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HomeMy WebLinkAbout043-92 Ordinance . . .. ORDINANCE NO, 43 -92 AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $4,100,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF PROVIDING ADDITIONAL FACILITIES AT THE COFFMAN PARK MUNICIPAL COMPLEX FOR THE CONDUCT OF MUNICIPAL GOVERNMENT OPERATIONS BY CONSTRUCTING, "..... FURNISHING AND EQUIPPING A NEW POLICE FACILITY, AND ACQUIRING REAL ESTATE AND INTERESTS IN REAL ESTATE AND MAKING SITE IMPROVEMENTS THEREON, AND DECLARING AN EMERGENCY, WHEREAS, at the election held on May 8, 1990, on the question of issuing bonds of the City in the amount of $7,000,000 for the purpose stated in Section 1 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, the requisite majority of those voting on the question voted in favor of it; and WHEREAS, bids have been received by the City for the construction of a police facility and justice center at the Coffman Park Municipal Complex and this Council has determined to issue notes in anticipation of the issuance of a portion of those bonds to fund the construction of that facility; 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 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 twenty years, and the maximum maturity of the Notes described in Section 3, to be issued in anticipation of the bonds, is twenty years; 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 in the aggregate principal amount of $4,100,000 (the Bonds) for the purpose of paying costs of providing additional facilities at the Coffman Park Municipal Complex for the conduct of municipal government operations by constructing, furnishing and equipping a new police f ac iIi ty, and acquiring real estate and interests in real estate and making site improvements thereon, Section 2. The Bonds shall be dated approximately October 1, 1992, shall bear interest at the now estimated rate of 7.00% 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 $4,100,000 (the Notes) shall be issued in anticipation of the issuance of the Bonds, 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 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 -n_v--tIi!~, _A ro ^. 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 Paying Agent) . The Notes shall be dated the date of issuance and shall mature not earlier than October 14, 1992 or later than nine months from the date of issuance with the Director of Finance "... to establish a specific maturity date which, in her judgment, is most f advisable to the sale of the Notes and with that specific maturity date set forth in the certificate of award. 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 the Notes shall be issued in the minimum denomination of $100,000 each or any whole multiple thereof, and sllall not be exchangeable for other Notes in denominations less than $100,000. 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 4 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 City Manager, the Director of Finance, the Clerk of Council and 1"*. other City off icials, 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 consulrumate the transactions contemplated by this Ordinance. Section 7. The proceeds from the sale of the Notes, except any premium and accrued interest, shall be pa ld 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 premium and accrued interest shall be paid into the Bond Retirement Fund, Sect.ion 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 t.he 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 Not.es 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 unli.mited as to amount or rate, shall be and is ordered computed, certif ied, 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 [or each of those years are cerl if ied, levied, extended and 1"""" 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 plllced 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 Bonds shall 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 133.0S(B)(7) and 570S.S1(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 Bonds. - 2 - ...~_.~ . . . . . 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 (1) 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 treat.ed other than as bonds to which Section 103(a) of t.he Code applies, and (b) the interest on the Notes will not be treated as an item under Section 57 of the Code. "... The City further covenants that (a) it 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) 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, (1) apply the proceeds of the Notes to the governmental purpose of the borrowing, (1i) restrict the yield on investment property, ( i ii) make timely and adequate payments to the federal government, (1v) 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. 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 subord inate entities or entities that 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) have not issued and will not issue tax-exempt obligations designated as "qual if ied tax-exempt obligations" for purposes of Section 265(b)(3) of the Code, including the Notes, in an aggregate amount in excess of $10,000,000, and (1i) have not issued, do not reasonably anticipate issuing, and will not issue, tax-exempt obligations (including the Notes, but excluding obligations, other than qualified 501(c)(3) bonds as defined in f""" Section 145 of the Code, that are private activity bonds as defined in Section 141 of the Code and excluding refunding obligations that are not advance refunding obligations as defined in Section 149(d)(5) of the Code) in an aggregate 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 "qualified tax-exempt obligations" . Further, the City represents and covenants t.hat, during any time or in any manner as migllt affect the status of the Not.es as "qual if ied tax-exempt obligations", it has not formed or partie ipated 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 benefit from or avail itse If 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. The Director of Finance, as the 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(f)(4)(C) of the Code or available under Section JIll"'" 148 of the Code, for the purpose of assuring, enhancing or protecting favorable tax treatment or status of the Notes or interest theJ~eon 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 wri ling 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 cert if icat ions 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 regard:Lng the - 3 - ---~-~--<--,- . . . . . .. 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 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 t.he issuing of the Notes in order to make them legal, valid and binding ~ general obligations of the City have been performed and llave 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 10) 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 Counc il concerning and relating to the passage of this ordinance were adopted 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 or welfare of this 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 better provide police services at the earliest possible time and thereby improve the public peace, safety and welfare of the citizens of the City; wherefore, this ordinance shall be in ,.,.,.... full force and effect immediately upon its passage. Attest: ~ ~ ~ Clerk of Council Passed: May LJ-, 1992 Effect.lve: May !{, 1992 - ~ , hereh./ ~-.r~'" .t,,,, 'n":fl$ of tl;~ Onhtante {1te"hJtiIQ ... poSlld in the City of Dublin in a~'ordal1ce w:th Sedion 731.25 of the Ollie Itvised Cod.. a/lAt..-L {Z, ~ Cltrft of Coundl, Dublin, Ohio - 4 -