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HomeMy WebLinkAbout08-29-78s~~s Minutes of the Special Meeting of the: Pulaski Town Council held August 29, 1978 at 5:00 P. M. in the Council Chambers in the Municipal Building. There were present: Mayor Raymond F. Ratcliff, presiding. Councilmen: Andrew L. Graham, Jr., Arthur L. Meadows, James M. Neblett, Jr., William A. House, Blair B. Brookmeyer, Robert M. Wallace John A. Johnston, C. E. Boyd, Jr. Also present: Town Manager: J. E. Marshall Clerk: Gladys R. Dalton Town Attorney: Alan Groseclose Visitors: Jane Graham, WPW Radio Station David Vaczek, The Southwest Times Foy Aust, Joe Shumate, Jr., H. W. Huff, Jr. Bill Norris, Engr. for Coleman Furn. Co. The invocation was given by Councilman Neblett. 1 WAIVER OF SPECIAL MEETING WAIVER OF NOTICE OF SPECIAL MEETING elected We, the undersigned, duly members of the Council of the Town of Pulaski, Virginia, hereby waive notice of a Special Meeting of said Council, at 5:00 P. M. on the 29th day of August, 1978, for the purpose of determining the necessity of securing a loan to meet certain obligations which are due September 1st, and any other business that may legally come bef ore the Council. WITNESS our signatures this 29th day of August, 1978. 6290 August 29, 1978 Mayor Ratcliff advised that the Special Meeting had been called for the purpose of determining the necessity of securing a loan to improve the cash flow situation; this being one of the lean periods for the Town's cash flow. As Chairman of the Finance Committee, Councilman House reported that the Town has a $100,000.00 Bond coming due September 1st, and it was the recommendation of the Committee that a loan be made in that amount at this time, to be paid back by January 26, FINANCE COMM. REPORTS ON 1979, and perhaps a portion of the loan could be paid back bef ore NECESSITY OF BORROWING FUNDghat time. It was felt that by January 26th the cash flow problem should be somewhat improved, and it was hoped thtis would be the last time such a loan would have to be secured. Councilman Boyd asked why it was necessary to borrow for this bond payment, and Councilman House advised that Council had put off raising taxes, etc. too long, and this should have been done three or four years ago, to meet expenses. Town Attorney Groseclose submitted a Certificate of Roger A. Williams, Treasurer for the Town of Pulaski, concerning the evaluation of property, as submitted to the Town of Pulaski by the Commissioner of Revenue cuf the County of Pulaski, Virginia, as REPORT OF follows: TOWN TREAS. TO THE COUNCIL OF THE TOWN OF PULASKI, VIRGINIA: EVALUATION I, Roger A. Williams, the undersigned, Treasurer of the Town of Pulaski, Virginia, do certify to the Council as-follows: OF PROPERTY The assessed valuation of the Real Estate in the Town of TAXES Pulaski, subject to taxation as shown by the last preceding assess- ments for taxes is $10,779,320.00. The assessment on Public Utility Property in the Town is $1,313,713.00. The assessment on Personal Property is $2,458,435.00. The assessment on personal property classified as Machinery and Tools is $1,494,270.00. The total of all assessed property is $16,045,738.00. That the outstanding bonds or interest bearing obliga- tions for any purpose whatsoever of the Town of Pulaski, Virginia, on August 29, 1978, were as follows: Street Bonds (9-1-74) Gen. Oblig. $ 430,000.00 Sewer Bonds (7-1-58) Revenue 432,000.00 Water Bonds (7-1-58) Revenue 257,000.00 $1,119,000.00 The aforesaid information concerning evaluation of prop- erty is that which was submitted to the Town of Pulaski, Virginia, by Grid C,ommissione r of Revenue of the County of Pulaski, Virginia. 1 /s/ ROGER A. WILLIAMS, Treasurer August 29, 1978 291 Mr. Groseclose also presented to Council the opinion of Garnett S..Moore, Town Attorney, concerning the validity of the ordinance authorizing and approving the borrowing of $100,000.00; and being a valid exercise of the Town's authority for making loans under the provisions of its Charter and the general laws of the State of Virginia. Said opinion follows in detail; Re: Loan authorized by Ordinance dated August 29, 1978 from Virginia National Bank, Pulaski, Virginia, and Bank of Virginia, Southwest T0: THE TOWN OF PULASKI, VIRGINIA This is to certify that in the opinion of the undersigned, the ordinance adopted by the Council of the Town of Pulaski, TOWN ATTYS. Virginia, on the 29th day of August, 1978, authorizing and approving the borrowing of One Hundred Thousand Dollars($100,000.00): $50,000.00 CERTIFICATE thereof from the Virginia National Bank, Pulaski, Virginia, and $50,000. thereof from Bank of Virginia, Southwest, to be paid within one hundred forty-nine (149) days from the date of the notes evidencing said indebtedness, to pay current, general obligation and capital indebtedness of the Town, said loan being made in anticipation of the receipts from taxes and other general revenue sources of the Town, is a valid