007-02
BOARD OF SUPERVISORS
BOARD OF SUPERVISORS
COUNTY OF FREDERICK, VIRGINIA
RESOLUTION
At a meeting of the Frederick County Board of Supervisors (the "Board of
Supervisors") held on the 4th day of September, 2002, the following resolution was
adopted by a majority ofthe members of the Board of Supervisors by the following roll
call vote, as recorded in the minutes of the meeting:
PRESENT:
VOTE:
Richard C. Shickle, Chairman
W. Harrington Smith, Jr.
Margaret B. Douglas
Sidney A. Reyes
Robert M. Sager
Lynda J. Tyler
Gina A. Forrester
Aye
Aye
Aye
Aye
Absent
Aye
Aye
On motion ofW. Harrington Smith, Jr., seconded by Sidney A. Reyes, which
carried by a vote of 6-0, the following was adopted:
A RESOLUTION AUTHORIZING FREDERICK COUNTY
TO SUBMIT AN APPLICATION TO VPSA FOR $7,800,000
AND TO SCHEDULE A PUBLIC HEARING
WHEREAS, the Board of Supervisors has received a request from the Frederick
County School Board (the "School Board") to contract a debt and issue general obligation
bonds of the County in the maximum amount of$7,800,000 to finance certain capital
improvements for public school purposes (the "Bonds") and to sell such bonds to the
Virginia Public School Authority ("VPSA"); and
WHEREAS, the Board of Supervisors has determined that it may be necessary or
desirable to advance money to pay the costs for such capital projects for public school
purposes (the "Projects") and to reimburse such advances with proceeds of one or more
financings;
Page 1 of 2
Resolution - Board of Supervisors
VPSA Fall 2002 Bond Sale Application ($7,800,000)
NOW, THEREFORE, BE IT RESOLVED BY THE FREDERICK
COUNTY BOARD OF SUPERVISORS:
The Board of Supervisors adopts this declaration of official intent under Treasury
Regulations Section 1.150.2. The Board of Supervisors reasonably expects to reimburse
advances made or to be made by the County or the School Board to pay the costs of
acquiring, constructing and equipping the Projects from the proceeds of the Bonds to be
issued in the maximum amount of$7,800,000.
The County Administrator is authorized and directed to submit an application to
the VPSA in order to sell the Bonds to the VPSA at the Fall 2002 VPSA bond sale.
The County Administrator is authorized to advertise a public hearing to be held on
September 25,2002 on the issuance of the Bonds.
This resolution shall take effect immediately upon its adoption.
Adopted this 4th day of September, 2002.
Board of Supervisors Resolution No.: 007-02
Page 2 of 2
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TO: John Riley, County Administrator
THROUGH: William C. Dean, Ph.D., Superintendent
DATE:
Lisa K. Frye, Director of Finance~o~ Ie
August 29, 2002
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FROM:
SUBJECT:
2002 Fall VPSA Bond Sale and Literary Fund Subsidy Program
It is time again to apply for the cash flow needs from November to May. Our projected cash flow need is
$7,800,000 which includes $6,000,000 for Millbrook High School, $800,000 for James Wood Middle School,
and $1,000,000 for the fourth middle schooL
The traditional Virginia Public School Authority (VPSA) fall bond sale is available to us with application due
by September 3, 2002. In addition, VPSA is offering a subsidy bond issue to fund localities' projects on the
Literary Loan Fund list. Frederick County's application for $4,355,000 specified for Millbrook High School is
on that list. Our placement is at the 20th position and it is uncertain if the available funds offered through the
subsidy will be sufficient to fund all requests up to and including ours.
We are recommending application to participate in both programs with the understanding that if any or all of
the subsidy request is funded, the non-subsidy sale amount will be reduced by the same amount.
The difference in interest rates between the programs equates to approx.imately a $750,000 savings in interest
expense if the full amount of the subsidy request can be funded. Therefore, it is worthy of the application to
participate in both programs.
The school board approved both applications at their meeting on August 20, 2002.
To summarize:
The resolutions included in this packet authorize applications to participate in the bond sales. The subsidy
resolution authorizes application for $4,355,000 specific to Millbrook. The non-subsidy resolution authorizes
application for $7,800,000 to satisfy total projected cash flow needs through May 2003. If the subsidy program
is sufficient to include part or all of the $4,355,000 request, the non-subsidy bond sale amount will be reduced
Thus, total expected increase in debt for the entire fall sale will be $7,800,000.
A roll call vote is required.
Thank you for your consideration
540-662-3888
1415 Amherst Street, Post Office Box 3508, Winchester, V A 22604-2546
FAX 540-722-2788