Pittsylvania County finance committee reviews revenue projections and options to finance $11.5 million in capital projects

Pittsylvania County finance staff told the County Finance Committee on a March meeting that projected 2025 revenues are higher than budgeted and that the county will need to seek financing for several capital projects that together total about $11.5 million.

Kim VandeHeide, presenting revenue and financing figures to the committee at 39 Bank Street in Chatham, said projected 2025 general revenues total $34,619,922 compared with the adopted 2025 budget of $33,763,469, leaving roughly $856,453 in additional revenues. VandeHeide also highlighted stronger-than-expected delinquent tax collections and higher interest earnings as contributors to the positive variance: “Delinquent collections ... has been amazing,” she said.

The presentation included the county’s proposed 2026 revenue figures, with real estate and personal-property projections largely driven by modest assessed-value growth and an estimated contribution from the Mountain Valley Pipeline (MVP). VandeHeide said the county used MVP-provided valuation figures to estimate $1,800,000 in tax revenue from the pipeline for 2026; she noted the county did not have an official estimate from the State Corporation Commission.

Why it matters: county staff said multiple capital needs — a CAD system replacement, a radio system upgrade, a final broadband payment and other projects — will require debt financing or reimbursement financing to avoid large cash shortfalls. VandeHeide said the county needs to complete an application to the Virginia Resources Authority (VRA) and that the application is due May 1.

Most important details: VandeHeide listed the capital items and the figures discussed in the meeting: a computer-aided dispatch (CAD) replacement at $1,351,007.31; a radio system upgrade for $1,900,000; a broadband final payment (figures in the presentation varied; see note below); and other capital placeholders including courthouse HVAC replacement and property acquisition for which final costs were not available. She told the committee the total cost of projects that will require financing is about $11,500,000.

Staff outlined two financing approaches. Option 1 (not recommended by staff) would finance approximately $9,500,000 this summer using funds set aside for projected debt payments; staff described this as problematic because two items — courthouse HVAC and property acquisition — lacked firm budgets and timelines. Option 2, recommended by staff, would rely on a previously passed reimbursement resolution (February 2024) to finance already-started projects (the Moses Building window and HVAC work and the PATHSS building purchase and renovation) while also financing the CAD and radio systems and the broadband final payment. Under Option 2, staff said the financed amount would be slightly larger than Option 1 (by less than $100,000) but would preserve roughly $4 million in cash to address the courthouse HVAC and property acquisition once scopes and budgets are confirmed.

Committee members asked questions about enterprise funds and landfill operations, tipping fees and equipment costs; one member noted that landfill costs and contract terms affect the enterprise fund’s solvency. VandeHeide said the county will continue working with committee members and with county administration to balance the budget and to prepare the VRA application.

The committee did not take a final financing vote during this meeting; staff requested that an agenda item be added at the business meeting to authorize staff to submit the VRA application by the May 1 deadline.

Ending: VandeHeide said County Administrator Shortle will submit a recommended, balanced budget to the full Board of Supervisors on April 11 and will present it at the April 15 board meeting, when the board would vote to advertise the county and school budgets for public hearing on April 23 and April 30. The finance committee will continue work to reconcile budget requests and runs of operations before those dates.