Agenda 07/12/2005 - Laserfiche WebLink

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an average useful life of such portions). The Council has determined that the Martinsville School Board is applying to the Literary Fund of the Commonwealth for long-term financing of the School Project, and the Council anticipates that it will approve such application for submission to the Department of Education of the Commonwealth. The Council expects that the principal of the Note shall be paid, prepaid or redeemed from proceeds of such long-term Literary Fund financing of the School Project or other available long-term financing. (b) The Council hereby finds and determines that (i) the City is in need of funds to be used by the City for purposes of the acquisition, construction and equipping of renovations, additions and improvements to the City of Martinsville Landfill, including corrective action plan construction mandated by environmental regulations and closure of the Landfill mandated by environmental regulations (together, the "Landfill Project"), for costs of issuance of the Bond and for the payment of interest on the Bond, (ii) the obtaining of such funds will be for municipal purposes of the City for the welfare of citizens of the City for purposes which will serve the City and its citizens pursuant to the authority of the City to provide funds for and otherwise provide and operate solid waste management facilities and support the City's municipal purposes, (iii) the most effective, efficient and expedient manner in which to provide such funds is by general obligation bonds in the maximum principal amount of $2,500,000 issued by the City as further described herein (the "Bond") to be sold to the Bank, which has offered to purchase the same on certain terms and conditions pursuant to the Bank's proposal, the Bond and Note Purchase Agreement and the Financing Agreement, the forms of which have been presented to the City Council, the issuance of such Bond being within the power of the City to contract debts, borrow money and make and issue evidence of indebtedness and (iv) the issuance of the Bond in the best interests of the City and its citizens. The Council hereby finds and determines that the probable useful life ofthe Landfill Project, and any and all portions of the Landfill Project, exceeds twenty-five years and that the Bond is payable and shall mature within the probable useful life of the Landfill Project and the probable useful life of any and all portions of the Landfill Project (whether considered alone or as an average useful life of such portions). The Council further determines that both the Note and the Bond are payable and shall mature within the average probable useful life of the School Project and the Landfill Project considered together. Section 3 Authorization. Form and Details of the Note and the Bond (a) There is hereby authorized to be issued a general obligation note of the City in the aggregate principal amount of up to $2,500,000 for municipal purposes as described in Section 2 (a) above. The Note authorized herein shall be designated "General Obligation Note (School Project), Series 2005," shall be issuable as a fully registered note, without coupons, shall be dated the Closing Date, shall be numbered R-I, shall bear interest payable on the Note Payment Dates at a rate per annum of2.92% on the First Note Advance (defined in the Financing Agreement) and at the rate or rates per annum calculated as follows on each Subsequent Note Advance (defined in the Financing Agreement): 78% of the average yield between a 3 year U.S. Treasury Certificate and a 4 year U.S. Treasury Certificate, calculated as of the day of the Subsequent Note Advance; all in accordance with the provisions herein and the provisions of the 4