03-22-62 Minutes~rssen~:
Mr. Irvin G.Horner, Chairman
Mr. H. T. Goyne
· .~r. Stanley R.Hague, Jr.
l~'h~. H .K. Haaerman
Mr. R. J.Britvon
· 'lta regular meeting of the Board
of Supervisors of Chesterfield
County, held at the Courthouse on
March 22, ~62, at 2:00 P.i~.
Absent: ~[r. Yiarshall F.Driskill
On motion of ~r.Goyne, seconded by ]?ir. "-,~ritton, it is resolved that a Variance
request by I'~s. DonaLi, ~rom the SubOivision Ordinance to allow t~e construction
of a home on Lots 16 and 17, Block 7~ in Central Park, be approved, subject to
the receipt of the ~150.OO as ~'irs. Donati's share of' the construction of th~
roadway in front of saidproperty. ~
On motion of Mr.Britton, seconded by I~Ir.~ague, it is resolved that a Variance from
the Subdivision Ordinance be .~rante~-i to Mrs. Thelma Sanderson, to allow the
construction of a dwelling on a lot 70 feet wide, fronting on Waldor Drive, as
shown on plans recorded with the Boar~'s papers, subject to the granting of a
10-ft. widening strip along said ~'~aldor Drive. ·
On motion of f~'~r. Britton, seconded by Mr. Ha. Tue, it is resolved that a Variance
from the Subdivision Ormin~'~nce be a~,proved for the construction of a dwelling
on a 55-ft. lot, fronting on Dorset ROad,' said lot being owned by Mr. John S.
Thomas, subject to' the receipt of a Surveyor's plat Of the nropose~'~ lot showing the
width of the entire lot being not less than 65-feet. ~ ~
On motion of Mr. Hayue, seconded by i'..r.Britton, it is resolved that tb.~~, sum of
(~500.00 be appropriates [~rom the unappropriated surplus to item iA in n?'e G ~ '~
Fund. en ~ r=l
ner~: arose a discussion on the ~egional Plannin~ Commission, the ~roposed traffic
plan svudy and tbs proposed economic study of the area, and. it was genera!Iv
agreed t?:at thi~ mat~er ~.~,'ould be deferred ?or further consideration on A~,ri~z IO
when [~'~r. Robe~.t ~lorne woul~ be asked 'to appear before the Board and explain further
these studies.
kr. Fred Thompson, Supt. of Schools~ comes before the Board citin~ the schools
estim&ted construction needs for t?~e cor.!inf~ three year', which amounted to
approximately ~lO,OOO,O00, and it was generally agreed that the School ~oarcl should
request, by resolution~ a Referendum on a proposed Bond Is,'~ue of this amount.
On motion of l'.',r. Britton, seconded by Mr.Ha~'erman, it is .r'eso!ved that the reouest
for Scholarship payments in the amount of ~'~6,909.75, ~e and it hereby is approved
for payment. ' ' ·
T. here arose a discussion of the possible construction of a County garage from
which all $ounty-owned vehicles could be serviced, whereupon, Mr. Thompson
pointed out that the School Board had appointed a Committee to discuss this matter
with the Board of Supervisors. On motion of I~ir. Goyne, seconded by Mr. Hagerman,
it is resolved that the Buildings & Grounds ~,ommittee meet with the School Committee
to discuss the problems and the feasibility of initiating a central garage for the
County. ~ -
On motion of i~,!r. Hage~-,man, seconded by t~,ir. Hague, it is resolved that the Resident
Engineer of the Highway Department be requestsd to submit an estimate of the cost
of improving approximately 300 feet of ~[orth Street, lying west of ',;!illiams Street
in Ettric k.
On motion of Mr. Britton, seconded by Mr. Hague, it is resolved that the County
Engineer be and he hereby is authorized to install water lines on Dickson and
Shelby Streets in the l.?oodstock Subdivision,it being understood that there are
approximately 75 homes in this area, 33 or more of said homes having signed
applications for County water and most of the wells in the general area are
po'lln~ed by surface water.
On motion of Mr. Hagerman, seconded by Mr. Britton, it is resolved that the minutes
of Decem~:.er 28, Fanuary 25, February lg and March 1, be, and they are hereby approved.
Mr. Mark Smith, from the F.l";.Craigie & Company, Bond Buyers, comes before the
Board to expiain the proposed bond resolution which calls for the re-financing
of the existing water bonds and the sale of the $750,000 bonds ~uthorized previously.
There wa's much discussion concerning this proposal. On motion of Mr. Britton,
seconded by Mt. Hague, the following resolution be and it hereby is adopted:
A Resolution authorizing the issuance of $750,000 Water Revenue Bonds and
$3,070,000 Water Revenue Refunding Bonds of the County of Chesterfield, payable
from the new revenue derived by the County from the operation of its water system;
WHEREAS, the County of Chesterfield (herein referred to as "County"), a
political subdivision of the Commonwealth of Virginia, now owns and'operates and
has heretofore for many years owned and operated a water supply system or systems
designed to provide a supply ofwater to the County and its inhabitants; and
WHEREAS, the County is authorized by Chapter 175 of the Acts of 19&6 of
Virginia, as amended by. Chapter 56 of the Acts of 19&8 of Virginia and Chapter &01
of the Acts of Virginia,of'~1956,.to construct a new water system or new water
supply systems and toreconstruct, extend and/or improve the existing water supply
systems now owned and maintained by the County in order to provide an adequate
supply of water to theCounty and to its inhabitants; and
WHEREAS, the Board of Supervisors of the County has determined to construct
one or more new waker supply systems and to reconstruct, extend and/or improve
such existing water supply systems; and
WHEREAS, at a special election held in the County on January 9, 1956, the
following question was submitted to the qualified voters of the County:
"~hall the qualified voters of the County of Chesterfield approve the
contracting of a loan and the issuance of bonds of the County of Chesterfield
of the aggregate principal amount of $~,000,000 to finance the c~st of
constructing a new water supply system or new water supply systems and the
reconstruction, extension .and/or improvement of existing water systems now
maintained by the County, in order to provide an adequate supply of water to
the County and to its inhabitants, and, to the extent permitted by law, to
refund the principal of and interest on $1;315,000 outstanding bonds of the
County heretofore issued for such purposes, upon the condition that the net
revenue from the sale of water from such water supply systemor systems shall
b'e obligated and appropriated to the payment of such bonds and that the credit
of the County shall not be obligated thereto,"
and a majority of such qaulified voters voting on said Question at said special
election voted in favor of the bond issue referred to in said question and the
Circuit Court of the County, by an order entered on January 16, 1956, ordered the
Board of Supervisors of the County to issue and sell said bonds; and
WHEREAS, the Board of Supervisors of ~hesterfield County on March 7, 1957,
adopted a resolution entitled:
,,A RESOLUTION AUTHORIZING THE ISSUANCE OF $~.000.000 WATER REVENUE BONDS OF THE COUNTY OF CHESTERFIELD. PAYABLE FRDM~HE ~ET REVENUE DERIVED
BY THE COUNTY FRO~ THE OPERATION OF ITS WATER SYSTEM,,,
and the County has issued pursuant to said resolution its bonds (herein referred
to as "Outstanding Bonds") which are now outstanding and ~hich consist of the
following bonds:
(1) $1',625,000 Serial Water Revenue Bonds, numbered from i to 1625,
inclusive, in the order of their maturity, bearing interest from
their date at the rate of ~% per aanum, payable semi-annually
on January 1 and July 1, and constituting an issue of bonds
payable in annual installments on July 1 in each ~ear as follows,
vi~.:
Year of Maturity Year of R~turity Year of ~laturity
Maturity Installment Maturity _ Installment Maturity Installment
1962 $15i000 1973 $30,000 1984 $75,000
1963 15,000 197& 35;000 1985 80;000
1964 15,000 1975 35;000 1986 90~000
1965 15,000 1976 40,000 1987 95,000
1966 15,000 1977 50~000 1988 100,000
1~67 20,000 1978 50~000 1989 100,000
1968 2b,O00 1979 55,000 1990 105,000
1~69 25,000 1980
55;000 1991 105~000
1970 2~,000 1981 60~000 1~92 105,000
1971 30,000 1982 65,000
1972 30,000 1983 70,000
(2) $1,625,000 Term Water Revenu$ Bonds, numbered from 1 to 1625,
inclusive, all payabl~e on July l, 1997 and bearing interest
at the rate of 4-1/8% per annum,payable semi-annually on
January i and July l;
and all of the Outstanding Bonds were duly issued pursuant to Chapter~ 175 of the
Acts of 19~6 of Virginia, as amended by Chapter 56 ofthe Acts of 1948 of Virginia
and Chapt er 401 of the Acts of 1956 of Virginia, and are payable solely from the
net revenue of the water supply systems owned and maintained by the County, and
all of the Outstanding Bonds are dated January t' 195?, and the Outstandin~ Bonds.
