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July 13, 1999
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<br />THE ISSUANCE AND RECEIPT OF THE PROCEEDS OF SALE OF SUCH BONDS",
<br />authorizing the issuance of $22,900,000 principal amount of City of Portsmouth,
<br />Virginia, General Obligation Public Utility Bonds for the purpose of providing funds to
<br />pay the costs of capital improvements, extensions and additions to the revenue-
<br />producing water and sewer system of the City and authorizing the issuance of a like
<br />principal amount of City of Portsmouth, Virginia, General Obligation Public Utility Bond
<br />Anticipation Notes in anticipation of the issuance of such Bonds (the "Authorizing
<br />Ordinance"); and
<br />
<br />WHEREAS, in accordance with the provisions of Article VII, Section 10(a)(2) of the
<br />Constitution of Virginia, 1971, the Authorizing Ordinance was approved by the majority
<br />of the qualified voters of the City voting upon the question of their issuance at an
<br />election held on November 8, 1994; and
<br />
<br />WHEREAS, of the $22,900,000 principal amount of City of Portsmouth, Virginia,
<br />General Obligation Public Utility Bonds authorized for issuance under the Authorizing
<br />Ordinance, $13,000,000 principal amount of such Bonds, dated January 1, 1996 and
<br />bearing the series designation "Series 1996", were issued on February 13, 1996, and
<br />$9,900,000 principal amount of the City of Portsmouth, Virginia, General Obligation
<br />Public Utility Bonds authorized for issuance under the Authorizing Ordinance are
<br />authorized but unissued as of the date hereof; and
<br />
<br />WHEREAS, Section 2 of the Authorizing Ordinance authorizes the City to issue and sell
<br />general obligation public utility bond anticipation notes of the City in an aggregate
<br />principal amount equal to the principal amount of the Bonds authorized for issuance
<br />thereunder, the sale of any such general obligation public utility bond anticipation notes
<br />and the form and other details thereof to be approved, ratified and confirmed by the
<br />Council; and
<br />
<br />WHEREAS, on August 12, 1998 the City issued and sold $9,900,000 principal amount
<br />of the General Obligation Public Utility Bond Anticipation Notes, dated August 12, 1998
<br />and maturing on August 15, 1999 (the "1998 Notes"), authorized for issuance by the
<br />Authorizing Ordinance in anticipation of the issuance of the Bonds authorized for
<br />issuance thereunder; and
<br />
<br />WHEREAS, the City has determined to issue to the purchaser of the 1998 Notes
<br />$9,900,000 principal amount of General Obligation Public Utility Bond Anticipation
<br />Notes, dated August 15, 1999 and maturing on March 31, 2000 (the "1999 Notes"), in
<br />exchange for the 1998 Notes and has requested the Council to adopt a resolution to
<br />authorized and approve the issuance of the 1999 Notes and the form and other details
<br />thereof;
<br />
<br />NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
<br />PORTSMOUTH, VIRGINIA:
<br />
<br />1. In accordance with and pursuant to Section 2 of the Authorizing Ordinance, the
<br />Council hereby approves the issuance to Crestar Securities Corporation of $9,900,000
<br />principal amount of City of Portsmouth, Virginia, General Obligation Public Utility Bond
<br />Anticipation Notes (the "1999 Notes") in exchange for the 1998 Notes. The 1999 Notes
<br />shall be dated August 15, 1999 and shall mature on March 31, 2000. The 1999 Notes
<br />shall not be subject to redemption prior to their stated maturity. There is hereby
<br />delegated to the Deputy City Manager for Finance of the City the authority to determine
<br />the rate of interest per annum the 1999 Notes shall bear, such interest to be calculated
<br />on the basis of a 365-day year and the actual number of days between the date of the
<br />1999 Notes and the stated maturity date thereof; provided, however, that such rate of
<br />interest shall not exceed five percent (5%) per annum. The 1999 Notes shall be
<br />numbered from No. R-1 upwards in order of issuance, shall be of the denomination of
<br />$1,000,000 each or any integral multiple thereof (except that one 1999 Note may be
<br />issued in the denomination of $900,000) and shall be in fully registered form. The form
<br />of the 1999 Notes attached to this resolution as Exhibit A is hereby approved, ratified
<br />and confirmed by the Council.
<br />
<br />2. The City covenants that it shall comply with the provisions of Sections 103 and
<br />141-150 of the Internal Revenue Code of 1986, and the Treasury Regulations
<br />promulgated or proposed to be promulgated thereunder, applicable to the 1999 Notes,
<br />throughout the term of the 1999 Notes.
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