Madison County to borrow $5 million

During a time when landing a loan seems close to impossible, Madison County has secured a $5 million line of credit toward its courthouse renovation project. 

Officials recently approved a resolution to go forward with borrowing the money through a commercial paper loan program offered by the Virginia Association of Counties and the Virginia Municipal League finance program.

The money will help pay for the county’s approximately $7 million contract with Warren Flynn Construction Company Inc. The Fredericksburg-based contractor is in charge of the second phase of the courthouse renovation project, which aims to improve safety and security within the 1830s-era structure.
Although the loan’s final interest rate was not established until the expected Nov. 19 closing date – County Administrator Lisa Robertson (Kelley) reported that as of last week the interest rate was 2.6 percent.

“[The rate] can change a little bit. It was 2.5 percent about three, three and a half weeks ago,” she told the board at its regularly scheduled Nov. 12 meeting.
The loan includes about $100,000 in addition to the $5 million to help pay for the project, according to Robertson.

This extra money will cover “transactional costs” required to issue the loan, although these costs will be “nowhere near $100,000,” she told the supervisors.
Through this type of loan, county officials will draw down only the amount needed to pay the contractor each month, rather than borrow the entire sum up front, according to the county administrator.

“If you decide you want to borrow less or you need to borrow less you’re only obligated to the amount we draw down,” she said at the Nov. 12 meeting.
The county’s current plans are to pay back the entire loan in the next five years, according to officials.

At a special joint meeting with the school board earlier this month, Supervisors Chairman Eddie Dean said that officials plan to include a payment in the 2009-2010 fiscal year budget of one-fifth of the loan plus interest. 

A little more than that amount – likely to be approximately $1.025 million – was already included in the current budget for startup construction costs, according to Dean.

“If that stays the same then that amount would be covered without increasing our budget,” he said at the Nov. 5 meeting. 

In late 2007, the county completed the initial $920,000 phase of this project, which officials started planning about a decade ago. The front end of the revamp work included the rehabilitation of a former residence behind the current courthouse (known as the Estes property) to serve as the new commonwealth’s attorney’s office, relocation of nearby utility lines and the creation of the parking lot behind the Madison County Social Services building.

Some Madison County Circuit Court judges had told officials in the past that the courthouse’s previous setup provided opportunities for intimidation and confrontation between defendants, witnesses from opposing sides, the public, jurors and court personnel due to a lack of separate entrances, parking areas, bathrooms and waiting areas.

The second phase of the project is set to be completed in January 2010. Until then, the bottom floor of an office building at 1480 N. Main St. will serve as the temporary home of court trials.

In other matters at the Madison County Board of Supervisors regularly scheduled Nov. 12 meeting, the board:

• Set a public hearing regarding a resolution establishing the Central Virginia Regional Jail authority and the transfer of ownership of the jail property from the five counties it serves – Madison, Orange, Fluvanna, Louisa and Greene – to the newly created authority. The public hearing is expected to take place during the 7:30 p.m. portion of the Tuesday, Dec. 9 meeting, following public comment.

• Heard a report from Facilities and Maintenance Director Ross Shifflett that Waste Management, the company that accepts the county’s trash, will be increasing its rate by about 7.1 percent next year. This rate increase, which Shifflett said is likely due to higher fuel prices, is greater than previous ones and unfortunately the county is “locked” into a 15-year agreement with the company, he said. The facilities and maintenance director added that the transfer station has been receiving less trash than usual. “We’re not sending out near as much tonnage and unfortunately, we’re not bringing in as much revenue either,” he told the board. On a separate topic, Shifflett told the board that officials had not received any complaints about night shooting starting at the shooting range in Shelby. “One lady called the other day and said she was very pleased with the way everything went,” he said.

• Listened to comments from Madison County Emergency Communications Director Robert “Radar” Finks regarding a new countywide automated notification system called CodeRED. The system will allow the county to rapidly send residents recorded voice messages over the phone during emergencies. Finks said that after a few employees receive a brief training, the system should be up and running.

• Voted to allow Madison County Sheriff Erik Weaver to use currently budgeted highway safety funds to purchase upgraded equipment and radar devices for some sheriff’s office vehicles. The county will then be reimbursed by the state for the equipment through a $21,000 grant the sheriff’s office received from the Virginia Department of Motor Vehicles. Weaver also told the supervisors about a $60,000 regional data-sharing grant the county has received that will possibly be used to purchase additional computer equipment. 

• Waived the $76 building fee for construction of the movable stage in front of the gazebo on the Madison County Library’s lawn. 

• Voted to accept a road within the Carpenter’s Ridge subdivision to be included in the state road system.

• Approved a proclamation recognizing National Family Caregivers Month.

• Went into closed session for the stated purpose of discussing personnel matters at Madison County’s dispatch center and animal control office. Supervisors Chairman Eddie Dean requested that Finks and Shifflett join the board during the closed meeting.