smithfieldtimes

By Diana McFarland
Smithfield Times News editor
A public hearing on Isle of Wight County’s latest bond issue — $23.5 million — will be held next week.
Unlike most county residents in Virginia, Isle of Wight residents do not have to ability to vote on whether the Board of Supervisors can or cannot issue bonds.
They gave up the right to hold bond referendums more than 20 years ago. Today, the Board can issue bonds with just a public hearing.
The $23.5 million bond issue is expected to pay for the Norfolk water deal, intermodal park improvements, three fire engines, bathrooms at Nike and Heritage parks, the purchase of Sentara medical office and the Blackwater land purchase.
If issued, the bonds would require the county to pay about $8 million in debt service a year through 2019, with the highest amounts coming in 2012, the year the county expects to begin feeling the effects of the loss of International Paper.
International Paper provides about $6 million a year in tax revenue.
The first round of bonds is expected to cover capital projects for 18 months. In addition to the $23,5 million, county officials have identified an additional $31.5 million in capital and utility projects through 2015.
Since 2007, the county’s amount of debt has jumped 45 percent — from $62 million to $89.9 million by June 31, 2009.
In the 1980s, Isle of Wight gave up its right to hold bond referendums in response to an annexation threat by the city of Franklin. It was thought at the time that if a county could quickly provide the same services as a city, it would make it further immune from annexation. Not having to hold bond referendums for debt to add services and infrastructure was seen as a speedy way to do that.
To achieve that end, Isle of Wight acted on a portion of the Virginia Constitution granting it the same bonding rights as cities. As a result, Isle of Wight residents do not have the right to approve, or reject, the issuing of bonds for various capital projects.
The March 24 Board of Supervisors meeting begins at 5 p.m. at the Isle of Wight County courthouse complex.