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Northampton County approves Phase VI construction contract, backs $6.42 million interim loan and USDA bond order
Summary
The Board awarded the Phase VI water and sewer construction contract to Ralph Hodge and approved a $6,418,000 construction note and related USDA revenue bond order to fund long‑term debt; votes to approve the construction financing passed 4–1 with Commissioner Taylor opposed.
The Northampton County Board of Commissioners voted to award the Phase VI water and sewer construction contract to contractor Ralph Hodge and to authorize short‑term construction financing and a plan to move to USDA long‑term revenue bonds. The Board recorded a 4–1 vote on the construction financing measures, with Commissioner Melvetta Broadnax Taylor opposing.
County financial advisers presented interim financing options and recommended a construction loan from United Community Bank at a locked rate of 4.07 percent. Treasurer advisers and bond counsel explained the two‑step approach: (1) a bond anticipation note to fund construction costs while the project proceeds; and (2) a USDA revenue bond to “take out” the interim loan when long‑term funding is issued. Financial adviser Ted Cole summarized the recommendation and counseled the Board on timing and covenants.
Chair William Ed Martin moved the award to Ralph Hodge after staff and counsel confirmed bid and procurement compliance; Commissioner Kelvin Edwards seconded. The Board then approved the bond anticipation note and the bond order for USDA long‑term financing. Vice Chair Dr. Kelvin Edwards said the project is the county’s largest capital undertaking and urged urgency: “We need to move forward,” he said. Commissioner Taylor said she opposed the financing posture but did not block the contract award.
The Phase VI project has been discussed at multiple meetings and at the Board’s August retreat as the county’s primary wastewater/capital priority; staff presentations emphasized that project readiness and increased project costs made interim financing necessary. The Board later approved a related amendment to the Phase VI project ordinance to reflect updated grant and borrowing totals.
What happens next: county staff will finalize contract documents with the awarded contractor and close the construction note; USDA long‑term financing paperwork will proceed through the bond‑closing process once construction is underway and the USDA loan application is finalized. The Board recorded votes and instructions for staff to return with closing documents and updates.
