2009-19ORDINANCE NO_ 2009-19
ORDINANCE AUTHORIZING A STANDBY LINE OF CREDIT
OF UP TO $5,000,000 IN ANTIC1PATlON OF THE COLLECTION
OF TAXES AND REVENUES FOR THE CUI2:RENT FISCAL YEAR
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY
OF FAIRFAX, VIRGINIA:
1 . The City Council the "Council"~ of the City of Fairfax, Virginia the "City"),
determines that it is necessary and expedient for the City to make arratigenients for a standby
line of credit facility of up to $5,000,000 under which the City niay borrow fiords in
anticipation of the collection of taxes and revenues for the current Fiscal Year fending June
30, 201 Off. Funds, if any, advanced under the standby line of credit facility shall only be used
to pay budgeted expenses for the current Fiscal Year prior to the collection of such taxes and
revenues.
2. The Council authorizes the City Treasurer to execute and deliver a standby line
of credit facility with SunTrust Bank the "Bank"~, in a form that the City Treasurer deems to
be in the best interests of the City; provided, however, that the standby line of credit facility
~a~ shall provide for the City to draw down, repay and re-borrow from time to time such
amounts not to exceed $5,000,000 at any given time, (b~ shall provide for interest to be repaid
on any amounts drawn at a variable rate equal to one-month LIBOR plus 291 basis points,
subject to a maximum rate of interest of 7% per year and (c~ shall provide for any amounts
drawn thereunder to be repaid in full within 12 months from the date of the standby line of
credit facility. Amounts, if any, drawn under the standby line of credit shall be evidenced by
a note, which shall be signed by the Mayor and the City's seal shall be affixed thereto and
attested by the manual signature of the City Clerk or Deputy City Clerk. The note shall be
paid from the taxes and revenues to be collected in the current Fiscal Year.
4. The City Clerk, in collaboration with the City Attorney, is authorized and
directed to see to the immediate filing of a certified copy of this ordinance in the Circuit Court
of Fairfax County, Virginia.
5. This ordinance shall take effect immediately.
Adopted this 1 4`~' day of July, 2009. ,l
Mayor
ATTEST:
ity Clerk
Votes
Councilwoman Cross Aye
Councilman Drummond Aye
Councilman Greenfield Aye
Councilman Meyer Aye
Councilman Rasmussen Aye
Councilman Stombres Aye