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Charles City County board authorizes pursuit of $5 million reimbursement financing to restore fund balance
Summary
After a presentation by Davenport financial advisers, the Board of Supervisors voted to direct the county administrator to pursue a plan to refinance prior cash‑funded capital and to issue RFPs for taxable reimbursement financing and interim credit to address utility projects and replenish cash reserves.
The Charles City County Board of Supervisors voted to direct County Administrator Rogers to work with financial advisers Davenport to implement a cash‑restoration plan and to issue requests for proposals for taxable reimbursement financing and interim credit.
Financial adviser David Rose told the board that the county previously used more than $7 million of cash to fund capital projects and he recommended borrowing about $5,000,000 on a 15‑year taxable basis to reimburse those expenditures and restore the unassigned fund balance. He said an additional $2,500,000–$3,000,000 of interim financing could be used to advance utility projects while lower‑cost utility financing and grants are pursued.
"What you're going to see in a few moments is what we'll call a sustainable long term plan to end that use of the RAN," Rose said, referring to the county's emergency revenue anticipation note. He estimated the annual cost of the proposed permanent financing at roughly $500,000 to $550,000 and noted that reimbursements and rebuilt fund balance could generate interest income that should not be counted prematurely toward operating budgets.
County Administrator Rogers updated the board that a court‑ordered forensic audit (Brown Edwards) is underway and that the FY25 annual audit (Robinson, Farmer & Cox) has moved into field work. Rogers said staff revised the budget‑versus‑actual report format to show a fuller accounting of all revenues (including federal and state funds) and committed to providing the board monthly financial reporting.
Davenport's presentation listed several capital projects that were previously cash‑funded, including a fire station, Market 5 and a food pantry; Rose said the county has identified about $7,000,000 of eligible capital expenditures but recommended reimbursing $5,000,000 now rather than the full amount. He also described four imminent utility projects — a Wayside tank (~$3.3M, grant‑funded), Jerusalem project (approx. $5.5M, grant‑funded), Ruthville wastewater plant replacement (~$1.6M, with $500k grant and $1.1M gap) and a government center project (~$4.0M, potential grants) — and urged proceeding now with interim financing where consent orders or deadlines exist.
Board members asked for clearer, itemized project costs and for regular reporting. Rose and Rogers said project grants are in process and that monthly or at least quarterly budget‑versus‑actual reporting would be produced for the board. Mike Hill moved the formal directive that the county administrator work with Davenport to implement the plan and proceed with RFPs for taxable reimbursement financing and interim credit; the motion passed on an aye vote by the board.
Votes at a glance: The board approved the consent agenda earlier in the meeting (which included a resolution to accept a $150,000 grant and appropriate it to the sheriff's FY26 budget) and later voted unanimously to authorize staff to pursue the Davenport RFP and financing plan. No roll call recorded any 'no' votes in the transcript.
The board directed staff to return with formal proposals from the RFP process and scheduled follow‑up consideration at the October 28 board meeting and related EDA actions to close financing ahead of December 1 if proposals align with the plan. The motion directs staff to continue consultations with bond counsel and the county attorney as the RFP and financing steps proceed.
