Board adopts resolution authorizing up to $5 million revenue anticipation note to shore up cash flow

The Smyth County Board of Supervisors voted to adopt a resolution authorizing issuance and sale of a revenue anticipation note (a line of credit) with a maximum principal amount of $5,000,000 to cover potential midyear cash shortfalls for the fiscal year ending June 30, 2027. County staff said the note would be payable from collection of county taxes and pledged the county's full faith and credit for repayment.

S10 (staff member) read language from the resolution, including that the note would be issued "in the maximum principal amount of $5,000,000" and that any note "shall not mature no later than June 30th 2027" and that interest "shall not exceed 5.5%." Board discussion focused on cash-flow mechanics and the scope of drawdowns: Chair (S1) clarified that the county could make multiple drawdowns against the authorized amount rather than a single advance.

Several board members flagged concerns about borrowing to meet operating needs. One supervisor (S5) said the optics troubled him and warned about long-term stewardship: "1% on $5,000,000 is not minimal." County officials responded that the resolution does not require the county to draw the full amount and that drawdowns could be made as needed.

The committee had recommended the resolution; the board completed a roll-call vote to adopt it and recorded the measure as approved. Staff noted the resolution cites Virginia code sections governing revenue anticipation notes and requires that the note mature within one year of issuance.

The board recessed after the vote to continue additional agenda items on the third floor; the resolution authorizes county administrators and the treasurer to accept proposals and finalize terms under the conditions laid out in the adopted document.