payable on or subsequent to July 1,. 1963, by their terms are redeemable at the
option of the County on July ~, 1962, or on any subsequent interest payment date; and
WHEREAS, the Board of Supervisors desires to refund pursuant to the Public
Finance Act of 1958 {Chapter 19.1 of Title 15 of th~ Code of Vlr inla
$3,070,000 of the Outstandin~ R~ ........... ' g ' , 1950),
o ..... o u~ one ~ounsy such 0 0
Bonds are t - · , $3, 7 ,000 of Outstandi
he Outstandin Bonds whx ng
to . g ch are redeemable less funds on hand ava'
pay Outstanding Bonds (of the ~ 9~ ~ ......... ~lable
~,~,~uu~ u~ uonns outstanding, $15,000 is due
in 1962 and not redeemable and there are funds on hand to pay such bonds and,
in addition thereto, there is on hand funds in the amount of $165~O00 available to pay
an equivalent amount of the Outstanding Bonds) and to pay orcause to be paid to
the holders of the 'Outstandin~ Bonds which are redeemable any coupons, the principal
and interest and redemption premium, if any, to become due thereon, at the times
i and in the manner stipu~lated therein and in the said ~esolution adopted on March 7,
' 1957, thus discharging and satisfying the pledge of the Revenues and other moneys
and securities Pledged to the payment of the Outstanding Bonds and the interest
thereon and releasing all other rights granted by said Resolution; and
WHEREAS, the Board of Supervisors desires to issue the'unissued balance of
$750,000 of the $&,OO0,O00 bonds of the County, in accordance with the approval given
! by the qualified voters of the County at said special election, to finance the cost
of constructing a new water sypply system or new water supply systems and of re-
~;n~U~ot~nntg~ ~toe~ie~gtoan~d~' ~Pa~v~g ex.i sting war e_r supply 4ystems now maintained
~ e ua~e.supply oi' water to the County and its
inhabitants: NOW, THEREFORE, BE IT RESSLVED, by the Board of Su ervisors of
County of Chesterfield as follows: P the
ARTICLE I
GENERAL PROVISIONS
ectzon lO1.. This Resolution is adopted by virtde of the Act (as herein
· defined)and the Public Finance Act of 1958, and pursuant to their provisions, and
i the Board has acertained and hereby determines that each and every matter and
~thing as to which provision is made in the Resolution is necessary in order to
carry out and effectuate the purposes of the County in accordance with the Act amd
said Public Finance Act of 195~.
Section 102. In consideration of the purchase and acceptance of the Bonds
by those who shall hold the same from time to time, the provisions of the Resolutio~
shall be deemed to be and shallconstitute a contract between the County and the
holders from time to time of the Ronds and coupons; and the covenants and agreements
herein set forth to be performed on behalf of the County shall be for the equal
benefit, protection and security of the holders of any and all of the Bonds and
coupons, all of which, regardless of the time or times of their issue or maturity,
shall be of equal rank without prefer, eHee, priority or distinction of any of the
Bonds or coupons over any other thereof except as expressly provided herein.
Section 103. Whenever the following terms, or any of them, are used in this
iResol~ution, the statue, unless the context shall indicate another or different
meaning or intent, shall be construed, are used and are intended to have meanings
as follows:
(1) Words importing the singular number include the plural number and vice
versa and words importing persons include firms, associations and
corpor at ions.
(2) WOrds importing the redemption or redeeming or calling for redemption
of Bonds do not include or connote the payment of Bonds at their stated
maturity, or the payment of Bonds upon declaring such Bon~s due and
payable in advance of their maturity, or the purchase of Bonds.
(3) Articles and. Sections mentioned by number are the respective Articles
and Sections of the Resolution so numbered.
(&) "Act" means Chapter 175 of the Acts of 1946 of Virginia, as amended
by Chapter 56 of the Acts of 1948 of Virginia and Chapter 401 of the
Acts of 1956 of Virginia.
(5) "County,, means the County of ~hesterfield, a political subdivision
of the Commonwealth of Virginia, and "Board" means the Board of
Supervisors of the County.
(6) "ReSolution,, means this resolution.
(7) "Bonds,, means the bonds authorized by the Resolution end-includes any
"Additional Bonds" issued in accordance with Section 315.
(8) · !'.Bondholder" or "holder of Bonds" or any s~mular term means any
person who shall be the bearer of any outstanding Bbnd or Bonds
registered to bearer or not registered, or the registered owner of
any outstanding Bond or Bonds which shall at the time be registered
outerhwise than to bearer.
(9) "Water System" means the water supply systems now maintained and
operated or Which may hereafter be maintained and operated by the
County in or,er to Obtain a supply of water for the County and its
inhabitants, and to conserve, treat and dispose of such water, and
shall include all improvements hereafter made for the purpose of
enlarging, extending, reconstructing or otherwi se improving such
water supply sytems.
{lO) "Wgter System Improvements, mean the improvements referred to in
Section 203.
~z; "~evenues,, means all income, derived Ny the County from the operation of
the Water System and includes all moneys received in Payment of rents, rates,
fees and other charges for the use of and for the services furnis~d by the Water
System, other than moneys receiv ed as reimbursement for expenditures made in
installing service connections or charges made for permission to connect with the
Water System.
{12) "Service Charges" mean rents, ~ates, fees and other charges for the use of
water furnished by or for services furnished by the Water System, as prescribed
or fixed by the County.
{13) "Operating Expenses" means the County's reasonable and necessary current
expenses of maintaining, repairing and operating the Water system, including without
limiting the generality of the foregoing, all administrative, general and commercial
expenses, insurance and surety bond premiums, payments for the bilting and collection
of Service Charles, engineering expenses, legal expenses, any ta~es which may be
lawfully imposed on the County or its income or operations or the property under
its control, ordinary and current rentals of equipment' or other property, usual
expenses of mainten~ce and repair, and any other current expenses required to be
paid by the County under the provisions of ~the Resolution or by law, all to the
extent properly and directly attributable to the Water System ~but not including ·
any reserves for operation, maintenance or repair or any allowance for depreciation,
amortization, interest on Bonds, or similar charges.
(14) "Construction Fund" means the fund so designated which is established in
Sectio~ 501.
(15 } "Annual Budget" means the budget or amended budget for a FiscaI Year adopted
by the County or in effect pursuant to Section 612.
(16) "Net Revenues" means the Revenues received by the County during any fiscal
year less the Operating Expenses for such fiscal year.
(17) "Fiscal ~ear" means the period of tw~elve calendar months ending with
June 30 of any year. ~
{lQ} "Issuance Date" means the dat~ on which Bonds are delivered to and paid for by
the purchasers thereof.
(19) "Authorized Officer of the County" means the ~Chairman of the Board of
Supervisors of the Codnty and any other person authorized~by resolution of such
Board of Supervisors.
(20) "Outstanding Bonds,, means the $1,625,000 Water Revenue Bonds dated
January 1, 1957, a~d the $1,625,000 Term Water Revenue Bonds date~ January 1,
1957 which are described in the preamble of the Resolution.
ARTICLE II
AUTHORIZATION OF BONDS
Section.201. (1) The County shall issue, pursuant to and in accordance wi
~th the Act, $750,000 Water Revenue Bonds, in anticipation of the collectitohn
revenues to be derived by the County from the operation of the water system.
(2) The County sBall issue, pursuant to the Public Finance Act of 1958
(Chapter 19.1 of Title 15 of the Code of Virginia, 1950) $3,070,000 Water Revenue
Refunding Bonds to refund a like principal amount of Outstanding Bonds and in
anticipation of the collection of revenues to be derived by the County from the
operation of the water system.
Section 202. of the moneys raised by the issuance of the Bonds $3,0701000
shall be deposited with ~he Central National Bank of Richmond, in trust for the
payment of $3,070~O00 of the principal of the Outstanding Bond~ hereinbefore
desc rib ed ..
Section 203. The moneys raised by the issuance of the $750,000 Water
Revenue Bonds, including a proportionate share of the pr.emium, shall be
deposited in the Construction Fund established and created by the Resolution
and shall be applied to the payment of 'the cost of constructing a. new water
extension and/or improvement of existing water supply systems now owned and
maintained by the County, in or, er to provide an adequate supply of water to the
County and its inhabitants, all of such' purposes are referred to in the
Resolution as "Water System Improvements"; provided, however, none of the moneys
so deposited in the Construction Fund shall be used to finance any Water System
Improvements other than those which are include~ in the projects described in
Projects i to IX, inclusive, of the Engineers' Report dated August 1955 which was
prepared by the then Consulting Engineers, Causey and Weeks, of the City of
Norfolk, Virginia, at the request of the Board of Supervisors, which is now
on file in the office of the Clerk of theBoard, unless all of said Projects
have been completed or that the moneys to be used to finance such (9ther Water
System Improvements ( as that term is defined in Section 103 (10) in the
Resolution) will not be needed to finance such Projects.
ARTICLE III
ISSUANCE OF BONDS
Section 301. The Bonds shall be special obligations of .the County payable
solely from the net revenue derived by the County from the operation of the
War er System.
Section 302. The Bonds shall be issued as coupon bonds and shall be registrable
at the option of the holder as to principal only. Each Bond shall be signed
by the Chairman of the Board and by the Clerk of the Board. The corporate seal
of the Board shall be affixed to or impressed on each Bond. The interest coupons
representing the interest payable on each Bond shall bear the facsimile signatures
of said Chairman and Clerk.
