Haysi council holds budget hearing; discusses contractor line of credit and retirement contribution increase

Haysi Mayor Yates called a public hearing on the 2026–2027 Budget Ordinance to order at 7:15 p.m. on June 21 in council chambers and opened the floor for public comment; no one was registered to speak.

Clerk Amanda Perrigan told the council the town's line of credit reflects the total remaining amount owed to the contractor for the project and is "used and paid back as needed." She added that "some of the amount on the line of credit would be converted to a loan at the end of the project to cover the construction that was not funded by the grants." Mayor Yates said the line of credit was obtained to attract contractor bids and noted the council had already voted on that matter. When Council Member Allison Mullins asked for the current balance, Perrigan said it had not changed since the statement emailed to her last week; no dollar amount was provided during the hearing.

Mullins raised concerns about a recent increase in the town's Virginia Retirement System (VRS) contribution rate, saying the town's rate "is far above any other political subdivision in the state," and asked for information on the factors driving the rise and on options to reduce the town's long-term obligation. Mayor Yates said the increase was mostly affected by the retirement of three former employees and confirmed the higher contribution is not being applied to current employees' retirement. Council Member Debbie Wood asked whether the rate increase was being paid into current employees' accounts; Wood and the mayor clarified it was not. Mullins asked if there had been years when payments to VRS were skipped; Mayor Yates replied no. Mullins suggested sending a letter seeking recommendations from VRS on ways to reduce the rate.

Council members also discussed community volunteer capacity and local committee participation: Mullins urged more transparency with the public and stakeholders, saying it is important for morale and for encouraging volunteer engagement; Mayor Yates said the town once had about 30 volunteers but current staff and volunteers cannot manage events alone. Council Member Debbie Wood said she had been selected to serve on the Dickenson County Tourism Committee, and the council discussed an open appointment to the Dickenson County Energy Committee.

Mayor Yates closed the public hearing at 7:36 p.m. No public speakers addressed the budget during the hearing, and no votes or formal actions were taken at that meeting.