The staff has continued to
work with the County’s Financial Advisor and Bond Counsel to
secure permanent financing for the expansion of the Vint
Hill Wastewater Treatment Plant. As a part of the process
presentations have been made to the bond rating agencies to
provide an update of ratings established in conjunction with
the 2006 debt issuance. The results of this process have
been positive with the County’s strong bond ratings affirmed
despite the current difficult financial environment. The
reports from two agencies are attached. A presentation to
the third agency is anticipated in the coming weeks. Copies
of materials prepared for the presentations have been
previously made available to the Board.
The goal now is to secure
permanent financing for the Vint Hill improvements. Interim
short term financing was authorized by the Board at the June
Board meeting. Due to the good progress of construction,
the staff would like to secure permanent financing by the
close of the fiscal year.
There are two primary
options for the permanent financing for water and sewer
improvements. One option is to utilize the IDA which is
authorized to undertake financing of local governmental
facilities. An IDA lease revenue note that is secured by a
financing lease agreement that utilizes a County building as
collateral provides an option to secure reasonable rates and
terms. With the assistance of the financial advisor and
bond counsel it is planned to seek bids for this bank
qualified debt and to have this information available for
the Board’s consideration in September. Our local banks
have expressed interest in bidding on this debt offering.
If the County receives favorable bid results, it could
proceed to closing in September. If the results of the bid
process are not favorable, the County has the option of
participating in the VRA loan pool planned for the Fall.
The Board has previously authorized the application to
participate in the Fall offering. If this option is
selected, it will also be recommended that the previous
authorization for short term financing be increased to
provide sufficient resources until the permanent financing
is in place by the end of the calendar year.
The proposed schedule to
implement this plan is attached.