I am pleased to present the annual report of the Virginia Resources Authority ("VRA", "Authority"). This report and its accompanying Comprehensive Annual Financial Report ("CAFR") for the year ending June 30, 2019, is submitted pursuant to the requirements set forth in § 62.1-222 of the Code of Virginia, as amended.

VRA's attached 2019 CAFR sets forth the complete operating and financial statements for the Authority during the fiscal year. As required, an independent certified public accountant has performed an audit of the books and accounts of the Authority and has issued an unqualified opinion with no audit findings or management letter. The CAFR also includes supplemental information relating to the Water Facilities (§ 62.1-227), Water Supply (§ 62.1-236), Dam Safety (§ 10.1-603.23), and the Airports (§ 5.1-30.9) revolving loan funds. In addition, the attached CAFR includes complete financial statements for VRA's signature Virginia Pooled Financing Program.

The Authority was established in 1984 as an independent political subdivision of the Commonwealth to offer an additional source of funding for local infrastructure projects, particularly to provide for safe drinking water, wastewater treatment and solid waste management. Since that time, additional areas of infrastructure investment have been made eligible for financing, reflecting the evolving capital improvement priorities of local governments and the Commonwealth, though the concentration continues to be water, wastewater, transportation, public safety and other core government infrastructure. With a focus on innovative financial solutions, the Authority is able to significantly reduce the cost of financing projects for local government borrowers. Through low-cost, custom tailored financing through the pooled bond program, and through the joint administration of revolving loan programs with state agencies partners, borrowers benefit from shared expenses and a straightforward and customer-friendly loan process. This allows local governments to provide the best services while demonstrating responsible stewardship of public dollars.

During FY19, the VRA Board and staff continued working to enhance the long-term financial health and stability of localities and the Commonwealth. VRA has been able to provide financing alternatives for infrastructure projects in fiscally distressed communities while maintaining its own credit standing and the Commonwealth's moral obligation pledge. At the same time, VRA increased the Authority's Portfolio Risk Management Reserve to provide greater credit enhancement and further protect the state's moral obligation pledge.

In FY19 VRA provided 123 loans and grants totaling over $285 million for capital improvement investment in Virginia communities. VRA also facilitated refunding opportunities providing $10.8 million in net present value debt service savings for 5 localities through the VRA Virginia Pooled Financing Program. VRA delivers value to local governments while maintaining a strong financial position to ensure that the Authority can continue to provide financial solutions for infrastructure projects to improve the health, safety and general welfare of communities in the Commonwealth.

VRA also coordinated the Governor's Infrastructure Financing Conference during FY19, bringing together government and private sector professionals in discussions to help facilitate the planning and delivery of much-needed capital improvement projects across the Commonwealth.

The VRA Board and staff are pleased with the achievements of the Authority and look forward to continuing to work with the Administration and the Legislature in addressing the infrastructure financing needs of Virginia localities.

Sincerely,

/s/ Stephanie L. Hamlett
Executive Director