HomeMy Public PortalAbout1991_09_24_R217The Town of
Leesburg,
[/irginia
RESOLUTION NO. 91-217
PRESENTED:
ADOPTED:
September 24, 1991
September 24, 1991
A RESOLUTION:
AUTHORrZING THE ~SUANCE AND SAI,F, OF THE TOWN OF LEFP~IURG, VIRGINIA
TAX ANTICIPATION NOTES, SERIES 1991 IN THE MAXIMUM AMOUNT OF
$1,300,000 AND SETTING FORTH THE FORM AND DETAILS THEREOF
WHEREAS, Section 15.1-227.30 of the 1950 Code of Virgini~ as amended, authorizes the Town Council
of the Town of Leesburg, Virginia ("Town") to borrow money in anticipation of the collection of taxes and
revenues for the current year; and
WHEREAS, the Town Council has determined that it is necessary and expedient to borrow not to
exceed $1,300,000 on behalf of the town and to issue its notes, therefore (~Notes") in anticipation of the
collection of taxes and revenues of the town for the fmcal year ending June 30, 1992.
THEREFORE, RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF LEESBURG IN
VIRGINIA AS FOLLOWS:
1. Authorization of Notes. The Town Council hereby determines that it is advisable to issue
and sell the notes in the maximum amount of $1,300,000. The issuance and sale of the notes are hereby
authorized.
2. Form and Detzil~ of Notes. The notes shall be issued in fully registered form, without
coupons, in substantially the form attached hereto as Exhibit A. The notes shall be issued upon such
terms and conditions as may be established by the town manager pursuant to Paragraph 4 of this
Resolution provided that (i) the interest rate on the notes shall not exceed 8 percent per annum and (ii)
the maturity of the notes shall not exceed one year from their date.
3. Execution of Notes. The mayor is hereby authorized and directed to execute the notes, and
the Clerk of Council is hereby authorized to affix or imprint the seal of the town on the notes and to
attest the same. The form of execution, imprinting of the seal and attestation may be by facsimile;
provided, however, if the signatures of the Mayor and Clerk of council are both by facsimile, the notes
shall not be valid until authenticated by the manual signature of the Registrar.
AUTHORIZING ANTICIPATION NOTES IN THE AMOUNT OF $1,300,000 2
4. Sale of Notes. The town manager and such officers and agents of the town as he may
designate are authorized and directed to prepare and distribute an appropriate request for proposals to
purchase the notes. The request for proposals shall be distributed in such manner and at such times as
the town manager shall determine. The town manager is authorized and directed to accept the proposal
for the notes which in his judgment provides for the lowest interest cost to the town upon the terms and
conditions he deems to be most advantageous to the town.
5. Pledge of Taxes. The Town Council hereby pledges to the payment of principal and interest
on the notes the taxes and other revenues available to the town for the fiscal year ending June 30, 1992.
6. Non-arbitrage Certificate and Tax Covenants. The Town Council agrees that the proceeds
from the issuance and sale of the notes will be invested and expended as set forth in the Non-arbitrage
Certificate and Tax Covenants of the town to be delivered at the time of the iss,~ance and delivery of the
notes and that the town win comply with such covenants as may be necessary in order to comply with
the provisions of the Internal Revenue Code of 1986, as amended (~Code~) including the provisions of
Section 148 of the Code and applicable regulations relating to "arbitrage bonds" and with the other
covenants and representations contained therein. The town manager and the mayor, or either of them,
and such officers of the town as either of them may designate are authorized and directed to execute a
Non-arbitrage Certificate and Tax Covenants setting forth the expected use and investment of the proceeds
of the notes. The Town Council designates the notes as ~q,,alified tax-exempt obligations~ eligible for the
exception from the disallowance of the deduction of interest by fmancial institutions allocable to the cost
of carrying tax-exempt obligations in accordance with the provisions of Section 265(b)(3) of the Code.
The Town Council does not reasonably anticipate issuing more than $10,000,000 in q,,alified tax-exempt
obligations during calendar year 1991 and the Town Council will not designate more than $10,000,000 of
q,,al~ied tax-exempt obligations pursuant to such Section 265Co)(3).
7. Further Actions. The town manager and such officers and agents of the town as he may
designate are authorized and directed to take such further action as may be necessary or convenient in
connection with the issuance, sale and delivery of the notes and all actions previously taken by such
officers and agents in connection therewith are ratified and confnuned.
AUTHORIZING ANTICIPATION NOTES IN THE AMOUNT OF $1,300,000 3
8. F'ding of Resolution. The appropriate officers and agents of the town are authorized and
directed to immediately cause a certified copy of this Resolution, setting forth the form and details of the
notes, to be £ded with the Circuit Court of the County pursuant to Section 15.1-227.9 of the 1950 Code
of Virgin~ as amended.
9. Effective Date. This Resolution shall take effect immediately.
PASSED this 24TH day of September, 1991.
ATTEST:
of
Robert E; Sevila, Mayor
Town of Leesburg
t~Antic-notes