19760601 r-76-14RESOLUTION NO. R-76-14
A RESOLUTION FIXING THE REDEMPTION
PROVISIONS AND PROVIDING FOR TH~ SALE
OF $6,000,000 GENERAL OBLIGATION BONDS
OF THE CITY OF FAIRFAX, VIRGINIA.
WHEREAS, the City CouNcil of the City of Fairfax, Virginia,
has heretofore adopted an ordinance providing for the issuance of
$6,000,000 General Obligation Bonds of the City of Fairfax, Virginia;
and
WHEREAS, the City Council deems it advisable to sell said
.bonds at"this time; now, therefore,
THE COUNCIL OF THE CITY OF FAIRFAX HEREBY RESOLVES:
Section 1. The $6,000,000 General Obligation Bonds of
the City'of Fairfax at the time outstanding which mature after July 1,
1986 may be redeemed prior to their respective maturities, at the
option of the City, from any moneys that may be made available for
such purpose, either in whole on any date not earlier than July 1,
1986 or in part, in the inverse order of their maturities and by lot
within a maturity on any interest payment date not earlier than July 1,
1986, at the following redemption prices (expressed as percentages
of the principal amount) set forth below, plus accrued interest to
the redemption date:
Redemption Periods
· Redemption Price
July 1, 1986 to and including June 30, 1991
July 1, 1991 to and including June 30, 1996
July 1, 1996 to and including June 30, 2001
July 1, 2001 and thereafter
103%
102%
101%
100%
At least thirty (30) days before the redemption date, a
notice signed in'the name of the City of Fairfax, by the Mayor,
shall be (a) published once in a newspaper of general circulation
in the City of Fairfax, and in a daily newspaper of general circula-
tion or a financial journal published in the Borough of Manhattan~
City and State of New York, (b) filed at each of the places at
which said bonds and the interest thereon are payable and (c)
mailed, postage prepaid, to all registered owners of bonds to be
redeemed at their addresses as they appear on the registration
books of the City, but failure so to mail any such notice shall
not affect the validity of the proceedings for such redemption.
Each such notice shall set forth the date fixed for redemption,
the redemption price to be paid and, if less than all of the bonds
then outstanding shall be called for redemption, the maturities and
numbers of such bonds.
On the date so designated for redemption, notice having
been published and filed in the manner and under the conditions
hereinabove provided and moneys for the payment of the redemption
price being held by the paying agents, the bonds so called for
redemption shall become and be du~ and payable at the redemption
price provided for redemption of such bonds on such date, interest
on the bonds so called for redemption shall cease to accrue and the
coupons for interest thereon payable subsequent to the redemption
date shall be void. All unpaid coupons which appertain to bonds
so called for redemption and which shall have become payable on or
prior to the date of redemption designated in such notice shall
continue to be payable to the bearers severally and respectively
upon the presentation and surrender of such coupons. Bonds so
called for redemption and all unmatured coupons appertaining there-
to shall be cancelled upon the surrender thereof.
Section 2. The City Clerk of Fairfax is hereby authorized
and directed to cause a notice calling for bids for $6,000,000
General Obligation.Bonds of the City of Fairfax, Virginia, to be
published once in the Fairfax Globe, a newspaper having a general
circulation in the City of Fairfax, and once in The Daily Bond
Buyer, a publication carrying municipal bond notices and devoted
primarily to financial news and.to the subject of State and
municipal bonds published and circulating in the City of New York,
New York, said publications to be at least ten days prior to the
date fixed for the receipt of bids.
Said notice shall be in substantially the following form:
NOTICE OF SA~E
$6,000,000 GENERAL OBLIGATION
BONDS (JUNIOR LIEN REVENUE-GENERAL
OBLIGATION BONDS) SERIES 1976. OF THE
CITY OF FAIRFAX, VIRGINIA
Dated July 1, 1976
'Sealed bids will be received by the City Council of the
City of Fairfax, Virginia, in care of the undersigned, at the City
~all, Fairfax, Virginia, until 2:00 o'clock P.M., Fairfax ~ime,
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June i5 , 1976
such bids to be publicly opened and read at such time and place on
said day for $6,000,000 General Obligation Bonds of the City of
Fairfax, Virginia, dated July 1, 1976, and maturing (subject to the
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 principal amount and accrued interest to the date of re-
demption 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 25,00~ 1994 35,000
1995 35,000
1996 35,000
The bonds due July 1, 2006 are'subjec~ to mandatory
sinking fund redemption by lot beginning July 1, 1997 upon payment
of the principal amount and accrued interest to the date of re-
demption as follows:
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Sinking Fund
year Re~emp. tion .. ~ear
Sinking Fund
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
Denomination $5,000; principal and semi-annual interest
(July 1 .and January 1) payable a't The. National Bank of Fairfa~, 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; coupon bonds registrable as to principal alone; general
obligations of the City; unlimited tax.
