The Pittsylvania County Board of Supervisors adopted a resolution authorizing the Pittsylvania County School Board to apply for state Literary Loan funds to be used for school capital improvements.

The authorization, not to exceed an aggregate principal amount of $26,486,278, was approved at the May 21 Board business meeting and following a public hearing.

With this authorization, the Pittsylvania County School Board plans to make three applications to the Literary Loan Fund of the Commonwealth of Virginia, with the repayment of the loans covered by revenues received from the 1% School Sales Tax. The interest rate on this loan would be at 2%.

The projects included in this authorization are 12 classroom additions at Kentuck Elementary School ($10,792,290); and the replacement of the HVAC systems and windows at Southside and Union Hall elementary schools for $9,388,584 and $6,305,404, respectively. The project costs are estimates.

The 1% School Sales Tax referendum was approved in November 2022 and will remain in effect until February 15, 2042. The revenues from the 1% sales tax, estimated at $3.5 million a year, allow the County to make much-needed capital improvements to its school buildings, to include safety enhancements and mechanical system replacements.

Pittsylvania County began receiving the funds in September 2023 and they can only be used to address new school capital infrastructure needs.

The Literary Fund is a permanent and perpetual school fund established in the Constitution of Virginia, and revenues are derived primarily from criminal fines, fees, forfeitures, unclaimed and escheated property, unclaimed lottery winnings and Literary Fund loan repayments. The Fund provides low-interest loans for school construction, as well as other uses.