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LEE COUNTY <br />Committed Today for a Better Tomorrow <br />MEMORANDUM <br />TO: Richard Hayes, Chairman <br />Larry "Doc" Oldham <br />Robert Reives <br />Ed Paschal <br />Jamie Kelly <br />Linda Shook <br />Amy Dalrymple <br />FROM: John Crumpt <br />DATE: October 8, 2009 <br />RE: Special Meeting with the BOE <br />Bonds/Financing/ARRA <br />Several questions have been asked about where we stand on possible financing <br />options for the Lee County High School renovations. It would seem appropriate <br />to give an update on those options as we discuss the Lee County Board of <br />Education's plans with Jimmy Hite at the special meeting on October 12. <br />As I have communicated to the Board in the past, the issues surrounding the <br />zero interest bonds and the ARRA change daily. Although the County now has <br />authority to issue $4 million in Qualified Zone Academy Bonds (QZAB) and $3.98 <br />million in Qualified School Construction Bonds (QSCB), the IRS has not finalized <br />the rules for banking institutions to take advantage of the tax credits that go with <br />the purchase of these bonds. Therefore, at this time there is really only one <br />major player in the market, and the LGC continues to work with this bank and <br />others to develop a stronger market. For these reasons, I have not brought the <br />issue back to the Board. <br />In addition, we were recently notified that we are now eligible to sell Recovery <br />Zone Bonds which total over $10 million. A little over $4 million of these bonds <br />can be used for the high school. These bonds are not zero interest, but reduced <br />interest as the Federal Government agrees to pay 45 percent of the interest over <br />the life of the loan. Attached you will find the information on these bonds. <br />