Section 303. The $3,O70,000 Water Revenue Refunding Bonds, authorized by
Section 201 hereof, shall consist of an issue of three thousand seventy
bonds of the denomination of $1,000 each, numbered from i to 3,070 inclusive, in
the order of their maturity, each bearing the designation of"~ater Revenue
Refunding Bonds", shall'be dated April l, 1962, and shall be payable in annual
installments on April l, in each year, as follows, viz.:
Amount of
Year of Maturity Year of Amount of
Mat urity Installment s Maturity Maturity
In st allments
1963 $40;000 1977
1964 60,000 1978
1965 65~000 1979
1966 70,000 1980
1967 75;OOO~ 1981
1968 80,000 1982
1969 80;000 1983
1970 90;000 1984
1971 95;000 1985
1972 95;000 1986
1973 100,000 1987
1974 105;000 1988
1975 110;000 1989
1976 115,000
$120;OOO
120,OOO
130;O00
135;OOO
140,O00
145;OOO
150;000
155;000
165,000
175;000
175;O00
180~000
100,O00
Section 304. The $750,000 Water Revenue Bonds, authorized by Sectioh 201 hereof,
shall consist of an issue of seven hundred fifty bonds of.the denomination of $1,000
each, numbered from i to 750, inclusive, in the orde$ of their maturity, ~ each
bearing the designation of "Water Revenue Bonds", shall be dated April 1,1962,
and shall be payable in annual installments onApril l, in each year, as follows,
~iz.:
Amount of Amount of
Year of Maturity Year of Maturity
Maturity In stallment s. Maturity Ins tatlments
1963 $10,OOO 1977
1964 15,0OO 1978
1965 15,O00 1979
1966 15,O00 1980
1967 15;0OO 1981
1968 20;000 1982
1969 20;000 1983
1970 20;000 1984
1971 20,000 1985
1972 25,000 1986
1973 25,000 1987
1974 25,000 1988
1975 25,000 1989
1976 25,000
$25;OOO
30;000
30,000
30,000
35,000
35;000
35;OOO
40;000
40;000
40,000
45,000
45;000
45,000
Section 305. Each of the Bonds shall bear interest from its date until the
County's obligations with respect to the payment of the principal sum of such
Bond shall be discharged at rates as follows:
The Bonds maturing on April 1, J963 to April 1, 1966, at the rate
of 5% per annum;
The Bonds maturing on April 1, 1967 to April 1, 1980, at the rate
of 3-1/2% per annum;
The Oonds maturing on April 1, 1981 to April 1, 1985, at the
rate of 3.70% per annum; and
The Bonds maturing on April 1, 1986 to April 1, 1989, at the
rate of 3-3/4% per annum.
Such interest shall be payable semi-annually on April land October 1. The Bonds
shall be redeemable prior to their maturities upon the terms and conditions
prescribed by Article IV hereof.
Section 306. Both principal of and interest on the Bonds shall be payable at
a bank or trust company, in Virginia, designated by resolution of~he Board, or,at
the option of the holder, at the principal office of a bank or t~us~ company
designated by resolution of the Board and located in the Borough of Manhattan,
City and State of New York, in any coin or currency of the United States of
America~ which on the respective dates of payment shall be legal tender for the
payment of public and private debts.
Section 307. The County may treat and consider the bearer of any Bond
as the holder and absolute owner thereof, whether such Bond be overdue or not,
for the purpose of receiving payment of the principal and redemption premium,
if any, and for all ct-her purposes whatsoever except for the purpose of receiving
payment of coupons. The County may treat and consider the bearer of any coupon
appurtenant to a Bond as the holder and absolute owner thereof, ,whether such coupon
or such Bond shall be overdue or not, for the purpose of receiving payment thereof
and for all other purposes whatsoever. All payments made in this Section 07
provided shall be valid and effectual to satisfy and discha~rge and liability upon
the several bonds to the extent of the sum or sums so paid.
Section 308. In case any outstanding Bond shall become mutilated or be
destroyed, stolen or lost, the County may prepare and deliver a new bond ( with
appropriate coupons attached) of like tenor, number and amount as the bond and
appurtenant coupons, if any, so mutilated, destroyed, stolen or lost, in exchange
and substitution for such mutilated ~ond and upon surrender of such mutilated bond
and appurtenant coupons, if any, or in.lieu of and substitution for the bond and
appurtenant coupons, if any, destroyed, stolen or lost, upon filing with the
County evidence satisfactory to the County that such Bond and appurtenant coupons,
if any, have been .destroyed, stolen or lost and proof of the ownership thereof,
and upon furnishing the County with indemnity satisfactory to them and ccmplying
with such other reasonable regulations as the County may prescribe and paying such
expenses as the County may incur in connection therewith.
Section 309. All Bonds or Coupons surrendered to the County under the
provisions of Section 308 of the Resolution shall be cancelled by the County
Treasurer. In all cases in which new Bonds are to be delivered under Section
308, the County Treasurer shall deliver a certificate specifying the Bonds
des6royed, stolen or lost to the Board of Supervisors of the County, and the
County shall execute coupons or Bonds as required by the transection.
Section 310. Subject to the provisions of the Resolution each Water Revenue
Refunding Bond and each Water Revenue Bond, the coupons to be attached thereto, and
the certificate of authentication to appear thereon shall be, respectively, in
substantially the following form, with such omissions, insertions, endorsements
and variations as may be required or permitted by the Resolution or as may be
consistent with the Resolution:
No.
(Form of Bond)
NO.
UNITED STATES OF AMERICA
CO~ONIYEALTH OF VIRGINIA
COUNTY OF CHESTERFIELD
WATER REVENUE REFUNDING BOND
~,VATER REVENUE BOND
$1,000 $1,000
The COUNTY OF CHESTERFIELD ( hereinafter called the County), a
political subdivision of the Commonwealth of Virginia, for value received, hereby
promises so pay, solely from the revenues hereinafter referred to, to the bearer
on April l, 19. , the principal sum of ONE THOUSAND DOLLARS ($1,O00),and to pay,
solely from said revenues, interest on said principal sum from the date of this
Bond, at the ra~e of - per centum ( %) per
annum, semi-annually on April i and Octobe~ i of each year, until the County's
obligation with respect to the payment of said principal sum shall be discharged.
So much of said interest as shall be payable at or before the da~e of maturity
of this Bond expressed herein will be paid only upon presentation and surrender
of the annexed interest coupons as they severally mature; and so much of said
interest as shall be payable after said date of maturity will be paid to the
bearer of this Bond. Payment of the principal of and interest on this Bond will
be made at the principal office of
Virginia, or, at the option of the holder~' at the principal office of '
, in the Borough of
Manhattan, City and State of New York, in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts.
(Paragraph to appear in Water Revenue Bonds only)
This Bond is one of a duly authorized issue of bonds,-of the County of the
aggregate principal amount of $750,000, dated April l, 1962, and consisting of
seven hundred and fifty bond (750) of th~ denomination of $1,000 each, designated
"Water Revenue Bonds", maturing serially on April i ih each of the years 1963
to 1989, inclusive, and numbered from i to 750, inclusive, in the order of their
maturity. The bon~s of said issue are issued pursuant to Chapter 175 of the
Acts of 19&6 of Virginia, as amended by Chapter 56 of the Acts of 19&8 of Virginia
and Chapter 401 of the $cts of 1956 of Virginia, and pursuant to a resolution
(herein referred to as "Resolution"), entitled "A Resolution authorizing the
issuance of $750,000 Water revenue Bonds and $3,070,000 Water Revenue Refunding
Bonds of the County of Chesterfield, payable from the net revenue derived by
sthe County fro_m the opermtion of its water system", adopted by the Board of
uperv~sors of the Count on ~
· , Y ,1962. The said ~a~er Revenue
Bonds and the $3,070,O00 Water Revenue Refunding Bonds are herein collectively
referred to as "Bonds".
(Paragraph to appear in Water Revenue Refunding Bonds ohly)
This Bond is one of a duly authorized issue of bonds of' the County of the
aggregate principal amount of $3,0?0,000, dated April l, 1962, and'consiating
of three thousand ~seventy bonds~of the denomination of $1,000 each, designated
"Water Revenue Refunding Bonds", maturing serially on April 1 in each of the
years 1963 to 1989, inclusive, in the order of their maturity. The bonds of said
issu'e are issued pursuant to the Public Finance Act of 1958 of ~irginia {Chapter
19.1 ~£ Title 15 of the Code of Virginia, 1950) and pursuant to a resolution
{herein referred'to as "Resolution"}, entitled "A Resolution authori~,ing the
issuance of $?50,000 Water Revenue Bonds and $3,0?0,000 ~.~qter Revenue Refunding
Bonds of the County of Chesterfield, payable from the net revenue derived by the
County frcm the operation of its water system", adopted by the Board of Supervisors
of the County on ., 1962. The said Water Revenue Refunding
Bonds and the $750,000 Water Revenue Bonds are herein collectively referred to
as "Bonds".
The Bonds are issued or are to be issued to finance the cost of constructing
one or more new water supply systems and the reconstruction, extension and/or
improvement of existing water supply systems now owned a~maintained by the County,
in order to provide an adequate supply of water to the County and its inhabitants,
and to refund the principal of Bonds heretofore issued for one or more of such
purposes, and a portion of the net revenues to be derived by the County from the
operation of such wa~er supply systems is pledged for the payment of the Bonds.
The credit of the County is not pledged to or obligated to the payment of the
Bonds.
Reference to the ~ Resolution is made for a description of the nature and
extent of the security for the Bonds, the funds or regenues pledged, The pledge
of the revenues and other obligations of the County under the Resolution may be discharged
at or prior to the maturity or redemption of the Bonds upon the making of provisions
for the payment thereof on the terms and conditions set forth in the Resolution.
The County. may issue, pursuant to the Resolution, Additional Bonds, on a parity
with the Bonds, for the purposes~ in the amount and on the conditions prescribed ·
in the Resolution.
The Bon~s payable on or after April 1, 1968, may be redeemed as a whole
or in part, on April 1, 1967, or on any subsequent interest payment date prior
to their respective stated maturities, at the option of the County, at a
redemption price, the interest accrued thereon to the date fixed for redemption
and an amount equal to 104% of the principal amount of Bonds redeemed on or prior
to April 1, 1972,and 10~% of the principal amount of Bonds redeemed thereafter but
on or before April 1, 1977, and 102% of the principal amount of Bonds redeemed
thereafter but on or before April 1, 1982, and 101~ of the principal amount of
the Bonds redeemed thereafter. If less than all of the Bonds then outstanding
are ~o be redeemed, the particular Bonds to be redeemed shall be those which
bear the highest identifying numbers. Whenever any of the Bonds shall be
redeemed prior to their maturity, notice of such redemption of Bonds, stating
the redemption date and identifying the Bonds by reference to their numbers and
further stating that on such redemption date there shall become due and payable
upon each Bond so to be redeemed, the principal thereof and the redemption
premium together with the interest acfrued to the redemption date and that from
and after such d~te interes~ thereon shall cease to accrue, shall be given by
publication at least once in a financial newspaper published in the Borough of
~anhattan,City and Sta~e of New York, not less than 30 days nor more than OO
days prior to the redemption date fixed in said Notice.
It is hereby certified and recitad that all conditions, acts and things
required by the Constitution or statutes of the Commonwealth of Virginia or the
Resolution to exist, to have happened or to have been performed precedent to or
in the issuance of this Bond exist, have happened and have been performed and
that said issue of Bonds, together with all other indebtedness of the County, is
within every ~e~t and other limit prescribed by said Constitution or statutes.
IN TIWNESS WHEREOF, the County has caused this Bond to be signed in
its name and on its behalf by the Chairman and Clerk of its Board of Supervisors,
and it s corporate seal to be hereunto affixed, and coupons for interest, bearing
and authenticated by the facsimile signatures of said Ehairman and Clerk, to be
hereunto attached, all as of April l, 1962.
BY
COUNTY OF CHESTERFIELD
Chairman
Clerk
(Form of interest coupon payable on or before April l, 1967).
No.
A~ril,
On the first day of ~ctover, 19.. , the County of Chesterfield,
a political subdivision of the commonwealth of Virginia, will pay to bearer,
solely from those certain revenues referred to in the Bond hereinafter mentioned~
at the pricipal office of
~.. . ~in the ,
~zrgznia, or, az the option of the holder, at the principal office of
,in
the Borough of Manhattan, City and Sta~e of New York, the sum of
Dollars ($ ), in such coin
or currency of the United States of America as at the time of payment thereof
shall be legal tender for the payment of public and private de,ts, being six
months' interest t~en due on its Bond, dated
April 1, 1962 and numbered
Chairman, of the ~oard of Supervisors.
Clerk, of the Board of Supervisors
(Form of interest compon payable after April 1, 1967)
April
On the first day of October, 19 , unless the Bohd hereinafter
mentioned shall have been called for previous redemption and payment thereof made
or duly provided for, the County of Chesterfield, a political subdivision of the
Commonwealth of Virginia, will pay to bearer, solely from those certain reEenues
referred to in the Bond hereinafter mentioned, at the principal office of
, Virginia, or,
at the ~ption of the holder, at the prin=ipal office of
, in the borough of ~anhattan,
City and State of ltew York, the sum of
Dollars ($. ), in such coin or currency of the UJited States
of America as at the time of payment thereof shall be legal tender for t~e payment
of public and private debts, being 'six months' interest then due on its
Bond, dated April l, 1962, and
numb ered .
Chairman,of the Board of Supervisors
Clerk, of the Board of Supervisors
Section 31;.. After the execution and delivery of the Bonds, the County
may, if and to the extent from time to time permitted by law and to the extent
ermitted by the provisions of this Section, issue, from time to time, bonds
herein referred to as "Additional Bonds"), which shall be payable from the same
· funds as the Bon~s and shall be secured equally and ratably with the Bonds, by
a pledge of the et Revenues of the Water System. Such additional Bonds shall be
issued only upon the following conditions:
(1) The Additional Bonds shall be issued either (~) for the purpose of
constructing, acquiring, reconstructing, improving or extending the V~ater System
or {b) for the purpose of refunding any Bonds or Additional Bonds~
(2) The principal of the Additional Bonds shall be payable on April 1
in years as may be determined by the Board and the interest thereon shall be
payable semi-annually on April 1 and October 1.
(3) The County shall authoo£~e the Additional Bonds by resolution or
resolutions of the Board.
Section 315. The County shall not deliver any Additional Bonds unless,
theretofore or simultaneously therewith there shall have been delivered or paid
to the County Treasurer the following:
(a) A duly certified copy of the resolution or resolutions of the Board
authorizing the issuance of the Additional. Bonds, in accordance with the Resolut~en,
and
(b) A certificate signed by the Clerk of the Board showing the name or
names of the purchaser or purchasers of the Additional BoR4s and the price
required to be paid therefor by such purchaser or purchasers, and
(c) The amount required by such resolutien or resolutions to bepaid to
the County for application in accordance with such resolution or resolutions, and
{d} Certificates complying in all respects with the provisions of
Section 316, and
{e) A written opinion of Ccunsel( who may be Counsel to theCounty}
approving the fo~m of such resolutions and stating that their terms and provisions
comply with the requirements of law and of the Resolution, and that the
certificaDes and amounts of money so delivered or paid to the County constitute
compliance with the conditions hereinahove stated for delivery of such Additional
Bond s.
Section 316. The certificates referred to in paragraph (d) of Section
are the following:
(1) A Certificate by the County Treasurer Stating that he has examined
the books and records of the County and that from such examination he has
ascertained that all payments required by Section 606 (2) 66~'be ~aid l~n~-0~the
Debt Service Fund prior to the beginning of the month during which the Bond s
are issued~ have been made.
(2) A certificate by the County Treasurer stating that he has examined the
books and records ofthe County and that from such examination he has aecertained
the following amounts which shall be stated in such certificate: (a) the
aggregate amount which must be paid from the Revenue Fund for debt service
on the then Outstanding Bonds and on the Additional Bonds about to be issued in
the next succeeding Fiscal Year during the life of the Bonds, and (b) the aggregate
amount of the Net Revenues of the County for each of the last tWo completed
Fiscal Years, and {c) the sum obtained by dividing by two the aggregate of such Net
Revenues for such two Fiscal Years.
(3) A certificate by the County Treasurer showing thatthe sum obtained by
dividing by two the aggregate of the Net Revenues for the two pr?ceding Fiscal ·
Years, as shown in the certificate referred to in subdivision {2} of this Section~
will be at least i&(P~ of the.maximum aggregate amount which must be paid from
the Revenue Fund for debt service on the Outstanding Bonds and Additional Bonds in
the next succeeding Fiscal Year as shown in the certificate referred to in said
subdivision {2).
"~t Revenues" of any particular Fiscal Year, for the purposes of this Section,
means the amount by which the aggregate of the Revenues received by the County
in such Fiscal Year shall exceed the Operating Expenses of such Fiscal Year.
aRTICLE IV
REDEMPTION OF BONDS BEFORE MATURITY
Section 401. Each Bond payable on or after April l, 1968, may be redeemed
on April 1, 1967, or on any subsequent interest payment date prior to its stated
maturity, at the 'option of the County, at a redemption price Of the interest
accrued thereon to the date fixed for redemption and an amount equal to 104~ of
the principal amount of Bonds redeemed on or prior to April 1, 1972, and
of the principal amount of Bonds redeemed thereafter but on or before April 1
1977, and 102~ of the principal amount of Bonds redeemed thereafter but on or'
before April 1, 1982, an~ 101% of the principal ~mount of the Bonds redeemed
thereafter.
Section 402. The Bonds shall be callable as a whole, tf the County
shall elect to redeem less than all of the Outstandin~ Bonds the particular
bon~s to be redeemed shall be those which bear the highest identifying numbers.
Section 403. Whenever the County shall elect to redeem Bonds as provided
in the Resolution, notice ~ such redemption of Bonds, stating the redemption date
and identifying the Bonds by reference to their numbers and further stating that
on such redemption date there shall become due and payable upon each Bond so to be
redeemed, the principal thereof and the redemption premium, if any, together with
the interest accrued tothe redemption date and that from and after such date
interest thereon shall cease to accrue, shall be given by publication at least
once in a financial newspaper published in the Borough of Manhattan, City and
Stat~ ~f New York, not less than 30 days nor more than 60 days prior tO the
redemption date fixed in said no~ice.
