Presentation to City of Charlottesville Albemarle-Charlottesville Regional Jail Authority: Jail Renovation Project – Plan of Finance January 17, 2023 Member NYSE|FINRA|SIPC Background  Davenport & Company (“Davenport”), in our capacity as Financial Advisor to the Albemarle- Charlottesville Regional Jail Authority (the “Authority”), is providing the enclosed Plan of Finance Briefing to each Member Jurisdiction with respect to the proposed Jail Renovation Project.  The presentation herein will cover the following topics related to the Two-Part Plan of Finance: – Overview of the Jail Funding Process; – A Timetable and Estimated Cashflow Impact for: – Part 1: The Interim Financing; and – Part 2: The Permanent Financing – The Projected Budgetary/Cashflow Impact to each Member Jurisdiction; and, – Next Steps. January 17, 2023 1 Jail Funding Process  In the Commonwealth of Virginia, regional jails are eligible for a 25% reimbursement of eligible costs for major capital projects.  After the Authority decides to undertake a project (i.e. the proposed Renovation Project), it is required to undertake a Community Based Corrections Plan and Planning Study in order to develop a cost estimate for reimbursement consideration by the Board of Local and Regional Jails.  Following approval by the Board of Local and Regional Jails, the request for the 25% reimbursement will be forwarded to the General Assembly for approval and inclusion in the Governor’s Budget. – Once approved, the 25% reimbursement will be set aside by the Commonwealth and made available once the project is complete and a formal request is made by the Authority.  The Two-Part Plan of Finance is typically undertaken after the Commonwealth’s approval of the 25% reimbursement. The Authority’s reimbursement request has been approved by the Board of Local and Regional Jails and is awaiting approval from the General Assembly. January 17, 2023 2 Two-Part Plan of Finance  The Two-Part Plan of Finance is designed to minimize the incurrence of debt and related interest costs until the Authority has received bids for construction and a firm project cost is known. Part 1: Interim Financing  The Interim Financing provides only what is necessary to complete preliminary design and engineering costs so the project can be bid. Part 2: Permanent Financing/Grant Anticipation Note  After bids are received and Total Project Costs are known, the Permanent Financing is undertaken to fully fund Project Costs not eligible for the 25% reimbursement, and permanently finance the interim financing.  Simultaneously, a Grant Anticipation Note (“GAN”) is undertaken to fund Project Costs eligible for the 25% reimbursement. – The GAN would be paid off prior to maturity with funds provided by the 25% reimbursement once the project is complete. January 17, 2023 3 Key Assumptions - Regional Jail Renovation Project Project Assumptions  Cost estimate provided by Moseley Architects is approximately $49 million. – For the purposes of the analysis herein, we have assumed that $48 million are eligible for the 25% reimbursement by the Commonwealth (approximately $12 million of Project Costs). Local Jurisdiction Contribution Assumptions  The analysis herein allocates projected payments on new debt service based on Inmate Days (i.e. usage of the Jail) – per the amended service agreement.  