Pecoson selects Town Bank for $3M loan for high school HVAC projects

The City of Poquoson is poised to secure a significant financial boost, with plans to borrow up to $3 million for essential projects, including HVAC upgrades at Poquoson High School. During the recent City Council meeting, financial advisors presented competitive bids from various banks, highlighting a favorable interest rate of 4.27% from Town Bank, which is notably lower than the anticipated 5% rate.

Austin Sachs, a financial advisor, emphasized the importance of this borrowing as part of the city's capital improvement program. The process began with a request for proposals sent to local, regional, and national banks, resulting in a range of bids that were reviewed just days before the meeting. The selected Town Bank not only offered the best interest rate but also provided flexible prepayment options, allowing the city to manage its debt effectively.

The council discussed the implications of this loan, which is structured to be fixed over a 15-year period, ensuring budget stability. The financial strategy aims to integrate these payments into the city's existing debt profile without necessitating an increase in taxes.

Next steps include a public hearing and the preparation of an ordinance to officially approve Town Bank as the lender. If all goes as planned, the city anticipates closing the deal by March 12, marking a significant step forward in enhancing local infrastructure while maintaining fiscal responsibility.