Minutes 02/10/1987 - Laserfiche WebLink

Home Browse Search

'1,6') 1- t...I TUESDAY, FEBRUARY 10, 1987 (to take advantage of call provisions in the initial issue and of currently-lower interest rates), subject to conditions set forth in said ordinance: WHEREAS, the City Council (the "Council") of the City of Martinsville, Virginia (the "City") adopted an Ordinance on August 28, 1984, requesting the Circuit Court of the City to order an election on the question of contracting a debt and issuing general obligation bonds of the City in an amount of up to $1,500,000 (the "1985 Bonds") for the purpose of paying the costs of various water system improvements; and WHEREAS, on September 4, 1984, the Circuit Court of the City ordered that an election be held on November 6, 1984 (the "Election"); and WHEREAS, at the Election, a majority of the City's voters approved the issuance of the 1985 Bonds; and WHEREAS, in an Order entered December 6, 1984, the Circuit Court of the City authorized the Council to proceed to carry out the wishes of the voters as expressed at the Election; and WHEREAS, pursuant to ordinances adopted on January 22, 1985 and January 28, 1985, the City issued the 1985 Bonds on March 1, 1985; and WHEREAS, the Council has determined that it is in the best interests of the City to issue general obligation refunding bonds of the City to refund the outstanding principal balance of the 1985 Bonds. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MARTINSVILLE, VIRGINIA: 1. The City Council of the City hereby determines that it is advisable to contract a debt and issue and sell the City's general obligation refunding bonds (the "1987 Bonds") in an aggregate principal amount not to exceed $1,160,264.17. The issuance and sale of the 1987 Bonds are hereby authorized. The proceeds from the sale of the 1987 Bonds shall be used to prepay the outstanding principal amount of the 1985 Bonds in full. 2. The full faith and credit of the City are hereby pledged to the payment of the principal of and interest on the 1987 Bonds as the same shall become due. Each year while any of the 1987 Bonds remain outstanding and unpaid, unless other funds are lawfully available and appropriated for the timely payment thereof, there shall be levied, without limitation as to rate or amount, and collected in accordance with law, an annual ad valorem tax on all taxable property in the City subject to local taxation sufficient to provide for payment of the principal of and interest on the 1987 Bonds as the same shall become due. 3. The 1987 Bonds are being issued pursuant to the provisions of Article VII, Section 10(a)(2) of the Constitution of Virginia, therefore, the City hereby also pledges to the payment of the principal of and interest on the 1987 Bonds as the same shall become due all the revenues after payment of operating expenses from the water system of the City.