The Virginia City Council voted on Dec. 22 to direct staff to correct how a roughly $310,000 Industrial‑Recruitment/Regional (IRRRB) allocation appears in the draft 2026 budget, after several councilors said the item is not guaranteed city revenue.

Councilors spent more than an hour debating a line described in the packet as an IRRRB allocation that historically flows through to VIDA (the city’s economic development entity) or is used for project‑specific grants and loans. Councilor Buck Schneider argued the $310,000 “is not money coming into us and being used on our bottom line,” and that recording it as general‑fund revenue without a matching expense misstates the city’s financial picture.

Mayor and finance staff said the allocation has historically been recorded in the general fund because the city receives the check and then disburses the money; staff cautioned that timing differences across fiscal years can make revenue and expense recognition appear misaligned. Jenny Bubinet, the community planning director, told the council the IRRRB funding has varied year to year and is often used for VIDA projects or pass‑through loans.

Faced with two practical options — remove the $310,000 revenue from the draft budget or add a matching VIDA/project expense line — councilors moved that staff be authorized to choose the correct technical fix. The motion carried on a voice vote; the transcript records the mayor calling for ayes and saying “motion carries.” The vote was recorded as a voice vote and no roll‑call tally appears in the minutes.

Why it matters: Several council members said the city’s bond counsel and rating analysts have flagged repeated use of reserves and optimistic revenue estimates. Councilor Bach Schneider argued the change is intended to make the budget more transparent and accurate ahead of the levy setting. Councilors also emphasized the potential downstream effect: removing the $310,000 as revenue will either force $310,000 of expenditure cuts or a levy increase unless other offsets are identified.

Next steps: Staff was directed to implement the chosen technical fix — either remove the revenue or add the offsetting expense — and to provide updated levy calculations at the council’s next meeting, when the city will formally set the 2026 budget and levy.