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Board briefed on $8.9M radio-system contract; county to seek $2–2.5M in financing

May 28, 2024 | Southampton County, Virginia


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Board briefed on $8.9M radio-system contract; county to seek $2–2.5M in financing
Consultants and the county's financial adviser updated the Southampton County Board of Supervisors on May 28 about a joint city-county radio system intended to modernize public-safety communications.

Consultant Cheryl Gittinitz reported that the memorandum of understanding between the county and city has been executed and that the contract was signed on May 20. She said negotiated system changes increased capacity and raised total pricing to about $8.9 million; the county's portion is roughly 67 percent of the cost.

AJ Allen of Davenport & Company said the county currently holds approximately $4.2 million in bond proceeds from a 2022 borrowing (invested in Virginia SNAP) and that the project likely will require an additional $2.0–2.5 million in proceeds, projected to be needed in mid-2025. Davenport recommended a dual-track financing approach that solicits bank proposals while also pursuing the Virginia Resources Authority's fall financing pool, giving the county flexibility and time to secure the lowest overall cost. Using an assumed 5% borrowing rate on $2–2.5 million, Allen said annual debt service would approximate $225,000 (about 1¢ on the real-estate tax rate as presented).

The consultants said they negotiated options to reduce maintenance costs and retain software upgrades while lowering some hardware-refresh elements; they also negotiated generator pricing and optional smartphone "app" access for board members. Board members asked questions about total cost, county share, timing and next steps; staff said solicitation of proposals would begin in early June with a July presentation of proposals to the board and final financing decisions later in the year to match project cash-flow needs.

No final borrowing was approved on May 28; the board indicated support for moving forward with the financing process and directed staff to proceed with solicitation and later review of proposals.

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