Culpeper supervisors authorize plan to finance up to $112 million for two school projects

The Culpeper County Board of Supervisors voted Feb. 4 to authorize staff to pursue financing not to exceed $112,000,000 for two school construction projects: a modernization of the county middle school and a new elementary school.

Courtney Rogers, senior vice president at Davenport & Company, told the board the county is planning roughly $70 million for the middle‑school project and approximately $42 million for the elementary school. "We're looking at approximately $112,000,000 of capital projects for schools," Rogers said during his presentation.

Rogers said the recommended approach is a public bond sale for the bulk of the borrowing and, if the state opens its Literary Fund ("LIT") loan enrollment period, to seek up to $25 million through that program for the elementary school at a lower rate. He described LIT loans as carrying about a 3% rate versus the roughly 4–4.5% market rate Rogers used in his planning model: the difference could reduce interest costs by an estimated $2–3 million over 20 years if the LIT loan is obtained.

Rogers walked the board through timing and cash‑flow impacts. Under the plan, the county would issue tax‑exempt debt with an initial interest‑only payment in 2026 and principal payments starting in 2027; he said the combined schedule would create a peak near $6 million–$8 million in additional debt service across 2026–2027 depending on market pricing and use of LIT funds. Rogers also flagged a possible refunding of about $26 million in existing callable bonds, which his analysis showed could produce about $650,000 in net present‑value savings spread over the remaining term.

Members stressed timing and affordability. Several supervisors and School Division officials warned that delaying the middle‑school work could worsen overcrowding and force temporary classrooms. School Superintendent Dr. Brads (identified in the meeting transcript as the school superintendent) said the division has already spent design funds and land costs and that nine general contractors had requested full bid packets for the middle‑school project, signaling market interest: "We have 9 active bidders who requested full packets of general contractors," he said.

County staff said the county has roughly $6 million in a capital fund that could be applied to debt service in the near term, but Rogers and staff warned the county will need to manage a shortfall that peaks in 2026–27 depending on the final structure. Board members discussed options to reduce near‑term pressure, including issuing interest‑only debt for an initial period and applying any future data‑center revenues as they become available.

After discussion the board voted to approve the draft resolution authorizing issuance of bonds (a not‑to‑exceed authorization and parameters resolution). The resolution gives staff limited flexibility to pursue the LIT loan if the state program opens; the board will return for final bond documents and sale approval later in the process.

Board Chair called for the question and the motion to approve the draft resolution carried. The financial advisors and bond counsel will return with final financing documents and the county will pursue rating meetings and a competitive sale in the coming weeks.