HomeMy WebLinkAboutOrdinance 005-20RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
(ordinance No.
05-20 Passed
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF
BONDS IN THE MAXIMUM PRINCIPAL AMOUNT OF $6,000,000
FOR THE PURPOSE OF PAYING THE COSTS OF IMPROVING THE
MUNICIPAL SANITARY SEWER SYSTEM BY EXTENDING
CERTAIN SEWER LINES, REPAIRING AND LINING CERTAIN
EXISTING SEWER LINES, AND INSTALLING A NEW PUMP
STATION AND FORCE MAIN, TOGETHER WITH ALL INCIDENTAL
WORK AND RELATED APPURTENANCES THERETO.
WHEREAS, this City Council has requested that the Director of Finance, as
fiscal officer of this City, certify the estimated life or period of usefulness of the
Improvement described in Section 2 and the maximum maturity of the Bonds
described in Section 2; and
WHEREAS, the Director of Finance has certified to this City Council that the
estimated life or period of usefulness of the Improvement is at least five (5) years and
that the maximum maturity of the Bonds is at least twenty (20) years;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
State of Ohio, of the elected members concurring, that:
Section 1. Definitions and Interpretation. In addition to the words and terms
elsewhere defined in this Ordinance, unless the context or use clearly indicates another
or different meaning or intent:
"Authorized Denominations" means the denomination of $5,,000 or any integral
multiple in excess thereof.
"Bond Proceedings"' means, collectively, this Ordinance, the Certificate of
Award, the Continuing Disclosure Agreement, the Registrar Agreement and such other
proceedings of the City, including the Bonds, that provide collectively for, among other
things, the rights of holders and beneficial owners of the Bonds.
"Bond Register" means all books and records necessary for the registration,
exchange and transfer of Bonds as provided in Section 5.
"Bond Registrar" means a bank or trust company authorized to do business in
the State of Ohio and designated by the Director of Finance in the Certificate of Award
pursuant to Section 4 as the initial authenticating agent, bond registrar, transfer agent
and paying agent for the Bonds under the Registrar Agreement and until a successor
Bond Registrar shall have become such pursuant to the provisions of the Registrar
Agreement and, thereafter, "Bond Registrar' shall mean the successor Bond Registrar.
"BondsY` means, collectively, the Serial Bonds and the Term Bonds, each as is
designated as such in the Certificate of Award.
"Book entry form" or "book entry system" means a form or system under which
(a) the ownership of beneficial interests in the Bonds and the principal of and interest
and any premium on the Bonds may be transferred only through a book entry, and (b)
physical Bond certificates in fully registered form are issued by the City and payable
only to a Depository or its nominee as registered owner, with the certificates deposited
with and "immobilized" in the custody of the Depository or its designated agent for
that purpose. The book entry maintained by others than the City is the record that
identifies the owners of beneficial interests in the Bonds and that principal and
interest.
"Certificate of Award" means the certificate authorized by Section 6, to be
executed by the Director of Finance, setting forth and determining those terms or
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
(ordinance No.
05-20
Passepage 2 of 14
other matters pertaining to the Bonds and their issuance, sale and delivery as this
Ordinance requires or authorizes to be set forth or determined therein.
"City Manage" means the City Manager of the City or any person serving in an
interim or acting capacity with respect to that office.
"Clerk of Council' means the Clerk of Council of the City or an person serving
g
in an interim or acting capacity with respect to that office.
"Closing Date" means the date of physical delivery of, and payment of the
purchase price for, the Bonds.
"Code" means the Internal Revenue Code of 1986, as amended the
Regulations (whether temporary or final) under that Code or the statutorypredecessor
p or
of that Code, and any amendments of, or successor provisions to the foregoing and
g g
any official rulings, announcements, notices, procedures and judicial determinations
.
regarding any of the foregoing, all as and to the extent applicable. Unless otherwise
. p
indicated, reference to a Section of the Code includes any applicable licable successor section
or provision and such applicable Regulations, rulings, announcements, notices
procedures and determinations pertinent to that Section.
"Continuing Disclosure Agreement" means the Continuing Disclosure
Agreement which shall constitute the continuing disclosure agreement made b the
9 y
City for the benefit of the holders and beneficial owners of the Bonds in accordance
with the Rule, as it may be modified from the form on file with the Clerk of Council and
executed by the City Manager and the Director of Finance, all in accordance with
Section 9(c).
"Depositor}/' means any securities depository that is a clearingagency
9 enc
Y
registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934, operating and maintaining, with its Participants or otherwise a book entry
system to record ownership of beneficial interests in the Bonds or therinci al of and
p p
interest and any premium on the Bonds, and to effect transfers of the Bonds in book
entry form, and includes and means initially The Depository Trust Y(
Com an a limited
Company
purpose trust company), New York, New York.
"Director of Finance" means the Director of Finance of the City or an person
Y
serving in an interim or acting capacity with respect to that office.
"Financing Costs" shall have the meaning given in Section 133.01 of the Ohio
Revised Code.
"Interest Payment Dates" means June 1 and December 1 of eachY ear that the
Bonds are outstanding, commencing on the date specified in the Certificate of Award.
"Mandatory Redemption Dater"shall have the meaning set forth in Section 3(b).
"Mandatory Sinking Fund Redemption Requirements" shall have the meaning
set forth in Section 3(e)(i).
"Original Purchaser" means the purchaser of the Bonds specified in the
Certificate of Award.
"Participant" means any participant contracting with a Depository under a book
entry system and includes securities brokers and dealers, banks and trust companies
and clearing corporations.
"Principal Payment Dates" means December 1 in each of the years from and
including 2021 to and including 2040; provided that the first Principal Payment Date
may be advanced up to one year and the last Principal Payment Date may be
advanced by such number of years as determined necessary by the Director of
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
Ordinance No. 05-20 Pussesage 3 of 14
Finance, and provided further that in no case shall the final Principal Payment Date
p y
exceed the maximum maturity limitation referred to in thereambles hereto all of
p ,
which determinations shall be made by the Director of Finance in the Certificate of
Award in such manner as to be in the best interest of and financial) advantageous t
the City.
y g °
"Registrar Agreement" means the Bond Registrar Agreement between the City
�
and
the Bond Registrar, as it may be modified from the form on file with the Clerk of
Council and executed by the City Manager and the Director of Finance all in
accordance with Section 4.
"Regulations" means Treasury Regulations issuedursuant to the Code or t
p °
the
statutory predecessor of the Code.
"Rule" means Rule 15c2-12 prescribed by the SECp ursuant to the Securities
Exchange Act of 1934.
"SEC means the Securities and Exchange Commission.
"Serial Bonds" means those Bonds designated as such and maturingon the
dates set forth in the C
Certificate of Award, bearing interest payable on each Interest
Payment Date and not subject to mandatory sinking fund redemption.
"Term Bonds'' means those Bonds designated as such and maturingth
on e
date or dates set forth in the Certificate of Award, bearinginterest payable
Inter p y on each
Interest Payment Date and subject to mandatory sinking fund redemption.
The captions and headings in this Ordinance are solely for convenience of
reference and in no way define, limit or describe the an Se
scope or intent of p y coons,
subsections, paragraphs, subparagraphs or clauses hereof. Reference to a Section
means a section of this Ordinance unless otherwise indicated.
Section 2. Authorized Princi al Amount and Pur ose• Armlication of Proceeds_.
This Council determines that it is necessary and in the best interest of the City to issue
bonds of this City in the maximum principal amount of6(the $ ,000000 ""Bonds) for
the purpose of paying the costs of improving the municipal sanitary ry sewer system by
extending certain sewer lines, repairing and lining certain existinglines
sewer ,and
installing a new pump station and force main, together with all incidental work and
�� g
related appurtenances thereto (the "Improvement). The Bonds shall b
� e issued
pursuant to Chapter 133 of the Ohio Revised Code, the Charter of the Ci this
Ordinance�'
and the Certificate of Award.
