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HomeMy WebLinkAbout104-89 Ordinance .. ORDINANCE NO. Lol- if' 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. 47-89 passed June 5, 1989, a note in anticipation of bonds in the amount of $2,200,000, dated June 8, 1989, was issued for the purpose stated in Section 1, to mature on December 8, 1989; and WHEREAS, this Council finds and determines that the City should retire the outstanding note with the proceeds of the Notes described in Section 3; and WHEREAS, the Director of Finance, as fiscal officer of lids 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 estimnted 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: 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 pnyJng costs of improving the municipal water system by constructing an elevated water storage tank and related facilities, together with nl! necessilry appurtenances thereto. Section 2. The Bonds shall be dated approximately April I, 1990, shall bear interest at the now estimated rate of 8% per year, payable semi- annually until the principal amount is paid, and are estimated to mature in 30 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) sha 11 be issued in anticipation of the issuance of the Bonds and to retire the outstanding note dated June 8, 1989. The Notes shall bear interest at a rate or rates not to exceed 10% per year (computed on a 360-day per year basi8), 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 pay or 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 cert if icate awal'ding 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 purchase r, 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 December 7, 1989, and shall mature on April 5, 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 the entire principal amount 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 sununary 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 lhe provisiuns of this ordinance. The Director of Finance shall sign the cert if icate of award referred to in Section 3 evidencing that sale, cause the Notes to bl'! 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 orig inal 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 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 properly in the City, in add it ion 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 collectl'!d by the same officers, in the same manner, and at the same time that taxes [CH- 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. In each year to the extent the income from the City's waterworks system is available for the payment of the debt charges on the Notes and Bonds and is appropriated for that purpose, the amount of the tax shall be reduced by lhe 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 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 hav ing 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, (it) 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 cert if icat ions, as may be appropriate to assure such exclusion of that interest. - 2 - ~ . . . - . The City hereby represents that the $2,200,000 notes dated June 8, 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. Furthp r, 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 ent ity 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 benefit from or avail itse lf 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 Counc il is directed to dp.liver 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 ilnd credit ilnd 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 thilt no statutory or constitutional limitation of indebtedness or taxation will have been exceeded in the issuance of the Notes. Sec tion 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 commit tees 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 o rd e r to issue and sell the Notes, which is necessary to enable the City to timely retire the outstanding note and thereby preserve its credit; wherefore, this ord inance shall be in full force and effect immediately upon its passage. Signed: ~ ~.../ ~ Pres' ing Officer /) At t est :~Jj(a?~ 7;;, tl-u~ / Clerk of Council Passed: Novembe r Jo, 1989 Effective: November c;?o, 1989 1 ~ere6y certify tliot cO'pres of t!;isOrdincm~~7Reduf1on were posted in th~ City of Dublin in accordance w;lh SectIon 731.25 (if the Ohio Revised Coda. .A/2'-n/ /;/) ~. c/ A-/4~ / Oem of Co unci , Dublin, Ohio - 3 -