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HomeMy WebLinkAbout2001-31r + . ~ aoo` ~3t ~~ S A RESOLUTION AUTHORIZING THE ISSUANCE, SALE, DETAIL • AND PAYMENT OF A $401,600 GENERAL OBLIGATION WATER BOND, SERIES OF 2002 OF THE TOWN OF PULASHI, VIRGINIA WHEREAS, the Council of the Town of Pulaski, Virginia (the "Council") has determined it necessary and expedient to make improvements (the "Project") to the water system (the "Water System") of the Town of Pulaski, Virginia (the "Town") and to issue a general obligation bond of the Town in the amount of $401,600 to provide funds, together with other available funds, to finance the cost of the Project. WHEREAS, pursuant to the Public Finance Act of 1991, the Town is authorized to issue its bonds to pay for improvements to the Water System and the cost of issuing the bonds. WHEREAS, the Council has held a public hearing on the proposed bond issue in accordance with Section 15.2-2606 of the Public Finance Act of 1991. BE IT RESOLVED BY COUNCIL OF THE TOWN OF PULASKI, VIRGINIA: 1. Pursuant to the Constitution of Virginia and the Public Finance Act of 1991, there is hereby authorized to be issued and sold a general obligation bond of the • Town in the aggregate principal amount of $401,600, to provide funds to pay the cost of improvements (the "Project") to the Town's water system (the "Water System") and the cost of issuing the bond. To the extent allowed under Section 15.2-2601 of the Public Finance Act of 1991, the Council hereby elects to have the Bond, as defined hereafter, issued under the provisions of the Public Finance Act of 1991 without regard to the requirements, restrictions or other provisions contained in any charter or local or special act applicable to the Town. ~- 2. After mature consideration of the methods of sale of such bond and current conditions of the municipal bond mazket, it is hereby determined that it is in the best interest of the Town to accept the offer of the United States of America (the "Government"), to purchase the bond upon certain terms and conditions set forth in the Government's letter dated January 24, 2001, addressed to the Town Manager, a copy of which has been presented to the Council at the meeting at which this resolution is adopted. Such offer is hereby accepted, and the Town hereby agrees to meet such terms and conditions. 3. The bond shall be in the denomination of $401,600, and shall be designated • "General Obligation Water Bond, Series of 2002" (the "Bond"). The Bond shall bear interest at the rate of the lower of (a) 4.50% per year, or (b) the rate quoted by the Government as the closing rate effective on the Closing Date, as hereinafter defined. The execution of the Bond pursuant to Section 6 of this resolution shall conclusively evidence the interest rate stated in the Bond as having been approved and authorized by this resolution. The Bond shall be in fully registered form, shall be numbered R-1 and shall be dated the date of its delivery to the Government (the "Closing Date"). Interest only shall be payable on the Bond on the first anniversary of the Closing Date. Equal in- stallments of combined principal and interest on the Bond shall be payable beginning 13 months after the Closing Date and continuing on the same date of each month thereafter until the principal of the Bond is paid in full. Such installments shall be in an amount sufficient to amortize fully the principal of such Bond over 468 months at the rate of interest on such Bond. If not sooner paid, the final installment on the Bond shall be due and payable 40 years from the Closing Date. In the event the Closing Date occurs on the 29th, 30th or 31st day of a month, the payment date shall be the 28th day of the month. Any payment on the Bond shall be applied first to interest accrued to the payment date and then to principal. Installments shall be payable in lawful money of the United States of .America by check or draft mailed to the registered owner of the Bond at its address as it appears on the registration books, except that the final installment shall be payable upon presentation and surrender of the Bond at the office of the Town Clerk who is hereby appointed Registrar. • 4. At the request of the Government, the Bond may be delivered as a fully registered bond in the alternative form contained herein providing for principal advances to be made from time to tune by the Government in an aggregate amount not to exceed $401,600. An authorized officer of the Government shall enter the amount and the date of each such principal advance on the Certificate of Principal Advances attached to the Bond when the proceeds of such advance are delivered to the Town. Each such principal advance shall bear interest from the date of such advance so entered on the certificate. 5. Installments of principal due on the Bond may be prepaid at the option of the Town at any time as a whole or in part from time to time (but if in part, in inverse order of their maturities), without premium. Notwithstanding the above, the Town may at any time deliver moneys to the Government with instructions that such moneys be credited against future installments due on the Bond in inverse chronological order. Pre- payments shall not affect the obligation of the Town to pay the remaining installments payable as provided in paragraph 3 above. 6. The Bond shall be signed by the Mayor or Vice Mayor of the Town and the Town's seal shall be affixed thereto and attested by the Town Clerk or Deputy Clerk. 