Minutes 07/13/1999 - Laserfiche WebLink

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July 13, 1999 99 - 157 - Adoption of a resolution to authorize the rollover of $9.9 million of Public Utility Bond Anticipation Notes (BANs) which are scheduled to mature on August 15, 1999. The city has not yet issued the permanent financing for these BANs. It is therefore necessary to extend the maturity date of the bonds and renegotiate the terms and rate with Crestar Bank, the original issuer of the BANs, to mature on March 31, 2000. The permanent bonds are expected to be sold prior to the 2000 maturity date. Recommendation: · Adoption of a resolution to authorize the rollover of $9.9 million of Public Utility Bond Anticipation Notes (BANs). Purpose and Need: · On August 11, 1998, the City Council approved the issuance of $9.9 million in Public Utility BANs to provide the necessary cash flow for Public Utility capital projects prior to the issuance of bonds, the permanent financing. · The BANs are scheduled to mature on August 15, 1999. The City has not yet issued the permanent financing for these BANs. It is therefore necessary to extend the maturity date of these bonds and renegotiate the terms and rate with Crestar Bank, the original issuer of the BANs. · The new BANs will be scheduled to mature on March 31,2000. The permanent bonds are expected to be sold prior to the 2000 maturity date. Financial Impact: · Public Utilities has amounts budgeted for the payment of interest. · The BANs rate is lower than the expected rate of permanent financing and the issuance of BANs prevents the need to use operating cash for capital projects. Motion by Mr. Benn, and seconded by Mr. Pitts, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA, AUTHORIZING THE ISSUANCE OF $9,900,000 PRINCIPAL AMOUNT OF CITY OF PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION PUBLIC UTILITY BOND ANTICIPATION NOTES IN EXCHANGE FOR A LIKE PRINCIPAL AMOUNT OF CITY OF PORTSMOUTH, VIRGINIA, PUBLIC UTILITY BOND ANTICIPATION NOTES DATED AUGUST 12, 1998 AND MATURING ON AUGUST 15, 1999 AND APPROVING THE FORM AND OTHER DETAILS THEREOF; DELEGATING TO THE DEPUTY CITY MANAGER FOR FINANCE THE AUTHORITY TO DETERMINE THE RATE OF INTEREST TO BE BORNE BY SUCH NOTES; AUTHORIZING THE CITY MANAGER, THE DEPUTY CITY MANAGER FOR FINANCE AND THE CITY TREASURER TO TAKE ALL ACTIONS AS SHALL BE REQUIRED IN CONNECTION WITH THE ISSUANCE ND DELIVERY OF SUCH NOTES; AUTHORIZING THE CITY TREASURER TO EXECUTE SUCH NOTES; AND OTHERWISE PROVIDING WITH RESPECT TO THE ISSUANCE OF SUCH NOTES WHEREAS, the Council (the "Council") of the City of Portsmouth, Virginia (the "City"), on August 23, 1994 adopted an ordinance, entitled "AN ORDINANCE TO AUTHORIZE THE CITY OF PORTSMOUTH, VIRGINIA, TO CONTRACT A DEBT AND ISSUE TWENTY-TWO MILLION NINE HUNDRED THOUSAND DOLLARS ($22,900,000) PRINCIPAL AMOUNT OF CITY OF PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION PUBLIC UTILITY BONDS TO FINANCE THE COSTS OF CAPITAL IMPROVEMENTS, EXTENSIONS AND ADDITIONS TO THE REVENUE-PRODUCING WATER AND SEWER SYSTEM OF SUCH CITY, UNDER AND PURSUANT TO ARTICLE VII, SECTION 10(a)(2) OF THE CONSTITUTION OF VIRGINIA, 1971, AND CHAPTER 5.1 OF TITLE 15.1 OF THE CODE OF VIRGINIA, 1950, AND AUTHORIZING AND PROVIDING WITH RESPECT TO THE ISSUANCE AND SALE OF A LIKE PRINCIPAL AMOUNT OF CITY OF PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION PUBLIC UTILITY BOND ANTICIPATION NOTES IN ANTICIPATION OF