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September 13, 2022 <br /> <br />“ORDINANCE ACCEPTING ASSISTANCE TO FIREFIGHTERS GRANT FUNDS IN <br />THE AMOUNT OF $286,562.34 FROM THE FEDERAL EMERGENCY MANAGEMENT <br />AGENCY AND APPROPRIATING SAID AMOUNT IN THE FY 2023 GRANTS FUND TO <br />PROVIDE PARAMEDIC TRAINING TO FIREFIGHTERS. ” <br /> <br />Ayes: Barnes, Battle, Lucas-Burke, Moody, Whitaker, Woodard, Glover <br />Nays: None <br /> <br />22 - 263 - Adoption of an ordinance authorizing the issuance and sale of revenue <br />bonds by the City of Portsmouth, Virginia, and establishing the terms, details, and <br />provisions for the payment thereof (water and sewer system revenue bonds; total <br />principal amount not to exceed $27,700,000). <br /> <br /> <br />Background: <br /> <br /> City Council adopted the FY 2023 Capital Improvements Program, which <br />designates projects and their funding sources. <br /> <br /> The Virginia Resources Authority (VRA) has an upcoming pooled financing issue <br />that would allow the city to quickly and efficiently enter the credit markets and lock-in utility <br />revenue bond financing. <br /> <br /> Davenport, the city’s financial advisor, and city staff determined that an initial utility <br />revenue borrowing of approximately $25 million will allow the city to lock-in financing while <br />maintaining compliance with important financial and debt covenants that are required for <br />revenue bonds (most notable the 15% debt service coverage ratio). <br /> <br /> A public hearing on the issuance of the public utility revenue bonds has been <br />noticed in accordance with Section 15.2-2606 of the Code of Virginia and will be held <br />prior to consideration of this ordinance. <br /> <br />Discussion: <br /> <br /> City staff, working closely with the city’s financial advisor, VRA and bond counsel, <br />has taken the necessary steps to prepare for a Bond issuance in or about October 2022. <br /> <br /> The ordinance proposed for Council adoption authorizes the issuance of bonds in <br />an amount not to exceed the sum of $27,700,000. <br /> <br /> Bond proceeds will be used to cover the costs of acquisition, construction and <br />equipping of the City’s water and sewer system, and cost of issuance. <br /> <br />Financial Impact: <br /> <br /> The City will receive approximately $25,000,000 to finance water and sewer <br />projects in accordance with the City’s Capital Improvement Program. <br /> <br />Recommended Action: <br /> <br /> <br /> Adoption of the ordinance. <br /> <br />Next Steps Following Council Action: <br /> <br /> City staff and the City’s advisors will take the necessary steps to close on the <br /> <br />financing. <br /> <br /> <br />1. Donna Sayegh, 3104 Garland Drive, asked what projects these bonds would fund. <br /> <br />Motion by Ms. Lucas-Burke, and seconded by Dr. Whitaker, to adopt the following <br />ordinance, and was adopted by the following vote: <br /> <br />“ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF REVENUE BONDS BY <br />THE CITY OF PORTSMOUTH, VIRGINIA, AND ESTABLISHING THE TERMS, <br />DETAILS, AND PROVISIONS FOR THE PAYMENT THEREOF (WATER AND SEWER <br />REVENUE BONDS; TOTAL PRINCIPAL AMOUNT NOT TO EXCEED $27,700,00).” <br /> <br />Ayes: Barnes, Battle, Lucas-Burke, Moody, Whitaker, Woodard, Glover <br />Nays: None <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />