Loading...
HomeMy WebLinkAbout077-87 Ordinance ORDINANCE NO. n _ 87 - AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $113,323 BONDS FOR THE PURPOSE OF PAYING THE PROPERTY OWNERS' PORTION, IN ANTICIPATION OF THE COLLECTION OF SPECIAL ASSESSMENTS HERETOFORE LEVIED, FOR THE PURPOSE OF CONSTRUCTING A WATER LINE AND APPURTENANCES THERETO ON SHIER-RINGS ROAD FROM THE INTERSECTION OF DUBLIN INDUSTRIAL LANE TO WILCOX ROAD THENCE NORTHERLY ALONG THE EAST SIDE OF WILCOX ROAD APPROXIMATELY 600 FEET IN THE VILLAGE OF DUBLIN, OHIO, AND DECLARING AN EMERGENCY. WHEREAS, this Council has previously by proper legislation declared the necessity of the improvement described in Section 1, caused the construction of that improvement to be completed and levied special assessments therefor; and WHEREAS, this Council has determined that the total estimated final cost of that improvement will be not less than $113,323; and WHEREAS, pursuant to Ordinance No. 63-87 passed June 1, 1987, a note in anticipation of bonds in the amount of $99,000, dated June 17, 1987 (the 1987 Notes), was issued for the purpose of paying the property owners' portion, in anticipation of the levy and collection of special assessments, for the purpose of constructing a water line and appurtenances thereto on Shier-Rings Road from the intersection of Dublin Industrial Lane to Wilcox Road thence northerly along the east side of Wilcox Road approximately 600 feet in the Village of Dublin, Ohio, to mature on October 16, 1987; and WHEREAS, this Council finds and determines it to be in the best interest of the Village to retire at maturity the outstanding note with the proceeds of the bonds described in Section 1 and to provide an additional $14,323 for the purpose stated in Section 1; and WHEREAS, the Director of Finance as fiscal officer of this Village has certified to this Council that the estimat~d life or usefulness of the improvement described in Section 1 is at least five years and the maximum maturity of the bonds referred to in Section 1 is twenty years; NOW, THEREFORE, BE IT ORDAINED by the Council of the Village of Dublin, Franklin, Union and Delaware Counties, OhiO, that: Section 1. It is necessary to issue bonds of this Village (the Bonds) in the aggregate principal amount of $113,323 for the purpose of paying the property owners' portion, in anticipation of the collection of special assessments heretofore levied, for the purpose of constructing a water line and appurtenances thereto on Shier-Rings Road from the intersection of Dublin Industrial Lane to Wilcox Road thence northerly along the east side of Wilcox Road approximately 600 feet in the Village of Dublin, OhiO. Section 2. The Bonds shall be issued in one lot and only as fully registered Bonds registered as to both principal and interest, in the denominations of $1,000 or any integral multiple thereof but not exceeding the principal amount of Bonds maturing on anyone date and except that one Bond, but only one Bond, bearing a December 1, 1988 maturity, shall be issued in the denomination of $323 or be a denomination equal to the heretofore authorized denominations plus $323; and shall be dated as of September 1, 1987. :'\'l:"V'! The Bonds shall bear interest at the rate of 8% per annum, payable on June 1 and December 1 of each year (the Interest Payment Dates), commencing June 1, 1988, until the principal amount has been paid or provided for. However, if the Bonds are sold bearing a different rate of interest than stated above, the Bonds shall bear that rate of interest as specified in the ordinance of Council providing for the award of the Bonds. 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 September 1, 1987. The Bonds shall mature as follows: $5,323 on December 1 in the year 1988, $5,000 on December 1 in each of the years from 1989 through 1994, and $6,000 on December 1 in each of the years from 1995 through 2007, which maturities are determined to be in substantially equal annual installments. The Bonds shall express on their faces the purpose for which they are issued and that they are issued pursuant to this ordinance. Section 3. The Bonds shall be signed by the Director of Finance, as Director of Finance and ACting City Manager, and by the Clerk of Council, in their official capacities (either or both of those signatures may be a facsimile), and shall bear the corporate seal of the Village or a facsimile of that seal. No Bond shall be valid or obligatory for any purpose or shall be entitled to any security or benefit under this ordinance unless and until the certificate of authentication printed on the Bond is signed by the Bond Registrar (as defined in Section 4 below) 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 this ordinance and is entitled to the security and benefit of this ordinance. 