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Bristol finance team reports mid‑year surplus and flags future debt service pressure
Summary
City finance staff reported a $5.8 million general fund surplus at Dec. 31 driven mainly by rolling beginning balances, discussed changes from moving solid waste into the general fund, and said the city has submitted large landfill reimbursement requests to the state but had not yet received funds.
City finance staff presented the general fund financial report for the six months ended Dec. 31, 2024, to the Bristol Virginia City Council on Feb. 25, noting a $5.8 million fund‑balance surplus but warning of upcoming debt‑service pressures.
Tamara (finance staff) said the report is cash‑basis and unaudited. The general fund budget was $91,154,000 with revenues of $46,323,000 (51% of budget) and expenditures of $40,428,000 (44% of budget) through Dec. 31, leaving an unaudited surplus of $5,800,000. Tamara said $5,860,000 of the surplus reflected beginning‑balance funds carried from the prior fiscal year.
Revenue composition through Dec. 31: local revenue about 76% of receipts, state revenue about 20%, and federal revenue about 4%. Sales, lodging and meals taxes showed increases over recent years while cigarette tax revenues declined.
On expenditures, government administration was at 51% of budget for the period; public safety 43%; public works 31% (timing of projects); health and welfare 42%; education 48%; nondepartmental and debt at 74% due to insurance and debt‑payment timing. Total expenditures were 44% of budget through the half‑year mark.
Tamara flagged the city’s debt‑service schedule: previously issued general obligation bond anticipation notes mature in fiscal year 2028 and, if not refinanced, will increase debt service with a projected escalation to about $8.974 million in fiscal year 2027. The city planned to use committed debt reserve funds for 2025‑26 but warned those reserves would be fully expended by 2026 unless revenues improve.
Council members asked about the city’s landfill reimbursement from the state. Tamara said the city finalized an MOU in December and submitted the first reimbursement request of about $14.1 million; DEQ review was pending and the city had not received funds. A second reimbursement request through January 2025 of about $1.5 million was ready. She said the city expects significant revenues once DEQ completes its review but had not received any reimbursements at the time of the presentation.
Tamara also explained that solid waste operations were now included in the general fund, which changed historical spending composition and transfers. She said transfers include outgoing DRI monies to the IDA, local capital project transfers, and a small transit transfer.
Ending: Finance staff said they will monitor revenue and expenditure trends and, if committed reserve funds are not needed in the current fiscal year, delay drawing on those reserves. Council thanked the finance team for the work on the landfill reimbursement submissions and asked for continued updates.
