Minutes 08/28/2001 - Laserfiche WebLink

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Au,qust 28, 2001 Recommendation: · Adoption of a resolution authorizing an application to the Virginia Public School Authority (VPSA) and authorizing the issuance of not to exceed $4,000,000 General Obligation School Bonds for the new John Tyler Elementary School. These bonds of the City will be sold to the Virginia Public School Authority pursuant to the Literary Fund Subsidy sale. · Adoption of an ordinance appropriating $4,000,000 in the Capital Improvements Fund, contingent upon the issuance of the VPSA bonds. Purpose and Need: · On March 28, 2000, the City Council adopted a resolution granting the School Board the authority to make application to the State Board of Education for a Literary Loan in the amount of $4,000,000 for construction of the new John Tyler Elementary School, an approved project in the School Board's Facilities Plan. · The State has elected not to make direct Literary Loans, but instead has authorized the VPSA to move forward with an interest rate subsidy bond issue that will provide the same funding to the localities on the First Priority Waiting List. · It is anticipated that sufficient funds will be available to fund Portsmouth's application for the new John Tyler Elementary School. · These bonds will be General Obligation Bonds and therefore must be authorized by the City Council. · An appropriation of $4,000,000 in the Capital Improvements Fund is necessary to provide the authority to spend the bond proceeds. On August 20, 2001, the School Board approved a resolution requesting the City Council to issue the bonds. Financial Impact: · These bonds will bear interest at 2% and will have a 20-year maturity. The debt service on these bonds is included in the FY 2002 Adopted Budget. Motion by Mr. Whitehurst, and seconded by Mr. Benn, to adopt the following resolution, and was adopted by the following vote: 01-259(A): "A RESOLUTION AUTHORIZING AN APPLICATION TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY AND AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $4,000,000 GENERAL OBLIGATION SCHOOL BONDS OF THE CITY OF PORTSMOUTH, VIRGINIA TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY PURSUANT TO THE LITERARY FUND SUBSIDY SALE AND PROVIDING FOR THE FORM AND DETAILS THEREOF. WHEREAS, in October of 2000, the Commonwealth of Virginia Board of Education (the "Board of Education") placed an application (the "Application") of the School Board of the City of Portsmouth, Virginia (the "School Board") for a loan in the amount of $4,000,000 (the "Literary Fund Loan") from the Literary Fund, a permanent trust fund established by the Constitution of Virginia (the "Literary Fund"), for financing the new John Tyler Elementary School project (the "Project") in the City of Portsmouth, Virginia (the "City"), on the First Priority Waiting List. WHEREAS, the Board of Education was to have approved the release of Literary Fund moneys to the School Board and make a commitment to loan such moneys to the School Board (the "Commitment") within one year of placement of the Application on the First Priority Waiting List upon receipt of the Literary Fund of an unencumbered sum available at least equal to the amount of the Application and the approval, by the Board of Education, of the Application as having met all conditions for a loan from the Literary Fund.