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Davenport outlines plan to finance $24M YMCA; board told debt ratios remain within policy
Summary
Davenport & Company told the Surry County Board of Supervisors on Aug. 5 that a $24 million financing for a proposed YMCA could be structured through the Virginia Resources Authority, with projected recurring debt service of about $3.1 million and no immediate need to raise the real-estate tax under current budget assumptions.
Davenport & Company financial adviser Kyle Laux told the Surry County Board of Supervisors on Aug. 5 that the county’s planning for a proposed YMCA financing contemplates borrowing $24,000,000 and repaying it over a 20-year term. Laux said the likely financing vehicle is the Virginia Resources Authority pooled program (VPFP), which would let the county access favorable long-term fixed rates with state backing.
“The planning here contemplates borrowing $24,000,000,” Laux said, and he noted an interim $5 million borrowed previously will be repaid prior to permanent financing. Davenport’s analysis projects recurring annual debt service in the neighborhood of $3.1 million and estimated the county’s debt-service-to-revenues ratio would remain below local policy thresholds after the YMCA is included.
Laux walked supervisors through the timeline: applications and refinement of final project costs this summer and early fall, a board resolution and public hearing anticipated at the Sept. 3 meeting, a market sale by VRA in late October when rates will be set, and a projected closing in mid-November. He underscored that VRA will review the county’s finances as part of underwriting.
Supervisors asked for more precise calculations of remaining borrowing capacity and total principal-and-interest across the debt term. Supervisor Seward pressed for detail on capacity once the YMCA debt is added; Laux said he would return with a more precise estimate but reiterated the presentations’ overall conclusion that the county remains within its debt policies. The board did not take action on financing at the meeting; staff and bond counsel will return with final documents in September.
