Bristol council approves updated financial policies, folds budget policy into finance policy

The Bristol, Virginia City Council approved updates to the city's financial policies on Jan. 28, 2025, following a presentation by the assistant city manager and chief financial officer, who said the revisions were recommended by the finance committee.

The changes incorporate the city's prior standalone budget policy into the overall financial policy, add explicit references to the state code for the reassessment and budget process, and remove language referencing a solid waste fund that the city no longer maintains. The assistant city manager and CFO told council the revisions aim to promote long-term fiscal stability, protect the city's credit rating and provide clearer guidance on appropriations and budget adjustments.

Key details presented to council included: - Reassessment of real property will be completed every four years (the revised policy lists the Code of Virginia citation cited by staff: Title 58.1, Chapter 32, Article 5). - The budget process will follow state law guidelines (the presentation cited Title 15.2, Chapter 25 of the Code of Virginia as the applicable authority for the municipal budget process). - The city's budgetary basis is cash accounting, consistent with the governmental accounting standards and the city charter. - The general fund unassigned fund balance target is 18% of general fund revenues (excluding pass-through revenues and internal transfers); the staff report said the city has met and exceeded that goal in recent years. - The policy retains a long-term goal to limit general obligation debt to 5% of assessed property value (staff noted the city is not currently in compliance with that goal and that the policy is intended to move the city toward the target). - A five-year capital improvement plan will continue to be required, and monthly and quarterly financial reporting will be provided to council.

The proposed schedule for this year's budget process was also reviewed: department work papers were due Jan. 24, 2025; outside agency applications are due Jan. 31, 2025; the city manager will present the budget on April 8, 2025; a public hearing on the appropriation ordinance is scheduled for April 22, 2025; first reading of the budget ordinance is scheduled for May 13, 2025; and second reading for May 27, 2025. The staff presentation noted the city aims to enact the appropriation ordinance by July 1, 2025, consistent with state law.

Councilmember motioned to approve the updated financial policies "as presented." The council approved the update by roll-call vote; the clerk recorded "Yes" votes for Farnam, Holmes, Osborne, Pollard and Mays. The finance committee had recommended the changes.

Councilmembers and staff thanked the assistant city manager and CFO for preparing the revisions and for the ongoing work that staff performs to maintain the city's fiscal position. The updated financial policy language will be included in the annual budget book and presented for ongoing review to council as part of the budget process.