042-06BOARD OF SUPERVISORS
A RESOLUTION AUTHORIZING FREDERICK COUNTY
TO SUBMIT AN APPLICATION TO VPSA FOR SCHOOL FINANCING
AND TO SCHEDULE A PUBLIC HEARING
WHEREAS, the Board of Supervisors has determined that it is advisable to contract a debt and
issue general obligation bonds of the County in the maximum amount of $6,530,000 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;
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 $6,530,000.
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 Spring 2006 VPSA bond sale.
The County Administrator is authorized to advertise a public hearing to be held on February 22,
2006 on the issuance of the Bonds.
This resolution shall take effect immediately upon its adoption.
Adopted this 8"' day of February, 2006.
Johp~ .Riley, Jr.
Co ty Administrator
Board of Supervisors Resolution No.: 042-06
cc: Cheryl Shiffler, Finance Director
C. William Orndoff, Jr., Treasurer
Dr. William C. Dean, School Superintendent
Lisa Frye, School Finance Director
BOARD OF SUPERVISORS
COUNTY OF FREDERICK
FREDERICK, VIRGINIA
RESOLUTION
At a regular meeting of the Frederick County Board of Supervisors held on the 8th day of
February, 2006, the following resolution was adopted by a majority of the 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 Aye
Bill M. Ewing Aye
Gary W. Dove Aye
Gene E. Fisher Aye
Philip A. Lemieux Aye
Barbara E. Van Osten Aye
Charles S. DeHaven, Jr. Aye
ABSENT:
No one was absent.
Frederick County ('ublic Schools
... to ensure afl students an exeeifent education
D'vectar of Fnance
DATE: January 30, 2006
TO: John R. Riley, County Administrator
THROUGH: William C. Dean, Ph.D., Superinten ell nt ~~-
FROM: Lisa K. Frye, Director of Finance K'~~
fryel~frederidc.kl2.va.us
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SUBJECT: VPSA Spring 2006 Bond Sale Application, Purpose and Associated
Resolutions
The application - Attachment A:
Attached is the application for the spring 2006 bond issue, which has been signed by Bill Dean and needs
to be signed by you. No other signatures are required. The application deadline is February 16, 2006.
Please review and sign the application at your convenience. Please note the project estimates on page 3,
question 2. The expected cost of the 11`~ elementary school ($15,839,000) is the actual project budget.
The expected cost of the replacement Gainesboro ($17,800,000) is the amount estimated for this project
in June 2005. At this time, a better estimate is unknown. As you are aware, once the bids aze received, the
school division will seek a revised project cost and appropriation for the remaining project.
The 1" resolution to authorize the application-Attachment B:
Also attached is the VPSA resolution for the board of supervisors to consider at thew February 8, 2006
meeting. The supervisor's resolution authorizes the application, states its intent to issue bonds, and
authorizes advertisement of a public hearing (Attachment C) on February 22, 2006. This initial resolution
and the notice of public hearing have been e-mailed to your office. As a reminder, the requirement for
advertisement of the hearing is once a week for two consecutive weeks in the same newspaper with the
second publication at least a week before the hearing. Bond counsel recommends advertisement on
February 8~` and February 15'x. if the proposed February 22, 2006 date for public hearing presents too
much difficulty due to the advertising requirement, March 8~' could be an alternative date.
The resolution is for a total of $6,530,000. This amount is based on the estimated cash needed until
November 2006 (the date of the next bond sale). $830,000 of the bond amount is for the final
borrowing on the 11th elementary school. $1,000,000 of the bond amount is for the reimbursement
of expenditures to date and through May for the replacement Gainesboro school project (reference
attached November 9, 2005 Board of Supervisor Resolution). The remaining $4,700,000 is for site
development and construction of the replacement Gaiaesboro elementary school.
The 2"d resolution to authorize the bond debt:
After the public hearing and subsequent action on February 22, 2006, a 2id resolution approving the debt,
as well as the bond sale agreement, can be mailed in time to meet the March 27, 2006 deadline.
Attachmems (3)
pc: William C. Dean, Ph.D., Superintendent
7415 Amherst Street www.frederick.k12.va.us 540.662-3888
P.O. Box 3508 fax 540-722.2788
Winchester, Virginia 22604-2546
ATTACI-A~IENT B
LONG AND INTERMEDIATE-TERM FINANCING APPLICATION
VIRGINIA PUBLIC SCHOOL AUTHORITY
SCHOOL FINANCING BONDS (1997 RESOLUTIONI SERIES 2006 A
GENERAL INFORMATION
1. Name of County/City: Frederick County, Virginia
2. Name and address of County Administrator/City Manager:
John R Riley, Jr.
