AGENDA DATE: 2/18/2026
TITLE:
Title
Introduction to the Bond Issuance Process
BODY
SUBJECT/PROPOSAL/REQUEST: This presentation is to inform the Board of Supervisors of the upcoming bond issuance process in advance of Board action that will be requested on March 18, 2026.
ITEM TYPE: Regular Information Item
STAFF CONTACT(S): Sumner, Bowman, Huff, Greene
PRESENTER (S): Andy Bowman
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The County’s Capital Improvement Plan (CIP) is primarily funded through the issuance of bonds, consistent with the Board’s adopted Financial Management Policies that were last updated on November 19, 2025.
As capital projects progress and expenditures occur, the County undertakes periodic bond issuances to provide long-term financing for eligible projects and to maintain alignment with approved CIP cash flows.
At the February 18, 2026 Board of Supervisors meeting, staff will present a brief educational overview of the bond issuance process and highlight the key factors that credit rating agencies consider.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: The issuance of municipal bonds is a coordinated and methodical process involving County staff, the County’s financial advisors (Davenport & Company LLC) and bond counsel (Hunton Andrews Kurth LLP), and the national credit rating agencies, among others. Leading up to any debt issuance, County staff and Davenport work closely together to align the County’s capital needs, financial policies, and long-term repayment considerations, developing a Plan of Finance that supports responsible and sustainable debt management. As the issuance process begins, Hunton prepares the legal and disclosure documents that form the basis of the financing, while Davenport advises on structuring considerations and prepares materials that effectively communicate the County’s financial position and management practices.
Prior to the Bond Issuance, the Board of Supervisors and the Economic Development Authority’s (EDA) Board of Directors will be required to formally approve the Authorizing Resolution(s). At this time, Davenport and County staff will present a detailed Plan of Finance, including the specific borrowing amounts, repayment structure, and policy compliance analysis. This forthcoming presentation will provide the Board with the full financial context necessary to authorize the issuance and advance the financing process.
Finally, a central component of the process is the County’s engagement with the credit rating agencies. Their evaluation of the County’s financial management, economic conditions, reserve levels, debt profile, and governance practices directly influences the County’s overall credit standing and investor confidence. These ratings play a significant role in determining market reception and the interest rates available at the time of sale.
The County has a AAA bond rating by the three leading bond rating agencies-Fitch, Moody’s, and S&P-which represents the highest level of credit rating available. A locality with a AAA credit rating benefits from lower borrowing costs, stronger investor confidence, and greater financial flexibility. This top-tier designation signals exceptional fiscal health and minimal default risk, attracting investors, reducing interest rates on public project bonds, enhancing the area’s reputation for stability, and making the community more appealing to businesses and residents while providing resilience during economic downturns. As of October 2025, only 54 of the 3,000+ counties in the United States have AAA bond ratings by the three leading bond rating agencies.
Key Next Steps:
Ÿ March 17 and March 18: Authorize the financing. The EDA will consider the authorizing resolution and associated financing documents on March 17, followed by the Board of Supervisors' consideration on March 18. At the March 18 Board of Supervisors meeting, staff will request that the Board approve the authorizing resolution.
Ÿ Week of March 23: Conduct rating agency engagement. Based on the financing calendar, rating agency meetings are expected to occur during the week of March 23, during which Davenport and staff will present the County’s credit profile and respond to any follow-up inquiries.
Ÿ Week of April 13: Competitive bond sale. The bond sale is expected to occur during the week of April 13, at which time the County will know the interest rate for the borrowing.
Ÿ Week of May 6: Closing. Close on the financing during the week of May 6, with proceeds made available for authorized project expenditures.
BUDGET IMPACT: Capital projects to be funded by the issuance of bonds are approved annually in the budget and have been appropriated in FY 26. This issuance was anticipated in the Board’s adopted FY 26 - 30 CIP, which will be updated when the County Executive presents an FY 27 Recommended Budget and FY 27 - 31 CIP for the Board’s consideration on February 25.
RECOMMENDATION:
Recommendation
Staff recommends that the Board receive the information provided in the presentation to use throughout the during the bond issuance process.
ATTACHMENTS:
None