| | | | | | | | Spotsylvania County
Board of Supervisors Agenda
Executive Summary |
| | | | | | | | Meeting Date:
| August 13, 2019 |
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| | | | | | | | Title:
| Authorization for Public Hearing - Issuance of New Money Water and Sewer System Revenue Bonds |
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| | | | | | | | Agenda Title:
| Authorization for Public Hearing - Issuance of New Money Water and Sewer System Revenue Bonds |
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| | | | | | | | Recommendation:
| Staff recommends that the Board authorize a public hearing to be held at its meeting on September 10, 2019, to receive comment regarding the issuance of new money Water and Sewer System Revenue Bonds (“Revenue Bonds”) in an estimated principal amount not to exceed $24,000,000. |
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| | | | | | | | Summary:
| The County’s Adopted Capital Improvement Plan (“CIP”) calls for a program of capital improvements to and expansions of the County’s water and sewer system including, without limitation, upgrades and extensions of water and wastewater transmission and treatment facilities. The issuance of the new money Revenue Bonds has been determined to be the preferable manner by which to finance such improvements. The Bonds will be issued pursuant to the Public Finance Act, Section 15.2-2600 et. seq. of the Code of Virginia of 1950, as amended (the “Act”).
A public hearing is necessary prior to the issuance of these Revenue Bonds. As such, staff recommends that the Board authorize a public hearing to be held at its meeting on September 10, 2019, to receive comment on this matter. The public hearing notice intended for advertisement is attached. |
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| | | | | | | | Financial Impact:
| The FY 2020 debt service costs related to the issuance of these Revenue Bonds are included in the FY 2020 Adopted Budget. Once the issuance is complete, we will request the Board's approval to adjust the FY 2020 Budget for the proceeds and related issuance expenses. |
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| | | | | | | | Staff Contacts:
| Bonnie Jewell, Deputy Director of Finance for Budget |
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| | | | | | | | Legal Counsel:
| Richard L. Hurlbert, Jr., Bond Counsel |
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| | | | | | | | Consequence of Denial/Inaction:
| If the Board decides not to authorize the public hearing, the Revenue Bond issuance will not be able to occur. As such, the FY 2020 capital improvements adopted in the CIP to improve and expand the County’s water and sewer system either (a) would not be completed, or (b) would be deferred, subjecting the County to market risk that prevailing interest rates will increase. |
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