Gloucester, VA New School Bonds Issue - August, 2013

County of Gloucester
Finance Department
6467 Main Street
Gloucester, Virginia 23061 (804)693-6927
Interoffice Memorandum
To: Gloucester County Board of Supervisors
From: Nickie C. Champion, Director of Financial Services
CC: Howard B. Kiser, Ed.D., Superintendent of Schools
Brenda G. Garton, County Administrator
Edwin N. Wilmot, County Attorney
Joanne C. Wright, Director of Budget and Finance, GCPS
Date: July 22, 2013
Re: Resolutions for School Bonds and Other Materials
At the July 2, 2013 Board meeting, the Board agreed to hear public comment on August 6, 2013 on
a possible school bond issue for the Page Middle School project ($12.0 million) and various school
HVAC and roof repairs/upgrades ($5.0 million).
McGuireWoods, bond counsel, has prepared the attached documents for the Board’s
consideration:
• Option 1: This resolution authorizes the issuance of $12.0 million in school bonds for Page
Middle School.
• Option 2: This resolution authorizes the issuance of $17.0 million in school bonds with
$12.0 million for Page Middle School and approximately $5.0 million for school HVAC/roof
needs.
Please note that these resolutions were drafted with the goal of setting a limit on the amount (par
value) of bonds that will be issued. This means we will issue some face amount of bonds, but will
not know the actual bond proceeds (cash to be received) until the bond sale later in the year.
This is a function of the bond market where a bond will sell either above or below its par value
(face amount). For example, if a bond with a par value of $1,000 is selling at a premium, we will
receive more than $1,000; but if the bond is selling at a discount, we will receive less than $1,000.
Bonds are sold for more and less than their par values because of changing interest rates. When
interest rates go up, a bond’s market price will fall and vice versa.
Additionally, a question was recently raised about structuring debt payments in such a way as to
minimize the potential impact on real estate tax rates in the short term. This type of payment
structure enables us to mitigate the impact on tax rate increases until FY 2019, which is when the
Page 182

communications system is paid in full. An example (Case 3) has been included in the discussion
materials from Davenport & Company, which structures the payments in such a way that the
possible tax rate increase in FY 2015 is reduced from 2.5 cents to 2.0 cents. Please note that this
structure comes at a cost of approximately $303,750 (using the assumptions provided in the
materials) over the life (20 years) of the debt.
This debt repayment structure allows us is reduce the payments on the front end with larger
payments into the term of the debt. As noted above, this option does come at a price, and
extensive use of this type of repayment scheduling is not seen favorably by credit agencies.
Please do not hesitate to let me know if you have any questions or need further information.
Page 183

OPTION 1
AT A MEETING OF THE GLOUCESTER COUNTY BOARD OF SUPERVISORS,
HELD ON TUESDAY, AUGUST 6, 2013, AT 7:00 P.M., IN THE COLONIAL
COURTHOUSE, 6504 MAIN STREET GLOUCESTER, VIRGINIA: ON A
MOTION MADE BY ______________________ AND SECONDED BY
____________________ THE FOLLOWING RESOLUTION WAS ADOPTED BY
THE FOLLOWING VOTE:
Carter M. Borden, ____;
Ashley C. Chriscoe, ____;
Christopher A. Hutson, ____;
Andrew James, Jr., ____;
John H. Northstein, ____;
Robert J. Orth, ____;
Louise D. Theberge, ____;
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF GENERAL
OBLIGATION SCHOOL BONDS OF THE COUNTY OF GLOUCESTER,
VIRGINIA TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY
AND PROVIDING FOR THE FORM AND DETAILS THEREOF
WHEREAS, the Board of Supervisors (the "Board") of the County of
Gloucester, Virginia (the "County") has determined that it is necessary and
expedient to borrow an amount not to exceed the amount set forth in
paragraph 1 below and to issue its general obligation school bonds to finance
certain capital projects for public school purposes;
WHEREAS, the Board held a public hearing on August 6, 2013, on the
issuance of the Bonds (as defined below) in accordance with the requirements
of Section 15.2-2606, Code of Virginia of 1950, as amended (the "Virginia
Code");
WHEREAS, the School Board of the County has requested by resolution
the Board to authorize the issuance of the Bonds (as hereinafter defined) and
has consented to the issuance of the Bonds;
WHEREAS, the County proposes to enter into a Bond Sale Agreement
(the "Bond Sale Agreement") with the Virginia Public School Authority ("VPSA")
which will indicate that the amount set forth below in paragraph 1 is the
amount of proceeds requested (the "Proceeds Requested") from the VPSA in
connection with the sale of the Bonds;
WHEREAS, VPSA's objective is to pay the County a purchase price for
the Bonds which, in VPSA's judgment, reflects the Bonds' market value (the
Page 184

"VPSA Purchase Price Objective"), taking into consideration such factors as the
amortization schedule the County has requested for the Bonds relative to the
amortization schedules requested by other localities, the purchase price to be
received by VPSA for its bonds, and other market conditions relating to the sale
of VPSA's bonds; and
WHEREAS, such factors may result in requiring the County to accept a
discount, given the VPSA Purchase Price Objective and market conditions,
under which circumstance the proceeds from the sale of the Bonds received by
the County will be less than the Proceeds Requested.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS OF THE COUNTY OF GLOUCESTER, VIRGINIA:
1. Authorization of Bonds and Use of Proceeds
2.
. The Board hereby
determines that it is advisable to contract a debt and to issue and sell general
obligation school bonds of the County in the aggregate principal amount not to
exceed $12,000,000 (the “Bonds”) for the purpose of financing certain capital
projects for public school purposes, consisting primarily of a portion of the cost
of construction and equipping of a new middle school (the “Project”). The
Board hereby authorizes the issuance and sale of the Bonds in the form and
upon the terms established pursuant to this Resolution.
Sale of the Bonds
3.
. It is determined to be in the best interest of
the County to accept the offer of VPSA to purchase from the County, and to sell
to VPSA, the Bonds at a price determined by VPSA and accepted by the
Chairman of the Board or the County Administrator and upon the terms
established pursuant to this Resolution. The County Administrator and the
Chairman of the Board, or either of them, and such officer or officers of the
County as either of them may designate, are hereby authorized and directed to
enter the Bond Sale Agreement with the VPSA providing for the sale of the
Bonds to VPSA in such form as may be approved by the Chairman of the Board
and the County Administrator, or either of them.
Details of the Bonds. The Bonds shall be issuable in fully
registered form in denominations of $5,000 and whole multiples thereof; shall
be dated the date of issuance and delivery of the Bonds; shall be designated
"General Obligation School Bonds, Series 2013" (or such other designation as
the County Administrator may approve) shall bear interest from the date of
delivery thereof payable semi-annually on each January 15 and July 15 (each
an "Interest Payment Date"), at the rates established in accordance with
paragraph 4 of this Resolution; and shall mature on July 15 in the years (each
a "Principal Payment Date") and in the amounts established in accordance with
paragraph 4 of this Resolution. The Interest Payment Dates and the Principal
Payment Dates are subject to change at the request of VPSA.
Page 185

4. Interest Rates and Principal installments
5.
. The County
Administrator is hereby authorized and directed to accept the interest rates on
the Bonds established by VPSA, provided that the true interest cost of the
Bonds does not exceed six and one-half percent (6.5%) per annum. The
County Administrator is further authorized and directed to accept the
aggregate principal amount of the Bonds and the amounts of principal of the
Bonds coming due on each Principal Payment Date ("Principal Installments")
established by VPSA, including any changes in the Interest Payment Dates, the
Principal Payment Dates and the Principal Installments which may be
requested by VPSA provided that such aggregate principal amount shall not
exceed the maximum amount set forth in paragraph 1 above and the final
maturity of the Bonds shall not be later than 26 years from their date. The
execution and delivery of the Bonds as described in paragraph 8 hereof shall
conclusively evidence such Interest Payment Dates, Principal Payment Dates,
interest rates, principal amount and Principal Installments as having been so
accepted as authorized by this Resolution.
Form of the Bonds. The Bonds shall be initially in the form of a
single, temporary typewritten bond substantially in the form attached hereto as
Exhibit A
6.
.
Payment; Paying Agent and Bond Registrar
(a) For as long as VPSA is the registered owner of the Bonds, all
payments of principal, premium, if any, and interest on the Bonds shall be
made in immediately available funds to VPSA at or before 11:00 a.m. on the
applicable Interest Payment Date, Principal Payment Date or date fixed for
prepayment or redemption, or if such date is not a business day for Virginia
banks or for the Commonwealth of Virginia, then at or before 11:00 a.m. on the
business day next succeeding such Interest Payment Date, Principal Payment
Date or date fixed for prepayment or redemption.
. The following
provisions shall apply to the Bonds:
(b) All overdue payments of principal and, to the extent
permitted by law, interest shall bear interest at the applicable interest rate or
rates on the Bonds.
(c) The County Administrator is authorized and directed to
designate a bank or trust company as Bond Registrar and Paying Agent for the
Bonds.
7. Prepayment or Redemption. The Principal Installments of the
Bonds held by the VPSA coming due on or before July 15, 2023, and the
definitive Bonds for which the Bonds held by the VPSA may be exchanged that
mature on or before July 15, 2023, are not subject to prepayment or
redemption prior to their stated maturities. The Principal Installments of the
Page 186

Bonds held by the VPSA coming due on or after July 15, 2024, and the
definitive bonds for which the Bonds held by the VPSA may be exchanged that
mature on or after July 15, 2024, are subject to prepayment or redemption at
the option of the County prior to their stated maturities in whole or in part, on
any date on or after July 15, 2023, upon payment of the prepayment or
redemption prices (expressed as percentages of Principal Installments to be
prepaid or the principal amount of the Bonds to be redeemed) set forth below
plus accrued interest to the date set for prepayment or redemption:
Dates Prices
July 15, 2023 through July 14, 2024 ........................ 101%
July 15, 2024 through July 14, 2025 ......................... 100.5
July 15, 2025 and thereafter...................................... 100;
Provided, however
8.
, that the Bonds shall not be subject to prepayment or
redemption prior to their stated maturities as described above without first
obtaining the written consent of VPSA or the registered owner of the Bonds.
Notice of any such prepayment or redemption shall be given by the Bond
Registrar to the registered owner by registered mail not more than ninety (90)
and not less than sixty (60) days before the date fixed for prepayment or
redemption. The County Administrator is authorized to approve such other
redemption provisions, including changes to the redemption dates set forth
above, as may be requested by VPSA.
Execution of the Bonds
9.
. The Chairman or Vice Chairman and
the Clerk or any Deputy Clerk of the Board are authorized and directed to
execute and deliver the Bonds and to affix the seal of the County thereto. The
manner of such execution may be by facsimile, provided that if both signatures
are by facsimile, the Bonds shall not be valid until authenticated by the
manual signature of the Paying Agent.
Pledge of Full Faith and Credit. For the prompt payment of the
principal of, and the premium, if any, and the interest on the Bonds as the
same shall become due, the full faith and credit of the County are hereby
irrevocably pledged, and in each year while any of the Bonds shall be
outstanding there shall be levied and collected in accordance with law an
annual ad valorem tax upon all taxable property in the County subject to local
taxation sufficient in amount to provide for the payment of the principal of, and
the premium, if any, and the interest on the Bonds as such principal,
premium, if any, and interest shall become due, which tax shall be without
limitation as to rate or amount and in addition to all other taxes authorized to
be levied in the County to the extent other funds of the County are not lawfully
available and appropriated for such purpose.
Page 187

10. Use of Proceeds Certificate; Non-Arbitrage Certificate
11.
. The
Chairman of the Board and the County Administrator, or either of them and
such other officer or officers of the County as either may designate are hereby
authorized and directed to execute a Non-Arbitrage Certificate, if required by
bond counsel, and a Use of Proceeds Certificate setting forth the expected use
and investment of the proceeds of the Bonds and containing such covenants as
may be necessary in order to show compliance with the provisions of the
Internal Revenue Code of 1986, as amended (the "Code"), and applicable
regulations relating to the exclusion from gross income of interest on the Bonds
and on the bonds to be issued by the VPSA (the "VPSA Bonds"), a portion of the
proceeds of which will be used to purchase the Bonds. The Board covenants
on behalf of the County that (i) the proceeds from the issuance and sale of the
Bonds will be invested and expended as set forth in such Use of Proceeds
Certificate and the County shall comply with the covenants and
representations contained therein and (ii) the County shall comply with the
provisions of the Code so that interest on the Bonds and on the VPSA Bonds
will remain excludable from gross income for federal income tax purposes.
State Non-Arbitrage Program; Proceeds Agreement
12.
. The
Board hereby determines that it is in the best interests of the County to
authorize and direct the County Treasurer to participate in the State Non-
Arbitrage Program in connection with the Bonds. The County Administrator
and the Chairman of the Board, or either of them and such officer or officers of
the County as either of them may designate, are hereby authorized and
directed to execute and deliver a Proceeds Agreement with respect to the
deposit and investment of proceeds of the Bonds by and among the County, the
other participants in the sale of the VPSA Bonds, VPSA, the investment
manager, and the depository in such form as may be approved by the County
Administrator, whose approval will be conclusively evidenced by the execution
and delivery of the Proceeds Agreement.
Continuing Disclosure Agreement
13.
. The Chairman of the
Board and the County Administrator, or either of them, and such other officer
or officers of the County as either of them may designate are hereby authorized
and directed (i) to execute a Continuing Disclosure Agreement, setting forth the
reports and notices to be filed by the County and containing such covenants as
Securities and Exchange Commission Rule 15c2-12, under the Securities
Exchange Act of 1934, as amended, and directed, and (ii) to make all filings
required by the Bond Sale Agreement should the County be determined by the
VPSA to be a Material Obligated Person (as defined in the Bond Sale Agreement
and the Continuing Disclosure Agreement).
Filing of Resolution. The appropriate officers or agents of the
County are hereby authorized and directed to cause a certified copy of this
Resolution to be filed with the Circuit Court of the County.
Page 188

14. Further Actions
15.
. The County Administrator, the Chairman
of the Board, and all such other officers, employees and agents of the County
as either of them may designate are hereby authorized to take such action as
the County Administrator or the Chairman of the Board may consider
necessary or desirable in connection with the issuance and sale of the Bonds
and any such action previously taken is hereby ratified and confirmed.
Effective Date
The undersigned Clerk of the Board of Supervisors of the County of
Gloucester, Virginia, hereby certifies that the foregoing constitutes a true and
correct extract from the minutes of a meeting of the Board of Supervisors held
on ______________ 2013, and of the whole thereof so far as applicable to the
matters referred to in such extract. I hereby further certify that such meeting
was a regularly scheduled meeting and that, during the consideration of the
foregoing resolution, a quorum was present.
. This Resolution shall take effect immediately.
________________________________
Clerk, Board of Supervisors
of the County of Gloucester, Virginia
(SEAL)
Page 189

EXHIBIT A
(FORM OF TEMPORARY BOND)
NO. TR-1 $____________
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
COUNTY OF GLOUCESTER
General Obligation School Bond
Series 2013
The COUNTY OF GLOUCESTER, VIRGINIA (the "County"), for value received,
hereby acknowledges itself indebted and promises to pay to the VIRGINIA PUBLIC SCHOOL
AUTHORITY the principal amount of ______________________ Dollars ($___________), in
annual installments in the amounts set forth on Schedule I attached hereto payable on July 15,
20___ and annually on July 15 thereafter to and including July 15, 20__ (each a "Principal
Payment Date"), together with interest from the date of this Bond on the unpaid installments,
payable semi-annually on January 15 and July 15 of each year commencing on _______ 15,
2014 (each an "Interest Payment Date;" together with any Principal Payment Date, a "Payment
Date"), at the rates per annum set forth on Schedule I
For as long as the Virginia Public School Authority is the registered owner of this Bond,
_______________, Richmond, Virginia, as bond registrar (the "Bond Registrar") shall make all
payments of principal, premium, if any, and interest on this Bond, without presentation or
surrender hereof, to the Virginia Public School Authority, in immediately available funds at or
attached hereto, subject to prepayment or
redemption as hereinafter provided. Both principal of and interest on this Bond are payable in
lawful money of the United States of America.
Page 190

before 11:00 a.m. on the applicable Payment Date or date fixed for prepayment or redemption.
If a Payment Date or date fixed for prepayment or redemption is not a business day for banks in
the Commonwealth of Virginia or for the Commonwealth of Virginia, then the payment of
principal, premium, if any, or interest on this Bond shall be made in immediately available funds
at or before 11:00 a.m. on the business day next succeeding the scheduled Payment Date or date
fixed for prepayment or redemption. Upon receipt by the registered owner of this Bond of said
payments of principal, premium, if any, and interest, written acknowledgment of the receipt
thereof shall be given promptly to the Bond Registrar, and the County shall be fully discharged
of its obligation on this Bond to the extent of the payment so made. Upon final payment, this
Bond shall be surrendered to the Bond Registrar for cancellation.
The full faith and credit of the County are irrevocably pledged for the payment of the
principal of and the premium, if any, and interest on this Bond. The resolution adopted by the
Board of Supervisors authorizing the issuance of the Bonds provides, and Section 15.2-2624 of
the Code of Virginia of 1950, as amended, requires, that there shall be levied and collected an
annual tax upon all taxable property in the County subject to local taxation sufficient to provide
for the payment of the principal, premium, if any, and interest on this Bond as the same shall
become due which tax shall be without limitation as to rate or amount and shall be in addition to
all other taxes authorized to be levied in the County to the extent other funds of the County are
not lawfully available and appropriated for such purpose.
This Bond is duly authorized and issued in compliance with and pursuant to the
Constitution and laws of the Commonwealth of Virginia, including the Public Finance Act of
1991, Chapter 26, Title 15.2, Code of Virginia of 1950, as amended, and resolutions duly
Page 191

adopted by the Board of Supervisors of the County and the School Board of the County to
provide funds for capital projects for school purposes.
This Bond may be exchanged without cost, on twenty (20) days written notice from the
Virginia Public School Authority at the office of the Bond Registrar on one or more occasions
for one or more temporary bonds or definitive bonds in marketable form and, in any case, in
fully registered form, in denominations of $5,000 and whole multiples thereof, having an equal
aggregate principal amount, having principal installments or maturities and bearing interest at
rates corresponding to the maturities of and the interest rates on the installments of principal of
this Bond then unpaid. This Bond is registered in the name of the Virginia Public School
Authority on the books of the County kept by the Bond Registrar, and the transfer of this Bond
may be effected by the registered owner of this Bond only upon due execution of an assignment
by such registered owner. Upon receipt of such assignment and the surrender of this Bond, the
Bond Registrar shall exchange this Bond for definitive Bonds as hereinabove provided, such
definitive Bonds to be registered on such registration books in the name of the assignee or
assignees named in such assignment.
The principal installments of this Bond coming due on or before July 15, 2023 and the
definitive Bonds for which this Bond may be exchanged that mature on or before July 15, 2023
are not subject to prepayment or redemption prior to their stated maturities. The principal
installments of this Bond coming due on or after July 15, 2024, and the definitive Bonds for
which this Bond may be exchanged that mature on or after July 15, 2024 are subject to
prepayment or redemption at the option of the County prior to their stated maturities in whole or
in part, on any date on or after July 15, 2023, upon payment of the prepayment or redemption
prices (expressed as percentages of principal installments to be prepaid or the principal amount
Page 192

of the Bonds to be redeemed) set forth below plus accrued interest to the date set for prepayment
or redemption:
Dates Prices
July 15, 2023 through July 14, 2024.................................................. 101%
July 15, 2024 through July 14, 2025 ................................................... 100.5
July 15, 2025 and thereafter................................................................ 100;
Provided, however
All acts, conditions and things required by the Constitution and laws of the
Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of
this Bond have happened, exist and have been performed in due time, form and manner as so
required, and this Bond, together with all other indebtedness of the County, is within every debt
and other limit prescribed by the Constitution and laws of the Commonwealth of Virginia.
, that the Bonds shall not be subject to prepayment or redemption prior
to their stated maturities as described above without the prior written consent of the registered
owner of the Bonds. Notice of any such prepayment or redemption shall be given by the Bond
Registrar to the registered owner by registered mail not more than ninety (90) and not less than
sixty (60) days before the date fixed for prepayment or redemption.
THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK
Page 193

IN WITNESS WHEREOF, the Board of Supervisors of the County of Gloucester,
Virginia, has caused this Bond to be issued in the name of the County of Gloucester, Virginia, to
be signed by its Chairman or Vice-Chairman, its seal to be affixed hereto and attested by the
signature of its Clerk or any of its Deputy Clerks, and this Bond to be dated ____________,
2013.
COUNTY OF GLOUCESTER,
VIRGINIA
[SEAL]
ATTEST:
By: ________________________________
Clerk, Board of Supervisors of the
County of Gloucester, Virginia
By: __________________________________
Chairman, Board of Supervisors of the
Page 194

ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
ASSIGNEE)
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE: ________________________________________
the within Bond and irrevocably constitutes and appoints
__________________________________________________ attorney to exchange said Bond
for definitive bonds in lieu of which this Bond is issued and to register the transfer of such
definitive bonds on the books kept for registration thereof, with full power of substitution in the
premises.
Dated: ______________________
Signature Guaranteed:
___________________________________
(NOTICE: Signature(s) must be guaranteed
by an "eligible guarantor institution"
meeting the requirements of the Bond
Registrar which requirements will include
membership or participation in STAMP or
such other "signature guarantee program" as
may be determined by the Bond Registrar in
addition to, or in substitution for, STAMP,
all in accordance with the Securities
Exchange Act of 1934, as amended.)
______________________________
Registered Owner
(NOTICE: The signature above must
correspond with the name of the Registered
Owner as it appears on the front of this
Bond in every particular, without alteration
or change.)
Page 195

OPTION 2
AT A MEETING OF THE GLOUCESTER COUNTY BOARD OF SUPERVISORS,
HELD ON TUESDAY, AUGUST 6, 2013, AT 7:00 P.M., IN THE COLONIAL
COURTHOUSE, 6504 MAIN STREET GLOUCESTER, VIRGINIA: ON A
MOTION MADE BY ______________________ AND SECONDED BY
____________________ THE FOLLOWING RESOLUTION WAS ADOPTED BY
THE FOLLOWING VOTE:
Carter M. Borden, ____;
Ashley C. Chriscoe, ____;
Christopher A. Hutson, ____;
Andrew James, Jr., ____;
John H. Northstein, ____;
Robert J. Orth, ____;
Louise D. Theberge, ____;
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF GENERAL
OBLIGATION SCHOOL BONDS OF THE COUNTY OF GLOUCESTER,
VIRGINIA TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY
AND PROVIDING FOR THE FORM AND DETAILS THEREOF
WHEREAS, the Board of Supervisors (the "Board") of the County of
Gloucester, Virginia (the "County") has determined that it is necessary and
expedient to borrow an amount not to exceed the amount set forth in
paragraph 1 below and to issue its general obligation school bonds to finance
certain capital projects for public school purposes;
WHEREAS, the Board held a public hearing on August 6, 2013, on the
issuance of the Bonds (as defined below) in accordance with the requirements
of Section 15.2-2606, Code of Virginia of 1950, as amended (the "Virginia
Code");
WHEREAS, the School Board of the County has requested by resolution
the Board to authorize the issuance of the Bonds (as hereinafter defined) and
has consented to the issuance of the Bonds;
WHEREAS, the County proposes to enter into a Bond Sale Agreement
(the "Bond Sale Agreement") with the Virginia Public School Authority ("VPSA")
which will indicate that the amount set forth below in paragraph 1 is the
amount of proceeds requested (the "Proceeds Requested") from the VPSA in
connection with the sale of the Bonds;
WHEREAS, VPSA's objective is to pay the County a purchase price for
the Bonds which, in VPSA's judgment, reflects the Bonds' market value (the
Page 196

"VPSA Purchase Price Objective"), taking into consideration such factors as the
amortization schedule the County has requested for the Bonds relative to the
amortization schedules requested by other localities, the purchase price to be
received by VPSA for its bonds, and other market conditions relating to the sale
of VPSA's bonds; and
WHEREAS, such factors may result in requiring the County to accept a
discount, given the VPSA Purchase Price Objective and market conditions,
under which circumstance the proceeds from the sale of the Bonds received by
the County will be less than the Proceeds Requested.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS OF THE COUNTY OF GLOUCESTER, VIRGINIA:
1. Authorization of Bonds and Use of Proceeds
2.
. The Board
hereby determines that it is advisable to contract a debt and to issue and sell
general obligation school bonds of the County in the aggregate principal
amount not to exceed $17,000,000 (the "Bonds") for the purpose of financing
certain capital projects for public school purposes, consisting primarily of
$12,000,000 to finance a portion of the costs of the construction and equipping
of a new middle school and approximately $5,000,000 to finance the costs of
HVAC improvements and roof repairs or replacements for various County
schools (the "Project"). The Board hereby authorizes the issuance and sale of
the Bonds in the form and upon the terms established pursuant to this
Resolution.
Sale of the Bonds
3.
. It is determined to be in the best interest
of the County to accept the offer of VPSA to purchase from the County, and to
sell to VPSA, the Bonds at a price determined by VPSA and accepted by the
Chairman of the Board or the County Administrator and upon the terms
established pursuant to this Resolution. The County Administrator and the
Chairman of the Board, or either of them, and such officer or officers of the
County as either of them may designate, are hereby authorized and directed to
enter the Bond Sale Agreement with the VPSA providing for the sale of the
Bonds to VPSA in such form as may be approved by the Chairman of the Board
and the County Administrator, or either of them.
Details of the Bonds. The Bonds shall be issuable in fully
registered form in denominations of $5,000 and whole multiples thereof; shall
be dated the date of issuance and delivery of the Bonds; shall be designated
"General Obligation School Bonds, Series 2013" (or such other designation as
the County Administrator may approve) shall bear interest from the date of
delivery thereof payable semi-annually on each January 15 and July 15 (each
an "Interest Payment Date"), at the rates established in accordance with
paragraph 4 of this Resolution; and shall mature on July 15 in the years (each
a "Principal Payment Date") and in the amounts established in accordance with
Page 197

paragraph 4 of this Resolution. The Interest Payment Dates and the Principal
Payment Dates are subject to change at the request of VPSA.
4. Interest Rates and Principal installments
5.
. The County
Administrator is hereby authorized and directed to accept the interest rates on
the Bonds established by VPSA, provided that the true interest cost of the
Bonds does not exceed six and one-half percent (6.5%) per annum. The
County Administrator is further authorized and directed to accept the
aggregate principal amount of the Bonds and the amounts of principal of the
Bonds coming due on each Principal Payment Date ("Principal Installments")
established by VPSA, including any changes in the Interest Payment Dates, the
Principal Payment Dates and the Principal Installments which may be
requested by VPSA provided that such aggregate principal amount shall not
exceed the maximum amount set forth in paragraph 1 above and the final
maturity of the Bonds shall not be later than 26 years from their date. The
execution and delivery of the Bonds as described in paragraph 8 hereof shall
conclusively evidence such Interest Payment Dates, Principal Payment Dates,
interest rates, principal amount and Principal Installments as having been so
accepted as authorized by this Resolution.
Form of the Bonds. The Bonds shall be initially in the form
of a single, temporary typewritten bond substantially in the form attached
hereto as Exhibit A
6.
.
Payment; Paying Agent and Bond Registrar
(a) For as long as VPSA is the registered owner of the Bonds, all
payments of principal, premium, if any, and interest on the Bonds shall be
made in immediately available funds to VPSA at or before 11:00 a.m. on the
applicable Interest Payment Date, Principal Payment Date or date fixed for
prepayment or redemption, or if such date is not a business day for Virginia
banks or for the Commonwealth of Virginia, then at or before 11:00 a.m. on the
business day next succeeding such Interest Payment Date, Principal Payment
Date or date fixed for prepayment or redemption.
. The following
provisions shall apply to the Bonds:
(b) All overdue payments of principal and, to the extent
permitted by law, interest shall bear interest at the applicable interest rate or
rates on the Bonds.
(c) The County Administrator is authorized and directed to
designate a bank or trust company as Bond Registrar and Paying Agent for the
Bonds.
7. Prepayment or Redemption. The Principal Installments of
the Bonds held by the VPSA coming due on or before July 15, 2023, and the
definitive Bonds for which the Bonds held by the VPSA may be exchanged that
Page 198

mature on or before July 15, 2023, are not subject to prepayment or
redemption prior to their stated maturities. The Principal Installments of the
Bonds held by the VPSA coming due on or after July 15, 2024, and the
definitive bonds for which the Bonds held by the VPSA may be exchanged that
mature on or after July 15, 2024, are subject to prepayment or redemption at
the option of the County prior to their stated maturities in whole or in part, on
any date on or after July 15, 2023, upon payment of the prepayment or
redemption prices (expressed as percentages of Principal Installments to be
prepaid or the principal amount of the Bonds to be redeemed) set forth below
plus accrued interest to the date set for prepayment or redemption:
Dates Prices
July 15, 2023 through July 14, 2024 ........................ 101%
July 15, 2024 through July 14, 2025 ......................... 100.5
July 15, 2025 and thereafter...................................... 100;
Provided, however
8.
, that the Bonds shall not be subject to prepayment or
redemption prior to their stated maturities as described above without first
obtaining the written consent of VPSA or the registered owner of the Bonds.
Notice of any such prepayment or redemption shall be given by the Bond
Registrar to the registered owner by registered mail not more than ninety (90)
and not less than sixty (60) days before the date fixed for prepayment or
redemption. The County Administrator is authorized to approve such other
redemption provisions, including changes to the redemption dates set forth
above, as may be requested by VPSA.
Execution of the Bonds
9.
. The Chairman or Vice Chairman
and the Clerk or any Deputy Clerk of the Board are authorized and directed to
execute and deliver the Bonds and to affix the seal of the County thereto. The
manner of such execution may be by facsimile, provided that if both signatures
are by facsimile, the Bonds shall not be valid until authenticated by the
manual signature of the Paying Agent.
Pledge of Full Faith and Credit. For the prompt payment of
the principal of, and the premium, if any, and the interest on the Bonds as the
same shall become due, the full faith and credit of the County are hereby
irrevocably pledged, and in each year while any of the Bonds shall be
outstanding there shall be levied and collected in accordance with law an
annual ad valorem tax upon all taxable property in the County subject to local
taxation sufficient in amount to provide for the payment of the principal of, and
the premium, if any, and the interest on the Bonds as such principal,
premium, if any, and interest shall become due, which tax shall be without
limitation as to rate or amount and in addition to all other taxes authorized to
be levied in the County to the extent other funds of the County are not lawfully
available and appropriated for such purpose.
Page 199

