Questions over Virginia’s financials and oversight widened Monday as city officials increasingly challenged the people, processes and institutions long-charged with managing its day-to-day operations.
Tension points surfaced as the city council disputed year-end financial transfers, and sparred over who should participate in a forensic audit process.
“If anybody thinks the city is moving in the right direction, you have another thing coming, this is absolutely terrifying,” said Councilor Liz Motley, as she assessed the city’s first look at the annual 2025 audit, which showed millions in declining fund positions and multiple accounts with negative cash or deficit balances.
Virginia’s financial position has been under a sharper microscope this year after at least $3.7 million in earmarked sales tax revenue was misplaced, prompting the forensic audit.
A deeper dive into the numbers showed its debt was more than triple the annual budget and financial reports became more complex for a less experienced staff. The council declined to act on seeking information about outsourcing police and ambulance services. It is also in the midst of dealing with a stalled hotel project near the prized events center.
A $3.28 million year-end transfer would be required by the city, said Tom Kelly, an accountant for Walker, Giroux & Hahne, because funds cannot show a negative cash flow in the year-end audit. That amount would have been reflected back in the general fund at the start of 2026.
Councilor Maija Biondich expressed frustration with the audit results, which showed the ambulance fund losing about $1 million over the course of the year and further losses were shown in the Iron Trail Motors Event Center Special Revenue Fund.
Kelly said “the buck stops with the council on the overscharges” when she questioned how they could implement a plan to recover those negative fund accounts.
“I’m not sure that either I’m understanding or getting the correct answers that I need to make the decisions that I do,” Biondich said. “I’m assured that we have it. It’s budgeted and it’s recommended. So when I read these reports, it’s kind of disappointing … and yet, we’re in the situation we’re in.”
Councilor Annie Bachschneider said several questions remained for her on the draft audit, which Kelly said was sent late last week to the city, including how some transfers were allowed due to bonds.
The council ultimately approved another extension for the audit to be filed with the state, a 5-1 vote with Councilor Steve Johnson opposing. Johnson motioned for a resolution to transfer the $3.28 million, on paper, for the 2025 audit but it failed to garner a second. The transfer resolution was ultimately tabled on a 5-1 vote with Johnson opposed.
“I personally don’t feel comfortable approving the resolution until I see the draft,” Bachschneider said. “Even if it’s not final. I appreciate the high level stuff, but I think that there’s just a lot more detail in question that I just want to dig into.”
But the council’s questions were beginning to extend beyond the numbers themselves.
As Bachschneider brought up the forensic audit, councilors confronted the different question of which staff should be involved and a point of contact for the auditors.
Bachschneider said the forensic audit should remain on the old business side of the agenda until it’s completed, with committee members providing reports when available.
Mayor Larry Cuffe Jr. questioned whether the committee’s approved scope expanded beyond selecting a firm and advocated throughout discussion for City Administrator Britt See-Benes and Financial Director Meghan Bothwell to be “intricately” involved.
“I see some head shaking about why our city administration should be involved, or finance director, because … Megan is the leader of finance, the city administrator runs the city. So, I don’t see any reason why they’re not involved exclusively in this process. I don’t get it. I don’t understand it.”
City Clerk Pam LaBine, who along with Human Resources Director Joy Ruedebusch, was selected by the committee as a point of contact for the audit firm.
“They are involved,” LaBine said. “They are the ones gathering all the information.”
Johnson motioned for the two staff members to be involved in all communications on the forensic audit.
“As the person who runs the city, Britt should have access to all of that information at any time,” Johnson said. “If there’s questions that come up, Britt would be the person who has to answer those questions, as the spokesperson of the city other than the mayor.”
Supported by Cuffe, the motion failed 4-2.
“Well, I’m done. That’s fine. You can do what you want,” Cuffe conceded “That was my opinion. And so we’ll take the vote.”
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.
Artificial intelligence disclosures: Civilio.ai was used in compiling the transcription of this meeting. All findings used were verified by a real human. Read our AI policy.
