Bedford County approves up to $5 million in bonds to back new 9-1-1 facility

The Bedford County Board of Commissioners voted to approve two companion resolutions authorizing the issuance of up to $5 million in general obligation bonds to finance a new emergency communications (9-1-1) facility. The measures passed with 14 ayes, 0 nos and two abstentions.

The resolutions matter because they permit the county to sell bonds for a new 9-1-1 center while establishing an interlocal agreement under which the emergency communications district will be the primary source of funds to repay the debt.

During discussion the county finance director described the structure as a county-issued general obligation bond with repayment responsibility lying with the emergency communications district. The finance director said the district has saved funds toward the project and that officials had consulted the comptroller’s office and bond counsel on the appropriate structure. He said the district is expected to follow a roughly 20-year amortization schedule and that the bonds will include an eight-year call period, which would allow the district to refinance or retire bonds after that period but would lock in rates at the day of sale. The finance director said the bonds are expected to be sold by competitive public sale and that the preliminary official statement will make clear the district is the primary source of reimbursement.

Commissioner Mark Thomas abstained from both votes, saying, "Because I'm a member of the the, 9 1 1 board, I need to abstain for voting." Commissioner Johnson likewise abstained; the record shows both said they sit on the 9-1-1 board. Other commissioners recorded votes in favor during roll call; the clerk announced final tallies of 14 ayes, 0 nos for each resolution.

The board treated the two measures as a package: Resolution 25-17 served as the initial authorizing resolution to permit issuance of bonds not to exceed $5,000,000, and Resolution 25-18 established terms, sale provisions and a tax levy provision to pay principal and interest if required. Staff said the interlocal agreement between the county and the emergency communications district is included with the documents and that the district will guaranty payments during the amortization period.

No final sale date was set at the meeting; staff said additional paperwork, the preliminary official statement and competitive-sale arrangements will follow.

Next steps are for staff to finalize bond-documents, publish the preliminary official statement and proceed with a public competitive sale under the terms approved by the commission. The board did not give other direction beyond approving the resolutions.