10. Use of Proceeds Certificate; Non-Arbitrage Certificate
11.
. The
Chairman of the Board and the County Administrator, or either of them and
such other officer or officers of the County as either may designate are hereby
authorized and directed to execute a Non-Arbitrage Certificate, if required by
bond counsel, and a Use of Proceeds Certificate setting forth the expected use
and investment of the proceeds of the Bonds and containing such covenants as
Internal Revenue Code of 1986, as amended (the "Code"), and applicable
regulations relating to the exclusion from gross income of interest on the Bonds
and on the bonds to be issued by the VPSA (the "VPSA Bonds"), a portion of the
proceeds of which will be used to purchase the Bonds. The Board covenants
on behalf of the County that (i) the proceeds from the issuance and sale of the
Bonds will be invested and expended as set forth in such Use of Proceeds
Certificate and the County shall comply with the covenants and
representations contained therein and (ii) the County shall comply with the
provisions of the Code so that interest on the Bonds and on the VPSA Bonds
will remain excludable from gross income for federal income tax purposes.
State Non-Arbitrage Program; Proceeds Agreement
12.
. The
Board hereby determines that it is in the best interests of the County to
authorize and direct the County Treasurer to participate in the State Non-
Arbitrage Program in connection with the Bonds. The County Administrator
and the Chairman of the Board, or either of them and such officer or officers of
the County as either of them may designate, are hereby authorized and
directed to execute and deliver a Proceeds Agreement with respect to the
deposit and investment of proceeds of the Bonds by and among the County, the
other participants in the sale of the VPSA Bonds, VPSA, the investment
manager, and the depository in such form as may be approved by the County
Administrator, whose approval will be conclusively evidenced by the execution
and delivery of the Proceeds Agreement.
Continuing Disclosure Agreement
13.
. The Chairman of the
Board and the County Administrator, or either of them, and such other officer
or officers of the County as either of them may designate are hereby authorized
and directed (i) to execute a Continuing Disclosure Agreement, setting forth the
reports and notices to be filed by the County and containing such covenants as
Securities and Exchange Commission Rule 15c2-12, under the Securities
Exchange Act of 1934, as amended, and directed, and (ii) to make all filings
required by the Bond Sale Agreement should the County be determined by the
VPSA to be a Material Obligated Person (as defined in the Bond Sale Agreement
and the Continuing Disclosure Agreement).
Filing of Resolution. The appropriate officers or agents of the
County are hereby authorized and directed to cause a certified copy of this
Resolution to be filed with the Circuit Court of the County.
Page 200

14. Further Actions
15.
. The County Administrator, the Chairman
of the Board, and all such other officers, employees and agents of the County
as either of them may designate are hereby authorized to take such action as
the County Administrator or the Chairman of the Board may consider
necessary or desirable in connection with the issuance and sale of the Bonds
and any such action previously taken is hereby ratified and confirmed.
Effective Date
The undersigned Clerk of the Board of Supervisors of the County of
Gloucester, Virginia, hereby certifies that the foregoing constitutes a true and
correct extract from the minutes of a meeting of the Board of Supervisors held
on ______________ 2013, and of the whole thereof so far as applicable to the
matters referred to in such extract. I hereby further certify that such meeting
was a regularly scheduled meeting and that, during the consideration of the
foregoing resolution, a quorum was present.
. This Resolution shall take effect immediately.
________________________________
Clerk, Board of Supervisors
of the County of Gloucester, Virginia
(SEAL)
Page 201

EXHIBIT A
(FORM OF TEMPORARY BOND)
NO. TR-1 $____________
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
COUNTY OF GLOUCESTER
General Obligation School Bond
Series 2013
The COUNTY OF GLOUCESTER, VIRGINIA (the "County"), for value received,
hereby acknowledges itself indebted and promises to pay to the VIRGINIA PUBLIC SCHOOL
AUTHORITY the principal amount of ______________________ Dollars ($___________), in
annual installments in the amounts set forth on Schedule I attached hereto payable on July 15,
20___ and annually on July 15 thereafter to and including July 15, 20__ (each a "Principal
Payment Date"), together with interest from the date of this Bond on the unpaid installments,
payable semi-annually on January 15 and July 15 of each year commencing on _______ 15,
2014 (each an "Interest Payment Date;" together with any Principal Payment Date, a "Payment
Date"), at the rates per annum set forth on Schedule I
For as long as the Virginia Public School Authority is the registered owner of this Bond,
_______________, Richmond, Virginia, as bond registrar (the "Bond Registrar") shall make all
payments of principal, premium, if any, and interest on this Bond, without presentation or
surrender hereof, to the Virginia Public School Authority, in immediately available funds at or
attached hereto, subject to prepayment or
redemption as hereinafter provided. Both principal of and interest on this Bond are payable in
lawful money of the United States of America.
Page 202

before 11:00 a.m. on the applicable Payment Date or date fixed for prepayment or redemption.
If a Payment Date or date fixed for prepayment or redemption is not a business day for banks in
the Commonwealth of Virginia or for the Commonwealth of Virginia, then the payment of
principal, premium, if any, or interest on this Bond shall be made in immediately available funds
at or before 11:00 a.m. on the business day next succeeding the scheduled Payment Date or date
fixed for prepayment or redemption. Upon receipt by the registered owner of this Bond of said
payments of principal, premium, if any, and interest, written acknowledgment of the receipt
thereof shall be given promptly to the Bond Registrar, and the County shall be fully discharged
of its obligation on this Bond to the extent of the payment so made. Upon final payment, this
Bond shall be surrendered to the Bond Registrar for cancellation.
The full faith and credit of the County are irrevocably pledged for the payment of the
principal of and the premium, if any, and interest on this Bond. The resolution adopted by the
Board of Supervisors authorizing the issuance of the Bonds provides, and Section 15.2-2624 of
the Code of Virginia of 1950, as amended, requires, that there shall be levied and collected an
annual tax upon all taxable property in the County subject to local taxation sufficient to provide
for the payment of the principal, premium, if any, and interest on this Bond as the same shall
become due which tax shall be without limitation as to rate or amount and shall be in addition to
all other taxes authorized to be levied in the County to the extent other funds of the County are
not lawfully available and appropriated for such purpose.
This Bond is duly authorized and issued in compliance with and pursuant to the
Constitution and laws of the Commonwealth of Virginia, including the Public Finance Act of
1991, Chapter 26, Title 15.2, Code of Virginia of 1950, as amended, and resolutions duly
Page 203

adopted by the Board of Supervisors of the County and the School Board of the County to
provide funds for capital projects for school purposes.
This Bond may be exchanged without cost, on twenty (20) days written notice from the
Virginia Public School Authority at the office of the Bond Registrar on one or more occasions
for one or more temporary bonds or definitive bonds in marketable form and, in any case, in
fully registered form, in denominations of $5,000 and whole multiples thereof, having an equal
aggregate principal amount, having principal installments or maturities and bearing interest at
rates corresponding to the maturities of and the interest rates on the installments of principal of
this Bond then unpaid. This Bond is registered in the name of the Virginia Public School
Authority on the books of the County kept by the Bond Registrar, and the transfer of this Bond
may be effected by the registered owner of this Bond only upon due execution of an assignment
by such registered owner. Upon receipt of such assignment and the surrender of this Bond, the
Bond Registrar shall exchange this Bond for definitive Bonds as hereinabove provided, such
definitive Bonds to be registered on such registration books in the name of the assignee or
assignees named in such assignment.
The principal installments of this Bond coming due on or before July 15, 2023 and the
definitive Bonds for which this Bond may be exchanged that mature on or before July 15, 2023
are not subject to prepayment or redemption prior to their stated maturities. The principal
installments of this Bond coming due on or after July 15, 2024, and the definitive Bonds for
which this Bond may be exchanged that mature on or after July 15, 2024 are subject to
prepayment or redemption at the option of the County prior to their stated maturities in whole or
in part, on any date on or after July 15, 2023, upon payment of the prepayment or redemption
prices (expressed as percentages of principal installments to be prepaid or the principal amount
Page 204

of the Bonds to be redeemed) set forth below plus accrued interest to the date set for prepayment
or redemption:
Dates Prices
July 15, 2023 through July 14, 2024.................................................. 101%
July 15, 2024 through July 14, 2025 ................................................... 100.5
July 15, 2025 and thereafter................................................................ 100;
Provided, however
All acts, conditions and things required by the Constitution and laws of the
Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of
this Bond have happened, exist and have been performed in due time, form and manner as so
required, and this Bond, together with all other indebtedness of the County, is within every debt
and other limit prescribed by the Constitution and laws of the Commonwealth of Virginia.
, that the Bonds shall not be subject to prepayment or redemption prior
to their stated maturities as described above without the prior written consent of the registered
owner of the Bonds. Notice of any such prepayment or redemption shall be given by the Bond
Registrar to the registered owner by registered mail not more than ninety (90) and not less than
sixty (60) days before the date fixed for prepayment or redemption.
THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK
Page 205

IN WITNESS WHEREOF, the Board of Supervisors of the County of Gloucester,
Virginia, has caused this Bond to be issued in the name of the County of Gloucester, Virginia, to
be signed by its Chairman or Vice-Chairman, its seal to be affixed hereto and attested by the
signature of its Clerk or any of its Deputy Clerks, and this Bond to be dated ____________,
2013.
COUNTY OF GLOUCESTER,
VIRGINIA
[SEAL]
ATTEST:
By: ________________________________
Clerk, Board of Supervisors of the
By: __________________________________
Chairman, Board of Supervisors of the
Page 206

ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
ASSIGNEE)
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE: ________________________________________
the within Bond and irrevocably constitutes and appoints
__________________________________________________ attorney to exchange said Bond
for definitive bonds in lieu of which this Bond is issued and to register the transfer of such
definitive bonds on the books kept for registration thereof, with full power of substitution in the
premises.
Dated: ______________________
Signature Guaranteed:
___________________________________
(NOTICE: Signature(s) must be guaranteed
by an "eligible guarantor institution"
meeting the requirements of the Bond
Registrar which requirements will include
membership or participation in STAMP or
such other "signature guarantee program" as
may be determined by the Bond Registrar in
addition to, or in substitution for, STAMP,
all in accordance with the Securities
Exchange Act of 1934, as amended.)
______________________________
Registered Owner
(NOTICE: The signature above must
correspond with the name of the Registered
Owner as it appears on the front of this
Bond in every particular, without alteration
or change.)
Page 207

Discussion Materials
County of Gloucester, VA
Prepared By
Davenport & Company LLC
Member NYSE - FINRA - SIPC
August 6, 2013
1
Page 208

DAVENPORT & COMPANY LLC
2
Background
 Gloucester County (the “County”) is currently in the process of planning for and financing the
Construction of Page Middle School.
 The Construction is estimated to cost $26 million and the construction bids are expected to be
received this month (i.e. July 2013).
 The Construction is expected to be financed as follows:
 Insurance Payout: $8,000,000 (To be Received)
 Qualified School Construction Bonds: 6,000,000 (Already Received)
 Remaining Required Financing: 12,000,000 (To be Received)
 Total: $26,000,000
 The County also expects a VDOT Revenue Sharing Grant of approximately $1,000,000.
 Additionally, the County has a $5,000,000 need for School Capital in its Adopted Fiscal Year 2014
Budget related to HVAC and Roof Projects.
Page 209