The bonds at the time outstanding which mature after
July 1, 1986 may be redeemed prior to their respective maturities,
at the option of the City, from any moneys that may be made avail-
able for such purpose, either in whole on any date not earlier than
July 1, 1986 or in part, in the inverse order of their maturities
and by lot within a maturity on any interest payment date not
eariier than July 1, 1986, at the following redemption prices (ex-
pressed as percentages of the principal amount) set forth below,
plus accrued interest to the redemption date:
~edemption Periods
Redemption Price
July 1, 1986 to and including June 30, 1991
July 1, 1991 to and including June 30, 1996
July 1, 1996 .to and including June 30, 2001
July 1, 2001 and thereafter
103%
102%
101%
100%
Bidders are.requested to name the inter~st rate or rates,
not exceeding 8% per annum, in multiples of 1/8 or 1/20 of 1%. Each
bidder must specify in his bid the amount and the maturities of the
bonds of each rate, and the bonds maturing on the same date must
bear interest at the same rate. The interest on any bond;payable
on any interest payment date shall be represented by a single
coupon. No bid for less than par and accrued interest or for less
than all of the bonds offered will be entertained. The bonds will
be awarded to the bidder offering to purchase the bonds at the
lowest interest cost to the City, such cost to be determined by
deducting the total amount of any premium bid from the aggregate
amount of interest on all of the bonds from their date until their
respective maturities. '
Each bid must be submitted on a form to be furnished by
the undersigned, must be enclosed in a sealed envelope marked "Bid
for $6,000,000 General Obligation Bonds of the City of Fairfax,
Virginia", and must be accompanied by a certified or bank cashier's
or treasurer's check payable to the order of the City Treasurer
of the City of Fairfax, Virginia, 'for $120,000, on which no interest
will be allowed. Award or rejection of bids will be made by the
City Council of the City of Fairfax, Virginia, on the date above
stated for the receipt of bids, and the checks of unsuccessful
bidders will be returned immediately. The check of the successful
bidder will be cashed and the proceeds.will be held as security for
the performance of his bid, but, in the event the successful bidder
shall fail to comply with the terms of his bid, the proceeds will
be retained as and for full liquidated damages. The bonds will be
delivered on or about July 15, 1976 in the City of New York, New
York, against payment therefor in Federal Reserve funds.
The unqualified approving opinion of Brown, Wood, Ivey,
Mitchell & Petty, New York City, will be furnished without cost to
the purchasers and will be printed upon the bonds.. There will also
be furnished the usual closing papers.
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~-76-14
Further information will be furnished upon
City Manager, 101 Armstrong Street, City of Fairfax, Virginia 22030.
Bid forms and copies of the Official Statement in connection with. the
sale of the bonds may be obtained by application to the undersigned
at the City of Fairfax, Virginia, City Hall, Fairfax, Virginia 22030
or to L. F. Rothschild & Co., 99 William Street, New York, New York
10038, Financial Adviser to the City.
The right to reject any or all bids is reserved.
Dorothy L.'Wilkinson
City Clerk
Section 3. The form referred to in the Notice of Sale
set forth in Section 2 above and on which all bids are required to
be made shall be'substantially as follows: .
BID FOR $6,000,000 GENERAL OBLIGATION BONDS OF THE CiTY OF
FAIRFAX, VIRGINIA
, 1976
City Council of the City of Fairfax, Virginia
c/o City Clerk, City Hall
Fairfax, Virginia
Sirs:
We make the following bid for the bonds of the City of
Fairfax, Virginia, mentioned below and described in the Notice of
Sale, which Notice is hercby made a part of this bid, this bid
being for all of said bonds and not for less than all:
For $6,000,000 General Obligation Bonds of the City of
Fairfax, Virginia, dated July 1, 1976, and maturing on July 1 in
each year and bearing interest as follows:
Year of Principal interest
~aturity ...Amount Rate
We will pay
1996 $ 480,000 %
2006 5,520,000 %
Dollars ($ ). We will also pay accrued interest from
their date to date of delivery and will accept delivery in New York
City on or about July , 1976.
~{e enclose herewith a certified or bank cashier's or
treasurer's check for $120,000 payable to the order of the City
Treasurer of the City of Fairfax, Virginia, which check is to be
applied in accordance with said Notice of Sale.
The closing papers referred to in said Nbtice of Sale
are to include a certificate, dated as of the day'of the delivery
of the bonds, stating that there is no litigation pending or, to
the knowledge of the signer of such certificate, threatened af-
fecting the validity of the bonds or the means provided for their
payment.
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,R~-76- 14
(No addition or alteration, except as pro-
vided above, is to be made to this bid).
(NOTE: The average net interest ~ost rate
for the above bid, which is stated for
information onlY and is not a part of the
above bid, is %).
Section 4. The officers and agents of the City of
Falrfax, Virginia, are hereby authorized and directed to do all
the acts and things required of them by the bonds and by this
resolution for the full, punctual and complete performance of all
of the terms, covenants, provisions and agreements contained in
the bonds and in this resolution.
Section 5. No additional bonds of the City of Fairfax,
Virginia, will be offered for sQle 'by the City Council prior to
October 1, 1976 without the consent of the purchasers of the
$6,000,000 bonds being sold pursuant to the pr.ovisions of this
resolution.
Adopted: June 1, 1976
Attest:
c~y Clerk
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