Davenport: County's remaining school bonds covered; courthouse would require new revenue

Summary

At a Pender County retreat, Davenport advisers told commissioners the county's credit is strong and dedicated revenues should cover $34M in remaining school general obligation bonds, but adding a proposed $58M courthouse would require new revenue (estimated aggregate need of roughly $27M through FY35 under conservative assumptions).

At a Pender County Board of Commissioners retreat, the county's financial advisers from Davenport said the county's strong credit profile gives it access to the capital markets, but that funding a new courthouse would require additional revenue.

Mitch Pulio, a Davenport adviser, told the board that Pender County carries a Double-A rating (Moody's Aa2, S&P AA) and that the county's financing plan and dedicated debt-service revenues put the county in a position to issue the $34 million remaining in school general obligation authorization without new revenue. "Those dedicated revenues you've put in place cover the rest of this authorization," Pulio said, summarizing Davenport's scenario modeling.

Davenport modeled two scenarios. Under Scenario 1, issuing the $34 million in remaining school GOs at a planning rate of 5%…

Davenport: County's remaining school bonds covered; courthouse would require new revenue

Summary

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