Minutes 04/28/2009 - Laserfiche WebLink

Home Browse Search

April 28. 2009 NOW, THEREFORE BE IT RESOLVED by the Council of the City of Portsmouth that the City wishes to submit a substantial amendment to its FY 2009 Annual Action Plan to HUD to receive $724,490 in Homelessness Prevention and Rapid Re-housing Program funds to assist with at-risk and homeless individuals and families in Portsmouth to stabilize their housing or find decent housing. BE IT FURTHER RESOLVED that City Manager Kenneth L. Chandler is hereby authorized to sign and submit appropriate documents for the submittal of the substantial amendment." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 09 - 235 - Adoption of an ordinance authorizing refunding of certain debt for the purpose of generating interest rate savings. Vision Principle: A Robust and Prospering Economy. Background: . Recent changes in the municipal market present an opportunity for the City to generate interest rate savings through refunding $12.3 million of outstanding bonds. Davenport & Company, the City's financial advisors, recommends refunding 1997 A, 2001 A and 2001 B outstanding bonds for the purpose of generating an estimated present value savings of $1.2 million or 10% of the bonds refunded. The benefits derived from refunding the Series 1997 A and Series 2001 A would be allocated entirely to the General Fund and the benefits from the 2001 B would be allocated to the Utility Fund. Discussion: . Although market conditions are subject to change such that the savings may not be realized, the City is in a unique position to proceed expeditiously in order take advantage of the current favorable market conditions. Having recently completed debt restructuring in March (Series 2009A, Band C Bonds), the competitively selected underwriting team consisting of Wachovia Securities as lead underwriter along with Morgan Keegan & Company, Jackson Securities and Siebert Brandford Shank and Company are able to assist the City in selling the Bonds quickly. Financial Impact: . Based on market conditions as of April 17, 2009 and assuming a level savings structure, the transaction currently generates average annual savings for the General Fund of approximately $108,000 through FY 2018 and $80,000 from FY 2019 through FY 2021 (General Fund maturity) and $9,700 for the Utility Fund through FY 2026 (Utility Fund maturity). Staff Recommends: . Adoption of ordinance. Vision Principles: Robust and Prospering Economy. Motion by Mr. Whitehurst, and seconded by Ms. Psimas, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $13,250,000 AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION REFUNDING BONDS." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None