County to borrow $5 million

By Jane DeGeorge
Eagle Reporter
Published: August 22, 2008

Earlier this summer, workers began carefully dismantling sections of the Madison County Courthouse in preparation for its long-anticipated renovation.
As the second phase of the project gets under way, officials are figuring out the details of a $5 million loan to pay for part of the county’s $6.97 million contract with Warren Flynn Construction Company Inc. of Fredericksburg, the contractor of the project, which aims to improve safety and security within the 1830s-era structure.

At the Madison County Board of Supervisors regularly scheduled Aug. 12 meeting, the supervisors voted to borrow money through a commercial paper loan program offered by the Virginia Association of Counties and the Virginia Municipal League finance program.

The advantages of a five-year loan through this program, compared to a traditional fixed-rate loan, include competitive interest rates – which range between 3-4.5 percent depending on whether a variable or fixed rate is used – and low upfront costs, totaling about $13,500, according to recommendations by Charlottesville-based accounting firm Robinson, Farmer and Cox Associates, which reviewed possible loan options for the project.

In addition, through this program, county officials would be able to draw down only the amount needed to pay the contractor each month rather than borrow the entire sum up front, according to County Administrator Lisa Kelley.

“We’ll only be paying interest as we go along on the actual amounts we borrow,” she told the supervisors.

During the discussion, Supervisor Bob Miller said he had hoped additional loan options would have been provided as information to the board, including one that considered the front end of the project to include the majority of the spending.

At the meeting, the board voted 3-0 to authorize the county administrator to borrow money through the commercial paper program. Supervisors Clark Powers and Bill Crigler were absent from the Aug. 12 meeting.

Officials still need to establish specifics regarding the loan including a payment schedule with the contractor and how they intend to pay the interest, Kelley said at the 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 a new commonwealth’s attorney’s office, relocation of nearby utility lines and the creation of a parking lot behind the Madison County Social Services building.
Some Madison County Circuit Court judges have previously told officials the current courthouse’s setup provides 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 continue for the next 18 months. Throughout this time, 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 Aug. 12 meeting, the board:

• Listened to comments by County Administrator Lisa Kelley that the Purchase of Developments Rights committee is expected to give a report at the next regularly scheduled joint meeting of the supervisors and the planning commission set for 7:30 p.m. Wednesday, Sept. 3 in the auditorium of the County Administration Center. Kelley also told the board that officials have received input from Verizon, Virginia Broadband and Madison County’s building department regarding a draft of a possible wireless communications ordinance.

• OK’d publishing a list of Madison County 2007 delinquent taxpayers. For information, call County Treasurer Stephanie Murray said at (540) 948-4409.

• Heard a report from Madison County Facilities and Recreation Department Director Ross Shifflett regarding monthly gas well monitoring sent to the Virginia Department of Environmental Quality. Gas levels at the gas well – which were previously exceeding DEQ’s standards – are now within the department’s limits, Shifflett said.

• Discussed a request for Madison County to provide an additional $1,500, not included in its current budget, for the Offender Aid and Restoration Jefferson Area Community Corrections group due to an error in the group’s budget regarding state funding. The supervisors requested that the county administrator contact Sheriff Erik Weaver and Commonwealth’s Attorney George Webb for their opinions regarding if approval of this request would be beneficial to the county.

• Listened to comments by Dr. Reinhold Pfaff of Madison Companion Animal Hospital about a Virginia law – which was passed by the General Assembly in 2006 and put into action in 2007 – that requires veterinarians to send a report to the county treasurer when a dog or cat receives a rabies vaccination. The treasurer can then use this information to bill those who have not yet purchased a pet license. Pfaff said he believes the law is unethical and requested that the county send a letter to Madison County’s local state representatives expressing their displeasure with the law, which county officials agreed to do.