7. The Bond shall be in substantially the following form: • No. R-1 $401,600 2 • UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA TOWN OF PULASKI General Obligation Water Bond, Series of 2002 The Town of Pulaski, Virginia (the "Town"), for value received, hereby acknowledges itself indebted and promises to pay to the United States of America, or registered assigns, the principal sum [equal to the aggregate amount of principal advances shown on the attached Certificate of Principal Advances, but not to exceed the sums of FOUR HUNDRED ONE THOUSAND SIX HUNDRED AND 00/100 DOLLARS ($401,600) and to pay to the registered owner hereof interest on the unpaid principal from the date [hereof) [of each principal advance shown on the attached Certificate of Principal Advances] until payment of the entire principal sum at the rate of percent (_%) per year. Interest only on this bond is due and payable on and • .Installments of combined principal and interest of $ are payable beginning ,and continuing on the same day of each month thereafter until the principal of this bond is paid in full. Any payment on this bond shall be applied first to interest accrued to such payment date and then to principal. If not sooner paid, the final installment shall be due and payable 40 years from the date hereof. Such installments shall be payable in lawful money of the United States of America by check or draft mailed to the registered owner at its address as it appeazs on the registra- tion books kept for that purpose at the office of the Town Clerk who has been appointed Registrar, except that the final installment shall be payable upon presentation and surrender hereof at the office of the Registrar. This bond has been authorized by a resolution duly adopted by the Council of the Town on (the "Bond Resolution") and is issued pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Public Finance Act of 1991, to provide funds, together with other available funds, to finance improvements to the Town's water system (the "Water System"). Reference is hereby made to the Bond Resolution and any amendments thereto for the provisions, among 1 Alternative language to be used if the Government requests provision for principal advances. • others, describing the pledge and covenants securing this bond, the nature and extent of the security, the terms and Conditions upon which this bond is issued, the rights and • obligations of the Town and the rights of the bondholder. Both principal of and interest on this bond are payable from ad valorem taxes to be levied without limitation as to rate or amount on all property in the Town subject to taxation to pay the installments of principal and interest on this bond to the extent other funds of the Town are not lawfully available and appropriated for such purpose, and the full faith and credit of the Town are pledged therefor. In addition, the principal of and interest on this bond aze payable from the rates or fees to be charged users of the Water System, which rates or fees aze required to be maintained at a level that will produce sufficient revenue to pay all costs of operation of the Water System and the installments of principal and interest on this bond and any other bonds heretofore or hereafter issued on account of the Water System and secured by a pledge of revenues of the Water System. The principal of and interest on this Bond are secured by a pledge of the Net Revenues of the Water System and the Town's sewer system (the "Sewer System") as provided in the Bond Resolution. Such pledge is on parity with the similar pledges of (a) the Net Revenues of the Water System to the payment of the principal of, and interest on, the Town's $572,800 General Obligation Water Bond, Series of 1995 and (b) the Net Revenues of the Sewer System to the payment of the principal of, and interest on, the • Town's $574,600 General Obligation Sewer Bond, Series of 1995 and $698,200 General Obligation Sewer Bond, Series of 2001. Additional bonds secured equally and ratably with this bond by a pledge of the Net Revenues of the Water System may be issued from time to time under the conditions, limitations and restrictions set forth in the Bond Resolution. This bond is fully registered as to both principal and interest in the name of United States of America. Transfer of this bond may be registered upon the registration books of thetRegistraz. Prior to due presentment for registration of transfer the Registraz shall treat the registered owner as the person exclusively entitled to payment of principal and interest and the exercise of all other rights and powers of the owner. Installments of principal due on this bond may be prepaid at the option of the Town at any time as a whole or in part from time to time (but if in part, in inverse order of their maturities), without premium. Prepayments of installments of principal shall not affect the obligation of the Town to pay the remaining installments payable as provided above. All acts, conditions and things required by the Constitution and statutes of the Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of this bond have happened, exist and have been performed, and this bond, 4 together with all other indebtedness of the Town, is within every debt and other limit prescribed by the Constitution and statutes of the Commonwealth of Virginia. IN WITNESS WHEREOF, the Town has caused this bond to be signed by its Mayor, its seal to be affixed hereto and attested by the Town Clerk, and this bond to be dated ATTEST: [SPECIMEN] [DO NOT SIGN] (Seal) Town Clerk, Town of Pulaski, Virginia (SPECIlVIEN] [DO NOT SIGN] Mayor, Town of Pulaski, Virginia TRANSFER OF BOND C: The transfer of this bond may be registered by the registered owner or its duly authorized attorney upon presentation hereof to the Registraz who shall make note of such transfer in books kept by the Registrar for that purpose and in the registration blank below. Date of Name of Registered Signature of Registration Owner Re 'smear CERTIFICATE OF PRINCIPAL ADVANCES2 4 The amount and date of principal advances not to exceed the face amount hereof shall be entered hereon by an authorized officer of the United States of America, when the proceeds of each such principal advance aze delivered to the Town. Amount Date Authorized Signature • z Certificate of Principal Advances to be used if the Government requests provision for principal advances. 