Blacksburg Town Council Work Session – Housing and Budget Discussion – March 13, 2026

Note: The agenda and minutes provided list the meeting date as March 17, 2026, but the user-specified date for this summary is March 13, 2026. This summary uses the specified date.

The Blacksburg Town Council held a work session on March 13, 2026, at the Blacksburg Motor Company (400 South Main Street) from approximately 11:00 a.m. to 12:43 p.m. The meeting featured a presentation and discussion on housing affordability led by the New River Valley Homebuilders Association, followed by a review of the proposed FY2027 Operating Budget. All council members were present, along with the Town Manager, Town Attorney, and Town Clerk. No public comments were received, and no votes were taken; the session was informational.

Discussion Items

New River Valley Homebuilders Association Housing Presentation & Discussion

• Steve Semones, speaking on behalf of the New River Valley Homebuilders Association, presented an overview of housing affordability challenges in Blacksburg and across Virginia. He identified key drivers: rising construction costs, higher interest rates, expensive land, and regulatory requirements that can add approximately $94,000 per home. He noted that home prices have risen roughly 55% while supply lags due to a reduction in builders since the 2008–2009 recession, limited land availability, and long approval timelines.
• Semones discussed policy responses including state legislation, Blacksburg’s Small Lot Ordinance, zoning incentives, and Community Land Trusts. He indicated that these efforts aim to reduce costs and encourage denser, more affordable housing, though some face funding and implementation limits.
• The council discussed the presentation; no formal action was taken.

Review of FY2027 Operating Budget

• Town Manager Marc Verniel presented the proposed Town budget, which exceeds $125 million. He explained that the budget is guided by strategic goals and strong financial management practices to maintain high bond ratings.
• Key drivers include inflation, personnel costs, capital projects, and new positions. About half of the budget is allocated to salaries. Revenue comes largely from local taxes—especially meals, sales, and lodging taxes—with real estate taxes making up approximately 30% of the General Fund.
• Verniel noted that the Town has remained financially resilient in past recessions due to the stabilizing effect of Virginia Tech, and it manages downturns by reducing expenses and slowing capital spending. A shift to more frequent property reassessments is expected to improve revenue predictability.
• Council discussed the budget components but took no vote.

Key Outcomes

• No formal decisions or votes were recorded. The information presented will inform future council deliberations on housing policy and the FY2027 budget adoption.
• The work session adjourned at 12:43 p.m.