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<br />M Martinsville <br /> <br />city CouncB <br />Agenda Summary <br /> <br />Meeting Date: <br />Item No: <br />Department: <br />Issue: <br /> <br />August 1, 2006 <br /> <br />Finance <br /> <br />Patriot Center Shell Building <br /> <br />Summary: <br /> <br />(1) The resolution is primarily designed to authorize the City to enter into a subject to <br />appropriation support agreement whereby the City Council would consider appropriating funds <br />sufficient to payor reimburse Henry County for its lease payment obligations in years 2 through 5 <br />of the Lease Agreement it will enter into with the Henry County IDA in connection with the financing <br />of the project (Its a 5 year lease I financing arrangement with Patrick Henry National Bank). <br /> <br />(2) While the obligations of the City are purely on a subject to appropriation basis (not a debt), in <br />light ofthe Revenue Sharing Agreement in place among the City, Henry County, and the Henry <br />County IDA, Legal Counsel feels that 33% of the Bonds ($1,155,000) should be counted against <br />the City's ability to issue bank-qualified debt in the calendar year 2006. That issue is addressed in <br />Section 4 of the Resolution. Each calendar year the City can issue up tp $10,000,000 in tax- <br />exempt govemmental debt. At this time there are no plans to issue more than $10,000,000 in tax- <br />exempt bank qualified debt in 2006. <br /> <br />Attachments: <br /> <br />Recommendations: Approve <br /> <br />Motion <br />Second <br /> <br />Mayor Cobbe <br />V-Mayor Reynolds <br /> <br />Roop <br />Ferrill <br /> <br />Clark <br />