The principal amount of Bonds to be issued shall not exceed the maximum
principal amount specified in this Section 2 and shall be an amount determined by the
Director of Finance in the Certificate of Award to be the principal amount of Bonds that
. p p at
is required to be issued at this time for the purpose stated in this Section 2 takinginto
account the casts of the Improvement,
p ovement, the estimates of the Financing Costs and the
interest rates on the Bonds.
The proceeds from the sale of the Bonds received by the Ci(or withheld bty y
the Original Purchaser on behalf of the City) shall be paid into the proper fund
funds, and those proceeds are hereby appropriated and shall be used for theose
for which the Bonds ur p p
are being issued, including without limitation but only to the
extent not paid by others, the payment of the costs of issuing and servicing the Bonds,,
printing and delivery of the Bonds, legal services including obtainingtheapproving
pp g
legal opinion of bond counsel, fees and expenses of an municipal advisor, paying
y p � p y g
agent and rating agency, any fees or premiums relating to municipal bond insurance or
other security arrangements determined necessary by the Director of Finance and all
other Financing Costs and costs incurred incidental to those purposes. The Certificate
. p p e
of Award may authorize the Original Purchaser to withhold certainp roceeds from the
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
Ordinance No. 05-20 Pussegage 4 of 14
purchase price of the Bonds to provide for the payment of Financing Costs related to
the Bonds on behalf of the City. Any portion of those proceeds received by the City
representing premium (after payment of any Financing Costs identified in the
Certificate of Award and the Registrar Agreement) or accrued interest shall be paid
into the Bond Retirement Fund.
Section 3. Denominations; Dating; Principal and Interest Payment and
Redemption Provisions, The Bonds shall be issued in one lot and only as fully
registered bonds, in Authorized Denominations, but in no case as to a particular
maturity date exceeding the principal amount maturing on that date. The Bonds shall
be dated as provided in the Certificate of Award, provided that their dated date shall
not be more than sixty (60) days prior to the Closing Date.
(a) Interest Rates and Payment Dates. The Bonds shall bear interest at the
rate or rates per year (computed on the basis of a 360 -day year consisting of twelve
30 -day months) as shall be determined by the Director of Finance, subject to
subsection (c) of this Section 3, in the Certificate of Award. Interest on the Bonds
shall be payable at such rate or rates on the Interest Payment Dates until the principal
amount has been paid or provided for. The Bonds shall bear interest from the most
recent date to which interest has been paid or provided for or, if no interest has been
paid or provided for, from their date.
(b) Principal Payment Schedule. The Bonds shall mature or be payable
pursuant to Mandatory Sinking Fund Redemption Requirements on the Principal
Payment Dates in principal amounts as shall be determined by the Director of Finance,
subject to subsection (c) of this Section 3, in the Certificate of Award, which
determination shall be in the best interest of and financially advantageous to the City.
Consistent with the foregoing and in accordance with the determination of the
best interest of and financially advantageous to the City, the Director of Finance shall
specify in the Certificate of Award (i) the aggregate principal amount of Bonds to be
issued as Serial Bonds, the Principal Payment Date or Dates on which those Bonds
shall be stated to mature and the principal amount thereof that shall be stated to
mature on each such Principal Payment Date and (ii) the aggregate principal amount
of Bonds to be issued as Term Bonds, the Principal Payment Date or Dates on which
those Bonds shall be stated to mature, the principal amount thereof that shall be
stated to mature on each such Principal Payment Date, the Principal Payment Date or
Dates on which Term Bonds shall be subject to mandatory sinking fund redemption
(each a "Mandatory Redemption Date') and the principal amount thereof that shall be
payable pursuant to Mandatory Sinking Fund Redemption Requirements on each
Mandatory Redemption Date.
(c) Conditions for Establishment of Interest Rates and Principal Payment
Dates and Amounts. The rate or rates of interest per year to be borne by the Bonds,
and the principal amount of Bonds maturing or payable pursuant to Mandatory Sinking
Fund Redemption Requirements on each Principal Payment Date, shall be such that
the total principal and interest payments on the Bonds in any fiscal year in which
principal is payable is not more than three times the amount of those payments in any
other fiscal year. The net interest cost for the Bonds determined by taking into
account the respective principal amounts of the Bonds and terms to maturity or
Mandatory Sinking Fund Redemption Requirements of those principal amounts of
Bonds shall not exceed 6.00%.
(d) Payment of Debt Charges. The debt charges on the Bonds shall be
payable in lawful money of the United States of America without deduction for the
services of the Bond Registrar as paying agent. Principal of and any premium on the
Bonds shall be payable when due upon presentation and surrender of the Bonds at the
designated corporate trust office of the Bond Registrar. Interest on a Bond shall be
paid on each Interest Payment Date by check or draft mailed to the person in whose
name the Bond was registered, and to that person's address appearing, on the Bond
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
. 05-20 a e
(Urdlnance No. Pussea�g 5 of 14 ,
Register at the close of business on the 15th da of the
that y calendar month next preceding
Interest Payment Date. Notwithstanding the foregoing,
Bonds are ' g g g, if and so long as the
issued in a book entry system, principal of and interest and
in the any premium on
the Bonds shall be
payable e manner provided in any agreement entered into b
the Director of Finance, in the name and on be y
half of the City, in connection with the
book entry system.
(e) Redemption Provisions. The Bonds shall be s •
subject to redemption prior
to stated maturity as follows:
(i) Mandatory Sinkina Fund Redem tion of Term
p Bonds. If any of
the Bonds are issued as Term Bonds, the Term Bonds shall be subject to
mandatory redemption in part by lot and be redeemed pursuant to ma
ndatory
sinking fund redemption requirements, at a redemption price of 100/ of theprinci al amount redeemed, plus accrued interest
to the redemption date, e, on
the applicable Mandatory Redemption Dates and in the principal amounts
i
payable on those Dates for w p
which provision is made in the Certificate of Award
(such Dates and amounts being referred to as the "Mandatory Sinking Fund
Redemption Requirements).
The aggregate of the moneys to be deposited with the Bond Registrar
for payment of principal of and interest on any Term Bonds on each Mandatory
Redemption Date shall include an amount sufficient to redeem on that Date the
principal amount of Term Bonds payable on that Date pursuant to the
Mandatory Sinking Fund Redemption Requirements (less the amount of any
credit as hereinafter provided).
The City shall have the option to deliver to the Bon '
Bond Registrar for
cancellation Term Bonds in any aggregaterinci al amount p p t and to receive a
credit against the then current or any subsequent Mandatory Sinking FundRedem tion Requirement (and
corresponding mandato redemption
obligation of the Ci as mandatory p
City, specified by the Director of Finance for
stated to ma Term Bonds
mature on the same Principal Payment Date and bearinginterest
the same rate as the Ter at
Term Bonds so delivered. That option shall be exercised
by the City on or before the 45th da preceding y p g an y Mandatory Redemption
Date
with respect to which the City wishes to obtain a credit b '
y furnishing the
Bond Registrar a certificate, signed by the Director of Finance, setting forth the
extent of the credit to be applied with respect to the then current or any
subsequent Mandatory Sinking Fund Redemption Requirement p q ent for Term Bonds
stated
to mature on the same Principal Payment Date and bearinginterest terest at
the same rate as the Term Bonds so delivered. If the certificate is not timely
istrar, e y
furnished to the Bond Re
g , the current Mandatory Sinking Fund
Redemption Requirement (and corresponding mandatory •
obligation)p 9 tory redemption
shall not be reduced. A credit against the then current or any
subsequent Mandatory Sinking Fund Redemption Re
ondin p Requirement (and
corresponding g mandatory redemption obligation), as specified b the Director
of Finance also shall be r y
received by the City for any Term Bonds which prior
thereto have been redeemed (other than through the o
applicable 9 operation of the
a
pp e Mandatory Sinking Fund Redemption Requirements) or purchased
ed
for cancellation and canceled by the Bond Registrar,, to the e
the g � extent not applied
theretofore as a credit against any Mandato Sinking Fund Redemption
Mandatory g mption
Requirement, for Term Bonds stated to mature on the same Principal pa Payment
Date and bearing interest at the same rate as the Term Bonds so
delivered,
redeemed or purchased and canceled.
