Nelson County authorizes interim financing to advance DSS building and high‑school renovation

The Nelson County Board of Supervisors on April 9 authorized interim financing to fund initial design and startup costs for two capital projects: a new Department of Social Services facility and renovations to Nelson County High School.

Davenport & Company presented results from an RFP and recommended First National Bank’s drawdown option for two tax‑exempt lease revenue bond anticipation notes — a $2.5 million note for initial high‑school renovation costs and a $1.7 million note for the county’s Social Services project. The board approved Resolution R2024‑28 by a 5–0 roll‑call vote.

Roland Kooch, Davenport’s financial advisor, said the drawdown structure allows the county to borrow on an as‑needed basis and pay interest only on amounts drawn. He outlined the projects: an estimated $25 million renovation of Nelson County High School (with $2.5 million already awarded by grant) and an estimated $9.5 million Social Services building. Davenport’s debt capacity analysis indicates the projects are within the county’s affordability envelope.

Davenport estimated a maximum fixed interest rate of up to 4.7 percent on the notes and highlighted the advantage of preserving county cash placed in short‑term investment pools — Mr. Kooch noted Local Government Investment Pool (LGIP) yields of roughly 5.4 percent at the time of the presentation, creating a reinvestment spread when funds are left in LGIP rather than liquidated at closing. The recommended First National Bank facility allows prepayment in whole or in part without penalty, and a drawdown approach that reduces interest expense compared with fully funded notes.

The board’s authorization directs the Economic Development Authority (EDA) to issue the notes (through the EDA as issuer), and it requires subsequent EDA and School Board approvals of documents and collateral (the draft transaction contemplated use of Tye River Elementary School as collateral during the interim period). Davenport and county staff expected to close by April 30, allowing access to funds for architecture, engineering and early construction‑phase costs.

Ernie Q. Reed moved to approve the financing authorization; Jesse N. Rutherford seconded. The board adopted Resolution R2024‑28, which also authorizes issuance details to be finalized by the chairman or county administrator, and directs payment of issuance costs from note proceeds.

Next steps: the EDA and the School Board are scheduled to consider the financing documents; county staff will track project spending separately for the two notes ahead of permanent financing.