Recently, Goochland County completed a refinancing of the Virginia Resources Authority (VRA) Series 2012 Tuckahoe Creek Service District (TCSD) Bonds that will ultimately net $12.1 million in debt service savings for the TCSD. While the refinancing occurred in July 2020, amidst the COVID-19 pandemic, planning for it began in early fall 2019.
The TCSD is a water and sewer service district that was created by the county in 2002 in eastern Goochland to provide water and sewer services to certain areas in the district and to provide a mechanism for payment.
The purpose of the TCSD is to spur business, commercial and industrial growth, as well as economic development within the district, the West Creek Business Park, and the Notch at West Creek.
In September 2019, the Virginia Resources Authority (VRA) and the county’s financial advisor, PFM Financial Advisors, LLC advised the county that, based on current market conditions, the county may realize favorable financing terms for a potential refunding of the VRA Series 2012 (TCSD) Bonds. In November 2019, the Goochland County Board of Supervisors passed a resolution authorizing the issuance of a series of bonds by the county in 2020 if certain targets were met, including a required savings of at least 3 percent.
Market conditions became very favorable in June, and on July 14 the county sold the bonds through VRA and closed on them on July 29.
The county issued $61.3 million in new current interest rate bonds through VRA to partially replace the VRA Series 2012 (TCSD) Bonds. The sale of the bonds to VRA generated proceeds that resulted in net present value debt service savings of $8.5 million or 15.2 percent, well beyond the 3 percent target.
“The strategy and savings on the Tuckahoe Creek Service District bond refinancing exemplifies Goochland County’s commitment to excellence in financial management and stewardship of public funds,” said Susan Lascolette, Chair of the Board of Supervisors. “Being able to accomplish these savings for the county, amidst a global pandemic and challenging economic climate, demonstrates solid financial planning to position the county for future success.”
The 2020 refinancing of the VRA Series 2012 (TCSD) Bonds is the second refinancing of TCSD Bonds. In 2002, the county issued VRA Series 2002 Water and Sewer System Revenue Bonds to finance water and sewer improvement projects in the newly created TCSD. In 2012, the county was able to take advantage of lower interest rates and successfully refinanced the existing 2002 bonds.
For more information and questions on the Tuckahoe Creek Service District, visit https://www.goochlandva.us/Faq.aspx?TID=41.