Item Coversheet

Spotsylvania County
Board of Supervisors Agenda
Executive Summary



Meeting Date:
April 9, 2019
Title:
Approval of Certificate of Refunding of Local School Bond
Type:
Action
Agenda Title:
Approval of Certificate of Refunding of Local School Bond
Recommendation:
Staff recommends that the Board authorize the Interim County Administrator to sign the Certificate of Refunding of Local School Bond document in conjunction with Virginia Public School Authority's refunding of bonds previously issued through that Authority for school capital projects. 
Summary:

Finance staff was recently alerted that the Virginia Public School Authority (VPSA) intends to refund bonds for which Spotsylvania was part of the pool of original issuers.  (Prior to our issuance of General Obligation Bonds, the County used VPSA for  financing of school projects.)  The refunding is estimated to save Spotsylvania taxpayers approximately $270,000 over the remaining four-year life of the existing bonds by reducing interest costs. 

 

In order to take advantage of current bond market conditions, VPSA anticipates that the Refunding Bonds will be issued at the end of April 2019.  Localities who are members of the pool are required to execute and return to VPSA the attached Certificate of Refunding of Local School Bond not later than April 12, 2019.  County Finance staff is currently working with the County's bond attorney to complete VPSA's attached Certificate template, as appropriate.

 

Staff requests that that the Board authorize the Interim County Administrator to sign the Certificate once the bond attorney has completed the document, but not later than April 12, 2019.  An authorized representative of the School Board is also required to sign the Certificate, and this document is being added to the School Board's agenda for approval on April 8, 2019.  

Financial Impact:
The refunding of the bonds is estimated by VPSA to reduce Schools' debt service by a total of $270,000 over the remaining four-year life of the bonds.
Staff Contacts:
Bonnie Jewell, Budget Manager
Consequence of Denial/Inaction:
If the Board chooses not to authorize the Interim County Administrator to sign the Certificate of Refunding of Local School Bond, VPSA will not be able to proceed with refunding certain bonds previously issued to finance school capital projects in Spotsylvania.
ATTACHMENTS:
File NameDescriptionType
Certificate_of_Refunding_of_Local_School_Bond.pdfCertificate of Refunding of Local School BondBackup Material