CONSENT AGENDA REQUEST           

Sponsor:                                                                 Board of Supervisors Meeting Date:
Chester W. Stribling, Lee District Supervisor                                    September 13, 2007

Staff Lead:                                                                                                     Department:
Catherine M. Heritage, Assistant County Administrator                       County Administration

Topic:

A Resolution Authorizing the County Administrator to Execute a “Letter Of Moral Obligation” on Behalf of Fauquier County Guaranteeing Funding for the Renovation of Catlett Volunteer Fire and Rescue Company by the United States Department of Agriculture (USDA) 

Topic Description:
The Fauquier Volunteer Fire and Rescue Association has requested a “letter of moral obligation” from Fauquier County to guarantee funding to support for the construction of the Catlett Fire Rescue Station for $5,488,750. In December 2005, the Board of Supervisors approved debt funding for the Catlett Fire and Rescue Station by the United States Department of Agriculture (USDA).    

Requested Action of the Board of Supervisors: 
Consider adoption of the attached resolution.

Financial Impacts Analysis:
The fiscal implications of the execution of such a letter, particularly those related to the County’s bond rating, were discussed at length in a Work Session on the afternoon of December 8, 2005, by the Finance Director at the time the first moral obligation letter was approved.   

While the County is not legally obligated to pay the debt service for Catlett Fire Rescue Station’s loan, the County would guarantee the debt service payments of approximately $318,000 per year from the fire levy revenue for the loan.  

Identify any other Departments, Organizations or Individuals that would be affected by this request:
Finance Department
Department of Fire and Emergency Services
Fauquier Volunteer Fire Rescue Association

Attachments:

1.      Letter of Moral Obligation

2.      Fire and Rescue Loan Status, April 2007

Back to Agenda...