ordinance and a valid exercise of the Town's authority for making loans under the provisions of its Charter and the general laws of the State of Virginia, and particularly under Section 15.1-222 and other applicable sections of Chapter 5 of Title 15.1 of the Code of Virginia of 1950, as amended; That the borrowing of said One Hundred Thousand Dollars ($100,000.00) will not exceed eighteen (18%) per cent of the valu- ation of the real estate in the Town of Pulaski, Virginia, subject to taxation, as shown by a certificate of the Treasurer of said Town, setting out the assessments for taxes as provided to him by the Commissioner of Revenue of the County of Pulaski, Virginia; and that the existing general obligation indebtedness of the Town of Pu;aski, including the $100,000.00 to be borrowed under the ordinance adopted on August 29,.1978., will therefore not exceed the limitations of Article VII, Section 10 of the Constitution of Virginia or any statutes of the Commonwealth of Virginia. Submitted the 29th day of August, 1978. / s / GARNETT S . FORE Town Attorney The following Ordinance was read by Attorney Groseclose, and Councilman House moved its adoption. Motion was seconded by Council- man Neblett, and carried on the following vote: Andrew L. Graham, Jr. -Aye William A. House - Aye Blair B. Brockmeyer - Aye C. E. Boyd, Jr. - Aye Robert M. Wallace - Aye Arthur L. Meadows - Aye John A. Johnston - Aye James M.Neblett, Jr.-Aye (Ordinance follows on next page) '"292 August 29, 1978 AN ORDINANCE AUTHORIZING THE ISSUANCE OF NEGOTIABLE NOTES OF THE TOWN OF PULASKI, VIRGINIA, IN THE TOTAL AMJUNT OF $100,000. FOR GENERAL OPERATION FUNDS AND PAYMENT OF CERTAIN CURRENT AND GENERAL INDEBTEDNESS WHEREAS, the Town of Pulaski, Virginia, needs additional funds for its daily operation and for payment on indebtedness upon which it is obligated, and for payment of certain sums for capital improvements; and, WHEREAS. it is necessary that the 'Town of Pulaski, Virginia, borrow the total sum of $100,000.00 in order to provide funds for the above items, operating expenses and General Gund obligations;-and WHEREAS, the Virginia National Bank, Pulaski,_.Virginia, ADOPTION OF and Bank of Virginia, Southwest, offered to loan the Town of Pulaski, Virginia, the sum of $100,000.00 at an interest rate ORDINANCE RE: of five per cent (5%) per annum; and BORROWING OF WHEREAS. the Treasurer of the Town of Pulaski has filed with Council a certificate showing the total assessed value of all property in the Town of Pulaski on August 29, 1978, to be $100,000.00 $16,045,738.00; that the assessed valuation of the Real Estate in the Town of Pulaski, Virginia, subject to taxation is $10,779m320.00; that the assessed valuation of personal property is $2,458,435.00; that the assessment on•personal property classified as machinery is $1,494,270.00; that the assessment on .public utility properties within the Town of Pulaski is $1,313,713.00; and that the outstand- ing bonds or other interest-bearing obligations for any purpose of the Town of Pulaski, Virginia, on August 29, 1978, were as follows: Street Bonds (Gen. Oblig.) (9-1-74) $ 430,000.00 Sewer Bonds (Revenue) (7-1-58) 432,000.00 Water Bonds (Revenue) (71-158) 257,000.00 $1,119,000.00 The sewer and water bonds portion of the indebtedness are self- liquidating; a copy of said certificate of the Treasurer being incorporated herein and made a part of this ordinance; and WHEREAS, the issuance of two negotiable :notes, each in the sum of $SO,OOO.p0 for a total of $100,000.00, together with all other existing indebtedness for any purpose, will not exceed eithteen per cent (18%) of the assessed valuation of the real estate in the Town of Pulaski subject to taxation as shown by the last preceding assessment for taxes, and the general obligation indebtedness of the Town of Pulaski will theref ore not exceed the limitation provided in Article VII, Section 10 of the Constitution of Virginia, or the statutes of the Commonwealth of Virginia, and the Charter of the Town of Pulaski, Virginia; NOW, THEREFORE, BE IT ORDAINED by the Council of the Town of Pulaski, Virginia, that (1) That the Town of Pulaski, Virginia, duly issue two negotiable, promissory notes, each in the amount of $50,000.00, dated August 30, 1978, one payable to the order of ,Virginia National Bank, and one payable to Bank of Virginia, Southwest, bearing interest at the rate of five (5%) per cent per annum, with interest and the principal of said notes payable on or before January 26, 1979, with right of anticipation reserved on said notes; said notes are issued under authority and in full compli- ance with the Constitution and the statutes of -the Commonwealth of Virginia and the Charter. .of the Town of Pulaski, Virginia. 