19760601 1976-16ORDINANCE NO. 1976- 16
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF THE
$6,000,000 GENERAL OBLIGATION BONDS OF THE CITY
OF FAIRFAX AUTHORIZED BY ORDINANCE NO. 1975-54,
ADOPTED BY THE CITY COUNCIL ON NOVEMBER 4, 1975
AND APPROVED BY A MAJORITY OF THE QUALIFIED VOTERS
OF THE CITY VOTING ON THE QUESTION OF ISSUING SAID
BONDS AT AN ELECTION HELD ON JANUARY 27, 1976 AND
ADDITIONALLY PLEDGING THE REVENUES OF THE CITY'S
WATER SYSTEM, SUBJECT TO PRIOR PLEDGES ON ACCOUNT
OF THREE OUTSTANDING SERIES OF WATER REVENUE BONDS
OF THE CITY, FOR THE PAYMENT OF THE PRINCIPAL OF AND
THE INTEREST ON SUCH GENERAL OBLIGATION BONDS.
WHEREAS, the City Council of the City of Fairfax on November 4,
1975 duly adopted Ordinance No. 1975-54 authorizing the issuance of
$6,000,000 General Obligation Bonds of the City for the purpose of pro-
viding funds to pay the cost of improving the water system of the City
by constructing an addition to the Water Treatment Plant including raw
water intake structure and pumping station and storage and pumping
facilities, constructing booster pumping stations, transmission and
water mains and storage facilities together with the acquisition of land
and equipment necessary or desirable in connection therewith and facili-
ties appurtenant thereto located within and partly within and partly
without the City; and
WHEREAS, at an election duly called and held on January 27,
1976, a majority of the qualified voters of the City of Fairfax, Virginia,
voting on the question approved contracting a debt, borrowing money and
issuing general obligation bonds of the City of Fairfax, Virginia, in
the aggregate principal amount of $6,000,000 for the purpose of providing
funds to pay the cost of improving the water system of the City by con-
structing an addition to the Water Treatment Plant including raw water
intake structure and pumping station and storage and pumping faciliites,
constructing booster pumping stations, transmission and water mains and
storage facilities together with the acquisition of land and equipment
necessary or desirable in connection therewith and facilities appur-
tenant thereto located within and partly within and partly without the
City, all pursuant to the provisions of Ordinance No. 1975-54, adopted
by the Council of the City of Fairfax; and
WHEREAS, the Circuit Court of Fairfax County, Virginia, has
duly entered its Final Order authorizing the City Council of the City
of Fairfax, Virginia, to proceed to carry out the wishes of the voters
as expressed at said election and to contract a debt, borrow money and
issue bonds of the City of Fairfax, Virginia, in the aggregate princi-
pal amount of $6,000,000 for the purpose of providing funds to pay the
cost of improving the water system of the City by constructing an ad-
dition to the Water Treatment Plant including raw water intake struc-
ture and pumping station and storage and pumping facilities, con-
structing booster pumping stations, transmission and water mains and
storage facilities together with the acquisition of land and equipment
necessary or desirable in connection therewith and facilities appur-
tenant thereto located within and partly within and partly without the
City, all pursuant to the provisions of Ordinance No. 1975-54, adopted
by the Council of the City of Fairfax; and
WHEREAS, the water system is an undertaking from which the
City will derive revenue and said bonds are to be issued under the pro-
visions of Article VII, Section 10(a) (2) of the Constitution of Vir-
ginia and are not to be included within the otherwise authorized in-
debtedness of the City; now, therefore,
1976-16
THE COUNCIL OF THE CITY OF FAIRFAX HEREBY ORDAINS:
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Section 1. For the purpose of providing funds, to pay the
cost of improving the water system of the City by constructing an
addition to the Water Treatment Plant including raw water intake struc-
ture and pumping station and storage and pumping facilities, construc-
ting booster pumping stations, transmission and water mains and storage
facilities together with the acquisition of land and equipment necessary
or desirable in connection therewith and facilities appurtenant thereto
located within and partly within and partly without the City, there
shall be issued the negotiable coupon bonds of the City of Fairfax,
Virginia, in the aggregate principal amount of $6,000,000. Said bonds
shall consist of 1,200 bonds of the denomination of $5,000 each, num-
bered 1 to 1,200, inclusive, shall be designated "General Obligation
Bonds (Junior Lien Revenue-General Obligation Bonds) Series 1976",
shall be dated as of the 1st day ~f Ju!y~1976~ shall be~stated to mature
(subject to right of prior redemption), in the amount of $480,000 on
July 1, 1996 and in the amount of $5,520,000 on July 1, 2006.
