It’s no secret by now that this year’s budget will be tight for the city of Roanoke. On Monday morning, Davenport & Company, the city’s independent financial advisor, will outline some strategies and considerations for the city council in the coming year, at a joint meeting between the city council and the school board.
One “consideration” the company lists is that the city allocates 40% of its local tax revenue to Roanoke City Public Schools. This comes at a time when the city’s schools are overcrowded, and the council and school board are considering options to potentially open a third high school that could cost upwards of $150 million and three more elementary schools with potentially that same price tag.
“While not yet approved, the 1% local option sales tax could be an opportunity for the City to address the generational capital projects mentioned above, if approved by the State Legislature and Governor,” the report reads.
The report also lists immediate needs for deferred maintenance, which Mayor Joe Cobb also highlighted as a major issue in a recent conversation with reporters. “If funds are made available,” the report reads, “the City can realistically address approximately $4-6 million annually” on improvements such as HVAC, electrical maintenance and elevators.
The strategy suggested to handle deferred maintenance was to use a combination of cash and strategic borrowing to avoid dipping into general fund revenues.
The city’s current meals tax rate is 5.5%, which “compares favorably” to similar localities, the report said. “A 1% increase on the meals tax rate would contribute approximately $4 million in additional annual recurring revenue.” The report cites the benefit of a portion of these dollars coming in from non-Roanoke residents.
Those interested can see the full report here and the full agenda here. Monday’s 9 a.m. and 2 p.m. sessions will be held in the city council chamber, fourth floor, room 450 of the Noel C. Taylor Municipal Building.
Cardinal News will be covering the joint meeting and future discussions of overcrowding solutions for the school district.
