025-08BOARD OF SUPERVISORS
BOARD OF SUPERVISORS
COUNTY OF FREDERICK
FREDERICK, VIRGINIA
RESOLUTION
At a meeting of the Frederick County Board of Supervisors held on the 22nd day of
October, 2008, 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
On motion of , seconded by _
by a vote of , the following was adopted:
, which carried
NO ACTION TAKEN ON THIS RESOLUTION 10/22/08. APPROVED COUNTY ADMINISTRATOR'S
RECOMMENDATION TO LEAVE THE CURRENT INTEREST RATE OF 6Z IN PLACE, AND PROVIDE
GUIDANCE TO VPSA STAFF RE: A LEVEL WE CAN PARTICIPATE IN (i.e., 5.25Z).
C: \TJP\ resolutions \AmendmentToBOSResolution (interest rate).DOC
A RESOLUTION AMENDING THE RESOLUTION AUTHORIZING THE ISSUANCE OF
GENERAL OBLIGATION SCHOOL BONDS OF THE COUNTY OF FREDERICK,
VIRGINIA TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY PURSUANT
TO THE 2008 FALL NOW SUBSIDY SALE
WHEREAS, on September 24, 2008, the Board of Supervisors (the "Board ") of the
County of Frederick, Virginia (the "County ") adopted a resolution (the "Original
Resolution ") authorizing the issuance by the County of its general obligation school bonds
(the "Bonds ") for purposes of financing certain capital projects for school purposes.
WHEREAS, the County authorized the issuance and sale of the Bonds through the
2008 Fall Non - Subsidy Program by the Virginia Public School Authority.
WHEREAS, in the Original Resolution, the Board approved a number of financing
terms within which the Bonds could be issued, including, but not limited to, the maximum
true interest cost per annum on the Bonds.
WHEREAS, as a result of current market conditions, Virginia Public School
Authority is concerned that it will be unable to sell the County's Bonds for a true interest
cost less than six percent (6.0 %) and has requested that the County authorize that the
Bonds may be sold at a true interest cost not to exceed seven percent (7.0 %).
WHEREAS, the Board has determined it necessary to amend the Original
Resolution to increase the maximum true interest cost at which the Bonds may be sold.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF
THE COUNTY OF FREDERICK, VIRGINIA:
1. Amendment of Resolution The Board hereby amends paragraph 4 of the
Original Resolution to increase the not to exceed true interest cost on the Bonds from six
percent (6.0 %) to seven percent (7.0 %) per annum.
2. Filing of Resolution The appropriate officers or agents of the County are
hereby authorized and directed to cause a certified copy of this Resolution to be filed with
the Circuit Court of the County.
3. Effective Date This Resolution shall take effect immediately.
The undersigned Clerk of the Board of Supervisors of the County of Frederick,
Virginia, hereby certifies that the foregoing constitutes a true and correct extract from the
minutes of a meeting of the Board of Supervisors held on October 22, 2008, and of the
whole thereof so far as applicable to the matters referred to in such extract. I hereby
further certify that such meeting was a regularly scheduled meeting and that, during the
consideration of the foregoing resolution, a quorum was present. The front page of this
Resolution accurately records (i) the members of the Board of Supervisors present at the
meeting, (ii) the members who were absent from the meeting, and (iii) the vote of each
member, including any abstentions.
WITNESS MY HAND and the seal of the Board of Supervisors of the County
of Frederick, Virginia, this 22nd day of October, 2008.
John R. Riley, Jr.
Clerk, Board of Supervisors
County of Frederick, Virginia
(SEAL)
I
Resolution No.: 025 -08
Frederick County Public Schools
... to ensure all students an excellent education
Executive Director of Finance
Date: October 13, 2008
To: John R. Riley, Jr., County Administrator
From: Lisa Frye, Executive Director of Finance
fryel @frederick. kl 2.va. us
Subject: Options for VPSA Fall Bond Sale in Light of Market Conditions
The upcoming fall sale of school bonds is subject to fluctuation similar to that exhibited by the
current financial market. Per communication with the Virginia Public School Authority (VPSA) and
bond counsel, interest rates for the upcoming bond sale may exceed the authorized interest rates in
locality resolutions. Frederick County's current resolution authorizes an interest rate up to six
percent. If the bond sale is completed with an interest rate greater than the authorized maximum in
the resolution, we will be excluded from the sale. VPSA is recommending that localities revise their
resolutions to seven percent which will reduce the likelihood of being excluded from the sale.
It is requested that the Board of Supervisors approve the attached resolution amending the
September 24. 2008 resolution authorizing the issuance of -general obligation school bonds of the
County of Frederick. Virginia to the Virginia Public School Authority pursuant to the 2008 Fall non -
subsidy sale.
If the resolution is not approved and the interest rate for the sale exceeds six percent, Frederick
County will be excluded from the sale and a plan would be necessary to accommodate the required
cash flow until the spring bond sale.
Thank you for including this request on the October 22, 2008 meeting agenda.
Attachment
C: Patricia Taylor, Superintendent
1415 Amherst Street www.frederickAl2.va.us 540 - 662 -3888
P.O. Box 3508 fax 540 - 722 -2788
Winchester, Virginia 22604 -2546