HENRY COUNTY, Va. (rbs news now) — The Henry County Public Service Authority (PSA) has improved its debt service coverage ratio (DSCR) over the past decade, according to an audit presented by Creedle, Jones & Associates, P.C.

Kim Jackson, a representative of the auditing firm, shared the fiscal year (FY) 2024 audit results with the PSA Board of Directors during its October meeting.

The DSCR, a key metric for assessing an entity’s ability to repay debts such as loans and bonds, has climbed to 12.61, a 355% increase from its 2.77 ratio in FY2014.

The PSA is required by its master trust agreement with Crestar Bank to maintain a minimum DSCR of 2.5.

The PSA said in a news release that high DSCRs, like theirs, indicate financial health and stability, making it easier to secure loans and favorable terms.

Jackson noted that the strong financial performance positions the PSA well for future borrowing needs and allows for flexibility in maintaining reserves, managing operational expenses, and addressing infrastructure investment needs.

“Fiscal year 2024 continued the trend of positive financial performance by the authority, which is essential for its long-term stability,” Jackson said.

In addition to reviewing the audit, the PSA board addressed these other matters during the meeting:

• Approved the carryover of $18,460,544.76 from the prior budget year to the current budget year for items encumbered during FY24 but not yet completed
• Received monthly reports on finance, construction, maintenance, engineering, safety, treatment and regulatory compliance.

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