Section 404. Notice cf r~demption having been Eiven by publication, the
Bonds so called for redemption shall become due and payable on the redemption date
so designated at the redemption price, and, upon presentation and surrender
thereof at the place of payment therein specified together with all appurtenant
Coupons maturing subsequent to the redemption date, such Bonds shall be paid at
the redemption price. All interest installments represented by coupons which shall
have matured on orprior to the redemption date shall .continue to be payable to the
bearers of such Coupons. If, on the redemption date, moneys for payment of the
redemption price of all the Bonds to be redeemed, shall be available therefor at
the place of payment therein specified and if notice of redemption shall have
been published as aforesaid, then from and ~fter the redemption date the Bonds
so called for redemption shall cease to bear interest and the Couponds for interest
appertaining thereto maturing subsequent to the redemption date shall ~e void
and said Bonds and Coupons shall no longer be considered as outstanding hereunder.
Section 405. All Bonds redeemed prior to maturity by the County under the
provisions of the Resolution, together with the unmatured coupons, if any, shall be
cancelled forthwith.
Section 406. The option of the County to redeem any Bonds shall be
exercised by resolution duly adopted by the Board of Supervi~rs of the County.
ARTICLE V
BOND PROCEEDS AND CONSTRUCTION FUND
Section 501. There is hereby established and created a special fund, to be
known as the "Construction Fund", which shall be held by the County. The moneys
in the Corotruction Fund shall be held by the County in trust and applied (in
accordance with and subject to the limitations of this Article) to the payment of
the cost of the Water System Improvements and such moneys are hereby pledged, ~
pending application to such payment, for the security of the payment of the
principal of and interest on the Bond~ and shall at all times be subject to the
lien of such pledge.
Section 502. All moneys received by the County in payment for the Water
Revenue Bonds including the proportionate share of the premium received upon the
sale thereof, other than accrued interest and such moneys' as are required by the
Resolution %o be applied %o the payment of the Outstanding Bonds, shall be
deposited forthwith in the Construction Fund. Such moneys representing accrued
interest shall be paid into the Debt Service Fund. Such moneys representing
moneys received from the sale of Water Revenue Refunding Bonds including a pro-
portionate share of the premium shall be applied to the payment of the Outstanding
Bonds. Any funds left in the ConstruCtion Fund under the indenture covering
the Outstanding Bonds shall be paid into the Construction Fund hereinbefore
established.
Section 503. The County shall make payment of the cost of the Water
System Improvements as in this Article provided. All payments from the Construction
Fund shall be subject to the provisions and restrictions set forth in this Article
and the County shall not cause or peri, it to be paid from the Construction Fund
any sums except in accordance with such provisions and restrictions.
Section 50~. The cost of the Water System ImproVements which may be
financed from the Construction Fund shall include but not be limited to the
following items of cost:
(a) The coat and expense of issuing the Bonds and legal expenses in
connection ~herewith and the premiums on insurance (if any) in connection with
the construction of the Water System Improvements, during the construction of
such Water System Improvement s;
(b) Fees and expenses for studies, surveys and estimates, engineering,
and for preparation of plans and specifications and supervising contruction of
the Water System Improvements, as well as for the performance of any other duties
of engineers in relation to the construction or acquisition of the Water Syste~~
Improvements as requied by the Resolution;
(c) The cost and expense of acquiring by purchase or condemnation
suchlands, property rights, rights,of-way, easements and other interest in lands
as may be deemed necessary or convenient for the construction of the Water System
Improvements, and options and partial payments thereupon, and the amount of any
damage incident to or consequent upon such acquisition;
(d) Payments made for labor and to contractors, builders and materialmen
in connection with such construction of the Water System Improvements, payments
made for machinery, materials, and other equipment, and payme~s made for the
restoration of property damaged or destroyed in connection with such construction; and
(e) Amounts heretofore advanced by the County and expended for any of the
foregoing purposes.
Section 505. The County shall, during and upon completion of construction
of the Water System Improvements, make payments from the ~Construction Fund, in
the amounts, at the times, in the manner, and on the other terms and conditions
set forth in this Section 505. Before any such payment shall be made, the
County shall file with the County Treasurer:
(b)
(c)
(a) Its requisition therefor, signed by its Chairman, stating in
respect of each payment to be made:
(1) the name of theperson, firm or corporation to whom payment is due,
(2) the amount to be paid, and
(3) in reasonable detail the purpose for which the obligation was
incurred.
Its certificate attached to the requisition, signed by its Chairman,
certifying:
(1) that obli~.ations in the stated amounts have been incurred by the
County in or about the construction of the Water System Improvements,
and that each item thereof is a proper charge against the Construction
Fund and is a proper cost of the ~Tater System Improvements as
provided in Section 50& and has not been paid.
In the mase of payments made for labor or to contractors, builders
or materialmen in connection with the construction of such W~ter
System Improvements Dr payments made for machinery, materials, or
equipment or for the restoration of property damaged or destroyed
~n connection with such construction, a certificate, signed by the
engineer employed by the County to supervise such construction and
attached to such requisition, certifying that each such o~ligation
has been properly incurred, and that in solar as such obligation,
was incurred for work, materials, supplies or equipment, such work
was actually performed or such materials, supplies or equipment
were actually furnished or installed in or shout the construction of
the Water System Improvements or such materials, supplies or equip-
ment were fabricated for the construction of the )Jater System
Im pro ye merit s.
Upon receipt of each suchrequisition and accompanying certificates the County
Treasurer shall cause such obligations set forth in such r~quisition to be paid.
Each such obligation shall be paid by check, signed by an authorized officer
of the County, to the order of the person named in and in accordance with the
requisition. If for any reason the County should decide prior to the payment
of any item in a requisition not to pay such item and if no check drawn to pay such
item and if no check drawn to pay such item is then outstanding and unpaid, the
Country Treasurer shall transfer the amount of such item to the Construction Fund.
~ection 506. If any requisition filed with the County Treasurer in accordance
with Section 505 contains any item for the payment of the cost and expense of
acquisition of any lands, easements, or rights or interest in or relating to lands,
there shall be attached to such requisition, before any Dransfer or payment with
respect to such item shall be made, in addition to the certificates mentioned in
said Section 50):
(a) A certificate by the Engineer employed by the County to supervise
the construction of the Water System Improvements to the effect thRt
such lands, easements, rights or interests are being acquired and are
necessary or useful and convenient for the construction of the Water
System Improvements, and
{b) A written opinion of the Counsel for the County to the effect that the
County has authority under the provisions of the law to acquire such
lands, easements, rights or interests, and that the County will have upon
the payment of such item title in fee simple to, or perpetual easements
for the purposes of the 'Nater System over and through, such lands,
subject to no lien, charge or encumbrance thereon or affecting the
title thereto except such as will not under any circumstances cause the
possession and use of the ¥,roperty by the County for its purposes to
be distrubed, or if such payment be a part payment for any such purpose~
the written approal signed by such Counsel for such payment is proper,
and of the acquisition of such lesser right or interest as sufficient,
for the purposes of the County.
In making any payment requested in any such requisition, the County Treasurer
may rely upon such certificate or written opinion.
Section 507. Any moneys in the Construction Fund shall be invested,
when authorized by resolution of the Board directing such investment, in such
direct obligations of the United States of America as the County maY approve,
provided the maturity of every such obligation shall not be later than 18 months
from the date of such investment.
ARTICLE VI
REVENUES AND FUNDS AND THE APPLICATION THEREOF
Section 601. The Water System shall be operated upon a Fiscal Year basis
and each yearly period beginning on July i in each year shall be a Fiscal Year.
Section 602. The County covenants, and agrees that, prior to the Inssuance
Date, the Board of Supervisors will, by resolution duly adopted, fix and maintain
at all times thereafter such rents, rates, fees or other charges (herein referred
to as "Service Charges") for water furnished by or for the use of or for services
f. urnished by the l~ater System as shall be sufficient to produce or yield
Revenues in each Fiscal Year in the following amounts:
(a) In the Fiscal Year in which the Issuance Date shall occur, an
amount adequate for the 'payment ofthe expenses (herein referred
to as "Operating Expenses") necessary for the administration and
operation of the Water System and for the preservation of the
~'Jater System in good repair and working order, which shall accrue
and become payable after the Issuance Date and prior to the end
of such Fiscal Year, and in each succeeding Fiscal Year an~ amount
adequate to pay such Operating Expenses as they shall accrue and be
payable during ~uch~.~iscal Year, and
(b} In the Fisrzal Year in which the Issuance Date shall occur, an
additional amount equal to 1~0% of the amount of the debt service
requirements attributable to such portion of such Fiscal Year,
and in each succeeding Fiscal Year an additional amount equal
to 1~O% of the average of the next preceding two Fiscal Years
debt service requirements to pay the principal' of and interest on
any Bonds and Additiona% Bonds, if any.
The County shall from time to time revise such rents, rates, fees or other
charges so that they will at all times produce~in each Fiscal Year the revenues
required for such purposes in sufh Fiscal Year.
Section 603. The County hereby establishes and creates the following
special funds to be held by the County: (a) Revenue Fund, (b) Operating Fund,
{c) Debt Service Fund, and (d} Improvement, Replacement and Extension Fund.
Section 6Oh. All Revenues, as collected by or on behalf of the County,
shall, so far as may be practicable, be deposited daily in a bank in Virginia,
designated by the Board, in the Revenue Fund.
Section 605. Subject only to the right of the County to cause amounts to
be withdrawn from the Revenue Fund and paid into the Operating Fund or the
Improvement, Replacemant and Extension Fund,under the provisions of Section 606
the Revenues, and all moneys and securities paid or to be paid to or held '
or to be held by the County under the Resolution { in addition t~o the moneys
and securities in the Construction Fund pledge~ as provided in ~ectio~ 501},
are hereby pledged to secure the 'psyment of the principal of, redemption pr~mium,
if any, and interest on Bonds and Additional Bonds, if any, and this pledge shall be
valid and binding from and after the date of the first delivery of any Bonds, and
the Revenues, as received by the County, and other moneys hereby pledged shall
immediately be subject to the lien of this pledge without any physical delivery
thereof or further act, and the lien of this pledge and the obligation to perform
the contractual provisions hereDy made shall have priority over any or all other
obligations and liabilities of the County, and the lien of this pledge shall ~e
valid and binding as against all parties having claims of any kind in tort, contract
or otherwise against the County irrespective of whether such parties have notice
thereof.
Section 606. The County shall, at the times herein indicated, withdraw
from the Revenue Fund ~he moneys necessary to make, and shall forthwith make, the
following payments:
As of the first day of each month beginning after the Issuance Date,
but not later than the tenth day of such month, into and to be held in
the Operating Fund, such sum, if an~;~ as r~ay be needed to increase
the amount in the Operating Fund so that it equals the sum of the
following amounts: ~'a) the amount of the Operating Expenses for the
current month and for the next succeeding two months as provided
for in the Annual Budget or Budgets for the Fiscal Year or Fiscal
Years of which such months may be a part and (b) the aggregate
amount of all checks drawn upon the Operating Fund to pay Operating
Expenses not theretofore presented for payment or paid.
(2)
As of the first day of each month be!]inning after the Issuance Date,
but not later than the t~nth day of such month, into the Debt
Service Fund the amount, if any, required to increase the amount
in said Fund so 'that it equals the amount of unpaid interest on the
Outstanding Bonds ( including Additional Bonds, if any) which has or
will become due and payable on or prior to the first days of April
and October, next ensuing., plus the amount of all unpaid principal
o£ Outstanding Bonds ( including Additional Bonds, if any) which
has or will becom~ due and payable on or prior to the first day of
April next ensuing.
As of the first day of each month beginning after the Issuance Date,
but not later than the tenth day of such month, into the Improvement,
Replacement and Extension Fund, all moneys, if any, then remaining
in the Revenue Fund after making {2) the payments required to be
paid into the Operating Fund under Subdivision (1) above, and (b)
the payments required to be paid into the Debt Service Fund, as
required by Subdivision (2) above.
Section 607. (1) The County shall from time to time apply moneys held
in the Operating Fund to the payment of Operating Expenses in accordance with
the Annual Budgets and in the amounts not exceeding the unencumbered balance of
the moneys provided therefor in the Annual Budgets or any amendment thereof or
supplemental thereto. All moneys held in said fund shall be held in trust for
the payment of such Operating Expenses. No amounts shall be withdrawn or paid out
of the Operating Fund except as in this Section 607 provided.
(2) Any moneys in the Operating Fund may be invested by the County in such
direct obligations of the United States of America which shall be subject to
redemption at the option~of the holder thereof, or which shall mature, within
ninety days after the date of the purchase thereof as may be authorized by the Act
and as the County may aPprove.
Section 608. The County shall withdraw from the Debt Service Fund,
prior t6 each intere~ payment date beginning with the interest payment date next
ensuing after the Issuance Date, an amount equal to the aggregate amount of the
interest payable on said date with respect to theBonds and Additional Bonds, if
any, and shall deposit the same with the Virginia Paying Agent for application to
the payment of such interest when due. The County shall withdraw from the Debt
Service Fund, prior to each date on which any of the Bonds including Additional
Bonds mature, an amount equal to the aggregate amount of such Bonds payable on said
date, and deposit the same with the Virginia Paying Agent to apply the same to
the paMment of the principal of such ~onds. Moneys deposited in the Debt Service
Fund shall be held in trust for such ~purpose, and no amount shall be withdrawn
from or paid out of the Debt Service Fund except as in this Section provided.
Section 609. (1). If at any time there shall not be a sufficient amount
in either the Debt Service Fund to provide for any withdrawal therefrom required
under Section 608, the County shall withdraw from the Improvement , Replacement and
Extension Fund and pay into the Debt Service Fund the amount sufficient to make up
such deficiency therein.
(2) Whenever the moneys held in the Debt Service Fund shall
equal the amount necessary to pay all principal and interest with respect to
Outstanding Bonds and Additional Bon~, if any, as such principal and interest
shall become due and payable, the County shall not be required to make any further
payments into such fund.
Section 610. {1} The County shall, from time to time, apply moneys
held in the Improvement, Replacement and Extension Fund to reasonable and necessary
expenses with respect to the Water System for major repairs, replacemsnts or
maintenance items of a type not recurring annually or at shorter intervals, or for
reconstruction of parts of the Water System and the construction of additions to
or extensions of the Water System. If, at any time, the amount available in
the t{evenue Fund is or has been insufficient to make the payments into the
Operating Fund and the Debt Service Fund, the County shall withdraw from the
Improvement, Replacement and Extension Fund, to the extent that moneys therein
are available, and pay into the Revenue Fund, such amount as is required to remedy
such deficiencies.
(2) Any moneys in the Improvement, Replacement and Extension Fund may be
invested by the County in such direzt obligations of the United States of America
as may be authorized by law and as the County may approve.
(3) No amount shall be withdrawn from or paid out of the Improvement, Replace-
ment and Extension Fund except as in this Section provided.
Section 611. If the County desires it may, with funds in the Improvement,
Replacement and Extension Fund, either (1) after advertising for tenders of Bonds
in such manner as the County may deem most likely to secure competitive proposals,
purcha se at the mosb advantageous price which must, however, be less than the
price at vhich they could be redeemed pursuant to Article IV, or (2) call for
redemption on the earliest payment date which shall occur more than 45 days there-
after, in accordancewith provisions of Article IV, an amount of Bonds, if any,
subject to redemption on such interest payment date. All Bonds purchased or
redeemed as provided ~n this Section, together with the unmatured coupons, if any,
representing interest payable thereon, shall be cremated by the County and the
County shall cause a certificate robe made showing the cremation of such Bonds.
Section 612. (1) The County covenants and asrees thab, for the purpose of
providing for, regulating and controlling the disbursement of moneys for Operating
Expenses, it will operate witCh, in the budget adopted for the current Fiscal Year
for the period beginning with the Issuance Date and ending on the day preceding
the beginning of the next Fiscal Year, and that it will, prior to the first
day of each Fiscal Year commencing after such Issuance Date. adopt a budget for
such Fiscal Year. Each such budge~ is referred to in this Resolution as "Annual
Budget" .
{2} Each Annual Budget shall be prepared in such manner as to show the
amoUnts to be expended frcm the Operating Fund for Operating Expenses and the
purposes for which such amounts shall be .expended pursuant to Section 607,
· during the Fiscal.Year for which such Annual Budget is adopted. The Annual
Budget shall show the amounts estimated to be required for such purposes during
each calendar month of the Fiscal Year for which the budget is adopted.
(3) Not less than 45 days prior to the first day of any Fiscal Year
beginning after the Issuance Date, the County shall prepare and file with its
Clerk a preliminary budget which shall, in form and content, comply with the
requirements prescribed for an Annual Budget by subdivision (2). Not less than
15 ~ays before the beginning of such Fiscal Year the County shall hold a public
hearing at which any holder of Bonds may appear in person or by Agent or Attorney
and present any objections he may"have to the final adoption of the Annual
Budget for such Fiscal Year. Notice of the time and place of such hearing shall
be published at least once in a newspaper of general circulation within the
County at least 10 days before such hearing, and the County shall at least 10 days
before such hearing cause a copy of such notice to be mailed to every holder of
Bonds who within two years prior to the date of such notice shall Nave filed
with the County a statement of his name and address together with a request for
copi'es of such notices.
{~) Until an Annual Budget has been adopted for a Fiscal Year,the
preliminary budget for such Fiscal Year, if it has been prepared, or otherwise
the last previously adopted AnnualBu~get, shall be deemed to provide for, and
regulate and control expenditures ~uring such Fiscal Year from the Operating
Fund for Operating Expenses, as provided in Section 607.
