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Consultants outline VRA pooled loan option for $12.5M in Shenandoah County capital projects
Summary
Davenport Public Finance presented options to fund approximately $12.5 million in FY2027 capital projects, including an $4.5 million Fire and Rescue Training Facility; consultants noted the Virginia Resources Authority pooled program allows a 30‑year term for building assets while bank loans typically offer 20 years, with tradeoffs in interest costs.
Davenport Public Finance presented financing options May 26 for Shenandoah County's planned FY2027 capital program totaling about $12.5 million: roughly $8.0 million for county and school operating capital and $4.5 million for a Fire and Rescue Training Facility.
Ben Wilson of Davenport described direct bank loans and the Virginia Resources Authority (VRA) pooled program as viable options. He said VRA would allow the training facility to be financed with a 30-year loan term while banks usually offer 20-year terms; he noted a building of that type has a useful life of at least 30 years but cautioned that longer terms increase cumulative interest costs and that term choices should reflect asset life.
Supervisor Mark Dotson asked whether a 30-year term is unusual for major capital; Wilson said it is not, because lenders consider the asset's useful life when setting terms. Davenport provided estimated debt-service scenarios and timelines for each option for staff consideration; no final financing decision was made at the meeting.
