77,837 and one FTE are added in FY 26 to the Fire and EMS Division. This position will assist existing staff with revenue recovery, financial reporting, equipment ordering and data entry. This new position will help reduce the workload of existing staff and allow for better service to the County.

• $21,000 is Added for Employee Physicals – $21,000 in additional funding is added in FY 26 for employee physicals. Annual physicals are required to ensure MC Fire-EMS employees meet the NFPA 1582 standard and all fire suppression employees are medically certified by a physician to safely perform essential job tasks.

• $55,500 is Added for the Maintenance of Current Fire Apparatus – $55,500 in additional funding is added in FY 26 to maintain the division’s current fire apparatus in the fleet. Like regular vehicles, fire apparatus must have consistent preventative maintenance to ensure proper working condition. Along with normal preventative maintenance on the engine, generators, pumps, foam proportioning systems, compressed air systems, electrical components must be regularly maintained as well. Also, due to the nature of the systems on fire apparatus, repairs are costly and can only be completed by persons meeting the NFPA 1071 standard.

• $8,800 is Added for the Annual Replacement of Turnout Gear – $8,800 in additional funding is added in FY 26 for an annual replacement of turnout gear and associated equipment. Per NFPA Standards,

turnout gear along with most other firefighting equipment has a 10-year lifespan. To lessen the burden on the budget in future years, additional funding is provided to establish an annual replacement schedule.

• $16,000 is Added for Training – $16,000 in additional funding is added in FY 26 for staff training. This addition will allow employees to attend classes each fiscal year that are not offered by the department or the Virginia Department of Fire Programs. This funding can also be used to host classes that are not funded by the Virginia Department of Fire Programs. With the request for additional staffing, the amount provided will bring the base budget up to an amount to cover all current and potential additional employees in the Fire Division.

MONTGOMERY COUNTY, VIRGINIA

Animal Care and Adoption Center

Board of Supervisors

County Administrator VOTERS

Assistant County Administrator

Animal Care and Adoption Center

Budget Summary

BY CLASSIFICATION

BY CLASSIFICATION

About

The Animal Care and Adoption Center, which opened in 2017, combines animal care and recreation services. Located on five acres along Cinnabar Road near the County’s Frog Pond recreational area, the 16,300 square foot Center’s primary goal is to increase animal adoptions by expanding visitation and maximizing visibility through attractive design, in a recreational setting. The Center represents a transition from a traditional pound facility to a community hub for companion animal resources and leisure time events. Donations and County dollars support the Center and its staff.

Animal Care and Adoption Center

The Center offers educational tours and classes, vaccination and spay/neuter clinics, pet training classes, animal demonstrations, outdoor events and other leisure time activities. Long range plans include integrating the Center with walking trails connecting the Frog Pond, picnic shelters, and a disc golf course, making the entire area a recreation destination.

Animal Care and Adoption Center-Donations

Donations support 13% of the facility and staffing costs to operate the Center.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 24 and projected fee collections in FY 25 and FY 26, an additional $13,000 is added to the Animal Care and Adoption Center’s base fee revenue for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for General Services

Below is a summary chart for General Services and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts the division are provided.

MONTGOMERY COUNTY, VIRGINIA

General Services

Board

GENERAL SERVICES

Budget Summary

GENERAL SERVICES

Administration

About

The General Services division is responsible for auxiliary and operational support services for all County divisions. Services are provided through Administration, Animal Control, Buildings and Grounds, Centralized Maintenance, Housekeeping, Lawns and Landscaping, Litter Control, and Solid Waste Collection. The division also oversees Fleet Operations, Engineering, Stormwater, Landfills, and Building Inspections.

This department manages administrative functions for the division.

Animal Control

Animal Control enforces County ordinances and state laws relating to animals, including impounding stray dogs, investigating livestock deaths, quarantining animals involved in bite cases, and investigating animal cruelty. It also maintains the safety of the public as it pertains to animal ordinances and educates the public about animal laws and welfare.

Buildings and Grounds

Buildings and Grounds is responsible for the preservation of County facilities. It maintains 38 County buildings and facilities, eight recreational parks and two industrial parks, and provides general labor support for repair and remodeling projects.

Centralized Maintenance

Centralized Maintenance funds one-time projects such as emergency repairs that are not generally funded through the operational budget due to their nature.

Fleet Operations

Fleet Operations provides efficient repairs, routine maintenance, and state inspections of about 200 County vehicles, including the Sheriff’s fleet.

Housekeeping

The Housekeeping department provides custodial services to ensure the cleanliness and safety of 13 County facilities, which is approximately 420,000 square feet of space.

Building Inspections

Building Inspections is responsible for the enforcement of the Uniform Statewide Building Code to protect health, safety and welfare of citizens.

Lawns & Landscaping

Lawns & Landscaping is responsible for maintaining 159 acres of property, including landscaping services, tree trimming and grass cutting. It also assists in maintaining recreational facilities, including the Motor Mile Complex, Plum Creek ballfields, Auburn ballfields, and Creed Fields.

Litter Control

Litter Control manages the annual roadside waste clean-up, hazardous waste collection and annual latex paint exchange. It also works in conjunction with the towns of Christiansburg and Blacksburg, and Virginia Tech to maintain litter control efforts within the County.

Motor Pool

The Motor Pool provides a centralized pool of County owned vehicles for use by County divisions while conducting County business.

Solid Waste Collections

Solid Waste Collections provides 10 consolidated sites where residents may dispose of household trash, bulky items and recyclables.

Stormwater Management

This department implements and ensures regulation and permit compliance with the County’s Stormwater Management ordinance and the Municipal Separate Storm Sewer System (MS4) permits. Stormwater regulations protect water quality from harmful pollutants that can accumulate when rain and snowmelt flow over impervious surfaces (streets, parking areas, buildings, etc.). When heavy or prolonged rains saturate the ground surface, runoff is channeled into storm sewers that ultimately end up in streams, creeks, rivers and the ocean. This department also administers policies, procedures and respective fee schedules related to stormwater compliance, and reviews erosion and sediment control plans prior to issuing land disturbing permits, prepares reports for the Virginia Department of Environmental Quality, and responds to citizen concerns about stormwater drainage issues.

Thompson and Mid-County Landfills

The Thompson and Mid-County Landfills were closed in 1993 and 1997, respectively. State and federal laws and regulations required the County to perform groundwater monitoring and mitigation.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 24 and projected fee collections in FY 25 and FY 26, an additional $41,000 is added to the General Services Division’s base fee revenue for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $25,000 is Added for Utility Costs Associated with the County’s Purchase of Property – $25,000 in additional funding is added in FY 26 based on the County’s purchase of the property at 305 Roanoke Street. The electrical power, water, gas and sanitary sewer must be paid and remain on for service to the building.

• $45,000 is Added for Maintenance and Utility Costs Associated with the County’s New Court Services and Magistrate’s Building – $45,000 in additional funding is added in FY 26 to provide maintenance, electrical, gas, and connections for the new Court Services & Magistrate Building.

• $60,000 is Added for Tipping Fee Costs – $60,000 in additional funding is added in FY 26 to cover tipping fee costs. Based on actual usage in FY 25 and anticipated fee increases by the Montgomery Regional Solid Waste Authority (MRSWA) in FY 26, $60,000 in additional funding is necessary to cover tipping fee costs.

