During its April 28 meeting, the Martinsville City Council received City Manager Robert Fincher’s proposed FY 2026–27 budget, which includes significant spending reductions and a recommended real estate tax rate increase.
City staff developed the proposal after last year’s revenues were overestimated by $1 million ($36 million) and expenditures were underestimated by $4 million ($43.8 million).
To address the gap, several cost‑saving measures were included in the draft budget:
- A hiring freeze, resulting in the lowest staffing levels in recent years
- School funding reduced to the previous year’s level
- Reductions in outside agency funding
- The lowest level of funding for travel, training, and office supplies in a decade
- Partial pass‑through of health insurance rate increases to employees
Despite nearly $3 million in proposed cuts, the City still faced a shortfall of almost $2 million. To close the remaining deficit, Fincher recommended increasing the real estate tax rate by $0.09, bringing the proposed rate to $0.84 per $100 of assessed value. Even with the increase, Martinsville’s rate remains below the regional city average of $1.00.
Council members received the full line‑item budget for review and will hold four work sessions between April 30 and May 6, 2026.