VIRGINIA — City of Virginia officials remained short on answers as to where they spent $3.7 million of sales tax funds, and appear ready to turn over the couch cushions to find it.
Councilors elected Tuesday to seek a forensic audit of the city’s 2026 spending, a potentially expensive step, but one meant to analyze the budget details.
An audit could cost Virginia another $50,000, but officials said they would ask the company performing the annual audit about doing one at a lesser cost. The city could also ask residents to petition the state for an audit at no cost.
“This sounds very expensive, but if it’s what we have to do, we have to do it,” said Councilor Annie Bachschneider.
The money in question was raised through a 1% sales tax increase implemented five years ago to build the Iron Trail Motors Event Center. The city intended to use the funds to either pay the building off early, or let it grow as a maintenance money down the road.
Somewhere along the line, those tax dollars were spent on general expenses around the city, with no transaction log to follow its distribution. The mistake could result in Virginia taxpayers bearing the burden on next year’s levy.
Resident Greg Lenci pressed the council about where the money went, which was met with several seconds of silence before Mayor Larry Cuffe Jr. responded.
“Relatively soon,” he said of a timeline, adding “We don’t have the answers either.”
Cuffe and other councilors stressed they believed the spent funds were a mistake and not “malfeasance.”
Councilor Steve Johnson opposed the forensic audit and was the lone vote against pursuing one. The last audit of its kind in Virginia was 2010, when problems arose with the police pension fund.
“We have a cash flow issue because we haven’t raised levies appropriately in the last 10 years,” he said. “We have much more important things to do in this city.”
A forensic audit was not the only money the city considered or approved spending Tuesday, even amid a freeze on new purchases.
Councilors approved a new 10-year contract for police and fire radios with Motorola — about $93,000 annually — three new patrol officers and two new community service officers. The radios would be a 2027 budgeted item, when the new terms are activated.
Virginia Police Chief Nicole Mattson said the current radios are outdated and no longer serviced, presenting a risk to officers and the public.
Councilor Liz Motley also floated a proposal to increase pay for the mayor and council. She said an elected official has about 850 meetings per year, plus more for committees and other obligations.
The council previously eliminated health insurance for its members and mayor, creating space for the pay increase, they said.
Motley is not running for re-election, and said the proposal would benefit future councilors and mayors, with the hope to increase election participation. Virginia has three open seats in November and only two candidates.
“Just speaking for me, I have lost thousands working for the city of Virginia,” she said. I knew it was going to be a hit when I ran. I didn’t realize to what extent.”
The council agreed to look at the ordinance next meeting.
Other meeting notes
- Councilors approved flying both the old and new Minnesota flags, an attempt to satisfy both sides of an increasingly political debate. Democratic lawmakers, this past session, unsuccessfully tried to pass a law that would the state to withhold Local Government Aid from cities that chose to fly the old flag.
Accessing the Virginia City Council
Virginia City Council agenda, minutes and packets can be found on the city’s website. Recordings of the meetings can be found on YouTube.
