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Board directs advertising up to $25 million for water projects; Brickshire tank prioritized
Summary
New Kent County staff advised the board to advertise a 'not to exceed' $25 million borrowing amount for water utility capital projects and set a March 9 public hearing; staff warned that including the Route 249 tank would push potential rate increases from a 4% baseline toward about 8%.
The New Kent County Board of Supervisors on Feb. 9 directed staff to advertise a public hearing with a 'not to exceed' borrowing amount of $25 million for water utility capital projects, a placeholder the county’s financing adviser called 'a safe number' to provide cushion while the board finalizes scope.
Mike Lang, Public Utilities, framed the decision as nonbinding but necessary to meet Virginia Resources Authority scheduling: the March 9 meeting will be the public hearing where the board could later adopt a resolution to borrow within the advertised cap. Lang asked the board to focus on scenarios that included the Brickshire tank project and the Route 249 interconnection.
A finance adviser advising the board said earlier drafts showed borrowing near $23 million when combining Brickshire and Route 249 plus carryforwards; he recommended advertising $25 million so the notice would not require re-advertising if the final approved amount rose slightly.
Board members discussed prioritization. The Berkshire/Ward (Brickshire) tank was identified as the top priority, with an estimated cost of roughly $10.5 million. The Route 249 project was estimated near $5.5 million. Staff said existing carryforwards would still need about $3 million. The adviser cautioned that including Route 249 could push a utility rate increase closer to 8%, up from a 4% baseline in the CIP; without Route 249, the increase could stay nearer 4%.
The board agreed to advertise the $25 million 'not to exceed' amount and to decide final scope at a future meeting; the March 9 meeting was identified as the date for the public hearing and possible action.
