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HomeMy WebLinkAbout115-88 Ordinance .~ lit- .. - ORDINANCE NO. 115-88 AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $2,200,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF IMPROVING THE MUNICIPAL WATER SYSTEM BY CONSTRUCTING AN ELEVATED WATER STORAGE TANK AND RELATED FACILITIES, TOGETHER WITH ALL NECESSARY APPURTENANCES THERETO, AND DECLARING AN EMERGENCY. WHEREAS, pursuant to Ordinance No. 65-88 passed June 20, 1988, notes in anticipation of bonds in the amount of $2,200,000, dated July 20, 1988, were issued for the purpose stated in Section 1, to mature on December 9, 1988; and WHEREAS, this Council finds and determines that the City should retire the outstanding notes with the proceeds of the Notes described in Section 3; and WHEREAS, the Director of Finance, as fiscal officer of this City has certified to this Council that the estimated life or usefulness of the improvement described in Section 1 is at least five years, the maximum maturity of the bonds described in Section 1 is 40 years, and the maximum maturity of the Notes described in Section 3, to be issued in anticipation of the bonds, is July 21, 2007, or one year if sold at private sale; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of DublIn, Franklin, Union and Delaware Counties, Ohio, that: Section 1. It is necessary to issue bonds of this City in the aggregate principal amount of $2,200,000 (the Bonds) for the purpose of paying costs of improving the municipal water system by constructing an elevated water storage tank and related facilities, together with all necessary appurtenances thereto. Section 2. The Bonds shall be dated approximately May 1, 1989, shall bear interest at the now estimated rate of 9% per year, payable semi-annually until the principal amount is paid, and shall mature in 30 substantially equal annual installments. Section 3. It is necessary to issue and this Council determInes that notes in the aggregate principal amount of $2,200,000 (the Notes) shall be issued in anticipation of the issuance of the Bonds and to retire the outstanding notes dated July 20, 1988. The Notes shall bear interest at a rate or rates not to exceed 10% per year (computed on a 360-day per year basis), payable at maturity and until the principal amount is paid or payment is provided for. The rate or rates of interest on the Notes shall be determined by the Director of Finance in the certificate awarding the Notes in accordance with Section 6 of this ordinance. Section 4. The princ ipa1 of and interest on the Notes shall be payable in lawful money of the United States of America, or in Federal Reserve funds of the United States of America if so requested by the original purchaser. The prine ipal of and interest on the Notes shall be payable, without deduction for services of the City's paying agent, at either or both of, as determined by the Director of finance, the office of The Huntington National Bank, Columbus, Ohio, or at the principal office of a bank or trust company requested by the original purchaser of the Notes, provided that such request shall be approved by the Director of finance after determining that the payment at that bank or trust company will not endanger the funds or securities of the City and that proper procedures and safeguards are available for that purpose (the Paying Agent) . The Notes shall be dated December 8, 1988, and shall mature on June 8, 1989. Section 5. The Notes shall be signed by the City Manager and Director of Finance, in the name of the City and in their official capacities, provided that one of those signatures may be a facsimile, and bear the corporate seal of the City or a facsimile of that seal. The Notes shall be issued in the denominations and numbers as requested by the original purchaser and approved by the Director of Finance, provided that the entire principal amount may be represented by a single note. The Notes shall not have coupons .....~. .... d . .- - attached, shall be numbered as determined by the Director of Finance and shall express upon their faces the purpose for which they are issued and that they are issued pursuant to this ordinance. Section 6. The Notes are offered at par and accrued interest, if any, to the Director of Finance, as officer in charge of the Bond Retirement Fund of the City. Notes not purchased for the Bond Retirement Fund or for other funds of the City shall be sold at private sale by the Director of Finance in accordance with law and the provisions of this ordinance. Thfl Director of Finance shall sign the certificate of award referred to in Section 3 evidencing that sale, cause the Notes to be prepared, and have the Notes signed and delivered, together with a true transcript of proceedings with reference to the issuance of the Notes if requested by the original purchaser, to the original purchaser upon payment of the purchase price. Section 7. The proceeds from the sale of the Notes, except any premium and accrued interest, shall be paid into the proper fund or funds and those proceeds are appropriated and shall be used for the purpose for which the Notes are being issued. Any portion of those proceeds representing pre- mium and accrued interest shall be paid into the Bond Retirement Fund. Section 8. The par value to be received from the sale of the Bonds or of any ranewal notes and any excess funds resulting from the issuance of the Notes shall, to the extent necessary, be used to pay the principal of and interest on the Notes at maturity and are pledged for that purpose. Section 9. During the year or years in which the Notes are out- standing, there shall be levied on all the taxable property in the City, in addition to all other taxes, the same tax that would have been levied if the Bonds had been issued without the prior issuance of the Notes. 