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Au.qust 12, 2003
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<br /> Motion by Mr. Whitehurst, and seconded by Ms. Randall, to adopt the following
<br />ordinance, and was adopted by the following vote:
<br />
<br />"ORDINANCE TO APPROPRIATE $80,500 IN THE PUBLIC UTILITIES CAPITAL
<br />IMPROVEMENT FUND FOR TIMBER MANAGEMENT EXPENSES."
<br />
<br />Ayes: Benn, Griffin, Moody, Randall, Whitehurst, Holley
<br />Nays: None
<br />
<br />03 - 273 - Adoption of a resolution authorizing the issuance and sale of General
<br />Obligation Refunding Bonds in one or more series in the maximum aggregate principal
<br />amount of $49,000,000 provided that market conditions remain favorable.
<br />
<br />Recommendation:
<br />
<br />· Adoption of a resolution authorizing the issuance and sale of General Obligation
<br />Refunding Bonds in one or more series in the maximum aggregate principal amount of
<br />$49,000,000 provided that market conditions remain favorable.
<br />
<br />Purpose and Need:
<br />
<br />· The City's financial advisor, Public Financial Management (PFM), has identified
<br />certain series of bonds (Series 1993, 1996 and 2001 General Obligation Bonds) where
<br />potential savings exist based on current market conditions.
<br />
<br />· In order to take advantage of this refunding opportunity, it is necessary for Council to
<br />approve the accompanying parameters resolution that will authorize staff to proceed
<br />with the refunding, provided that market conditions remain favorable.
<br />
<br />· The bond sale is currently scheduled for early October with bonds to be marketed in
<br />the weeks preceding the sale date.
<br />
<br />Financial Impact:
<br />
<br />· The savings generated from the refunding of just the 1993 Series General Obligation
<br />Bonds will provide approximately $2.7 million in cash flow savings over the next 16
<br />years or net present value savings of $2.2 million based on market estimates.
<br />Additional savings will be generated from the refunding of the 1996 and 2001 Series
<br />General Obligation Bonds.
<br />
<br /> Motion by Mr. Pitts, and seconded by Mr. Whitehurst, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"A RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA
<br />AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION
<br />REFUNDING BONDS, SERIES 2003; APPROVING THE FORM AND OTHER
<br />DETAILS OF SUCH BONDS; AUTHORIZING THE CITY MANAGER AND THE CHIEF
<br />FINANCIAL OFFICER TO TAKE ALL ACTIONS AS SHALL BE REQUIRED IN
<br />CONNECTION WITH THE ISSUANCE, SALE AND DELIVERY OF SUCH BONDS;
<br />AUTHORIZING THE CITY MANAGER TO EXECUTE SUCH BONDS; AND
<br />OTHERWISE PROVIDING DETAILS WITH RESPECT TO THE ISSUANCE OF SUCH
<br />BONDS.
<br />
<br />WHEREAS, the City Council of the City of Portsmouth, Virginia (the "City") has
<br />determined that it is advisable to issue and sell general obligation refunding bonds of
<br />the City to refund all or a portion of the outstanding balance of the City's (i) $57,905,000
<br />General Obligation Bonds, consisting of $36,620,000 General Obligation Public
<br />Improvement Refunding Bonds, Series 1993, and $21,285,000 General Obligation
<br />Public Utility Refunding Bonds, Series 1993; (ii) $53,000,000 General Obligation Bonds,
<br />Series 1996, consisting of $40,000,000 General Obligation Public Improvement Bonds,
<br />Series 1996 and $13,000,000 General Obligation Public Utility Bonds, Series 1996; and
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