Finance committee reviews January budget trends, approves remote participation and a city closure

The city Finance Committee on a January review meeting heard staff say citywide revenues for January were slightly higher year over year while general-fund receipts lagged, and the committee approved two procedural motions: allowing Councilor Townsend Harris to participate remotely for medical reasons and closing city operations the following day because of inclement weather.

Finance staff member Jordan presented the January budget-to-actuals report, saying, "Citywide revenues for January are trending 1.13% or 2,500,000.0 higher than '25 versus '24," and that citywide expenses were up 0.28% or about $2.3 million. Jordan said the general fund showed lower revenues for January — "trending 6% or 1,300,000.0 lower in revenues for '25 versus '24" — driven by PSC and personal property; Jordan added the administration had extended penalties and interest due date to March 15 and expected collections to increase in February.

The presentation reported the enterprise fund was up 2.7% or roughly $2.3 million in revenues for the month, and that enterprise expenses had fallen compared with 2024 largely because emergency repairs declined. Jordan said utility collections for January were around 99% (up from 94% in December and 88% in November). She also reported that the city processed 1,269 invoices in January totaling about $4.2 million and that debt service payments included a $215,000 payment to U.S. Bank.

Committee members pressed staff on operational projects and potential cost pressure. Councilor Townsend Harris, participating remotely, confirmed his location as "Home" and said he was "for medical reasons" requesting remote participation. Vice Mayor Joiner moved to allow remote participation; Councilor Ellis seconded the motion, which passed on roll call, 4-0.

Councilors discussed the Queen Anne pump station project and a notice of violation (NOV) related to sewer-collection issues. Councilor Day asked for cost estimates for immediate fixes and for inflation-driven increases in backup-generator and motor prices, noting the council previously budgeted and funded work but that rising costs could create additional needs. Jordan said staff had a plan to address NOV items but had not yet produced cost allocations.

The committee reviewed midyear salary-savings figures and proposed allocations. Jordan said the general fund had about $203,000 in salary savings and staff requested those savings be used for a forensic audit and attorney fees related to several process issues, naming Sands Anderson and VRSA among counsel. Enterprise fund salary savings of roughly $339,000 were proposed to fund a rate study that would include HRW and consultants Davenport and Raphtelis, and to pay Fourth Amendment attorney fees for Hudson, Andrew, and Kirk. Jordan said the forensic audit contract has been signed and that the audit team should begin work in March.

Members also discussed coordination of waterfront and pump-station projects with Virginia American Water's possible property acquisition; Councilor Day asked staff (Charles) for revised budget pricing so the city could coordinate construction schedules and funding decisions with that private construction timeline.

Before adjournment, Councilor Day moved — and Vice Mayor Joyner seconded — to close the city the following day because of inclement weather; the motion passed on roll call, 5-0.

The committee said the February agenda will include a review of the fiscal year 2024 ACFR and that staff would follow up with additional cost estimates on the pump station NOV and updated budget pricing for the Riverwalk and related marine improvements. The treasurer, Maya Bowling, was absent for a family emergency but had distributed her report to committee members.

The meeting closed after a roll call adjournment vote.