Board approves up to $10.94 million bond for River Road water transmission; Atlantic Union recommended as lender

Prince George County supervisors voted to authorize up to $10,937,835 in general obligation bonds to finance the River Road water transmission mains and to select Atlantic Union Bank as the recommended lender.

At a public hearing, county staff and Davenport & Company financial adviser Ted Cole described the project and a competitive solicitation process that drew five proposals. Cole said the recommended Atlantic Union proposal offers a competitive fixed rate (3.98% was cited as the indicative rate) and unusually flexible prepayment language. “The recommendation is that we would suggest we move forward with Atlantic Union,” Cole told the board, highlighting prepayment flexibility and that closing could occur before the June 30 deadline.

Cole and staff said bond repayment is planned to begin in fiscal 2027 and that the debt issuance is structured to be accommodated within the utilities budget; according to staff, the issuance will not require a utilities rate increase because principal and interest were anticipated in utility budgets. County utilities staff clarified the utilities department is an enterprise fund supported by connection fees and user rates, not general tax dollars.

At the hearing, multiple residents asked for confirmation that taxpayers would not be liable for the debt. William Steele asked the board to “confirm once again that yes, taxpayers, you are not responsible for this debt.” Staff and the county’s utilities representative responded that users of the water and sewer system would pay the costs through the utility enterprise fund.

After questions about call provisions, timing and how bond proceeds would be deposited and drawn down, a motion to approve the draft resolution to issue the debt and select Atlantic Union passed on roll call with all supervisors voting yes.

Next steps include finalizing documentation with the bank and completing closing steps so the county can reimburse itself for previously expended capital costs related to the River Road transmission mains project.