2011-04-08 Authorization the use of excess bond preceeds -2008-BRESOLUTION AUTHORIZING THE USE OF EXCESS BOND PROCEEDS
RESOLUTION 2011-Oa-08
The issuance of general obligation indebtedness by Pittsylvania County, Virginia
(the "County") in the maximum aggregate principal amount of $70,000,000 to finance the
renovation of four high schools, including without limitation, new heating and air conditioning
systems and roofs (collectively, the "Projects"), was approved by the qualified voters of the
County at an election held on November 6, 2007.
On December 20, 2007, the County issued $10,000,000 in aggregate principal
amount of such general obligation indebtedness to finance a portion of the costs of the Projects.
Pursuant to a Bond Resolution adopted on September 16, 2008 (the "Bond Resolution") and a
Bond Purchase Agreement entered into on October 3, 2008 (the "Sale Date"), the County issued,
on October 30, 2008, the remaining $60,000,000 of the voter-approved general obligation
indebtedness to finance the remaining costs of the Projects, such indebtedness being the
$20,000,000 General Obligation School Note, Series 2008A (the "Note"} and the $40,000,000
General Obligation School Bonds, Series 20088 (the "Bonds").
The County had estimated the costs of the Projects using historical comparisons
and other available data, including costs associated with the renovation of several middle
schools, which had previously been financed with the proceeds of bonds approved at a
referendum. Immediately after the adoption of the Bond Resolution and during the time that the
Note and Bonds were being offered for sale to the public, a significant financial crisis impacted
the economy, the banking industry and the municipal marketplace. After the Sale Date, the
County hid the construction contracts for the Projects (the "Construction Bids"). Due to the
economic conditions then affecting the country, including the construction industry, the
Construction Bids received were considerably lower than the cost estimates anticipated at the
time of the adoption of the Bond Resolution and the sale of the Note and the Bonds. As
construction has progressed, change orders and other additional costs have not been significant,
thereby resulting in considerable excess proceeds and investment earnings thereon (the "Excess
Proceeds"). Under the Treasury Regulations promulgated pursuant to the Internal Revenue Code
of 1986, as amended, unexpected sale or investment proceeds of a bond issue may be allocated to
pay principal and interest on such issue without compliance with the normal rules precluding
such application of the same.
The Board of Supervisors of the County (the "Board") desires to use the Excess
Proceeds to pay debt service on the Bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS OF PITTSYLVANIA COUNTY, VIRGINIA:
Section 1. Authorization of Use of Excess Proceeds. The Board hereby
authorizes the use of the Excess Proceeds to make the debt service payments at the times and in
the amounts reflected in the "Revised Bond Payoff Cash Flows Prepared for Pittsylvania County,
Virginia" dated April 13, 2011, prepared by Davenport & Company LLC and provided to the
Board herewith.
Section 2. Actions of County Officials. All actions of the Supervisors,
officers, staff, and agents of the County in conformity with the purposes and intent of this
Resolution and in furtherance of the contemplated use of the Excess Proceeds are approved and
confirmed. The officers and staff of the County are authorized and directed to execute and
deliver all certificates and instruments and to take all such further action as may be considered
necessary or desirable in connection with the contemplated use of the Excess Proceeds.
Section 3. Effective Date. This Resolution shall take effect immediately
upon its adoption.
Adopted: April 19, 2011
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223160.000019
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CERTIFICATE OF THE CLERK OF THE
BOARD OF SUPERVISORS OF PITT5YLVANIA COUNTY, VIRGINIA
certitics that:
The undersigned Clerk of the Board of Supervisors of Pittsylvania County, Virginia,
1. A regular meeting of the Board of Supervisors of Pittsylvania County, Virginia,
was held on April 19, 201 1, at the time and place established by the Board for such meetings, at which
the following members were present and absent:
MEMBER
Tim R. Barber
James H. Snead
Fred M. Ingram
William H. Pritchett
Marshall A. Ecker
Henry A. "Hank" Davis, Jr.
Coy E. Harville
PRESENT ABSENT
Yes
Yes
Yes
Yes
Yes
Yes
Yes
2. A resolution entitled "Resolution Authorizing the Use of Excess Bond Proceeds"
was adopted by a majority of all members of the Board present by a roll call vote, the ayes and nays
being recorded in the minutes of the meeting as shown below:
MEMBER VOTE
Tim R. Barber Aye
James H. Snead Aye
Fred M. Ingram Aye
William H. Pritchett Aye
Marshall A. Ecker Aye
Henry A. "Hank" Davis, Jr. Aye
Coy E. Harville Aye
3. Attached hereto is a true and correct copy of the foregoing resolution as adopted
on April 19, 20l 1. This resolution has not been repealed, revoked, rescinded or amended and is in frill
force and effect on the date hereof.
WITNESS my signature and the seal of the Board
Virginia, this~iay of April, 201 1.
Pittsylvania County,
Clerk, Board of Supervisors
of Pittsylvania County, Virginia