107 N. Kent Street
Winchester, VA 22601
Telephone: (540) 665-5666
Fax: (540)667-0370
E-mail: i_riley(a)co.frederick.vaus
3. Name and address of School Superintendent:
William C. Dean, Ph.D.
P.O. Box 3508
Winchester, VA 22604
Telephone: (540).662-3888
Fax: (540) 772-2788
E-mail: deanwna.frederick.kl2.va.us
4. Name of Principal Contact: (All further correspondence will be directed to this person unless noted)
John R Riley, Jr. (copy to William C. Dean, Ph.D., Superintendent)
Telephone: (540) 665-5666
Fax: (540) 667-0370
E-mail: jrilev~co.frederick.vaus
Mailing Address: 107 N. Kent Street, Winchester, VA 22601
Hand Delivery Address: same as above
1~FIN~250633.1
5. Bond Counsel:
(firm, attorney, address, telephone, fax & E-mail:)
Gerald K Mayfield
McGuireWoods LLP
901 East Cary Street
Richmond, VA 23219-4030
Telephone: (804) 775-1107
Fax (804) 698-2256
Email: ~ayfield(a,mcguirewoods.com
Note: Localities are required to take all action necessary to procure the services of qualified Bond
Counsel prior m the submission of this application.
PROJECT INFORMATION
THE FOLLOWIlVG SECTION OF THE APPLICATION IS RESERVED FOR STANDARD
REQUESTS FOR FINANCINGS AMORTIZED FROM ELEVEN YEARS AND LONGER
I. Requests for Long-Term Project b"mancu v (Sce page 4 for Intermediate-Term 1'Snancing)
Seclion A - Project Descri~ron
1. Briefly describe the Project(s) and indicate whether the Project(s) will be subject to arty leases or
management or service contracts: (a separate page may be used).
(a) 11 m elementary school -construction
(b) replacement school for Gainesbaro Elementary School
2. Total Expected Costs: (a) $15,839,000
(b) $17,800,000
3. Cost by Project(s) and Phase: (separate page may be used)
Estimated
Project(s) Estimated Estimated Completion
Phase
(a)11~' ele
t ~ Useful Life
$1 Date
men
ary 5,839,000 30+years Fall 2006
{b)GainesboroE.S. $17,800,000 30+yeazs Fall 2007
4. Amount of VPSA financing applied for (proceeds requested): $ 6.530.000
Note: The VPSA can only purchase local sdtool bonds in whole multiples of $5,000. If your actual cost
is not a whole multiple of $5,000, please revise that amount up or down, (e.g., achaal amount $5,032,600
should be revised to either $5,035,000 or $5,030,000). Do not request a greater dollaz amount than you
will reasonably expect to be able to spend.
Minimum proceeds required, if applicable: $_
Maximum authorized par amount: $
Explanation for minimum proceeds requirement:
Note: In order to meet requests for a minimum amount of procceds, such as m connection wiflr the
refunding of a prior obligation, it will be necessary in have sufficiently broad bond issuance authority
to accommodate possible adjustments needed in the paz amount of local school bonds issued at the time
of the VPSA band sale. School and governing body resolutions and notices of public hearing should be
Prepared accordingly.
5. Has the County/City applied for a Literary Fund Loan to fund all or a portion of the Project(s)? (Indicate
whether loan was for the entire cost)
ves X no
If yes, please list amount applied for and date of applicatian.
Amount: $
Date:
Date of Approval from Board of Education if Literary Funds are expected:
Date:
Note: ff fiords are borrowed from the VPSA in lieu of receiving a Literary Fund loan, the locality will be
removed from the Literary Fund waiting list for this Project This does not apply if a locality permanently
funds a portion of the Project with VPSA bonds and funds the remainder with a Literary Fund loan. Tn any
everrt, future Literary Fund loans may not be used to redeem bonds sold to the VPSA
6. Other Funding Sources: See Question 5 below
Section B - Pr'ojed Staters
What is the status of planning, design and construction for the Froject(s)? Answer the following questions for
the Project(s): (a separate page maybe used).
1. Have the final plans and specifications, architect's or engineer's statement and the division
superintendent's approval been submitted to the Superintendent of Public Inst.ruction (as required by
§22.1-140 oftlne Code of Virginia)?