1 August 29, 1978 693 (2) On the Town's behalf, the notes shall be signed by the Mayor and Treasurer of said Town and attested by the Clerk, with the corporate seal of the Town of Pulaski, Virginia, affixed thereto. (3) The full faith, credit and resources of the said Town of Pulaski, Virginia, and of this Council as such be, and the same are hereby irrevocably pledged for the punctual payment of the interest and principal of said notes as maturity. C O P Y NOTE Pulaski, Virginia August 30, 1973 ~i50,000r00 One Hundred Forty-nine days (lug) after date, the Tovlm of Pulaski, Virginia, a duly created political subdivision of the Commonwealth of Virginia, (the Issuer), for value received, ha're~ by promises to pay to: Virginia National Bank, Pulaski, Virginia, or order, without offset, the principal sum of Fifty Thousand Dollars 050,000.00), with interest at the rate of five (5~) per cent per annum from the-date of issue to the maturity date. Roth principal and interest are payable in lawful money of the United States of America at th1! office of Virginia National Bank, Pulaski, Virginia. This note is authorized by ordinance duly enacted by the Town of Pulaski, Virginia, on August 30, 1978, in anticipation of the collection of taxes and general revenues of the Issuer. The full faith and credit of the Issuer are irrevocably pledged to the payment of principal and interest on this note in accordance with its terms. Right of anticipation is reserved by maker. Every requirement of law relating to the issuance of this note has bean duly complied with and the indebtedness ~rv!- deneed hereby is within every debt and other limit prescribed by the Constitution, the statutes of the Commonwealth of Virginia, and the Charter of the Town of Pulaski, Virginia, THE lTQ1~TN OF PULASRI VIRQINIA By By Attest: `~ ~ 1 y r, , 1 ~ ~a ys a o , erk (Seal.) asurer 6294. August 29, ~9~$ C 0 P Y NOTE Pulaski, Virs~inia A August 30, 1978 X50,000.00 One Hundred Forty-nine days (149) after date, the Town of Pulaski, Virginia, a duly created political subdivision of thei Commonwealth oP Virginia, (the Issuer), for value received, here- by promises to pay to; Bank of Virginia, Southwest, Pulaski, Virginia, or order. without offset, the principal sum of Fifty Thousand Dollars (50,000.00), with interest at the rate of five (596) per cent per annum from the date of issue to the maturity date. Both principal and interest are payable in lawful money of the United States of America at the office of Bank of Virginia, Southwest, Pulaski, Virginia. This note is authorized by ordinance duly enacted by the Town of Pulaski, Virginia, on August 30, 1978, in anticipation of the collection of taxes and p;eneral revenues of the Issuer. The full faith and credit of the Issuer are irrevocably pledged to the payment of principal and interest on this note in accordance with its terms. Right of anticipation is reserved by maker. Every recruirement of law relating to the issuance of this note has been duly complied with and the indebtedne$s evi- denced hereby is within every debt and other limit prescribed by the Constitution, the statutes of the Commonwealth of Virginia, and the Charter of the Town of Pulaski, Virginia. THE TO OP PU/L'A~S,~K'I, IRGIPtI~A Attest; ~'~~ ~, ~~~~. Dalto~n~ ~ ~erk " (Seal) By (~~. reasurer August 29, 1978 ~~J~ Councilman House moved that there be placed on the agenda PUBLIC HEARING f or immediate discussion the matter of a public hearing on a Community ON CDB GRANT Development Block Grant. Motion was seconded by Councilman Brockmeyer, and carried. Town Manager Marshall explained the Town had been informed of the approval of its preapplication for $50,000.00 for the expansion of the Town's sanitary sewer system, and that an applic ation must be submitted to HUD by September 15th. He further stated it was necessary that the Town Council hold a public hearing on this matter September 5th PUBLIC and the Town Planning Commission hold its public hearing on the matter HEARING SCHEDULED September 11th. F OR CBD GRANT Councilman House moved that a public hearing be scheduled for 4:00 P. M. on September 5th by Council on the CBD Grant. Motion was seconded by Councilman Neblett, and carried on the following vote: Andrew L. Graham, Jr. Blair B. Brockmeyer Robert M. Wallace John A. Johnston Mayor Ratcliff advised meeting. He further stated them - Aye William A. House - Aye - Aye C. E. Boyd, Jr. - Aye - Aye Arthur L. Meadows - Aye - Aye James M. Neblett, Jr. - Aye this concluded the purpose of the a were persons present who were interest- WILEY & ed in the update report of Wiley & Wilson concerning the fllod-prone area in WILSON FLOOD Pulaski. Councilman House moved that Council adjourn and this matter be PLAIN REPORT TO discussed later. Motion was seconded by Councilman Meadows, and carried. BE DISCUSSED LATER - Councilman Boyd stated there were some unhappy citizens because of the change in the rates on dumpsters, and asked that this matter be DUMPSTER USERS NOT placed on the agenda for the next meeting of Council. PLEASED WITH RATE INCREASE Council adjourned at 5:20 P. M. APPROVED: ~-_ ,- Mayor Ratcliff ATTEST: ~ ~ ~~, ~ / ~. %.'.~ 1 ~ ,~~ / Clerk o Council