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<br />October 11. 2005 <br /> <br />05 - 470 - Adoption of an ordinance authorizing the issuance and sale of not to exceed <br />$48,230,000 aggregate principal amount of General Obligation Bonds for the purpose of <br />financing the costs of various public improvement projects of and for the City; <br />authorizing the issuance and sale of not to exceed $39,395,000 aggregate principal <br />amount of General Obligation Refunding Bonds; authorizing the issuance and sale of <br />not to exceed $18,275,000 aggregate principal amount of General Obligation Public <br />Utility Refunding Bonds; and authorizing the issuance and sale of not to exceed <br />$22,470,000 Taxable General Obligation Refunding Bonds. Vision Principle: A Robust <br />and Prospering Economy. <br /> <br />Background: <br />. The City's CIP for the period from FY-03 to FY-06 authorized various general and <br />public utility capital projects for which GO Bond Anticipation Notes (BAN's) were issued <br />to finance a portion of the cost, but for which GO Public Improvement Bonds have not <br />yet been issued and sold. <br />. The Variable Rate Demand Revenue Bonds previously issued by the City for the <br />Port Centre (1997), Fairwood Homes (1997) and the nTelos Pavilion Performing Arts <br />Center (2001) projects have experienced the recent effects of rising interest rates, high <br />refinancing and remarketing fees, and mandatory redemption requirements. <br />. The Golf Revenue Bonds issued by the City in 1998 have experienced a reduced <br />revenue stream since the sale of the Sleepy Hole golf course plus onerous debt <br />coverage and disclosure requirements, and present the opportunity to be refunded with <br />significant savings. <br />. Certain series of the City's previously issued and outstanding GO Public <br />Improvement Bonds present the opportunity to be refunded with significant savings. <br /> <br />Discussion: <br />. GO Public Improvement Bonds in the total aggregate amount not to exceed <br />$48,230,000 and GO Refunding Bonds in the total aggregate amount not to exceed <br />$80,140,000 will be sold. <br />. Proceeds from the sale of the bonds will be used to pay the costs of various <br />public improvement projects, refund all or a portion of various previously issued bonds, <br />and pay the costs of issuing these bonds. <br />. The full faith and credit of the City will be irrevocably pledged for the payment of <br />the principal of, premium, if any, and interest on the bonds as they become due and <br />payable. <br />. Financial Impact: Net bond proceeds of approximately $45.4 million will be <br />provided to the City to fund the cost of various previously authorized public <br />improvement projects. <br /> <br />Staff Recommends: <br />Adoption of Ordinance. Vision Principle: A Robust and Prospering Economy. <br /> <br />Motion by Ms. Psi mas, and seconded by Mr. Whitehurst, to adopt the following <br />ordinance, and was adopted by the following vote: <br /> <br />"AN ORDINANCE OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA <br />AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $48,230,000 <br />AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS FOR THE <br />PURPOSE OF FINANCING THE COSTS OF VARIOUS PUBLIC IMPROVEMENT <br />PROJECTS OF AND FOR THE CITY; AUTHORIZING THE ISSUANCE AND SALE <br />OF NOT TO EXCEED $39,395,000 AGGREGATE PRINCIPAL AMOUNT OF <br />GENERAL OBLIGATION REFUNDING BONDS; AUTHORIZING THE ISSUANCE <br />AND SALE OF NOT TO EXCEED $18,275,000 AGGREGATE PRINCIPAL AMOUNT <br />OF GENERAL OBLIGATION PUBLIC UTILITY REFUNDING BONDS; AND <br />AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $22,470,000 <br />TAXABLE GENERAL OBLIGATION REFUNDING BONDS." <br /> <br />Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst <br />Nays: None <br />