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2002 AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF PORTSMOUTH, VIRGINIA GENERAL OBLIGATION REFUNDING BONDS. WHEREAS, the City Council has determined that it is advisable to issue and sell general obligation refunding bonds of the City (the 'Bonds ") in order to refund, redeem, or defease outstanding obligations of the City (the "Prior Obligations ") and to pay the costs of issuing the Bonds; and WHEREAS, no public hearing is required for the issuance of the Bonds under Section 15.2 -2606 of the Code of Virginia of 1950, as amended. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Portsmouth, Virginia: 1. Authorization of Bonds and Use of Proceeds. The City Council hereby determines that it is advisable and will benefit the inhabitants of the City through the promotion of their safety, health, welfare and prosperity to contract a debt and to issue and sell the Bonds. The issuance and sale of the Bonds in one or more series from time to time in accordance with this Ordinance are authorized. The proceeds from the sale of the Bonds shall be used to refund, redeem, or defease the Prior Obligations and to pay the costs of issuing the Bonds. 2. Pledge of Full Faith and Credit. The full faith and credit of the City are hereby irrevocably pledged for the payment of the principal of, premium, if any, and interest on the Bonds as the same become due and payable. The City Council shall levy annually an annual ad valorem tax upon all property in the City subject to local taxation sufficient to pay the principal of, premium, if any, and interest on the Bonds as the same shall become due for payment unless other funds are lawfully available and appropriated for the timely payment thereof 3. Designation of City Representative. For the purposes set forth in this Ordinance, the term "City Representative" means the City Manager and the Chief Financial Officer, either of whom may act. 4. Details and Sale of Bonds. The Bonds shall be issued and sold upon the terms established pursuant to this Ordinance and upon such other terms as may be determined in the manner set forth in this Ordinance. The Bonds shall be issued in fully registered form, shall be dated such date as the City Representative may approve, and shall be in denominations of $5,000 and integral multiples thereof. The Bonds shall be numbered from R -1 (or such other designation as the City Representative may approve) upwards consecutively. The Bonds shall be issued in one or more series in such aggregate principal amounts, and may be combined with other authorized obligations of the City, and shall mature or be subject to mandatory sinking fund redemption on such dates and in such amounts as the City Representative may approve, provided that (i) the final maturity of the Bonds shall not be later than the end of the last fiscal year in which any refunded Prior Obligation matures, (ii) the sale of any series of the Bonds shall result in an aggregate net present value debt service savings of not less than 3.0% of the par amount of the Prior Obligations to be refunded and (iii) the purchase price of any series of the Bonds shall not be less than 98% of the par amount of such series of the Bonds, not taking into account any original issue discount or any bond insurance premium.