Minutes 05/27/1980 - Laserfiche WebLink

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32 May 27~ 1980 ~n light of the cost to the City ($35,320) and the benefit to the individual firms involved ~$725), the rate reduction would be of marginal benefit to an individual firm. In addition, those service stations in the City owned by oil companies would also benefit from this suggested reduction. Because their volume is generally greater than that of independently owned stations, those stations would receive a greater than average benefit from any rate reduction. This would occur at a time when the major oil companies are enjoying record profits. In summary, the ability of this local government to react in a significant way to the economic situation that gasoline retailers find themselves in is minimal. An attempt by the City to pin-point tax relief to a select group of businesses would put the City in a position of discriminating between varying requests; a situation that we could not successfully deal with. A general tax reduction would be too costly to the City at this time. The 1980-81 Operating Budget that the City Council approved May 13, 1980, includes a revenue estimate for Business Licenses that is based on no change in the tax rate. Considering the points outlined above, I recommend that the City Council not take any action to grant rate relief at this time." Motion of Mr. Holley and seconded by Mr. Gray, that the rules to be suspended for Charles V. lFhitmore, representing Gasoline Retailers legislative Committee, to speak and was adopted by unanimous vote. Mr. Whitmore spoke and requested that consideration be given to reduction of license tax on gasoline alone. Motion of Mr. Early and seconded by Mr. Holley, that the City Manager to report back with recommendations, and was adopted by 6-1 (Nay-Oast) vote. T~e following reports from the City Manager were presented: 80-190 "Consideration of a resolution authorizing the issuance of seven million dollar~ ($7,000,000) Principal Amount of General Obligation Public Improvement Bonds of the City of Po Virginia, for the purpose of providing funds to pay the costs of various public improvement projects of the City, fixing the form of said bonds and providing for the sale of said bonds. The previous Notice of Sale for this bond issue was withdrawn due to market conditions; therefore+ this resolution requires the reauthorization for issuance of $7,000,000 of General Obligation Bonds. In addition to reupdating the authorization, this resolution also fixes the date of sale for June 17 [Tuesday) at 12:00 noon Eastern Daylight Time. The Municipal Fin Commission has recommended, based on current market conditions, that the City proceed to issue the General Obligation Bonds during the week of June 16, 1980. The City Manager recommends adoption. " On motion of Mr. Barnes and seconded by Mr. Gray, the following resolution was adopted, and by the fellowing vote: "A RESOLUTION AUTHORIZING THE ISSUANCE OF SEFEN MILLION DOLLARS ($7,000,000) PRINCIPAL AMOUNT OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS OF THE CITY OF PORTSMOUTH, VIRGINIA, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COSTS OF VARIOUS PUBLIC IMPROVEMENT PROJECTS OF SAID CITY, FIXING THE FORM OF SAID BONDS AND PROVIDING FOR THE SALE OF SAID BONDS. WHEREAS, in the judgment of the Council of the City of Portsmouth, Virginia, it is necessary and expedient to mssue and sell General Obligation Public Improvement Bonds of the City of Portsmouth (the "City") in the principal amount of Seven Million Dollars ($7,000,000) for the purpose of providing funds to pay the costs of various public improvement projects of the City; NOW, THEREFORE, BE IT RESOLVED by ~the Council of the City of Portsmouth, Virginia: 1. Pursuant to Chapter S of Title 1S.1 of the Code of Virginia, 19SO, as amended, the same being the Public Finance Act, and the Charter of the City, for the purpose of providing funds to pay the cost of various public improvement projects ~£ the City as set out in Section 4 hereof, there are hereby authorized to be issued Seven Million Dollars ($7,000,000) principal amount of general obligation bonds of the City to be designated "General Obligation Public Improvement Bonds" (the "Bonds"). The Bonds shall be dgted as of July 1, 1980; shall be numbered from one (1)'consecutively upward in order of maturity (earlier maturities first); shall be of the denomination of $5,000 each; shall bear interest payable January 1, 1981, and semi-annually thereafter on July 1 and January 1 of each year, at such rate or rates per annum as shall be determined by resolution of this Council upon the sale of the Bonds; shall mature serially in numerical order $350,000 principal amount of Bonds on July 1 in each of the years 1981 to 2000, both inclusive; and shall be issued as coupon bonds registrable as to principal only or as to both principal and interest. The Bonds maturing on and after July 1, 1991, shall be subject to redemption at the option of the City prior to their stated maturities on or after July 1, 1990, in whole at any time, or in part from ~ime to time on any interest payment date in any order determined by the City (except that if less than all of the Bonds of a maturity are called for redemption the particular Bonds of such maturity to be redeemed shall be selected by lot), upon payment of the principal amount of the Bonds to be redeemed together with the interest accrued thereon to the date fixed for redemption plus a premium of one-quarter of one percent (1/4 of 1%) of the principal amount of each Bond to be redeemed for each twelve (12) month period or rtsmouth, ~nce