Laserfiche WebLink
Purpose and Need: <br /> <br />,NOvember 25, 1997 <br /> <br />Over the last several years the City Council has adopted resolutions <br />providing the General Obligation Bond funding for the Capital Improvement <br />Programs. The resolution for the issuance of new bonds is a consolidation <br />of these resolutions into one. A Public Hearing on this consolidation has <br />been scheduled for your November 25, 1997 Council Meeting. <br /> <br />In January of 1992, the City issued both Public Improvement and Public <br />Utility Bonds. A portion of these bonds has been identified as possible <br />candidates for refunding as interest rates have decreased. It is the purpose <br />of the second resolution to provide the authorization for this refunding. <br /> <br />In addition to the above new issue arid refunding issue, the Virginia <br />Retirement System debt incurred by the School Board is also being <br />considered for refunding. Interest rates, even on a taxable basis as the VRS <br />debt must be issued, have declined to a point where the refinancing of this <br />debt is attractive. <br /> <br />Financial Im_~act: <br /> <br />The new issue of $22,045,000 will have an impact on the debt service of the <br />City; however, these projects have been constructed or are in various <br />stages of corn pletion and it is necessary to have the cash on hand to make <br />payments. <br /> <br />Tl~e refunding bonds for portions of the 1992 bond issue will provide <br />savings to the long-term debt service of the City. Preliminary estimates <br />indicate that savings in the area of $500,000 on a present value basis could <br />be achieved, depending on the interest rates at the time the bonds are <br />marketed. <br /> <br />The VRS school debt will also achieve substantial savings through the <br />shortening of the overall repayment schedule from the 30 years to closer to <br />a 20 year time frame., as well as lower interest rates than the VRS is applying <br />to the balance. Savings in the area of $1,000,000 are possible. <br /> <br /> Motion by Mr. Martin, and seconded by Mr. Clemens, to adopt the <br />following resolution, and was adopted by the following vote: <br /> <br /> "A RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, <br />VIRGINIA, AUTHORIZING THE ISSUAN CE AND SALE OF TWENTY-TWO MILLION <br />FORTY-FIVE THOUSAND DOLLARS ($22,045,000) PRINCIPAL AMOUNT OF CITY <br />OF PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION PUBLIC IMPROVEMENT <br />BONDS, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COSTS OF <br />VARIOUS PUBLIC IMPROVEMENT PROJECTS OF AND FOR THE CITY; <br />AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED THIRTEEN <br />MILLION SIX HUNDRED THOUSAND DOLLARS ($13,600,000) PRINCIPAL <br />AMOUNT OF CITY OF PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION <br />PUBLIC IMPROVEMENT REFUNDING BONDS, FOR THE PURPOSE OF <br />PROVIDING FUNDS TO REFUND IN ADVANCE OF THEIR STATED MATURITIES <br />AND REDEEM ALL OR A PORTION OF THE OUTSTANDING CITY OF <br />PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION PUBLIC IMPROVEMENT <br />BONDS, SERIES 1992, DATED JANUARY 1, 1992 AND' MATURING ON AUGUST 1 <br />IN EACH OF THE YEARS 2003 THROUGH 2012; AUTHORIZING TH E ISSUANCE <br />AND SALE OF NOT TO EXCEED FOUR MILLION FIVE HUNDRED THOUSAND <br />DOLLARS ($4,500,000) PRINCIPAL AMOUNT OF CITY OF PORTSMOUTH, <br />VIRGINIA, GENERAL OBLIGATION PUBLIC IMPROVEMENT <br /> <br /> <br />