3
New Money Financings
 Following discussions with County Staff, Davenport & Company LLC (“Davenport”) has developed three models
examining Debt Affordability, which can be found on the following pages and are comprised of the following:
 Case 1: $12 Million New Money Financing (Page Middle School Only)
 Case 2: $17 Million New Money Financing (Page Middle School and HVAC/Roof Projects)
 Case 3: $12 Million New Money Financing (Page Middle School Only) with alternative principal repayment
structure
 All cases assume that the borrowing occurs as part of the Fall 2013 Virginia Public School Authority Pooled Bond
Issuance.
 A 20 Year Level Debt Service structure has been assumed for Cases 1 and 2; Case 3 assumes a structured principal
amortization.
 All Cases assume that 1¢ is equal to $400,000, and is not expected to grow in value.
 While the VPSA Schedule is not yet available, VPSA has typically closed its Fall Pool Bond Issuance in the
November timeframe (i.e. the County can likely expect to receive funds around this time).
Page 210

4
Debt Affordability Analysis – Case 1
A B C D E F G H I J K L
FY Existing DS(1)
FY2014
Remaining
Required
Financing(2)
Total
FY2014 Net
Budget
Appropriation(1,3)
FY2015 Tax
Increase(4)
Total Revenues
Available
Surplus/
(Deficit)
Capital Reserve
Utilized
Adjusted Surplus/
(Deficit)
Estimated
Incremental Tax
Equivalent
Capital Reserve
Fund Balance
2014 4,397,219 - 4,397,219 4,397,219 - 4,397,219 - - - -- -
2015 4,371,318 919,375 5,290,693 4,397,219 1,000,000 5,397,219 106,527 - 106,527 2.50 106,527
2016 4,260,521 919,750 5,180,271 4,397,219 1,000,000 5,397,219 216,948 - 216,948 -- 323,475
2017 4,234,812 921,300 5,156,112 4,397,219 1,000,000 5,397,219 241,108 - 241,108 -- 564,583
2018 4,101,627 921,950 5,023,577 4,397,219 1,000,000 5,397,219 373,642 - 373,642 -- 938,225
2019 2,884,809 921,700 3,806,509 4,397,219 1,000,000 5,397,219 1,590,711 - 1,590,711 -- 2,528,936
2020 2,644,223 920,550 3,564,773 4,397,219 1,000,000 5,397,219 1,832,446 - 1,832,446 -- 4,361,382
2021 2,633,104 918,500 3,551,604 4,397,219 1,000,000 5,397,219 1,845,616 - 1,845,616 -- 6,206,998
2022 2,627,046 920,438 3,547,483 4,397,219 1,000,000 5,397,219 1,849,736 - 1,849,736 -- 8,056,734
2023 2,595,417 921,250 3,516,667 4,397,219 1,000,000 5,397,219 1,880,552 - 1,880,552 -- 9,937,286
2024 2,583,412 920,938 3,504,349 4,397,219 1,000,000 5,397,219 1,892,870 - 1,892,870 -- 11,830,156
2025 1,851,370 919,500 2,770,870 4,397,219 1,000,000 5,397,219 2,626,349 - 2,626,349 -- 14,456,506
2026 1,839,343 916,938 2,756,281 4,397,219 1,000,000 5,397,219 2,640,939 - 2,640,939 -- 17,097,445
2027 1,824,937 918,138 2,743,075 4,397,219 1,000,000 5,397,219 2,654,145 - 2,654,145 -- 19,751,590
2028 1,319,919 917,988 2,237,907 4,397,219 1,000,000 5,397,219 3,159,313 - 3,159,313 -- 22,910,902
2029 935,670 921,375 1,857,045 4,397,219 1,000,000 5,397,219 3,540,175 - 3,540,175 -- 26,451,077
2030 936,032 918,300 1,854,332 4,397,219 1,000,000 5,397,219 3,542,887 - 3,542,887 -- 29,993,964
2031 939,233 918,763 1,857,995 4,397,219 1,000,000 5,397,219 3,539,224 - 3,539,224 -- 33,533,188
2032 307,256 917,650 1,224,906 4,397,219 1,000,000 5,397,219 4,172,314 - 4,172,314 -- 37,705,502
2033 307,257 919,850 1,227,107 4,397,219 1,000,000 5,397,219 4,170,113 - 4,170,113 -- 41,875,614
2034 307,257 920,250 1,227,507 4,397,219 1,000,000 5,397,219 4,169,713 - 4,169,713 -- 46,045,327
2035 297,235 - 297,235 4,397,219 1,000,000 5,397,219 5,099,985 - 5,099,985 -- 51,145,312
Total 48,199,016 18,394,500 66,593,516 Total - Total TaxEffect 2.50¢
(1)Assumes the Federal Subsidies on the QSCBs are equal to 91.3% of the interest payments on the QSCBs, per the County's Budget; also includes the VRS Refunding Note.
(2)Assumes the $12,000,000 FY 2014 Remaining Required Financing is borrowed at 4.5% over 20 years with debt service payments beginning in FY 2015.
(3)Assumes the County budgets its FY 2014 Debt Service going forward.
(4)Assumes the value of 1 penny is equal to $400,000 and does not grow over time.
Revenues Available for Debt ServiceDebt Service Requirements Debt Service Cash Flow Surplus (Deficit)
Page 211

0%
2%
4%
6%
8%
10%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Page Middle
Budgeted/Projected Utility Transfer
Existing
Policy
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Page Middle
Existing
Policy
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Page Middle
Existing
Policy
5
Key Debt Ratios – Case 1
10-Year Payout Ratio
Debt per Capita
Debt to Assessed Value
Debt Service vs. Expenditures
Fiscal Payout
Year Ratio
2014 60.1%
2015 63.5%
2016 65.7%
2017 68.2%
2018 71.4%
2019 73.9%
2020 76.9%
2021 80.7%
2022 85.4%
2023 88.5%
2024 92.7%
2025 98.4%
2026 100.0%
2027 100.0%
2028 100.0%
2029 100.0%
2030 100.0%
2031 100.0%
2032 100.0%
2033 100.0%
2034 100.0%
2035 100.0%
Page 212

6
A B C D E F G H I J K L M
FY Existing DS(1)
FY2014
Remaining
Required
Financing(2)
FY2014
HVAC/Roof
Repair
Financing(3)
Total
FY2014 Net
Budget
Appropriation(1,4)
FY2015 Tax
Increase(5)
Total Revenues
Available
Surplus/
(Deficit)
Capital Reserve
Utilized
Adjusted Surplus/
(Deficit)
Estimated
Incremental Tax
Equivalent
Capital Reserve
Fund Balance
2014 4,397,219 - - 4,397,219 4,397,219 - 4,397,219 - - - -- -
2015 4,371,318 919,375 383,073 5,673,766 4,397,219 1,400,000 5,797,219 123,454 - 123,454 3.50 123,454
2016 4,260,521 919,750 383,229 5,563,500 4,397,219 1,400,000 5,797,219 233,719 - 233,719 -- 357,173
2017 4,234,812 921,300 383,875 5,539,987 4,397,219 1,400,000 5,797,219 257,233 - 257,233 -- 614,406
2018 4,101,627 921,950 384,146 5,407,723 4,397,219 1,400,000 5,797,219 389,496 - 389,496 -- 1,003,902
2019 2,884,809 921,700 384,042 4,190,550 4,397,219 1,400,000 5,797,219 1,606,669 - 1,606,669 -- 2,610,571
2020 2,644,223 920,550 383,563 3,948,336 4,397,219 1,400,000 5,797,219 1,848,884 - 1,848,884 -- 4,459,455
2021 2,633,104 918,500 382,708 3,934,312 4,397,219 1,400,000 5,797,219 1,862,908 - 1,862,908 -- 6,322,362
2022 2,627,046 920,438 383,516 3,930,999 4,397,219 1,400,000 5,797,219 1,866,221 - 1,866,221 -- 8,188,583
2023 2,595,417 921,250 383,854 3,900,521 4,397,219 1,400,000 5,797,219 1,896,698 - 1,896,698 -- 10,085,281
2024 2,583,412 920,938 383,724 3,888,073 4,397,219 1,400,000 5,797,219 1,909,146 - 1,909,146 -- 11,994,427
2025 1,851,370 919,500 383,125 3,153,995 4,397,219 1,400,000 5,797,219 2,643,224 - 2,643,224 -- 14,637,652
2026 1,839,343 916,938 382,057 3,138,338 4,397,219 1,400,000 5,797,219 2,658,882 - 2,658,882 -- 17,296,533
2027 1,824,937 918,138 382,557 3,125,632 4,397,219 1,400,000 5,797,219 2,671,588 - 2,671,588 -- 19,968,121
2028 1,319,919 917,988 382,495 2,620,402 4,397,219 1,400,000 5,797,219 3,176,818 - 3,176,818 -- 23,144,939
2029 935,670 921,375 383,906 2,240,951 4,397,219 1,400,000 5,797,219 3,556,268 - 3,556,268 -- 26,701,207
2030 936,032 918,300 382,625 2,236,957 4,397,219 1,400,000 5,797,219 3,560,262 - 3,560,262 -- 30,261,469
2031 939,233 918,763 382,818 2,240,813 4,397,219 1,400,000 5,797,219 3,556,406 - 3,556,406 -- 33,817,876
2032 307,256 917,650 382,354 1,607,260 4,397,219 1,400,000 5,797,219 4,189,960 - 4,189,960 -- 38,007,835
2033 307,257 919,850 383,271 1,610,378 4,397,219 1,400,000 5,797,219 4,186,842 - 4,186,842 -- 42,194,677
2034 307,257 920,250 383,438 1,610,944 4,397,219 1,400,000 5,797,219 4,186,275 - 4,186,275 -- 46,380,952
2035 297,235 - - 297,235 4,397,219 1,400,000 5,797,219 5,499,985 - 5,499,985 -- 51,880,937
Total 48,199,016 18,394,500 7,664,375 74,257,891 Total - Total TaxEffect 3.50¢
(2)Assumes the $12,000,000 FY 2014 Remaining Required Financing is borrowed at 4.5% over 20 years with debt service payments beginning in FY 2015.
(3)Assumes the $5,000,000 FY 2014 HVAC/Roof Financing is borrowed at 4.5% over 20 years with debt service payments beginning in FY 2015.
Page 213

0%
2%
4%
6%
8%
10%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
HVAC/Roof
Page Middle
Existing
Policy
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
HVAC/Roof
Page Middle
Existing
Policy
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
HVAC/Roof
Page Middle
Existing
Policy
7
Debt per Capita
Fiscal Payout
Year Ratio
2014 57.7%
2015 61.1%
2016 63.3%
2017 65.8%
2018 69.0%
2019 71.6%
2020 74.7%
2021 78.7%
2022 83.6%
2023 87.3%
2024 92.1%
2025 98.6%
2026 100.0%
2027 100.0%
2028 100.0%
2029 100.0%
2030 100.0%
2031 100.0%
2032 100.0%
2033 100.0%
2034 100.0%
2035 100.0%
Page 214