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 Village. The same person need not sign the certificate of authentication on all of the Bonds. Section 4. An authenticating agent, bond registrar, transfer agent and paying agent (collectively, the Bond Registrar) for the Bonds shall be appointed by this Council. The Director of Finance shall sign and deliver, in the name and on be h a 1f of the Village, the Bond Registrar Agreement between the Village and the Bond Registrar (the Agreement) in substantially the same form as is now on file with the Clerk of Council. The Agreement is approved, together with any changes or amendments that are not inconsistent with this ordinance and not substantially adverse to the Village and that are approved by the Director of Finance on behalf of the village, all of which shall be conclusively evidenced by the signing of the Agreement or amendments to the Agreement. The Director of Finance shall provide for the payment of the services rendered and for reimbursement of expenses incurred pursuant to the Agreement from the proceeds of the Bonds to the extent available and then from other funds lawfully available and appropriated or to be appropriated for that purpose. Section 5. The principal of and interest 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 shall be payable when due upon presentation and surrender of the Bonds at the main 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 Register (as defined in Section 6 below) at the close of business on , calendar month next preceding that Interest Payment the 15th day of the Date (the Record Date). Section 6. So long as any of the Bonds remain outstanding, the Village will cause the Bond Registrar to maintain and keep at its main office all books and records necessary for the registration, exchange and - 2 - ---... transfer of Bonds as provided in this Section (the Bond Register). Subject to the provisions of Section 5 above, 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 this ordinance. Payment of or on account of the principal of and interest on any Bond shall be made only to or upon the order of that person; neither the Village nor the Bond Registrar shall be affected by any notice to the contrary, but the registration may be changed as provided in this Section. All such payments shall be valid and effectual to satisfy and discharge the Village's liability upon the Bond, including interest, to the extent of the amount or amounts so paid. Any Bond may be exchanged for Bonds of any authorized denomination upon presentation and surrender at the main 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 the Bond at the main office of the Bond Registrar together with an assignment executed 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 Village 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 Village. In all cases of exchanged or transferred Bonds, the Village shall sign and the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of this ordinance. The exchange or transfer shall be without charge to the owner, except that the Village 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 Village 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 upon any exchange or transfer shall be valid obligations of the Village, evidencing the same debt, and entitled to the same security and benefit under this ordinance as the Bonds surrendered upon that exchange or transfer. Any Bond surrendered to the Bond Registrar for payment, retirement, exchange, replacement or transfer shall be cancelled by the Bond Registrar. The Village may at any time deliver to the Bond Registrar for cancellation any previously authenticated and delivered Bonds that the Village may have acquired in any manner whatsoever, and those Bonds shall be promptly cancelled by the Bond Registrar. Wr it ten reports of the surrender and cancellation of Bonds shall be made to the Director of Finance of the Village by the Bond Registrar at least twice each calendar year. The cancelled Bonds shall be retained for a period of time and then returned to the Village or destroyed by the Bond Registrar as directed by the Director of Finance in accordance with the Agreement. Section 7. The Bonds are offered at par and any accrued interest to the Director of Finance, as off icer in charge of the Bond Retirement Fund of the Village. Bonds not purchased for the Bond Retirement Fund or for other funds of the Village shall be advertised for publiC sale and sold in accordance with law and the provisions of this ordinance. The Director I of Finance shall cause the Bonds to be prepared and, following their sale, shall have the Bonds 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. - 3 - Section 8. The proceeds from the sale of the Bonds, 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 Bonds are being issued. Any portion of those proceeds representing