Minutes 09/12/2006 - Laserfiche WebLink

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September 12. 2006 06 - 421 - Adoption of a resolution authorizing an application to the Virginia Public School Authority and authorizing the issuance of not to exceed $7,500,000 General Obligation School Bonds of the City of Portsmouth, Virginia to be sold to the Virginia Public School Authority pursuant to the Literary Fund Subsidy Sale and providing for the form and details thereof. Vision Principles: A Robust and Prospering Economy and Lifelong Learning Community. Background: . The School Board has adopted a resolution requesting that the City authorize the sale and issuance of GO School Bonds in the total aggregate principal amount not to exceed $7,500,000 . The City's adopted FY 2006-2007 Capital Improvement Program (CIP) authorized funding part of the costs of the Parkview Elementary School capital project with a $7,500,000 State Literary Fund loan financed through the sale and issuance of GO School Bonds to VPSA. Discussion: . GO School Bonds will be sold and issued in the total aggregate principal amount not to exceed $7,500,000. . Proceeds from the sale of the bonds will be used to pay $7,500,000 of costs for the Parkview Elementary School capital project. . The full faith and credit of the City will be irrevocably pledged for the payment of the principal of, premium, if any, and interest on the bonds as they become due and payable. . Financial Impact: Net bond proceeds in the aggregate principal amount not to exceed $7.5 million will be provided to fund part of the costs of the Parkview Elementary School capital project as authorized in the City's FY 2006-2007 CIP. Staff Recommendation: Adoption of proposed resolution. Vision Principles: A Robust and Prospering Economy, Lifelong Learning Community, and Neighborhood and Community Transformation. Next Steps Following Council Action: . The CFO will work with the Portsmouth Public School's Assistant Superintendent for Budgeting and Planning to oversee the sale, issuance and recording of the aforementioned GO School Bonds to VPSA in November 2006. Motion by Mr. Heretick, and seconded by Mr. R. Smith, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION AUTHORIZING AN APPLICATION TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY AND AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $7,500,000 GENERAL OBLIGATION SCHOOL BONDS OF THE CITY OF PORTSMOUTH, VIRGINIA TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY PURSUANT TO THE LITERARY FUND SUBSIDY SALE AND PROVIDING FOR THE FORM AND DETAILS THEREOF. WHEREAS, in January of 2005, the Commonwealth of Virginia Board of Education (the "Board of Education") placed an application (the "Application") of the School Board of the City of Portsmouth, Virginia (the "School Board") for a loan in the amount of $7,500,000 (the "Literary Fund Loan") from the Literary Fund, a permanent trust fund established by the Constitution of Virginia (the "Literary Fund"), for financing the Park View Elementary School project (the "Project") in the City of Portsmouth, Virginia (the "City"), on the First Priority Waiting List.