Case Study: Richmond, VA

Richmond, VA – Davenport has served as the City’s Municipal Advisor for over two decades. We have assisted the City with the development of strategic plans of finance, debt capacity and affordability, debt issuances, economic development projects and long-term financial planning for the City’s general fund and utility enterprise fund credits. Over our twenty+ years of work with the City, we have also pro-actively assisted the City in developing comprehensive credit rating presentations and rating agency interaction that resulted in eleven separate upgrades for both its general obligation and utility revenue bond credit ratings. Our work has also included a thorough evaluation of financial policies that were nearly two decades old, which led to a modernization of key debt and fund balance policy targets.

Case Study: Abingdon, VA

Abingdon, VA – In a relationship spanning nearly three decades, Davenport has helped the town expand its local government economy through strategic economic development. With a regional recreational tourism focused economy, we developed financing models and plans of finance for two multi-purpose sports complexes that complement the Town’s natural and historic attractions and serve as magnets for recreational tourists. Our work also included strategic financing, financial policy development and credit analysis that maintained and enhanced the Town’s credit ratings.

Capital Region Airport Commission, VA (Richmond International Airport)

Capital Region Airport Commission, VA (Richmond International Airport) – For over two decades Davenport has assisted the Commission with comprehensive pro forma budget modeling of its airport enterprise operations. Our work has assisted the Commission in undertaking financings that provided for expansion of its terminal and parking facilities with bond issues under its general airport and passenger facility charge credit structures. We use the model to advise on debt capacity and routinely assist the Commission in assessing its ability to fund future capital with pay-as-you-go equity and/or additional debt. Our customized model includes financial pro-formas of the Commission’s credit structures and provides both debt capacity and debt affordability estimates under a number of different scenarios. We have historically updated our financial model in connection with the Commission’s budget process and more often when demanded by special circumstances.

Photo Credit:
JOE MAHONEY, CC BY-SA 3.0, via Wikimedia Commons

Case Study: City of Bristol, VA

At the beginning of our relationship nearly twenty years ago, Davenport worked with the City on multiple needs, including the development of a plan to reduce its reliance on Tax Anticipation Notes (“TANs”). The City had historically relied on the issuance of TANs up to twice a year to cash flow its operations, which resulted in mid-fiscal year borrowings of nearly $6 million. Davenport’s analysis of the City’s cash flows and annual budgets led to the development of a plan that incorporated a multi-pronged approach to gradually increase its fund balance in order to reduce the City’s reliance on TANs. Our plan included conversion to biannual tax collections, debt restructuring and budget adjustments. In the past three years, the City’s success in increasing its fund balance has resulted in the elimination of the need to borrow TANs.

Photo Credit:
Bristol VA TN Sign, Springfulutopia, via Wikimedia Commons

Virginia Resources Authority

Davenport has served as VRA’s Municipal Advisor since 2008. VRA is a frequent issuer in the market, as they manage a market-based pooled financing program as well as several revolving fund programs. Through our engagement with the Authority, we have helped enhance the marketability of VRA’s bonds, developed credit rating strategies, provided innovative solutions to financial challenges and new programs, and developed specialized quantitative tools to assist the Authority and its borrowers.