037-09At a regular meeting of the Board of Supervisors of the County of Frederick, Virginia,
held on the 18`h day of November, 2009, the following Board of Supervisors members were
recorded as present:
PRESENT: Chairman Richard C. Shickle; Charles S. DeHaven, Jr.; Gary W. Dove; Bill M.
Ewing; Gene E. Fisher; Philip A. Lemieux; and Gary A. Lofton.
On motion by �ervisor Gary W. Dove, seconded by Supervisor Bill M. Ewing, the
attached Resolution was adopted by a majority of the members of the Board of Supervisors by a
roll call vote, the votes being recorded as follows:
MEMBER VOTE
Richard C. Shickle Aye
Charles S. DeHaven, Jr. Aye
-- Gary W. Dove Aye
Bill M. Ewing Aye
Gene E. Fisher Aye
Philip A. Lemieux Aye
Gary A. Lofton Aye
RESOLUTION DESIGNATING THE COUNTY OF FREDERICK, VIRGINIA AS A
RECOVERY ZONE FOR PURPOSES OF RECOVERY ZONE ECONOMIC
DEVELOPMENT BONDS AND RECOVERY ZONE FACILITY BONDS AND
REALLOCATING VOLUME CAP ALLOCATION FOR
RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS
WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111 -5),
in part, added Sections 1400U -I through 1400U -3 to the Internal Revenue Code of 1986, as
amended (the "Code " }, that authorize state and local governments to issue two new categories of
bonds (together, "Recovery Zone Bonds ") entitled (i) "recovery zone economic development
bonds" and (ii} "recovery zone facility bonds ", the purpose of which are to lower costs of state
and local government borrowing and thereby to promote job creation and economic recovery in
areas particularly affected by employment declines;
WHEREAS, the Code imposes a national bond volume limitation of $10 billion for
recovery zone economic development bonds and $15 billian for recovery zone facility bonds, of
which the County of Frederick, Virginia (the "County ") has been allocated $4,984,000 in
recovery zone economic development bonds (the "RZED Bond Allocation ") and $7,476,000 in
recovery zone facility bonds;
WHEREAS, recovery zone economic development bonds may be used to finance certain
- "qualified economic development purposes" and recovery zone facility bonds may be used to
finance certain "recovery zone property ", both generally for use within or attributable to areas
designated as "recovery zones ";
WHEREAS, the Code defines the term "recovery zone" as, among other things, "any area
designated by the issuer as having significant poverty, unemployment, rate of home foreclosures
or general distress ";
WHEREAS, the entire geographic area of the County is experiencing general distress
resulting from, in part, an overall unemployment rate of 7.4% as of August 2009 (an increase of
3.0% over the unemployment rate in August 2008);
WHEREAS, the County has determined that as a result of such general distress, the entire
geographic area of the County qualifies to be designated as a recovery zone for purposes of
issuing recovery zone bonds; and
WHEREAS, the Board of Supervisors desires to facilitate the issuance of recovery. zone
bonds by the County, the Frederick County Sanitation Authority, the industrial Development
Authority of the County of Frederick, Virginia or any other entity permitted to undertake the
issuance of bonds for projects located in or attributable to the County;
�- NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS
OF THE COUNTY OF FREDERICK, VIRGINIA, THAT:
Incorporation of Recitals. Each of the recitals set forth above is incorporated and
restated as if set forth herein.
2. Designation of Recovery Zone. The entire geographic area of the County of
Frederick, Virginia is hereby designated a "recovery zone" for purposes of issuing
recovery zone bonds under the provisions of Code Sections 1400U -1 through 1400U-
3.
Reallocation of RZED Bond Allocation. In accordance with U.S. Department of
Treasury Notice 2009 -50 the County hereby allocates its RZED Bond Allocation to
the Frederick County Sanitation Authority (the "Authority ") for the purpose of
assisting in financing the expansion and improvement of the Authority's water and
sewer facilities (the "Improvements ") to serve customers in the County and
accordingly, the Improvements to be financed through the Authority using the RZED
Bond Allocation are attributable to both the County and the Authority.
4. Issuance of Bonds. The County requests the Authority to issue or cause for the
benefit of the Authority the issuance of Recovery Zone Economic Development
Bonds (the "Bonds ") in the maximum amount of $4,984,000 to be used to pay the
costs of the improvements. The Bonds will be payable from revenues derived by the
Authority from the operation of its water and sewer systems.
