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(v) Section 15.1-227.7.3 of the Virginia Code <br />provides that the City has the power and is authorized to <br />refund any "bonds" previously issued by the City or for which <br />the City is responsible or may assume responsibility or <br />payment. <br /> <br /> (vi) The City is currently indebted to the Virginia <br />Retirement System for retirement benefits payable to current <br />and former employees of the City, including current and former <br />employees of the Portsmouth School System, which indebtedness <br />bears interest at the rate of eight per centum (8%) per annum <br />(such indebtedness, including the interest accrued thereon <br />subsequent to September 30, 1997, being referred to herein as <br />the "Existing VRS Obligation') <br /> <br /> (vii) The refunding of the Existing VRS <br />Obligation can be effected at a rate of interest lower than the <br />rate of interest currently borne by the Existing VRS Obligation <br />and thus will result in substantial debt service cost savings <br />to the City. <br /> <br /> (viii) In the judgment of this Council, it is <br />necessary and expedient to issue and sell not to exceed Eleven <br />Million Nine Hundred Thousand Dollars ($11,900,000) aggregate <br />principal amount of City of Portsmouth, Virginia, Taxable <br />General Obligation Refunding Bonds (the "Taxable General <br />Obligation Refunding Bonds"), for the purpose of providing <br />funds to refund all or a portion of the Existing VRS Obligation <br />and to pay the costs of issuing the Taxable General Obligation <br />Refunding Bonds. <br /> <br /> (ix) The Taxable General Obligation Refunding Bonds <br />shall be designated as "City of Portsmouth, Virginia, Taxable <br />General Obligation Refunding Bonds, Series 1997C" (the "Series <br />1997C Bonds"), and shall be offered and sold contemporaneously <br />with the Series 1997A Bonds and the Series 1997B Bonds. <br /> <br /> SECTION 2. Authorization of Issuance of Bonds. (a) <br />Pursuant to Chapter 5.1 of Title 15.1 of the Virginia Code, <br />recodified effective December 1, 1997 as Chap5er 26 of Title <br />15.2 of the Virginia Code, the same being the Public Finance <br />Act of 1991, and the Charter of the City, there are hereby <br />authorized to be issued and sold Twenty-Two Million Forty-Five <br />Thousand Dollars ($22,045,000) principal amount of general <br />obligation bonds of the City to be designated as "City of <br />Portsmouth, Virg!nla, General Obligation Public Improvement <br />Bonds" (the "Public Improvement Bonds"), for the purpose of <br />providing funds to pay the costs of the various public <br /> <br /> <br />