JAMES CITY — James City County is looking to hold back on borrowing funds after its debt-funded capital improvement plan increased to nearly $332 million.
This comes after Davenport & Co., the county’s financial advisor, gave an update to supervisors Tuesday on the five-year plan. During a presentation to national rating agencies last October, the plan was outlined for around $183 million, but later increased based on cost estimates and new project requests, including the $189.5 million proposed government center and its now-$25 million library annex.
To help with the increase, Davenport suggested adjusting the timing of future borrowing. Instead of borrowing in fiscal year 2026, the firm said borrowing $193.3 million in 2027 should be done to fund the first two years of the capital improvement plan. Future borrowings are projected in 2029 for $91.3 million, 2030 for $36 million and 2031 for $6.5 million.
The county has a AAA credit rating affirmed by three credit rating agencies: Moody’s, Standard & Poor’s and Fitch. Despite this, David Rose, the firm’s senior vice president, said the ratings are not certain for the future because of rating agencies changing criteria for local governments over time.
“We’re going to do everything we can to continue to be a AAA, but there’s no guarantee,” Rose said.
On combating inflation, Rose said its not equitable to wait years to start projects. This is due to projects resulting in higher prices compared to standard inflation costs, he said. He suggested starting a “good bulk” of projects during early portions of the five-year period.
Stephen Geisz, Davenport’s vice president, said the county is doing a “very good job” in planning for future capital projects.
James W. Robinson, 757-799-0621, james.robinson@virginiamedia.com