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 principal of and interest on the Notes or the Bonds when and as the same fall due. In each year to the extent the income from the City's waterworks system is 'available for the payment of the principal of and interest on the Notes and Bonds and is appropriated for that purpose, the amount of the tax shall be reduced by the amount of the income so available and appropriated. Section 10. The City covenants that it will restrict the use of the proceeds of the Notes in such manner and to such extent, if any, as may be necessary so that the Notes will not constitute arbitrage bonds undor Soction 146 of the Internal Revenue Code of 1986, as amended (the Code). The DIrector of Finance, as the fiscal officer, or any other officer of the CIty havIng responsibility for the issuance of the Notes shall give an appropriate certificate of the City, for inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations of the City regarding the amount and use of all the proceeds of the Notes, the facts, circumstances and estimates on which they are based, and other facts and circumstances relevant to the tax treatment of the interest on the Notes. The City covenants that it (a) will take or cause to be taken such actions that may be required of it for the interest on the Notes to be and remain excluded from gross income for federal income tax purposes, and ( b) will not take or authorize to be taken any actions that would adversely affect that exclusion, and that it, or persons acting for it, will, among other acts of compliance, (1) apply the proceeds of the Notes to the governmental purpose of the borrowing, ( 11) restrict the yield on investment property acquired with those proceeds, (iii) make timely rebate payments to the federal government, (iv) maintain books and records and make calculations and reports, and (v) refrain from certain uses of those proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest under the Code. The Director of Finance and other appropriate officers are authorized and directed to take any and all actions, make calculations and rebate payments, and make or give reports and certifications, as may be appropriate to assure such exclusion of that interest. - 2 - '<~, , " The Notes are hereby designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code. In that connection, the City hereby represents and covenants that it, together with all its subordinate entities or other entities which issue obligations on its behalf, or on behalf of which it issues obligations, in or during the calendar year in which the Notes are issued, (i) will not issue tax-exempt obligations designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code, including the Notes, in an aggregate principal amount in excess of $10,000,000, and (ii) does not reasonably anticipate issuing and will not issue tax-exempt obligations (including the Notes, but excluding obligations, other than qualified 501(c)(3) bonds as defined in Section 145 of the Code, that are private activity bonds as defined in Section 141 of the Code) in an aggregate principal amount exceeding $10,000,000 unless the City first obtains a written opinion of nationally recognized bond counsel that such designation or issuance, as applicable, will not adversely affect the status of the Notes as "qualified tax-exempt obligations". Further, the City represents and covenants that, during any time or in any manner as might affect the treatment of the Notes as "qualified tax-exempt obligations", it has not formed or participated in or benefited from the formation of any entity formed in order to avoid the purposes of subparagraph (C) or (D) of Section 265(b)(3) of the Code, and will not form, participate in or benefit from the formation of any such entity. The City further represents that the Notes are not being issued as part of a direct or indirect composite issue that combines issues or lots of tax-exempt obligations of different issuers. Section 11. The Clerk of Council is directed to deliver a certified copy of this ordinance to the County Auditors of Franklin, Union and Delaware Counties. Section 12. 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 Notes 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 Notes have been performed and have been met, in regular and due form as required by law; that the full faith, credit and revenues of the City are pledged for the timely payment of the principal of and interest on the Notesl and that no statutory or constitutionul Ilmltntlon of indebtedness or taxation will have been exceeded in the issuance of the Notes. Section 13. This Council finds and determines that all formal actions of this Council concerning and relating to the passage of this ordinance were taken in an open meeting of this Council and that all delibera- tions of this Council and of any committees that resulted in those formal actions were in meetings open to the public in compliance with the law. Section 14. This ordinance is declared to be an emergency measure necessary for the immediate preservation of the public peace, health, safety or welfare of the City, and for the further reason that this ordinance is required to be immediately effective in order to issue and sell the Notes, which is necessary to enable the City to timely retire the outstanding notes and thereby preserve its credit; wherefore, this ordinance shall be in full force and effect immediately upon its passage. I, F.T<>~(,RS M. Urban Clerk of (ound!, hereby certify that the foregOing IS 0 true copy cf Ord:na~~e/ik1Obtie){ no, _115-88 duly adopted by the Coundl of tbo C!J' cf O~;b!:n, O:lio, C:1 the 21st day of November 1988 , . ,~~J '-/1 Zf~ Attest: J~Y~, 'Z(~ Clerk of (ouodl, Dub!:n, Ohio Clerk of Councl.l Passed: November,Jl, 1988 Effective: November 4/.., 1988 ',hereby .cer~if~ th~t cc,pies of .this Or~;mmre/Resol!Jtion were posted in ~he City of Dubhn In o\.coruance w;tn Seeton 731.25 of the ~io Revised Code, ~~.~ lerk of Council, Du lin, Ohio - 3 -