The bonds due July 1, 1996 are subject to mandatory sinking
fund redemption by lot beginning July 1, 1977 upon payment of the prin-
cipal amount and accrued interest to the date of redemption as follows:
Sinking Fund Sinking Fund
Year Redemption Year Redemption
1977 $15,000 1986 $25,000
1978 15,000 1987 25,000
1979 15,000 1988 25,000
1980 15,000 1989 30,000
1981 10,000 1990 30,000
1982 10,000 1991 30,000
1983 15,000 1992 35,000
1984 20,000 1993 35,000
1985 25,000 1994 35,000
1995 35,000
1996 35,000
The bonds due July 1, 2006 are subject to mandatory sinking
fund redemption by lot beginning July 1, 1997 upon payment of the
principal amount and accrued interest to the date of redemption as
follows:
Sinking Fund Sinking Fund
Year Redemption Year Redemption
1997 $120,000 2002 $610,000
1998 450,000 2003 660,000
1999 485,000 2004 710,000
2000 525,000 2005 770,000
2001 565,000 2006 625,000
The bonds shall bear interest until their payment at a rate or
rates not exceeding eight per centum (8%) per annum as shall hereafter
be determined by the City Council by resolution, such interest to the
respective maturities of the bonds being payable semi-annually on the
1st days of January and July in each year. Both the principal of and
the interest on said bonds shall be payable at The National Bank of
Fairfax , in the City of Fairfax, Virginia, or at The Chase Manhattan
~tional Association), in the Borough of Manhattan, City and State
of New York, at the option of the holder or registered owner, in any
coin or currency of the United States of America which on the respective
dates of payment thereof is legal tender for the payment of public and
private debts,
Said bonds may be made redeemable at such times and prices
and under such conditions as the City Council shall determine by resolu-
tion adopted prior to the sale of said bonds.
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1976-16
Section 2. Said bonds shall be executed with the facsimile
signature of the Mayor of the City and shall be signed by the City
Treasurer and the corporate seal of the City shall be impressed on said
bonds and attested by the City Clerk. The interest coupons to be at-
tached thereto shall be executed with the facsimile signature of said
Mayor. Said bonds and coupons and the provisions for registration to
be endorsed on the bonds shall be, respectively, substantially in the
following forms:
No. $5,000
United States of America
Commonwealth of Virginia
CITY OF FAIRFAX
General Obligation Bond
(Junior Lien Revenue-General Obligation Bond)
Series 1976
The City of Fairfax, Virginia, is justly indebted and for
value received hereby promises to pay to the bearer or, if this bond
be registered, to the registered owner hereof, on the 1st day of July,
19.~, upon the presentation and surrender hereof, the principal sum
of
FIVE THOUSAND DOLLARS
and to pay interest thereon from the date hereof at the rate of
per centum ( %) per annum until payment of
said-principal sum, such interest to the maturity hereof being payable
semi-annually on the 1st days of January and July in each year upon the
presentation and surrender of the coupons representing such interest as
the same respectively become due. Both the principal of and the in-
terest on this bond are payable at The National Bank of Fairfax , in
the City of Fairfax, Virginia, or at The Chase Manhattan Bank (National
Association), in the Borough of Manhattan, CiTy and State of New York,
at the option of the holder or registered owner, in any coin or currency
of the United States of America which on the respective dates of pay-
ment thereof is legal tender for the payment of public and private debts.
