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CONSENT AGENDA REQUEST |
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Sponsor: |
Board of Supervisors
Meeting Date: |
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Finance Committee |
April 8, 2010 |
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Staff Lead: |
Department:
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Janet Romanchyk, Director |
Finance |
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Topic: |
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A Resolution Providing for
the Issuance and Sale of General Obligation School Refunding
Bonds, Series 2010, of the County of Fauquier, Virginia, in
the Maximum Aggregate Principal Amount of $14,500,000,
Providing for the Form,
Details and Payment Thereof, and Providing for the Refunding
of Certain General Obligation School Bonds of the County |
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Topic Description: |
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In October 2006, the County
sold $39,615,000 of General Obligation Bonds to be used for
the construction and equipping of Kettle Run High School.
The County’s Financial Advisor recently notified the County
of an advance refunding opportunity for the callable portion
of the 2006 GO bond to include the 2017-2022 maturities. The
debt service is payable through 7/1/2026. The refunding of
these bonds is estimated to have an overall anticipated
percentage savings of 3.372% without extending the length
the debt service schedule. The bond sale will not be
completed unless a minimum refunding present value savings
is 3% is achieved.
The refunding is being
accomplished though a negotiated sale given the uncertainty
of the markets. A negotiated sale allows the County and
Underwriter the flexibility to select the best time to enter
the market. The County’s Financial Advisors solicited bids
for underwriting services through an RFP process. BB&T
Capital Markets has been selected as the Senior Manager
based on its low bid, previous experience with the 2006 GO
bond, and local retail investment offices in Fauquier County
providing County residents an easily accessible means to
participate. |
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Requested Action of the
Board of Supervisors:
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Consider adoption of the
attached resolution and documents. |
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Financial Impacts Analysis: |
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Present value savings from
cash flow expected - $424,000. We anticipate receiving 90%
of the savings to reduce debt service in FY 11 – FY 13,
however this is contingent on the final structure and sale
of the bonds. |
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Identify any other
Departments, Organizations or Individuals that would be
affected by this request: |
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Fauquier County Treasurer’s
Office
Fauquier County Finance Department
Fauquier County Management and Budget
Attachments:
1.
Refunding Resolution
2.
Preliminary Official
Statement-draft |