BRISTOL, Va. — The Bristol Virginia City Council voted Tuesday to retain the current real estate tax rate and discussed plans to lower the monthly trash collection fee as part refining the fiscal 2024-25 operating budget.
The council received a lengthy overview of the proposed spending plan from City Manager Randy Eads and then needed little time to approve keeping the tax rate at $1.17 per $100 of assessed value rather than seeking a second consecutive increase. Last year the council raised the rate by five cents.
“I think we’re looking better this year than we did last year even with the additional costs we have coming in with the landfill,” Mayor Becky Nave said after the meeting. “I think by raising the taxes last year it put us in a better position this year and I am happy we didn’t raise the real estate tax rate. I think that’s important.”
People are also reading…
Property appraisals are currently occurring and expected to be finalized later this year. Taxes based on the reappraised values would not go into effect until Jan. 1, 2025, Eads told the council, in response to a question. The council can act later to adjust the rate.
Nave and Vice Mayor Jake Holmes each reiterated their appreciation to Gov. Glenn Youngkin for retaining $26.5 million in the state’s current proposed budget to help offset some of the city’s remediation costs at the embattled landfill. While it will not pay for all the work planned and occurring, without those funds the city’s financial position would look vastly different, Nave said.
Plans currently include lowering the trash rate from $48 per month to $38 per month, a nearly 21% decrease. Since closing its landfill in September 2022, the city lost the revenue stream delivered by accepting trash from other localities and is paying extra to dump its own trash at the Blountville landfill.
“It is huge if we can lower the trash rate because that’s what I’ve heard has been the largest burden on a lot of our residents. They don’t have enough money to pay a lot of their bills, especially a trash bill that’s that high,” she said. “I am happy if we can reduce that. Not happy that we have to raise meals and lodging [taxes] to get it, but at least its not a direct impact.”
Eads began his presentation noting the city was in “dire financial straits.” He presented a proposed budget that was balanced, in part by shifting some funds from this current fiscal year’s plan.
“Basically, the city is going to pull from our savings account to balance the budget,” Eads said after the meeting.
It includes $1.2 million from capital projects funding, approved but unspent allocations and other sources.
“I feel like we budgeted our revenues conservatively so there is a chance we won’t have to pull all of it,” Assistant City Manager Tamrya Spradlin said after the meeting.
Even with the state funding, the city will continue funding landfill work for some time, Eads said.
“The landfill is a significant challenge and is going to be a significant challenge for the city going forward over the next 20 years, at least, and probably longer than that,” Eads said.
Among items that are increasing include:
- A 3% pay increase for city employees, library employees and an employee insurance increase. The wage hike is expected to cost $535,000 and the insurance cost is expected to be $290,000.
- An additional $812,000 for the city’s share to the Southwest Virginia Regional Jail Authority for additional prisoner costs and expenses.
- The city expects to spend $8.65 million this fiscal year to continue paying down its debt. Part of the increase was planned but will be $767,000 higher due to borrowing bonds for the landfill in late 2023. It is up from $5.3 million in the current fiscal year.
- Lodging and meals tax rates are expected to increase. A 2% hike in the lodging tax – bringing it to 15% — is forecast to generate over $637,000. The restaurant meals tax is scheduled to rise 1%, from 10% to 11%, and expected to generate an additional $590,000.
The trash rate decrease is expected to cost the city about $38,000.
The city’s general operating fund budget will increase to $87.54 million, all city budget expenses total $99.69 million, the combined school budget — including all funds — is $57.16 million, bringing the total combined spending plan to $156.86 million, Eads said.
Twitter: @DMcGeeBHC