8
A B C D E F G H I J K L
FY Existing DS(1)
FY2014
Remaining
Required
Financing(2)
Total
FY2014 Net
Budget
Appropriation(1,3)
FY2015 Tax
Increase(4)
Total Revenues
Available
Surplus/
(Deficit)
Capital Reserve
Utilized
Adjusted Surplus/
(Deficit)
Estimated
Incremental Tax
Equivalent
Capital Reserve
Fund Balance
2014 4,397,219 - 4,397,219 4,397,219 - 4,397,219 - - - -- -
2015 4,371,318 825,000 5,196,318 4,397,219 800,000 5,197,219 902 - 902 2.00 902
2016 4,260,521 933,250 5,193,771 4,397,219 800,000 5,197,219 3,448 - 3,448 -- 4,350
2017 4,234,812 935,250 5,170,062 4,397,219 800,000 5,197,219 27,158 - 27,158 -- 31,508
2018 4,101,627 941,350 5,042,977 4,397,219 800,000 5,197,219 154,242 - 154,242 -- 185,750
2019 2,884,809 941,325 3,826,134 4,397,219 800,000 5,197,219 1,371,086 - 1,371,086 -- 1,556,836
2020 2,644,223 940,400 3,584,623 4,397,219 800,000 5,197,219 1,612,596 - 1,612,596 -- 3,169,432
2021 2,633,104 938,575 3,571,679 4,397,219 800,000 5,197,219 1,625,541 - 1,625,541 -- 4,794,973
2022 2,627,046 940,850 3,567,896 4,397,219 800,000 5,197,219 1,629,324 - 1,629,324 -- 6,424,297
2023 2,595,417 942,000 3,537,417 4,397,219 800,000 5,197,219 1,659,802 - 1,659,802 -- 8,084,099
2024 2,583,412 942,025 3,525,437 4,397,219 800,000 5,197,219 1,671,782 - 1,671,782 -- 9,755,881
2025 1,851,370 940,925 2,792,295 4,397,219 800,000 5,197,219 2,404,924 - 2,404,924 -- 12,160,806
2026 1,839,343 938,700 2,778,043 4,397,219 800,000 5,197,219 2,419,176 - 2,419,176 -- 14,579,982
2027 1,824,937 940,350 2,765,287 4,397,219 800,000 5,197,219 2,431,932 - 2,431,932 -- 17,011,915
2028 1,319,919 940,650 2,260,569 4,397,219 800,000 5,197,219 2,936,650 - 2,936,650 -- 19,948,565
2029 935,670 944,600 1,880,270 4,397,219 800,000 5,197,219 3,316,950 - 3,316,950 -- 23,265,514
2030 936,032 941,975 1,878,007 4,397,219 800,000 5,197,219 3,319,212 - 3,319,212 -- 26,584,727
2031 939,233 943,000 1,882,233 4,397,219 800,000 5,197,219 3,314,987 - 3,314,987 -- 29,899,713
2032 307,256 947,450 1,254,706 4,397,219 800,000 5,197,219 3,942,514 - 3,942,514 -- 33,842,227
2033 307,257 950,100 1,257,357 4,397,219 800,000 5,197,219 3,939,863 - 3,939,863 -- 37,782,089
2034 307,257 930,475 1,237,732 4,397,219 800,000 5,197,219 3,959,488 - 3,959,488 -- 41,741,577
2035 297,235 - 297,235 4,397,219 800,000 5,197,219 4,899,985 - 4,899,985 -- 46,641,562
Total 48,199,016 18,698,250 66,897,266 Total - Total TaxEffect 2.00¢
(2)Assumes the $12,000,000 FY 2014 Remaining Required Financing is borrowed at 4.5% over 20 years with structured debt service payments beginning in FY 2015.
Page 215

0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Page Middle
Existing
Policy
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
0%
2%
4%
6%
8%
10%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Page Middle
Existing
Policy
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Page Middle
Existing
Policy
9
Debt per Capita
Fiscal Payout
Year Ratio
2014 60.0%
2015 63.4%
2016 65.6%
2017 68.2%
2018 71.3%
2019 73.9%
2020 76.8%
2021 80.6%
2022 85.3%
2023 88.5%
2024 92.7%
2025 98.4%
2026 100.0%
2027 100.0%
2028 100.0%
2029 100.0%
2030 100.0%
2031 100.0%
2032 100.0%
2033 100.0%
2034 100.0%
2035 100.0%
Page 216

Observations
 Overall, this presentation has discussed capital, rather than focusing on operating costs. Any
additional/unfunded operating costs would be additive to the proposed tax impact model;
 Debt Service on the $12 million Page Middle School Financing is estimated to have an impact that
is roughly equivalent to 2.0¢ - 2.5¢ pennies (assuming each penny is worth $400,000);
 Debt Service attributable to the $5 million HVAC and Roof Projects is estimated to have an
additional 1¢ equivalent impact, or 3.0 ¢ - 3.5¢ when combined with the Page Financing; and,
 The County has historically managed its debt in a conservative fashion. Having policies in place is
seen as a positive from a credit rating and “Best Practice” perspective, and the County should strive
to follow these policies in its operating and capital planning efforts.
10
Page 217

Next Steps
11
Date Action
 July 2, 2013 County Board considers approval of Preliminary Authorizing Resolution.
 July 9, 2013 School Board considers approval of VPSA application.
 August 6, 2013 County Board conducts Public Hearing.
 August Timeframe VPSA application submitted.
 September 3, 2013 County Board considers final approval of the financing.
 Oct./Nov. Timeframe VPSA Bonds are sold.
 Nov./Dec. Timeframe VPSA Bonds are closed and funds are available for the Project.
Page 218

Disclaimer
Unless the enclosed material specifically addresses Davenport & Company LLC (“Davenport”) provision of financial advisory services or investment advisory services, or Davenport has an agreement with
the recipient to provide such services, the recipient should assume that Davenport is acting in the capacity of an underwriter or placement agent.
The Municipal Securities Rulemaking Board (“MSRB”) Rule G-17 requires an underwriter to deal fairly at all times with both municipal issuers and investors. The rule also requires an underwriter to
disclose that the underwriter’s primary role is to purchase securities with a view to distribution in an arm’s length commercial transaction with the issuer and the underwriter has financial and other interests
that differ from those of the issuer; unlike a municipal advisor, the underwriter does not have a fiduciary duty to the issuer under the federal securities laws and is, therefore, not required by federal law to
act in the best interest of the issuer without regard to its own financial or other interests; the underwriter has a duty to purchase securities from the issuer at a fair and reasonable price, but must balance that
duty with its duty to sell municipal securities to investors at prices that are fair and reasonable; the underwriter will review the official statement of the issuer’s securities in accordance with, and as part of,
its responsibilities to investors under the federal securities laws, as applied to the facts and circumstances of the transaction.
Davenport’s compensation when serving as an underwriter is normally contingent on the closing of a transaction. Clients generally prefer this arrangement so they are not obligated to pay a fee unless the
transaction is completed. However, MSRB Rule G-17 requires an underwriter to disclose that compensation that is contingent on the closing of a transaction or the size of a transaction presents a conflict
of interest, because it may cause the underwriter to recommend a transaction that is unnecessary or to recommend that the size of the transaction be larger than is necessary.
This material was prepared by investment banking, or other non-research personnel of Davenport. This material was not produced by a research analyst, although it may refer to a Davenport research
analyst or research report. Unless otherwise indicated, these views (if any) are the author’s and may differ from those of the Davenport fixed income or research department or others in the firm.
This material may have been prepared by or in conjunction with Davenport trading desks that may deal as principal in or own or act as market maker or liquidity provider for the securities/instruments
mentioned herein. The trading desk may have accumulated a position in the subject securities/instruments based on the information contained herein. Trading desk materials are not independent of the
proprietary interests of Davenport, which may conflict with your interests. Davenport may also perform or seek to perform financial advisory, underwriting or placement agent services for the issuers of the
securities and instruments mentioned herein.
This material has been prepared for information purposes only and is not a solicitation of any offer to buy or sell any security/instrument or to participate in any trading strategy. Any such offer would be
made only after a prospective participant had completed its own independent investigation of the securities, instruments or transactions and received all information it required to make its own investment
decision, including, where applicable, a review of any offering circular or memorandum describing such security or instrument. That information would contain material information not contained herein
and to which prospective participants are referred. This material is based on public information as of the specified date, and may be stale thereafter. We have no obligation to tell you when information
herein may change. We make no representation or warranty with respect to the completeness of this material. Davenport has no obligation to continue to publish on the securities/instruments mentioned
herein.
Any securities referred to in this material may not have been registered under the U.S. Securities Act of 1933, as amended, and, if not, may not be offered or sold absent an exemption therefrom. Recipients
are required to comply with any legal or contractual restrictions on their purchase, holding, sale, exercise of rights or performance of obligations under any securities/instruments transaction.
The securities/instruments discussed in this material may not be suitable for all investors. This material has been prepared and issued by Davenport for distribution to market professionals and institutional
investor clients only. Other recipients should seek independent financial advice prior to making any investment decision based on this material. This material does not provide individually tailored
investment advice or offer tax, regulatory, accounting or legal advice. Prior to entering into any proposed transaction, recipients should determine, in consultation with their own investment, legal, tax,
regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences, of the transaction. You should consider this material
as only a single factor in making an investment decision.
The value of and income from investments and the cost of borrowing may vary because of changes in interest rates, foreign exchange rates, default rates, prepayment rates, securities/instruments prices,
market indexes, operational or financial conditions or companies or other factors. There may be time limitations on the exercise of options or other rights in securities/instruments transactions. Past
performance is not necessarily a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. Actual events may differ from those assumed and
changes to any assumptions may have a material impact on any projections or estimates. Other events not taken into account may occur and may significantly affect the projections or estimates. Certain
assumptions may have been made for modeling purposes only to simplify the presentation and/or calculation of any projections or estimates, and Davenport does not represent that any such assumptions
will reflect actual future events. Accordingly, there can be no assurance that estimated returns or projections will be realized or that actual returns or performance results will not materially differ from
those estimated herein. Some of the information contained in this document may be aggregated data of transactions in securities or other financial instruments executed by Davenport that has been
compiled so as not to identify the underlying transactions of any particular customer. This material may not be sold or redistributed without the prior written consent of Davenport.
Version 07/24/13 CH TC
Page 219