5 • 8. The Bond shall be fully registered as to .both principal and interest. Transfer of the Bond may be registered upon books maintained for that purpose at the office of the Registrar. Prior to due presentment for registration of transfer the Registraz shall treat the registered owner as the person exclusively entitled to payment of principal and interest and the exercise of all other rights and powers of the owner. 9. It is hereby covenanted and agreed with the holder of the Bond that so long as any of the installments of principal or interest on the Bond aze outstanding and unpaid the Town will: (a) Levy and collect annually an ad valorem tax on all the taxable property in the Town, without limitation as to rate or amount, sufficient to pay when due the principal of and interest on the Bond to the extent other funds of the Town aze not lawfully available and appropriated for such purpose; (b) Chazge rates or fees to users of the Water System and fix and maintain such rates or fees at such level as will produce sufficient revenue to pay (i) the cost of operation and administration and the cost of insurance against loss by injury by • persons or property (the "Operating Expenses") with respect to the Water System and (ii) the installments of principal and interest on the Bond authorized hereby and all other bonds heretofore or hereafter issued on account of the Water System and secured by a pledge of revenues of the Water System (the "Outstanding Bonds"), as the same respectively become due; (c) Apply the gross revenues derived from the ownership or operation of the Water System in each fiscal yeaz first to the payment of the Operating Expenses duting such yeaz, then to the payment of the installments of principal and interest on the Bond and all other bonds heretofore or hereafter issued on account of the Water System becoming due in sur~h yeaz and then to any other lawful purpose of the Town; and (d) segregate and keep segregated from all other Town funds all revenue derived from the operation of the Water System and keep proper records and accounts therefor, sepazate and apart from all other municipal records and accounts. 10. The Town hereby pledges (a) the gross revenues derived from the ownership or operation of the Water System less the Operating Expenses of the Water System in each fiscal yeaz (the "Net Revenues of the Water System") and (b) the gross revenues derived from the ownership or operation of the Sewer System less the Operating Expenses of the Sewer System in each fiscal yeaz (the "Net Revenues of the Sewer • System") to the payment of the installments, becoming due in each yeaz, of principal of 6 and interest on the Bond, on a parity with the similar pledges of (a) Net Revenues of the Water System to the payment of principal of and interest on the Town's $572,800 General • Obligation Water Bond, Series of 1995 and (b} the Net Revenues of the Sewer System to the payment of the principal of, and interest on, the Town's $574,600 General Obligation Sewer Bond, Series of 1995 and $698,200 General Obligation Sewer Bond, Series of 2001. 11. Additional Bonds. The Town may issue additional bonds secured on a parity with the Bond by a pledge of the Net Revenues of the Water System (the "Additional Bonds") to (a) finance the cost of completing the improvements (the "Project") financed by the Bond, (b) finance the cost of the acquisition or construction of unprovements, extensions, additions and replacements to the Water System or of any property, rights, or easements deemed by the Town to be necessary, useful or convenient for the Water System, (c) refund any of the Outstanding Bonds, or (d) effect some combination of (a), (b) or (c). Additional Bonds shall be in such form, shall be dated such date, shall mature in such installments of principal and interest, shall bear interest at such rate or rates, shall be in such denomination or denominations and may contain such provisions for prepayment prior to their respective maturities, all as provided by the Council by resolution adopted prior to their issuance. 12. Conditions to Issuance of Additional Bonds. The Town shall not issue any Additional Bonds unless there shall have been filed with the Town and, if the • Government is the owner of any of the Outstanding Bonds, with the Government, the following: (a) a certified copy of a resolution of the Council in form complying with the foregoing provisions specifying or providing for all the terms of the Additional Bonds and stating the estimated cost of the acquisition or construction of any unprovements, extensions, additions and replacements to the Water System or property, rights or easements to be acquired or constructed and finding and ordering that such improvements, extensions, additions and replacements shall be a part of the Water System or that such property, rights or easements are necessary, useful or convenient to the Water System; . (b) a certified copy of a resolution of the Council awarding the Additional Bonds, specifying or providing for the interest rate or rates and directing the delivery of such Additional Bonds to the purchaser named therein upon payment of the purchase price set forth or provided for therein; (c) if the Additional Bonds are to be issued to