Roanoke County proposes $260.5 million FY2025 budget with tax-rate cut and employee raises

County Administrator Richard Caywood presented Roanoke County's proposed fiscal 2025 operating budget and a 2025'through'1034 capital improvement program to the Board of Supervisors on March 26, outlining a $260.5 million spending plan and a recommendation to reduce the real-estate tax rate from $1.06 to $1.04.

Caywood said the proposal reflects months of collaboration with the board and staff, and that in recent budget cycles the county has returned substantial tax relief to residents. "When you add everything up over the last two budget cycles and the proposed, that's over 22,000,000 in total tax relief for our citizens," he said, describing earlier personal-property and rate reductions as part of that effort.

The proposal directs just over $100 million to the local public school system and prioritizes education, public safety and core services. "Of the dollars $260,000,000 in the proposed budget, just over 100,000,000 of that goes to our local public schools," Caywood said, adding that school transfers appear smaller as a percentage in an aggregated view that discounts pass-through and restricted revenues.

Key elements of the proposed budget include:
- A recommended real-estate tax-rate reduction from $1.06 to $1.04, which Caywood estimated would yield about $2.4 million in the coming year; combined with other changes, he described recent cycles as delivering significant tax relief.
- Pay adjustments for employees: a 1.75 percentage-point anchor shift for public-safety pay and a 3% raise proposed for other full-time employees; Caywood described these as needed to address salary compression and retention.
- Two health-plan options for employees (the existing KeyCare $1,000 plan with higher premiums in the new year and a KeyCare $2,000, higher-deductible option priced lower for some employees) and an increase in the annual flex-leave sell-back from 40 to 80 hours.
- Seven new social-services positions proposed, largely funded by the Commonwealth under the state's reimbursement formula.
- A 10-year CIP that shows FY25 capital spending of roughly $11.6 million and a broader 10-year plan of about $208 million, with more debt issuance anticipated later to fund three school projects not yet included in the numbers shown.

Caywood stressed revenue uncertainty around personal-property (vehicle) values and said the budget assumes flat personal-property revenue while projecting blended real-estate assessment growth that supports about 8% revenue growth in the near term. "I have a lot of concern about our personal property, revenue estimate," he said, adding that the county plans some one-time deferrals (fleet and equipment purchases) to preserve flexibility if revenues underperform.

Caywood highlighted economic-development gains that underpin the county's revenue outlook, including a large Wells Fargo site announcement and a Mack/Volvo investment that he said will add jobs and private investment. He closed by reminding the board that the schedule calls for public hearings on April 9 and an anticipated final approval on May 28.

Board members asked for a condensed 4'to'5-page public-facing summary for outreach; staff said a short packet could be prepared within about 24 hours. Caywood and staff also clarified program details during questions, including that new social-services positions are reimbursed by the Commonwealth at a blended rate near 80'to'85 percent depending on the timing and program specifics.

Next steps: the board will hold advertised public hearings on April 9 on tax rates and budget matters and is expected to adopt the budget at a May 28 meeting if projections and public comment allow.