• $22,030 is Added to the County’s Vehicle Replacement Budget – $22,030 in additional funding is added in FY 26 to General Services’ vehicle replacement budget. Traditionally, the County’s vehicle

replacement budget provides for the replacement of 3 vehicles annually. Due to rising costs of vehicles, the County’s base budget only allows for the replacement of 2 vehicles annually. In order to maintain the County’s fleet and the replacement of 3 vehicles annually, $22,030 is added for FY 26.

• $81,165 is Added for a Building Inspector (One FTE) – $81,165 and one FTE are added to the General Services Division. As the County continues to grow, additional help is needed in the Building Inspections office. The County currently employees the help of a part-time inspector and plan reviewer to alleviate workload issues. The new inspector will replace this part-time position and will perform building, electrical, mechanical, plumbing inspections primarily in the large subdivisions to alleviate workload issues and better serve the community.

• $63,427 is Added for a Groundskeeper (One FTE) – $63,427 and one FTE are added to the General Services Division. With the addition of new county facilities like Creeds Field and Auburn Park, there has been a 30% increase in the amount of acreage that needs to be mowed and maintained annually, from 133 acres to 173 acres. This increase requires additional grounds maintenance staff. The addition of one Groundskeeper position will allow the division to better maintain facilities and more appropriately divide work between staff.

• $63,427 is Added for a Housekeeper (One FTE) – $63,427 and one FTE are added to the General Services Division. The addition of new county facilities, such as the Office of Elections and Magistrate and Court Services building, has created a demand for an additional housekeeper position. The addition of one new Housekeeper position will allow the division to better maintain facilities and more appropriately divide work between staff.

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for Health and Welfare

Health and Welfare consists of the following divisions: Children’s Services Act; Human Services; Public Health; and Social Services.

Below is a summary chart of each division and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts for each division are provided.

MONTGOMERY COUNTY, VIRGINIA

Children’s Services Act

Board of Supervisors

County Administrator VOTERS

Assistant County Administrator

Human Services

Children’s Services Act

Budget Summary

About

The Children’s Services Act for At-Risk Youth and Families (CSA) was established by the General Assembly to improve coordination, eliminate duplication of services and ensure that costly residential care is provided only in cases where it was clearly warranted. The law requires localities to establish Community Policy and Management teams, and Family Assessment and Planning teams to administer the program. The law also mandates that certain groups of children receive services, primarily special education and foster care. The County is required to provide a local match for all expenditures.

Children’s Services Act

The Community Policy and Management Team (CPMT) is responsible for developing policies, managing funds allocated to the County, and authorizing expenditures of these funds. CPMT is comprised of at least one elected or appointed official and agency heads from the local Department of Social Services, school system, Community Services Board (mental health) and the Court Services Unit (juvenile justice), a parent and a private provider. Each CPMT must also establish and appoint at least one Family Assessment and Planning Team (FAPT) to work with families to develop an individualized family service plan or plan of care based on the strengths and needs of the family.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Revenue and Expenditure Adjustments –The base budget for CSA revenues and CSA expenditures have been adjusted to reflect changes in the state approved funding for FY 25. The total reconciled budget for FY 25 was $2,104,396. This reconciliation adds $452,427 to CSA expenditures and $345,226 to CSA designated revenues. The local match rate is 28.34%.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Human Services

HUMAN SERVICES

Budget Summary

HUMAN SERVICES

About

The Human Services division administers Human Services, Volunteer Montgomery, and the Children’s Services Act (CSA). Additionally, Human Services serves as the fiscal agent for the Virginia Juvenile Community Crime Control Act (VJCCCA).

Human Services

The Human Services department keeps citizens, agencies and County government informed about services and programs in the areas of human service delivery. They also act as a County liaison for specialty dockets within Montgomery County and serve as the fiscal agent for the VJCCCA programs.

Volunteer Montgomery

Volunteer Montgomery was established in April 2023 in the spirit of flourishing volunteer programs dating back to 1969. Volunteer Montgomery welcomes all individuals within Montgomery County and aims to broaden local volunteer efforts and strengthen the community by uniting together.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase

in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

New River Health District

VOTERS

Governor

Secretary

State Department of Health

New River Health District

NEW RIVER HEALTH DISTRICT

Budget Summary

About

The New River Health District, one of the Virginia Department of Health’s (VDH) 35 health districts, is comprised of Floyd, Giles, Montgomery and Pulaski counties and the City of Radford. The district’s environmental health program provides site evaluation and permits for on-site sewage disposal (septic systems) and wells, inspection of restaurants, schools, day care centers, summer camps and festivals to ensure food safety, rabies investigation and follow-up, and general environmental complaint investigations.

New River Health District

The Health District provides services in local health department clinics, schools, homes and at other sites in the community to prevent and control the spread of contagious diseases, including child and adult immunizations, immunizations for overseas travel, well baby care, and family planning. Other services include provision of the Women, Infants and Children (WIC) program, distribution of free car safety seats to eligible families, Resource Mothers Program and health education services.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $22,950 is Added for Local Matching Requirements – $22,950 in additional funding is added in FY 26 for the New River Health District local matching requirements. The New River Health District is funded on a formula basis with costs shared between the state and the County. The County’s share is 30.69 % and the state’s share is 69.31%. This increase in funding is required to meet the County’s local commitment for FY 26.

MONTGOMERY COUNTY, VIRGINIA

Social Services

VOTERS

Board

Social

Social

SOCIAL SERVICES

Budget Summary

SOCIAL SERVICES

About

The Department of Social Services (DSS) division assists families and individuals in becoming socially and economically self-sufficient and independent. Benefit programs include temporary assistance for needy families, food assistance, Medicaid, energy assistance, general relief, fraud prevention and children’s medical security insurance. DSS works closely with other community agencies to promote the stability and self-sufficiency of community families through referrals to services not available in this agency. It also promotes the creation of services not currently available in the community. The agency works to avoid duplication of services provided by other agencies and to respond to needs not currently addressed in the community.

Social Services

Social Services assists in work programs including adoption, adult services/adult protective services, child protective services, day care services for children, foster care, court services and employment services. The department focuses, in the least intrusive manner, on services that individuals and families cannot provide for themselves.

Key Performance Indicators

Personnel

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Revenue and Expenditure Reconciliation Adjustments – The base budget revenue and expenditure accounts have been reconciled to state and federal approved funding for FY 25. Each year,

following the confirmation of funding available from sources other than the County, the base budget for the Department of Social Services is adjusted within the fiscal year, and this adjustment becomes the base budget for the next fiscal year. The FY 25 reconciled County Budget for this Division totaled $7,812,624; $6,404,578 in state and federal dollars and $1,408,046 in County dollars. Based on the reconciliation for FY 25, a total of $197,880 is added to the base revenue budget for FY 26 and $11,083 is added to base expenditures due to an increase in purchase of services/public assistance costs for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for Parks, Recreation, Cultural

Parks, Recreation, Cultural consists of the following divisions: Parks and Recreation and the Regional Library.

Below is a summary chart of each division and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts for each division are provided.