(5) The County may at any time during any Fiscal Year amend the Annual
Budget forsuch Fiscsl Year. A copy of the Annual Budget adopted by the County
for each fiscal year shall be filed with the Managers of the Underwriters of the
Bonds, hereinafter mentioned, prior to the beginning of such Fiscal Year. A
copy of any amendment to an Annual Budget shall be filed with the said Managers
within ten days after it's adoption.
ARTICLE VII.
PAETICULAR COVENANTS OF flEE COUNTY
Section 701. The County hereby particularly covenants and agreed with
the holders of the Bonds and coupons, and makes provisions which shall be a part
of its contract with such holders, to the effect and with the purpose set forth
in the following provisions of this Article.
Section 702. The County shall duly and punctually'pay, or cause to be
paid, the principal of allBonds issued under the Resolution, and the interest
thereon, on the dates, at the place and in the manner set forth in such Bonds
and in the coupons thereto appertaining, and it shall faithfully do and perform
and at all times fully observe any and all cowema-~ts, undertakings, stipulations
and provisions contained herein or in the Bonds at any time outstanding hereunder.
Except as in the Resolution otherwise provided, such principal and interest are
payable solely from the Revenues derived from the Water System, which Revenues
are hereby pledged to the payment thereof in themanner and to the extent herein-
above particularly specified.
Section 703. The County shall, with all practicable dispatch and in a
sound and economical manner consistent in all respects with the pro visions of
Sect~ion 2C3, complete the construction of the Water System Improvements, and
do all acts and things necessary and reasonably possible to entitle it to receive
and collect Service Charges with respect to the completed ~;;ater System at the
Section 70~. The County shall-at all times operate the Water System in
a proper, sound and economical manner, and shall maintain,preserve and keep the
Water System, or cause the same to be maintained, preserved and kept, in good
repair, working order an~ condition, and shall from time to time make or cause
to be made, all necessary and proper repairs, replacements and renewals so that
at all times the operation of the ~,~ater System may be properly and advantageously
conducted.
Section 705. The County shall establish and enforce reaso~mble rules and
regulations §overning the operation, use and services of the Water System. All
compensation, salaries, fees and wages paid by it in connection with the maintenane,
repair and operation of the Water System shall bereasonable and no more than
would be paid by other corporations, municipalities or public bodies for similar
services. The County shall observe and perform all of the terms and conditions
contained in th~ Act, and shall comply with all valid acts, rules, regulations,
orders and directions of any lesiglative, executive, administrative or judicial body
applicable to the Water System or the County.
Section 706. The County shall pay all taxes and assessments or other
municipal or government char~es, if any, lawfully levied or assessed upon or in
respect to the Water System, or upon any part thereof or upon any revenue therefrom,
when the same shall become due, and shall duly observe and comply with all valid
requirements of any municipal or governmental authority relative to any part of the
Water System, and shall not create or suffer to be created any lien or charge upon
the Water System or any part thereof or upon the Revenues therefrom, except the pledge
and lien created by the Resolution for the payment of the principal of, redemption
premium, if any, and interest on the Bonds. The County shall pay or cause to be
discharged, or will make adequate provision to satisfy and discharge, within 60
days after the same shall accrue, all lawful claims and demands for la0or, materials,
supplies or other objects which, if unpaid, might by law become a lien upon the
Water System or any part thereof or the revenues therefrom; provided, however, that
-nothing in this Section 706 contained shall require the County to pay or cause to
be 'discharged, or make provision for, any such lien or charge, so long as the
validity thereof shall be contested in good faith and by appropriate legal
proceedings.
Section 707. The County shall not incur Operating Expenses in any year
in excess of the reasonable and necessary amount thereof, and shall not expend any
amount or incur any indebtedness in any Fiscal .Year for maintenance, repair and
operation in excess of the amounts provided for Operating Expenses in the Annual
Budget adopted for such Fiscal Year. Nothing in this Section 707 contained shall
limit the amount which the County may expend for Operating Expenses in any Fiscal
Year provided any amounts expended therefor in excess of the Annual Budget for said
Fiscal Year shall be received by the County from some source rather than the Revenues
and the County shall not make or receive any reimbursement therefor out of Revenues.
Section 708. No part of the Water System shall be sold, leased, mortgaged,
pledg.ed,encumbered or otherwise disposed of; provided, however, that the County
may sell, exchange or lease at any time to time any property or facilities consti-
tuting part of the Water System and not useful in the construction, reconstruction
or operation thereof, but any proceeds of any such sale or exchange received and not
used to replace such property so sold or exchanged shall be applied by it to the
redemption and retirement of Bonds, and any proceeds o~C any such lease received
shall be deposited by the County as Revenues.
Section 709. The County shall not issue amy Bonds orother evidences of
indebtedness, other than the Bonds (including Additional Bonds), secured by a
pledge of the Revenues (including amounts which the County may thereafter be
entitled to withdraw from the Revenue Fund for Operating Expenses) and shall not
create or cause to be created any lien or charge on such Revenues; provided, howev.er,
that neither this Section nor any other provision of the Resolution shall prevent
the County from issuing Bonds or notes for the purposes of the County payable out
of, or secured by a pledge of, Revenues to be derived on and after such date as
the pledge of the Revenues provided in the Resolution shall be discharged and
satisfied as provided in ~ection 802, or from issuing Additional Bonds in accordance
with the Resolution subject to the terms and conditions of Section 3lg.
Section 710. The County shall not directly or indirectly extend or assent
to the extension of the maturity of any of the Oonds or the time ofpayment of any
of the coupons or claims for interest by the purchase or funding of such Bonds,
coupons or claims for interest or b~ any other arrangement, and in case the
maturity of any of the Bonds or the time of payment of any such coupons or claims
for interest shall be extended, such Bonds, coupons or claims for interest shall
not be entitled in case of any default hereunder to the benefit of the Resolution,
or to any payment out of any assets of the County or the funds (except funds held
in trust for the payment of particular Bonds, coupons or claims for interest
pursuant to the Resolution) held by the County under this Resolution except
subject to the prior payment of the principal of all Bonds issued and outstanding
the maturity of which has not been extended and of such portion of the accrued
interest on the Bonds as shall not be represented by such extended coupons or
claims for interest.
Section 711. The County shall keep proper books of record and account
(separate from all other records and accounts) in which complete and correct
entries shall be made of its transactions relating to the Water System or any
part therefor, and which, together with all other books and papers of the County,
shall at all reasonable times be subject to the inspection of the managers of the
syndicate of the underwriters of the bonds (F.W.Craigie & Co. of Richmond,Virginia,
and Phelps, Femn & Co.,of New York City) or the holder or holders of not less tha~
5% in principal amount of the Bonds then outstandings or their representatives
duly authorized in writing. The Bounty shall cause its books and accounts to
be audited annually and annually within three months after the close of each
Fiscal Year cop].es of the reports of such audits so made shall be furnished to the
County, ~ncluding statements in reasonable detail, accompanied by a certificate
showing the financial condition, of Revenues and Operating Expenses, of all funds
held by the County and the security held therefor, and of the number, amount and
classification of users and services of the Water System, and of the Service
Charges and Revenues collected in each classification. The County shall cause a
copy of every such report of audit to be mailed to said managers of the syndicate
of the underwriters of the bonds and to e~ery Bondholder who within two years
prior to the date of such report shall have filed with the County a statement of his
name and address together with a request for copies of such reports.
Section 712. At any and all times the County shall, so far asit may be
authorized by law, pass, make, do execute, acknowledge and deliver all and every
such further resolutions, acts, deeds, conveyances, assignments, transfers and
assurances as may be necessary or desirable for the better assuring, conveying,
granting, assigning and confirming all and singular the rights, Revenues and other
funds hereby pledged or assigned, or intended so to be, or which the County may
hereafter become bound to pledge or assign, or as may be reasonable and required to
carry out the purposes of the Resolution and comply with the Act. The County
shall at all times, to the extent permitted by law, defend, preserve and protect
the pledge of the Revenues and other funds pledged hereunder and all the rights of
the Bondholders hereunder against all claims and demands of all persons whomesoever.
Section 713. The County shall make no contract requiring payment for labor
or to contractors, builders or materialmen on account of the construction or re-
construction of any part of the ~Nater System, unless such part is located on lands
to which title or over which perpetual easement, in either case sufficient for the
purposes of the County, is owned or can be acquired by the County, or unless' such
part is lawfully located in a public street or highway or is a main, conduit, pipe
line, main connection or outfall located on land in which a right or interest less
than a fee simple or perpetual easement has been acquired and such lesser right or
interest has been approved by written opinion of counsel to the County as sufficient
for the purposes of the County.
Section 714. The County shall at all times maintain with responsible
insurers ail such insurance as is customarily maintained with respect to water
systems of like character against loss of or damage to the Water System and against
public and other liability to the extent reasonably necessary to protect the
interests of the County and the Bondholders. If any useful par.~ of the Water
System shall be damaged or destroyed, the ~ounty shall, as expeditiously as may be
possible, commence and diligently prosecute the repair or replacement of the
damaged properDy so as to restore the same to use. The proceeds of any such
insurance shall be payable to the County and { except for proceeds of aseand
occupancy insurance) shall be applied to the necessary costs involved in such
repair and replacement and, to the extent not so applied, shall together with
proceeds of any such use and occupancy insurance be deposited by the County as
Revenues. In the event that the costs of such repair'and replacement of the
damaged property exceed ~h~ proceeds of such insurance, funds in the Improvement,
Replacement and Extension Fund shall be used to the extent necessary for such
purposes.
