Waynesboro staff report midyear finances; council hears possible consolidated borrowing for three projects

City finance staff told the Waynesboro City Council on Feb. 20 that revenues and spending through the second quarter of fiscal year 2026 are tracking broadly in line with expectations and outlined near-term borrowing needs for several capital projects.

"Now that we are six months into the fiscal year, revenues and expenditures across all the funds are trending as expected," finance staff said, reporting that general fund revenues were about 69% collected while general fund expenditures were about 51% utilized as of Dec. 31. Staff noted real estate tax collection is at approximately 99.3 percent.

The presentation also broke out enterprise funds: stormwater revenue was reported at 88 percent collected, and overall enterprise revenues were influenced by billing cycles. Staff highlighted that during the 2026 budget cycle the meals tax rate was increased from 7 percent to 7.5 percent, producing a budgeted total of about $7.7 million; collections through December (receipts recorded through Dec. 31) were about $4.3 million.

Finance staff outlined three near-term borrowings that may be pursued in the coming months: the Nature's Crossing Technology Center, the Waynesboro High School renovation, and Shenandoah Village Drive upgrades. Staff said it may be cost-effective to issue one larger local borrowing to cover the first three projects and reduce issuance costs, and described timing estimates and potential funding sources by fund.

Staff emphasized that revenue timing is cyclical and that some annual or semiannual payments (for example, insurance or debt service) increase first-half expenditures. The council asked no substantive questions and no action was required; staff said they would return with more details if council requested.