Each Term Bond so delivered, or previously redeemed or purchased
and canceled shall be creditedo �
by the Bond Registrar at 100 /o of the principal
amount thereof against the then current or subsequent Mandato Sinking
Redemption Requirements Mandatory g
Fund Redem
p qu rements (and corresponding mandatory redemption
obligations), as specified by the Director of Finance, for Term Bonds stated to
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON. OHIO Form 6220S
Ordinance No. 05-20 Passe�ge 6 of 14
mature on the same Principal Payment Date and bearing interest at the same
rate as the Term Bonds so delivered, redeemed or purchased and canceled.
(ii) Optional Redemption. The Bonds of the maturities and interest
rates specified in the Certificate of Award (if any are so specified) shall be
subject to optional redemption by and at the sole option of the City, in whole or
in part in integral multiples of $5,000, on the dates and at the redemption
prices (expressed as a percentage of the principal amount to be redeemed),
plus accrued interest to the redemption date, to be determined by the Director
of Finance in the Certificate of Award; provided that the redemption price for
any optional redemption date shall not be greater than 103%.
If optional redemption of Term Bonds at a redemption price exceeding
100% of the principal amount to be redeemed is to take place as of any
Mandatory Redemption Date applicable to those Term Bonds, the Term Bonds,
or portions thereof, to be redeemed optionally shall be selected by lot prior to
the selection by lot of the Term Bonds of the same maturity (and interest rate
within a maturity if applicable) to be redeemed on the same date by operation
of the Mandatory Sinking Fund Redemption Requirements. Bonds to be
redeemed pursuant to this paragraph shall be redeemed only upon written
notice from the Director of Finance to the Bond Registrar, given upon the
direction of the City by passage of an ordinance or adoption of a resolution.
That notice shall specify the redemption date and the principal amount of each
maturity (and interest rate within a maturity if applicable) of Bonds to be
redeemed, and shall be given at least 45 days prior to the redemption date or
such shorter period as shall be acceptable to the Bond Registrar.
(iii) Partial Redemption. If fewer than all of the outstanding Bonds
are called for optional redemption at one time and Bonds of more than one
maturity (or interest rate within a maturity if applicable) are then outstanding,
the Bonds that are called shall be Bonds of the maturity or maturities and
interest rate or rates selected by the City. If fewer than all of the Bonds of a
single maturity (or interest rate within a maturity if applicable) are to be
redeemed, the selection of Bonds of that maturity (or interest rate within a
maturity if applicable) to be redeemed, or portions thereof in amounts of
$5,000 or any integral multiple thereof, shall be made by the Bond Registrar by
lot in a manner determined by the Bond Registrar. In the case of a partial
redemption of Bonds by lot when Bonds of denominations greater than $5,000
are then outstanding, each $5,000 unit of principal thereof shall be treated as if
it were a separate Bond of the denomination of $5,000. If it is determined that
one or more, but not all, of the $5,000 units of principal amount represented
by a Bond are to be called for redemption, then, upon notice of redemption of
a $5,000 unit or units, the registered owner of that Bond shall surrender the
Bond to the Bond Registrar (A) for payment of the redemption price of the
$5,000 unit or units of principal amount called for redemption (including,
without limitation, the interest accrued to the date fixed for redemption and
any premium), and (B) for issuance, without charge to the registered owner, of
anew Bond or Bonds of any Authorized Denomination or Denominations in an
aggregate principal amount equal to the unmatured and unredeemed portion
of, and bearing interest at the same rate and maturing on the same date as,
the Bond surrendered.
(iv) Notice of Redemption. The notice of the call for redemption of
Bonds shall identify (A) by designation, letters, numbers or other distinguishing
marks, the Bonds or portions thereof to be redeemed, (B) the redemption price
to be paid, (C) the date fixed for redemption, and (D) the place or places
where the amounts due upon redemption are payable. The notice shall be
given by the Bond Registrar on behalf of the City by mailing a copy of the
redemption notice by first-class mail, postage prepaid, at least 30 days prior to
the date fixed for redemption, to the registered owner of each Bond subject to
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
Ordinance No. 05-20 pusseDge 7 of 14
redemption in whole or in part at the registered owner's address shown on the
Bond Register maintained by the Bond Registrar at the close of business on the
15th day preceding that mailing. Failure to receive notice by mail or any defect
in that notice regarding any Bond, however, shall not affect the validity of the
proceedings for the redemption of any Bond.
(v) Payment of Redeemed Bonds. In the event that notice of
redemption shall have been given by the Bond Registrar to the registered
owners as provided above, there shall be deposited with the Bond Registrar on
or prior to the redemption date, moneys that, in addition to any other moneys
available therefor and held by the Bond Registrar, will be sufficient to redeem
at the redemption price thereof, plus accrued interest to the redemption date,
all of the redeemable Bonds for which notice of redemption has been given.
Notice having been mailed in the manner provided in the preceding paragraph
hereof, the Bonds and portions thereof called for redemption shall become due
and payable on the redemption date, and, subject to the provisions of Sections
3(d) and 5, upon presentation and surrender thereof at the place or places
specified in that notice, shall be paid at the redemption price, plus accrued
interest to the redemption date. If moneys for the redemption of all of the
Bonds and portions thereof to be redeemed, together with accrued interest
thereon to the redemption date, are held by the Bond Registrar on the
redemption date, so as to be available therefor on that date and, if notice of
redemption has been deposited in the mail as aforesaid, then from and after
the redemption date those Bonds and portions thereof called for redemption
shall cease to bear interest and no longer shall be considered to be
outstanding. If those moneys shall not be so available on the redemption date,
or that notice shall not have been deposited in the mail as aforesaid, those
Bonds and portions thereof shall continue to bear interest, until they are paid,
at the same rate as they would have borne had they not been called for
redemption. All moneys held by the Bond Registrar for the redemption of
particular Bonds shall be held in trust for the account of the registered owners
thereof and shall be paid to them, respectively, upon presentation and
surrender of those Bonds; provided that any interest earned on the moneys so
held by the Bond Registrar shall be for the account of and paid to the City to
the extent not required for the payment of the Bonds called for redemption.
Section 4. Execution and Authentication of Bonds; Appointment of Bond
Registrar. The Bonds shall be signed by the City Manager and the Director of Finance,
in the name of the City and in their official capacities; provided that either or both of
those signatures may be a facsimile. The Bonds shall be issued in the Authorized
Denominations and numbers as requested by the Original Purchaser and approved by
the Director of Finance, shall be numbered as determined by the Director of Finance in
order to distinguish each Bond from any other Bond, and shall express upon their
faces the purpose, in summary terms, for which they are issued and that they are
issued pursuant to Chapter 133 of the Ohio Revised Code, the Charter of the City, this
Ordinance and the Certificate of Award.
