HomeMy WebLinkAboutO-1694ORDINANCE NO. 1694
AN ORDINANCE TO AUTHORIZE THE ISSUANCE OF
THE CITY'S GENERAL OBLIGATION WARRANT IN
THE PRINCIPAL AMOUNT OF $5,000,000 (IN EVIDENCE
OF A REVOLVING TWO-YEAR LINE OF CREDIT WITH
COMMUNITY BANK FOR CURRENT OPERATING EXPENSES AND
UNANTICIPATED, OR EMERGENCY, CAPITAL IMPROVEMENTS)
BE IT ORDAINED by the City Council (herein called the "Council") of the CITY
OF FAIRHOPE (herein called the "City") in the State of Alabama, as follows:
Section 1. Findings. The Council has found and ascertained and does hereby
declare as follows:
(a) in connection with the recent extraordinary and unexpected costs
incurred as a result of Hurricane Sally storm damage, it is necessary, desirable
and in the public interest for the City to arrange to borrow not in excess of the
sum of $5,000,000 outstanding at any time under a revolving line of credit to be
used for the payment, from time to time during the next twenty-four (24) calendar
months, of current operating expenses of the City incurred in connection with
storm clean-up costs, and of the cost of such capital improvements as may be
required in connection with such costs, said borrowing to be evidenced by a
warrant to be secured by the full faith and credit of the City;
(b) during said twenty-four month period, the City expects to apply
and receive federal reimbursement for all or a significant portion of said costs,
and, upon receipt thereof, expects to use such reimbursement to repay such
borrowed amounts; and
(c) Community Bank, Fairhope, Alabama (herein sometimes called
the "Bank"), has agreed to purchase the said warrant from the City in evidence of
said line of credit.
Section 2. Authorization and Representation. Pursuant to the provisions of
Section 11-47-2 of the Code of Alabama of 1975, as amended, and for the purpose of providing
(as and when needed) funds for the purposes described in Section 1 hereof, the City is hereby
authorized to borrow from the Bank not exceeding $5,000,000 and, in evidence of the money so
borrowed, is authorized to issue and deliver to the Bank its General Obligation Warrant (herein
called the "Warrant") in the principal amount of $5,000,000. The Warrant shall be dated the date
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