complete the Project, a certificate of the consulting engineer to that effect; (d) if the Additional Bonds are to be issued for any purpose other than completing the Project or the refunding of Outstanding Bonds, a certificate of the consulting engineer that the improvements or property to which the proceeds form the issuance of the Additional Bonds are to be applied will be a part of the Water System or • will be necessary, useful or convenient for the Water System and that the funds available to the Town from the issuance of the Additional Bonds and other specified sources will be sufficient to pay the estimated cost of such unprovements or property; (e) a certificate of the Town, signed by its Mayor or Vice-Mayor, that the Town is in compliance with all covenants and undertakings in connection with this resolution and any resolution authorizing Additional Bonds which remain outstanding; (f) if any of the Outstanding Bonds aze held by the Government, the written consent of the Government to the issuance of the Additional Bonds; and (g) the written opinion or opinions of counsel for the Town stating that the Town is in good standing, that the issuance of the Additional Bonds has been duly authorized and that all conditions precedent to their delivery have been fulfilled. 13. (a) So long as the Bond is outstanding, the Town shall not permit connections to or use of the Water System or provide any services of the Water System without making a chazge therefor. (b) If any rates, fees or charges for the use of and for the services furnished by the Water System shall not be paid within 60 days after the same shall become due and payable, or within such shorter time as may be determined by the Town, the Town shall at the expiration of such period disconnect the premises from the Water System or otherwise suspend service to such premises until such delinquent rates, fees or charges and any interest, penalties or chazges for reconnection shall have been paid in full; provided, however, that such services shall not be suspended if the State Health Commissioner shall have found and shall certify to the Town that suspending such services will endanger the health of the persons occupying such premises or the health of others. (c) The Town shall take all such action as may be necessary to perfect liens upon real estalte for the amount of any unpaid rates, fees, or charges described in paragraph (b) above or any unpaid connection chazges or other charges so that such liens will be binding upon subsequent bona fide purchasers for valuable consideration without actual notice thereof. 14. The Mayor and the Town Clerk aze hereby authorized and directed to take all proper steps to have the Bond prepared and executed in accordance with its terms and to deliver the Bond to the Government upon (a) payment of the purchase price therefor or (b) if the Bond is delivered in the alternative form providing for principal advances to be made from tune to time by the Government, receipt by such officer of the Government's • agreement to make such advances. In the event the Bond is not issued and delivered g during the calendar year 2002, the Mayor and the Town Clerk are hereby authorized and • directed to change the series designation to such other designation as may be appropriate at the time of its issuance. 15. The Town shall refinance the unpaid principal balance of the Bond upon the request of the Government if at any time it shall appear to the Government that the Town is able to do so with funds obtained from responsible private sources at reasonable rates and terms for loans for similar purposes and periods of time. 16. The Town Clerk is hereby authorized and directed to see to the immediate filing of a certified copy of this resolution with the Circuit Court of Pulaski County, Virginia. 17. All resolutions, or parts thereof, in conflict herewith are hereby repealed except such resolutions as may have been adopted by the Town at the specific request of the Government as a condition to its purchase of the Bond. 18. This resolution shall take effect immediately. • C~ 9 The undersigned Clerk of the Council of the Town of Pulaski, Virginia, hereby certifies that the foregoing constitutes a true, complete and correct copy of a resolution adopted by the Council of the Town of Pulaski, at a meeting held on December 4, 2001. I hereby further certify that such meeting was a regular meeting, duly called and held, and that during the consideration of the foregoing resolution, a quorum was present. I hereby further certify that the minutes of such meeting reflect _.. the members of Council as absent or present and how each member of Council voted with respect to the adoption of the foregoing resolution, as follows: Member Charles W. Stewart, Jr., Mayor Bettye H. Steger • Daniel Talbert, Jr. Pauline G. Mitchell James M. Neblett Lane R. Penn E. G. Black, Jr. Kenneth M. Fleenor Jeffrey S. Worrell Absent or Present Vote Present N/A Present Aye Present Aye Present Aye Absent Absent Present Aye Present Aye Present Aye Present Aye WITNESS my hand and the seal of the Town of Pulaski, Virginia, this day of December, 2001. `~ ' ; ~• ;' ~ ~ . ~" • , _ Clerk, Town of Pulaski, Virginia (SEAL} ......~.~.........._.~_...._.._.~:r:,~.~: y_~-,~; __........_._... \\WETHERINGTON\VOLI\WP\DAY\012009AuU~orizingResolution.doc/snc • • IN~'TRUIiENT .REGORDED IN THE Pt~.ASKI JANUARY i7t R. „51.~tiD L BY: ~ ~rnrn~~ 'S OFFIGE OF Y 4N T, i i : i 4AM ILLS GLERK {~~ Ce~tifis:ate of l~~ttnawle+~~gmerti. Cac~nty of Pulaski Commo~meal.th o4 Ylrglrtia Tie far~rg in~trurn as acknowledged beto» mo this c}eY a' ~_ 20 Q1 by ~ ~ Q Notary Pabjic ~y caa~cntos~on expfroa: a~ A t KUt i,'UPY TESTS: R i~M100D LOOKABgl. Ctblttt