By Matt de Simone
The Botetourt County Board of Supervisors is moving forward with a financing plan to fund major public safety improvements, though members signaled they want to reduce the total amount borrowed before final numbers are set.
At its February meeting, the board heard a presentation from a representative of the Virginia Resources Authority (VRA), the state agency that would handle the bond financing, along with an overview from County Administrator Gary Larrowe.
The proposed financing would fund upgrades to the county’s public safety radio communications system and improvements to the Read Mountain Fire Station. It also includes refinancing some existing county debt from 2014 if doing so produces sufficient savings.
The maximum authorization under the resolution allows borrowing up to $43 million, though officials indicated the working project total is closer to $36 million. During discussion, supervisors expressed interest in tightening those numbers further – potentially reducing the borrowing amount to $25 million or less – in an effort to limit long-term debt obligations.
Buchanan Supervisor Linda Rottman questioned whether anticipated funding associated with Google’s presence in the county could be applied toward the projects to reduce the amount borrowed, though her remarks suggested some skepticism about the timing of those funds. Board Chairman Dr. Mac Scothorn responded that those funds are expected to be coming soon.
The financing would be structured through a lease arrangement with VRA rather than as a traditional general obligation bond. Under the plan, VRA would issue bonds and provide the proceeds to the county. The county would then make annual “rental payments” over time that function as debt repayment.
According to the resolution, the financing would carry an interest rate not to exceed 5.5 percent and would mature no later than December 31, 2050.
The proposal also allows for refinancing the county’s 2014 financing lease, provided the move results in at least 3 percent net present value savings. Officials described that provision as a safeguard to ensure refinancing would only proceed if it benefits taxpayers.
Supervisors emphasized the importance of maintaining reliable emergency communications infrastructure and modern public safety facilities, but several members voiced caution about borrowing more than necessary.
Before finalizing the amount, the board agreed to seek firmer cost estimates to determine whether the total borrowing can be reduced. The bonds are tentatively scheduled for sale in late April, though that timeline depends on market conditions.
No final borrowing figure has been set, but the resolution gives county officials authority to move forward once numbers are finalized and approved within the authorized limits.
