CAPE CHARLES, Va. — The Cape Charles Town Council has authorized the issuance of up to $7.3 million in general obligation bonds to finance construction of the town’s new municipal building and other capital improvement projects.
The council approved the financing ordinance at its regular meeting following a public hearing on the proposed borrowing.
The new municipal building is already under construction. The town’s existing municipal building at 2 Plum St., built in 1930, has been deemed inadequate for staff and residents conducting basic government business. Town officials have been planning a modern facility intended to meet Cape Charles’ municipal needs for years to come.
Under Ordinance 20260916, the town may issue one or more General Obligation Bonds, Series 2026, with a total principal amount not exceeding $7.3 million. The proceeds may be used for the design, construction and equipping of the new municipal building, other town capital projects and costs associated with issuing the debt.
The ordinance sets a maximum interest rate of 4.84% and requires the debt to mature no later than Dec. 31, 2046.
Town officials worked with financial adviser Davenport & Company LLC to evaluate financing options. Davenport recommended using general obligation debt as a way to preserve the town’s existing fund balances for other planned capital needs.
The town considered financing through a Virginia Resources Authority pooled bond sale or through a direct bank loan. The ordinance identifies a Sept. 3 proposal from Webster Public Finance Corporation while also giving town officials authority to select another lender within the financial parameters established by the council.
The council authorized the town manager and mayor, working with the town’s financial adviser, to determine the final amount of principal and interest payments and complete the sale.
As a general obligation bond, the debt is backed by the town’s full faith and credit. The ordinance states that if other legally available funds are not appropriated to make the required payments, the town agrees to levy an annual tax on taxable property sufficient to cover principal, interest and any applicable premium.
The financing approach is intended to allow Cape Charles to move forward with the municipal building while retaining existing cash reserves as the town develops other capital projects.
The ordinance also confirms Sands Anderson PC as the town’s bond counsel and authorizes town officials to complete the agreements and other documents necessary for the financing.
The measure took effect immediately upon passage. A certified copy of the ordinance is to be filed with the clerk of Northampton County Circuit Court.
About the Author
Look’s like Cape Charles is planning ahead. With the potential expansion into Northampton County and more than a Tenfold increase in Territorry and Taxation the new structure will most certainly be useful.
It’s good to plan ahead, I suppose; gives the developers time to make those plan$.
Am just glad I live, (knock on wood), far enough away that won’t happen to me.