Board schedules public hearing to review PSA ordinance; administrator proposes county oversight of PSA funds

The Russell County Board of Supervisors scheduled a public hearing in July to review and update the Public Service Authority (PSA) ordinance and discussed potential changes to how PSA funds and billing are managed.

County Administrator Lonzo Lester said the PSA currently holds roughly $490,000 in reserve for bonding requirements and suggested modifying the ordinance so those funds would sit in a restricted account in the county treasurer’s office. Lester said such a change would require agreement from the Virginia Resources Authority (VRA) and other lending entities but would keep oversight and excess revenues visible to the county.

Board members and staff discussed alternatives for PSA billing and collection, including continuing PSA billing as a separate invoice or adding a utility-based collection handled by a third party; the board noted prior discussions about a fee structure and that any change should account for existing bond covenants and the PSA’s role. Ben Chaffin was mentioned as assisting staff on the topic.

The board directed staff to place the PSA-ordinance review on the July agenda for a public hearing to consider updates to the ordinance and associated billing or transfer arrangements. Lester said county staff will evaluate covenant and audit implications, and that any movement of restricted funds back to the county would be subject to VRA and other creditor approvals.