HomeMy WebLinkAboutCouncil Actions 05-02-91 SpMtg ROANOKE CITY COUNCIL
SPECIAL MEETING
Thursday, May 2, 1991
9:00 a.m.
Room 306, Municipal North
1. Call to Order.
2. Roll Call.
3. Invocation. Mayor Taylor.
4. Pledge of Allegiance to the Flag of the United States of
America.
5. Statement of purpose and welcome. ~ayor Taylor.
The purpose of the special meeting is to adopt a Resolution
authorizing the appropriate City officials to make applica-
tion to the Virginia Public School Authority for financing,
in an amount not to exceed $2,000,000.00, under the
Authority's Literary Fund Interest Rate Subsidy Program in
order to fund improvements and additions to Crystal Spring
Elementary School.
6. Adjournment.
MARY F. PARKER
City Clerk
CITY OF ROANOKE
OFFICE OF THE CITY CLERK
21§ Church Avenue, S W, Room 456
Roanoke, ¥irgm~a 24011
Telephone: (703) 981-2S41
May 3, 1991
SANDRA H. EAKIN
Deputy CiTy Clerk
File #467
Mr. W. Robert Herbert
City Manager
Roanoke, Virginia
Dear Mr. Herbert:
I am attaching copy of Resolution No. 30493-50291 authorizing the
appropriate City officials to make application to the Virginia
Public School Authority for financing under the Authority's
Literary Fund Interest Rate Subsidy Program. Resolution No.
30493-50291 was adopted by the Council of the City of Roanoke at
a special meeting held on Thursday, May 2, 1991.
Sincerely,
~4ary F. Parker,
City Clerk
CMC/AAE
MFP:ra
Enc.
pc:
Mr. Joel M. Schlanger, Director of Finance
Mr. James ~. Turner, Jr., Chairman, Roanoke City School
Board, P. O. Box 1689, Salem, Virginia 24153
Dr. Frank P. Tota, Superintendent of Schools, P. O. Box
13145, Roanoke, Virginia 24031
Mr. Richard L. Kelley, Executive for Business Affairs and
Clerk of the Board, P. O. Box 13105, Roanoke, Virginia 24031
IN THE COUNCIL OF THE CITY OF ROANOKE,
The 2nd Day of May, 1991.
No. 30493-50291.
VIRGINIA,
A RESOLUTION authorizing the appropriate City officials to make
application to the Virginia Public School AuThority for financing
under the Authority's Literary Fund Interest Rate Subsidy Program.
BE IT RESOLVED by the Council of the City of Roanoke that the City
~anager or the Assistant City ~anager is hereby authorized and
directed to make application to the Virginia Public School Authority
for financing in an amount not to exceed $2,000,000 under the
Authority's Literary Fund Interest Rate Subsidy Program in order to
fund improvements and additions to Crystal Spring Elementary School.
ATTEST:
City Clerk.
Office of the Mayor
April 25, 1991
The Honorable Vice-Mayor and Members
of the Roanoke City Council
Roanoke, Virginia
Dear Mrs. Bowles and Gentlemen:
Pursuant to a con~nunication under date of April 23, 1991, from
Mr. James M. Turner, Jr., Chairman, Roanoke City School Board,
with regard to a Literary Fund loan for Crystal Spring Elementary
School, I am calling a special joint meeting of the Roanoke City
Council with the Roanoke City School Board for Thursday, May 2,
1991, at 9:00 a.m., in the Social Services Conference Room,
Room 306, Municipal North, 215 Church Avenue, S. W., Roanoke,
Virginia.
The purpose of the special meeting will be to adopt a Resolution
authorizing the appropriate City officials to make application to
the Virginia Public School Authority for financing under the
Authority's Literary Fund Interest Rate Subsidy Program.
The Budget Study session of City Council and the School Board
will commence immediately following the adjournment of the
special meeting.
Sincerely,
Noel C. Taylor,~ayor
City of Roanoke
NCT: se
CC:
Mr. W. Robert Herbert, City Manager
Mr. Earl B. Reynolds, Jr., Assistant City Manager
Mr. Wilburn C. Dibling, Jr., City Attorney
Mr. Joel M. Schlanger, Director of Finance
Ms. Mary F. Parker, City Clerk
Room 452 Municipal Building 215 Church Avenue. S. W., Roanoke, Virginia 24011 (703) g81-2,M4
,,OI.~PARTMENT OF F' NANCI[
CITY OF ROANOKE, VA.
May 1, 1991
FROM:
SUBJECT:
Honorable Mayor and Members of City Council
Joel M. Schlanger
Literary Fund Loan for Crystal Spring Elementary School
I have reviewed the attached request of the School Board
to participate in Virginia Public
of a Literary Fund loan for
Elementary School.
