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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