Nelson County approves up to $25 million in bonds to fund high school renovations

Nelson County supervisors on March 11 approved Resolution R2025-18 authorizing the issuance of up to $25,000,000 in general obligation school bonds to be sold to the Virginia Public School Authority (VPSA) to finance design, renovation, construction and equipping work at Nelson County High School.

The resolution, approved after a public hearing, sets a not-to-exceed principal amount of $25,000,000 and lists an anticipated borrowing amount of about $22,065,327 to cover project costs not covered by the School Construction Assistance Program (SCAP) grant and to finance closing costs and capitalized interest if needed. The resolution also authorizes the county to participate in the State Non-Arbitrage Program (SNAP) and names US Bank Trust Company, N.A., Richmond, as paying agent and bond registrar.

The public hearing was held under the county's authority to issue school bonds pursuant to the Public Finance Act of 1991 (Chapter 26 of Title 15.2, Virginia Code) and related provisions of the Constitution of Virginia governing school debt and refunding bonds. The Nelson County School Board adopted a request resolution on Feb. 20, 2025, asking the board of supervisors to proceed with the bond issuance; notices of the county public hearing were published Feb. 20 and Feb. 27, 2025.

At the hearing, one resident spoke in support. "I think of it as a hub, a community hub there," said Alan Dolores, 75 Wild Orchid Lane, a 21-year Rockfish teacher who retired two years ago, adding, "I'm here to advocate for that." No other members of the public spoke on the proposal.

Key financial and sale parameters included in the adopted resolution: an anticipated purchase amount of approximately $22,065,327 (final amount to be provided to VPSA by April 4, 2025); a maximum annual interest rate not to exceed 5.5 percent; final maturity not to exceed 30 years (no later than July 15, 2054); semiannual interest payments beginning Jan. 15, 2026; principal payments beginning July 15, 2028; and prohibition on redemption or prepayment in whole or in part prior to July 15, 2035. The resolution specifies that bonds may be sold at a purchase price no lower than 95 percent of par and requires execution of the bond sale agreement and related documents.

County officials told the board that the debt service for the project is already incorporated into the county's debt capacity strategy and existing debt service funds, and that no new general-fund revenues are required to cover the debt service. The VPSA spring pooled bond sale timeline noted in the presentation calls for VPSA approval of applicants in mid-March, a county bond sale commitment date of April 4, 2025, bond sale (rate lock) on April 22, 2025, and a tentative closing on May 13, 2025. The resolution also authorizes using bond proceeds, other available funds, or both to refund in full a previously issued Nelson County Economic Development Authority lease revenue bond anticipation (Series 2024A) with a maximum principal amount of $2.5 million.

Before the vote, county staff for financing and bond issuance present at the meeting included Ben Wilson and Gracie Caplis; Paul Jacobson of Sands Anderson, P.C. served as bond counsel; a county staff member identified as Candy delivered the presentation. After the public hearing, a supervisor moved to approve Resolution R2025-18; the motion received a second and the board adopted the resolution by roll-call vote with all members voting yes.

The board also voted to continue the meeting to March 18 at 10 a.m. to complete any remaining business.

The resolution, sale timeline and participation in SNAP are intended to allow the county to comply with federal tax rules and to manage investment and disbursement of bond proceeds during project implementation. The final borrowed amount, interest rate and exact repayment schedule will be set once the VPSA pooled sale is completed and the county confirms final figures to VPSA by the April 4, 2025 commitment date.