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HomeMy WebLinkAbout85-95 Ordinance . . . , ORDINANCE NO. <6 6 -95 AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $1,200,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING THE PROPERTY OWNERS' PORTION, IN ANTICIPATION OF THE COLLECTION OF SPECIAL ASSESSMENTS HERETOFORE LEVIED, AND THE CITY'S PORTION, OF THE COSTS OF OPENING, CONSTRUCTING AND IMPROVING IN THE CITY A PUBLIC - STREET TO BE KNOWN AS MUIRFIELD DRIVE BY CONSTRUCTING A FOUR LANE SECTION WITH A VARIABLE WIDTH GRASS MEDIAN FROM THE CURRENT TERMINUS APPROXIMA TEL Y 638 FEET NORTH -... OF THE INTERSECTION OF MUIRFIELD DRIVE WITH SELLS MILL DRIVE AND MOJAVE STREET NORTHERLY APPROXIMATELY 3,650 FEET TO THE CURRENT INTERSECTION OF MUIRFIELD DRIVE AND BRAND ROAD BY GRADING, DRAINING, PAVING AND INSTALLING CONCRETE CURBS AND GUTTERS, TOGETHER WITH ALL NECESSARY APPURTENANCES, INCLUDING A BIKEW A Y AND BIKEWAY UNDERPASS, CONSTRUCTING WATERLINES AND FIRE HYDRANTS, SANITARY SEWERS AND STORM SEWERS, AND ACQUIRING REAL ESTATE AND INTERESTS IN REAL ESTATE THEREFOR, TOGETHER WITH ALL OTHER NECESSARY APPURTENANCES, AND DECLARING AN EMERGENCY. WHEREAS, this Council has previously by proper legislation declared the necessity of the improvement described in Section 1; and WHEREAS, pursuant to Ordinance No. 112-94 passed December 5, 1994, notes in anticipation of bonds in the amount of $1,445,000, dated December 20, 1994, were issued for ~"1I1l the purpose stated in Section 1, to mature on September 20, 1995 (the Outstanding Notes); and t 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 other available funds of the ~ City; and WHEREAS, this Council has requested that the Director of Finance, as fiscal officer, certify the estimated life or period of usefulness of the improvement described in Section 1 and the estimated maximum maturity of the Bonds described in Section 1 and the Notes described in Section 3, to be issued in anticipation of the bonds; and WHEREAS, the Director of Finance 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 twenty years, and the maximum maturity of the Notes described in Section 3, to be issued in anticipation of the Bonds, is December 31, 1996 with respect to the property owners' portion and September 6,2011 with respect to the City's portion; 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 $1,200,000 (the Bonds) for the purpose of paying the property owners' portion. in 1llIfit"'.;,..."" anticipation of the collection of special assessments heretofore levied, and the City's portion. of the costs of opening, constructing and improving in the City a public street to be known as ....~ Muirfield Drive by constructing a four lane section with a variable width grass median from the current terminus approximately 638 feet north of the intersection of Muirfield Drive with Sells Mill Drive and Mojave Street northerly approximately 3,650 feet to the current intersection of Muirfield Drive and Brand Road by grading, draining, paving and installing concrete curbs and gutters, together with all necessary appurtenances, including a bikeway and bikeway underpass, constructing waterlines and fire hydrants, sanitary sewers and storm sewers, and acquiring real estate and interests in real estate therefor, together with all other necessary appurtenances, in the manner provided in Resolution No. 50-90 adopted October 15, 1990. The principal amount of ( the Notes represents both the property owners' portion, which shall be an amount determined as set forth in that Resolution No. 50-90, and with any balance of the principal amount of the Notes representing a portion of the City's portion of the costs of the improvement. Section 2. The Bonds shall be dated approximately March 1, 1996, shall bear interest at the now estimated rate of 6 % per year, payable semiannually until the principal amount is paid, and are estimated to mature in twenty 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 $1,200,000 (the Notes) shall be issued in anticipation of the issuance of the Bonds and to retire, together with other funds of the City, the Outstanding Notes. The Notes shall bear interest at a rate or rates not to exceed 7 % 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 of Award referred to in Section 6. 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 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 Notes shall be dated their date of issuance and shall mature six months from their date of issuance, provided that the Director of Finance may, if it is determined to be necessary or advisable to the sale of the Notes, establish a maturity date that ~;" is up to seven days less than six months from the date of issuance by setting forth that maturity date in the Certificate of Award. Section 5. The Notes shall be signed by the City Manager and Director of Finan'::e, 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, however, that no Note shall be issued in a denomination less than $100,000 or be exchangeable for other Notes in denominations less than $100,000. 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 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 evidencing that sale (the Certificate of Award), 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 City Manager, the Director of Finance, the Clerk of Council and other City officials, as appropriate, are each authorized and directed to sign any transcript certificates, financial statements and other documents and *',... instruments and to take such actions as are necessary or appropriate to consummate the transactions contemplated by this Ordinance. The Director of Finance is authorized, if it is determined to be in the best interest of the City, to combine this 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 - 2 - """-'"~~""~,-'".='" ,. ,.",,'.,,"-,,~~',~--...-.,~C" ~..._~,~~-~_.="~.....~-~.