Board approves $32.5 million conveyance to Massanutten Water and Sewer Authority, OKs support agreement tied to revenue bond

The Rockingham County Board of Supervisors on May 27 adopted a resolution to sell the County’s rights and interests in the Massanutten community water and wastewater systems to the Massanutten Water and Sewer Authority for $32,500,000 and approved a Support Agreement tied to a proposed taxable Water and Wastewater Revenue Bond, Series 2026, not to exceed $32,800,000.

Supervisor Joel L. Hensley moved to adopt the resolution and Supervisor Matt J. Dale seconded; the motion carried on a roll call vote of 5 to 0. The resolution directs county officials to execute the Support Agreement "substantially in the form attached" and authorizes County representatives to sign related documents necessary to effect the conveyance and financing.

The Support Agreement requires the Authority to notify the County by March 1 each year of any "Annual Deficiency Amount" — the amount by which the Authority reasonably expects revenues to be insufficient to meet debt service, operation and maintenance, and other payments. The County Administrator is to include any such Annual Deficiency Amount in the County budget as a request for appropriation; the Board’s pledge is explicitly non‑binding and described in the agreement as a "moral obligation" and not a lending of the County’s credit.

The resolution states the County acquired the systems by condemnation and intends the Authority to issue bonds to finance project costs and costs of issuance. Atlantic Union Public Finance, Inc. is identified in the minutes as the lender that indicated willingness to purchase the bonds under a term sheet dated April 21, 2026.

The Board rescinded its prior March 11, 2026 resolution on the subject and approved the new resolution to be effective immediately. The action follows a public hearing on the issuance earlier in the process and was recorded in the official minutes.