HomeMy Public PortalAbout1979_03_28_R044RESOLUTION NO.
79-44
TOWN OF LEESBURG
IN
LOUDOUN COUNTY, VIRGINIA
PRESENTED March 28, 1979
ADOPTED March 28, 1979
RESOLUTION AUTHORIZING THE ISSUANCE ~;D SALE
OF $5,000,000 WATER BONDS, SERIES OF 1979.
OF THE TOWN OF LEESBURG, VIRGINIA, HERETOFORE
AUTHORIZED, AI;D PROVIDING FOR THE FORM, DETAILS
AND PAYMENT THEREOF
WHEREAS, the issuance of general obligation bonds of
the Town of Leesburg, Virginia, in the maximum amount of
$5,000,000 was authorized by an ordinance adopted' by the
Council of the Town of Leesburg on May 24, 1978, to provide
funds, together with other funds that may be available, to
improve and enlarge the Town's water system, including con-
struction of a water intake structdre, a filtration and treat-
ment plant, storage facility, pumping station and transn~ission
mains; and
WHEREAS, none of' such bonds have been issued and sold;
BE IT RESOLVED BY THE COUNCIL OF THE TOWN OF LEESBURG,
VIRGINIA:
1. There are hereby authorized to be issued and sold
$5,000,000 general obligation water bonds of the Town of Lees-
burg, Virginia.
2. The bonds shall be coupon bonds without privilege
of registration, shall be designated "Water Bonds, Series of
1979," shall be dated May 1, 1979, shall be of the denomination
of $5,000 each, shall be numbered from 1 to 1,000, inclusive,
and shall mature in installments on May 1 in years and amounts
as follows:
Year Amount Year Amount
1980 $ 50,000 1993 $250,000
1981 50,000 1994 250,000
1982 100,000 199~ 250,000
1983 100,000 1996 250,000
1984 100,000 1997 250,000
1985 100,000 1998 250,000
1986 100,000 1999 300,000
1987 100,000 2000 300,000
1988 100,000 2001 300,000
1989 200,000 2002 300,000
1990 200,000 2003 300,000
1991 250,000 2004 300,000
1992 250,000
The bonds shall bear interest at such rate or rates as determined
at the time of sale, payable semiannually on May 1 and November 1.
Both principal and interest shall be payable in lawful money of
the United States of America at the principal office of First &
Merchants National Bank, Richmond, Virginia, or Chase Manhattan
Bank, N.A., New York, New York, at the option of bearer.
3. Bonds maturing on or before May 1, 1989, are not sub-
ject to redemption prior to maturity. Bonds maturing on or after
May 1, 1990, are subject to redemption prior to maturity at the
option of the Town on or after May 1, 1989, in whole at any time
or in part on any interest payment date, upon payment of the
principal amount of the bonds to be redeemed plus interest accrued
and unpaid to the redemption date and a redemption premium of
one-quarter of one percent (1/4 of 1%) of such principal amount
o
for each six month period, or part thereof, between the re-
demption date and the stated maturity date of the bonds to be
redeemed, provided that the redemption premium shall not exceed
3% of such principal amount. If less than all of the bonds are
called for redemption, the bonds to be redeemed shall be
selected by the Director of Finance in such manner as he may
determine to be in the best interest of the Town. The Town
Council shall cause notice of the call for redemption identify-
ing the bonds to be redeemed to be published twice in both a
financial journal published in the City of New York, New York,
and in a newspaper of general circulation published in the City
of Richmond, Virginia, the first publications of which shall
appear not less than 30 nor more than 60 days prior to the re-
demption date.
4. The bonds shall be signed by the facsimile signature
of the Mayor of the Town of Leesburg, shall be countersigned
by its Clerk and a facsimile of its seal shall be printed on
the bonds. The coupons attached to the bonds shall be authenti-
cated by the facsimile signatures of the Mayor and the Clerk.
5. The bonds and coupons shall be in substantially the
following form:
(FORM OF BOND)
No. $5,000
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
TOWN OF LEESBURG
Water Bond, Series of 1979
The Town of Leesburg, Virginia, for value received, hereby
acknowledges itself indebted and promises to pay to bearer upon
presentation and surrender hereof the principal sum of
FIVE THOUSAND DOLLARS ($5,000)
on May 1, 19__., and to pay interest thereon from the date
hereof until payment at the rate of percent ( %) per
year, payable semiannually on May 1 and November 1 upon pre-
sentation and surrender of the attached coupons as they become
due. Both principal of and interest on this bond are payable
in lawful money of the United States of America at the principal
office of First & Merchants National Bank, Richmond, Virginia,
or Chase Manhattan Bank, N.A., New York, New York, at the
option of bearer.
This bond is one of an issue of $5,000,000 water bonds
of like date and tenor, except as to number, rate of interest,
privilege of redemption and maturity, authorized by ordinance
duly adopted by the Council of the Town of Leesburg on May 24,
1978, and is issued pursuant to the Constitution and statutes
of the Commonwealth of Virginia, including the Town Charter
(Chapter 433, Acts of Assembly of 1962, as amended) and the
Public Finance Act, as amended, to provide funds, together with
other available funds, to finance improvements and enlargements
to the Town's water system.