The Director of Finance is hereby authorized to designate in the Certificate of
Award a bank or trust company authorized to do business in the State of Ohio to act
as the initial Bond Registrar. The City Manager and the Director of Finance shall sign
and deliver, in the name and on behalf of the City, the Registrar Agreement between
the City and the Bond Registrar, in substantially the form as is now on file with the
Clerk of Council. The Registrar Agreement is approved, together with any changes or
amendments that are not inconsistent with this Ordinance and not substantially
adverse to the City and that are approved by the City Manager and the Director of
Finance on behalf of the City, all of which shall be conclusively evidenced by the
signing of the Registrar Agreement or amendments thereto. The Director of Finance
shall provide for the payment of the services rendered and for reimbursement of
expenses incurred pursuant to the Registrar Agreement, except to the extent paid or
reimbursed by the Original Purchaser and/or the Bond Registrar pursuant to the
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
(ordinance No. 05-20
Passc�ge 8 of 14
Certificate of Award and/or the Registrar Agreement, from the proceeds of the Bonds
to the extent available and then from other money lawfully available and appropriated
or to be appropriated for that purpose.
No Bond shall be valid or obligatory for any purpose or shall be entitled to any
security or benefit under the Bond Proceedings unless and until the certificate of
authentication printed on the Bond is signed by the Bond Registrar as authenticating
agent. Authentication by the Bond Registrar shall be conclusive evidence that the
Bond so authenticated has been duly issued, signed and delivered under, and is
entitled to the security and benefit of, the Bond Proceedings. The certificate of
authentication may be signed by any authorized officer or employee of the Bond
Registrar or by any other person acting as an agent of the Bond Registrar and
approved by the Director of Finance on behalf of the City. The same person need not
sign the certificate of authentication on all of the Bonds.
Section 5. Registration; Transfer and Exchange; Book Entry System.
(a) Bond Regis, ter. So long as any of the Bonds remain outstanding, the
City will cause the Bond Registrar to maintain and keep the Bond Register at its
designated corporate trust office. Subject to the provisions of Sections 3(d) and 9(c),
the person in whose name a Bond is registered on the Bond Register shall be regarded
as the absolute owner of that Bond for all purposes of the Bond Proceedings. Payment
of or on account of the debt charges on any Bond shall be made only to or upon the
order of that person; neither the City nor the Bond Registrar shall be affected by any
notice to the contrary, but the registration may be changed as provided in this
Section 5. All such payments shall be valid and effectual to satisfy and discharge the
City's liability upon the Bond, including interest, to the extent of the amount or
amounts so paid.
(b) Transfer and Exchange. Any Bond may be exchanged for Bonds of any
Authorized Denomination upon presentation and surrender at the designated corporate
trust office of the Bond Registrar, together with a request for exchange signed by the
registered owner or by a person legally empowered to do so in a form satisfactory to
the Bond Registrar. A Bond may be transferred only on the Bond Register upon
presentation and surrender of the Bond at the designated corporate trust office of the
Bond Registrar together with an assignment signed by the registered owner or by a
person legally empowered to do so in a form satisfactory to the Bond Registrar. Upon
exchange or transfer the Bond Registrar shall complete, authenticate and deliver a
new Bond or Bonds of any Authorized Denomination or Denominations requested by
the owner equal in the aggregate to the unmatured principal amount of the Bond
surrendered and bearing interest at the same rate and maturing on the same date.
If manual signatures on behalf of the City are required, the Bond Registrar shall
undertake the exchange or transfer of Bonds only after the new Bonds are signed by
the authorized officers of the City. In all cases of Bonds exchanged or transferred, the
City shall sign and the Bond Registrar shall authenticate and deliver Bonds in
accordance with the provisions of the Bond Proceedings. The exchange or transfer
shall be without charge to the owner, except that the City and Bond Registrar may
make a charge sufficient to reimburse them for any tax or other governmental charge
required to be paid with respect to the exchange or transfer. The City or the Bond
Registrar may require that those charges, if any, be paid before the procedure is
begun for the exchange or transfer. All Bonds issued and authenticated upon any
exchange or transfer shall be valid obligations of the City, evidencing the same debt,
and entitled to the same security and benefit under the Bond Proceedings as the
Bonds surrendered upon that exchange or transfer. Neither the City nor the Bond
Registrar shall be required to make any exchange or transfer of (i) Bonds then subject
to call for redemption between the 15th day preceding the mailing of notice of Bonds to
be redeemed and the date of that mailing, or (ii) any Bond selected for redemption, in
whole or in part.
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
(ordinance No. 05-20 Passraage 9 of 14
(c) Book Entry System. Notwithstanding any other provisions of this
Ordinance, if the Director of Finance determines in the Certificate of Award that it is in
the best interest of and financially advantageous to the City, the Bonds may be issued
in book entry form in accordance with the following provisions of this Section 5.
The Bonds may be issued to a Depository for use in a book entry system and, if
and as long as a .book entry system is utilized: (i) the Bonds may be issued in the form
of a single, fully registered Bond representing each maturity, and, if applicable, each
interest rate within a maturity, and registered in the name of the Depository or its
nominee, as registered owner, and immobilized in the custody of the Depository or its
designated agent for that purpose, which may be the Bond Registrar; (ii) the beneficial
owners of Bonds in book entry form shall have no right to receive Bonds in the form of
physical securities or certificates; (iii) ownership of beneficial interests in book entry
form shall be shown by book entry on the system maintained and operated by the
Depository and its Participants, and transfers of the ownership of beneficial interests
shall be made only by book entry by the Depository and its Participants; and (iv) the
Bonds as such shall not be transferable or exchangeable, except for transfer to
another Depository or to another nominee of a Depository, without further action by
the City.
If any Depository determines not to continue to act as a Depository for the
Bonds for use in a book entry system, the Director of Finance may attempt to establish
a securities depository/book entry relationship with another qualified Depository. If
the Director of Finance does not or is unable to do so, the Director of Finance, after
making provision for notification of the beneficial owners by the then Depository and
any other arrangements deemed necessary, shall permit withdrawal of the Bonds from
the Depository, and shall cause Bond certificates in registered form and Authorized
Denominations to be authenticated by the Bond Registrar and delivered to the assigns
of the Depository or its nominee, all at the cost and expense (including any costs of
printing), if the event is not the result of City action or inaction, of those persons
requesting such issuance.
The Director of Finance is hereby authorized and directed, to the extent
necessary or required, to enter into any agreements, in the name and on behalf of the
City, that the Director of Finance determines to be necessary in connection with a book
entry system for the Bonds.
Section 6. Sale of the Bonds to the Original Purchaser. The Director of
Finance is authorized to sell the Bonds at private sale to the Original Purchaser at a
purchase price, not less than 97% of the aggregate principal amount thereof, as shall
be determined by the Director of Finance in the Certificate of Award, plus accrued
interest (if any) on the Bonds from their date to the Closing Date, and shall be
awarded by the Director of Finance with and upon such other terms as are required or
authorized by this Ordinance to be specified in the Certificate of Award, in accordance
with law and the provisions of this Ordinance. The Director of Finance is authorized, if
it is determined to be in the best interest of the City, to combine the issue of Bonds
with one or more other bond issues of the City into a consolidated bond issue pursuant
to Section 133.30(B) of the Ohio Revised Code in which case a single Certificate of
Award may be utilized for the consolidated bond issue if appropriate and consistent
with the terms of this Ordinance.
The Director of Finance shall sign and deliver the Certificate of Award and shall
cause the Bonds to be prepared and signed and delivered, together with a true
transcript of proceedings with reference to the issuance of the Bonds, to the Original
Purchaser upon payment of the purchase price.
The Mayor, the City Manager, the Director of Finance, the Director of Law, the
Clerk of Council and other City officials, as appropriate, are each authorized and
directed to sign any transcript certificates, financial statements and other documents
and instruments and to take such actions as are necessary or appropriate to
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
(9rdinance No. 05-20 Passpjge 10 of 14
consummate the transactions contemplated by this Ordinance. The actions of the
Mayor, the City Manager, the Director of Finance, the Director of Law, the Clerk of
Council or other City official, as appropriate, in doing any and all acts necessary in
connection with the issuance and sale of the Bonds are hereby ratified and confirmed.