Section 715. Upon the date of issuamce of the Bonds, all conditions,
acts and things required by the Constitution or statutes of the Commonwealth of
Virginia or the Resolution to exist, to have happened and to have been performed
precedent to or in the issuance of the Bonds shall exist, have happened, and ha~e
been performed, and the Bonds, together with all othe~ indebtedness of the ~ounty,
shall be within every debt and other limit prescribed by said Constitution or
statutes.
Section 716. The County shall not issue any Additional Bonds except for one
or more of the purposes described in Section 314 and in accordance with Article
III hereof.
Section 717. Nothing contained in the Resolution shall be construed to
require the County tomake any payments except from the Revenues of the Water Sy~stem
or from the moneys raised by the issuance of the Bonds.
Section 718. So long as the Bonds, or any of them, are outstanding, the
County shall not permit connections with or the use of the ~Vater System, or furnish
any services afforded by the Water System, ~bhout making a charge therefor.
Section 719. The County shall continue to employ engineers whose duties
shall be, among such other duties as may be imposed upon them by the County or by
the Resolution, to supervise the construction of the Water System Improvements
and to submit to the County advices and recommendations as to the proper maintenance,
repair and operation of the Water. System. No engineer or engineering firm shall
be employed as engineers unless the same be an individual engineer or engineering
firm of recognized standing and favorable repute for skill in the construction and
operation of water supply systems.
aRTICLE V III
~ISCELLaNEOUS
Section 801. The County shall designate by resolution of the board a
depository in whi6h shall be deposited all of the Revenues and ~he County shall
keep the Funds herein provided in separate accounts in said depository. Said
depository shall be a bank or trust company authorized to do business in the
Commonwealth of Virginia. The County s~all also designate by resolution of the
Board the paying agent of both principal of and interest on the Bonds in the
Commonwealth of Virginia and in the City of New Y~rk in the state of New York.
Section 802. (1). If the County shall pay or cause to be paid to the
holders of the Bonds and coupons, the principa~ and interest and redemption
premium, if any, to become due thereon, at the times and in the manner stipulated
therein and in the Resolutions, then~the. ~ledge .of the R~ev~n~ues~and~ot~erlmoneys
and securities hereby pledgee and a±± o~ner right~ gran~em ner~.oy onaii ce
discharged and satisfied. In such event, the County may retail all moneys or
securities held by it pursuant to the Resolution which are not required for the
payment or redemption of Bonds or coupons not theretofore surrendered for such
payment or redemption.
(2) Bonds or coupons for the payment or redemption of which moneys shall then
be held oy the County, whether at or prior to the maturity or the redemption date
of such Oonds, shall be deemed to have been paid within the meaning of this
Section; provided, however, that if any such Bonds are to be redeemed prior to the
maturity thereof, the County sh~tl have taken all action necessary to redeem such
Bonds and notice of such Bonds~and notice~of such redemption shall have been duly
given or provision shall have been made for the giving of such notice; and
provided further that, if thematurity orredemption date of any such Bonds shall not
then have arrived, provision shall have been made by the County for the payment to
the holders of any such Bonds and coupons, upon surrender thereof, whether or not
prior to the maturity of redemption date thereof, of the full amount to which they
would be entitled by way of principal, redemption premium and interest to the date
of such maturity or redemption, and provision shall h~ve been made by the County for
the publication, ay least twice, at an interval of not less than 7 days between
publications, in a newspaper printed in the English language and customarily
published on eac~ business day and of general circulation in the Borough of
]'~anhatt~n, City and State of New York, of a notice to the holders of such Bonds
and coupons that such moneys are so available for such payment.
Section 803. Notwithstanding any other~ provisions of the Resolution other
than those contained in Section 710, in the event that the funds held by the
County shall be insufficient for the payment of interest and principal then due
o~ the Bonds, such funds (other than funds held for the payment or redemption of
particular Bonds or coupons which have theretofore become due at maturity or
otherwise) an~ any other moneys received or collected by the County, shall be
applied as follows:
First: To the payment to'theperson~ entitled thereto of all installments
of interest ~hen due in the order of the maturity of the installments of such
interest and, if the amount availabl~ shall not be sufficient to pay in full any
installment, then to ~he payment ratably, according to the amounts due on such
installment~ to ~he persons entitled thereto, without a~y discrimination or
preference, excepv as to the difference, if any, in the respective rates of interest
specified in the Bonds or coupons; and
Second: To the ?~yment to the persons entitled thereto of the un~aid
principal of any Bonds which shall ha~e become due, whe~ther at maturi~)? or'by
call for redemption, in the order of their d~e dates and, if the amount avails'ale
shall not be sufficient ~o pay in full ali the Bonds due on any date, then to
the payment ratably, according to the amounts of princi.pal due on such dates, to
the persons entitled thereto, without any discrimination or Dreference.
Section 80~ Obligations purchased as a~ investment of moneys in any
fund esta~.!ished un~sr the ~eselution shall be deemed at all times to be ~ p~rt
.of such fun~, ~d ~ny ±os~ resulting on the sale thereof shall be charge~ to such
fund. In computing the amount in any such fund for any purpose hereunder, such
obligations shall be valu~ at the lower cost or market~. The County shall sell
a~ the best price obtainable any obligations so purchased whenever it shall be
necessary so to do in order to provide money to make any withdrawal or payment
from such fund, and shall not be liable or responsible for any loss resulting
from any such investment made in accordance with the Resolution. For the purposes
of any suchinvestment, obligations of the United States of America shall be deemed
to mature at the earliest date on which the United States of America, on demand~
obligatad to pay a fixed sum in discharge of the whole of such obligations.
Section ~0~. Nothing in the Resolution expressed or implied is intended
or shall be construed to confer upon, or to give to, any person or corporation,
other than the County, and the holders of the Bonds and the coupons thereunto
appertaining, if any, any right, remedy or claim under or by reason of the
Resolution or any covenant, condition or stipulation hereof; and all the covenants~
stipulations, promises and agreements in the Resolution contained by and on behalf
of the County shall be for the sole and exclmsive benefit of the County and the
holders of ths Bonds and the coupons thereunto appertaining, if any~
Section 806. ~r~enever in the Resolution the County is named or
referred to, it shall be deemed to include its successors and assigns and all the
covenants and agreements in the Resolution contained b~ or on behalf of the
County shall bind an~ insure to the benefit of its successors and assigns whether
so expressed or not.
Section 807. No recourse shall be had for the payment of the principal
of or the interest on the Bonds or for any claim based thereon or on the Resolution
against any member of the Board or officer of the County or any person executing
the Bonds.
Section~808. If any one or more of the covenants or agreements
provided in the Resolutio~ on the part of the County to be ~erformed should be
contrary to law, ~he~ such covenant or covenants, agreement or agreements, shall
be null and void an~ shall be deemed separable from the remaining covenants
and agreements, and shall in no way effact the validit~ of the other provisions
of the Resolution or of ~he Bonds.
Section 809. This Resolution shall take effect immediately.
On motion of Mt. Hague, seconded by Mr. Britton, it is resolved that the followin~
standard water contracts be and they hereby are approved:
Ebbw Vale Hills
Southhaven, Section
~2~ O3. O0
618.75
On motion of Mr. Britton, seconded by Mr.Hague, it is resolved that the sewer
connection charges be reduced from ~325.00 to ~300o00 for those connections on
the Powhite Creek sewage lagoon, in order to conform to the GeneralCounty policy.
On motion of Mr. Hague, seconded by Mr.Britton, it is resolved that the following
be adopted as the County's Sewer Extension and Connection Policy:
SEWER EXTE~SION & CO~N~ CTION POLICY
March22, 1962
Within a subdivision in which the subdivider has installed sewer lines~
the connection charge will be ~300.00 on each single unit with a one inch ~ater
meter or less. When the developer makes an extension outside the subdivision or has
other off-site expenses or installs a sewer line larger than is required for his
development, within his subdivision, the County will reimburse to the developer
from the connection charges received from connections within his su~.~division, an
amount not no exceed the actual off-site expenses or the cost of that portion of
oversize maims not needed in the subdivision.
On motion of Mr. Britton, seconded by Mr. Hague, it is resolved that the following
street names be and they hereby are changed;
Route ~85~ be named Twilight Lane
Route #887 be named Wadsworth Drive
Old Route 360 be changed to Lockhart Road
Good e's Bric~e Road, that portion from Rt. 1668 to Hull Street
Road be changed to Walmsley Blvd.
Kingman Road be extended 400 feet east and Stonehill Circle
be chan~ed to Drive.
Route ~91 be named Ladino Lane.
Adkins Road also known as Arch Road, be changed to Dakins Drive.
Route 612 be named Gregory Pond Road
Beach Road (Rt.7~O) be changed to Berrand Road.
On motion of Mr. Hague, seconded by ~,lr.Britton, it is resolved that this meeting
be adjourned to April 11, 1962, at 9:00 a.m.
/~ - E~ecutive Secretary