James City County advisers outline $330 million-plus capital borrowing plan, urge timing strategy

James City County financial advisers and staff updated the Board of Supervisors on proposed capital borrowing that would fund planned projects over a five‑to‑seven year horizon and recommended delaying large borrowings to reduce near‑term budget pressure. The advisers said the county remains in a strong fiscal position and that the planned borrowing — currently estimated at about $330 million — can be affordable if the county follows conservative timing and budgeting practices.

The presentation by David Rose of Davenport & Company and colleague Steven Geiss reviewed recent rating‑agency contacts, the county’s debt capacity and debt‑service projections. Rose said staff and advisers plan to target the market next summer or fall rather than immediately, noting market volatility and the benefit of bringing rating agencies to the locality for first‑hand briefings.

Why it matters: The county’s capital plan supports projects such as a consolidated government center, library work and other infrastructure. How the county times borrowings affects annual debt service and the transfer from the general fund; delaying some borrowings can smooth budget impacts and reduce the interest cost of borrowing money the county does not yet need.

Key details: Davenport told the board the county’s triple‑A ratings were reaffirmed in 2024 and that the county’s policies keep key ratios (debt as a percent of assessed value, debt service as a percent of revenues) well within policy limits. Using conservative rate assumptions, advisers modeled a large borrowing in FY 2027 (about $190 million), followed by additional borrowings in FY 2029 and beyond, and projected a peak debt service of roughly $35.7 million in the early 2030s.

County finance staff, represented in the presentation, said shifting planned FY‑26 borrowings into later years would save roughly $6 million between FY‑26 and FY‑27 and let the county smooth an incremental transfer from the general fund to debt service to about $1.5 million annually over several years. Staff reiterated that the county maintains a debt service reserve fund that would still retain about $8 million after proposed planned uses, equal to roughly 23% of annual debt service and well above the county’s unassigned fund balance policy.

Board response and next steps: Supervisors asked about the advisers’ interest‑rate assumptions — Davenport used a conservative planning rate of 4.5% — and noted recent sales for other local issuers that achieved rates below assumptions. Staff and advisers said the county will continue to monitor markets and may use interim financings (bank market lines) if projects require earlier funding. No formal action was required or taken; advisers and staff said they would return with further details nearer market timing.