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Board authorizes Davenport‑recommended 20‑year loan for county radio system
Summary
After a Davenport presentation, the board authorized financing for an overdue county radio system, selecting a 20‑year direct bank loan option (Huntington Bank proposal) that uses the equipment as collateral and allows prepayment without penalty; the board voted to authorize resolution form documents to proceed.
Davenport consultants presented financing options and recommended a 20‑year direct bank loan to fund a long‑planned radio system for Nottoway County. Roland Kooch of Davenport told the board the preferred structure offers a competitive interest cost (about 4.1% in the bank proposal), uses the radio equipment as the only collateral, and permits prepayment at par so the county can refinance or extinguish the loan without penalty.
"We feel we've got a very successful direct bank loan opportunity that really is really super flexible," said Roland Kooch, the Davenport consultant. Kooch said the county sought both 15‑ and 20‑year options and intentionally requested the ability to prepay at any time. County staff and the consultant said the option reduces near‑term budget pressure by starting payments in fiscal year 2026.
The board discussed alternatives, including the Virginia Resources Authority (VRA), which would match similar terms but requires real‑estate collateral and carries a 10‑year prepayment lockout. Board member Collins said the Huntington proposal’s flexibility and lack of a deed of trust made it preferable even at a slightly higher interest rate. After questions about whether the assumed $1 million grant had been factored into the financing, the board voted to authorize a resolution in the form of the financing documents recommended by Davenport.
The motion to authorize the financing documents carried on a roll‑call vote after Davenport and staff answered implementation questions and confirmed a target closing window (mid‑October).
