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HomeMy WebLinkAbout065-89 Ordinance .''\ OHDINANCE NO. 65-89 AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $1,550,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF IMPROVING THE MUNICIPAL WATER SYSTEM BY CONSTRUCTING AND INSTALLING WATER MAINS, FIRE HYDRANTS, WATER SERVICE CONNECTIONS AND A BOOSTER PUMPING STATION, TOGETHER WITH ALL NECESSARY APPURTENANCES, AND DECLARING AN EMERGENCY. WHEREAS, this Councii has requested that the Director of Finance, /IS fiscal officer, cort ify tho ostimuted life or use[ulnnsB or 1.110 Imp rovnlllOll I ((cHlcribod In SectIon 1 and the maximum maturity of the Bonds descrIbed In Section 1 Elnd the Notes descrlbod In Snct Ion '\ , to bo ISH\lnd III /lllllclp/ltlllll or the bonds; and WHEREAS, the Director of Finance has certified that the estimated 1 He of that improvement is at least five years and that the maximum maturity of the bonds is 40 years, and the maximum maturity of the notes is twenty years, 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 C lty in the aggre- gate princIpal amount of $1,550,000 (the Bonds) for Lhe purpose of p/lylng costs of lmproving UlO munlcJplIl water system by constructJng and insLlIJIlng water mains, fire hydrants, water service connections and a booster pumping station, together with all necessary appurtenances. Section 2. The Bonds shall be dated approximately December 1, 1989, shall bear interest at the now estimated rate of 7-1/2% per year, payable semi-annually until the prine ipal amount is paid, and shall mature in 20 substantially equal annual installments. Section 3. It is necessary to issue and this Councii determines that notes In the aggregate principal amount of $1,550,000 (the Notes) shall be issued in anticipation of the issuance of the Bonds. The NoLes sl1ull bo ill' lnterost at a rate or rates not to exceed 10% per year (computed on u 360-duy per year basis), payable at maturity and until the principal amounL is paid or payment is provided for. If required by the original purchaser, the Notes may provide that, in the event the City does not payor make provision for payment at maturity, 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 prine ipal 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 principal 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 principal office of Bank One, Columbus, N. A. , Columbus, Ohio, or 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 adequately protect the funds of the City and that proper procedures and safeguards are available for that purpose (the Paying Agent) . The Notes shall be dated the daLe ot' issuance and shall mature on December 8, 1989. Soctlon 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 '" -2- 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 tho Clty. Not.e:, not purchased [or the Bund He t i ["Olllon t Jo'llllU Uj' fur other funds of the City shall be sold at private sale by tho Diroctor of Finnnce In nccordllncrl W II.h IIIW IInd Uw provlAlonn of I II 111 orcllllllllcO. Tho DII-octor of ll'lnuncc shull 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 froln the sale of l.he Bonds or of any renewal notes and any excess funds resultIng from Ilw I /w \III n C 0 of the Notes shall, to the extent necessary, be used to pay the principai 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 nnd collected by the same offIcers, In the same manner, and at the same L i lTIe l.Ilal t Ilxes i" (t r general purposes for each of those years are certified, ievied, extended and collected, and sha 11 be placed before and in preference Lo all utller itellls and for tho 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 wi 11 not constitute arbitrage bonds under Sect ion 148 of the Internal Revenue Code of 1986, as amended (the Codrl). The DirccLol- 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 affecL 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, (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. . , -3- 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, (1) will not issue tax-exempt obligations designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of I he Code, including the Notes, in an aggregate principal amounL in eXCOSH or $10,000,000, and (11 ) does not reasonably anticipate isslIlnl'. /lncl will no I issue tax-oxempt obligations ( including the Notes, but excluding obllgaLlons, 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 "qual if ied 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 wi 11 not form, participate il} or benefit from the formation of Any such entity. Tho ClLy further represents LhaL Lhe NoLes arc nuL be l/lg lHHlIOU as part of a direct or Indirect composite issue that combines lsslws or lotH of tax-exempt oblIgations of dIfferent Issuers. Section 11. The Clerk of Counc il 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 wi I I at the time of delivery of the Notes have been performed and IIl1ve boen 1110 l , III regular and due form as roquired by law; that the full [l1ltll, crectll /lnd revenues of the C lLy are l-J1edged for the Llmeiy l-JaymenL o[ Lhe l-Jrlncll-Jal o[ and interest 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 del i bera- 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. Sectlon It. . Tills ordlnflnce Is declared to be an omergoncy 11I0118111'0 necessary for the immediate preservation of the public peace, health, safety and 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 award construction contracts and begin construction of the improvements described in Section 1 at the earliest possible time to provide improved water service at the earliest possible time and thereby improve the health, safety and welfare of the citizens of the City; wherefore, this ordinance shall be in full force and effect immediately upon its passage. JUR./llc!E:5 4;, U..e...-wdC'er!(Or Co'n:;, ~'''r()hy r.~rir:! 1 ,1. ;;leSigned: '/ foregoing is a true copy of Ordinance/RMOlrot:nn Uo. ...kS.:-:~L_ /7 duly adopted by the Council of the City of Dublln, Ohio, on rhe /1.#1 : r (//7 day of ?/<'"7 ' / 'Y.F,? . . ~/}y siding 1'- J';::'V~.:. ,~..- / , . ~ ~/tthL/-d ~, 7L.~~ --..h4~1!d ~ ~ Clerk of Council, Dublin, Ohio Attest: Clerk of Cou c il Passed: July 1:[, 1989 Effective: Juiy a, 1989 I hereby cerfify that co~!es of rhis Ordinance/Resolution were posted in the City of Dvblln in accordance with Sect;on 731.25 of rhe Ihio Revised Code. /? J~ 'nJ. rUl~U-,J Clerk of Council, Dublin, Ohio FISCAL OFFICER'S CERTIFICATE To the Council of the City of Dublin, Ohio: As fiscal officer of the City of Dublin, I certify in connection with your proposed issue of $1,550,000 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 and install ing water mains, fire hydrants, water service connections and a booster pumping station, together with all necessary appurtenances (the improvement), that: l. The estimated life or usefulness of the improvement is at least five years. 2. The maximum maturity of the Bonds, calculated in accordance with Section 133.20 of the Revised Code, is 40 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 twenty years, provided that their maximum maturity is one year if the Notes are sold at private sale. , Dated: July 17, 1989 - Director of Finan , City of Dublin,