CONSENT AGENDA REQUEST

Sponsor: 

Board of Supervisors Meeting Date: 

 Finance Committee

April 8, 2010

Staff Lead:

Department: 

Janet Romanchyk, Director

Finance

Topic: 

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

Topic Description:

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.

Requested Action of the Board of Supervisors: 

Consider adoption of the attached resolution and documents.

Financial Impacts Analysis:

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.

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

Fauquier County Treasurer’s Office
Fauquier County Finance Department
Fauquier County Management and Budget

Attachments:

1. Refunding Resolution

2. Preliminary Official Statement-draft

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