Smyth County authorizes up to $300,360 bond for Staley Creek sewer repairs

The Smyth County Board of Supervisors voted to authorize a general obligation and water-and-sewer revenue bond of up to $300,360 to finance rehabilitation of the Staley Creek sewer system. The board held a public hearing on Sept. 14 and adopted a formal bond resolution authorizing the county to enter a financing agreement with the Virginia Resources Authority.

The board’s resolution authorizes county officials to finalize details — including the payment schedule and any prepayment terms — and to execute the financing and related funding agreements. The resolution pledges utility revenues from the county’s water and sewer system to pay the bond on parity with existing similar obligations. If utility revenues are insufficient, the county’s full faith and credit tax pledge will cover principal and the financing costs.

County Administrator Shawn Utt and public works staff briefed the board on project needs before the vote. The bond will be used, together with available state grants and loans, to repair lines and other assets identified in the Staley Creek rehabilitation plan. The board instructed staff to proceed with the financing and authorized the county administrator to sign the agreements once counsel and the authority have finalized the documents.

The board also approved related engineering and design contracts for the sewer project, and directed staff to proceed with grant and loan closings already awarded to the county. The county cited the need to act now to preserve public health and protect the wastewater infrastructure that serves the local community. The financing schedule approved by the board contemplates semiannual principal payments and requires the county to provide updated debt payment schedules to the authority.