(a) X Yes ~,._ no
2. What is the bid date for the Project(s) (a) Apri12005 (b) March 2006
3 • Estimated Construction Start Date: (a) June 2005 (b) April 2006
4. Estimated Construction Completion Date (a) Summer 2006 (b) Summer 2007
5. Has arty money been expended on the Projects}? (a) and (b) ves na
If yes, indicate (i) the source of such money (ii) the date(s) of expenditure of such money, and (id) the
type of expenditure. (See questions 4 and 5, on page 6, under "Project Aufhorization'~
(a) (i) VPSA (Series 2004A, B, Series 2005A, B, Series 2006A); (i) Summer 2004 to date; (iii)
design, site, construction
(b) (i) local funds and VPSA funds (Series 2006A,B and 2007A), (ii) Late 2005, Early 2006, (iii)
design and site testing
6. Has the Project(s) been completed? yes ~a) and b{~ X no
4
Section C- FinancuagRequested
Preferred Amortization Schedule:
Principal is expected to be paid in annual installments starting on July 15, 2007. The Authority will consider
permitting the use of amortization schedules oilier than level principal and wiIl consider amortization periods
other than twenty years. To request an alternative amortization schedule for such loans, please indicate your
preference on the application.
Preferred Amortization Period:
11-20 years 20 ears
Over 20 years (Explain)
Preferred Principal Structure:
Level Principal X_ _
Level Debt Service
Oilier (Explain)
THE FOLLOWING SECTION OF THE APPLICATION LS RESERVED FOR REQUESTS FOR
FINANCING EQUIPMENT OR OTHER PROJECTS AMORTIZED- OVER A PERIOD OF TEN
YEARS OR LESS.
II. Requests For Intermediate-Term Financing (See page 2 for Long-Term Financing)
Section A -Project Description
1. Briefly describe the Project(s) and indicate whether the Project(s) will be subject to any leases or
management or service contracts: (a separate page may be used).
2. Total Expected Costs:
3. Cost By Project(s) and Phase (Construction or Equipment Acquisition Schedule) (separate page may be
used)
Estimated
Project(s) Estimated Estimated Completion
Phase Cost Useful Life Date
4. Amount of VPSA Financing applied for (proceeds requested): $
Note: The VPSA can arily pwchase local school bonds in whole muhiples of $5,000. If yow actual cost
is not a whole multiple of $5,000, please revise that amount up or down, (e.g., actual amount $5,032,600
should be revised to either $5,035,000 or $5,030,000). Do not request a greater dollar amount than you
will reasonably expect to be able tb spend
Minimum proceeds required, if applicable: $
Maximum authorized par amount: $
Explanation for minimum proceeds requirement-.
Note: In order to meet requests for a minimum amount of proceeds, such as in comiection with We
refunding of a prior obligation, it will be necessary to have sufficiently broad bond issuance authority
to accommodate possible adjustments needed in the par amount of local school bonds issued at the time
_ of the VPSA band sale. School and governing body resolutions and notices of public hearing should be
Prepared accordingly.
5. Has the County/City applied for a Literary Fund Loan to fund all or a portion of the Project(s)? (indicate
whether loan was for the entire cost)
yes no
If yes, please list amount applied for and date of application
Amount.
Date:
Date of Approval from Boazd of Education if Literary Funds are expected:
Date:
Note: ff funds are borrowed from the VPSA in lieu of receiving a Literary Fund loan, the locality will be
removed from the Literary Fund waiting list for this Project This does not apply if a locality permanently
fiords a portion of the Project with VPSA bonds and funds the remainder with a Literary Fund loan. In arty
everrt, fixture Literary Fund loans may not be used to redeem bonds sold to the VPSA
6. Other Funding Sources:
Section B -Project Status
• What is the status of planning, design and construction or acquisition for the Project(s) or Equipment?
• Answer the following gnestion$ for the. Project(s):
1. Estimated Start Date:
2. Estimated Completion Date:,
3. Has arty money been expended on the Project(s)? _yes no
If yes, indicate (i) the source of such money (ii) the date(s) of expenditure of such money, and (iii) die
type of expenditure. (See questions 4 and 5, on page 6, under "Project Authorization")
4. Has the Project(s) been completed? yes no
• Answer the following questions for the Project(s) (if applicable):
5. For Projects, have the final plans and specifications, architect's or engineer`s statement and the division
" superir-ter-derrt's approval been submitted to the Superintendent of Public Instruction (as required by
§22.1-140 of the Code of Vireinia)?
yes no
6. What is the bid date(s) for the Project(s):
Section C- F~ancingRequested
Amortization Schedule Preferred:
(Debt Service is expected to be paid with semi-annual paymerrts. The first irrterest payment is due on
January 15, 2007 and the first principal installment on July 15, 2007 with subsequent irrterest
paymerrts due on each January 15 and July 15.)
