Council leans toward internal loan to cover $1.4M in utility interim notes due June 30; finance committee favors option

After a detailed briefing from outside financial advisers, the Middleburg Town Council signaled consensus to use town cash rather than external borrowing to address about $1.4 million in interim utility notes coming due June 30 and to preserve flexibility for pending capital needs.

Consultants told the council the $1.4 million balance is split between roughly $1.1 million in tax-exempt interim financing and about $300,000 in a taxable note. The managers' recommendation, backed by the finance committee, was to pay the $300,000 taxable note off immediately and arrange an internal, formally documented loan from general fund reserves to cover the $1.1 million tax-exempt balance so the town can maintain optionality on future capital planning.

Davenport consultants reviewed two principal options: (1) go to market and convert the interim financing to permanent external debt (and establish a bank line of credit for anticipated 2027-28 capital work) and (2) use general-fund cash to loan the utility fund the needed principal now and hold off on external borrowing until the town had more clarity on the scope…