Minutes 10/08/2002 - Laserfiche WebLink

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October 8, 2002 · The issuance of a revenue anticipation finance mechanism will ensure that the City and the Schools meet their financial obligations in a timely manner by providing adequate cash flow (working capital). · The RAN or line of credit will become due on June 30, 2003 and will be payable from the future taxes and federal and state reimbursements. Financial Impact: · The interest rate charges are not expected to exceed 5%. The FY 2003 budget includes a line item for revenue anticipation interest expense. Motion by Mr. Griffin, and seconded by Mr. Whitehurst, to adopt the following resolution, and was adopted by the following vote: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA AUTHORIZING THE ISSUANCE AND SALE OF THE CITY'S REVENUE ANTICIPATION NOTE OR LINE OF CREDIT REVENUE ANTICIPATION NOTE. WHEREAS, the Council of the City of Portsmouth, Virginia (the "City") proposes to authorize the issuance of a revenue anticipation note or line of credit revenue anticipation note in the event it becomes necessary and advisable to borrow money in anticipation of the collection of the taxes and revenues of the City for the current year pursuant to Section 15.2-2629 of the Code of Virginia of 1950, as amended; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: Authorization of Note. The City Council hereby authorizes the issuance and sale of the City's revenue anticipation note (the "RAN") or line of credit revenue anticipation note (the "LC-RAN" and together with the RAN, the "Note") in the maximum principal amount of $10,000,000 in anticipation of the collection of the taxes and revenues of the City for the current year. Details and Sale of Note. The Note shall be issued upon the terms established pursuant to this Resolution and upon such other terms as may be determined in the manner set forth in this Resolution. The Note shall be issued in fully registered form, shall be dated the date of its issuance and delivery, shall be in the form of a single registered note and shall mature not later than June 30, 2003, subject to prepayment as set forth therein. The Chief Financial Officer of the City, or such officer as she may designate, is authorized and directed to accept a proposal for the purchase of the Note and to approve the terms of the Note, provided that the principal amount of the Note shall not exceed the amount set forth in paragraph 1, the Note shall mature not later than June 30, 2003 and the interest rate on the Note if issued in the form of the RAN shall not exceed 4.00%. In the event that the City issues the Note in the form of the LC- RAN, the interest rate on each draw under the LC-RAN shall not exceed 4.00%. Form of Note. The Note shall be in substantially the form attached to this Resolution as Exhibit A, with such appropriate variations, omissions and insertions as are permitted or required by this Resolution. There may be endorsed on the Note such legend or text as may be necessary or appropriate to conform to any applicable rules and regulations of any governmental authority or any usage or requirement of law with respect thereto. Execution of Note. The City Manager of the City and the Chief Financial Officer of the City, or either of them, are authorized and directed to execute an appropriate negotiable Note, and the Clerk is authorized and directed to affix the seal of the City thereto and to attest such seal, and such officers are authorized and directed to deliver the Note to the purchaser thereof. The signature of any officer executing the Note, and the affixation of the City seal, may be by facsimile, provided that if all the signatures are by facsimile, the Note shall be authenticated by a paying agent to be appointed by the Chief Financial Officer, which paying agent may be an officer of the City.