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<br />4~ <br /> <br />TUESDAY <br /> <br />AUGUST 28, 1984 <br /> <br />Electric escrow funds is assured to finance a majDr portion of the project; whereas, <br /> <br />Councilman Groden, who initiated the proposition that Electric escrow funds be used and <br /> <br />(who) heretofore was not in support of a referendum and/or issuance of bonds for the <br /> <br />project unless and until usage of the escrowed funds is assured, indicated that he would <br /> <br />support the motion, inasmuch as the decision whether to use (and if so, how much of) <br /> <br />the escrow funds can be made at a later date as can a determination as to how much of <br /> <br />the bonds authorized--assuming voter approval--are to be issued. The motion carried by <br /> <br />- <br /> <br />a vote of three-to-two (Councilman Oakes, Vice-Mayor Severt, and Councilman Groden <br /> <br />voting in the affirmative; and Mayor Cole and Councilman Williams voting against the <br /> <br />motion). Said adopted ordinance follows: <br /> <br />WHEREAS, the City Council of the City of Martinsville, Virginia (the <br />"City Council"), has determined that it is necessary to undertake a <br />sewer plant expansion and various sewer system improvements (the <br />"Projects") to serve the City of Martinsville, Virginia (the "City"); <br /> <br />WHEREAS, the City Council has determined that the City should issue <br />its general obligation bonds to pay the costs of the Projects; <br /> <br />WHEREAS, the City will pledge the revenues from the Projects to the <br />payment of principal of and interest on such bonds and such bonds are <br />issued pursuant to Article VII, Sec. 10(a)(2) of the Constitution of <br />Virginia for a specified undertaking from which the City may derive <br />a revenue and shall not be included within the otherwise authorized <br />indebtedness of the City in determining the debt limitation of the <br />City, except as may be required by the provisions of Sec. 10(a)(2); <br />and <br /> <br />WHEREAS, Chapter 11 of the Charter of the City requires the City <br />Council to request the Circuit Court of the City of Martinsville, <br />Virginia, <br />to order a bond referendum to take the sense of the <br />qualified voters of the City on the question of contracting a debt <br />and issuing general obligation bonds of the City to pay the cost of <br />the Projects; now, therefore, <br /> <br />BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MARTINSVILLE, <br />VIRGINIA: <br /> <br />1. The City Council hereby determines that it is necessary <br />and expedient to contract a debt and issue general ob- <br />ligation bonds of the City in an amount not to exceed <br />$3,325,000 (the "Bonds") for the purpose of paying the <br />