Finance Department
6467 Main Street
Interoffice Memorandum
From: Nickie C. Champion, Director of Financial Services
CC: Howard B. Kiser, Ed.D., Superintendent of Schools
Brenda G. Garton, County Administrator
Joanne C. Wright, Director of Budget and Finance, GCPS
Date: July 8, 2013
Re: School HVAC and Roof Replacement Capital Program
It came to my attention at the July 2nd
Board meeting that I had not provided sufficient materials for
you to make an informed decision on the possible $5.0 million school borrowing request for HVAC
and school roof needs. In order to rectify that issue, I would like to provide the following summary
of events and supporting documents:
• One very important financial planning tool for local governments is a Capital Improvements
Program. Investments in capital infrastructure, facilities, and equipment are quite often
large and very expensive. Special planning, financing, and management procedures are
called for to ensure that the projects and acquisitions are needed, well designed, and
efficiently implemented (meaning the money we invest in capital is well spent). In
Gloucester County, we define a capital project for planning purposes as a tangible asset
that has a useful life of at least 5 years or costs at least $50,000.
• The annual capital planning process begins each fall with all County departments, County
agencies, and the School Division being asked to submit any project they would like to see
considered for inclusion in the final adopted Capital Improvements Plan.
• The School Board approved their FY 2014-2018 Capital Improvements Plan on September
11, 2012. This plan was then forwarded to the County for inclusion in the capital planning
process and funding consideration.
Please see attachment A, which includes a summary of all submitted school projects as
well as itemized details for roof replacement and HVAC needs. The total five-year request
for roof replacements was $1,689,000 and HVAC was $21,155,308. For additional
planning purposes, the School Division also included amounts out beyond FY 2018.
• The County Administrator’s Capital Improvements Advisory Committee met to consider all
requests (School Board as well as County departments and agencies) late in 2012.
Page 220

Individual departments and agencies including the School Division made presentations to
the Committee. Attachment B includes a portion of the School Division’s presentation on
their HVAC and roof replacement program. The pictures show conditions of the three most
pressing School needs (Petsworth, Botetourt, and Achilles).
• The Committee made their final report to the Board of Supervisors at the January 15, 2013
meeting. Please see attachment C, which includes a two-page summary of all County and
School projects considered with the Committee’s recommended funding schedule. The
CIP Advisory Committee attempted to balance the considerable amount of money required
for projects, within the current debt policies of the County, with the needs of competing
demands for capital investment. The Committee’s final product included projects funded
from a mix of dedicated revenue, excess fund balance (cash funding), possible grants, and
issuing new debt.
Attachment D is the actual memorandum from the Capital Improvements Advisory
Committee to the Board of Supervisors. Included in the memorandum are many of the
reasons for making their recommendation. Please note in particular the area shaded in
yellow, which was the recommendation addressing the most critical school roofs and HVAC
issues (borrowing $5.0 million) and deferring the remainder of the project to a future year.
• Also included on attachment C are the many projects the Committee did not recommend for
immediate funding, but as you review the list many would be good candidates for pay-as-
you-go (cash funded) projects sometime in the future.
• Finally, the Board adopted the Capital Improvements Plan for FY 2014-2018 on April 16,
2013, and the plan has been posted to the County’s web site at
http://www.gloucesterva.info/Finance/BudgetsandFinancialReports/tabid/493/Default.aspx.
On that same date, the Board also adopted the FY 2014 budget, which included
appropriations for the first year of the Plan.
So, the request for $5.0 million in borrowing for the School HVAC needs and roof replacements is
the result of a bigger process (long term capital planning) and a bigger project (many dollars over
many years).
Use and Adequacy of Fund Balance
Another topic discussed at the July 2, 2013 Board meeting concerned the use of excess fund
balance in the General Fund for capital projects. I have attached a very conservative and very
preliminary estimate of our unrestricted/uncommitted fund balance at June 30, 2013 (Attachment
E). I expect us to do better than this estimate, but I hesitate to be very optimistic at this time.
As you review Attachment E, you will note that the FY 2014 budget includes the use of $1,408,551
in fund balance (meaning cash in this case) for capital projects, and this amount is reflected in the
estimated fund balance. Additionally, please note that I have included the recommendation of the
Capital Improvements Advisory Committee to use $750,000 in fund balance in FY 2015 to address
software needs of the Treasurer and Commissioner of the Revenue. While we have not publicly
discussed the project, the Committee felt it was very important to begin replacing the revenue
generating software in these offices. Our current software was installed in 1999 and is being
serviced by a vendor with questionable business viability.
The Board has had many discussions on what is an adequate level of unrestricted/uncommitted
fund balance. While we use fund balance and cash interchangeably, they are not the same. Fund
balance is the cumulative difference of all revenues and expenditures from the government’s
Page 221

creation. So, if you look at our governmental funds balance sheet, you will see that Fund Assets
minus Fund Liabilities equals Fund Balance. Because cash is a fund asset, it enters into the
equation and has an effect upon fund balance. Cash, however, is only one of a number of fund
assets and fund liabilities; therefore, it is possible for fund balance to remain unchanged while cash
balances decline or increase during a period of time. Having said this, generally sufficient fund
balances will ensure sufficient cash balances.
Some will question why fund balance is even necessary. Two important goals of local government
are the maintenance of a stable tax and revenue structure and the orderly delivery of services to
residents. Determining how well our local economy will perform and its subsequent impact on our
finances if one of the most difficult tasks we face. As we recently experienced, changes in
economic activity affect both the revenue structure and government spending. Of critical
importance to governments attempting to maintain fiscal stability is that the amount of revenue
continues to match or exceed the expenditures.
Although there is some maneuvering room in our budgets, particularly if we defer purchases of
goods, services, capital, etc, we should accept the fact that uncertainty exists and hedge against it
through the development and use of adequate levels of fund balance.
One contingency that deserves consideration deals with surprises – particularly negative ones.
Forward thinking and planning against unforeseen events, including potential revenue shortfalls
despite reasonable economic forecasts, are viewed positively. Sometimes, future challenges are
not completely unforeseen. In our case, when the state continues to contemplate initiatives that
limit or reduce revenue, we should have meaningful contingency plans against the possibility of
state ordered tax cuts. Likewise, since we are located in a zone subject to hurricanes, we should
have a reasonable contingency plan for dealing with financial, economic, and social challenges
posed by storm destruction.
We have a healthy agenda of large capital projects (Page Middle School, Thomas Calhoun Walker
Education Center, build-out of the Emergency Operations Center, and perhaps a school
roof/HVAC project). It would be reasonable to consider potential construction unknowns as a
contingency and good use of excess fund balance.
The adequacy of our unrestricted/uncommitted fund balance should include an examination of past
experiences, including an analysis of cash flows that look at revenue collection and spending
patterns. One financial challenge that we face twice each year deals with our cash flow (tax
collection practices vs. spending patterns). For instance, since we rely on a large percentage of
taxes collected late in the fiscal year, we rely on sufficient fund balance for cash flow purposes. As
long as we can meet our seasonal cash needs from working cash on hand, we can avoid issuing
cash flow notes (such as tax anticipation notes) and all the potential problems that come with
issuing notes in financial shortfalls.
Our County budgets in a conservative manner that benefits our community. We not only try to
come in under expenditures, we also try to reduce expenditures during those times we expect to
see revenue shortfalls. While governmental budgeting is always challenging in that requests for
funds will always exceed our limited resources, this philosophy has helped us prevent financial
distress during tough economic times. Additionally, looking back to FY 2005 this fiscal
conservatism has helped us accumulate and use over $10.0 million for cash capital projects. This
is no small feat, but as you review Attachment F, you will see that we have been able to make
substantial cash investments in several major projects. These are examples of debt avoidance by
funding capital projects with cash.
Please do not hesitate to contact me if you need further information or have any questions.
Page 222

Project Title
New Middle School Grades 6-8 *
Renovation of "A" Hall at GHS
Bus Compound Relocation/Garage Consolidation
Roofing Replacement at Various Schools
HVAC Replacement at Various Schools
Flooring Replacement at Peasley Middle and GHS
Casework Replacement at Achilles, Botetourt and Petsworth
Bathroom Renovations at Achilles, Botetourt, Petsworth and GHS
Sports Track at GHS
Tennis Courts at GHS
School Bus Replacement Program
New Achilles Bus Loop
Locker Replacement at Peasley Middle School
Playground Equipment Replacement at Botetourt and Petsworth
Gloucester County Public Schools
Long Range Capital Plan
FY 2014-2018
2014 2015 2016
15,467,397 11,978,266
300000 2,350,000 500,000
600,000 5,400,000
196,000 840,000 653,000
1,385,044 3,103,024 3,077,922
200,000
95,000
160000 200,000 200,000
233,820
400,250
1,663,450 450,885 185.764
70,000
360,000
GHS Automotive Shop·Apron Paving and Installation of Water/Oil Separator 130,000
Subtotals: 20,700,961 24,812,175 4,686,686
2017 2018
-
- -
5.010,500 8,578,818
861,012 492690
630,000
200,000
6,701,512 9,071,508
Note: The repurposlng of TC Walker Is not Included as It Is anticipated to be completed In 2012-2013 If funding Is approved by the Board of Supervisors•
• This project reflects estimated expenditures beyond 2013-2014 and Includes an additional $2 million for furniture and fixtures.
2014-2018 Costs
Total: Beyond 2018
27,445,663
3,150,000
6,000,000
1,689,000 9,966,149
21 ,155,308 18,566,934
200,000
95,000
560,000
233,820
400,250
3,653,801
700,000
200,000
360,000
130,000
65,972,842 28,533,083
Page 223
AttachmentA

Long Range Roof Replacement Capital Plan
Project Scope 2014 2015 2016 2017 2018 Total Costs
Beyond 2018
Reroof Bethel Entire Building 2,334,409
Reroof Botetourt Gym - 200,000
Reroof Petsworth Entire Building 35,000 840,000 875,000
ReroofGHS A-Hall, B-Hall 2,728,957
ReroofGHS C-Hall 1,808,345
Guidance, A-Hall, Foreign
Recoat Roofs GHS Language, 213 Gym, Senior Cafe 161,000 161,000 2515,243
Recoat Roofs GHS 1994 Addition 653,000 653,000
ReroofGHS Field House Addition - 139737
ReroofGHS Ori~inal Field House - 49,318
Reroof Transportation Entire Building - 190,140
Totals: - - - - - - - --~-
_19~()00 840,000 653,000 . - 1,689,000 9,966,149
Page 224

