RD753 - Comprehensive Annual Financial Report of the Virginia Resources Authority – A Component Unit of the Commonwealth of Virginia – Year Ended June 30, 2021

Executive Summary:

Herein I present the annual report of the Virginia Resources Authority ("VRA", "Authority"). This report and its accompanying Annual Comprehensive Financial Report ("Annual Report") for the year ended June 30, 2021, is submitted pursuant to the requirements set forth in § 62.1-222 of the Code of Virginia, as amended.

VRA' s attached 2021 Annual Report 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 Annual Report also includes supplemental information relating to the Water Facilities (§ 62.1-227), Water Supply (§ 62.1-236), Airports (§ 5.1-30.9), Dam Safety (§ 10.1-603.23), Virginia Community Flood Preparedness (§ 10.1-603.27), Brownfields Restoration and Economic Redevelopment Assistance (§ 10.1-1237) and Tobacco Region (§ 3.2-3120) revolving loan funds. In addition, the attached Annual Report 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. Safe drinking water, wastewater treatment and solid waste management were areas of particular concern. Since that time, additional areas of infrastructure investment, reflecting the evolving capital improvement priorities of local governments and the Commonwealth, have been made eligible for VRA financing. VRA is able to significantly reduce the cost of financing projects for local government borrowers with low-cost, custom tailored financing through both its pooled bond program and its joint administration of revolving loan programs with state agency partners. VRA local government borrowers benefit from shared expenses and a straightforward and customer-friendly loan process that enables local governments to provide essential services while demonstrating responsible stewardship of public dollars.

During Fiscal Year 2021, the VRA Board and staff continued working to enhance the long-term financial health and stability of localities and the Commonwealth by maintaining its own outstanding credit standing and by preserving the Commonwealth's moral obligation pledge with the added enhancement of a reserve fund. In Fiscal Year 2021 VRA provided 188 loans and grants to 150 different entities totaling $672.4 million of capital improvement investment in Virginia communities. VRA also facilitated refunding opportunities providing $16.5 million in net present value debt service savings for 23 localities through its 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 that improve the health, safety and general welfare of communities in the Commonwealth.

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


/s/ Stephanie L. Hamlett
Executive Director