Charles City supervisors approve financing package to replace short-term borrowing

After a presentation from financial adviser Davenport, the Charles City County Board of Supervisors voted Oct. 30 to approve resolutions authorizing two financings — a taxable long-term financing (Series 2025A) intended to reimburse prior cash expenditures and replace a revenue anticipation note, and a tax-exempt interim financing (Series 2025B) to fund utility projects.

David Rose of Davenport told the board the county had spent down its fund balance by paying cash for several capital projects and that the recommended financings are meant to restore fiscal stability. “We’re not putting a Band Aid on it. What we’re doing is stitches,” Rose said, arguing the approach replaces short-term borrowing with longer-term amortization and creates flexibility to refinance or prepay without penalty.

Rose and his colleagues described interest-rate scenarios and recommended structures that preserve the county’s ability to prepay. He said Truist Bank submitted the most favorable proposal and that the estimated annual debt service for the new borrowing would be roughly $525,000 under the scenarios discussed. He also said one financing term under consideration would be about 15 years.

Supervisors and residents asked how the county would cover the increased annual debt service and whether the plan would require a tax increase. Rose answered that restoring fund balance and improved budget discipline could offset much of the net cost and that the board’s 2026 budget included roughly $2.1 million intended to rebuild fund balance. He also acknowledged interest-rate and credit approval uncertainties and said the county would pursue contingency planning if Truist declined to provide final credit approval.

Board member Michael Hill moved to approve both financing resolutions and to authorize representatives to execute required documents. The motion passed 2–1: Hill — Aye; Vice Chair Ryan Patterson — Nay; Chair Byron Atkins — Aye.

The board directed staff to proceed with the financing process, pursue Truist credit approval and return to the board as needed. If credit terms change or Truist declines, staff and advisers said they would present alternatives in a subsequent meeting. The board also scheduled a potential timeline to close in early December if credit approval is secured.

Action taken: approval of resolutions authorizing taxable Series 2025A and tax-exempt Series 2025B financings; authorization for designated officials to execute financing documents.