Minutes 09/12/2006 - Laserfiche WebLink

Home Browse Search

September 12. 2006 WHEREAS, the Board of Education was to have approved the release of Literary Fund moneys to the School Board and make a commitment to loan such moneys to the School Board (the "Commitment") within one year of placement of the Application on the First Priority Waiting List upon receipt of the Literary Fund of an unencumbered sum available at least equal to the amount of the Application and the approval, by the Board of Education, of the Application as having met all conditions for a loan from the Literary Fund. WHEREAS, the Board of Education was thereafter to have given advances on the amount of the Commitment for the Literary Fund Loan to the School Board, as construction or renovation of the Project progressed, in exchange for a loan obligation from the School Board to the Literary Fund (the "Literary Fund Obligation") for the amounts so advanced. WHEREAS, the Literary Fund Obligation was to have borne interest at two percent (2%) per annum and mature in annual installments for a period of twenty (20) years. WHEREAS, in connection with the 2006 Interest Rate Subsidy Program (the "Program"), the Virginia Public School Authority (the "VPSA") has offered to purchase general obligation school bonds of the City, and the Board of Education has offered to pay, to the City, a lump sum cash payment (the "Lump Sum Cash Payment") equal to the sum of (i) net present value difference, determined on the date that VPSA sells its bonds, between the weighted average interest rate that the general obligation school bonds of the City will bear upon sale to the VPSA and the interest rate that the Literary Fund Obligation would have borne plus (ii) an allowance for the costs of issuing such bonds of the City (the "Issuance Expense Allowance"). WHEREAS, the City Council (the "City Council") of the City of Portsmouth, Virginia (the "City") has determined that it is necessary and expedient to borrow $7,500,000 and to issue its general obligation school bonds to finance certain capital projects for school purposes. WHEREAS, the City has held a public hearing, after due publication of notice, in accordance with Section 15.2-2606, Code of Virginia of 1950, as amended ("Virginia Code") on September 12, 2006 on the issuance of school bonds in the maximum amount of $7,500,000. WHEREAS, the School Board of the City has requested by resolution the City Council to authorize the issuance of the Bonds (as defined below). NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia, that: 1. Authorization of Bonds and Use of Proceeds. The City Council hereby determines that it is advisable to contract a debt and to issue and sell general obligation school bonds of the City in the aggregate principal amount not to exceed $7,500,000 (the "Bonds") for the purpose of financing the Project. The City Council hereby authorizes the issuance and sale of the Bonds in the form and upon the terms established pursuant to this Resolution. 2. Sale of the Bonds. It is determined to be in the best interest of the City to accept the offer of the VPSA to purchase from the City, and to sell to the VPSA, the Bonds at a price determined by the VPSA and accepted by the City Manager or the Chief Financial Officer, and upon terms established pursuant to this Resolution. The City Manager and the Chief Financial Officer, or either of them, and such officer or officers of the City as either of them may designate, are hereby authorized and directed to enter into a Bond Sale Agreement with the VPSA providing for the sale of the Bonds to the VPSA in such form as may be approved by the City Manager ("Bond Sale Agreement").