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Davenport presents $136M five‑year CIP; advisors say county can borrow but will draw reserves
Summary
Davenport Financial Advisors briefed Wayne County commissioners on a five‑year capital improvement plan totaling roughly $136 million, modeling grant funding, pay‑as‑you‑go reserves and potential $30 million in borrowing spread over multiple years; advisors said debt capacity exists but the plan draws down reserves and may require modest revenue adjustments later in the window.
Wayne County received a detailed presentation May 5 from Davenport Financial Advisors outlining a five‑year capital improvement plan and the county’s capacity to fund it.
Ted from Davenport reviewed the county’s bond ratings (Moody’s Aa2, S&P AA), current debt profile (roughly $141 million outstanding, split about $47 million for schools and $97 million for non‑school obligations), and fund balance policy. He said the county maintains a healthy unassigned fund balance above policy targets and that existing debt is generally well structured with fixed rates.
Davenport’s CIP summary listed about $136 million in proposed projects over five years, including a major school project (Brogden Elementary) and airport, public safety, and recurring capital items. The presentation matched that plan with a mix of grant proceeds, restricted sales tax and lottery proceeds for schools, existing pay‑as‑you‑go reserves (roughly $12 million identified), and a modeled borrowing program of about $30 million issued across fiscal years 2028‑2030 (20‑year terms at an assumed 5% rate).
On affordability, Davenport said the county’s current revenue and reserves provide a multi‑year cushion that buys time to phase projects, pursue grants, and refine estimates; but continuing the draft CIP as modeled would draw down capital reserves and create modest shortfalls beginning in FY2029 without new revenue. The firm translated the modeled shortfall into equivalent tax rate impacts: roughly a few pennies on the property tax rate spread over the years if the board chose to fully fund the plan immediately.
Commissioners asked clarifying questions about restricted sales tax and lottery distributions for schools, what portion of Brogden Elementary might be grant‑funded without a local match, and how water/sewer utility borrowing would affect municipal utility rates and lending capacity. Davenport reiterated that utility projects generally must be self‑supporting through rates to satisfy lenders and the Local Government Commission.
What happens next: The presentation was informational; no immediate action was required. Davenport and staff said the CIP will be refined in the budget cycle, with grant outcomes and project prioritization determining how much is debt versus cash funded.