MONTGOMERY COUNTY, VIRGINIA

Parks and Recreation

Administration

Aquatics

Athletics

Board of Supervisors

County Administrator VOTERS

Deputy County Administrator

Parks and Recreation

Community Recreation Programs

Outdoor Recreation

Parks and Playgrounds

Senior Tours and Recreation Programs

Special Programs

Summer Programs

Budget Summary

PARKS AND RECREATION

About

The Parks and Recreation division provides quality, customer-valued recreation programs and facilities that engage participants and add value to the quality of life. Programming and facilities are offered in aquatics; athletics and team sports; youth, adult and senior wellness and education; outdoor recreation; tours; special events; and summer programs.

Administration

Administration oversees the operation of all recreational programs and park facilities. Responsibilities also include the division’s budget management, marketing, facility design, and planning for future recreational needs.

Aquatics

The Frog Pond offers a safe and fun environment for the whole family. The pool has 3 tube slides, a frog slide, tot/ infant pool and lots of deck space for enjoying the sun and relaxing. Swim lessons are also offered for children 6 months to 10 years of age.

Athletics

The Athletics department focuses on children ranging from pre-K to middle school and the approach that recreational sports should place more emphasis on educational and social benefits rather than competition. A strong focus is also placed on good sportsmanship from participants, parents and spectators. Each program is built around teaching the fundamentals and ensuring that every participant receives an enjoyable and lasting recreation experience in a safe and positive environment.

Community Recreation Programs

This department offers a diverse range of community activities including; crafts, babysitting classes, boaters’ safety, CPR and first aid, hunters’ education, lifeguard classes.

Outdoor Recreation

This department provides diverse programming based on adventure, conservation, environmental education, and experiential education with a focus on high adventure. Montgomery County was one of the first municipal departments to offer outdoor recreation programs in Southwest Virginia.

Parks and Playgrounds

Montgomery County has 8 parks ranging from small pocket parks to linear biking and hiking trails to its largest 110-acre Mid-County Park. Swimming, picnicking, hiking, canoeing, kayaking, athletic ball fields, playgrounds, walking tracks, and natural areas are all amenities that can be found at the parks. Private pool and shelter rentals are also available.

Senior Tours

The trips and tours program offers active adults (50+) opportunities to explore local and regional destinations, experience cultural and recreational activities, and connect with others in a fun and engaging environment. These one-day excursions are planned to nearby cities, museums, sporting events, festivals, professional theater, and dining destinations, providing diverse opportunities for adventure and enjoyment.

Senior Recreation Program

The wellness and education programs promote lifelong learning and healthy living through a variety of activities, workshops, and classes. The program provides educational sessions, games, crafts, outdoor recreation opportunities, and wellness initiatives while partnering with community organizations to address the social and mental aspects of health. These programs are tailored to enrich the lives of active adults.

Special Programs

Throughout the year this department holds special programming to include: Great Road Encampment, Halloween at the Government Center, Kids Fishing Day, Letters to Santa, and Rowdy Dog.

Summer Programs

Frog Hoppers Camp is the most popular program providing a safe and fun environment. Children from rising 1st graders to 6th graders will enjoy their days crafting, swimming at the Frog Pond, going on hikes and playing outside.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• Base Fee Revenue Budget Adjustments – Based on actual fee collections in FY 24 and projected fee collections in FY 25 and FY 26, an additional $20,000 is added to the Parks and Recreation Division’s base fee revenue for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $132,070 is Added for Two Maintenance Workers (Two FTE) – $132,070 and two FTE are added to the Parks and Recreation Division. With the addition of Teel Park, there is a need for two additional maintenance workers for field maintenance.

MONTGOMERY COUNTY, VIRGINIA

Regional Library System

Board of Supervisors

Board VOTERS

Library

Regional Library System

Budget Summary

About

The Montgomery-Floyd Regional Library System has branch libraries in Blacksburg, Christiansburg, Shawsville and Floyd. The library also operates a Mobile Unit that brings library services and materials to apartment and mobile home communities, geographically remote areas, and institutional settings.

Reading and other materials are offered in a variety of formats, including eBooks, downloadable and streaming audiobooks, e-magazines, music, and movies. The library also loans non-traditional items including wireless hotspots, Adventure Kits, Memory Kits, and more. Public computers, wireless access, databases and office and entertainment software are available in each library. All branches offer programming to engage all ages, including children’s story times, STEM, and art activities, as well as a wide range of programs and events for teens and adults. All branches offer frequent programming for persons with intellectual, cognitive, and developmental disabilities. The Library also offers notary services and is a passport acceptance agency. The Christiansburg and Floyd libraries maintain special sections for genealogy and local history. Meadowbrook and Floyd libraries host free fridges to address community food insecurity.

Regional Library System

Staff members of the regional system are trained to help citizens find information and resources, educate citizens on how to conduct research, use personal and library technology, and make effective use of the library’s physical and electronic resources. Library services include assistance with early literacy, job searching and resume building, computer classes, summer reading programs for all ages, special events, book discussion groups, story times, and other programming for all ages and abilities. Public meeting rooms in each library branch are available to individuals and groups to use on a first-come basis.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

• State Aid Base Revenue Adjustments – A total of $33,394 is added to the Library’s base state aid revenue budget for FY 26. These funds account for the adjustment of revenues as reported by the State and reconciled to the FY 25 County approved budget.

• Other Base Fee Revenue Adjustments – $19,221 has been added to the Library’s local base revenue budget. As part of the FY 25 budget reconciliation, Floyd County increased their commitment in support of the regional library from $83,888 to $103,109. These funds are used to support the salaries of the library’s regional support staff and have been added to the base budget for FY 26.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $66,035 is Added for a Library Associate Position (One FTE) – $66,035 and one FTE are added to the Library for FY 26. The position will provide a senior staff person to direct the work of part-time staff; to respond to building, personnel and safety/security emergencies; to be responsible for providing passport and notary services; to manage cash payments and ensure accounting procedures are followed; and to provide insight and leadership to the Branch Manager and Assistant Branch Manager. Creation of a Library Associate full time position at Christiansburg will equalize the leadership staff at Christiansburg Library with Blacksburg Library.

• $23,264 is Added for a One Part-time Library Associate Position (Non-Classified Position) –$23,264 in part-time non-classified monies are added to the Library for FY 26. These funds will be used to assist in the operations of the fifth branch; the Mobile Services Unit (MSU). Since its first day in service on June 22, 2021, the MSU has been popular with community members, partnering agencies, and library staff. The Mobile Library has had over 5,000 visitors to our regular stops and over 8,000 visitors to various outreaches and popup libraries.

• $10,770 is Added to Reclassify One Full-time Position – $10,770 in additional funding is added in FY 26 to the Library to reclassify one Library Systems Administrator position from a Grade 22 to a Grade 24. The position has been assigned more responsibilities and tasks with no change in position classification. The reclassification will better align classification and compensation with staff roles and responsibilities.

• $3,177 is Added to Reclassify One Full-time Position – $3,177 in additional funding is added in FY 26 to the Library to reclassify one Technology Support Specialist I to a Technology Support Specialist II. The position has been assigned more responsibilities and tasks with no change in position classification. The reclassification will better align classification and compensation with staff roles and responsibilities.

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for Community Development

Community Development consists of the following divisions: Planning and GIS; and Economic Development.

Below is a summary chart of each division and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts for each division are provided.

