RD254 - Annual Report of the Virginia Resources Authority


Executive Summary:
For over 20 years, the Virginia Resources Authority (“VRA” or the “Authority”) has provided the Commonwealth’s local governments with an essential resource to address the financing of their most critical infrastructure projects.

Maintaining and improving the quality of life for the citizens of the Commonwealth and continuing to move forward with economic development efforts bring to the forefront the need for affordable infrastructure financing. The Board of Directors and staff of the Authority are focused on providing our customers with the most cost-effective financing available from the municipal markets.

VRA’s legislative authority has expanded during recent years to include the financing of public safety, airports, and brownfields remediation projects. During the 2005 Session, the General Assembly further expanded VRA’s project areas to include financing of localities’ transportation projects and infrastructure at federal and former federal facilities.

As Virginia’s premier infrastructure financing resource, the Authority’s professional staff rose to each task with the dedication and commitment that is indicative of the Commonwealth’s high standards that resulted in Virginia being named one of the nation’s Best Managed States.

Fiscal Year 2005 extended the Authority’s recent number of record-setting years, closing the single largest bond transaction in VRA’s history. In June 2005, the Authority issued $188.475 million Clean Water State Revolving Fund Refunding Revenue Bonds generating savings in excess of $6 million for the benefit of certain borrowers through the Virginia Water Facilities Revolving Fund, as well as providing additional funding capacity for the program in general. In addition, the Virginia Pooled Financing Program (VPFP), developed in Fiscal Year 2004, continued to provide Virginia’s local governments with the lowest cost of funds. The VPFP both improves the credit on the bonds, achieving a natural “Aaa” on the senior structure, or 70% of the bonds issued, and significantly reduces the Authority’s use of the Commonwealth’s moral obligation, as only 30% of the bonds issued through the program are backed by the Commonwealth. The VPFP provided combined funding in excess of $115 million through three separate bond transactions to 21 localities saving Virginia’s localities over $7.7 million in interest costs.

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.

Following is the Annual Report of the Virginia Resources Authority, chronicling our accomplishments for our 20th year, and looking ahead to the future.