Section 7. Provision for Tax Levu. There shall be levied on all the taxable
property in the City, in addition to all other taxes, a direct tax annually during the
period the Bonds are outstanding in an amount sufficient to pay the debt charges on
the Bonds when due, which tax shall not be less than the interest and sinking fund tax
required by Section 11 of Article XII of the Ohio Constitution. The tax shall be within
the ten -mill limitation imposed by law, shall be and is ordered computed, certified,
levied and extended upon the tax duplicate and collected by the same officers, in the
same manner and at the same time that taxes for general purposes for each of those
years are certified, levied, extended and collected, and shall be placed before and in
preference to all other items and for the full amount thereof. The proceeds of the tax
levy shall be placed in the Bond Retirement Fund, which is irrevocably pledged for the
payment of the debt charges on the Bonds when and as the same fall due.
In each year to the extent the net revenues from the municipal sanitary sewer
system are available for the payment of the debt charges on the Bonds and are
appropriated for that purpose, the amount of the tax shall be reduced by the amount
of such net revenues so available and appropriated.
In each year to the extent receipts from the municipal income tax are available
for the payment of the debt charges on the Bonds and are appropriated for that
purpose, and to the extent not paid from net revenues of the municipal sanitary sewer
system, the amount of the tax shall be reduced by the amount of such receipts so
available and appropriated in compliance with the following covenant. To the extent
necessary, the debt charges on the Bonds shall be paid from municipal income taxes
lawfully available therefor under the Constitution and the laws of the State of Ohio,
and the Charter of the City; and the City hereby covenants, subject and pursuant to
such authority, including particularly Section 133.05(B)(7) of the Ohio Revised Code, to
appropriate annually from such municipal income taxes such amount as is necessary to
meet such annual debt charges.
Nothing in the two preceding paragraphs in any way diminishes the irrevocable
pledge of the full faith and credit and general property taxing power of the City to the
prompt payment of the debt charges on the Bonds.
Section 8. Federal Tax Considerations. The City covenants that it will use, and
will restrict the use and investment of, the proceeds of the Bonds in such manner and
to such extent as may be necessary so that (a) the Bonds will not (i) constitute private
activity bonds or arbitrage bonds under Sections 141 or 148 of the Code or (ii) be
treated other than as bonds the interest on which is excluded from gross income under
Section 103 of the Code, and (b) the interest on the Bonds will not be an item of tax
preference under Section 57 of the Code.
The City further covenants that (a) it will take or cause to be taken such
actions that may be required of it for the interest on the Bonds to be and remain
excluded from gross income for federal income tax purposes, (b) it will not take or
authorize to be taken any actions that would adversely affect that exclusion, and (c) it,
or persons acting for it, will, among other acts of compliance, (i) apply the proceeds of
the Bonds to the governmental purpose of the borrowing, (ii) restrict the yield on
investment property, (iii) make timely and adequate payments to the federal
government, (iv) maintain books and records and make calculations and reports and
(v) refrain from certain uses of those proceeds, and, as applicable, of property
financed with such proceeds, all in such manner and to the extent necessary to assure
such exclusion of that interest under the Code.
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON. OHIO Form 6220S
Ordinance No. 05-20 Pusspdge 11 of 14
The Director of Finance or any other officer of the City having responsibility for
issuance of the Bonds is hereby authorized (a) to make or effect any election,
selection, designation, choice, consent, approval, or waiver on behalf of the City with
respect to the Bonds as the City is permitted to or required to make or give under the
federal income tax laws, including, without limitation thereto, any of the elections
available under Section 148 of the Code, for the purpose of assuring, enhancing or
protecting favorable tax treatment or status of the Bonds or interest thereon or
assisting compliance with requirements for that purpose, reducing the burden or
expense of such compliance, reducing the rebate amount or payments or penalties
with respect to the Bonds, or making payments of special amounts in lieu of making
computations to determine, or paying, excess earnings as rebate, or obviating those
amounts or payments with respect to the Bonds, which action shall be in writing and
signed by the officer, (b) to take any and all other actions, make or obtain calculations,
make payments, and make or give reports, covenants and certifications of and on
behalf of the City, as may be appropriate to assure the exclusion of interest from gross
income and the intended tax status of the Bonds, and (c) to give one or more
appropriate certificates of the City, for inclusion in the transcript of proceedings for the
Bonds, setting forth the reasonable expectations of the City regarding the amount and
use of all the proceeds of the Bonds, the facts, circumstances and estimates on which
they are based, and other facts and circumstances relevant to the tax treatment of the
interest on and the tax status of the Bonds. The Director of Finance or any other
officer of the City having responsibility for issuance of the Bonds is specifically
authorized to designate the Bonds as "qualified tax-exempt obligations" if such
designation is applicable and desirable, and to make any related necessary
representations and covenants.
Section 9. Official Statement, Rating, Bond Insurance, Continuing Disclosure
and Financing Costs.
(a) Primary Offering Disclosure -- Official Statement. The City Manager and
the Director of Finance are each authorized and directed, on behalf of the City and in
their official capacities, to (i) prepare or cause to be prepared, and make or authorize
modifications, completions or changes of or supplements to, a disclosure document in
the form of an official statement relating to the original issuance of the Bonds in
substantially the form as is now on file with the Clerk of Council, (ii) determine, and to
certify or otherwise represent, when the official statement is to be "deemed final"
(except for permitted omissions) by the City as of its date or is a final official
statement for purposes of paragraph (b) of the Rule, (iii) use and distribute, or
authorize the use and distribution of those official statements and any supplements
thereto in connection with the original issuance of the Bonds, and (iv) complete and
sign those official statements and any supplements thereto as so approved, together
with such certificates, statements or other documents in connection with the finality,
accuracy and completeness of those official statements and any supplements, as they
may deem necessary or appropriate.
(b) Application for Rating or Bond Insurance. If, in the judgment of the
Director of Finance, the filing of an application for (i) a rating on the Bonds by one or
more nationally -recognized rating agencies, or (ii) a policy of insurance from a
company or companies to better assure the payment of principal of and interest on the
Bonds, is in the best interest of and financially advantageous to this City, the Director
of Finance is authorized to prepare and submit those applications, to provide to each
such agency or company such information as may be required for the purpose, and to
provide further for the payment of the cost of obtaining each such rating or policy,
except to the extent otherwise paid or reimbursed pursuant to the Certificate of Award
I and/or the Registrar Agreement, from the proceeds of the Bonds to the extent
available and otherwise from any other funds lawfully available and that are
appropriated or shall be appropriated for that purpose. The Director of Finance is
hereby authorized, to the extent necessary or required, to enter into any agreements,
in the name of and on behalf of the City, that the Director of Finance determines to be
necessary in connection with the obtaining of that bond insurance.
RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO
(ordinance No. 05-20
Passc�ge 12 of 14
Form 6220S
(c) Agreement to Provide Continuing Disclosure. For the benefit of the
holders and beneficial owners from time to time of the Bonds, the City agrees to
provide or cause to be provided such financial information and operating data, audited
financial statements and notices of the occurrence of certain events, in such manner
as may be required for purposes of the Rule. The City Manager and the Director of
Finance are each authorized and directed to complete, sign and deliver the Continuing
Disclosure Agreement, in the name and on behalf of the City, in substantially the form
as is now on file with the Clerk of Council. The Continuing Disclosure Agreement is
approved, together with any changes or amendments that are not inconsistent with
this Ordinance and not substantially adverse to the City and that are approved by the
City Manager and the Director of Finance on behalf of the City, all of which shall be
conclusively evidenced by the signing of the Continuing Disclosure Agreement or
amendments thereto.
The Director of Finance is further authorized and directed to establish
procedures in order to ensure compliance by the City with its Continuing Disclosure
Agreement, including timely provision of information and notices as described above.
