Title
Resolution of the City of Hampton, Virginia Authorizing a Loan from the Commonwealth of Virginia Literary Fund Through The Virginia Board of Education in an Amount Not to Exceed $20,000,000 to Provide Funding to the School Board of Hampton City Schools for an Addition to Bethel High School
Purpose
PURPOSE/BACKGROUND:
See Discussion.
Discussion:
The Literary Fund is authorized under Article VIII, Section 8 of the Constitution of Virginia as a permanent and perpetual school fund to be used for public school purposes. The Code of Virginia and the Virginia Administrative Code establish public school construction and renovation through revolving loan funds as a primary purpose of the Literary Fund. The state appropriation act further authorizes the Board of Education to issue loans from the Literary Fund to local school boards that apply for loans, authorized by the locality and school board, for the purposes of a) erecting, altering, or enlarging school buildings; or b) refinancing prior indebtedness or obligations incurred by a locality on behalf of a school division which has an application for a Literary Fund loan for an approved project pending before the Board of Education.
The School Board, in cooperation with City Council, submitted an application to borrow up to $20,000,000 from the Literary Fund to build an approximately 38,000 square foot science wing addition to Bethel High School, and recently received notification that the application was accepted and the funds will be awarded. The Board of Education approved the application and a loan from the Literary Fund in an amount up to $20,000,000 at an annual rate of interest of two percent (2%) payable over 20 years. The debt will first be memorialized in a promissory note, and later converted to bonds. This project was included in the City's Fiscal Year 2024 budget. The funds will be paid to the City on reimbursable basis based on document provided to the City by the Schools.
The School B...
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