1984 Ordinances - Laserfiche WebLink

Home Browse Search

Section 1. (a) Pursuant to Article VII, Section 10 (a) (2) of the 1970 Constitution of Virginia, and Chapter 5 of Title I5.1 of the Code of Virginia, in order to make certain capital improvements~ extensions and additions to the water and sewage system, which constitutes a revenue producing undertaking of the City, it is expedient that the City of Portsmouth shall borrow the sum of Nine Million, Seven Hundred Fifty Thousand Dollars ($9,750,000), and there shall be issued in the name of and on behalf of the City of Portsmouth, Virginiar Nine Million, Seven ~undred F±fty Thousand Dollars ($9,750,000) of Public Utility Bends, and the proceeds arising from the sale of said bonds, or any of them, shall be applied to the payment of the costs of such improvements, extensions and additions and to no other purpose. (b) As determined by resolution of the Council, or determined by the Director of Finance of the City which determination shall be approved or ratified by resolution of the Council adopted prior to or at the time of sale of the particular Bonds: the Bonds may be sold in their entirety at one time, or in part from time to time, at any time and the Bonds of each issue shall be in such form, be of such denominations, be payable at such time or times not exceeding forty [40~ years from their date, bear interest at a maximm~ rate of interest not exceeding the maximum note authorized by law at the 'time of the sale of such Bonds, be sold in such ~anner and have-such other details as are deemed necessary or advisable. The City may sell all or part of the Bonds alone or contemporaneously with any other general obligation bonds or with any general obligation bond anticipation notes of the City. (C) The principal and interest of said bonds shall be payable from ad valorem taxes without limitation of rate or amount, if the revenues of the water and sewage system rundertaking are insufficient for that purpose. Said bonds are to be issued pursuant to Article VI!, Section 10 Ca) (2~ of the Constitution of Virginia, and are not to be included in determining the power of the City to incur in- debtedness within the limitation prescribed by Article VII, Section 10 (al of the Constitution of Virginia, but from and after five years from the date of the election on the question of the issuance of said bonds, whenever and for so long as such revenue producing undertaking fails to produce sufficient revenue to pay for cost of operation and administration [including interest on bonds issued therefor) and the cost of insurance against loss by injury t'o persons or property and an annual amount to be placed into a sinking fund sufficient to pay, at or before maturity, all bonds issued on account of said undertaking, all such bonds out- standing shall be included in determining the limitation of the power of the City to incur indebtedness.