This bond and the bonds of the series of which it is one are
issued for the purpose of providing funds to pay the cost of improving
the water system of the City by constructing an additi0n to the Water
Treatment Plant including raw water intake structure and pumping station
and storage and pumping facilities, constructing booster pumping stations,
transmission and water mains and storage facilities together with the
acquisition of land and equipment necessary or desirable in connection
therewith and facilities appurtenant thereto located within and partly
within and partly without the City, and the full faith and credit of
said City are hereby irrevocably pledged for their payment.
This bond is one of a series issued under the authority of and
in full compliance with the Constitution and laws of Virginia, and pur-
suant to the vote of a majority of the qualified voters of the City
of Fairfax, Virginia, voting at an election duly called and held under
the provisions of the City Charter and the Code of Virginia, 1950, as
amended, and under an order of the Circuit Court of Fairfax County,
Virginia, authorizing the City Council of said City to carry out the
wishes of the voters as expressed at said election, and pursuant to
ordinances and a resolution duly adopted by the City Council.
This bond may be registered as to principal alone in accordance
with the provisions endorsed hereon.
It is hereby certified and recited that all acts, conditions
and things required by the Constitution and laws of Virginia,including
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1976-16
the Charter of the City of Fairfax, to happen, exist and be performed
precedent to and in the issuance of this bond have happened, exist and
have been performed in due time, form and manner as so required, that
the total indebtedness of the City of Fairfax, Virginia, including this
bond, does not exceed any constitutional or statutory limitation thereon,
and that provision has been made for the levy of ad valorem taxes on
all taxable property in said City without limitation as to rate or
amount to the full extent necessary to provide for the payment of the
principal of and the interest on this bond as the same shall become
due. In addition the City has covenanted to charge and collect such
rates and charges for services rendered by the City's water system so
that the revenues of said water system will be sufficient at all times
to provide for the payment of the operation and maintenance expenses
of said water system, to pay the interest on and the principal of three
outstanding series of Water Revenue Bonds of the City and to maintain
reserves therefor and to pay the principal of and the interest on this
bond as the same shall become due.
IN WITNESS WHEREOF, the City Council of the City of Fairfax,
Virginia, has caused this bond to be issued in the name of the City
of Fairfax, Virginia, and has caused this bond to be executed with
the facsimile signature of the Mayor of the City and to be signed by
the City Treasurer and the corporate seal of the City to be impressed
hereon and attested by the City Clerk,and the interest coupons attached
hereto to be executed with the facsimile signature of said Mayor, all
as of the 1st day of July, 1976.
Mayor of the City of Fairfax, Virginia
(Seal)
Attest:
~ity Treasurer of the City of Fairfax,
Virginia
~ity Clerk of the City of
Fairfax, Virginia
(Endorsement upon Bonds)
PROVISIONS FOR REGISTRATION
This bond may be registered as to principal alone on books
kept by the City Treasurer of the City of Fairfax, Virginia, as Bond
Registrar, or by such other Bond Registrar as may be legally appointed
by the City Council of the City of Fairfax, upon presentation hereof to
such Bond Registrar who shall make notation of such registration in the
registration blank below, and this bond may thereafter be transferred
only upon an assignment duly executed by the registered owner or his
attorney or legal representative in such form as shall be satisfactory
to the Bond Registrar, such transfer to be made on such books and
endorsed hereon by the Bond Registrar. Such transfer may be to bearer
and thereby transferability by delivery shall be restored, but this
bond shall again be subject to successive registrations and transfers
as before. The principal of this bond, if registered,., unless registered
to bearer, shall be payable only to or upon the order of the registered
owner or his legal representative. Notwithstanding the registration of
this bond as to principal alone, the coupons shall remain payable to
bearer and shall continue to be transferable by delivery.
.... 1976-16
Date of Registration
Name of
Registered Owner
Signature of
Bond Registrar
(Form of Coupons)
No.