MONTGOMERY COUNTY, VIRGINIA

Planning and GIS Services

Board of Supervisors

County Administrator VOTERS

Deputy County Administrator

Planning and GIS Services

Planning GIS

Budget Summary

About

Planning and Geographic Information System (GIS) administers the comprehensive land use plan, zoning and subdivision ordinances, provides geographical information and mapping services and maintains official street names and addresses in the unincorporated areas of Montgomery County. Floodplain management, site plan administration and 911 addressing are also administered in this division.

Planning

The Planning department works with the Planning Commission to develop and implement the Comprehensive Plan and related small-area village plans for the six village areas; administers zoning and subdivision ordinances; prepares long and short range planning information and studies; prepares grants for hazard mitigation, enhancement, community development and other programs; implements ongoing planning education and information programs; and supports other departments in planning, land use development and zoning. The staff serves as the primary support to the Planning Commission, Board of Zoning Appeals, and Agricultural and Forrestal District Advisory Committee.

Geographic Information System (GIS)

This department administers the Geographic Information System (GIS) and iGIS map portal. Their mission is to coordinate, manage, and facilitate GIS at departmental, office and enterprise levels. Work includes creation and management of E911 site addresses and street names. Additionally, GIS is the primary custodian for GIS data, aerial imagery and LiDAR topography contours. This department also fulfills public requests for GIS data, mapping and imagery services.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Economic Development

Board of Supervisors

County Administrator VOTERS

Economic Development

Budget Summary

Economic Development Commission and the Montgomery Blacksburg Christiansburg (MBC) Development Corporation to attract new investments and support the success of existing businesses.

Economic Development

The department carries out the Board of Supervisors’ Strategic Plan, which outlines: retention and expansion of existing business and industry, recruitment of new industry, market research, workforce development, and product (sites and buildings) development. Since 2009, 3,751 new jobs have been added from both new and existing businesses, resulting in more than $301 million in total investment in Montgomery County.

Key Performance Indicators

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• Base Salary and Fringe Benefit Adjustments – For FY 26, the County budget includes a 16% increase in workers’ compensation premiums and a decrease in the group life insurance rate from 1.34% to 1.18%. All other fringe benefits rates remain unchanged.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for Other Agencies

Other Agencies consists of the following types of agencies: Human Service; Public Safety; Educational/Cultural; Environmental; and Economic Development.

Below is a summary chart of each area and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts for each area are provided.

MONTGOMERY COUNTY, VIRGINIA

Other Agencies

VOTERS

Board of Supervisors

Other Agencies

OTHER AGENCIES

Budget Summary

BY AGENCIES

REVENUE BY CLASSIFICATION

OTHER AGENCIES

About

This Division consists of all outside/other agencies that are funded by County General Fund dollars. Agencies that receive funding are divided among five categories: Human Service Agencies, Public Safety Agencies, Education/ Cultural Agencies, Environmental Agencies, and Economic Development Agencies.

Human Service Agencies

• $323,806 is included for the New River Valley Juvenile Detention Home (mandated), which is level funding – The NRVDH’s request for FY 26 is $208,552, which is a decrease of $115,254 from the FY 25 budget. In the FY 10 request, the formula for determining operating contributions was changed to allocate costs among participant jurisdictions on the basis of days used, averaged over a three-year period. Under the revised formula, Montgomery County’s billed usage for the facility for FY 26 is $208,552 or 39.42% of the total funding. The facility is over 30 years old and requires upgrades, maintenance, and newer equipment for licensure compliance. Due to the need to address these capital issues, the County is providing $208,552 for operations based on a three-year average usage and is setting aside $115,254 in a special reserve to address future facility upgrades. By the end of FY 26, $1,111,813 will have accumulated in the reserve.

• $30,994 is included for the Community Health Center of the New River Valley (Free Clinic) (not mandated), which is level funding – The agency requested $30,994 in the FY 26 budget, which is level funding. The center provides medical and dental care as well as pharmaceuticals to uninsured citizens of the New River Valley who live below the Federal Poverty Guidelines. Historical funding and the percentage of clients served by locality are presented in the chart below. For FY 26, the County is providing level funding of $30,994. With level funding, the County is providing 58% of the funding with only 42% of the clients served. The County also provides the building at 215 Roanoke Street which was renovated for the center. Assuming the center had to rent space equivalent to the building provided by the County, the rental costs would likely exceed $64,352 (8,044 square feet X $8.00).

Community Health Center of the NRV

OTHER AGENCIES

• $50,625 is included for New River Community Action (not mandated) and $30,471 is included for the Montgomery County Emergency Assistance Program (not mandated), which is level funding – The New River Community Action (NRCA) agency requests $53,156 for FY 26, which is an increase of $2,531. The agency serves low-income residents of Montgomery, Pulaski, Floyd, and Giles Counties and the City of Radford. The agency’s goal is eliminating poverty. The County funds also support a Community Service Worker position in NRCA that administers the Montgomery County Emergency Assistance Program (MCEAP). MCEAP partners with NRCA to provide emergency assistance to County residents only. MCEAP requests $31,995 for FY 26, which represents an increase of $1,524. In FY 25 MCEAP received $30,471. For FY 26, the County is providing funding of $81,096 for both programs. With level funding, the County is providing 39% of the funding with 31% of the clients served

New River Community Action & MCEAP: Locality Funding & Clients Served

• $38,183 is included for the Women’s Resource Center of the NRV (not mandated), which is level funding – The agency received $38,183 in the FY 25 budget, and requested $40,092 for FY 26, an increase of $1,909. Historical funding and the percentage of clients served by locality are presented below. With a budget of $38,183, the County is providing 41% of funding with 39% of clients served. The Women’s Resource Center provides services to adult and child citizens who have experienced domestic and/ or sexual violence. The agency provides emergency advocacy, a live crisis hotline, an emergency and transitional shelter, emergency food and supplies, crisis counseling, legal advocacy and other services.

Women's Resource Center

• $5,051 is included for the New River Family Shelter (not mandated), which is level funding – The agency requested $5,051 in the FY 26 budget, which represents level funding. The shelter is able to provide shelter services, through its facilities or in hotel rooms, to 30% of those seeking shelter. Others seeking shelter can receive either out-of-town shelter services or bus tickets to other lodging arrangements. Last year approximately 88% of clients residing in established

into

OTHER AGENCIES

permanent housing upon leaving the shelter. The shelter has the potential to serve all localities in the New River Valley. Other New River Valley localities have not historically been asked to fund the shelter due to the negligible number of clients outside of Montgomery County.

• $7,484 is included for the Literacy NRV (formerly Literacy Volunteers of the NRV) (not mandated), which is an increase of $680 – The agency requested $7,484 in the FY 26 budget, which represents an increase of $680. With funding of $7,484, Montgomery County, without the funding from the two towns, will be providing 56.24% of the funding with 57.89% of the clients served. Literacy NRV provides free instruction for adults in reading, writing, basic Math, GED preparation, ESOL and basic computer skills.

Literacy NRV

Literacy NRV

• $305,720 is included for the New River Valley Community Services (mandated), which is an increase of $27,793 – The agency requested $562,487 in the FY 26 budget, which represents an increase of $284,560. New River Valley Community Services offers community-based programs for both children and adults who are living with mental illness, developmental disabilities and/or substance abuse. Based on §37.2-509 of the Code of Virginia and State Board Policy 4010, all Community Services Boards (CSBs) in Virginia are required to request local funding to achieve a 10% local match. The 10% local match for Montgomery County is $562,487. An additional $27,793 is added to work toward a 10% local match. The following tables outline the clients served by jurisdiction and the funding by locality since FY 24.

