Finance committee reviews borrowing options for $11 million in projects and sends tax‑rate resolution to regular meeting

Pittsylvania County Finance Committee members on Feb. 18 reviewed financing options for several capital projects and agreed to place a tax‑rate resolution on the regular meeting agenda.

County finance staff told the committee the packet lists several projects that may require financing by July 1, 2025: a computer‑aided dispatch (CAD) replacement (reported in the packet as $1,351,007.31), a radio system upgrade (reported as $1,900,000), an estimated courthouse HVAC project (reported as approximately $2.1 million), and a property acquisition and renovation (reported as $2,000,000). Staff also referenced a broadband final payment shown in the packet; the transcript contains a figure presented as “$4,000,001.59” with additional digits in the audio transcript that appear garbled. When aggregated in the packet, staff reported an approximate total financing need in the range of $11 million.

Finance staff recommended the Virginia Resources Authority pooled financing program as the best option for competitive interest rates and said the county would apply in May with proceeds expected in the August timeframe. Staff also described an approach using prior reimbursement resolutions: the county could borrow and then reimburse itself for projects already started and paid from county funds, specifically naming the Moses Building window/HVAC project (started July 1, 2024) and the PATHS building purchase and renovation (completed Oct. 31, 2024). Those reimbursements would replenish county project funds and help cover uncertain items such as the courthouse HVAC and property renovations.

Finance staff cautioned that market conditions and federal uncertainty — including discussions about the debt ceiling and possible changes to tax‑exempt borrowing — weighed in favor of borrowing sooner rather than later. “If you could do it sooner rather than later, then you're not caught up in all of that,” staff said. Staff also noted that if rates fall later, advisors would recommend refinancing opportunities.

The committee discussed the county’s project fund, which staff said contains about $2,000,000 freed up as debt falls off. Under the approach staff outlined, the county would use that project fund and borrow roughly $9,000,005.11 (as presented in the packet) in late summer to cover the listed projects, with the precise financed amount dependent on which projects proceed and final cost estimates.

On the tax rate, staff asked the committee to set the county’s tax rate at the current 56 cents per $100 of assessed value for the upcoming fiscal year, leaving the percentage of relief (tax relief parameters) open because staff did not yet receive the relief figures. Staff expected those figures by March 1. The committee voted 4‑0 to move the tax‑rate resolution to the regular board meeting for final action.

Committee members asked staff to circulate turnover and staffing data previously shared at the budget forum and to keep the board informed about timing for any financing sale so members can weigh interest‑rate risk and project timing.