CONSENT  AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

Finance Committee

June 11, 2009

Staff Lead:

Department: 

Janet Romanchyk, Acting Finance Director

Finance

 

Topic:  

A Resolution Authorizing a Standby Line of Credit of up to $1,000,000 in Anticipation of a Permanent Financing of the Cost of Upgrades to the Vint Hill Sewer Treatment Plant

 

Topic Description:

The Funding Agreement signed on March 25, 2009 between the County and the Water and Sanitation Authority provides for two installment payments in the amount of $855,000  as construction draws are made from the escrow account. The County has made the first deposit utilizing available cash in the Utility Fund. The escrow account is not permitted to fall below 80% of its original value.  Given the uncertainty of the Authorityís spend down schedule and the current state of the financial market, a line of credit is being established to ensure sufficient funds are available when needed.  This approach also provides flexibility for the County to enter the bond market when most advantageous. The line of credit will be closed with the permanent financing and proceeds from the sale will be used to repay the temporary advance from the Utilities Fund.

Requested Action of the Board of Supervisors: 

Consider adoption of the attached resolution.

Financial Impacts Analysis:

Closing costs estimate - $12,000
Interest cost estimate - $6,000

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

Fauquier County Treasurerís Office
Fauquier County Finance Department

Attachment:

Standby Line of Credit Agreement

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