Minutes 09/28/1999 - Laserfiche WebLink

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September 28, 1999 (i) The applicant shall comply with all applicable codes, ordinances, and regulations of federal, state and local governments and shall obtain and maintain all necessary licenses and permits. (j) All taxes and fees shall be paid in a timely manner. REVOCATION OF PERMIT: Violation of any of the above conditions may serve as grounds for revocation of the use oermit by the City Council." Ayes: Benn, Griffin, Moody, Pitts, Robinett Whitehurst, Holley Nays: None - City Manager's Report - 99 - 217 - Adoption of resolutions authorizing the issuance and sale of up to $5,950,764 of Qualified Zone Academy Bonds (QZABs) for the purpose of school capital improvements. Recommendation: · Adoption of a resolution authorizing the issuance and sale of up to $5,950,764 of Qualified Zone Academy Bonds (QZABs) for the purpose of school capital improvements. Purpose and Need: · The Federal Taxpayer Relief Act of 1997 added Section 1397E of the Internal Revenue Code to authorize a new type of debt instrument known as a qualified zone academy bond (QZAB). These are taxable bonds issued by a state or local government to be used to improve certain eligible public schools. · An eligible school is defined as having 35% or more of the school population qualified for free or reduced lunch. · In lieu of receiving interest payments, a holder of a QZAB receives a federal income tax credit for each year the QZAB is outstanding. · These bonds are "interest free" to the City. · The City of Portsmouth has been approved for an allocation from the Commonwealth in the amount of $4,950,764 to issue QZABs and is requesting an additional $1,000,000, which is expected to be approved. · It is the intent of the School System to use these bonds to fund projects proposed in the School Facilities plan, once adopted. · These bonds would be issued no later than December 1999. Financial Impact: · QZABs will be general obligation debt of the City. The repayment period for these bonds is estimated at 14 years. · The issuance of the bonds for school construction projects would be considered an "advance" of future CIP authorizations. · As these bonds are "interest free", the amount of debt service will be less than that normally projected on general obligation bonds. This will have a favorable impact on the City's goals with respect to debt service as a percent of operating revenues, while accomplishing the same level of debt funding. Motion by Mr. Robinett, and seconded by Mr. Whitehurst, to adopt the following resolution, and was adopted by the following vote: "A RESOLUTION SPECIFYING THE FORM, DETAILS AND PROVISIONS FOR THE PAYMENT OF UP TO $5,950,764.00 IN CITY OF PORTSMOUTH, VIRGINIA GENERAL OBLIGATION QUALIFIED ZONE ACADEMY BONDS.