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October 1, 1985
<br />
<br />(c)
<br />
<br />A bond resolution authorizing the issuance of $9,850,000 in
<br />Utility Bonds for the purpose of providing funds to pay for
<br />extensions and additions to the water and sewer system--
<br />
<br />General Obligation Publ~
<br />capital improvements,
<br />
<br />On November 2, 1982, the voters of the City of Portsmouth approved a referendum whic]
<br />provided for~the issuance of these bonds in the form of general obligation bonds
<br />having the full faith and credit of the City behind them. However, the interest and
<br />principal on the bonds are to be paid from the utility system revenues. This form
<br />of financing is called "double barrel" bonds and commands a lower interest rate than
<br />revenue bonds. The proceeds from the sale of this issue will be used to fund those
<br />projects which have appeared in the last several CIP's as well as a small portion of
<br />the proposed 1985-86 CIP (i.e.,$474,281).
<br />
<br />An ordinance to appropriate $40,000 from the Capital Improvement Fund and $20,000 fr~
<br />the Capital Improvement Fund and $20,000 from the Public Utility Capital Improvement
<br />Fund for expenses related to the issuance of $30,000,000 of General Obligation Bonds~
<br />
<br />Expenses which are anticipated to be incurred during the process of issuing the bond~
<br />include printing fees for the Official statement, bond printing costs, legal fees,
<br />advertising costs, postage and other necessary expenses.
<br />
<br />These expenses would be considerably higher if it were necessary for the City to
<br />employ the services of a financial advisor. However, with the a~sZ~kance of the
<br />Municipal Finance Commission, the City's staff is able to issue bonds without a con-
<br />sultant's assfstance. Portsmouth is the only City in Virginia that I know of that
<br />does incur the expense of employing a financial advisor to assist in the issuance
<br />bonds.
<br />
<br />(d) A motion to hold a special meeting of the City Council at 1:00 p.m., on October 29,
<br /> 1985--
<br />
<br />Upon receipt of the bids which are scheduled to be opened at 12:00 noon, on October
<br />29, 1985, it will be necessary to conduct a tabulation and confirmation of the lowes'
<br />bidder. After the low bidder has been determined, it will be necessary for the City
<br />Council to meet~oconsider acceptance of the bid.
<br />
<br /> For Council's information, I am also enclosing the tentative calendar of major events for
<br />the bond issue as well as listings of the projects ~cheduled to be funded with the bond procee~
<br />Should you have any questions concerning the vents, please call me.
<br />
<br /> I would like to conclude with the summation that the market for municipal bonds at this
<br />time, coupled with the need to obtain the permanent financing for these projects that have be-
<br />come the cornerstone of a revitalized Portsmouth, appears to be very favorable. This recom-
<br />mended~bond issue will minimize the cost to the City in the form of anticipated interest rates
<br />paid, and thereby save the taxpayers many dollars over the life of the bond issue, t there-
<br />fore recommend favorable action by the City Council on these items."
<br />
<br /> (a) A resolution a~t_hom~"_k~ th~ issuance of $20,150,000 principal amount of General
<br />Obligation Public Improvement Bonds of the City of Portsmouth, Virginia, for the purpose of
<br />providing funds to pay the costs of various public improvement projecns of and for such City,
<br />fixing the form of such bonds, providing for the sale of such bonds and providing the authori-
<br />zation of such bonds here~n is, in part, ~n lieu of certain General Obligation Public Improve-
<br />ment Bonds heretofore authorized.
<br />
<br /> On motion of Mr. ]ray and seconded by Mrs. Lucas, the following resolution was adopted,
<br />and by the following vote:
<br />
<br />"A RESOLUTION AUTHORIZING THE ISSUANCE OF TWENTY MILLION
<br /> ONE HUNDRED FIFTY THOUSAND DOLLARS ($20,150,000)
<br /> PRINCIPAL AMOUNT OF GENERAL OBLIGATION PUBLIC
<br /> IMPROVEMENT BONDS OF THE CITY OF PORTSMOUTH, VIRGINIA,
<br /> FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COSTS OF
<br /> VARIOUS PUBLIC IMPROVEMENT PROJECTS OF ~kND FOR SUCH
<br /> CITY, FIXING THE FORM OF SUCH BONDS, PROVIDING FOR THE
<br /> SALE OF SUCH BONDS AND PROVIDING THE AUTHORIZATION OF
<br /> SUCH BONDS HEREIN IS, IN PART, IN LIEU OF CERTAIN
<br /> GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS HERETOFORE
<br /> AUTHORIZED
<br />
<br /> WHEREAS, in the judgment of the Council (the
<br />"Council") of the City of Portsmouth, Virginia (the
<br />"City"), it is necessary and expedient to issue and sell
<br />General Obligation Public Improvement Bonds of the City
<br />in the principal amount of Twenty Million One Hundred
<br />Fifty Thousand Dollars ($20,150,000) for t~e purpose of
<br />providin~ funds to pay the costs of various public
<br />impr. ove~e~nt.~p~3~c~ts of the Ci~y~ ~.a~n~d~
<br />
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