19701027 1970-24ORDINANCE NO.
1970-24
AN 0RDINANUE declaring the expediency of borrow-
lng ~one~ by the City of Fairfax, Virginia, and
the iSsUance of revenue bonds in evidence thereof
for the purpose of extending and improving the
municipal water system of said city.
WHEREAS, the City of Fairfax is a duly incorporated and
existing municipal corporation of the Commonwealth of Virginia
operating under the provisions of a Charter granted by the General
Assembly of Virginia, being Chapter 319 of the Acts of the Assembly
of 1966, as amended~ and
WHEREAS, said City of Fairfax presently owns and operates
the water system supplying water for public, commercial and domestic
purposes in and to said city and its inhabitants, and in that con-
nection, said city presently has outstanding:
$4,050,000 principal amount of 3-3/4% - 3-7/8%
Water Revenue Bonds dated June l, 1956, ~ursuant
to an ordinance adopted September 3, 195~, matur-
ing serially on June i of each of the years 1971
to 1991, inclusive, and which by their terms are
payable only from the net revenues to be derived
from the operation of said municipal water system~
and
$950,000 principal amount of 3-3/4% Water Revenue
Bonds, Series 1965, dated June l, 1965, pursuant
to an ordinance adopted June 8, 1965, maturing
serially on June i of each of the years 1990 to
1994, inclusive, and which by their terms are pay-
able only from the net revenues to be derived from
the operation of said municipal water system on a
parity with said Water Revenue Bonds dated June l,
19565
and
WHEREAS, the existing municipal water system of the City
of Fairfax, Virginia, is inadequate, making it necessary that exten-
sions and improvements be constructed so as to assure said city and
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its inhabitants of an adequate supply of water for public, commer-
cial and domestic purposes; and
WHEREAS, a detailed report covering such extensions and
improvements, which are generally described as consisting of an
earthen dam across Beaver Dam Creek and necessary appurtenances
thereto, has been prepared by Alvord, Burdick & Howson, Engineers,
of Chicago, Illinois, and is now on file with the City Clerk and
from which it appears that the cost thereof will necessitate the
expenditure of $1,000,000, for which purpose it will be necessary
to borrow funds and issue revenue bonds of said city, the interest
on and principal of which bonds are to be paid exclusively from the
receipts and revenues of said municipal water system of said city~
and
WHEREAS, in and by said ordinances adopted September 3,
1958 and June 8, 1965, the right and privilege were reserved by
said city under conditions and restrictions therein set out of
issuing additional bonds from time to time payable from the net
revenues of said municipal water system and ranking on a parity with
said Water Revenue Bonds dated June l, 1956 and Water Revenue Bonds,
Series 1965, dated June l, 1965~ which conditions and restrictions
are found to exist and prevail currently so as to permit the issuance
oF such additional bonds to the amount of ~l,O00,O00 as hereinafter
provided and ranking on a parity with said presently outstanding
Water Revenue Bonds dated June l, 1956 and Water Revenue Bonds,
Series 1965, dated June l, 1965~ and
WHEREAS, said municipal water system of said City of
Fairfax is a specific undertaking from which the city presently
derives a revenue and will continue to derive a revenue so that
under the provisions of Paragraph (b) of Section 127 of the Consti-
tution of Virginia and Sections 15o1-170 et seq. of the Code of
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1970-24
Virginia 1950,as amended, and Chapter 8 of the Charter of said
city, said city is authorized to borrow money and issue revenue
bonds for the purpose of paying the cost of such extensions and
improvemen~s~
NOW, THEREFORE, Be It and It Is Hereby Ordained by the
Council of the City of Fairfax, Virginia, as follows:
Section 1. That it is hereby declared to be expedient
that the City of Fairfax, Virginia, borrow the sum of One Million
Dollars ($1,000,000) for the purpose of constructing extensions
and improvements to the municipal water system of said city, and
that in evidence thereof there shall be issued Water Revenue Bonds,
Series 1970, of said city in the principal amount of $1,0OO,000~
to be dated December l, 1970~ of the denomination of $5,000 each$
to be numbered from i to 200, inclusive~ bearing interest at the
rate of eight per cent (8%) per annum (or at such lesser rate or
rates as may be determined and fixed by the Council as a result of
competitive bidding and public sale of said bonds), which interest
shall be payable semiannually on June i and December i of each years
and maturing serially and in numerical order on June i of the re-
spective years as follows:
Year Amount
1995 $340,000
1996 360,000
1997 300,000
provided, however, all of said bonds shall be optional for redemption
prior to maturity in whole or from time to time in part in the inverse
order of their maturities (less than all of a single maturity to be
selected by lot) at any time on or after June l, 1980, at the redemp-
tion prices aet forth below, together with the interest accrued
thereon to the date fixed for redemption.
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1970-24
If Redeemed
Redemption Price
(Percengage of
Principal Amount)
On or after June l, 1980,
to and including June l, 1985
Thereafter to and including June l, 1990
Thereafter to and including June l, 1995
Thereafter to maturity
107%
lO3%
Section 2. That the money realized from the issuance
and sale of said bonds shall be used for the purpose of paying the
cost of constructing the extensions and improvements to the muni-
cipal water system of said City of Fairfax, Virginia, as hereinbefore
recited, and that said money be borrowed and said revenue bonds be
issued in evidence thereof under the provisions of Paragraph (b) of
Section 127 of the Constitution of Virginia, and Sections 15.1-170
et seq. of the Code of Virginia 1950, as amended, and Chapter 8 of
the Charter of said city; and said bonds are not to be included
within the otherwise authorized indebtedness of said city, but are
to be payable as to both principal and interest exclusively from
the receipts and revenues derived from the municipal water system
of said city, same being the specific revenue undertaking for which
said money is to be borrowed and said bonds are to be issued.
Section B. That the revenue bonds for which provision
is hereinbefore made shall not be issued unless and until the
question of whether such bonds shall be issued is submitted to the
qualified voters of said city and approved by the affirmative vote
of a majority of such qualified voters voting upon the question at
a special election to be called and held for that purpose.
Section 4. That upon the adoption of this ordinance
the City Clerk is hereby authorized and directed to present a
certified copy hereof to the Circuit Court of Fairfax County,
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Virginia, if in session, and, if not, then to the Judge of said
Circuit Court in vacation and that same shall constitute a re-
quest and application for and on behalf of said city that the
court or judge by appropriate order and action provide for said
special election on the proposition aforesaid.
Section ~. That all ordinances, resolutions or orders,
insofar as same may be in conflict herewith, are hereby repealed
and that this ordinance become effective immediately upon its
adoption and approval by the Mayor.
Adopted by the Council
Approved October
Attest:
October 27, ~ 1970.
, 1970
Mayor \
The above ordinance is hereby certified to and approved
by me as to legality and correctness of form this 2?th day of
October , 1970.
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