Operating Budget 2025-2026

The Town has four debt service divisions, one in each of the following funds: General Fund, Water and Sewer Fund, Stormwater Fund, and Midtown Special Service District Fund. These divisions provide the funds necessary to retire the Town’s outstanding general obligation bonds. The bonds, issued over a number of years, were secured primarily to pay for the cost of various infrastructure improvements, public facilities and other public enhancements.

The Town’s current level of bonded indebtedness is indicated by three key financial indicators:

1.

The Town’s net direct long-term debt, as a percentage of assessed valuation was 0.88% as of June 30, 2023. The Town’s legal debt limit, as authorized by the Code of Virginia, is 10% of the total assessed value of real estate, which is subject to taxation. For FY 2022/23, the legal debt limit for the Town was $486,895,274. The Town’s outstanding general obligation bonds at June 30, 2024 were $57,255,000. A key financial indicator which compares total net direct debt service costs as a percentage of net operating expenditures highlights the Town’s ability to finance the repayment of current and future bond issues. For FY 2024/25 this percentage is projected at 9.7%. Town Council’s policy is to target annual debt service costs at less than 10% and no more than 15% of general fund net operating expenditures*.

2.

3.

The last key financial indicator is a calculation of net bonded debt (General Fund portion only) per capita. At June 30, 2023, this amounted to $945.66 per capita.

The tables in this section display a six-year projection of General Fund and Water and Sewer Fund obligated debt service expenditures.

The below table provides a more detailed description of the Town’s indebtedness as of June 30, 2024.

*Net operating expenditures is defined as Total Expenditures less Capital Outlay Expenditures.

Long-Term Liabilities

Outstanding long-term debt at June 30, 2024 includes the following bond issues:

Outstanding Balance

2011C General Obligation Refunding Bond ($9,545,000) due in annual installments ranging from $360,000 to $850,000 with final maturity payment due October 1, 2025. Interest is paid semi annually on January 15 and July 15 at a rate of 1.92 percent. This bond was issued to refund General Obligation bonds from years 2002, 2004, and 2006 related to General Fund and Water and Sewer Fund capital projects. 2012 General Obligation Bond ($3,855,000) due in annual installments ranging from $135,000 to $230,000 with final maturity payment due March 1, 2032. Interest is paid semi-annually on March 1 and September 1 at a rate of 1.94 percent. This bond was issued to fund the restoration of the Alexander Black House and various property and infrastructure improvements. 2015 General Obligation Refunding Bond and New Money ($15,170,000) due in annual installments ranging from $230,000 to $920,000 with final maturity payment due June 1, 2045. Interest is paid semi-annually on March 1 and September 1 at rates of 2.00 to 5.00 percent. This bond was issued to refund a 2007 General Obligation bond related to General Fund and Water and Sewer Fund capital projects and to build the new Rescue Station and fund various property and infrastructure improvements.

•

$

360,000

•

$

1,720,000

•

$

8,415,000

190