A RESOLUTION AUTHORIZING THE COUNTY ADMINISTRATOR, IN ANTICIPATION OF THE COLLECTION OF TAXES AND REVENUES FOR FISCAL YEAR ENDING JUNE 30, 2010, TO ENTER INTO A STANDBY LINE OF CREDIT OF UP TO $1,000,000 TO COVER INITIAL COSTS OF UPGRADING THE VINT HILL SEWER TREATMENT PLANT
WHEREAS, pursuant to the Public Finance Act of 1991, the County of Fauquier, Virginia (the “County”) is authorized to borrow money in anticipation of the collection of taxes and revenues of the County for the fiscal year ending June 30, 2010, and to issue its notes therefor; and
WHEREAS, the Board of Supervisors (the “Board”) of the County and the Fauquier County Water and Sanitation Authority (the “Sanitation Authority”) have entered into a Funding Agreement dated March 25, 2009 (the “Funding Agreement”), related to the Vint Hill Farms Wastewater Treatment Plant Expansion (the “Project”), pursuant to which the County has agreed to make certain payments to the Sanitation Authority in support of the Project; and
WHEREAS, in anticipation of the collection of taxes and revenues for the Fiscal Year ending June 30, 2010, the County desires to enter into a standby line of credit facility of up to $1,000,000 with a financial institution (the “Bank”) and use the proceeds thereof to finance its initial contributions under the Funding Agreement; and
WHEREAS, there has been presented to this meeting the form of a Standby Line of Credit Agreement (the “Agreement”), between the County and the Bank, which the County proposes to execute or approve to carry out the standby line of credit, copies of which instrument shall be filed with the records of the Board.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF FAUQUIER, VIRGINIA:
1. The Board hereby determines that it is necessary and expedient for the County, in anticipation of the collection of taxes and revenues for the County’s fiscal year ending June 30, 2010, to make arrangements for a standby line of credit facility of up to $1,000,000 under which the County may borrow funds to finance its initial contributions under the Funding Agreement. Funds, if any, advanced under the Agreement shall only be used to make payments required by the County under the Funding Agreement in support of the Project.
2. The Board authorizes the County Administrator, in consultation with Davenport & Company LLC, the County’s financial advisor, to choose a financial institution to serve as the Bank and to execute and deliver the Agreement, in substantially the form presented to this meeting; provided, however, that the Agreement shall provide for (a) the County to draw-down and repay from time to time such amounts not to exceed $1,000,000 at any given time, (b) interest to be repaid on any amounts drawn at a fixed or variable interest rate, as negotiated by the County Administrator and the Bank, with an initial rate not to exceed 6.25% per year and (c) any amounts drawn thereunder to be repaid no later than June 30, 2010. Amounts, if any, drawn under the Agreement shall be evidenced by a note of the County.
3. All other actions of officers of the County and the Board in conformity with and in furtherance of the purposes and intent of this Resolution are approved and confirmed. The officers of the County are authorized and directed to execute and deliver all certificates and instruments and to take all such further action as may be considered necessary or desirable in connection with financing the Project.
4. This resolution shall take effect upon July 1, 2009.
A Copy Teste
Paul S. McCulla