Minutes 11/25/1997 - Laserfiche WebLink

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256 November25.1997 (iv) In the judgment of the Council, it is necessary and expedient to issue and sell not to exceed Four Million Five Hundred Thousand Dollars ($4,500,000) aggregate principal amount of City of Portsmouth, Virginia, General Obligation Public Utility Refunding Bonds (the "Public Utility Refunding Bonds"), for the purpose of providing funds to refund in advance of their stated maturities and redeem the Refunded 1992 Public Utility Bonds and to pay the costs of issuing the Public Utility Refunding Bonds. (v) The Public Utility Refunding Bonds shall be designated as "City of Portsmouth, Virginia, General Obligation Public Utility Refunding Bonds, Series 1997B" (the "Series 1997B Bonds"), and shall be offered and sold contemporaneously with the Series 1997A Bonds. (d)(i) The Public Finance Act of 1991 provides for the issuance of "bonds" by cities, counties and towns. (ii) Pursuant to Article 5 of the Public Finance Act of 1991, Sections 15.1-227.44 through 15.1.227.51 of the Virginia Code, the City is authorized to issue refunding bonds to refund any or all bonds of the City now or hereafter outstanding and for the purpose of paying the cost of issuing the refunding bonds, whether the City created the indebtedness or assumed or became liable for it. (iii) Section 15.1-227.47 of the Virginia Code provides that no refunding bonds shall be issued in a principal amount exceeding the principal amount necessary to amortize the principal of and premium, if any, on the bonds to be refunded and pay all expenses reasonably incurred in the issuance of the refunding bonds less the amount then in any sinking, escrow and other funds which ars available for the payment of the principal, premium, if any or interest on the bonds to be refunded. (iv) Section 15.1-227.3 of the Virginia Code defines the term "bonds" to mean any obligations of the City for the payment of money. (v) Section 15.1-227.7.3 of the Virginia Code provides that the City has the power and is authorized to refund any "bonds" previously issued by the City or for which the City is responsible or may assume responsibility or payment. (vi) The City is currently indebted to the Virginia Retirement System for retirement benefits payable to current and former employees of the City, including current and former employees of the Portsmouth School System, which indebtedness bears interest at the rate of eight per centum (8%) per annum (such indebtedness, including the interest accrued thereon subsequent to September 30, 1997, being referred to herein as the "Existing VRS Obligation"). (vii) The refunding of the Existing VRS Obligation can be effected at a rate of interest lower than the rate of interest currently borne by the Existing VRS Obligation and thus will result in substantial debt service cost savings to the City. (viii) In the judgment of this Council, it is necessary and expedient to issue and sell not to exceed Eleven Million Nine Hundred Thousand Dollars ($11,900,000) aggregate principal amount of City of Port~mouth, Virginia, Taxable General Obligation Refunding Bonds (the "Taxable General Obligation Refunding Bonds"), for the purpose of providing funds to refund all or a portion of the Existing VRS Obligation and to pay the costs of issuing the Taxable General Obligation Refunding Bonds.