Bristol Virginia City Council on Aug. 26 approved a supplemental appropriation of $30,710,000 to prepay the principal on the city’s 2023 bond anticipation notes tied to the quarry landfill remediation project, funding the payment largely with state grant proceeds and remaining bond proceeds.

The council voted unanimously to authorize the city manager to redeem the notes; the roll call for the appropriation recorded votes in favor from Council members Farnam, Holmes, Osborne, Pollard and Mayor Nave.

Financial adviser Roland Kooch of Davenport & Company told council the city could apply roughly $16 million in Commonwealth grant funds and about $10.5 million of unspent 2023 note proceeds toward the payoff and tap about $4.3 million of unassigned general‑fund balance to finish the redemption. “We anticipate that you’re gonna take action on as a result of of the, the public hearing,” Kooch said during the briefing, adding the city “will still be in an excellent position” after the transaction.

Why it matters: Davenport’s analysis presented to council estimated that extinguishing the $30.7 million note will lower the city’s tax‑supported debt and improve debt ratios and legal debt capacity. Kooch said the payoff will reduce pressure on credit metrics, increase the city’s legal debt margin to roughly $118 million, and lower the city’s general‑obligation debt to assessed‑value ratio from an estimated 5.8% to about 4.3%.

Council and staff members emphasized the near‑term budget impact and projected savings. Tamara Spradlin, the city’s finance director, noted the fiscal year‑end 6/30/2025 cash‑basis results were unaudited and outlined the general‑fund position. The FY‑26 budget as adopted already assumed planned uses of fund balance for one‑time capital projects; paying the note now will increase the budgeted use of unassigned fund balance for FY‑26 from roughly $2.9 million to about $7.2 million but, according to Davenport, leaves the city with an estimated unassigned fund balance of about $25.7 million (roughly 31–32% of revenues), well above the city’s 18% policy target.

Kooch told the council the prepayment also reduces the planned use of the committed debt‑service reserve in FY‑26 by roughly $600,000–$700,000 because the note will not be outstanding for the full budget year, producing that budgetary relief. He cautioned that projections assume no large, unplanned revenue shortfalls or expenditure overruns in FY‑26 and that audited FY‑25 results could change final amounts.

The payoff stems from a financing plan developed after a 2023 federal court order and consent decree required extensive remediation and closure work at the city quarry landfill; the 2023 notes were issued as interim financing while state grant funds were sought. Council members and the mayor praised staff and advisors for working to strengthen the city’s fiscal position and credit profile.

Actions and next steps: Council adopted the supplemental appropriation by roll call and authorized the city manager to prepay or redeem the 2023 bond anticipation notes. Staff will execute the redemption paperwork and reflect the transaction in upcoming financial reports and the FY‑25 audit.

Background details: The city’s advisers said the legal debt capacity increase does not imply immediate borrowing; it is simply the legal margin restored by the combination of assessed‑value growth and the removed note principal. Davenport projected modest increases in debt service in later years tied to other planned borrowings and school lease revenue debt, and recommended continued monitoring of reserve levels as budgets are implemented.