Prince George board gives consensus to pursue debt issuance for River Road water projects amid questions about capacity for Southpointe Business Park

County staff told the Board that construction is underway for a transmission main and a 1,000,000-gallon ground storage tank with a 3,000,000-gallon-per-day booster station on River Road, and that engineers estimate the transmission-main project at roughly $10.9 million. At the November 2024 meeting the Board authorized the contract award and a reimbursement resolution; staff now seek consensus to issue debt to reimburse utility cash reserves used during construction.

Financial logistics: Davenport Financial provided a not-to-exceed fee of $75,000 for issuance assistance and Williams Mullen proposed $40,000 for bond counsel; combined issuance services are approximately $115,000. Staff recommended issuing a banking RFP immediately if the Board concurs, advertise a public hearing later in April/May and target a close before June 30.

Board concerns and legal questions: Several supervisors expressed reservations about whether issuing debt would effectively allocate water capacity to the Southpointe Business Park before developers pay connection fees. Board members asked legal counsel to confirm whether the Board has authority to pre-allocate capacity. Staff said the project is already under construction and approximately 40% complete and that borrowing would reimburse accounts that already paid contractors; staff also said issuance would be repaid from the enterprise utility fund, not the general fund.

Board action: The Board recorded consensus from a majority to move forward with issuance preparations, with a request that staff and legal counsel return with clarifying information on allocation authority, payment records to date, and a summary of amounts paid and remaining on the contract.

Why this matters: The borrowing would allow the utilities fund to recoup cash reserves used to keep the projects moving while preserving general-fund flexibility. Supervisors emphasized careful oversight to ensure infrastructure improvements benefit economic development goals without unintended allocation of capacity prior to formal customer commitments.

What’s next: Staff to issue the banking RFP with Davenport’s assistance, prepare advertising for a public hearing, and return with legal analysis on allocation authority plus an update on payouts to date and remaining contract obligations.