5. Execution of Documents. The Chairman and Vice Chairman of the Board of
Supervisors and the County Administrator, or any of them, are authorized to execute
and deliver on behalf of the County such instruments, documents or certificates, and
to do and perform such things and acts, as they shall deem necessary or appropriate to
carry out the transactions authorized by this Resolution; and all of the foregoing,
previously done or performed by such officers or agents of the County, are in all
respects approved, ratified and confirmed.
6. Disclosure Documents. The County Administrator and the County's Director of
Finance, or either of them, and such officers and agents of the County as either of
them may designate are hereby authorized and directed to assist the Authority to
prepare, execute, if required, distribute, and deliver an appropriate preliminary
official statement and official statement or such other offering or disclosure
documents as may be necessary to expedite the sale of the Bonds.
7. Nature of Obli ations. Nothing in this Resolution or the Bonds shall constitute a debt
or a pledge of the full faith and credit of the County and the Authority shall not be
obligated to make any payments under the Bonds except from revenues of its water
and sewer systems.
8. Effective Date. This resolution shall take effect immediately upon its passage.
Adopted November 18, 2009.
---, ,f�
:�-�.
Clerk; B`o d of Supervisors of the County
of Fi�erick, Virginia
BOS Resolution ��037 -09
RESOLUTION DESIGNATING THE COUNTY OF FREDERICK, VIRGINIA AS A
RECOVERY ZONE FOR PURPOSES OF RECOVERY ZONE ECONOMIC
DEVELOPMENT BONDS AND RECOVERY ZONE FACILITY BONDS AND
REALLOCATING VOLUME CAP ALLOCATION FOR
RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS
WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111 -5),
in part, added Sections 1400U -I through 1400U -3 to the Internal Revenue Code of 1986, as
amended (the "Code "), that authorize state and local governments to issue two new categories of
bonds (together, "Recovery Zone Bands ") entitled (i) "recovery zone economic development
bonds" and (ii) "recovery zone facility bonds ", the purpose of which are to lower costs of state
and local government borrowing and thereby to promote job creation and economic recovery in
areas particularly affected by employment declines;
WHEREAS, the Code imposes a national bond volume limitation of $ I0 billion for
recovery zone economic development bonds and $15 billion for recovery zone facility bonds, of
which the County of Frederick, Virginia (the "County ") has been allocated $4,984,000 in
recovery zone economic development bonds (the "RZED Bond Allocation ") and $7,476,000 in
recovery zone facility bonds;
WHEREAS, recovery zone economic development bonds may be used to finance certain
"qualified economic development purposes" and recovery zone facility bonds may be used to
finance certain "recovery zone property ", both generally for use within or attributable to areas
designated as "recovery zones ";
WHEREAS, the Code defines the term "recovery zone" as, among other things, "any area
designated by the issuer as having significant poverty, unemployment, rate of home foreclosures
or general distress ";
WHEREAS, the entire geographic area of the County is experiencing general distress
resulting from, in part, an overall unemployment rate of 7.4% as of August 2009 (an increase of
3.0% over the unemployment rate in August 2008);
WHEREAS, the County has determined that as a result of such general distress, the entire
geographic area of the County qualifies to be designated as a recovery zone for purposes of
issuing recovery zone bonds; and
WHEREAS, the Board of Supervisors desires to facilitate the issuance of recovery zone
bonds by the County, the Frederick County Sanitation Authority, the Industrial Development
Authority of the County of Frederick, Virginia or any other entity permitted to undertake the
issuance of bonds for projects located in or attributable to the County;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS
OF THE COUNTY OF FREDERICK, VIRGINIA, THAT:
Incorporation of Recitals. Each of the recitals set forth above is incorporated and
restated as if set forth herein.
2. Designation of Recovery Zone. The entire geographic area of the County of
,. Frederick; Virginia is hereby designated a "recovery zone" for purposes of issuing
recovery zone bonds under the provisions of Code Sections 1400U -1 through 1400U-
3.
