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Financial adviser: Surry’s $24 million YMCA plan can be financed without raising taxes, advisor says
Summary
Davenport financial adviser told the board the county can finance the proposed $24 million YMCA project using existing fund balances and a planned Virginia Resources Authority loan, and that, under current assumptions, the project would not increase the county tax rate.
Davenport financial adviser Kyle Locks briefed the board on the status of YMCA project financing, saying the project is currently planned at $24 million with a $5 million interim bank loan in place for design. Locks said the county’s low existing debt levels and committed recurring budget dollars give the county capacity to absorb the new financing without raising property tax rates.
"It won't impact your tax rate," Locks said in response to supervisors' questions about fiscal risk. He outlined a conservative planning assumption of a 5% interest rate and a 20‑year repayment term for the permanent financing, and said the county anticipates using the Virginia Resources Authority program to access public credit markets in late summer or fall for permanent financing. Locks also noted that the previously issued $5 million bridge loan would be rolled into the permanent financing; the $24 million figure is the planning estimate for the permanent borrowing, not 24 plus 5.
Board members asked follow‑up questions about timing and reserve policies; staff said they expect specific action requests later in summer once construction cost estimates are final.
