RD176 - Annual Report of the Virginia Resources Authority


Executive Summary:
On June 30, 2004, the Virginia Resources Authority completed its 20th year of operations. In that Virginia was one of the first states in the nation to create a bond bank for its localities, VRA’s inception in 1984 reflects the forward thinking and wisdom of the General Assembly to provide affordable alternatives for communities burdened with increasing demands on limited financial resources.

Recognizing the responsibility inherent to the VRA’s founding, the Board and Staff of the Authority seek to continue financial innovation with energy and dedication. From a single loan program with two project areas to 11 lending programs and seven project areas, the Virginia Resources Authority’s growth over its first 20 years has been remarkable: the Authority has loaned over $2.7 billion for 567 infrastructure projects throughout the Commonwealth.

Fiscal Year 2004 proved to be another milestone year for the Board and Staff of the Authority. Breaking its previous record by over $170 million, VRA financed a total of $463,698,556 in infrastructure projects, more dollar volume than any single year in our history. In addition, staff closed the first loan to fund open space preservation, utilizing the expansion in VRA’s enabling legislation passed by the 2003 General Assembly. And, finally, staff closed the first bond issue through the Virginia Pooled Financing Program, an innovative improvement to the predecessor pooled program, and the first in the nation to utilize a senior/subordinate debt structure for local government infrastructure financing. The new VPFP both improves the credit on the bonds, achieving a natural “Aaa” on the senior structure or 70% of the bonds issued, and lessens the Authority’s use of the state’s moral obligation as only 30% of the bonds issued through the program are backed by the Commonwealth. Interest rates to VRA borrowers are lowered in the process, and the VPFP has been well received in the financial community.

The VRA Board and Staff consistently strive to discover new, creative ways to help further Virginia’s environmental, economic development, and public safety goals with a commitment to professionalism and efficiency.