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:3:82
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<br />March 14.. 1978
<br />
<br />of virginia; Article VII, Section 10(a)(4), exempts the obligation from the debt limit of the
<br />City of Portsmouth. The City Manager recommends adoption."
<br />
<br /> On motion of Mr. Barnes and seconded by Mr. Early, the following resolution was adopted,
<br />and by the following vote:
<br />
<br />"A RESOLUTION CONTRACTING TO GUARANTEE FUNDS UP TO $526,000. TO THE SOUTHEASTERN
<br />PUBLIC SERVICE AUTHORITY OF VIRGINIA ON CERTAIN CONDITION; AUTHORIZING THE ISSU-
<br />ANCE OF $526,000. OF BONDS TO BE KNOWN AS GENERAL OBLIGATION BONDS FOR THE PURPOSE
<br />OF COMMUNITY SERVICES.
<br />
<br /> WHEREAS, the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia
<br />Beach and the counties of Isle of Wight and Southampton have heretofore created the Southeast,
<br />ern Public Service Authority of Virginia (the "Authority") pursuant to the provisions
<br />of the Virginia Water and Sewer Authorities Act, being Chapter 28, Title 15.1, Code of
<br />Virginia, 1950, as amended, for the purpose of providing for the acquisition, financing
<br />construction, operation and maintenance of a water system and a garbage and refuse collection
<br />and disposal system, which will be publicly owned and controlled regional projects within
<br />the meaning of Article VII, Section lO(a)(4) of the Constitution of Virginia; and
<br />
<br /> WHEREAS, the Southeastern Virginia Planning District Commission and Henningson, Durham
<br />~ Richardson have made preliminary investigations and studies and have prepared and filed
<br />with the Authority their March 1977 report entitled: "Resource Recovery Implementation
<br />Plan"; and
<br />
<br /> ~EREAS, the Authority has determined to provide for. the issuance at this time of
<br />its notes in the aggregate principal amount of One Million, Nine Hundred Thirty-one ($1,931,
<br />OOO.) Dollars for the purpose of providing funds for paying a part of the cost of planning
<br />and design of a;garbage and'refuse collection and disposal system; and
<br />
<br /> W~EREAS, %he councils of the cities of Franklin, Norfolk, Portsmouth, Suffolk and
<br />Virginia Beach have determined that in order to enhance the marketability of said notes
<br />to be issued by the Authority on account of such garbage and refuse collection and disposal
<br />system, said councils would require the power to contract obligations to provide payments
<br />over a period or periods of more than one year to the Authority to guarantee the payment
<br />of all or any part of the principal of and the interest on notes issued from time to time
<br />by the Authority which contract obligations would be an excluded indebtedness within the
<br />meaning of and for the purposes of Article VII, Section lO(a)[4) of the Constitution of
<br />Virginia; and
<br />
<br /> WHEREAS, the General Assembly of Virginia by Chapter 544 of the Acts of Assembly of
<br />1977 authorized the cities of Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach
<br />from time to time or at any time to contract obligations to provide payments over a period
<br />or periods of more.than one year to the Authority to guarantee the payment of ali or any
<br />part of the principal of and the interest on notes issued from time to time by the Authority
<br />on account of its garbage and refuse collection and disposal system and such contract obliga-
<br />tions shall be an excluded indebtedness within the meaning of and for the purposes of Article
<br />VII, Section lO(a)(4) of the Constitution of Virginia; and
<br />
<br /> WHEREAS, it is in the best interests of the City of Portsmouth to provide for a payment
<br />to the Authority to guarantee the payment of a part of the obligations of the Authority
<br />to be incurred by the issuance of said notes and in anticipation of the issuance of its
<br />revenue bonds; and :
<br />
<br /> WHEREAS, the City of Portsmouth has determined to contract an obligation to provide
<br />a payment to the Authority not earlier than three (3) years from the date hereof to guarantee
<br />the payment of Three Hundred TWenty-six Thousand ($326,000.) Dollars of the obligations
<br />to be incurred by the Authority by the issuance of said notes and in anticipation of the
<br />issuance of its revenue bonds, such contract obligations to be effective at such time as
<br />contract obligations have been incurred by the cities of Franklin, Norfolk, Portsmouth,
<br />Suffolk and Virginia Beach to provide payments to the Authority in the amounts of $23,000,
<br />$837,O00, $526,000, $140,OOOand $605,OO0, respectively.
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED by the Council Of the City of Portsmouth, Virginia:
<br />
<br /> 1. The City of Portsmoutbi:~e~e~Y';contracts to pay the authority Three Hundred Twenty-
<br />six Thousand ($326,000.) Dollars no earlier than Three (3) years from the date hereof to
<br />guarantee the payment of Three Hundred Twenty-six Thousand ($326,000) Dollars of the principal
<br />amount of said notes to the authority without the payment of any interest thereon, such
<br />payment to be an excluded indebtedness within the meaning of and for the purposes of Article
<br />VII, Section lo(a)(4) of the Constitution of Virginia.
<br />
<br /> 2. The full faith and credit of the City of Portsmouth shall be, and hereby is, irrevoc-
<br />ably pleadged to the payment of such contract obligation of Three Hundred Twenty-six Thousand
<br />($326,000.) Dollars, or any part thereof that may bedome due, and a tax sufficient to provide,
<br />for payment of such contract obligation shall be assessed, levied and collected at the
<br />same time and in the same manner as other taxes are assessed, levied and collected upon
<br />the property of the City of Portsmouth subject to taxation.
<br />
<br /> 3. For the purpose of funding such contract obligation, bonds of the City of Portsmouth
<br />are authorized to be issued to be known as General Obligation Bonds pursuant to the provision:
<br />of Chapter 5 of Title 15.1 of the Code of Virginia, 1950, as amended, and provisions of_
<br />law applicable thereto. The said bonds shall be Serial Bonds and shall be issued at one
<br />time and shall be in such form and of such denomination as the Council shall direct. Each
<br />
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