Prior to making any filing required under the Rule, the Director of Finance shall consult
with and obtain legal advice from, as appropriate, the Director of Law and bond or
other qualified independent special counsel selected by the City. The Director of
Finance, acting in the name and on behalf of the City, shall be entitled to rely upon
any such legal advice in determining whether a filing should be made. The
performance by the City of its Continuing Disclosure Agreement shall be subject to the
annual appropriation of any funds that may be necessary to perform it.
(d) Financing Costs. The expenditure of the amounts necessary to pay any
Financing Costs in connection with the Bonds, to the extent not paid by the Original
Purchaser and/or the Bond Registrar in accordance with the Certificate of Award
and/or the Registrar Agreement, is authorized and approved, and the Director of
Finance is authorized to provide for the payment of any such amounts and costs from
the proceeds of the Bonds to the extent available and otherwise from any other funds
lawfully available that are appropriated or shall be appropriated for that purpose.
Section 10. Bond Counsel. The legal services of the law firm of Squire Patton
Boggs (US) LLP are hereby retained. Those legal services shall be in the nature of
legal advice and recommendations as to the documents and the proceedings in
connection with the authorization, sale and issuance of the Bonds and rendering at
delivery related legal opinions, all as set forth in the form of engagement letter from
that firm which is now on file in the office of the Clerk of Council. In providing those
legal services, as an independent contractor and in an attorney-client relationship, that
firm shall not exercise any administrative discretion on behalf of this City in the
formulation of public policy, expenditure of public funds, enforcement of laws, rules
and regulations of the State, any county or municipal corporation or of this City, or the
execution of public trusts. For those legal services that firm shall be paid just and
reasonable compensation and shall be reimbursed for actual out-of-pocket expenses
incurred in providing those legal services. The Director of Finance is authorized and
directed, to the extent they are not paid or reimbursed pursuant to the Certificate of
Award and/or the Registrar Agreement, to make appropriate certification as to the
availability of funds for those fees and any reimbursement and to issue an appropriate
order for their timely payment as written statements are submitted by that firm. The
amounts necessary to pay those fees and any reimbursement are hereby appropriated
from the proceeds of the Bonds, if available, and otherwise from available moneys in
the General Fund.
Section 11. Municipal Advisor. The services of Baker Tilly Municipal Advisors,
LLC, as municipal advisor, are hereby retained. The municipal advisory services shall
be in the nature of financial advice and recommendations in connection with the
issuance and sale of the Bonds. In rendering those municipal advisory services, as an
independent contractor, that firm shall not exercise any administrative discretion on
behalf of the City in the formulation of public policy, expenditure of public funds,
RECORD OF ORDINANCES
BARRET"T BROTHERS - DAYTON. OHIO Form 6220S
Ordinance No. 05-20
Pass P� g e 13 of 14
enforcement of laws, rules and regulations of the State, the City or any other political
subdivision, or the execution of public trusts. That firm shall be paid just and
reasonable compensation for those municipal advisory services and shall be
reimbursed for the actual out-of-pocket expenses it incurs in rendering those municipal
advisory services. The Director of Finance is authorized and directed, to the extent
they are not paid or reimbursed pursuant to the Certificate of Award and/or the
Registrar Agreement, to make appropriate certification as to the availability of funds
for those fees and any reimbursement and to issue an appropriate order for their
timely payment as written statements are submitted by that firm. The amounts
necessary to pay those fees and any reimbursement are hereby appropriated from the
proceeds of the Bonds, if available, and otherwise from available moneys in the
General Fund.
Section 12. Certification and Delivery of Ordinance and Certificate of Award.
The Clerk of Council is directed to promptly deliver or cause to be delivered a certified
copy of this Ordinance and an executed copy of the Certificate of Award to the County
Auditors of the Counties of Delaware, Franklin and Union, Ohio,
Section 13. Satisfaction of Conditions for Bond Issuance. This Council
determines that all acts and conditions necessary to be done or performed by the City
or to have been met precedent to and in the issuing of the Bonds in order to make
them legal, valid and binding general obligations of the City have been performed and
have been met, or will at the time of delivery of the Bonds have been performed and
have been met, in regular and due form as required by law; that the full faith and
credit and general property taxing power (as described in Section 7) of the City are
pledged for the timely payment of the debt charges on the Bonds; that no statutory or
constitutional limitation of indebtedness or taxation will have been exceeded in the
issuance of the Bonds; and that the Bonds are being authorized and issued pursuant
to Chapter 133 of the Ohio Revised Code, the Charter of the City, this Ordinance, the
Certificate of Award and other authorizing provisions of law.
Section 14. Compliance with Open Meeting Requirements. This Council finds
and determines that all formal actions of this Council and any of its committees
concerning and relating to the passage of this Ordinance were taken in an open
meeting of this Council or any of its committees, and that all deliberations of this
Council and of any of its committees that resulted in those formal actions were in
meetings open to the public, all in compliance with the law, including Section 121.22 of
the Ohio Revised Code.
Section 15. Effective Date. This Ordinance shall be in full force and effect on
the earliest date permitted by law.
RECORD OF ORDINANCES
BAR.RETT BROTHERS - DAYTON, OHIO
Ordinance No. 05-20
Signed:
Mayor - Presiding Officer
Attest:
C k of duncil
(,Ac�ji�)
Passed: 12020
Effective: `MkrCL l( 12020
Pusspuage 14 of 14
Form 6220S
City of Dublin
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017-1090
Phone: 614.410.4400 • Fax: 614.410.4490
To: Members of Dublin City Council
From: Dana L. McDaniel, City Manager
Date: February 4, 2020
Initiated By: Matthew L. Stiffler, Interim Director of Finance
Summary
Memo
Re: Ordinance 05-20 - Issuance and Sale of Bonds Follow Up Items
At the first hearing on this Ordinance, Council requested additional information on the following:
Repayment of bonds associated with Sanitary Sewer Line Extensions
Ordinance 05-20 authorizes the issuance of debt totaling $6.0 million for three projects associated
with improving the sanitary sewer system through sewer lining and repair as well as extending
sanitary sewer lines to unserved areas. The debt service on these bonds will be repaid with Sewer
Fund Revenue. In addition to Sewer Fund Revenue, these bonds are being issued as general
obligation debt with our "full faith and credit" in order to achieve the highest rating and therefore
lowest interest charges. This means that income tax dollars from the General Fund or Capital
Improvements Tax Fund may be used. This is consistent with prior debt issuances involving the
Sewer Fund.
The 2020 Operating Budget appropriated the debt service expenditures for these projects from the
Sewer Fund as planned in the 2020-2024 CIP. The 2020-2024 CIP indicates that sufficient revenue
to maintain a positive cash balance is available through 2024. The rate of growth, the user fees and
the capacity charges will continue to be evaluated to determine the need to adjust the rates into the
future. A comprehensive rate study examining the fees associated with water and sewer charges is
currently underway. Once this study is completed, revised sewer and water rate fees will be
forwarded to Council for their review and approval.
Metric 3: General Fund as a percentage of revenue — Five -Year Trend
Guideline: % chance in General Fund balance over five years >_ 0%
Council inquired as to why this metric displayed a downward trend over the last five years.
This metric is the difference in the General Fund Balance in a specific year and the General Fund
Balance from five years prior divided by Income Tax Revenues in that specific year. This metric
displays a downward trend over this time period because of the balance in the General Fund from
2010 to 2014 increased from $39.9 million to $61.0 million while from 2015 to 2019 the increase
was from $59.6 million to $65.1 million (after advance repayment).