School Authority bonds in lieu
renovation of Crystal Spring
Council has previously approved the application for the
Literary Fund loan. I recommend your concurrence with the request
of the School Board to participate in Virginia Public School
Authority bonds.
JMS/kp
Attachment
dtor of Flnan e~
-Roanoke
James ~ Turner, Jr., Chairman
Sallye T. Coleman, Vice Chairman
Morllyn C. Curtis
Charles W. Day
Thomas L On'
Finn D. Mncus
Velma B. Self
Frank P. Tol:a, Superintendent
Richard L Kelley, Clerk of the Board
City School Board
P.O Box 13105, Roanoke, Virginia 24031 · 703-981-2381
April 23, 1991
The Honorable Noel C. Taylor, Mayor
and Members of Roanoke City Council
Roanoke, VA
Dear Members of Council:
The state has run into difficulties in providing for the timely release of
Literary Fund loans. In order to expedite funding for approved Literary
Fund loans, the state has developed an interest rate subsidy program to
subsidize Virginia Public School Authority (VPSA) bonds that will replace the
Literary Fund loan for Crystal Spring Elementary School. A fact sheet on
this matter is attached for your information.
We were notified by the state of the proposed VPSA bond issue on April
22 and the state requires that VPSA bond resolutions be adopted by the City
and School Board prior to May 3. Because of the extremely short timeline
provided by the state and since City Council and the School Board have no
regularly scheduled meetings prior to May 3, it is requested that City Council
schedule adoption of the necessary VPSA bond resolution at a special called
meeting preceding the joint budget meeting to be held with the School Board
on May 2. The School Board also will be required to adopt a VPSA bond
resolution at its own special meeting.
The School Board requests that City Council schedule adoption of the
VPSA bond resolution in its May 2 call to meeting notice and authorize a
public hearing on the proposed VPSA bond issue at its May 20 meeting. We
appreciate the prompt attention given by City Council and the City Adminis-
tration in response to the short timeframe provided by the state in preparinq
for the VPSA bond issue. -
Sincerely,
Turner, Jr. ~
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Enc.
cc:
School Board Members
Dr. Frank P. Tota
Mr. Richard L. Kelley
Mr. ~'. Robert Herbert
Mr. Wilburn C. Dibling
Mr. Joel M. Schlanger
Excellence in Education
R. Kelley
April 23, 1991
FACT SHEET
Subject: Literary Fund Loan, Crystal Spring Elementary School
The Literary Fund loan of $2.0 million for Crystal Spring Elementary School was
approved by the state in June, 1990, and the loan was placed on the waiting list
for receipt of funds. The state projected that loan funds would be received in
July, 1991, with the first debt service payment scheduled for July,. 1992.
In order to balance the state budget the General Assembly recently transferred
$75.0 million from the Literary Fund. This transaction has created a cash flow
crisis for the Literary Fund and school divisions will be forced to wait an addi-
tional 6 to 12 months for receipt of their loan funds. It is now anticipated that
loan funds for Crystal Spring Elementary School would not be received until at
least January, 1992. '
To assist school divisions in need of their Literary Fund loan proceeds, the
General Assembly has approved a Virginia Public School Authority [VPSA) bond
sale with a Literary Fund interest rate subsidy. The bond sale would occur in
Ju y, 1991 and it would provide school divisions now waiting for a Literary Fund
loan with the amount approved for the loan in August, 1991. While the interest
rate on the bond issue is estimated to be 6.0% to 7.0%, the state interest rate
subsidy would result in a net interest rate to Roanoke City Schools equal to the
Literary Fund rate of 4.0%. The state will also provide $5,500 to cover the costs
of bond counsel.
The consequences of participating in the VPSA bond sale are as follows:
Capital funds would be received in August, 1991 rather than 6 to 12
months later preventing a future delay in elementary school renovation
projects.
Depending on the rate of interest, the principal amount for the bond
would be approximately $465,000 less than the Literary loan reducing the
amount of debt outstanding for the locality.
The estimated bond principal amount of $1,535,000 will not be applied
against the Iocality's Literary Fund loan ceiling of $20.0 million; thus
providing funding flexibility for future school projects.
A disadvantage to the bond sale is that debt service payment for the
Literary loan would not be due until July, 1992, while the bond issue
would require a debt service payment of approximately $36,445 in FY92.
Since no funds have been budgeted in FY92 for this payment, the School
Board initially must set aside approximately $36,445 of its $75,000
contingency fund to meet the payment.
Because of the short timetable set by the state, the School Board and City Coun-
cil must act on the VPSA bond resolution and application by May 2. The City
Attorney and Director of Finance have been informed of this matter and we are
now working with them to prepare the necessary bond documents.
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