WORK SESSION AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

Paul S. McCulla, County Administrator

August 13, 2009

Staff Lead:

Department: 

Anthony I. Hooper, Deputy County Administrator

County Administration

Topic: 

A Work Session to Provide an Update on Vint Hill Financing Options

Topic Description:

The staff has continued to work with the County’s Financial Advisor and Bond Counsel to secure permanent financing for the expansion of the Vint Hill Wastewater Treatment Plant.  As a part of the process presentations have been made to the bond rating agencies to provide an update of ratings established in conjunction with the 2006 debt issuance.  The results of this process have been positive with the County’s strong bond ratings affirmed despite the current difficult financial environment.  The reports from two agencies are attached.  A presentation to the third agency is anticipated in the coming weeks.  Copies of materials prepared for the presentations have been previously made available to the Board.

The goal now is to secure permanent financing for the Vint Hill improvements. Interim short term financing was authorized by the Board at the June Board meeting.  Due to the good progress of construction, the staff would like to secure permanent financing by the close of the fiscal year.

There are two primary options for the permanent financing for water and sewer improvements.  One option is to utilize the IDA which is authorized to undertake financing of local governmental facilities.  An IDA lease revenue note that is secured by a financing lease agreement that utilizes a County building as collateral provides an option to secure reasonable rates and terms.  With the assistance of the financial advisor and bond counsel it is planned to seek bids for this bank qualified debt and to have this information available for the Board’s consideration in September.  Our local banks have expressed interest in bidding on this debt offering.  If the County receives favorable bid results, it could proceed to closing in September.  If the results of the bid process are not favorable, the County has the option of participating in the VRA loan pool planned for the Fall.  The Board has previously authorized the application to participate in the Fall offering.  If this option is selected, it will also be recommended that the previous authorization for short term financing be increased to provide sufficient resources until the permanent financing is in place by the end of the calendar year. 

The proposed schedule to implement this plan is attached.

 

Requested Action of the Board of Supervisors: 

Conduct a work session.

Financial Impacts Analysis:

N/A

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

Office of Management and Budget
Finance Office
Treasurer

 

Attachments:

Moody’s Report

Fitch’s Report

Financing Schedule

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