Minutes 08/14/1990 - Laserfiche WebLink

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328 August 14, 1990 "Attached is an ordinance for your consideration authorizing the issuance:oS ~ubli~'u~ility General Obligation Bonds as well as the necessary steps to be taken to have a public utility ~b~nd~re~e~nd~m ~f.or~:~t7~615,000 ~plaeed ~ the ballot for the November~:6,:~:~g9~ae~ect~on~:~n~order for:-the. bond refere~u~ to%b~ consbde~ed ~h:~theiNove~ber:electi~n,i .~he~ City Council'iS required t.o~,a~opt~,thei.attached ordinance ~t ~ least 60 days in advance. The capital'improvement projects of the public utility system are typically funded by'voter approved water and. sewe~r bond issues that are called~qdouble barrel bonds" because ~hey~, are supported by the revenues,~of~-the utility system and'~a~e: also backed by the full faith:,and:credit of the City. Double barrel bonds provide the lowest possible interest rate and are also exctudable~r~m ~he .C~ty~s-~ega~ debt ~mit as established Planned,purposes for thec$~,6~5,~000 are'~ident~ed:.on the attachqd listing. It is estima%ed~hat this amount of bond proceeds~JwilI be;~§uffi~ient'to-'fund-public 'utility p~ojects for the next three years. The-largest~an~icipated improvement.is the construction~'ofca~ne~water~ransm~ssion'main~.,tO ~e~e~:our~ contractual commitments for the'~sale of water to the City of Chesapeake and to allow for deVelopment-of"the~remaining~large~ tracts in the Churchland area. The projects which are listed are subj~c~?tocrevision based:~oncthe~gity;Councit's,upcoming revlew~of the Capital:Improvement Plan. i%<is:~essentia~:foT~the:C~ty¢tocprovide a continuing program of capital'~xpe~ditures,fo~'{he~m~ntenance and expansion~of',the public~utititg:~sys~e.ms~ As~a result of the issuance of the proposed bonds,~there, wit~ be a~ tmpact~:on public utility rates equal to a water rate increase of approximate'ly' 1~ ~en'ts, which'ca~ be. spread over sever.a~ years. The cost of the new water ma~n, ~wh'ich'is the largest improvement, will be borne b~-Chesapeake through the appticab~le rates for their purchase of SUrplus bulk water ...... ~fte~ the appr~ovsl of this'ordinance, City staff wi~tl. initiate a program to provide, in,formation to our citizens about the referendum. The citizens of Portsmouth consistently have supported: pas~t referendums :f~ p:u~lic:utility bonds. P~b.licity methods similar~o~h~ose~s~d~i~h~p~ s~h~ul~b,~ ef.f¢.~y~ again in communicating information about the referendum to our citizens~ '' ; .. : ~ ~ebo~ehd %-h~t the Cit-y*Coun~cil 'appmove 'the~ proposed ordinance ~n order for this matter-to be included as a referendum on t~e'November 6; ~90 ballot. The-Municipal Finance Commission has also fuPnisked you their recommendation in support ~f' th~ ma'~te~." .... M,d~%-i~on o;f~r..- Hawks and .s~eomded byMr. King, following ordinance was approved-on first reading by 6-0 vote' (Mrs.'~LuCas absent ~rom Chambe~ ~uring vote).. "AN ORDINANCE TO AUTHORIZE THE ISSUANCE OF SEVENTEEN MILLION, SIX HUNDRED F~FTEEN THO~US~ND DOLLARS OF BONDS TO BE KNOWN AS PUBLIC UTILITY BONDS FOR THE PURPOSE OF MAKING CAPITAL IMPROVEMENTS, EXTENSIONS AND ADDITIONS TO THE CITY OF PORTSMOUTH~'S REVENUE~PRODUCING WATER AND SEWER ~YSTEM, PURSUANT TO ARTICLES V~,~' SECTION 10 (A) ~2) OF THE . CONSTITUTION OF VIRGINIa, 1971, AND CHAPTER 5 OF TITLE 15.1 OF THE CODE OF VIRGINIA%~ 1950, AND AUTHORIZING. PROVIDING WITH RESPECT TO THE ISSUANCE AND SALE OF A LIKE PRINCIPAL AMOUNT OF PUBLIC UTILITY BOND ANTICIPATION NOTES IN ANTICIPATION OF THE ISSUANCE AND RECEIPT OF THE PROCEEDS OF SALE OF SUCH BONDS."