On 1, 19 ,
the City of Fairfax, Virginia, will pay to bearer at The
National Bank of Fairfax , in the City of Fairfax, Virginia, or at
The ~'hase Manhattan Bank (National Association) , in the Borough of
Manhattan, City and State of New York, at the option of the bearer,
upon the presentation and surrender hereof, the sum of
Dollars in any coin or currency of the
United States of America which at the time of payment is legal tender
for the payment of public and private debts, as provided in and for
the semi-annual interest then due upon its General Obligation Bond
(Junior Lien Revenue-General Obligation Bond) Series 1976, dated
July 1, 1976, No. .
Mayor of the City of Fairfax, Virginia
Seqtion 3. Said bonds shall be subject to registration as to
principal alone in accordance with the provisions for registration set
forth in the bonds, and the City Treasurer of the City of Fairfax, Virginia,
is hereby appointed and designated Bond Registrar for the purpose of
registering said bonds. No charge shall be made to any bondholder for
the privilege of registration and transfer herein granted.
Section 4. For the prompt payment of the principal of and the
interest on the bonds authorized by Ordinance No. 1975-54, adopted on
November 4 , 1975, and provided to be issued hereby as the same shall
~ecome due, the full faith and credit of the City of Fairfax, Virginia,
are hereby irrevocably pledged, and the City shall be unconditionally
and irrevocably obligated to levy ad valorem taxes on all taxable property
in said City without limitation as to rate or amount to the full extent
necessary to provide for the payment of the principal of and the interest
on said bonds as such principal and interest shall become due.
Section 5. The City hereby covenants to charge and collect
such rates and charges for services rendered by the City's water system
so that the revenues of said water system will be sufficient at all
times to provide for the payment of the operation and maintenance ex-
penses of said water system, to pay the interest on and the principal of
the outstanding Water Revenue Bonds, dated June 1, 1956, Water Revenue
Bonds, Series 1965, dated June 1, 1965 and Water Revenue Bonds, Series
1970, dated December 1, 1970 (the "Outstanding Bonds") and to maintain
reserves therefor as required by the ordinances authorizing the issuance
of said three series of Water Revenue Bonds and to pay the principal of
and the interest on the bonds provided to be issued herein.
Section 6. The City further covenants that when all specified
and required monthly transfers and payments into the special funds
established by the ordinances authorizing the Outstanding Bonds have
been made and there is a balance in the Revenue Fund for the Outstanding
Bonds in excess of the estimated amounts required to be transferred and
paid into said special funds in the succeeding month such excess shall
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1976-16
be transferred to the Water Bond Fund hereby created for application
solely to the payment of the principal of and the interest on the bonds
provided to be issued herein; provided, however, that if on any June 1
or December 1 the amount on deposit in the special funds established
by the ordinances authorizing the Outstanding Bonds are insufficient to
pay the principal or interest then due on the Outstanding Bonds the
City will transfer from the Water Bond Fund to said special funds such
amount as may be required to make up such insufficiency. The City re-
serves the right to issue additional water revenue bonds on a parity with
the Outstanding Bonds under the terms and conditions set forth in the
ordinances authorizing the issuance of the Outstanding Bonds.
Section 7. Following the second reading and final adoption
of this ordinance, the City Clerk is hereby authorized and directed to
file a certified copy of this ordinance with the Circuit Court of
Fairfax County, Virginia.
Section 8. The City Clerk shall cause this ordinance to be
published in The Fairfax Globe , a newspaper of general circulation in
the City of Fairfax, promptly following its introduction, together with
a notice containing the date, time and place for a public hearing which
shall be not less than three days after such introduction. The Clerk
of the City Council shall note the date of introduction and first read-
ing, the date of publication, the date of public hearing, and the date
of the second reading and final adoption in the minutes of the meeting.
Introduced: May 25, 1976
Adopted: June 1, 1976
Attest:
C i tYrOl eYk.
I approve the foregoing bond ordinance.
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