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Posted on: June 24, 2022

Cumberland County Successfully Restructures Debt

Press Release 2

For Immediate Release                                                           

 June 24, 2022  

 

Contact: Derek Stamey

County Administrator

Phone: (804) 492-3625

Cell: (804) 892-7428

Email: dstamey@cumberlandcounty.virginia.gov


Cumberland County Successfully Restructures Debt

 Cumberland, VA – On June 24, 2022 Cumberland County closed on a refunding and restructuring of debt in an effort to fund a much-needed radio system upgrade for its public safety departments.  The refunding and restructuring effort successfully carved out a portion of the County’s near-term debt service which will be used to fund the majority of the radio project.  The new debt service will be layered into the County’s existing debt with little to no impact to the County’s annual operating budget and debt capacity.  

 In addition to the successful carve out and funding of the radio system project, Cumberland County was also able to maintain its significant decline in annual debt service beginning in fiscal year 2031.  The refinance of existing utility debt shortened those obligations by eight years from 2050 to 2042, saving the County approximately $580,000 in the process.

 Quick and intense coordination and management by Cumberland County’s administration and staff, along with its financial advisors, allowed the County to take full advantage of favorable conditions right before the recent hike of interest rates. According to the county’s financial advisor, James Sanderson, with Richmond’s Davenport & Company LLC, Cumberland’s refinancing came at a time when interest rates were trending up due to actions taken by the Federal Reserve to control inflation.  “The County had the foresight to engage Davenport in early March and ultimately to authorize the refinancing.  The timing here was critical.”  

 “We are very pleased with the outcome and results of this refinancing,” said Board of Supervisors Chairman Brian Stanley.  “This helps the Board of Supervisors to solve an immediate need, maintains our ability to retire existing debt as scheduled, and saves the County money in the long term.”

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