Minutes 09/10/2019 - Laserfiche WebLink

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September 10, 2019 1. Donna Sayegh, 3104 Garland Drive, spoke in opposition to this item. Motion by Mr. Clark, and seconded by Ms. Lucas-Burke, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE ACCEPTING A GRANT IN THE AMOUNT OF $330,296.78 FROM THE U.S. DEPARTMENT OF AGRICULTURE AND APPROPRIATING SAID FUNDS IN THE FY 2020 GRANTS FUND FOR USE BY THE DEPARTMENT OF PARKS, RECREATION & TOURISM FOR THE USDA SUMMER FOOD SERVICE PROGRAM.” Ayes: Battle, Clark, Glover, Lucas-Burke, Moody, Psimas, Rowe Nays: None 19 - 331 - Adoption of an ordinance authorizing the issuance and sale of revenue bonds by the City of Portsmouth, Virginia, and establishing the terms, details, and provisions for the payment thereof (water and sewer system revenue bonds; total principal amount not to exceed $36,800,000). Background:  City Council adopted the FY 2020 Capital Improvements Program, which designates projects and their funding sources.  The Virginia Resources Authority (VRA) has an upcoming pooled financing issue that would allow the city to quickly and efficiently enter the credit markets and lock-in utility revenue bond financing.  Davenport, the city’s financial advisor, and city staff determined that an initial $30 million utility revenue borrowing will allow the city to lock-in financing while maintaining compliance with important financial and debt covenants that are required for revenue bonds (most notable the 15% debt service coverage ratio).  A public hearing on the issuance of the public utility revenue bonds has been noticed in accordance with Section 15.2-2606 of the Code of Virginia and will be held prior to consideration of this ordinance. Discussion:  City staff, working closely with the city’s financial advisor, VRA and bond counsel, has taken the necessary steps to prepare for a Bond issuance on or about October 30, 2019.  The ordinance proposed for Council adoption authorizes the issuance of bonds of an amount not to exceed the sum of $30,000,000, plus an amount necessary to refund the prior obligations selected for refunding, plus an amount necessary to pay costs of issuance.  Bond proceeds will be used to cover the costs of acquisition, construction and equipping of the City’s water and sewer system, and cost of issuance. Financial Impact:  The City will receive $30,000,000 to finance projects in accordance with the City’s Capital Improvement Program. Recommended Action:  Adoption of the ordinance. Next Steps Following Council Action:  City staff and the City’s advisors will take the necessary steps to close on the financing. 1. Donna Sayegh, 3104 Garland Drive, spoke in opposition to this item. Motion by Ms. Psimas, and seconded by Ms. Lucas-Burke, to adopt the following ordinance, and was adopted by the following vote: