Minutes 08/23/2016 - Laserfiche WebLink

Home Browse Search

August 23, 2016 WHEREAS, in the School Board Resolution the School Board also (i) designated and established the K-12 academic program conducted in the schools listed in Attachment A thereto as a qualified zone academy (the “Portsmouth QZA”) and (ii) specified the type and quality of contributions acceptable to be counted as qualified contributions for purposes of the private business contribution requirement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Portsmouth, Virginia: 1. That the Council hereby determines that it is advisable to contract a debt and to issue and sell general obligation QZABs of the City in an original aggregate principal amount not to exceed $6,143,000. The issuance and sale of the general obligation QZABs in one or more series from time to time in accordance with the terms of this resolution are authorized. Each series of the general obligation QZABs shall be styled “City of Portsmouth, Virginia, General Obligation Qualified Zone Academy Bonds,” with an appropriate series designation. All such general obligation QZABs shall be referred to below as the “Bonds”. The proceeds from the issuance and sale of the Bonds shall be used to pay costs of the School Projects and to pay the costs of issuance of the Bonds. 2. That the Bonds are hereby designated as qualified zone academy bonds for purposes of Section 54E of the Tax Code. 3. That the full faith and credit of the City are irrevocably pledged for the payment of principal and premium, if any, on the Bonds. The Council is authorized to and shall levy and collect annually, at the same time and in the same manner as other taxes of the City are assessed, levied and collected, a tax upon all taxable property within the City, over and above all other taxes authorized or limited by law, and without limitation as to rate or amount, sufficient to pay when due the principal of and premium, if any, on the Bonds to the extent other funds of the City are not lawfully available and appropriated for such purpose. 4. That the Bonds shall be dated such date as shall be determined by the City Manager, shall be issued in fully registered form in denominations of $5,000 each or whole multiples thereof (except for a single denomination of less than $5,000), and may be issued at one time or from time to time in a single or multiple series (with appropriate series designations). The Bonds of any series shall be numbered from R-1 upward consecutively. The Bonds shall be issued in such principal amount, and shall, if applicable, bear interest at such rate or rates, as shall be determined by the City Manager, and shall mature in such amounts and on such dates as may be determined by the City Manager; provided that (i) the original aggregate principal amount of the Bonds shall not exceed $6,143,000, (ii) the true interest cost of any series of the Bonds shall not exceed two percent (2%) per annum, and (iii) the final maturity of any series of Bonds shall not exceed the maximum term provided for in Section 54E(d)(5) of the Tax Code. For purposes of the preceding sentence, “true interest cost” shall be determined without regard to any interest to be paid to provide yield protection to the purchaser of the Bonds or its successors and assigns in the event of a change in the tax law, the failure by the City or the School Board to comply with tax law or as a result of construction or sinking fund investment rate shortfalls. 5. That the Bonds shall be in substantially the form filed with the City’s official records, with such appropriate variations, omissions and insertions as are permitted or required by this resolution. There may be endorsed on the Bonds such legend or text as may be necessary or appropriate to conform to any applicable rules and regulations of any governmental authority or usage or requirement of law with respect thereto. 6. That the Bonds will be subject to optional and mandatory redemption as the City Manager deems advisable.