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Board endorses moral‑obligation support for Falls Mills PSA borrowing to fund sewer upgrades
Summary
Tazewell supervisors approved a nonbinding ‘moral obligation’ resolution and authorized the chairman to sign a support agreement so the Falls Mills Public Service Authority can proceed with VRA financing for a roughly $2.1 million sewer project.
Tazewell County supervisors voted Jan. 7 to approve a resolution providing nonbinding support to the Falls Mills Public Service Authority (PSA) as it seeks Virginia Resources Authority (VRA) financing for a $2,112,414 capital project.
PSA representatives described work to the pump station, force main replacements, manhole rehabilitation and wet‑well rehabilitation; bond counsel presented documentation to expedite financing. The requested board resolution is a moral‑obligation statement — not a binding county debt — intended to reassure VRA lenders that the PSA’s obligations will be addressed if necessary. Bond counsel explained that if the PSA defaulted in certain circumstances, the VRA could pursue attachments against state appropriations made to the county (for example, compensation board funding), so supervisors asked detailed questions about the PSA’s capital improvement plan and its revenue stream.
Supervisors supporting the resolution cited the PSA’s long‑range planning and existing revenue mechanisms that allocate fees per customer to cover debt service. The board voted to authorize the chairman to execute the support agreement pursuant to bond counsel’s advice. The motion carried.
