RESOLUTION NO. RS2000-141

A resolution authorizing the issuance of General Services District Capital Outlay Notes in an amount not to exceed $2,320,000 of the Metropolitan Government of Nashville and Davidson County for the purpose of providing funds for bus replacements mandatory to meet safety requirements, Project No. 97BE012, and to declare the intent of The Metropolitan Government of Nashville and Davidson County to reimburse itself for certain expenditures with the proceeds of the General Services District Capital Outlay Notes.

Whereas, Tennessee Code Annotated (TCA), § 9-21-601 provides that the governing body of a local government acting by resolution is authorized to issue and sell interest-bearing capital outlay notes for all purposes for which bonds can be legally authorized and issued by a local government for public works projects, provided that the sale of all interest-bearing capital outlay notes shall first be approved by the State Director of Local Finance; and

Whereas, it is necessary and in the public interest of The Metropolitan Government of Nashville and Davidson County to issue interest-bearing capital outlay notes in an amount not to exceed Two Million Three Hundred Twenty Thousand Dollars ($2,320,000) for the purpose of providing funds for bus replacements mandatory to meet safety requirements, Project No. 97BE012; and

Whereas, it is anticipated to be necessary and in the public interest to incur expenditures in payment of said bus replacements mandatory to meet safety requirements, Project No. 97BE012, prior to the issuance of said notes; and

Whereas, it is necessary and in the public interest for The Metropolitan Government of Nashville and Davidson County to state its intentions with respect to reimbursements for said expenditures in accordance with the requirements of final regulations applicable thereto promulgated by the United States Department of the Treasury.

Now, therefore, be it resolved by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1: That for the purpose of providing funds for bus replacements mandatory to meet safety requirements, Project No. 97BE012, and for the defrayal of all incidental and necessary expenses in connection therewith, there is hereby authorized to be issued negotiable, interest-bearing capital outlay notes of The Metropolitan Government of Nashville and Davidson County in the total principal amount not to exceed Two Million Three Hundred Twenty Thousand Dollars ($2,320,000), subject to the approval of the State Director of Local Finance.

Section 2: Said note or notes shall be designated "MBOE Bus Capital Outlay Note(s) of 2000" and shall be due and payable not more than three (3) years from the date of issuance thereof in lawful money of the United States of America at the office of the Metropolitan Treasurer of The Metropolitan Government of Nashville and Davidson County; provided, however, that with the approval of the State Director of Local Finance the maturity date of such note(s) may be extended or renewed for not more than two (2) additional periods of not exceeding three (3) years each. Each year said note(s) (including extension notes) are outstanding The Metropolitan Government of Nashville and Davidson County shall retire a portion thereof equal to but not less than one-ninth (1/9) of the original principal amount of such note(s). Said note(s) shall mature serially, and shall be subject to redemption prior to maturity in whole or in part, with accrued interest to the date of said redemption. Said rate of interest established by competitive public sale or by informal bid process shall not exceed the maximum rate of interest provided by law.

Section 3: For the prompt payment of this obligation, the principal amount of said note(s) and interest thereon shall be payable exclusively from ad valorem taxes to be levied for such purpose on all taxable property in the General Services District of The Metropolitan Government of Nashville and Davidson County, without limitation as to the rate or amount. Said note(s) shall be direct general obligations of The Metropolitan Government of Nashville and Davidson County and the full faith and credit and other resources of The Metropolitan Government of Nashville and Davidson County, together with the taxing power of The Metropolitan Government of Nashville and Davidson County as to all property in the General Services District of The Metropolitan Government of Nashville and Davidson County, are hereby irrevocably pledged. Both principal and interest on said note(s) shall be paid first out of the school debt service fund and, thereafter, may be paid out of the debt service fund of the General Services District.

Section 4: If for any reason, said note(s) have not been paid within three (3) years of issuance or any extended maturity granted pursuant to TCA, § 9-21-606, said note(s) shall be retired from funds of The Metropolitan Government of Nashville and Davidson County or be converted to bonds as provided by TCA, §§ 9-21-101 et. seq. or any other law or be otherwise liquidated as approved by the State Director of Local Finance; provided, that no such note(s) shall be converted to bonds later than two (2) years following the date of original issuance of such note(s) without the approval of the State Director of Local Finance.

Section 5: That said note or notes shall be executed in the name of The Metropolitan Government of Nashville and Davidson County by the Metropolitan County Mayor of The Metropolitan Government of Nashville and Davidson County, and attested by the Metropolitan Clerk with the seal of The Metropolitan Government of Nashville and Davidson County, attached thereto, and said note(s) shall be in the form as authorized and required by law. Said note or notes shall be sold by the Metropolitan County Mayor of The Metropolitan Government of Nashville and Davidson County for not less than par and accrued interest. The note may also be issued to the Metropolitan Government of Nashville and Davidson County, for the purpose of making an interfund loan in accordance with TCA § 9-21-408, which loan is hereby authorized, in which case the note shall become an asset of the fund from which the loan was made.

Section 6: That said note or notes are issued by The Metropolitan Government of Nashville and Davidson County for the purpose of providing funds for bus replacements mandatory to meet safety requirements, Project No. 97BE012, and for the defrayal of all incidental and necessary expenses in connection therewith, and is in all respects in compliance with and under the authority of TCA, §§ 9-21-601 through 9-21-611 and under the authority of this Resolution duly passed by the Metropolitan County Council of The Metropolitan Government of Nashville and Davidson County and approved by the Metropolitan County Mayor.

It is hereby certified and recited that all acts, conditions and things required by the Constitution, the laws of the State of Tennessee and the Charter of The Metropolitan Government of Nashville and Davidson County to exist or be done precedent to and in the issuance of this obligation do exist and have been properly done, happened and been performed in regular and due form and time as required by law, and that provision has been made or will be made for the payment of the principal and interest of said note(s) when same fall due.

Section 7: The Director of the Department of Metropolitan Finance is to designate a fund into which all moneys received from the sale of the capital outlay note(s) shall be deposited and shall cause payment to be made from this fund for costs incurred and expenditures made for the specific purposes authorized by this Resolution.

Section 8: The Metropolitan Government of Nashville and Davidson County hereby states that it reasonably expects to reimburse itself for expenditures made by The Metropolitan Government of Nashville and Davidson County in connection with providing funds for bus replacements mandatory to meet safety requirements, Project No. 97BE012. The expenditures made prior to the issuance of said notes are expected to be paid from funds of The Metropolitan Government of Nashville and Davidson County and reimbursement shall be made to The Metropolitan Government of Nashville and Davidson County from the proceeds of the notes.

Section 9: This resolution constitutes a declaration of official intent under Treasury Regulation 1.150-2.

Section 10: This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Eileen Beehan

LEGISLATIVE HISTORY

Referred to: Budget & Finance Committee
Education Committee
Introduced: February 15, 2000
Adopted: February 15, 2000
Approved: February 17, 2000
By: Mayor