Reallocation of RZED Bond Allocation. In accordance with U.S. Department of
Treasury Notice 2009 -50 the County hereby allocates its RZED Bond Allocation to
the Frederick County Sanitation Authority (the "Authority ") for the purpose of
assisting in financing the expansion and improvement of the Authority's water and
sewer facilities (the "Improvements ") to serve customers in the County and
accordingly, the Improvements to be financed through the Authority using the RZED
Bond Allocation are attributable to both the County and the Authority.
4. Issuance of Bonds. The County requests the Authority to issue or cause for the
benefit of the Authority the issuance of Recovery Zone Economic Development
Bonds (the "Bonds "} in the maximum amount of $4,984,000 to be used to pay the
costs of the improvements. The Bonds will be payable from revenues derived by the
Authority from the operation of its water and sewer systems �..,�, ;� 11. "••� a �'-
..,..a r4.o A „ +�,efilT`L -(t }ua `— `�in7nG.�.�, .� �1..�, +,.�
=1 =vrrc -�.
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��. Execution of Documents. The Chairman and Vice Chairman of the Board of
Supervisors and the County Administrator, or any of them, are authorized to °�
__� -- -. i.,�..� , ..
"�'`' a •a +'' a 4 xecute and deliver on behalf of the
orn Jl 11
County such instruments, documents or certificates, and to do and perform such
things and acts, as they shall deem necessary or appropriate to carry out the
transactions authorized by �e -this Resolution
Deems; and all of the foregoing, previously done or performed by such officers
or agents of the County, are in all respects approved, ratified and confirmed.
?:!�.______DiscIosure Documents. The County Administrator and the County's Director of
Finance, or either of them, and such officers and agents of the County as either of
_ them may designate are hereby authorized and directed to assist the Authority to
prepare, execute, if required, distribute, and deliver an appropriate preliminary
official statement and official statement or such other offering or disclosure
documents as may be necessary to expedite the sale of the Bonds.
-7. __Nature of Obligations. Nothing in this Resolution: or the Bonds °-'��;�
shall constitute a debt_ or uled�e of the full faith and credit of the County
and the Authority shall not be obligated to make any payments under the Bonds c�h�
D "�:c',�.,.,u�� =�1except from revenues of its water and sewer systems "-�-�-
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�::�..___ Effective Date. This resolution shall take effect immediately upon its passage.
Adopted November 18, 2009.
Clerk, Board of Supervisors of the County
of Frederick, Virginia
�� �QUNTY of FRl✓I�ERICK
Jola� R. Raley, Jr.
County Administrator
540/665 -5666
MEMORANDUM Fax 540/667 -0370
E -mail:
jriley @co.frederick.va.us
TO:
Board of Supervisors
x�
FROM:
John R. Riley, Jr., County Administrator
SUBJECT:
Designation of Frederick County as a Recovery Zone for Purposes of
Recovery Zone Economic Development Bonds and Recovery Zone Facility
Bonds - Amended Resolution
DATE:
November 18, 2009
Attached you will find an amended resolution designating Frederick County as a recovery zone
for purposes of issuing Recovery Zone Economic Development and Recovery Zone Facility
Bonds as part of the American Recovery and Reinvestment Act. The changes are shown on
pages 2 and 3 in bold underline italics and ° +��'� ° +''r °••�'� The new language was provided by
legal counsel for the Frederick County Sanitation Authority after your agenda packet had been
assembled and delivered. The other language was removed after staff's consultation with bond
counsel and financial representatives.
The new language was required because the Sanitation Authority is considering the possibility of
issuing the Recovery Zone Economic Development Bonds through an upcoming VML/VACo
pool financing. This pool financing currently contemplates having the RZED bonds issued on
the pool level rather than the local level (i.e. through the Frederick County Industrial
Development Authority). The Sanitation Authority will be asking the VML/VACo pool to use
Frederick County's RZED allocation and issue said bonds for the benefit of the Sanitation
Authority.
The st�il�gk removes any reference to a Financing Agreement between the County and the
Sanitation Authority, wherein the County could be responsible for making payments on these
bonds should the Sanitation Authority be unable to carry this debt. The commitment to provide
the moral obligation of the County would count against the County's debt capacity.
Staff is seeking Board approval of this revised resolution.
Should you have any questions, please do not hesitate to contact me.
JRR/jet
107 North Kent Street •Winchester, Virginia 22601