Bonds maturing on or before May 1, 1989, are not subject
to redemption prior to maturity. Bonds maturing on or after
May 1, 1990, are subject to redemption prior to maturity at
the option of the Town on or after May 1, 1989, in whole,at
any time or in part on any interest payment date, upon payment
of the principal amount of the bonds to be redeemed plus in-
terest accrued and unpaid to the redemption date and a redemption
premium of one-quarter of one percent (1/4 of 1%) of such
principal amount for each six month period, or part thereof,
between the redemption date and the stated maturity date of
the bonds to be redeemed, provided that the redemption premium
shall not exceed 3% of such principal amount. If less than all
of the bonds are called for redemption, the bonds to be redeemed
shall be selected by the Director of Finance in such manner as
he may'determine to b~ in tha be.~ i~%terest ef the Town. The
Town Council shall cause notice of the call for redemption
identifying the bonds to be redeemed to be published twice in
both a financial journal published in the City of New York,
New York, and in a newspaper of general, circulatiOn published
in the City of Richmond, Virginia, the first publications'of
which shall appear not less than 30 nor. more than 60 days prior
to the redemption date.
The full faith and credit of the Town of Leesburg are
hereby irrevocably pledged for the payment of principal of and
interest on this bond.
AI~ acts, conditions and things required by the Consti-
tution 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
the issue of bonds of which this bon~ is one, together with
all other indebtedness of the Town of Leesburg, is within
every debt and other limit prescribed by the Constitution and
statutes of the Commonwealth of Virginia.
'IN WITNESS WHEREOF, the Town of Leesburg, Virginia, has
caused this bond to be signed by the facsimile signature of
its Mayor, to be countersigned by its Clerk, a facsimile of
its seal to be printed hereon, the attached coupons to be
authenticated by the facsim{le signatures of its Mayor and
Clerk, and this bond to be dated May 1, 1979.
COUNTERSIGNED:
~lerk, Town of Leesburg,
Virginia
(SEAL)
Mayor, Town of Lee'sburg,
Virginia
(FORM OF COUPON). 6.
No. $
May
On November 1, 19 , unless the bond to which this coupon
is attached has been duly called for prior redemption and pro-
vision made for payment thereof, the Town of Leesburg, Virginia,
will pay to bearer the sum of Dollars
($ ) in lawful money of the United States of America at
the principal office of First & Merchants National Bank, Richmond,
Virginia, or Chase Manhattan Bank, N.A., New York, New York, at
the option of bearer, being the semiannual interest then due on
its Water Bond, Series of 1979, dated May 1, 1979, and numbered
Clerk, Town of Leesburg,
Virginia
(.'SEAL)'
Mayor, Town of Leesburg,
Virginia
6. The full faith and credit of the Town of Leesburg
are hereby irrevocably pledged for the payment of principal of
and interest on the bonds. There shall be levied and collected
annually on all locally taxable property in the Town an ad valorem
tax over and above all other taxes authorized or limited by law
sufficient to pay such principal and interest as the same respec-
tively become due and payable.
7. The bonds shall be combined with $150,000 Public
Parking Facility Bonds, Series of 1979, authorized by an ordinance
adopted by the Town Council on September 27, 1978, and offered
for sale as if the two issues constituted a single issue of
$5,150,000 bonds. The Town /~anager,' in collaboration with
Municipal Advisors Incorporated, the Town's financial advisor,
is hereby authorized and directed to take all proper steps to
advertise the bonds for sale substantially in accordance with
Manager may make such cha¥:ges~'~.'a uhe ~o~ice of Sale not in-
consistent with the provisions of this resolution as he may
consider in the best interest of the Town.
8. The printer's proof of a Prospectus describing the
bonds, copies of which have been provided each member of the
Town Council, is hereby approved as the Prospectus of the Town.
The Town Manager may make such changes in the proof of the
Prospectus not inconsistent With this resolution as he may
consider in the best interest of the Town. The Prospectus
shall then be printed and copies provided to prospective
bidders for the bonds. Following receipt of bids and the
award of the bonds, the Town Manager shall arrange for the
delivery to the purchasers of the bonds of up to 300 copies
of the Prospectus to be delivered to the persons to whom
Such purchasers and members of their bidding group initially
sell the bonds.
9. After bids have been received and the bonds awarded
the Town Manager, the Mayor and the Clerk are hereby authorized
and direc'ted, to take all proper steps to have the bonds prepared
and executed in accordance with their terms and to deliver the
bonds to the purchasers thereof upon payment therefor.
10. Such officers of the Town of Leesburg as may be
requested are hereby authorized to execute an appropriate
certificate setting forth the expected use and investment of
the proceeds of the bonds issued pursuant hereto in order to
show that such expected use and investment will not violate
the provisi.ons of §103(c) of the Internal Revenue Code of 1954,
as amended, and regulations issued pursuant thereto, applicable
to "arbitrage bonds". Such certificate shall be in such form
as may be requested by bond counsel for the Town.
11. The Clerk is hereby authorized and directed to see
to the immediate filing of a certified copy of this resolution
With the Circuit Court of Loudoun County and within ten days
thereafter to cause to be published once in a newspaper of
general circulation in the Town of Leesburg a notice setting
forth (1) in brief and general terms the purpose for which'
the bonds are to be issued and (2) the amount of such bonds.
12. The Town Council agrees not to sell any general
obligation bonds of the Town during the next 90 days following
the sale of the bonds without the consent of the managing
underwriter of the bonds.
13. All'resolutions or parts of resolutions in conflict
herewith are hereby repealed.
14. This resolution shall take effect immediately.
PASSED this 28th day of March , 1979.
Kenheth B. Rollins, Mayor
Town of Leesburg
ATTE S T:
Clerk of Cou~il