BRISTOL, Va. -- City leaders voted unanimously Tuesday to pay off nearly 20% of the city's tax-supported bond debt.
The City Council approved a budget amendment that will pay off $30.7 million in short-term general obligation bonds. The funds were borrowed as short-term bonds in October 2023 to fund a series of remediation projects at the now-shuttered quarry landfill.
The council also suggested the possibility of a new, unspecified downtown event during a vote to reduce funding to Believe in Bristol.
It will reduce the city's long-term debt obligation from $156.4 million to $125.6 million, according to Roland Kooch, senior vice president of financial advisers Davenport & Company.
Once paid off, the city will still have about $98.4 million in general obligation bond debt plus $24.1 million in lease debt and $3.1 million other long-term obligations, he told the council.
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Funding sources include about $16 million in grant dollars, provided by the state of Virginia, to pay back the city for completed remediation work at the landfill; about $10.5 million in unspent bond proceeds -- because one project was delayed -- and $4.3 million from the city's fund balance.
The payoff amount is also expected to include about $120,000 in accrued interest.
"This is exciting," Mayor Beck Nave said. "I know we still have a lot of debt, but we have a plan and to hear that we are improving our financial is huge."
Nave thanked city CFO Tamrya Spradlin, City Manager Randy Eads and Kooch, who presented details of the plan and its short- and long-term impacts.
"You've come along way," Kooch said. "That's really a testament to Mr. Eads, Ms. Spradlin as well as City Council staying on task; staying on target and really doing the right things to put the city back to good fiscal health."
"I know this council has also been very conscious about our budget and I say thank you to you all because I know we've had some long sessions making tough decisions," Nave said.
Spradlin said the combination of state funding and following a plan allowed the city to reach this point.
Kooch said if the state funding hadn't come through, the city would have been forced to borrow the $30.7 million as long-term general obligation bonds which would have further handcuffed the city's fund balances and weakened its long-range outlook.
The roughly $10 million balance of state funding is expected to cover the costs of the delayed project -- installation of a geomembrane cover over the landfill -- which must occur by December 2026, Eads said in response to a reporter's question.
In other matters, the council voted 4-1 to reduce its funding to Believe in Bristol for this fiscal year by $20,000. The nonprofit downtown marketing organization is now to receive $50,000 for 2025-26, rather than the $70,000 approved in the budget.
That item wasn't on the published agenda but added by a unanimous vote at the start of the meeting.
During the budget process council debated how much money to provide BIB and other organizations. On Tuesday, Mayor Nave said she wanted to reduce their allotment to $50,000 with the remaining $20,000 to be spent on an unspecified downtown event.
"I think $50,000 served them well last year. They did fantastic work," Vice Mayor Jake Holmes said. "I do think there's a lot of potential things downtown, other things that might be happening. I know we've got the Virginia 250 celebration next year; several big celebrations happening, so I think its worth a little ability to do something."
Nave, who works for Virginia Tourism Corporation, said grants are available to support events related to Virginia's 250th anniversary celebration in 2026 but would require local matching funds.
Holmes made the motion -- which included potential of a Virginia 250 event -- that was seconded by Councilman Neal Osborne.
"I think it's very important for the business owners and the business community -- on both sides of the state line -- that we support downtown and we want the events downtown to be great, to be exciting. We want them to be stuff that people come from all over our region to attend," Osborne said.
Councilman Anthony Farnum voted against the change, saying any adjustment should be done during the next budget cycle.
Twitter: @DMcGeeBHC
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