OTHER AGENCIES

Community Services Board - Local Funding

Community Services Board - Clients Served

• $16,652 is included for the NRV Agency on Aging (not mandated) for agency programs and $14,000 is included for one weekly congregate meal, which is level funding – The agency requested $20,240 for agency programs, and $14,000 to continue an additional congregate meal per week for residents of Montgomery County. The primary purpose of the agency is to provide services, information, and advocacy to older citizens and citizens with disabilities and their caregivers in order to assist them to remain safely with as much independence as possible in their homes and communities. In FY 04, the Board of Supervisors agreed to provide 100% of local funds to cover one meal weekly, which would ensure Montgomery County residents would receive three congregate meals per week. The agency requests a total of $34,240 which represents an increase of $3,588. With level funding, the County is providing 28% of the funding with 23% of the clients served in the New River Valley.

New River Valley Agency on Aging - Locality Funding

OTHER AGENCIES

New River Valley Agency on Aging - Clients Served

• $15,602 is included for the New River Valley Senior Services, Inc. (not mandated), which is an increase of $4,556 – The agency requested $20,000, which represents an increase of $8,954. The agency received $11,046 in FY 25. The agency provides transportation services for non-emergencies for sensory and physically disabled persons. With $15,602 in funding, the County will be providing 34% of the funding with 34% of clients served.

New River Valley Senior Services

• $4,000 is included for Brain Injury Solutions (previously Brian Injury Services of Southwest Virginia) (not mandated), which is level funding – The agency received $4,000 in FY 25 and requested $4,000 for FY 26, which is level funding. Brain Injury Solutions provides case management services for citizens who have suffered brain injuries. New

• $15,000 is included for the Boys and Girls Clubs of SWVA (not mandated), which is level funding –The agency received $15,000 in FY 25 and requested $15,000 for FY 26. The County provided an additional $5,000 in FY 22 to cover the increased costs of the programs at the four sites at Eastern Montgomery High School, Christiansburg Middle School, Shawsville Middle School, and Eastern Montgomery Elementary School. The program focuses on academic success, healthy lifestyles, and character development.

OTHER AGENCIES

Brain Injury Solutions - Locality Funding

Brain Injury Clients Served

• $3,500 is included for NRV CARES (not mandated), which is level funding – The agency received $3,500 in the FY 25 budget and requested $3,675 for FY 26, which represents an increase of $175. NRV CARES is a nonprofit organization dedicated to protecting children and strengthening families through education, advocacy and community partnerships. All programs are aimed at preventing or interrupting the cycle of child abuse. Services are provided for residents in the counties of Montgomery, Pulaski, Floyd, Giles, and the City of Radford. With level funding, the County is providing 49.4% of the funding with 49.0% of the clients served in the New River Valley.

NRV CARES - Locality Funding

NRV CARES - Clients Served

• $70,162 is included for the Fairview District Home (mandated), which is an increase of $6,300 – The agency requested $70,162 for FY 26, which is an increase of $6,300. The Fairview District Home is a 64-bed assisted living facility which provides room and board, medication administration, personal care, shopping, daily living skills, community socialization, and financial management for its residents. Locality funding provided to the home is for general operations and capital maintenance of the facility. See following charts:

OTHER AGENCIES

Fairview District Home - Capital Expense

Fairview District Home - Total Expenses

• $7,500 is included for the Children’s Trust (not mandated) to support the Children’s Advocacy Center of the New River Valley, which is a decrease of $1,500 – The agency received $9,000 in the FY 25 budget and requested $7,500 for FY 26. The Child Advocacy Center of the New River Valley is a program offered by the Children’s Trust that brings law enforcement professionals, child protective services investigators, prosecutors, medical and mental health personnel, and child advocates together to ensure that children are provided with the best possible services in order to discuss and heal from alleged abuse. The Children’s Advocacy Center of the New River Valley provides space for trained forensic interviewers to interview abused children in a non-threatening environment. These funds will be used to support rent and utilities for space in Christiansburg for interviews of children throughout the New River Valley. The Children’s Trust requested a reduction in funding as the organization is seeking funds from other localities.

• $1,500 is included for The Community Group of Montgomery County (previously Dialogue on Race) (not mandated), which is level funding – In FY 17, the Board of Supervisors provided $1,500 to the Dialogue on Race and asked that this become an annual budgeted amount in support of the yearly forum to discuss issues articulated by the African American community and work toward solutions.

• $86,212 is included for the New River Home Trust (mandated), which is an increase of $4,412 – A total of $86,212 is included for the New River Home Trust. The New River Home Trust was formed in 2022 between the Town of Blacksburg and Montgomery County to provide affordable housing for low-income and moderate-income residents, and promote resident ownership of housing. The Town of Blacksburg and Montgomery County entered into an agreement to equally share the cost associated with operating the New River Home Trust each year as determined by a

on the

OTHER AGENCIES

houses in the trust and includes a 4% annual cost of living adjustment. Montgomery County’s share of the operating costs for FY 26 under this formula is $86,212.

New River Home Trust - FY 26 Calculation

• $58,431 is included for the New River Valley Housing Trust Fund (NRV Regional Commission), which is an increase of $58,431 – The New River Valley Housing Trust Fund (HTF) is a locally controlled bank account for the creation and preservation of affordable housing across the region. Funds will be used to help address affordable housing issues in the communities in the New River Valley. The requested amount is based on a $1.75 per capita.

Public Safety Agencies

• $12,771 is included for State Forester (mandated), which level funding – The agency received $12,771 in the FY 25 budget and requested $12,771 for FY 26. Based on the invoice from the State Forester for FY 25, the amount needed to cover the fee for FY 26 is $12,771.

• $15,715 is included for the Western Virginia EMS Council, Inc. (not mandated), which is level funding – The agency received $15,715 in the FY 25 budget and requested level funding for FY 26. The mission of the council is to facilitate regional cooperation, planning, and the implementation of an integrated emergency medical services delivery system.

• $15,700 is included for the Montgomery County Public Service Authority (mandated), which is level funding – These funds are to be used to cover the PSA’s cost of maintaining fire hydrants in the County.

• $1,600 is included for the Medical Examiner (mandated), which is level funding –The agency received $1,600 in the FY 25 budget; therefore, this amount represents level funding. According to §32.1283 of the Code of Virginia, the medical examiner is paid $20 per case. This recommendation provides the fee for 80 cases. Through December 2024, $640 has been expended, representing 32 cases.

• $1,144,694 is included for the New River Valley Emergency Communications Regional Authority (mandated), which is an increase of $88,869 – The Authority received $1,055,825 in FY 25 and requested an increase of $88,869 from each participating jurisdiction. Centralized operations began on July 1, 2016. The mission of the New River Valley Emergency Communications Regional Authority is to

provide quality and reliable 911 dispatch and emergency communication services to the community. This increase will support the basic operations of the authority.

• $25,000 is included for the Drug Court (not mandated), which is level funding – In the FY 18 budget process, the Board of Supervisors agreed to support a new drug court in Montgomery County and fund up to $25,000 for housing costs for certain drug court clients.

