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Tazewell supervisors back VRA loan support for Falls Mills PSA upgrade
Summary
The board approved a nonbinding resolution and support agreement to back a Virginia Resources Authority loan for Falls Mills Public Service Authority improvements, covering pump station, force main and manhole rehabilitation work totaling roughly $2.4 million.
The Tazewell County Board of Supervisors approved a resolution on Jan. 7 to back the Falls Mills Public Service Authority (PSA) as it seeks a Virginia Resources Authority (VRA) loan to fund sewer system upgrades.
The board acted after a presentation outlining a financing package for pump station replacement, force-main work and manhole and wet‑well rehabilitation. The PSA plans to issue bonds to cover the project, listed in the presentation at approximately $2,412,414.
Board members heard that VRA requires additional assurance that debt service will be paid if the PSA defaults. The county’s action is a nonbinding “moral obligation” support statement and an authorization for the chairman to execute a support agreement among the board, the PSA and VRA. County counsel told the board the resolution does not itself obligate the county to repay the bonds but provides VRA added assurance when structuring the loan.
The PSA’s capital improvement plan and projected customer fees were described as the primary revenue stream for repaying the debt. Supervisors said they reviewed the PSA’s finances and noted the authority’s past management of multi‑phase capital work.
Supervisor Presley moved to approve the resolution and the related support agreement; the motion passed on a voice vote. The board also authorized the chairman to execute the support agreement per bond counsel’s instructions.
The vote followed discussion of county constraints on directly borrowing for authorities, which would require voter referendum under the Code of Virginia; supervisors said the moral‑obligation approach is a common mechanism to provide lenders additional comfort without issuing county general‑obligation debt.
The PSA will proceed with VRA financing and bond issuance under terms described to the board; the support agreement will be executed by the chairman as authorized.
Ending: County staff and PSA officials will complete required documentation with bond counsel and VRA; supervisors said they expect the work to move forward now that the board has approved the requested support measures.