The projected allocation based on FY 2023 estimates are as follows (according to Inmate Days): Albemarle 45.7% Charlottesville 41.3% Nelson 13.0% January 17, 2023 4 Part 1: Interim Financing – Key Assumptions  The Interim Financing (“2023 BAN”) is sized to provide an amount that would fund pre- development costs (architectural, engineering, and other related costs) in order to prepare the authority for bidding the project. – Upon bidding of the project, the authority will know the exact construction and development costs to be financed for the project. Borrowing Project Costs Borrowed Planning Interest Rate Term 2023 BAN $5 million 4.00% 18 Months  The Interim Financing will be repaid by the Permanent Financing in Part 2 of the Plan of Finance in the Summer of 2024. January 17, 2023 5 Part 1: Interim Financing – Timetable Task Date Davenport provides financial briefing to each Member Jurisdiction. January – March 2023 Davenport distributes RFP (“Request for Proposals”) for Interim Early April 2023 Financing to local, regional and national lending institutions. RFP responses due to Davenport. Late April 2023 Governor/General Assembly approves budget which includes 25% Late April 2023 reimbursement of eligible Project Costs. Davenport presents results of RFP Process for the Interim Financing May 2023 to Member Jurisdictions and Authority Board. Member Jurisdictions and Authority Board approve Interim Financing. May 2023 Select and Award Architect/Engineer contract. June 2023 Close on Interim Financing. June 2023 January 17, 2023 6 Part 2: Permanent Financing/GAN – Key Assumptions  The second part of the Plan of Finance incorporates a Grant Anticipation Note that would be paid off with funds from the Commonwealth, and a Permanent Financing paid back by the Member Jurisdictions wherein: – The Grant Anticipation Note (“2024 GAN”) would fund approximately 25% of eligible Project Costs, and one half of the interest costs eligible for reimbursement by the Commonwealth; and, – Permanent Bonds (“2024 Bonds”) would fund remaining Project Costs and permanently finance the 2023 Bond Anticipation Note.  Approximate amounts for the 2024 Grant Anticipation Note and the 2024 Bonds are provided in the table below: Borrowing Project Costs Borrowed Planning Interest Rate Term 2024 GAN $13.5 million(1) 4.50% 3 Years 27 Years 2024 Bonds $35.5 million(2) 5.50% (2 years interest only; 25 years level debt service) Total $49 million  Upon bidding of the project, the Authority will know the exact Project construction and development costs to be financed. (1) Grant (GAN) from the Commonwealth of Virginia includes a portion of reimbursable interest in addition to the 25% reimbursement of eligible costs. (2) Amount includes permanent financing of 2023 BAN. January 17, 2023 7 Part 2: Permanent Financing/GAN – Timetable Task Date Select and Award Architect/Engineer contract. June 2023 Close on Interim Financing. June 2023 VDOC required Value Engineering on Design. November 2023 Complete Construction Documents/Secure County Design Approvals. March 2024 Advertise for Construction Bids. May 2024 Receive Construction Bids. May 2024 Grant Anticipation Note issued to fund costs eligible for reimbursement; Permanent Financing issued to fund remainder of Project Costs and June – August 2024 permanently finance 2023 BAN. Negotiate Construction Contract. August 2024 Notice to Proceed (Construction). August 2024 Substantially Complete Construction (14 months – to be confirmed). October 2025 Final Completion of Project. November 2025 Repayment of GAN from receipt of Commonwealth Grant. June 2026 January 17, 2023 8 Projected Debt Service & Budgetary/Cashflow Impact Aggregate Projected Debt Service and Budgetary/Cashflow Impact to Member Jurisdictions Proj. Total Part 1: Interest Charlottesville Nelson D.S. Albemarle D.S. Fiscal Proj. 2023 Proj. 2024 Proj. 2024 Member D.S. Allocation Allocation Allocation Only Interim Year BAN D.S. GAN D.S. Bonds D.S. Jurisdiction D.S. Financing 2024 $ 212,000 $ - $ - $ 212,000 $ 87,492 $ 27,539 $ 96,969 2025 - 612,000 1,991,000 2,603,000 1,074,258 338,130 1,190,612 2026 - 612,000 