This difference in rate of growth is a result of $21.6 million in expenditures and transfers from the
General Fund balance from 2016 to 2019. Transfers to the Capital Improvements Tax Fund in 2017
($1.8 million) and 2018 ($1.9 million) were requested and approved under the General Fund Balance
Policy. The purchase of capital assets from the General Fund in 2016, 2018 and 2019 included:
Re: Ord 5-20 Council Discussion Follow Up Information
February 4, 2020
Page 2 of 2
Year
Amount
Project
2016
$1,903,044
Ord 02-16: 24 acres on Blazer Park -way from Nationwide
2016
$1,177,946
Ord 05-16: 73 acres on Rings Road from Riegle Trust total $5.9 million
2017
$3,335,592
Ord 65-17: Mid Century Neighborhood Sidewalk Project
2018
$1,285,025
Ord 05-16: Annual payment 2 of 4 for Rings Road property
2018
$4,000,000
Ord 02-18: Purchase of 5555 Perimeter Drive
2018
$4,263,398
Ord 71-18: 28.8 acres on Eiterman from Weiler
2018
$632,250
Ord 86-18: 4.2 acres on Riverside Drive from Thomas
2019
$1,285,025
Ord 05-16: Annual payment 3 of 4 for Rings Road prope
As Council is aware, the General Fund Balance Policy states the fund balance "shall not be used to
fund recurring operating expenses." As required under this Policy, the expenditures from 2016 to
2019 represent the one-time purchase of capital assets or transfers under the excess fund balance
section. The result of these strategic investments is a reduction in the potential growth in the fund
balance subsequently reflected by Metric 3's downward trend.
Recommendation
Information only.
7City of Dublin
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017-1090
Phone: 614.410.4400 • Fax: 614.410.4490
To: Members of Dublin City Council
From: Dana L. McDaniel, City Manager
Date: January 14, 2020
Initiated By: Matthew L. Stiffler, Interim Director of Finance
Memo
Re: Ordinance Nos. 04-20 and 05-20 — Issuance and Sale of Bonds
Background
Staff is preparing for the issuance of bonds for a number of projects that were approved in the
2019 — 2023 and 2020-2024 Capital Improvements Programs (CIP). The bonds authorized by
Ordinances 04-20 and 05-20 will be utilized for the following projects:
Ordinance 04-20 will provide funding of up to $20,000,000 for the purpose of constructing
the Riverside Crossing Park and the construction of the North Pool.
On December 2, 2019, City Council approved Resolution 69-19, authorizing the City
Manager to enter into a Guaranteed Maximum Price (GMP) contract with Turner
Construction Company Inc. for construction of the Riverside Crossing Park Construction
Project in the amount of $12,956,921. Additional costs of construction (beyond the GMP
contract) include inspection, utility fees, plan review, testing, contingencies and other
professional services.
Repayment of this debt will be from income tax revenues although service payments
received from various TIFs established within the Bridge Street District will be eligible to
pay the debt as well.
On August 26, 2019, City Council approved Ordinance 38-19 (2020-2024 CIP) authorizing
$6,000,000 in new debt be issued for the North Pool. On December 2, 2019, this
authorization was appropriated in Ordinance 71-19. The construction contracts and other
expenses associated with this project are anticipated in the coming months.
Repayment of this debt will be from income tax revenues and user fees as required under
the Recreation Cost Recovery Policy approved by Ordinance 65-18.
Ordinance 05-20 will provide funding of up to $6,000,000 for the purpose of improving the
sanitary sewer system through sewer lining and repair as well as extending sewer lines to
unserved areas.
On December 2, 2019, City Council approved Resolution 67-19, authorizing the City
Manager to enter into a contract with Elite Excavating Company for performance and
completion of the Sanitary Sewer Extension Areas 4B & 4C as well as Water Line Extension
Areas 4B &4C and the Bright Road Cul -De -Sac for $2,588,607.70. The sanitary sewer
portion of this project is estimated to cost $1,364,917.
Ordinance Nos. 04-20 and 05-20 — Ordinances Providing for the Issuance and Sale of Bonds
January 14, 2020
Page 2 of 2
On August 26, 2019, City Council approved Ordinance 38-19 (2020-2024 CIP) authorizing
$4,500,000 in new debt be issued for Sewer Lining and Repair and the Deer Run Sewer
Upsizing, Group #1. On December 2, 2019, this authorization was appropriated in
Ordinance 71-19. Construction of these approved projects will begin in 2020.
Repayment of this debt will be from Sewer Fund revenues.
Bond proceeds authorized by these ordinances will be used to reimburse the General Fund for
advances made to fund these projects prior to the issuance of these bonds.
The bonds authorized by Ordinances 04-20 and 05-20 will be amortized over a 20 -year period.
Staff will be scheduling discussions with the rating agencies to occur in early February. We
currently expect pricing in mid-March.
Recommendation
Staff is requesting approval of Ordinances 04-20 and 05-20 at the second reading/public hearing
on February 10, 2020.
2020-2024
FIVE-YEAR CAPITAL IMPROVEMENTS PROGRAM
DEBT SERVICE PAYMENTS DUE
(Income Tax Supported Debt)
Debt Issue
2020
2021
2022
2023
2024
Service Complex expansion (2021)
$
277,758
$
179,863
$
-
$
-
$
-
Swimming Pool Construction (2025)
$
214,085
$
213,032
$
211,503
$
209,505
$
208,041
LED street lighting (2022)
$
265,825
$
263,775
$
265,200
$
-
$
-
3ustice Center Addition (2035)
$
780,294
$
780,294
$
781,994
$
781,369
$
779,619
Service Center Expansion (2037)
$
145,436
$
245,300
$
245,100
$
242,400
$
244,700
Historic District High Street/Pedestrian Bridge (2037)
$
2,012,150
$
2,016,350
$
2,013,750
$
2,011,650
$
2,014,150
Riverside Drive Park (2038)
$
137,619
$
134,619
$
136,619
$
134,994
$
138,044
Subtotal of Existing Income Tax Supported Debt
$
3,833,168
$
3,833,233
$
3,654,166
$
3,379,918
$
3,384,554
Reserve for TIF Supported Debt
Emerald Parkway - Phase 8
$
-
$
-
$
-
$
-
$
-
I270/US33/SR161 Interchange (ROW/Construction)
$
-
$
-
$
-
$
151,517
$
-
BSD Land Acquisitions for Roundabout
$
-
$
-
$
-
$
-
$
-
Riverside Dr. Realignment/Roundabout/Riverside Park (2035)
$
211,725
$
212,125
$
262,125
$
465,875
$
261,875
CML Library Parking Deck and Roads (2038)
$
596,961
$
761,353
$
1,294,519
$
1,291,269
$
1,288,919
Subtotal Reserve for TIF Supported Debt
$
808,686
$
973,478
$
1,556,644
$
1,908,661
$
1,550,794
Proposed New Debt
Riverside Crossing Park (2020)
$
1,120,000
$
1,120,000
$
1,120,000
$
1,120,000
$
1,120,000
Dublin Community Pool North (2020)
$
480,000
$
480,000
$
480,000
$
480,000
$
480,000
Riverside Crossing Park (2021)
$
$
280,000
$
280,000
$
280,000
$
280,000
Subtotal Proposed New Debt
$
1,600,000
$
1,880,000
$
1,880,000
$
1,880,000
$
1,880,000
Income tax revenue available for
debt retirement
$
13,392,855
$
13,526,784
$
13,662,051
$
13,798,672
$
13,936,659
Balance available
$
7,151,002
$
6,840,073
$
6,571,241
$
6,630,093
$
7,121,311
Amount of additional debt
that could be supported `
$
92,646,450
$
92,092,436
$
88,562,952
$
89,127,828
$
95,095,567
Estimated debt service obligations; Estimate assumes 20 year bonds at 5% and level payments
1 Funding not needed for debt service is utilized to fund cash basis projects.
2 The City's debt policy stipulates that for the pruposes of calculating debt capactiy, only 90% of the amount reserved for debt service may be programmed
Note - Payments include both principal and interest and fees, if applicable.
Highlighted rows indicate antmpated future debt.
