Narrows council approves $500,000 revenue‑anticipation note to cover cash‑flow gap

The Narrows Town Council on Nov. 10 approved a resolution authorizing the issuance of up to $500,000 in revenue‑anticipation debt to address an immediate cash‑flow shortfall.

Austin Sachs of Davenport, introduced to the council as the town’s financial advisor, described the firm’s proposal as a fixed‑rate revenue‑anticipation instrument and said, “Interest rate is 5.29%.” Town staff told the council the borrowing would be used only as needed through the balance of the fiscal year and repaid once anticipated property and personal‑property tax receipts arrive.

Town Manager Terry told the council the municipality expects roughly $750,000 in those tax receipts and that the $500,000 note would provide liquidity now so the town can meet payroll and bills. Terry said staff considered a line of credit but Davenport recommended the revenue‑anticipation note as a simpler solution tied to expected taxes.

Council members discussed prior authorizations for short‑term borrowing and emphasized that the town had limited options after flood‑related expenditures strained reserves. The resolution before the council was introduced as 'authorizing the issue of up to $500,000 principal amount of a revenue anticipation of the town of Dallas, Virginia' and was moved, seconded and approved by roll call.

Votes at a glance: the chair called the roll and the motion carried with the members present voting yes as recorded in the meeting transcript.

What happens next: staff will complete closing documentation and draw on the note only as cash needs arise; the council discussed monitoring FEMA reimbursements and applying proceeds to repay the note when received.