premium and accrued interest shall be paid into the Bond Retirement Fund to be applied to the payment of the principal of and interest on the Bonds in the manner provided by law. Section 9. All special assessments collected for the improvement described in Section 1, and any unexpended balance remaining in the improvement fund after the cost and expenses of that improvement have been paid, shall be used for the payment of the principal of and interest on the Bonds until paid in full and shall be used for no other purpose. In the event and to the extent that those special assessments are not collected there shall be levied on all the taxable property in the Village, in addition to all other taxes, a direct tax annually during the period the Bonds are outstanding in an amount sufficient to pay the principal of and interest 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 principal of and interest on the Bonds when and as the same fall due. However, in each year to the extent the income from the levy of special assessments for the improvement is available for the payment of principal of and interest on the 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 Village covenants that it will restrict the use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary so that the Bonds 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 Village having responsibility for the issuance of the Bonds, shall give an appropriate certificate of the Village, for inclusion in the transcript of proceedings for the Bonds, setting forth the reasonable expectations of the Village 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 interest on the Bonds. The Village covenants that it (a) will take or cause to be taken such actions which may be required of it for the interest on the Bonds to be and remain excluded from gross income for federal income tax purposes, and (b) Will not take or permit to be taken any actions which 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 Bonds 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, (1v) maintain books and records and make calculations and reports, (v) refrain from certain uses of 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 hereby 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. - 4 - t/..Ji' Section 11. The Village hereby designates the $99,000 Shier-Rings Waterline Note dated August 14, 1986 and discharged June 17, 1987 (the 1986 Note) as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code. The Village hereby represents that the 1986 Note which was refunded by the outstanding 1987 Note was a "qualified tax exempt obligation" as described in Section 265(b)(3) of the Code, (i) having been issued during the calendar year 1986 in which the Village did not reasonably expect to and did not issue more than $10,000,000 principal amount of tax-exempt obligations, excluding private activity bonds other than qualified 501(c)(3) bonds, as those terms are defined for purposes of Section 265(b)(3), and (ii ) the 1986 Note having been designated as a "qualified tax-exempt obligation" by this Council. Accordingly, pursuant to Section 109(b)(5)(A) of the Technical Corrections Act of 1987 (H.R. 2636 and S. 1350, 100th Congress, First Session, as it may be enacted or amended, herein called the Technical Corrections Act of 1987) and the election pursuant to Section 109(b)(5)(B), as set forth below, the 1987 Note and the Bonds (to the extent that the proceeds of the Bonds represent a refunding of the 1987 Note) shall be treated as designated and as "qualified tax-exempt obligations" and not taken into account under Section 265(b)(3)(D) of the Code, without necessity for further designation. Thie Village redeemed the 1986 Note within 90 days after issuance of the 1987 Note, hereby covenants to redeem the 1987 Note within 90 days after issuance of the Bonds, and represents that all other conditions for such treatment are met. Solely for the purpose of providing further assurance that the Bonds are qualified tax-exempt obligations, but without adverse consequences to not taking into account the principal amount of the Bonds (to the extent that the proceeds of the Bonds represent a refunding of the 1987 Note) against the $10,000,000 limit of obligations that may be designated as qualified tax-exempt obligations if, by reason of amendments to the Code by the Technical Corrections Act of 1987, or by reason of any other legislation, regulation, ruling or official announcement, the Bonds may be deemed to be qualified tax-exempt obligations without being taken into account for purposes of the $10,000,000 limi t under Section 265(b)(3)(D) of the Code, the Village designates the Bonds and covenants with respect thereto as follows until the Technical Corrections Act of 1987 or such other legislation, regulation, ruling or official announcement, with