Educational/Cultural Agencies

• $54,903 is included for New River Community College (mandated), which is an increase of $1,164 – The agency requested $54,903 in the FY 26 budget. The agency received $53,739 in the FY 25 budget. The County’s funding as well as funding from other local contributing localities is based on a weighted average, local participation formula adopted when the college was established. The formula is a function of three components including: population, true property value, and student enrollment with the greatest weight attributed to student enrollment. The following table illustrates the fund allocation from Montgomery County and surrounding areas. Funds are used for site development costs for capital projects which are not funded by the state. Earmarking these monies for the local share of capital projects will preclude the College from asking localities for additional funds to cover site development costs.

New River Community College

• $450,000 is Included for the Access to Community College Education (ACCE) Program (not mandated) Through New River Community College, which is level funding – The ACCE program is a public/private partnership to make college available to high school graduates. The locality designates a dollar amount that is matched by donations from local industries and private sponsors. $450,000 is included for FY 26 to support this program. Since the program’s inception, excess funds have remained at year-end after fully funding all participating County graduates. All funds not used annually will be held in a special reserve fund to address any unanticipated increases in future student enrollment.

• $5,000 is included for The Lyric Council, Inc. (not mandated), which is level funding – The agency received $5,000 in the FY 25 budget and requested $6,500 for FY 26. The mission of the Lyric Council is to enhance community participation in the arts and culture by maintaining and preserving the historic Lyric Theatre building while sustaining state-of-the-art technology and infrastructure, providing a

of arts programming to the community, establishing and promoting The Lyric Theatre as a regional arts destination, and partnering with other community organizations. This funding equals the amount provided to the Historic Smithfield and the Montgomery Museum of Art and History.

OTHER AGENCIES

• $5,000 is included for the Montgomery Museum of Art and History (not mandated), which is level funding – The agency received $5,000 in the FY 25 budget and requested level funding for FY 26. The mission of the museum is to connect and engage the community through arts and the preservation and interpretation of history. This funding recommendation equals the amount provided to the Historic Smithfield and the Lyric Council.

• $5,000 is included for the Historic Smithfield (not mandated), which is level funding – The agency requested $10,000 for the FY 26 budget, which is an increase of $5,000. Funds support instructor fees and supply costs of onsite classes. The Historic Smithfield exists to collect, preserve, and interpret historic resources pertinent to the Preston Family and Southwest Virginia. This level funding recommendation equals the amount provided to the Montgomery Museum of Art and History and the Lyric Council.

• $5,000 is included for the Rosa Peters Community Park (not mandated), which is level funding – The agency received $5,000 in the FY 25 budget and requested $8,000 for FY 26. Playground facilities, basketball courts, and a swimming pool allow children and adults the opportunity for community recreation. The park also has a pavilion available for community use upon request. The funds will help maintain two positions, a lifeguard and playground supervisor, as well as offset operational and maintenance costs.

• $10,000 is included for the Christiansburg Institute (not mandated), which is level funding – The agency received $10,000 in FY 25 and requested $15,000 for FY 26. Level funding is provided for FY 26. The mission of the Institute is to preserve its remaining facilities and archives, which for 100 years was the high school for African American students in the New River Valley.

• $5,000 is Included for Eastmont Community Foundation (previously Mountain Valley Charitable Foundation) (not mandated), which is level funding – $5,000 is included for FY 26 to cover the cost for Eastmont Community Foundation to mow the Shawsville Middle School athletic fields.

• $30,000 is included for the Mountain View Humane Spay and Neuter Clinic (not mandated), which is level funding – The agency received $30,000 in FY 25 and requested $35,000 for FY 26. Level funding is provided for FY 26. The agency offers a low-cost, high-quality option for spay/neuter of dogs and cats. Based on the success of the pilot program to subsidize the cost of the surgery for cats (nearly 23% are feral cats), funds are provided to continue this program, reducing the cost of surgeries for County residents and addressing overpopulation of feral cats.

• $300 is included for the League of Women Voters (not mandated), which is an increase of $300 –The agency requested $300 in FY 26, which is an increase of $300. The League of Women Voters publishes a voter guide each year. Historically, the County has provided $300 annually.

Environmental Agencies

• $44,044 is included for the New River Valley Regional Commission (mandated), which is a decrease of $29 – The agency requested $44,044 for FY 26 and received $44,073 in the FY 25 budget. The NRVRC serves as a planning and coordinating body for the localities of Planning District Four. Its mission is to identify and analyze regional issues and facilitate decision-making to resolve those issues, to serve as an information resource through the regional database, and to develop local and regional plans or strategies that will strengthen local governments’ ability to serve their citizens. The requested amount

is based on $1.32 per capita as approved by the commission. A decrease was requested based on the Weldon Cooper Center 2023 population estimates.

• $13,000 is included for the Skyline Soil and Water Conservation District (not mandated), which is level funding – A total of $15,000 was requested by the Skyline Soil and Water Conservation District for FY 26, which is an increase of $2,000. Many of the services provided by the District are to landowners and other consumers regarding general soil quality and management information and referral. The agency promotes conservation techniques and better water quality by offering an annual Grazing School throughout the New River Valley, which includes classes on plant science and grazing techniques for livestock.

• $3,000 is included for the New River-Highland Resource Conservation and Development Council (not mandated), which is level funding – A total of $3,000 was requested by the New River-Highland Resource Conservation and Development Council for FY 26. The Council received $3,000 in FY 25. The Council provides regional education, training, and technical assistance on conservation and sustained use of natural resources. The agency receives additional funding from 14 other cities and counties as well as 9 planning and conservation districts. Funding from each jurisdiction is based on a set rate across the board and not based on population.

• $123,174 is included for the Virginia Cooperative Extension Services (mandated), which is an increase of $3,914 – A total of $123,174 was requested by the Virginia Cooperative Extension Services for FY 26 and represents an increase of $3,914. $119,260 was included in the FY 25 budget. Each year, the County reconciles the Cooperative Extension budget to the required state match. Cooperative Extension provides research-based information to residents in the areas of Agriculture, Horticulture, Human and Family Resources and Youth Development. The County fully funds one full-time agricultural agent housed in the County, one full-time 4-H agent, 40% of funding for a part-time Master Gardner with Floyd, Pulaski, and Giles Counties each paying 20% of the cost, 50% funding for a Family and Consumer Science Agent, and 100% of a part-time 4-H technician position.

Economic Development Agencies

• $1,900 is included for the Montgomery County Chamber of Commerce (not mandated), which is an increase of $100 – A total of $1,900 is included for dues payable to the Montgomery County Chamber of Commerce for FY 26. The Chamber received $1,800 in FY 25 and requested an increase of $100 for FY 26. The Chamber works to promote tourism and economic development to prospective newcomers.

• $19,678 is included for the New River Valley Airport Commission (mandated), which is level funding – A total of $19,678 was requested by the New River Valley Airport Commission for FY 26, which is level funding. The agency received $19,678 in the FY 25 budget. The New River Airport Commission owns and maintains the New River Valley Airport. Funding requested is determined using a formula which is a function of jurisdictions’ populations, distance from the airport, and business activity generated at the Airport by industries in respective jurisdictions.

• $2,500 is included for the NRV Rail 2020 Initiative (not mandated), which is level funding – A total of $2,500 is included for Rail 2020 initiative. Initiated in 2013 by The Blacksburg Partnership, New River Valley Rail 2020 (NRV 2020) is a broad-based community initiative to bring Amtrak passenger rail service to Virginia’s New River Valley. The NRV Rail requested $2,500 for FY 26, which is level funding from the FY 25 approved budget.

