Minutes 05/25/2004 - Laserfiche WebLink

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May 25, 2004 1. 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. 2. 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 one year from its date, 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 one year from its date and the interest rate on the Note if issued in the form of the RAN shall not exceed 4%. 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 6%. 3. 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. 4. 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 of the City, which paying agent may be an officer of the City. 5. Non-Arbitraqe Certificate and Tax Covenants. The Chief Financial Officer of the City and such officers and agents of the City as she may designate are authorized and directed to execute a Non-Arbitrage Certificate and Tax Covenants setting forth the expected use and investment of the proceeds of the Note and containing such covenants as may be necessary in order to comply with the provisions of the Internal Revenue Code of 1986, as amended ("Code"), including the provisions of Section 148 of the Code and applicable regulations relating to "arbitrage bonds." 6. Further Actions. The City Manager and the Chief Financial Officer of the City and such officers and agents of the City as either of them may designate are authorized and directed to take such further action as they deem necessary regarding the issuance and sale of the Note and all actions taken by such officers and agents in connection with the issuance and sale of the Note are ratified and confirmed. 7. Effective Date; Applicable Law. This Resolution shall take effect immediately. The City Council elects to issue the Note pursuant to the provisions of the Public Finance Act of 1991, Chapter 26, Title 15.2, Code of Virginia of 1950, as amended, in accordance with Section 15.2-2601 of such Act." Ayes: Benn, Griffin, Moody, Pitts, Randall, Whitehurst, Holley Nays: None