WORK SESSION AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date:

Harry F. Atherton, Chairman, Marshall District

May 17, 2004

Staff Lead:

Department:

Janice Bourne, Director

Finance

Topic:

 

Presentation by the Fauquier County Public Schools on a Request to Build the New High School and Waive the Debt Referendum Requirement

 

Topic Description:

 

On April 29, 2004, the Fauquier County School Board adopted the attached Resolution to build a high school for Fauquier County students.  The Resolution requests the Board of Supervisors to (1) waive the requirement for the debt referendum; (2) authorize the construction of a new high school; and (3) approve the high school project in the Fiscal Year 2006 Capital Improvements Program (CIP). 

 

The Fiscal Year 2004 CIP includes an appropriation in the amount of $2,375,084.  The County has agreed to match this funding, which provides a total of $4,750,168 in cash funding available to begin the project.  Additional funding to begin construction has not been approved.  Based on a March 12, 2004 report from McDonough Bolyard Peck Construction Engineering, the preliminary cost estimate for a new high school is $46,269,093, expressed in 2005 dollars (Executive Summary attached).

 

The School Board has established a need for a third high school with a recommended opening date of August 2007.  To achieve this goal, the project needs to begin without delay.

 

At the request of the County, the Countyís Financial Advisor, Gary Ometer with BB&T Capital Markets, has provided the attached memorandum on the financial implications of the referendum.  He acknowledges that the State does not require a referendum for projects financed through the Virginia Public School Authority (VPSA).  VPSA specifically addresses the issue of a failed referendum in its policies.  In the event of the failed referendum, VPSA will only consider the project for inclusion in the bond pool if (1) the Board of Supervisors and the School Board unanimously approve a resolution stating the project is essential, (2) the Board of Supervisors and School Board approve a resolution by majority vote that the project is essential and at least two years have passed since the failed referendum, or (3) the Virginia Department of Education determines an emergency exists for the project.  The financial advisor also outlines potential benefits from a successful bond referendum in the attached memorandum.

 

Requested Action of the Board of Supervisors:

 

Hold a work session.

 

Financial Impacts Analysis:

 

Cash funding is available to begin this project in the amount of $4,750,168.  Additional cash funding will be evaluated.  Debt service for the balance of the project costs would be incurred beginning in Fiscal Year 2007.

 

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

 

Fauquier County Budget Office

Fauquier County Treasurerís Office

 

Additional Attachments:

 

        School Board Resolutions referenced in the Topic Resolution

-     Resolution Requesting Cash Funding for the New High School

-     Resolution to Establish Secondary Facility Size Requirements

-     Resolution to Establish Outdoor Athletic Facilities at the New High School

-     Resolution to Establish Secondary Career and Technical Education Programs

        Executive Summary of March 12, 2004 Cost Estimate Report prepared by McDonough Bolyard Peck Construction Engineering.  (Full document available upon request.)