AGENDA DATE: 3/18/2026
TITLE:
Resolution Authorizing a Bond Issuance and the Issuance of Refunding Bonds
SUBJECT/PROPOSAL/REQUEST: Approve a financing plan with the Economic Development Authority of Albemarle County to issue revenue bonds to finance certain Public School and County Government improvements, to refinance a portion of the Rivanna Futures property, and to issue revenue refunding bonds to refinance the 2015B Bond Issue.
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Herrick, Ruege, Sumner, Bowman, Greene, Huff, Mitchell
PRESENTER (S): Jacob Sumner and Davenport & Co., Financial Advisors
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The County’s adopted Capital Improvements Plan (CIP) is primarily funded with revenues from borrowed proceeds from the issuance of bonds, which are applied to projects that are eligible to be funded with this revenue. As the CIP is implemented and expenditures are incurred, the County issues bonds to fund the CIP, as authorized by resolutions approved by the Board of Supervisors. For example, between 2010 and 2023, the County undertook eight revenue bond financings through the Economic Development Authority (EDA) and used the proceeds either to reimburse the County or to refinance existing bonds at lower interest rates.
Additionally, the County periodically reviews its outstanding bond issues to compare existing interest rates with current market conditions and identify potential savings. When lower rates are available, the County may issue new bonds and use the proceeds to redeem higher-cost outstanding bonds. This process is known as refunding.
Issuances are completed within the framework of the Board’s approved Financial Management Policies.
The County seeks to request the EDA to issue new tax-exempt revenue bonds (Revenue Bonds) not to exceed $156.55 million, including cost of issuance. The proposed plan for financing would support the following three components:
1. Capital Projects - not to exceed $118.14 million, including cost of issuance,
2. Refinance a Portion of the 2023 Rivanna Station Futures Financing - not to exceed $26.36 million, including cost of issuance, and
3. Refund the Outstanding 2015B Bonds - not to exceed $12.05 million, including cost of issuance. This decision is contingent upon longer-term interest rates maintaining their current levels.
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: Additional details for each component of the proposed plan of financing are outlined below:
• Capital Projects - The $118.14 million, including cost of issuance, would reimburse the County for capital expenditures that are currently appropriated and anticipated to occur by or soon after June 30, 2026.
• Refinance a Portion of the 2023 Rivanna Futures Financing - In 2023, the County financed the purchase of the Rivanna Futures property by issuing the $58,850,000 Public Facility Revenue Notes (Albemarle County Projects) Series 2023B (2023B Notes). It has been determined that $26.36 million, including cost of issuance, of the Rivanna Futures property will be maintained as rural and can be financed with tax-exempt debt. The County seeks to refinance the rural portion of the property by issuing tax-exempt notes and using the proceeds to pay down the taxable 2023B Notes. This will lock interest rates at levels below the taxable 2023B Notes and result in a projected savings of $7.3 million over the life of the debt.
• Refund the Outstanding 2015B Bonds - In Fiscal Year 2015, the County issued a tax-exempt Revenue Bond series through the Economic Development Authority of Albemarle County (EDA) to fund County government and public school projects. 2015B Bonds become callable on June 1, 2025. Under current federal legislation, a bond refunding can retain its tax-exempt status if closing on the refunding bonds occurs within 90 days of the call date. At this time, the County has the opportunity to lock in advantageous long-term interest rates to refinance up to $12.05 million, including cost of issuance, of the existing bonds at lower rates for debt service savings over the remaining term of the bond (next 10 years). This decision to refund is contingent upon longer-term interest rates maintaining their current levels.
Based on the County’s triple-AAA credit ratings, it is expected that the debt would be issued with credit ratings in the high ‘AA’ category, given the appropriation structure of the financing, consistent with past issuances.
The resolution necessary for the Board’s approval to advance this borrowing plan is attached (Attachment A). If the Board adopts the resolution, then:
• On March 17, 2026, the County’s Bond Counsel, Chris Kulp of Hunton Andrews Kurth, LLP, is scheduled to present an overview of the proposed plan of finance to the EDA, which is authorized under state law to assist the County in financing local government facilities and equipment, and will request the EDA to adopt a resolution authorizing the issuance of the Revenue Bonds. If the EDA adopts such a resolution, the EDA will serve as the conduit issuer for such debt
• Upon the EDA’s and Board of Supervisors’ adoption, the EDA will issue debt through a public sale as previously described in a principal amount not to exceed $156.55 million.
• The EDA would then loan the proceeds to the County. The Revenue Bonds will be secured under a master trust agreement and master financing agreement structure, based on documents prepared by Hunton Andrews Kurth LLP, the County’s Bond Counsel. The security for the Revenue Bonds will be the County’s promise, subject to appropriation, to make payments to the EDA to enable it to make debt service payments associated with this debt issuance.
A draft Preliminary Official Statement (POS), which is the offering document to the capital market, and drafts of the related supplemental agreements to the master trust agreement and the master financing agreement are all attached (Attachments B, C, and D), respectively, and available for Board review in the Clerk’s Office.
BUDGET IMPACT: This bond issuance and the future related debt service payments are factored into the County Executive’s Recommended FY 27-31 CIP released on February 25, 2026 and scheduled to be discussed at a budget work session on March 16, 2026. This bond issuance only pertains to projects currently appropriated in FY 26, not new projects that would be appropriated in FY 27 or later.
The refunding of the outstanding 2015B bonds and a portion of the Rivanna Futures property will require amending the FY 26 budget, as FY 26 debt service expenses will increase, funded by related revenues. This action is requested for Board approval at the March 18, 2026 meeting as a separate agenda item and subsequent to action on this agenda item.
RECOMMENDATION:
Staff recommends that the Board adopt the attached Resolution (Attachment A) authorizing the proposed plan of financing through the EDA.
ATTACHMENTS:
A - Bond Issuance Resolution
B - Bond Issuance Draft Preliminary Official Statement
C - Ninth Supplemental Agreement of Trust
D - Eighth Supplemental Financing Agreement