1,991,000 2,603,000 1,074,258 338,130 1,190,612 2027 - - 2,701,000 2,701,000 1,114,703 350,860 1,235,438 Part 2: GAN & 2028 - - 2,696,950 2,696,950 1,113,031 350,334 1,233,585 Permanent 2029 - - 2,700,975 2,700,975 1,114,692 350,857 1,235,426 Financing Interest 2030 - - 2,697,525 2,697,525 1,113,268 350,408 1,233,848 Only Period 2031 - - 2,696,875 2,696,875 1,113,000 350,324 1,233,551 2032 - - 2,698,750 2,698,750 1,113,774 350,568 1,234,408 2033 - - 2,697,875 2,697,875 1,113,413 350,454 1,234,008 2034 - - 2,699,250 2,699,250 1,113,980 350,632 1,234,637 2035 - - 2,697,600 2,697,600 1,113,299 350,418 1,233,882 2036 - - 2,697,925 2,697,925 1,113,434 350,460 1,234,031 2037 - - 2,699,950 2,699,950 1,114,269 350,723 1,234,957 2038 - - 2,698,400 2,698,400 1,113,630 350,522 1,234,248 Part 2: Long-Term 2039 - - 2,698,275 2,698,275 1,113,578 350,506 1,234,191 Full Principal & 2040 - - 2,699,300 2,699,300 1,114,001 350,639 1,234,660 2041 - - 2,696,200 2,696,200 1,112,722 350,236 1,233,242 Interest Payments 2042 - - 2,698,975 2,698,975 1,113,867 350,597 1,234,511 2043 - - 2,697,075 2,697,075 1,113,083 350,350 1,233,642 2044 - - 2,700,500 2,700,500 1,114,496 350,795 1,235,209 2045 - - 2,698,700 2,698,700 1,113,753 350,561 1,234,386 2046 - - 2,696,675 2,696,675 1,112,918 350,298 1,233,459 2047 - - 2,699,150 2,699,150 1,113,939 350,620 1,234,591 2048 - - 2,700,575 2,700,575 1,114,527 350,805 1,235,243 2049 - - 2,700,675 2,700,675 1,114,568 350,818 1,235,289 2050 - - 2,699,175 2,699,175 1,113,949 350,623 1,234,603 2051 - - 2,700,800 2,700,800 1,114,620 350,834 1,235,346 Total $ 212,000 $ 1,224,000 $ 71,451,150 $ 72,887,150 $ 30,080,525 $ 9,468,039 $ 33,338,587 Note: Preliminary, subject to change. Actual results may vary from these estimates. Member Jurisdiction allocations are based on FY 2023 estimates and are subject to change based upon future jail population (i.e. inmate days). January 17, 2023 9 Appendix January 17, 2023 10 Projected Aggregate Sources & Uses 2023 BAN 2024 GAN / 2024 Bonds 2023 BAN 2024 GAN 2024 Bonds Total Sources Sources Par Amount $ 5,300,000 Par Amount $ 13,600,000 $ 36,200,000 $ 49,800,000 Total Sources $ 5,300,000 Total Sources $ 13,600,000 $ 36,200,000 $ 49,800,000 Uses Uses Project Fund $ 5,000,000 Project Fund $ 13,500,000 $ 30,500,000 $ 44,000,000 Capitalized Interest - 2023 BAN Takeout - 5,300,000 5,300,000 Cost of Issuance 300,000 Capitalized Interest - - - Add. Proceeds - Cost of Issuance 100,000 400,000 500,000 Total Uses $ 5,300,000 Add. Proceeds - - - Total Uses $ 13,600,000 $ 36,200,000 $ 49,800,000 Note: Preliminary, subject to change. Actual results may vary from these estimates. January 17, 2023 11 Richmond — Headquarters Courtney E. Rogers Roland M. Kooch One James Center Senior Vice President Senior Vice President 901 East Cary Street, Suite 1100, (804) 697-2902 (804) 697-2906 Richmond, Virginia 23219 crogers@investdavenport.com rkooch@investdavenport.com Telephone: (804) 780-2000 A.J. Allen Stephen G. Geisz Toll-Free: Analyst Associate Vice President (800) 846-6666 E-Mail: (804) 780-2196 (804) 697-2986 info@investdavenport.com ajallen@investdavenport.com sgeisz@investdavenport.com January 17, 2023 12 Disclaimer The U.S. Securities and Exchange Commission (the “SEC”) has clarified that a broker, dealer or municipal securities dealer engaging in municipal advisory activities outside the scope of underwriting a particular issuance of municipal securities should be subject to municipal advisor registration. Davenport & Company LLC (“Davenport”) has registered as a municipal advisor with the SEC. As a registered municipal advisor Davenport may provide advice to a municipal entity or obligated person. 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