Financial advisers tell Caswell County it has capacity to fund capital after near-term debts retire
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Summary
Davenport & Company told the county the general fund and debt profile position Caswell County to adopt a multiyear capital improvement plan; advisers recommended dedicated revenue streams for school capital and showed hypothetical financing capacity under several scenarios.
Davenport & Company, the county—s financial adviser, presented an analysis arguing Caswell County is in a relatively strong fiscal position to adopt a multiyear capital improvement plan if it identifies sustainable revenue sources.
Adviser summary: The presentation, led by Davenport representatives (including Ty), reviewed the county—s general fund performance, fund balance ratios and existing debt service. Davenport noted Caswell—s unassigned fund balance has grown substantially in recent years and that the county—s outstanding debts decline sharply through 2027 as several installments and bond series mature.
Capital funding options: Davenport recommended that the county identify dedicated, recurring revenues for school and county capital—s restricted sales tax for school capital (Articles 40/42) and lottery distributions for PECO/repair funds were highlighted on the school side. The adviser ran models showing a conservative payoff approach that would leave recurring pay-go amounts for maintenance and a complementary debt-financing scenario that could support a multi-million-dollar borrowing for major school projects while remaining within adopted debt-ratio policies.
Near-term needs: Advisers also reviewed a narrower debt plan to finance near-term county needs (ambulance remount, one ambulance and a UHF radio upgrade) with a short-term installment financing timed to audit completion. Davenport said the county—s debt ratios and fund-balance policies should permit moderate financing while keeping leverage low and preserving long-term targets (for example, a 50% 10-year payout target for newly issued debt).
Board direction: Commissioners asked for scenarios and timelines to match projects to funding sources and for staff to return with a proposed capital improvement planning process and project prioritization matrix for future votes.
Taper: Advisers emphasized that the county should update plans annually, tying capital requests to dedicated revenue streams and making funding decisions with projects prioritized by operation impacts and maintenance needs.