PUBLIC HEARING AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date:

Harry F. Atherton, Chairman,

Marshall District Supervisor

September 13, 2007

Staff Lead:

Department:

Vivian McGettigan, Finance Director

Finance

Topic:

A Resolution Authorizing the Issuance of General Obligation School Bonds, Series 2007B, of the County of Fauquier, Virginia, in a Principal Amount Not to Exceed $35,905,000, to be Sold to the Virginia Public School Authority and Providing for the Form and Details Thereof

Topic Description:

In July 2007, the School Board approved a resolution for application to participate in the Virginia Public School Authority’s Pooled Bond Sale scheduled for October 2007 in a Principal Amount Not to Exceed $39,615,000. In August the County filed an application to participate in the Virginia Public School Authority’s Pooled Bond Sale.  The proceeds of the bonds will be used for the construction of Kettle Run High School, Greenville Elementary School and the addition of a second entrance shared by the two schools.  

The higher amount approved by the School Board included preliminary estimates for Greenville Elementary School and the second entrance.  While the public hearing amount has been advertised at the higher estimated amount of $39,615,000, the resolution amount of $35,905,000 represents all budget actions approved by the Board of County Supervisors currently.  Schools’ management have provided a recent update of the second entrance costs which is estimated to require an additional $1,700,000 of funding which may be considered by the Board for budget action and to increase the borrowing resolution.  However the project is still in the initial design phase and there are other realistic sources of funding such as VDOT Revenue Sharing that may offset the need for additional debt financing.  Once bids have been received for the project and other funding sources explored it would be appropriate to consider whether additional debt financing is required.         

In accordance with the provisions of the Code of Virginia, prior to final authorization to issue bonds a public hearing shall be held on the proposed bond issue.  This request is to conduct the public hearing on the issuance of the bonds, and for the Board of Supervisors to adopt a resolution authorizing the issuance of the bonds.

Requested Action of the Board of Supervisors: 

Conduct a public hearing and consider adoption of the attached resolution.  

Financial Impacts Analysis:

A Fall 2006 General Obligation Bond in the amount of $39,615,000 partially funded the construction of Kettle Run High School. The proceeds of the Fall 2007 VPSA bond along with cash funding and the use of bond premium will complete the funding needed for the approved project at a cost of $67,500,000.

A portion of the proceeds will be used to complete a second entrance into the joint property.  This project is in the approved FY 2008 Capital Improvement Plan for a total cost of $3,100,000.

The construction of Greenville Elementary School was approved as part of the FY 2008 Capital Improvement Plan at a cost of $15,918,000.  Additional costs totaling $2,534,102 have been approved through a 7/12/2007 resolution with funding provided through the use of bond premium, bond interest and proffer funds.  The total project cost is $18,452,102. 

This request is to issue bonds for funding needed in the amount not to exceed $35,905,000. The County will incur debt service payments beginning in fiscal year 2009.

Identify any other Departments, Organizations or Individuals that would be affected by this request:

Fauquier County Public Schools
Fauquier County Treasurer's Office
Fauquier County Budget Office
Fauquier County Administration

Attachments: 

1.      Bond Sale Agreement

2.      Proceeds Agreement

3.      Debt Service Schedule