Lunenburg County approves up to $4.5 million to finance new emergency radio system

The Lunenburg County Board of Supervisors on Sept. 9 approved financing of up to $4.5 million to install a new countywide emergency radio system and related equipment. Supervisor Alvester Edmonds moved to proceed; Supervisor Mike Hankins seconded, and the motion passed unanimously with five supervisors present and two absent.

The Board selected the “Blended Approach,” a financing option described by Davenport & Company representative R.T. Taylor that begins principal payments in fiscal 2023 and spreads interest to reduce long-term borrowing costs. Administrator Tracy M. Gee was authorized to sign a resolution to pursue lease-purchase financing through the Virginia Resources Authority (VRA) and to execute necessary closing documents.

The resolution adopted by the Board authorizes a Local Lease Acquisition and Financing Agreement and contemplates VRA-issued bonds that would purchase the project assets and lease them back to the County. It sets maximum parameters: principal not to exceed $4,500,000, maturity no later than Dec. 31, 2036, and a “true” interest cost not to exceed 4.00% (exclusive of supplemental interest). The resolution also requires compliance with tax and arbitrage rules and authorizes assignment of certain project contracts and filing of a UCC financing statement to secure the financing.

Officials said the project includes microwave communications equipment, towers, mobile and portable radios and dispatch equipment to be purchased from L3Harris LLC under previously approved contracts. The Board held a voluntary public hearing on the financing; there were no public comments.

Next steps: County officials will finalize terms with VRA and the Trustee, execute the Financing Lease, and return with closing documentation and any statutory filings required by the financing agreements.