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HomeMy WebLinkAbout027-90 Ordinance - ORDINANCE NO, 27-90 AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $2,200,000 NOTE S , 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. 104-89 passed November 20, 1989, notes in anticipation of bonds in the amount of $2,200,000, dated December 7, 1989, were issued for the purpose stated in Section 1, to mature on AprilS, 1990; 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 period of usefulness of the improvement described in Section 1 is at least five years, the estimated 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; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, Franklin, Union and Delaware Counties, Ohio, that: Sect ion 1. It is necessary to issue bonds of this City j n 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 December 1, 1990, shall bear interest at the now estimated rate of 7-1/2% per year, payable semi-annually until the principal amount is paid, and are estimated to mature in 20 annual principal installments that are substantially equal. 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 December 7, 1989. 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. If requested by the original purchaser, the Notes may provide that, in the event the City does not payor make provision for payment at maturity of the debt charges on the Notes, the principal amount of the Notes shall bear interest at a different rate or rates not to exceed 10% per year from the maturity date until the City pays or makes provision to pay that principal amount, 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 debt charges 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, and 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 principal office of Bank One, Columbus, N. A. , 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 their date of issuance, and shall mature on December 13, 1990. - 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. 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 no Note shall be issued in a denomination less than $100,000 or exchanged for other Notes in denominations less than $100,000, The entire princ ipal amount of the Notes may be represented by a single note. The Notes shall not have coupons attached, shall be numbered as determined by the Director of Finance and shall express upon their faces the purpose, in summary terms, for which they are issued and that they are issued pursuant to this ordinance, Section 6, The Notes shall be sold at not less than par at private sale by the Director of Finance in accordance with law and the provisions of this ordinance. The 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. The Director of Finance is authorized, if it is determined to be in the best interest of the City, to combine the issue of Notes with one or more other note issues of the City into a consolidated note issue pursuant to Section 133.30(B) of the Revised Code, 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 renewal notes and any excess funds resulting from the issuance of the Notes shall, to the extent necessary, be used to pay the debt charges 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 1 imitation 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 Notes or the Bonds when and as the same fall due, To the extent necessary, the debt charges on the Notes and the Bonds in anticipation of which the Notes are issued shall be paid from municipal income taxes lawfully available therefore under the constitution and laws of the State of Ohio; and the City hereby covenants, subject and pursuant to such authority, inc1 ud ing particularly Sections 133.05(B)(7) and 5705,51(A)(5) and (D) , Revised Code, to appropriate annually from such municipal income taxes such amount as is necessary to meet such annual debt charges, Nothing in this section 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 Notes. 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 under Section 148 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, - 2 - - 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, (i) apply the proceeds of the Notes to the governmental purpose of the borrowing, (ii) 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. Each such officer is further authorized to make or effect any election, selection, choice, consent, approval, or waiver on behalf of the City with respect to the Notes as the City is permitted or required to make or give under the federal income tax laws, for the purpose of assuring, enhancing or protecting favorable tax treatment or characterization of the Notes 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 of penalties thereon, or making payments in lieu thereof, or obviating such amounts or payments, as determined by such officer, Any such action of such officer shall be in writing and signed by the officer, The City hereby represents that the $2,200,000 notes dated December 7, 1989 (the Refunded Obligations) are treated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code, The City hereby covenants that it will redeem the Refunded Obligations from proceeds of, and within 90 days after issuance of, the Notes, and represents that all other conditions are met for treating the Notes as "qual if ied tax-exempt obligations" and as not to be taken into account under subparagraph (D) of Section 265(b)(3) of the Code, without necessity for further designation, by reason of subparagraph (D)(ii) of Section 265(b)(3) of the Code. 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 the formation of, or benefited from or availed itself of, any entity 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 the formation of, or bene fit from or avail itself 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 I!. 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 Counc il 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 and credit and general property taxing power (as described in Section 9) of the City are pledged for the timely payment of the debt charges on the Notes; and that no statutory or constitutional limitation of indebtedness or taxation will have been exceeded in the issuance of the Notes, Section 13, This Counc il 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 - 3 - - 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, Attest: _~~.C(./d.~ Clerk of Council Passed: March 19, 1990 19 Effective: March , 1990 - I, Frances M. Urban Clerk of CouncH, hereby certify that the foregoing is a true copy of Ord:na.,(e/~~~ t1-1, -'!2-9O duly adopted by the Coundl of the City of D'Jbl'n, Oh:o, on the 1 q.-h day of March , 1990 J~/k1 YJ}, ~ Clerk of Council, Dublin, Ohio t.".. I hereby certify fhat cop~ss of t~::; Ord',vnLr,l:?"n!""~;;) ware posted in the City of Dublin in accord:r:::: w:th Sert:on 731.25 of i'he Ohio Revised Code. -::/~;4 >?;,~ Clerk of CoulKiI, Dublin, Ohio ... . ...;I ~,~ A.h", '" - 4 - SUPPLEMENTAL FISCAL OFFICER'S CERTIFICATE To the Council of the City of Dublin, Ohio: As fiscal officer of the City of Dublin, and supplementing my certificate of November 20, 1989, I certify in connection with your proposed issue of $2,200,000 notes (the Notes), to be issued in anticipation of the issuance of bonds (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 (the improvement), that: l. The estimated life or period of usefulness of the improvement is at least five years. 2. The estimated maximum maturity of the Bonds, calculated in accordance with Section 133.20 of the Revised Code, is forty years. If notes in anticipation of the Bonds are outstanding for a period in excess of five years from the date of the original issue of notes, the period in excess of five years shall be deducted from that maximum maturity of the Bonds. 3. The maximum maturity of the Notes is July 21, 2007. Dated: March 19, 1990 ~,"k#-L ~' ~'\--, Dire tor of Finan (J City of Dublin, Ohio