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<br />March 24, 2009
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<br />following ordinance authorizing an RFP for possible bond re-financing and for
<br />anticipated capital needs for FY 1 0:
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<br />CITY OF MARTINSVILLE, VIRGINIA
<br />AN ORDINANCE RECITING THE EXPEDIENCY OF THE ISSUANCE OF UP TO $5,535,000 PRINCIPAL AMOUNT
<br />OF GENERAL OBLIGATION BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA, AND SETTING FORTH THE
<br />PURPOSE, IN GENERAL TERMS, FOR WHICH THE BONDS ARE TO BE ISSUED, THE MAXIMUM AMOUNT OF
<br />THE BONDS TO BE ISSUED AND THE MAXIMUM LENGTH OF TIME StiCH BONDS WILL BE OUTSTANDING
<br />Adopted on April 14, 2009 Be it Ordained by the Council of the City of Martinsville, Virginia:
<br />Section I -Findine:s and Determinations
<br />The City Council ("City Council") of the City of Martinsville, Virginia (the "City") proposes to issue bonds for the purposes of (i)
<br />refunding the outstanding balance of the City's $2,529,764 General Obligation Refunding Bond, Series 2005 (the "2005 Refunding Bond"), (ii)
<br />refunding the outstanding balance of the City's not to exceed $2,500,000 General Obligation Bond (Landfill Project), Series 2005 (the "2005 Landfill
<br />Bond" and, together with the 2005 Refunding Bond, the "Bonds to be Refunded") and (iii) financing the acquisition, construction and equipping
<br />of municipal building improvements, landfill improvements and acquisition of a truck for municipal purposes (together, the "2009 Project") and
<br />hereby finds and determines that: (i) the City is in need of funds to be used by the City for the refunding of the Bonds to be Refunded, for costs of the
<br />2009 Project, for costs of issuance of the Bonds (defined below) and for payment of interest on the Bonds; (ii) the obtaining of such funds will be for
<br />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
<br />of the City to provide funds for and otherwise support the activities of the City and the City's municipal purposes; (iii) the most effective, efficient
<br />and expedient manner in which to provide such funds to the City is through the issuance of general obligation Bonds in an original principal amount
<br />not to exceed $5,535,000 to be issued by the City as further described herein (the "Bonds") to be used for the refunding of the Bonds to be Refunded,
<br />for costs of the 2009 Project, for certain costs of issuance of the Bonds and for payment of interest on the Bonds; (iv) the issuance of the Bonds is
<br />within the power of the City to contract debts, borrow money and make and issue evidence of indebtedness; and, (iv) the issuance of the Bonds is in
<br />the best interests of the City and its citizens.
<br />Section 2 -Description of Bonds
<br />The City Council finds that it is expedient for the City to borrow money and issue the Bonds for the refunding of the Bonds to be Refunded in a
<br />maximum principal amount not to exceed $4,335,000 and for the financing of the 2009 Project in a maximum principal amount not to exceed
<br />$1,200,000. The maximum length of time that the Bonds will be outstanding is twenty years from the date of issuance of the Bonds. The form and
<br />details of the Bonds which are proposed to be issued will be more specifically set forth in a City Ordinance to be entitled "AN ORDINANCE
<br />AUTHORIZING THE ISSUANCE or UP TO $5,535,000 MAXIMUM PRINCIPAL AMOUNT or GENERAL OBLIGATION BONDS OF THE
<br />CITY OF MARTINSVILLE, VIRGINIA, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF," which will be irtroduced
<br />before the Council and considered for pa'iSage following a public hearing as required by law.
<br />Section 3 -Actions Authorized All actions of the City Manager, Assistant Finance Director, City Attorney, Bond Counsel, the City's
<br />financial advisor and all other officers, employees and agents of the City in furtherance of the issuance of the Bonds and the refunding of the Bonds to
<br />be Refunded are hereby approved and ratified.
<br />Section 4 -Invalidity of Sections If any section, paragraph, clause or provision of this Ordinance shall be held invalid or unenforceable for any
<br />reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not alTect any of the remaining portions of this
<br />Ordinance.
<br />Section 5 -Headine:s of Sections
<br />The headings of the sections of this Ordinance shall be solely for convenience of reference and shall not affect the meaning, construction,
<br />interpretation or effect of such sections of this Ordinance.
<br />Section 6 - Effective Date and Filine: of Ordinance
<br />The Council hereby declares in the public interest that this Ordinance shall become effective immediately upon its passage. A copy of this Ordinance,
<br />certified by the Clerk of the Council, shall be filed with the Clerk of the Circuit Court of the City of Martinsville, Virginia.
<br />
<br />City Manager and Finance Director Clarence Monday reported the City
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<br />presently has three outstanding bond obligations with interest rates higher than
<br />today's market. Staff believes by re-financing these long-term debts,
<br />approximately $100,000 could be saved over the life of the bonds. After
<br />examining FY10 capital needs, $400,000 may be needed to fund regular capital
<br />items including enhancements to City courtrooms, Municipal Building
<br />improvements, and a bucket truck for the Electric Department. He pointed out
<br />the potential methane landfill project could cost the City approximately $800,000
<br />and will only be authorized by Council if research determines that such is a
<br />profitable venture. This ordinance and resolution do not commit the City to
<br />actual re-financing nor does either give approval for FYIO capital or landfill
<br />projects. The ordinance and resolution only authorizes staff to issue a no-cost
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