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 the Warrenton Volunteer Fire Company by the United States Department of Agriculture (USDA) 

Topic Description:

The Fauquier Volunteer Fire and Rescue Association has requested a second “letter of moral obligation” from Fauquier County to guarantee funding to support needed renovations at the Warrenton Fire and Rescue Station. A Facilities Use Agreement has been executed for this station.  In December 2005, the Board of County Supervisors approved a total of $3,885,000 for the debt funding for the Warrenton Fire and Rescue Station by the United States Department of Agriculture (USDA).  However, at that time only $3,500,000 was requested to be provided to USDA for the moral obligation letter.   The Warrenton Fire and Rescue Station is requesting that the Board provide the second moral obligation letter in the amount of $385,000.   The total project cost is expected to be $4,300,000 with cash funding of $415,000 from the fire and rescue levy fund.   

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 Warrenton Fire Rescue Station’s loan, the County would guarantee the debt service payments of approximately $224,000 per year from the fire levy revenue for the two loans.  

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 and Rescue Association 

Attachments:

1.      Letter of Moral Obligation

2.      Fire and Rescue Loan Status, April 2007

Back to Agenda...