• $87,250 is included for the New River Valley Passenger Rail Station Authority (mandated), which is an increase of $78,750 – A total of $87,250 is included for the New River Valley Passenger Rail Station Authority. The New River Valley Passenger Rail Station Authority was established in 2022 through State legislation to develop and operate a passenger rail station in Montgomery County. Once completed, the passenger rail station will serve Amtrak users in a northeast corridor of the United States that will extend from Boston, MA to Christiansburg, VA. Service to the facility is scheduled for 2028. The New River Valley Passenger Rail Station requested $87,250 for FY 26, an increase of $78,750. $8,500 is provided for administrative expenses and $78,750 is the local match required for a $2 million federal grant that will be used for station facility construction improvements.

• $1,500 is included for Membership in the Virginia Institute on Local Government (not mandated), which is level funding – A total of $1,500 was requested by the Virginia Institute on Local Government for FY 26, which is level funding. The Institute, located at the University of Virginia, provides direct technical assistance and conducts specialized research projects, training, and leadership programs. Staff responds to inquiries on a wide variety of local government topics and provides in-depth research on inquiries with broad multi-jurisdictional applications. Information technology support services are also available. This recommendation provides funds necessary for membership in the Institute. Benefits of membership include priority access to Institute resources and discounts on publications and training opportunities. Membership dues will remain unchanged for FY 26.

• $107,164 is included for Onward NRV (not mandated), which is level funding – A total of $107,164 was requested by Onward NRV for FY 26, which is level funding. Onward NRV’s mission is to attract and retain world-class jobs, investment, and talent in Virginia’s New River Valley. Onward NRV has a funding formula of $1.05 per capita for each member jurisdiction, which is the same rate used in FY 25. Blacksburg and Christiansburg Town residents and the students at Virginia Tech are included in the population figure used to derive the budget request for Montgomery County.

New River Valley Airport Commission

New River Valley Airport Commission - Clients Served

OTHER AGENCIES

Assumes other jurisdictions fund requests

• $21,720 is included for the Metropolitan Planning Organization (MPO) (mandated), which is an increase of $220 – A total of $21,720 was requested and is included for the MPO for FY 26, which includes $8,520 for the MPO and $13,200 for the Smart Way Bus. The Blacksburg, Christiansburg, Montgomery Area Metropolitan Planning Organization was established by the Board of Supervisors on January 13, 2003 to evaluate regional transportation needs and any requirements of the Clean Air Act. To receive funds from the Federal Government, a local match is required. The local match for FY 26 is $8,520 that is dedicated to MPO Planning and $13,200 that is dedicated to the Smart Way Bus.

• $201 is included for the Roanoke Valley Transportation Planning Organization (mandated), which is level funding – A total of $201 is included for dues payable to the Roanoke Valley Transportation Planning Organization (RVTPO). The agency requested $201 for FY 26, which is level funding. The organization is responsible for planning and budgeting the use of Federal transportation dollars in the Roanoke region. Dues are calculated on a $0.15 per capita basis. The RVTPO organization charges based on the 2040 TPO Study Area Boundary and 2020 Census Data which has 1,338 residents.

• $60,000 is included for Participation in the Virginia Tech/Montgomery Regional Airport Authority (mandated), which is level funding – A total of $60,000 was requested by the Virginia Tech/ Montgomery Regional Airport Authority for FY 26. The agency received $60,000 in the FY 25 budget. The Virginia General Assembly created the Authority in 2002. Member jurisdictions include Virginia Tech, the towns of Blacksburg and Christiansburg, and Montgomery County. The Authority was created to develop a regional authority that would serve surrounding corporate and general aviation markets. Each participating member is to contribute a portion of the subsidy for the airport’s operating budget.

• $108,739 is included for Tourism (mandated), which is an increase of $58,739 – The County’s

transient occupancy rate is 3%, which generates around $244K in revenue on an annual basis. The County pays approximately 1/3 of this or 1% of the 3% rate to the Tourism Department in accordance with the tourism agreement. 1/3 of the County’s transient occupancy tax is $80,520. An additional $28,219 has also been added to the tourism budget based on 2/1000 percent of the County’s annual sales tax collection.

• $60,851 is included for Membership dues in the Virginia’s First Regional Industrial Facility Authority (mandated) and Participation in the New River Valley Commerce Park Project (mandated), which is level funding – The County pays $5,000 in annual membership dues to the Authority. In FY 16, the Virginia’s First Regional Industrial Facility Authority restructured the NRV Commerce Park to place the management of the project under the direction of the Authority. The Commerce Park is a regional economic development project consisting of 973 acres located in Dublin that was established in October 1999. The County currently owns 20,309.06 shares or 11.47% of the project with an annual cost of $55,851. Funding for the County’s shares is mandated by the project agreement.

• $9,891 is Included for the New River/Mount Rogers Workforce Development Board (not mandated), which is an increase of $952 – A total of $9,891 was requested by the New River/ Mount Rogers Workforce Development Board for FY 26, which is an increase of $952. The agency received $8,939 in the FY 25 budget. The funding will be used for business service support and is requested based on $3.80 per payrolled private business in the County. In prior years, funding was based on $0.10 per capita. The New River/Mount Rogers Workforce Development Board’s mission is to facilitate and coordinate initiatives that deliver a workforce with the skills needed by businesses and provide jobs to workers that pay a sustainable wage.

MONTGOMERY COUNTY, VIRGINIA

Transfer to the School Operating Fund

County funding in the FY 26 budget for the School Operating Fund totals $64.3 million, which is an increase of $2.75 million from the FY 25 approved budget.

Transfer to the Debt Service Fund

Funds are transferred to the Debt Service fund to cover the cost of County and School debt service.

Transfer to the School Capital Fund

2.5 cents of the real estate tax rate are earmarked for the School Capital Fund.

Transfer to the Economic Development Authority (EDA)

Funds are transferred to the EDA for economic development incentives.

Transfer to the County Capital Fund

1.5 cents of the real estate tax rate are included for Fire and Rescue capital needs and 1 cent of the real estate tax rate is earmarked for future capital projects, which includes $100,000 for the Valley to Valley Trail project. In addition, $1,300,000 is transferred to address County capital maintenance needs (this is an increase of $550,000 and provides funding to meet an allocation of 1% of County asset replacement costs). Other monies include $425,000 for the Parks Revitalization project and $210,000 to address technology infrastructure issues.

MONTGOMERY COUNTY, VIRGINIA

Law Library

Budget Summary

About

The Law Library is self-supporting from fees assessed on civil and criminal trials.

Law Library

This division provides legal information resources for attorneys and the courts.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• No Notable Base Budget Adjustments

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Expenditure Summary for Education

Education consists of the following school funds: Operating Fund; Nutrition Fund; and Capital Construction.

Below is a summary chart of each fund and its total expenditure budget. On the following pages, detailed expenditures and revenue amounts for each fund are provided.

