The Funding Agreement signed
on March 25, 2009, between the County and the Water and
Sanitation Authority provides for long-term financing on the
Vint Hill Farms Wastewater Treatment Plant. On June 11,
2009, a Board resolution authorized the County to enter into
short-term financing to meet cash requirements of ongoing
construction prior to completing permanent financing. The
proceeds from the permanent financing will be used to payoff
the short-term financing and reimburse the County’s Utility
Fund for the initial deposit of $855,000 into an escrow
On the recommendation of
the County’s Financial Advisors, a Request for Proposal for
a bank qualified private placement loan was distributed on
August 13, 2009. The RFP was sent to 18 banks for bids. We
received a strong response and bids from five banks.
Attached is a summary of the bids.
Under the IDA Act, an IDA is
authorized to undertake financings for local governmental
facilities. An IDA lease revenue
note is sold to the
lender and is secured by a financing lease agreement between
the IDA and the County. The County will use the Alice Jane
Child’s Building as collateral for the loan. The County's
payments under the financing lease are subject to annual
appropriation and the lender has remedy of foreclosing on
the leased property if the County does not appropriate funds
to meet the payment schedule.
Resolutions that will be
considered include: a Prime lease between the County and
IDA and a Note Purchase and Lease Agreement Between the
County, the IDA and the purchasing bank and authorization
for the County Administrator and certain County officials to
execute the necessary documents.