2020-2024
FIVE-YEAR CAPITAL IMPROVEMENTS PROGRAM
DEBT SERVICE PAYMENTS DUE
(Debt Supported by Sources Other Than Income Tax)
Rings Road Improvements (2020)
$
281,181
$ -
$ -
$ -
$ -
Perimeter Drive extension (2020)
$
313,799
$ -
$ -
$ -
$ -
Emerald Parkway -Phase 7A (2020)
$
159,711
$ -
$ -
$ -
$ -
Industrial Parkway/SR 161 improvements
$
667,144
$ 661,119
$ 653,744
$ 653,744
$ 653,144
Emerald Parkway -Phase 8 (2033)
$
480,425
$ 481,275
$ 481,825
$ 482,075
$ 482,025
I-270/US 33/SR 161 Interchange -ROW (2023)
$
1,033,075
$ 1,037,375
$ 1,033,750
$ 1,034,800
$ -
I-270/US 33/SR 161 Interchange -Construction (2034)
$
1,019,469
$ 994,320
$ 968,410
$ 941,717
$ 914,218
BSD Land Acquisition for Roundabout (2019/2033)
$
392,800
$ 390,300
$ 392,650
$ 389,700
$ 391,600
Riverside Dr. Realignment/Roundabout/Riverside Park (2035)
$
1,841,725
$ 1,842,125
$ 1,842,125
$ 1,845,875
$ 1,841,875
Bridge Park Roadway Network (2035)
$
844,081
$ 845,081
$ 843,581
$ 845,081
$ 840,331
Bridge Park Parking Structures - Tax Exempt (2044)
$
718,231
$ 718,231
$ 718,231
$ 718,231
$ 718,231
Bridge Park Parking Structures -Taxable (2035)
$
1,352,925
$ 1,351,425
$ 1,347,683
$ 1,348,683
$ 1,347,683
John Shields Parkway Phase II (2036)
$
631,550
$ 630,300
$ 628,750
$ 631,900
$ 629,600
CML Library Parking Deck and Roads (2038)
$
821,961
$ 986,353
$ 1,519,519
$ 1,516,269
$ 1,513,919
$
10,558,078
$
9,937,904
$
10,430,268
$
10,408,075
$
9,332,626
Water and Sewer Funds
Dames Fields Water Tower (2029)
$
136,850
$
134,600
$
137,100
$
138,950
$
139,550
Dublin Road Water Tower (2032)
$
156,788
$
158,563
$
159,613
$
160,513
$
156,913
Sewer Line Repairs (2029)
$
150,738
$
148,263
$
150,513
$
152,063
$
152,263
Sewer Line Repairs (2032)
$
170,725
$
172,200
$
168,000
$
168,725
$
169,900
Sewer System Improvements (2035)
$
186,169
$
184,169
$
186,669
$
186,419
$
185,919
Sewer System Improvements/Extensions (2037)
$
100,300
$
103,300
$
101,100
$
100,000
$
103,900
Sewer System Improvements/Extensions (2038)
$
104,888
$
107,638
$
105,138
$
108,888
$
107,238
Sewer System Improvements (2040)
$
480,000
$
480,000
$
480,000
$
480,000
$
480,000
Sewer System Improvements/Extensions (2042)
$
-
$
-
$
120,000
$
120,000
$
120,000
Sewer System Improvements/Extensions (2044)
$
-
$
-
$
-
$
-
$
120,000
$
1,486,457
$
1,488,732
$
1,608,132
$
1,615,557
$
1,735,682
Special Assessments
Ballantrae improvements (2021)
$
129,323
$
83,743
$
-
$
-
-
Property Taxes (Inside millage)
Parkland acquisition -Coffman Park (2020)
$
207,000
$
-
$
-
$
-
$
-
Hotel/Motel Tax Revenues
Arts Facility (2020)
$
166,460
$
-
$
-
$
-
$
-
Total - Non -Income Tax Supported Debt
$
12,547,318
$
11,510,380
$
12,038,400
$
12,023,633
$
11,068,308
Highlighted rows indicate
antmpated future debt.
Est, ated debt service ob/igatrons are based on 20 year bands at 5% and /eve/ payments.
Exhibit B
2020 - 2024 Five -Year Capital Improvement Program
Debt Metric Analysis
Metric 1 General Fund balance as percent of expenditures
Guideline: General fund Balance > 50% of operating expenditures
Date GF Balance as% of Meets Guideline
Expenditures (Yes/No)?
December 31, 2019 71.9% Yes
Metric 2 General Fund balance as a percent of debt service requirements
Guideline: General Fund Balance in excess of 50% reserve requirement > 50% of debt
service payments for upcoming year
GF Balance Amount in excess of 50% of Debt Service Meets Guideline (Yes/No)?
50% requirement Payments
2020 $49,645,656 $15,115,966 $3,170,859 Yes
Metric 3
Metric 4
*General Fund Balance based on 2019 ending balance
General Fund balance as a percent of revenue - Five -Year Trend
Guideline: % change in General Fund balance over five years > 0%
n..e % Change in GF Meets Guideline
December 31, 2018 11.1% Yes
December 31, 2019 -16.5% No
Average 14.7% Yes
Income tax supported debt to operating revenue
Guideline: Debt to operating revenue < 10%
December 31, 2019 2020 Debt Service % of Debt Service
Operating Revenue Payments Payments to Operating Meets Guideline (Yes/ No)?
Revenue
$92,513,704 $6,341,717 6.85% Yes
of Debt Service
Operating Revenue* Debt Service Payments Payments to Operating Meets Guideline (Yes/ No)?
Revenue
2020
$92,467,309
$6,341,717
6.86%
Yes
2021
$92,467,309
$6,686,711
7.23%
Yes
2022
$92,467,309
$7,090,810
7.67%
Yes
2023
$92,467,309
$7,168,579
7.75%
Yes
2024
$92,467,309
$6,815,348
7.37%
Yes
*Assumes constant operating revenue during five-year period
Exhibit B
2020 - 2024 Five -Year Capital Improvement Program
Debt Metric Analysis
(Excluding the $15.5 million in advances to be repaid to the General Fund with bond proceeds)
Metric 1A General Fund balance as percent of expenditures
Guideline: General fund Balance > 50% of operating expenditures
Date GF Balance as% of Meets Guideline
Expenditures (Yes/No)?
December 31, 2019 94.3% Yes
Metric 2A General Fund balance as a percent of debt service requirements
Guideline: General Fund Balance in excess of 50% reserve requirement > 50% of debt
service payments for upcoming year
GF Balance Amount in excess of 50% of Debt Service Meets Guideline (Yes/No)?
50% requirement Payments
2020 $65,145,656 $ 30,615,966 $3,170,859 Yes
*General Fund Balance based on 2019 ending balance and the repayment of advances
Metric 3A General Fund balance as a percent of revenue - Five -Year Trend
Guideline: % change in General Fund balance over five years > 0%
n..e % Change in GF Meets Guideline
December 31, 2018 11.1% Yes
December 31, 2019 6.0% Yes
Average 19.2% Yes
Metric 4A Income tax supported debt to operating revenue
Guideline: Debt to operating revenue < 10%
Advance from General Fund at the end of 2019 does not change this metric.
FISCAL OFFICER'S CERTIFICATE
To the City Council of the City of Dublin, Ohio:
As fiscal officer of the City of Dublin, Ohio, I certify in connection with your proposed
issue of bonds in the maximum principal amount of $6,000,000 (the "Bonds"), to be issued for
the purpose of paying the costs of improving the municipal sanitary sewer system by extending
certain sewer lines, repairing and lining certain existing sewer lines, and installing a new pump
station and force main, together with all incidental work and related appurtenances thereto (the
"Improvement"), that:
years.
The estimated life or period of usefulness of the Improvement is at least five (5)
2. The maximum maturity of the Bonds,
Section 133.20 of the Revised Code, is at least twenty (20) years.
calculated in accordance with
Dated: I ho , 2020