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Q31 <br /> February 28, 1995 <br /> <br />95-96 Letter from the City Manager recommending adoption of a <br />resolution authorizing the sale of Bond Anticipation Notes in <br />the amount of $7,000,000. <br /> <br /> "Last November we issued Bond Anticipation Notes in the <br />amount of $5 million. Since that time, we have spent almost all <br />of this amount on various capital projects whiuh you have <br />appropriated. In order to continue these authorized projects, <br />we need to borrow additional funds in the form of Bond <br />Anticipation Notes (BAN's). <br /> <br /> I have had the Finance Department competitively bid out the <br />interest rate for a note issued in the sanount of $7 million <br />a~ong various financial institutions and these quotes are due <br />back on Monday, February 27, 1995. The lowest interest rate <br />quoted will be selected from among the qualified respondents. <br />The attached draft resolution will be completed and prepared for <br />your consideration at your February 28th meeting. <br /> <br /> The notes will amount to $7 million and will become due in <br />January 1996. It is anticipated that in December we will be <br />going to the market for our long-term financing and at that time <br />pay off the outstanding BAN's. I recommend your approval of the <br />issuance of the Bond Anticipation Notes." <br /> <br /> Motion by Mr. Clemons, and seconded by Mr. Pitts, to adopt <br />the following resolution, and was adopted by the following vote: <br /> <br /> "RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, <br />VIRGINIA, APPROVING THE SALE OF $7,000,000 PRINCIPAL AMOUNT OF <br />CITY OF PORTSMOUTH, VIRGINIA, GENERAL OBLIGATION PUBLIC <br />IMPROVEMENT BOND ANTICIPATION NOTES AND THE FORM AND OTHER <br />DETAILS THEREOF; ACCEPTING THE PROPOSAL OF NATIONSBANK OF <br />VIRGINIA, N.A. TO PURCHASE SUCH NOTES; AUTHORIZING THE CITY <br />MANAGER, THE DIRECTOR OF FINANCE AND THE CITY TREASURER TO TAKE <br />ALL ACTIONS AS SHALL BE REQUIRED IN CONNECTION WITH THE <br />ISSUANCE, SALE AND DELIVERY OF SUCH NOTES; AUTHORIZING THE CITY <br />TREASURER TO EXECUTE SUCH NOTES; DESIGNATING SUCH NOTES <br />AS "QUALIFIED TAX-EXEMPT OBLIGATIONS" FOR PURPOSES OF <br />SECTION 265(b) (3) OF THE INTERNAL REVENUE CODE OF 1986; AND <br />PROVIDING WITH RESPECT TO THE ISSUANCE OF SUCH NOTES. <br /> <br /> WHEREAS, this Council of the City of Portsmouth, <br />Virginia (the "City"), on November 10, 1992 adopted a <br />resolution, entitled "A RESOLUTION AUTHORIZING THE <br />ISSUANCE OF $10,000,000 OF GENERAL OBLIGATION BONDS OF THE CITY <br />OF PORTSMOUTH, VIRGINIA FOR THE PURPOSE OF PROVIDING FUNDS TO <br />PAY THE COST OF VARIOUS IMPROVEMENT PROJECTS OF SUCH CITY AND <br />AUTHORIZING AND PROVIDING WITH RESPECT TO THE ISSUANCE AND SALE <br />OF A LIKE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BOND <br />ANTICIPATION NOTES IN ANTICIPATION OF THE ISSUANCE AND RECEIPT <br />OF THE PROCEEDS OF SALE OF SUCH BONDS", authorizing the issuance <br />of $10,000,000 principal ~unount of City of Portsmouth, Virg~nla, <br />General Obligation Public Improvement Bonds for the purpose of <br />providing funds to pay the costs of public improvement projects <br />of the City set forth therein (the "1992 Authorizing <br />Resolution"}; and <br /> <br /> <br />