AGENDA REQUEST

Sponsor:

Board of Supervisors Meeting Date: 

William G. Downey, Scott District Supervisor

December 9, 2004

Staff Lead:

Department: 

Bryan Tippie, Director

Budget/Finance

Topic: 

A Resolution to Request the Circuit Court to Order a Special Election on the Issuance of General Obligation School Bonds in the Maximum Principal Amount of $39,615,000 and to Authorize Such Bonds

 

Topic Description:

The Fauquier County Debt Referendum Policy requires a referendum be held for all new facility construction projects that exceed $10 million. The School Board has determined that there is an immediate need for a new high school. The cost estimate for the new high school is approximately $50,615,000. The project is expected to be cash funded up to $11,000,000 and debt funded for the balance of $39,615,000.

 

The Board of Supervisors approved a waiver to the County’s Debt Referendum Policy, allowing the referendum to be held in the Spring of 2005. The School Board established a Referendum date of March 15, 2005.

 

On November 22, 2004, the School Board adopted a Resolution requesting the Board of Supervisors to approve a Resolution requesting the Circuit Court to order the election and to place the referendum on the ballot.

 

The wording of the attached resolution was reviewed and approved by the County’s Bond Counsel and the County Attorney. Also attached is a projected time line for the Debt Referendum. No public hearing is required as the referendum serves that purpose.   

Requested Action of the Board of Supervisors: 

Consider adoption of the attached resolution.

Financial Impacts Analysis:

Assuming $11 million in cash is accumulated, the debt service impact is projected to be $4 million annually for 20 years beginning in FY 2008. Annual operating cost is estimated to be $4.6 million beginning in FY 2008.

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

 

Finance Department

Budget Department

School Division

Registrar

County Attorney

Circuit Court

 


 

RESOLUTION

 

 A RESOLUTION TO REQUEST THE CIRCUIT COURT TO ORDER A SPECIAL ELECTION ON THE ISSUANCE OF GENERAL OBLIGATION SCHOOL BONDS IN THE MAXIMUM PRINCIPAL AMOUNT OF $39,615,000 AND TO AUTHORIZE SUCH BONDS

 

WHEREAS, the School Board (the “School Board”) of Fauquier County, Virginia (the “County”), has determined that it is necessary to undertake the acquisition, construction and equipping of a new high school in the County (the “Project”), and that the cost of the Project, together with related financing costs, is estimated to be $50,615,000; and

 

WHEREAS, on November 22, 2004, the School Board adopted a resolution requesting the Fauquier County Board of Supervisors (the “Board of Supervisors”) to determine the advisability of contracting a debt and issuing general obligation school bonds of the County to finance, in part, the costs of the Project and to request the Circuit Court to order a special election on the question of the proposed issuance of such bonds; and

 

WHEREAS, the Board of Supervisors desires to request the ordering of an election on the question of contracting a debt in an amount not to exceed $39,615,000 to finance the costs of the Project; now, therefore, be it

RESOLVED by the Fauquier County Board of Supervisors this 9th day of December, 2004, That the Board does hereby determine that it is necessary and expedient to undertake the Project which will promote the public welfare of the County and its inhabitants; and, be it

RESOLVED    FURTHER, That the Board of Supervisors determines that it is advisable to contract a debt and issue general obligation school bonds of the County in the maximum principal amount of $39,615,000 (the “Bonds”) pursuant to the Public Finance Act of 1991, to provide funds, together with other available funds of the County, to finance the costs of the Project and to pay costs of issuing the Bonds.  Subject to the approval by a majority of the voters of the County at referendum called for such purpose, the issuance of such Bonds be, and is hereby, authorized; and, be it

  RESOLVED FURTHER, That the Bonds shall bear such date or dates, mature at such time or times not exceeding forty years from their dates, bear interest at such rate or rates, be in such denominations and form, be executed in such manner and be sold at such time or times and in such manner as the Board of Supervisors shall hereafter provide by appropriate resolution or resolutions; and, be it

  RESOLVED FURTHER, That the Bonds shall be general obligations of the County for the payment of principal of and premium, if any, and interest on which its full faith and credit shall be irrevocably pledged; and, be it

  RESOLVED FURTHER, That the Board of Supervisors does hereby request the Circuit Court of Fauquier County, Virginia, to order an election to be held pursuant to Sections 15.2-2610 and 15.2-2611 of the Code of Virginia of 1950, as amended, on the question of contracting a debt and issuing the Bonds for such purposes.  The Board of Supervisors hereby requests that the Circuit Court order the ballot question to be worded in substantially the following form:

QUESTION:  Shall the County of Fauquier, Virginia, contract a debt and issue its general obligation school bonds in the maximum amount of Thirty-Nine Million Six Hundred Fifteen Thousand Dollars ($39,615,000) to provide funds, together with other available funds, to acquire, construct and equip a new high school in the County? ; and, it be

      RESOLVED FINALLY, That the Clerk of the Board of Supervisors, in collaboration with the County Attorney, be, and is hereby, authorized and directed to see to the immediate filing of a certified copy of this resolution to be filed with the Circuit Court of Fauquier County, Virginia.


 

Timeline for March 15, 2005 Debt Referendum

 

Schedule

By

Action

Notes

 

Revised:

11/22/2004

School Board

Action Agenda Item: Adopts a resolution requesting the BOS to request the Circuit Court to order an election on the question of contracting a referendum be placed on the ballot

 

 

12/09/2004

Board of Supervisors (BOS)

Acts on the School Board resolution, and adopts a resolution requesting the Circuit Court to order an election on the question of contracting a referendum be placed on the ballot

 

12/14/2004

County Attorney/Bond Counsel

Files certified copies of both resolutions with the Circuit Court (Code Section 15.2-2610, 2640)

 

 

12/20/2004

Circuit Court

Enters an order calling for an election on the question in the March 15, 2005 general election

1

 

12/30/2004

County Attorney/Bond Counsel

Files a request for preclearance of election pursuant to the Voting Rights Act of 1965 with the United States Department of Justice

2

 

03/01/2005

County

Publish a certified copy of the court order calling for the election on the question

3

3/15/2005

Registrar

Election is held

 

 

03/18/2005

Registrar

Canvass of votes is held, and an abstract of votes is filed with the Circuit Court (Code Section 15.2-2611 and 24.2-684)

 

03/23/2005

Circuit Court

Enters an order confirming the election results

 

 

 

Notes:

 

  1. The Circuit Court must enter the order at least 60 days prior to the election.  The date noted allows time for the Judge to take action.
  2. This request must be filed not less than 60 days prior to the election; however, Bond Counsel recommends that it is prudent to file it 90 days prior to the election to allow time to respond to inquiries that may be received from the Department of Justice.
  3. Notice must appear in a newspaper of general circulation at least ten days prior to the election.  Date shown allows time to address issues that may arise with the publication of the notice.