-~~~~.,,..., I proceeds representing premium 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 outstanding, 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. ~",iIlI 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 debt charges on the Notes or the Bonds when and as the same fall due. 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 the improvement have been paid shall be used for the payment of the debt charges on the Notes and Bonds until paid in full. In each year to the extent the income from the levy of the special assessments for the improvement 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 the amount of the income so available and appropriated. To the extent necessary, the debt charges on the Notes shall also be paid from municipal income taxes lawfully available therefor under the Constitution and laws of the State of Ohio; and the City hereby covenants, subject and pursuant to such authority, including 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 and the Bonds. - The City reserves the right to issue all or a portion of the Bonds under authority of the election held on May 8, 1990, on the question of issuing Bonds of the City in the amount of $34,000,000 for the purpose of paying costs of improving the vehicular transportation system in the City by constructing, reconstructing, extending, opening, improving, widening, grading, draining, curbing and changing the lines in municipal roads, highways, streets, bridges, sidewalks, bikeways and viaducts, acquiring real estate and interests in real estate therefor, and providing lighting systems and all of the necessary appurtenances, and of levying taxes outside of the limitation imposed by Section 2 of Article XII of the Ohio Constitution to pay the debt charges on those bonds, and with further sources of payment of debt charges on the Bonds being special assessments and municipal income taxes lawfully available therefor under the Constitution and laws of the State of Ohio. Section 10. The City covenants that it will use, and will restrict the use and investment of, the proceeds of the Notes in such manner and to such extent as may be necessary so that (a) the Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds under Sections 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code) or (ii) be treated other than as bonds to which Section 103(a) of the Code applies, and (b) the interest thereon will not be an item of tax preference under Section 57 of the Code. 1Ift't!"'~ The City further covenants that (a) it will take or cause to be taken such actions that may "t~ be required of it for the interest on the Notes to be and remain excluded from gross income for federal income tax purposes, (b) it will not take or authorize to be taken any actions that would adversely affect that exclusion, and (c) 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 and adequate payments to the federal government, (iv) maintain books and records and make calculations and reports, and (v) refrain from certain uses of those proceeds, and, as applicable, of property financed with such proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest under the Code. - 3 - Each covenant made in this section with respect to the Notes is also made with respect to all issues any portion of the debt service on which is paid from proceeds of the Notes (and, if different, the original issue and any refunding issues in a series of refundings), to the extent such compliance is necessary to assure exclusion of interest on the Notes from gross income for federal income tax purposes, and the officers identified above are authorized to take actions with respect to those issues as they are authorized in this Section to take with respect to the Notes. The Director of Finance, as fiscal officer, or any other officer of the City having - responsibility for issuance of the Notes is hereby authorized (a) to make or effect any election, selection, designation, choice, consent, approval, or waiver on behalf of the City with respect to the Notes as the City is permitted to or required to make or give under the federal income tax - laws, including, without limitation thereto, any of the elections provided for in Section 148(t)(4)(C) of the Code or available under Section 148 of the Code, for the purpose of assuring, enhancing or protecting favorable tax treatment or status 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 or penalties, or making payments of special amounts in lieu of making computations to determine, or paying, excess earnings as rebate, or obviating those amounts or payments, as determined by that officer, which action shall be in writing and signed by the officer, (b) to take any and all other actions, make or obtain calculations, make payments, and make or give reports, covenants and certifications of and on behalf of the City, as may be appropriate to assure the exclusion of interest from gross income and the intended tax status of the Notes, and (c) to give one or more appropriate certificates 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 and the tax status of the Notes. Section 11. The Clerk of Council is directed to deliver a certified copy of this Ordinance and the Certificate of Award to the County Auditors of Franklin, Delaware and Union 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 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 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 of its 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 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 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. fIil"l- Signed: - ~;fI Presid g fIC r Attest: ~ (!- ~ Clerk of Council Passed: August~, 1995 . I-Im I l:o!T'"were posted in the h' Ordlllonce u U . d Effective: August) J, 1995 1 h rehV (erflY that cO!ltes of ~ .IS . 731 25 of the O':io Revised Co e. , e ... ,\". ordonce W!t~ SectIOn . City of D!j,j..n 111 ace - 4 - ~(1/(!~AA0- Clerk of Coundl. Oublin, OhIO