|
<br />AUQust 23. 2005
<br />
<br />WHEREAS, the Council of the City of Portsmouth, Virginia (the "City Council"),
<br />has determined that it is advisable to issue up to $3,600,000 of its general obligation
<br />bonds (the "Bonds") to finance the cost, in whole or in part, of various public utility
<br />improvements (the "Project");
<br />
<br />WHEREAS, the issuance of the Bonds for the Project was included in the Capital
<br />Improvement Plan approved by City Council for Fiscal Year 2006; and
<br />
<br />WHEREAS, the Bonds are to be issued on the terms set forth in this Resolution
<br />and a subsequent resolution of City Council and a public hearing has been held on
<br />August 23, 2005 on the issuance of the Bonds and a bond anticipation note in
<br />anticipation of the issuance and sale of the Bonds (the "Note") after due publication of
<br />notice in accordance with Section 15.2-2606 of the Code of Virginia of 1950, as
<br />amended.
<br />
<br />NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
<br />PORTSMOUTH, VIRGINIA:
<br />
<br />1. Authorization of Bonds and Note: Use of Proceeds. The City Council hereby
<br />determines that it is advisable to contract a debt and to issue the Bonds to finance the
<br />Project. The City Council further determines that it is advisable to contract a debt and to
<br />issue the Note in anticipation of the issuance of the Bonds. The issuance of the Bonds
<br />and the issuance and sale of the Note are hereby authorized. The proceeds from the
<br />issuance and sale of the Note and the Bonds shall be used to pay the costs, in whole or
<br />in part, of the Project.
<br />
<br />2. Pledqe of Full Faith and Credit. The full faith and credit of the City are hereby
<br />irrevocably pledged for the payment of the principal of, premium, if any, and interest on
<br />the Bonds and Note as the same become due and payable. The City Council shall levy
<br />an annual ad valorem tax upon all property in the City, subject to local taxation,
<br />sufficient to pay the principal of, premium, if any, and interest on the Bonds and Note as
<br />the same shall become due for payment unless other funds are lawfully available and
<br />appropriated for the timely payment thereof.
<br />
<br />3. Details and Sale of Note. The Note shall be issued upon the terms established
<br />pursuant to this Resolution and upon such other terms as may be determined in the
<br />manner set forth in this Resolution. The Note shall be issued in fully registered form,
<br />shall be dated its date of issuance and delivery (or such other date as the City Manager
<br />and the Chief Financial Officer, or either of them, may approve) and shall be in a single
<br />denomination equal to its principal amount, or, if approved by the City Manager and the
<br />Chief Financial Officer, or either of them, in denominations of at least $100,000. The
<br />Note shall be issued upon such other terms as may be approved by the City Manager
<br />and the Chief Financial Officer, or either of them, including, but not limited to, the
<br />aggregate principal amount of the Note, the prepayment provisions, the sale price and
<br />interest rate on the Note, provided that the maturity of the Note shall be not more than
<br />approximately one year from its date, the principal amount of the Note shall not exceed
<br />$3,600,000 and the interest rate on the Note shall not exceed 4.0%. The City Manager
<br />and Chief Financial Officer, or either of them, are authorized to accept the proposal for
<br />the purchase of the Note, which such officer determines to be most advantageous to the
<br />City. The Note may be extended or refinanced from time to time by or at the direction of
<br />the City Manager and Chief Financial Officer, or either of them, provided that no
<br />extension or refinancing matures later than five years after the date of the original
<br />issuance of the Note.
<br />
<br />4. Form of Note. The Note shall be in substantially the form attached to this
<br />Resolution as Exhibit A, with such appropriate variations, omissions and insertions as
<br />are permitted or required by this Resolution. There may be endorsed on the Note such
<br />legend or text as may be necessary or appropriate to conform to any applicable rules
<br />and regulations of any governmental authority or any usage or requirement of law with
<br />respect thereto.
<br />
<br />5. Appointment of Note Reqistrar and Pavinq Aqent. The Chief Financial Officer is
<br />appointed Note Registrar and Paying Agent for the Note. The City Manager may
<br />appoint a subsequent registrar and/or one or more paying agents for the Note and/or
<br />Bonds by giving written notice to the owner of the Note and/or Bonds specifying the
<br />name and location of the principal office of any such registrar or paying agent.
<br />
|