Agenda 05/12/2009 - Laserfiche WebLink

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April 14, 2009 capital needs. Council approved this ordinance on the first reading on March 24, 2009 and the Charter requires a second reading. Mr. Cole reported there will be a recommendation of a bank with potential closing date of May 14,2009. On a motion by Kimble Reynolds, seconded by Mark Stroud, with the following 5-0 recorded vote: Mrs. Lawson, aye; Mr. Reynolds, aye; Mr. Stroud, aye; Mr. Teague, aye; and Mr. Turner, aye, Council approved, on second reading the following ordinance reciting the expediency of the Issuance of up to $5,535,000 principal amount of general obligation bonds: CITY OF MARTINSVILLE, VIRGINIA AN ORDINANCE RECITING THE EXPEDIENCY OF THE ISSUANCE OF UP TO $5,535,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA, AND SETTING FORTH THE PURPOSE, IN GENERAL TERMS, FOR WHICH THE BONDS ARE TO BE ISSUED, THE MAXIMUM AMOUNT OF THE BONDS TO BE ISSUED AND THE MAXIMUM LENGTH OF TIME SUCH BONDS WILL BE OUTSTANDING Adopted on April 14, 2009 Be it Ordained by the Council of the City of Martinsville, Virginia: Section 1 - FindiDl!s and Determinations The City Council ("City Council") of the City of Martinsville, Virginia (the "City") proposes to issue bonds for the purposes of (i) refunding the outstanding balance of the City's $2,529,764 General Obligation Refunding Bond, Series 2005 (the "2005 Refunding Bond"), (ii) refunding the outstanding balance of thc City's not to excecd $2,500,000 General Obligation Bond (Landfill Project), Series 2005 (the "2005 Landfill Bond" and, together with the 2005 Refunding Bond, the "Bonds to be Refunded") and (iii) financing the acquisition, construction and equipping of municipal building improvements, landlill improvements and acquisition of a truck for municipal purposes (together, the "2009 Project") and 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 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 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 support the activities of the City and the City's municipal purposes: (iii) the most effective, efficient imd expedient manner in which to provide such funds to the City is through the issuance of general obligation Bonds in an original principal amount 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, 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 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 the best interests of the City and its citizens. Section 2 - Description of Bonds 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 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 $1,200,000. The maximum length oftime that the Bonds will be outstanding is twenty years from the date of issuance of the Bonds. The form and 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 AUTHORIZING THE ISSUANCE OF UP TO $5,535,000 MAXIMUM PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS OF THE CITY OF MARTINSVILLE, VIRGINIA, AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF," which will be introduced before the Council and considered for passage following a public hearing as required by law. Section 3 - Actions Authorized All actions of the City Manager, Assistant Finance Director, City Attorney, Bond Counsel, the City's financial advisor and all other oHicers, employees and agents of the City in furtherance of the issuance of the Bonds and the refunding of the Bonds to be Refunded are hereby approved and ratified. Section 4 - Invaliditv of Sections If any section, paragraph, clause or provision of this Ordinance shall be held invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, clause or provision shall not afTect any of the remaining portions of this Ordinance. Section 5 - Headin!!s of Sections The headings of the sections of this Ordinance shall be solely for convenience of reference and shall not affect the mewling, construction, interpretation or effect of such sections of this Ordinance. Section 6 - Effective Date and FiJin!! of Ordinance The Council hereby declares in the public interest that this Ordinwlce shall become effective immediately upon its passage. A eopy of this Ordinance, certified by the Clerk of the Council, shall be filed with the Clerk of the Circuit COllrt of the City of Martinsville, Virginia.