the effect aforesaid is enacted or promulgated: The Bonds are hereby designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code. In that connection, the Village represents and covenants that it (it having no subordinate entities with authority to issue obligations within the meaning of that Section of the Code), in or during the calendar year in which the Bonds are issued, (1) has not issued and will not issue tax-exempt obligations other than those which are not to be taken into account for purposes of Section 265(b)(3)(C) of the Code in an aggregate principal amount exceeding $10,000,000, (including the Bonds), (ii) has not designated and will not designate as "qualified tax-exempt obligations" for purposes of that Section 265(b)(3) obligations (other than those which are not to be taken into account for purposes of Section 265 (b) ( 3 )( D) of the Code) , in an aggregate principal amount exceeding $10,000,000, and (iii) during the calendar years in which the 1986 Note and the 1987 Note were issued and in which the Bonds are issued, the Vi llage did not issue and will not issue obligations (of the type to which Section 265(b)(3) of the Code applies) on behalf of any other entity, and no other entity has issued or will be authorized to issue obligations (of such type) on behalf of or for the use of the village. Pursuant to Section 109(b)(5)(B) of the Technical Corrections Act of 1987 the Vi llage hereby elects to have the provisions of Section 109(b)(5){A) of such Act applied to the village as if included in Section 902(a) of the Tax Reform Act of 1986, and covenants that it will take or cause to be taken all actions as may be necessary to confirm, effectuate or - 5 - .......-c. perfect the election under such Section lO9(b)(5)(B). The Village elects, pursuant to subparagraph (C) of Section ll3(a)(l7) of the Technical Corrections Act of 1987 to have amendments made by paragraph 17 of such Section 113(a) of that Act apply to this Village as if included in the amendments made by Section 1301(a) of the Tax Reform Act of 1986. Section 12. 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 13. This Council determines that all acts and conditions necessary to be performed by the Village 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 Village 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, credit and revenues of the Village are pledged for the timely payment of the principal of and interest on the Bonds; and that no statutory or constitutional limitation of indebtedness or taxation Will have been exceeded in the issuance of the Bonds. Section 14. 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 deliberations of this Council and of any committe~s that resulted in those formal actions were in meetings open to the publiC, in compliance with all legal requirements. Section 15. ThiS ordinance is declared to be an emergency measure necessary for the immediate preservation of the publiC peace, health, safety or welfare of the Village, and for the further reason that the immediate effectiveness of this ordinance is required in order to effect issuance and sale of the Bonds which is necessary to enable the Village to retire the outstanding note and thereby preserve its credit; wherefore, this ordinance shall be in full force and effect immediately upon its passage. ~ Presiding Officer Attest: /J 74~! "-~. J Clerk of Council Passed: July 6, 1987 Effective: July 6, 1987 I hereby certify that copies of this Ordinance/Resolution were posted in the Village of Dublin in accordance with Section 731.25 of the Ohio Revised Code. - fM~ >>;. ?:t-~ Clerk of Council - 6 - SUPPLEMENTAL FISCAL OFFICER'S CERTIFICATE To the Council of the Village of Dublin, Ohio: As fiscal officer of the Village of Dublin, Ohio, and supplementing my certificate of June 1, 1987, I certify in connection with your proposed issue of $113,323 bonds (the Bonds) for the purpose of paying the property owners' portion, in anticipation of the collection of special assessments heretofore levied, for the purpose of constructing a water line and appurtenances thereto on Shier-Rings Road from the intersection of Dublin Industrial Lane to Wilcox Road thence northerly along the east side of Wilcox Road approximately 600 feet in the Village of Dublin, Ohio, that: l. The estimated life or usefulness of the improvement described above is at least five years. 2. The maximum maturity of the Bonds, calculated in accordance With Section 133.20 of the Revised Code, is forty years but because the special assessments Will be payable over a period of twenty years and the Bonds are to be issued in anticipation of the collection of those special assessments, the maximum maturity of the Bonds is twenty years. ~ -~ r ' .~. _ , Dated: July 6, 1987 j .. ~:c..~_ ~ .A.A..'\...~O. Director of rinance Village of Dublin, OhiO