Amherst County supervisors pick bank loan option for landfill Cell 2 after financial review

Amherst County supervisors voted to pursue a 15-year bank loan with Truist to finance construction of Landfill Cell 2 and related costs, after receiving a multi-year fiscal review from financial adviser Davenport and discussing options for managing capital needs.

Davenport managing director R.T. Taylor presented an executive summary of a comprehensive financial review that showed operating expenditures growing faster than operating revenues, a concentration of debt related to schools, and an identified capital need pool including the landfill. Taylor said the county is considering borrowing ‘‘not to exceed’’ $5.6 million for Cell 2 but that staff would borrow only the amount needed based on final bids and engineering estimates. He reviewed two bank financing scenarios and recommended a 15-year Truist loan at about 3.99 percent because it reduces near-term debt-service pressure and allows prepayment flexibility.

The review flagged several budget pressures: accelerated operating expenditures in public works, public safety and schools; a fund balance policy below some best-practice benchmarks; and an anticipated reassessment that could raise assessed values (Taylor said an ‘‘average’’ 20 percent reassessment impact was possible). Taylor also said the county’s tax-supported debt is concentrated in school-related borrowing and that, while debt capacity on paper is substantial, debt affordability is tighter through about fiscal 2031.

Resident John A. Marks Jr., who spoke during the public-comment period, urged clarity about how existing obligations would affect the landfill borrowing. He asked whether a previously disclosed $2.5 million gateway-authority loan and an underfunded landfill closure/post-closure fund were reflected in Davenport’s analysis and warned the board that the report’s estimate that the county may need to identify ‘‘up to approximately $9,000,000’’ in resources could imply steep tax pressure.

Taylor and county staff said the gateway/interim authority financing is the service authority’s liability, not county general-fund debt, and that proceeds for Cell 2 would match project need rather than leave the county holding excess cash. Staff and the adviser acknowledged the landfill’s closure/post-closure fund is below the estimated need (Taylor and staff cited a post-closure shortfall of roughly $1.2–$1.3 million against a roughly $5.2 million estimate; staff said available closure/post-closure funds are approximately $3.9 million). County public works staff told the board the landfill has about one year of active airspace before intermediate cover would be required; intermediate cover and engineered management can extend fill life while staff work to shore up closure funds.

Supervisor Adams moved to pursue ‘‘Scenario 2’’ — the 15-year bank note with Truist — to preserve near-term cash flow and return to the board with final financing documents and a resolution on March 18. The motion passed. Supervisors directed staff and Davenport to prepare documents and to continue evaluating tipping fees, potential revenue changes, and options to address the closure/post-closure shortfall.

The board and staff repeatedly stressed they were not approving final loan documents or issuing funds at the meeting; the vote authorized staff to proceed with the recommended structure and to present a financing resolution for formal action at the March 18 meeting.

What’s next: Davenport and county staff will finalize loan documentation, refine the project budget after contractor bids and any final engineering items, and present a formal financing resolution and recommendation for final approval on the board agenda on March 18. Staff also committed to returning with options to address the closure/post-closure funding gap and to incorporating updated tipping-fee and operating assumptions into the FY26 budget process.