Preferred Arr~rtization Period•
5 years
10 years
Other
Preferred Principal Structure•
Level Principal _
Level Debt Service
Other (Explain)
7
PLEASE COMPLETE EACH OF THE FOLLOWING QUESTIONS:
III. Project Authorrcation
1. Have your Boards approved the Project(s) and authorized this application to VPSA for the needed
financing?
Approved by School Board X yes no
Approved by County Board/ City Council *
.yes no
* (~~~~~zasosm
Certified copies of resolutions are attached
2. Were these bands or any school Projects the subject of a referendum within the previous
5 years? _yes X no
If yes, provide the date of referendum:
Did the referendum pass? _~.as ~
NOTE: Please enclose a copy of the ballot quesfion and the official results.
3. Person(s) responsible for disbursing and investing bond proceeds
Name: Lisa K Frye, Duector of Finance
Address: F.O. Box 3508, Winchester, VA 22604
Telephone: 540-662-3888
Fax: 540-722-2788
4. Will bond proceeds from this sale be used to repay a Bond Anticipation Note, Certificate of Participation
or other form of interim/temporary financing (the "prior Obligation")?
_yes X no
If Yes, please provide the following terms of the Prior Obligation:
(i) Name and Amount of Prior Obligation and Bond Counsel for Transaction
(ii) Date of Issue and Mat<nity of prior Obligation
(iii) Redemptia~n Provisions (e.g., notice, premium, etc.)
(iv) Amount of Prior Obligation to be Refunded with VPSA bond proceeds
8
(v) Please provide a brief description of the other anticipated sources of funds to refund the Prior
Obligation (e.g., local g~eral funds}
(vi) Please provide airy other amounts needed to refund the Prior Obligation, including arty accrued
interest and redemption premium
(vii) Unexpended proceeds as of date of application
(viii) Date Prior Obligation is irrtended to be redeemed
5. (a) Were the proceeds of the Prior Obligation used to reimburse yourself for expenses paid before
the Prior Obligation was obtained?
,_yes no
(b) Will bond proceeds from this sale be used to reimburse you for prior expenditures?
X yes no
If the answer to 5(a) or S(b) is Yes, please attach a copy of your reimbursement resolution
Also, please include a list briefly describing the expenditures you plan to reimburse with
proceeds from this sale. The proceeds would be used to reimburse the wurriy for any site or
construction invoices which may be paid prior to receipt of the bond proceeds.
(c) What amount of proceeds of the Prior Obligation have been spent?
(d) What amourrt of proceeds of the Prior Obligation do you anticipate to have spent by
November 10, 2005
(e) Are the proceeds of the Prior Obligation invested widr SNAP? _yes no
If no, where are they invested?
6. Have you executed arty undertaking in regards to continuing disclosure not associated with the
VPSA?
_x_yes no
If Yes, please include copies of any such undertakings. Please refer to the Fall 2002
issue for copies of the undertaking. It is an Indushial Development Authority issue dated November 2001.
9
~~:
Submitted by ,'
(County A~n?inistrator- J R Riley)
Submitted by _ ~;?U~~.. LQ.~,_,,_
(School Superintendent -William C. Dean)
THIS APPLICATION MUST BE COMPLETED AND RETURNED BY 5:00 PM ON
FEBRUARY 16, 2006 TO vpsa antrs.yirgin1a.~ov OR BY MAIL TO:
Richard A Davis, Public Finance Manager
Department of the Treasury
Commonwealth of Virginia
By Delivery to.
101 North 14th St, 3rd Floor
Richmond, Virginia 23219
By U.S. Mail to:
P.O. Box 1879
Richmond, VA 23218-1879
LOCALITIES NOT RETURNING THIS FORM WILI. NOT BE INCLUDED IN THE SALE.
10
NOTICE OF PUBLIC HEARING ON PROPOSED
BOND FINANCING BY THE COUNTY OF FREDERICK, VIRGINIA
Notice is hereby given that the Board of Supervisors of the County of Fredericl~
Virginia (the "County") will hold a public hearing in accordance with Section 15.2-2606
of the Code of Virginia of 1950, as amended, on the issuance of general obligation school
bonds (the "Bond") of the County in the estimated maximum amount of $6,530,000 to
finance certain capital projects for public school purposes. A resolution authorizing the
issuance of the Bond will be considered by the Board of Supervisors at its meeting on
February 22, 2006.
The public hearing, which may be continued or adjourned, will be held at 7:15
p.m., or as soon thereafter as the matter may be heard, on February 22, 2006, before the
Board of Supervisors in the Board of Supervisors' Meeting Room, 107 North Kent Street,
Winchester, Virginia.
All interested individuals are invited to attend and present oral or written
comments.
[Notice to be published on February 8a' and 1 S~']
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