COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Virginia Public School Authority Bond Resolution

 

SUBJECT/PROPOSAL/REQUEST:

Request Board approval of a Resolution authorizing the issuance of bonds in the maximum principal amount of $15,465,000 to finance certain capital improvements for the County’s public schools

 

STAFF CONTACT(S):

Messrs. Tucker, Davis, Wiggans; Ms. White

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

September 13, 2006

 

ACTION:     X                             INFORMATION:   

 

CONSENT AGENDA:

  ACTION:                                   INFORMATION:   

 

ATTACHMENTS:      Yes

 

 

REVIEWED BY:

 

BACKGROUND:

The FY 2006/07 Capital Improvement Budget was approved with the intent to issue approximately $15,465,000 in bonds through the Virginia Public School Authority (VPSA) for the following projects:

                                   

ADA Structural Changes

$15,000

Cale Elementary Construction

$5,512,000

Jouett-Greer Site Reconfiguration

$740,000

Jouett - HVAC

$1,350,000

Maintenance Projects

$428,000

Monticello Auditorium

$7,420,000

 

 

Total

$15,465,000

      

STRATEGIC PLAN:

4.2 Fund County services in a fair, efficient manner and provide needed County public facilities and infrastructure

 

DISCUSSION:

A Resolution authorizing the application to VPSA was adopted by the School Board on August 10, 2006.  The attached Resolution authorizes issuance of the bonds not to exceed $15,465,000, the sale of the bonds to VPSA, and approves as to form the Bond Sale Agreement and details relating to the Bonds.

 

In order to proceed with this process, a public hearing is scheduled for 6:00 p.m. on September 13, 2006 after which the Board will need to adopt the attached Resolution.

 

BUDGET IMPACT:

The FY07 CIP and Debt Service budgets anticipated the issuance of $11,775,000 in bonds for several school capital projects.  Due to an unprecedented escalation in construction costs, the school division requested a restructuring and reallocation of funding for existing FY07 School CIP projects.  This restructuring and reallocation was approved by the Board at their August 2, 2006 meeting and will require an increase of $3,688,000 in debt to be issued in FY07 with an equal reduction in issued debt in FY08.  School related projects in the out years of the CIP as well as the actual debt to be issued for FY08 will be reviewed this fall in preparing our next capital budget. 

 

RECOMMENDATIONS:

After the public hearing, staff recommends approval of the attached Resolution to authorize the issuance of bonds in the maximum principal amount of $15,465,000 to finance certain capital improvements for the County’s public schools.

 

ATTACHMENTS

A – Resolution

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