MONTGOMERY COUNTY, VIRGINIA

Montgomery County Public Schools

Board of Supervisors

School Board VOTERS

Public

Budget Summary

EXPENDITURES BY CLASSIFICATION

REVENUE BY CLASSIFICATION

About

Montgomery County Public Schools (MCPS) serves around 9,427 students through 11 elementary schools (grades K-5), four middle schools (grades 6-8), four high schools (grades 9-12), and central administrative offices. MCPS also provides one alternative education school. In addition to the regular education and special education programs, other programs include: Title I; elementary art, music, and physical education; elementary, middle, and high school guidance; comprehensive career and technical education; gifted education; programs for at risk students; and extensive extracurricular activities in athletics, fine arts, and academic competitions. The seven elected members of the School Board and the Superintendent of Schools provide leadership and management for the school division.

School Operating Fund

The School Operating Budget provides the funds as required to comply with the State Standards of Quality (SOQ) and to meet the Federal requirements under the No Child Left Behind (NCLB) legislation. The budget also incorporates local programs as requested by the community.

School Nutrition Fund

The School Nutrition program operates as a separate fund and is self-sustaining for the cost of labor, food supplies, expendable supplies, and equipment repair. Major capital expenditures, utilities, and liability insurance are provided through the school division’s operating budget. Revenues are received from the sale of breakfast, lunch, a la carte items, catering, and reimbursements from Federal nutrition programs.

Budget Discussion

• $151,690,507 is Provided for the School Operating Fund – $151,690,507 in total funding is provided for the School Operating Fund. This represents an increase of $7,840,595 over the FY 25 approved budget. Of this amount, $2,760,727 is from additional state funding provided in FY 25 that was received after the adoption of the FY 25 budget, $2,208,655 is from new state designated resources, $121,213 is from new federal designated resources and $2,750,000 is from new County dollars.

• $6,012,300 is Provided for the School Nutrition Fund – $6,012,300 in total funding is provided for the School Nutrition Fund, which is an increase of $335,178 from the FY 25 Budget.

MONTGOMERY COUNTY, VIRGINIA

Montgomery County Public Schools Capital

Board of Supervisors

School Board VOTERS

Public Schools

School Capital

Budget Summary

About

Montgomery County Public Schools Capital Fund dollars are earmarked to be used in the future for new school capital projects.

Schools Capital Fund

The School Capital Fund is used to fund future school capital projects.

Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• $3,112,150 is Provided for the School Capital Fund – $3,112,150 or 2.5 cents of the real estate tax rate has been earmarked for future school capital needs. These funds are held in a special Capital Fund account separate from the School Operating Fund. These funds may be used only with future Board of Supervisors approval.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

General Government Debt Services

GENERAL GOVERNMENT DEBT SERVICES

Budget Summary

BY CLASSIFICATION

About

The General Government Debt Service division includes principal, interest and administrative fees on long-term outstanding debt. Debt service accounts are required for the issuance of the bonds to fund new County buildings and schools, building improvements and renovations and other capital improvements.

County Debt Service

This includes principal, interest and administrative fees for all County long-term outstanding debt.

School Debt Service

School Debt Service includes principal, interest and administrative fees for all school long-term outstanding debt.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. Debt service has been funded from various sources: monies from the School Operating fund, courthouse maintenance fees, revenue from the New River Valley Emergency Communications Regional Authority lease, and the General Fund.

The debt service budget includes funds for principal, interest and debt administration costs, as well as, savings retained from decreases in prior year debt service. Retaining these one-time monies in the base budget sets them aside to accomplish two objectives:

• Fund future capital projects, and

• Provide capacity to offset future non-recurring peaks in debt service costs

Reallocation of Base Debt Service Resources – The base budget includes funds needed to cover the costs for both County and School debt. Generally, debt issuances are structured to balance total debt service costs from year to year; however, the individual components of debt service often change. In February 2022, the County issued bonds totaling $10 million for County capital projects and $91 million for School capital projects. Sufficient funds for the additional County debt service existed in the budget; however, additional funds were needed to fund the increased School debt service for seven years. In order to provide the necessary funds for the increased School Debt Service, the County transferred $3,048,900 from Undesignated General Fund Balance to the Debt Service Fund in FY 23. These funds will be used to shave a portion of the increased school debt services costs. For FY 26, $78,973 of funds from this transfer are added to the base budget. This is a reduction of ($419,075) from the one-time funding used in the FY 25 budget. In maintaining the County’s $5.1 million in debt service allocation, the School’s portion of the reserve fund has been eliminated leaving only the County’s reserve of $3,079,175. Other adjustments include realigning the base allocation for the correct debt service distribution, including an increase in principal payments of $75,000, and a decrease of ($566,999) in interest payments.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• No Addenda

MONTGOMERY COUNTY, VIRGINIA

Budget Summary

About

The County Capital division is used to fund the costs of future County capital project needs.

County Capital

Dollars earmarked in this division will be used in future years for County capital needs.

Base Budget Discussion

The base budget is the estimated minimum cost for providing continued services/operations for each division/ department. It is based on the prior year approved budget with adjustments. This budget shows how much it would cost in the next fiscal year to operate the same programs provided in the current fiscal year.

• $1,867,290 is Included for Fire and Rescue Capital – The base budget includes $1,867,290 or 1.5 pennies of the real estate tax rate for Fire and Rescue capital needs.

• $750,000 is Included for County Capital Maintenance Projects – $750,000 is included in the County Capital budget to provide an ongoing source of capital maintenance funding to cover the County’s existing buildings and infrastructure. The County’s Capital Maintenance program, funded in the Capital Fund Budget, is a proactive program of preventative maintenance designed to address major repairs and/ or replace large scale components that cannot be addressed within the County’s centralized maintenance program contained within the County’s operating budget. The purpose of this program is to invest in existing capital assets to maintain the County’s building and structures and to extend their useful life. Ongoing projects include roofing replacements, Heating Ventilation and Air Conditioning (HVAC) upgrades, carpeting, paving, and other major systems’ maintenance.

• $425,000 is Included for the Parks and Recreation Projects – $425,000 is included for Parks and Recreation capital projects and includes $35,000 that was previously set aside in FY 16. This funding is earmarked for the Parks Revitalization Capital Project.

• $210,000 is Included to Address Information Technology Infrastructure Improvements Within County Facilities –$210,000 has been set aside to address future information technology infrastructure needs.

• $1,244,860 is Included for County Capital Needs – $1,244,860 or 1 cent of the real estate tax rate has been earmarked for future County capital needs. Of this amount, $100,000 is earmarked for the Valley to Valley Trail project.

Addenda & Reductions Discussion

Addenda consist of dollars over and above the base budget target for operating and capital outlay expenses. Recommended addenda items are often funding provided for new initiatives or expanded services but may also include normal cost increases. Addenda reductions may reflect reduced revenue and/or expense needed to equalize revenue shortfalls.

• $550,000 is Added for County Capital Maintenance Projects – $550,000 is added in the County Capital budget to provide an ongoing source of capital maintenance funding to cover the County’s existing buildings and infrastructure. The County’s Capital Maintenance program, funded in the Capital Fund Budget, is a proactive program of preventative maintenance designed to address major repairs and/ or replace large scale components that cannot be addressed within the County’s centralized maintenance

program contained within the County’s operating budget. The base budget includes $750,000. This increase will bring the total allocation to $1,300,000. The industry standard allocation for annual capital maintenance expenditures is 1% of the replacement cost of assets. This addition will place the capital maintenance budget at approximately 1% of replacement cost of County assets.