Costs Beyond
Project Scooe 2014 2016 2016 2017 2018 Total 2018
Achilles Replace 21
Original Area incremental units 749614 749,614
Botetourt 69 Replace (7) rooftop
AddHion package units 576582 576,582
Botetourt 73 Replace 6 increment
Addition units 338740 338,740
Replace 2 roof
Botetourt 73 mounted AlA heat
AddHion ~um~s 174,026 174,026
Botetourt 1 Roof top OX/Gas
CommEO ilSckage unit 7.5 ton 23,153 23153
2 Rooftop 12 ton Gas
Botetourt fired Ox Cooling roof
Gymnasium top ~ackaJltl unHs 63,206 63,206
Bus Garage Replace (2) hanging
Admin area 'gas heaters 9,337 9,337
Bus Garage 4 Ton Trane Gas/OX
Admin area lpackage unit 60,505 60,505
Facilities
fTechnology Replace 3 Package
Offices OX/Gas package units 53,604 53,604
Gloucestar H&V units and
High School Incremental coaches
Field house unit 77,922 77,922
Gloucester Complete renovation
High School of school 3,000,000 5,000000 2578,877 10,578,877
Gloucester "A","C",Cafe,lComm,
High School Audit. 5,885,832 5,885,832
GHSMini Mini splits 1 each c+
splits commons and 2 0 hall - 33,770
Peasley Replace 2 Trane AlA
Middle heat pumps admin
School area 35873 35,873
Peasley Replace bell and
Middle gossett heat
School exchanger 63,530
Peasley
Middle Replace approx 66 air
School to water heat pumps - 18,469,634
Petsworth
Office and
Classroom Replace 5 incremental
Areas AlA heat pumps 200000 2,054,478 2,254,478
Petsworth
Cooling Only Replace 4 cooling only
Units units 180356 180,356
Petsworth
Mechanical Replace chiller 82703 82703
Petsworth Petsworth labs Rms
Mini Splits 11 and 12 10,500 10,500
Totats 1386044 3103024 3077922 6010600 8678818 21166308 18666934
Page 225

NotCritical
RequestingDepartmentProjectNameTotalCostFY13-14FY14-15FY15-16FY16-17FY17-18RecommendedNotFundedDeferred
General(CountyAdministration)GloucesterActiveLifestyleCenter(OlderAdults)3,116,000$3,116,000$
General(CommofRevenue/Treasurer)TaxAssessment&ReceiptingSoftware750,000$750,000$
General(DIT)VoiceOverIP(VOIP)270,000$270,000$
General(CommunityEd)CableCommunicationsProgram409,563$200,000$209,563$
General(PublicWorks)CountyOfficeSpace(AnimalControl)322,000$322,000$
General(PublicWorks)ExpansiontoCarriageCourtStorageBldg69,000$69,000$
General(PublicWorks)B&GGarageRoofReplacement51,700$51,700$
General(PublicWorks)PropertyAcquisition856,000$856,000$
General(PublicWorks)HVACSystemControlUpgrades77,000$77,000$
Parks,Recreation&TourismAbingdonParkImprovements300,231$300,231$
Parks,Recreation&TourismArkParkImprovements1,221,154$1,221,154$
Parks,Recreation&TourismBeaverdamParkImprovements661,209$661,209$
Parks,Recreation&TourismParkandTrailMasterPlan82,500$82,500$
Parks,Recreation&TourismWoodvilleParkImprovements5,745,505$5,745,505$
WoodvillePark-SiteDesign&Engineering34,398$34,398$
WoodvillePark-ElectricInfrastructure600,000$600,000$
WoodvillePark-Water/SewerInfrastructure709,000$709,000$
PublicSafety(Jail)JailFencingUpgrades90,000$90,000$
PublicSafety(Sheriff)ComputerAidedDispatchSoftwareUpgrade250,000$250,000$
PublicSafety(Sheriff)ArmoredPersonnelCarrier230,000$230,000$
SchoolsRenovationof"A"HallatGHS3,150,000$3,150,000$
SchoolsBusCompoundRelocation/GarageConsolidation6,000,000$6,000,000$
SchoolsRoofingReplacementProgram814,000$814,000$
PetsworthRoof875,000$875,000$
SchoolsHVACReplacementProgram17,474,830$793,463$16,681,367$
PetsworthHVAC2,517,537$2,517,537$
BotetourtHVAC662,941$662,941$
AchillesHVAC500,000$500,000$
RecommendedFY2014-FY2018CIP
Page 247
Attachment C

Not Critical
Requesting Department Project Name Total Cost FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Recommended Not Funded Deferred
Recommended FY 2014 - FY 2018 CIP
Schools Flooring Replacement - Various Schools 200,000$ 200,000$
Schools Casework Replacement - Various Schools 95,000$ 95,000$
Schools Bathroom Renovations - Various Schools 560,000$ 560,000$
Schools Refurbish Sports Track at Gloucester High School 233,820$ 233,820$
Schools Refurbish Tennis Courts at Gloucester High 400,250$ 400,250$
Schools Locker Replacement at Peasley Middle 200,000$ 200,000$
Schools School Bus Replacement Program 3,653,801$ 3,653,801$
Schools Achilles Bus Loop 700,000$ 700,000$
Schools Voice Over IP (VOIP) 130,000$ 130,000$
Schools Replace Playground Equipment - Various Schools 360,000$ 360,000$
Schools Paving at GHS Auto Shop Apron and Water/Oil 130,000$ 130,000$
Total Requests 54,502,439$ 6,795,218$ 959,563$ -$ -$ -$ 3,653,801$ 4,766,950$ 38,326,907$
Funding FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
Fund Balance Transfer from General Fund 1,010,218$ 750,000$
Capital Fund Balance 85,000$
Debt 5,000,000$
Grants 300,000$
Revenue 200,000$ 209,563$
Operating Savings 200,000$
Total Funding 6,795,218$ 959,563$ -$ -$ -$
Page 248

County Administrator
6467 Main Street
P. O. Box 329
Date: January 9, 2013
Gloucester County Planning Commission
From: Christopher A Hutson, Board of Supervisors Representative to CIP Committee
Louise D. Theberge, Board of Supervisors Representative to CIP Committee
Ann F. Burruss, School Board Representative to CIP Committee
Natalie Q. Johnson, Planning Commission Representative to CIP Committee
Thomas J. Danaher, Citizen Representative to CIP Committee
Thomas W. Sawyer, Citizen Representative to CIP Committee, Chairman
Cc: Brenda G. Garton, County Administrator
Anne Ducey-Ortiz, Director of Planning
Nickie C. Champion, Director of Financial Services
Re: Capital Improvement Plan Recommendation
The Gloucester County Capital Improvements Plan Advisory Committee was formed at the direction
of Ms. Brenda G. Garton, County Administrator. Ms. Garton appointed two members of the Board of
Supervisors, one member of the Gloucester School Board, one member of the Planning Commission,
and two citizen representatives. A capital improvement plan is a multiyear plan, and the Capital
Improvements Plan Advisory Committee was conceived with the hope they would recommend and
revisit the plan on an annual basis.
We began our work on October 25, 2012, and this report contains our recommendations to the Board
of Supervisors for a Fiscal Year 2014-18 Capital Improvements Plan.
County departments and agencies, as well as Gloucester County Public Schools, submitted over $76.9
million in capital projects to be considered by the Committee. This amount included $54.4 million in
projects generally funded through the General Fund and $22.5 million in projects for the Utility Fund.
Over the course of several months, the Committee heard presentations from the requestors of
proposed projects, worked with the County’s financial advisors to gain an understanding on the
County’s current debt capacity and future financial position, and developed this recommendation for
future consideration by the Board of Supervisors.
Page 249

The CIP Committee recognizes that local governments devote a large portion of their budgets to
capital projects. This large financial investment is required to maintain and expand public facilities
and infrastructure. Ongoing service delivery can only be assured if adequate consideration is given to
capital needs. If we fail to maintain our capital stock, our facilities and infrastructure will deteriorate
until costly, constant maintenance is required, services are threatened, and community growth
stagnates or even declines. Whether our community is growing, stable, or losing population, it needs
to plan and budget for capital assets carefully to maintain existing infrastructure and to meet future
demands.
The CIP Committee is cognizant of the major capital projects being discussed at monthly Board
meetings (Page Middle School, Thomas Calhoun Walker Education Center, and completion of the
Emergency Communication Center basement); therefore, the Committee has not assigned funding
from the $3.1 million Capital Fund Committed for Future Capital Projects. Additionally, the
Committee is making a conservative recommendation for assignment of the excess fund balance in
the General Fund ($1.8 million over a two year period from the $3.4 million available). It is hoped
that this conservatism will assist the Board of Supervisors as they proceed with the many unknowns
relating to Page Middle School, Thomas Calhoun Walker Education Center, and the completion of the
Emergency Communications Center basement.
Additionally, the CIP Committee felt that while some projects were not included in their
recommendation, several are very desirable for our community’s economic development and quality
of life. In particular, projects that improve facilities for older adults and the continued development
of Woodville Park should be considered in future plans. It is the Committee’s hope that future plans
can begin to address these very important projects.
The CIP Committee attempted to balance the considerable amounts of money required for projects,
within the current debt policies of the County, with the needs of competing demands for capital
investment. Early in the process the Committee recognized that if all General Fund projects were
funded, it would result in an increase in the real estate tax rate of $.11, which doesn’t include the
effects of Page Middle School funding. The Committee not only reviewed specific projects for the
recommendation, but also discussed at length the issues and factors impacting the development of a
capital plan. In particular, the Committee reviewed the County’s capacity for issuing new debt,
discussed project alternatives to those presented, and discussed funding alternatives.
The CIP Committee recognizes that funding of a viable, on-going capital plan is a necessary starting
point for this process. To that end, the Committee recommends the Board of Supervisors:
• Invite Davenport and Company, the County’s financial advisors, to the Tuesday, January 15th
meeting of the Board of Supervisors to review the County’s current financial condition as well
as other information beneficial to adopting a formal capital plan.
• Use excess fund balance in the General Fund of $1.8 million for the most immediate, urgent
capital needs (as recommended by the Committee).
• Endorse a grant application through the Land and Water Conservation Fund, which can be
used to offset some of the costs associated with Woodville Park improvements.
• Use $85,000 of the Capital Fund Assigned by County Administrator for Park Projects to offset
some of the costs associated with Woodville Park improvements.
• Issue additional debt of $5.0 million to address the most critical school roofs and HVAC issues,
which is expected to require a $.01 increase in the real estate tax rate in calendar year 2014
Page 250

Gloucester, VA New School Bonds Issue - August, 2013

Gloucester, VA New School Bonds Issue - August, 2013

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (9)

Similar a Gloucester, VA New School Bonds Issue - August, 2013

Similar a Gloucester, VA New School Bonds Issue - August, 2013 (20)

Más de Chuck Thompson

Más de Chuck Thompson (20)

Último

Último (20)

Gloucester, VA New School Bonds Issue - August, 2013