HomeMy WebLinkAboutNOVEMBER 15, 1978 SPECIAL BUDGE
MINUTES OF THE SPECIAL MEETING
OF THE
HONORABLE CITY COUNCIL
OF THE
CITY OF VIRGINIA BEACH, VIRGINIA
November 15, 1978
A special meeting of the Council of the City of Virginia Beach,
Virginia, was held in the Council Charqbers, in the Administration
Building, in the Borough of Princess Anne, on Wednesday, November 15,
1978, for the purpose of receiving bids for the sale of $19,900,000
General Obligation Water and Sewer Bonds, which are part of the
previously approved $16,400,000 General O'Oligation Public Improvement
Bonds, for a total of $36,300,000.
Council Members present: John A. Baum, F. Reid Ervin, George R.
Ferrell, Councilwoman Barbara M. Henley, Clarence A. Holland,
Vice Mayor J. Henry McCoy, Jr., Donald W. Merrick, Councilwoman
meyera E. Oberndorf, and J. Curtis Payne
Council Members absent: Roger L. Riggs, and Mayor Patrick L.
Standing
ITEM #12974
NOTICE OF SPECIAL MEETING
Notice is hereby given that there will be a special meeting
of the City Council of the City of Virginia Beach in the
City Council Chambers on Wednesday, November 15, 1978, at
12:00 Noon, for the purpose of receiving bids on the sale
of $19,900,000 General obligation Water and Sewer Bonds
of the City of virginia Beach.
ITEM #12975
The City Clerk read the following letter from the City Manager:
At 11:00 a.m. today, sealed bids were opened in my office
for the receipt of City-Council's proposed sale of $19,900,000
General Obl,igation Water and Sewer Bonds, which were part of the
issue approved by voters on June 14, 1977, and $16,400,000
General Obligation Public Improvetnent Bonds for other capital
improvements in the city. The average net interest costs were
as follows:
Harris Trust and Savings Bank 5.6296%
Northern Trust Company 5.649886%
Bank of Virginia 5.6543%
,.Chase Manhattan Bank 5.658%
As Council is aware, for several years we have enjoyed the
Moody's Aa bond rating, and investors who are unfamiliar with
Virginia Beach's financial stability have used this rating.as
a creditability factor. With this sale, I am pleased to announce
that Standard and Poor's agrees with Moody's and has increased our
rating to AA. We are now a solid AA by either rating agency, and
from indications that I have had from investors, one of the best
AA ratings in the nation. With high prime rates as they are in
the private sector, bond ratings are more important than ever in
trying to receive low interest rates. Standard and Poor's increase
in rating and Moody's continued high rating of our issues continues
to point out the conscientious fiscal policy of the City Council
and the overall diversified economy of Virginia Beach.
Today's rate of 5.6296%, compared to the daily bond buyers'
20-year bond index of 6.17%, amounts to a market savings of 54
basis points. In essence, we were able to beat the market by
$2,594,511. It should be pointed out that the Wat45r and Sewer
Bonds are 25-year bonds and, thereby, increase the average life of
the General obligation Bonds which are only 20-year bonds. However,
we were st"ll able to beat the bond buyers' 20-year bond index. I
believe this is an indication that investors continue to have
confidence in the Council aiid the management of the City of Virginia
Beach.
Harris Trust & Savings Bank was the apparent low bidder,
and calculati6ns have been certified and confirmed. It is, there-
ITEII #12976
On motion by Councilm@an Payne, seconded by Councilman Ervin, and
by recorded vote as follows:
Ayes: Councilmen John A. Bauri, F. Reid Ervin, George R. Ferrell,
Councilwoman Barbara M. Henley, Clarence A. liolland, Vice Mayor
J. Henry McCoy, Jr., Donald W. Merrick, Councilwoman Meyera E.
Oberndorf, and J. Curtis Payne
Nays: None
Absent: Councilmen Roger L. Riggs, and Mayor Patrick L. Standing
City Council voted to award the sale of $19,900,000 General oblialation
Water and Sewer Bonds, and previously approved General Obligation
Public Improvement Bonds for $16,400,000 for a total of $36,300,000
to the Harris Trust and Savings Bank at an averaae net interest rate
of 5.6296%.
ITEM #12977
Councilman Payne indicated to Council and the press that Mrs. Ruth
Hodges Smith will begin her appointment as City Clerk-Designate on
Thursday, Nov@er 16, 1978, with a salary of $17,520.
ITEM #12978
On motion by Councilinan Ferrell, seconded by Councilman Merrick, and
by acclamation, the meeting adjourned.
Richard 3-.--13e on, City Clerk
City of Virginia Beach,
Virginia
Special Meeting - November 15, 1978
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