Chilhowie's Dylan Martin escapes the tackle from J.I. Burton's Nico Niece.
Chilhowie's Dylan Martin escapes the tackle from J.I. Burton's Nico Niece.
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Smyth supervisors urged to adopt financial action plan
The man who sees the bank balances day in and day out believes that Smyth leaders need to possess a sense of emergency about the county’s financial situation.
Last Thursday, County Treasurer Tom Burkett told a meeting of the Board of Supervisors’ Budget Committee that action is needed to address the county’s significant decline in cash reserves, rising expenses, and reduced revenue.
To address the crisis, Burkett said that expenditures must be reduced in a large way, while generating new revenue.
Action Plan
This Thursday, the full Board of Supervisors will consider adopting a proposed six-point action plan, which was presented to the Budget Committee by County Administrator Shawn Utt, who noted that the proposal was developed with the county’s financial advisors at Davenport & Company.
The first point calls for continuing the hiring freeze for all non-essential employees and consider options to restructure county departments to cut expenses by about $500,000.
The second step would use all available cash, particularly $2.3 million from the School Textbook Fund and another $1 million from Economic Development Authority (EDA) funds, to pay bills before using a Line of Credit. Over the long term, this move would minimize debt. Utt did note that the Textbook Fund would have to repaid by June 30, 2027.
The third measure would recapture about $1 million from the SmythGrow program, which was established to facilitate housing development in the county. A memo from County Administration said, “While the program has generated positive community outcomes, short-term cash stabilization must take priority.”
The fourth step would continue an operational spending freeze and limit expenditures to basic emergency only expenses. The estimated savings are projected to be about $100,000.
The fifth point would direct all departments, organizations, and agencies who receive funding from the county to cut expenditures by 5% and plan for additional cuts in 2028. About $2.8 million in savings are estimated.
Utt said that the impetus of a memo detailing this step would emphasize that solving this problem “has got to be teamwork.”
In the past, he said that protections have been built up around some departments, but everything has to be on the table now. He did note that regional jail costs are one exception.
The sixth step would restructure county debt, which is expected to save $500,000.
Selling Property
The county’s EDA had bought the Wells Fargo building in Marion as part of a plan to relocate county offices. However, that plan didn’t come to fruition.
Thursday, Utt said the building is being sold. He expected a contract to be ready this week. The money from that sale will go to the EDA, which could then be awarded to the county.
The former Pepsi building, which is county owned, was also brought up. Utt noted that grant funds are being sought to remove asbestos in the building and replace the roof, improvements that would be more difficult for a private developer. Once completed, Utt said that developers have expressed interest in the building.
Regarding the county-owned Wagon Wheel building, officials said it currently generates cash flow through tenant leases.
A vacant lot next to the Dollar General store in Atkins had been under contract, but the sale didn’t go through. Utt said he is asking the realtor to push the property.
Line of Credit
While county officials would like to avoid using a Line of Credit set up with The Bank of Marion, officials don’t believe that will be possible. Utt noted two large debt payments, one for the county and one for the school system, are due in October.
Should the situation worsen, Utt said the county should consider increasing its now $5 million Line of Credit to $10 million.
The Board of Supervisors will also take up that question Thursday evening.
Tax Revenue
The most predictable and controllable source of revenue for local governments is local taxes – real estate, personal property, machinery and tools, and others.
Burkett noted last Thursday that Real Estate tax tickets were being mailed. However, the bulk of payments on those bills won’t come in until early December when they’re due.
During the Budget Committee meeting, the idea of regular annual tax increases should be considered like the steady 5% increases applied to water and sewer fees.
Commissioner of the Revenue Bradley Powers said that he doesn’t want to see tax rates continually climb. With more regular audits and procedures, he said, more taxes are collected now.
Personnel
At their last meeting in August, the supervisors decided to hold off on the vast majority of staff raises until January when the tax revenue should bolster cash flow.
The county has grappled with raises for months. The tentative state budget proposed for this fiscal year put raises at 2%. That’s what the county based its budget on. Then, in late June, the state legislator and Governor OK’d a budget with a 3.5% raise.
About 18 county employees are fully paid by the state’s compensation board. Some other salaries are partially reimbursed by the comp board. Others are fully county funded. However, the supervisors have tried to treat them all equally.
As county administration is trying to hold the line on replacing staffers who retire or leave to take other jobs, the question of job cuts has been introduced.
In an earlier Budget Committee meeting, according to minutes, Burkett told the group “that, in his opinion, the County may not be able to avoid layoffs and that layoffs may ultimately be the only option.”
However, members of the Board of Supervisors want that measure to be a last resort.
At the Aug. 27 supervisors meeting, Supervisor Jason Parris said it doesn’t help the county to cut jobs. That move, he said, leaves the county with unemployed citizens.
Cutting jobs or reducing schools funding shouldn’t be considered, he said. However, Parris emphasized that the county “should be scrutinizing every cent.”
At last Thursday’s Budget Committee meeting, Supervisor Courtney Widener said, “We’ll get through this.”
Officials noted that other Southwest Virginia localities are facing similar circumstances and that it typically requires a multi-year approach to address such situations.
Widener and Board Chair Charlie Atkins concurred, “Everybody needs to be in on the discussion.”
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Smyth man accused of forging military document
Michael Duane Hoff
A Smyth County man has been accused of forging a federal document to back up his claim that he was military veteran. The suspect was trying to prove assertions he made to Smyth County Recovery Court.
According to Smyth County Circuit Court records, earlier this year Michael Duane Hoff was facing a felony drug possession and probation violation charges. On April 16, he pled guilty and was given the opportunity to take part in the Recovery Court program, which is an alternative to incarceration and helps offenders confront and manage their addiction.
According to an Aug. 31 criminal complaint, Hoff told the Recovery Court team, including Judge Deanis Simmons, that he was an honorably discharged U.S. Army veteran who had served an Army Ranger. U.S. Army Rangers are considered to be an elite infantry and special operations unit.
“In an effort to determine whether Mr. Hoff was eligible for additional veterans’ benefits, treatment, or support services,” the Recovery Court director asked for a copy of Hoff’s DD Form 214, “the official military document reflecting a service member’s release or discharge from active duty. Mr. Hoff was reminded on multiple occasions to provide this document. Ultimately, Judge Simmons ordered Mr. Hoff to produce his DD-214 on or before 14 August 2026.”
Hoff submitted a document. In the complaint, the Recovery Court director said she “observed irregularities that caused her to believe the document had been altered.” She then “conducted an internet search and located what appeared to be an identical copy of the DD-214 produced by Mr. Hoff. The document located online bore the name of a different individual. Comparison of the two documents revealed that the original veteran’s name appeared to have been removed or obscured and the name of ‘Michael Duane Hoff’ inserted in its place on the document produced by Mr. Hoff.”
A probation violation report said that the Recovery Court team voted to remove Hoff from the program on Aug. 27. The forgery charges were filed Aug. 31.
The report also said that a special condition of Hoff’s April sentencing “outlined that he would serve a two-year sentence if he failed to complete the Recovery Court Program.”
Online court records indicate that Hoff has previously faced drug distribution charges.
Hoff is currently in the Southwest Virginia Regional Jail in Abingdon.
