Minutes 01/14/1992 - Laserfiche WebLink

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January 14, 1992 For each 10 basis points (100 basis points equals 1.00%) on a $30,650,000 issue, the initial cost for interest is $30,650. The bond issue sold last January had an overall True Interest Cost (TIC) of 6.87%. I am informed that were we to issue at today's rates, our interest rate would be in the 6.00% to 6.10% range; thereby having the potential to reduce the cost of interest over last January's rate by $266,655 to $239~070 for the first year. At the present time there are $23,035,000 in outstanding general obligation Public Improvement Bonds authorized that have not been sold and $7,615,000 remaining unsold in general obligation Public Utility Bonds from the referendum approved by the voters in November 1990. In addition, the receipts from the last Public Improvement Bonds have been spent. Funds issued for the utility Bonds remain; however, these cannot be used for purposes other than utility projects. I therefore recommend that we proceed to issue the balances remaining in bonds that have been authorized but not as yet sold ($30,650,000 total). The tentative schedule is to have the Official Statement ready in early January and taking bids on the issue at the end of January. The Municipal Finance Commission has been consulted and at their November meeting, and by an unanimous vote of the members present, recommend to the City Council that we take advantage of the lowest interest rates in more than ten years and sell of the bonds at this time. The attached resolutions have been prepared by the City's bond counsel and reviewed by the City Attorney. The resolutions detail the necessary procedure to be followed in issuing the bonds, the format of the documentation, as well as the necessary authorization. I recommend adoption on first reading to expedite the bond issuance process." a) Motion of Mr. Epperson and seconded by Mr. Clemons, the following resolution was adopted and by the following vote: A RHSOLUTION AI3THOBIF. rNG THE ISSUANCE OF T~qENTY-THRE~ Nn~.I.ION THIRTY-FIVE THOUSAND DOLLARS ($23,035,000) PRINCIPAL AMOUNT OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS OF TH~ CITY OF POR77~MOUq/-L VIRGINIA. FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COSTS OF VARIOUS PUBLIC IMPROVEMHAVF PRO/~CIS OF AND FOR SUCH CITY; FIXING 7/-IE FORM OF SUCH BONDS; PROVIDING FOR THE SALE OF SUCH BONDS; AND PROVIDING THAT TH]E AI31/~ORIZATION OF SUCH BONDS HEREIN I~ [N PART, IN I]I:.U OF CERTAIN GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS HER~-rOFORI~ AUTHOR ~i~:0 WHEREAS. in the judgment of the Council (the "Council") of the City of Portsmouth, Virginia (the "City"), it is necessary and expedient to issue and sell General Obligation Public Improvement Bonds of the City in an aggregate principal amount of Twenty-Three Million Thirty-Five Thousand Dollars ($23,035,000) for the purpose of providing funds to pay the costs of various public improvement projects of and for the City;, NOW, ~EEORE, BElT RESOLVED by the Council of the City of P0rts~outh, V rginia:':~?i- "L I. (a) PursuAnt to Chapter 5.1 of Tide 15.1 of the Code of Virglma, 1950. the same being the Public Finance Act of 1991, and the Charter of the City, for the purpose of providing funds to pay the costs of the public improvement projects of and for the City as set forth in paragraph 7, there are hereby authorized to be issued Twenty-Three Million Thirty-Five Thousand Dollars ($23,03.5,000) principal amount of general obligation bonds of the City ro be desigimted and known as "City of Portsmouth. Virginia, General Obligation Public Improvement Bonds" (hereinafter referred to as the Bonds"). The Bonds shall be issued and snld in their emirety at one time, or from time ro time in part in series, aa shall be determined by the City Manager of the City. The Bonds may be sold at the same time as other general obligation bonds are sold by the City. All such Bonds shall be issued in folly registered form and shall be in such denomination or denominations as shall bo determined by tho City Manager. The Bonds of a g~ven sones shall be numbered from R-1 upwards in order of issuance;, shall mature annually on such day in each year and commencing in such year as shall be determined by the City Manager:, and shall bear interest payable on such dates as shall be determined by the City Manager. such interest,~t9 he payable on a date which is not more than twelve It:g) momhs from the date of the of such series ana%emianunally thereafter. Thc City Manager is authorized to determine in accordance with and subject to the provisions of this'resointiom the date or dates of the Bonds; the interest payment dates thereof; the maturity dates thereof; the amount of princapal mataaing on each maturity date; the place or places of paymant.~erunf and the