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Board approves financing plan to close out county radio system; Davenport recommends JPMorgan proposal
Summary
Davenport & Company recommended a 15-year fixed-rate loan from JPMorgan Chase to fund the remaining $2.5 million needed for the public-safety radio project; the board approved the financing resolution unanimously and staff will seek IDA and bond-counsel approvals to close the Series 2024 bond.
Jay Allen, associate vice president at Davenport & Company, presented financing recommendations to secure roughly $2.5 million to complete the county’s public-safety radio system.
Davenport said the county received several competitive proposals and recommended JPMorgan Chase’s fixed-rate, 15-year term as the most favorable offer. The recommended structure includes a call provision allowing partial prepayment after two years, which Davenport said preserves flexibility if grant funding or refinancing opportunities arise later.
Allen said the proposed borrowing would be issued under an existing bond indenture; the county would not be required to pledge additional county buildings as collateral. Davenport also noted the county could potentially earn more on temporarily invested bond proceeds than the loan’s interest cost using the Virginia State Non-Arbitrage Program.
Board action: the board voted (roll call) to accept Davenport’s recommendation and to authorize moving forward with the financing resolution as drafted by bond counsel (McGuireWoods); the chair announced the vote was unanimous. Davenport said the timeline anticipates closing on the Series 2024 bond in August so funds are available in time to finish the radio project.
Why it matters: securing the borrowing will allow the county to complete a public-safety communications project that county staff earlier described as near completion but requiring additional funds. The call and prepayment provisions provide the county options should grant funding become available.
