HomeMy WebLinkAbout09-00 OrdinanceRECORD OF ORDINANCES
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Ordinance No ......................Q9-0Q............................. Passed .................................................................., .......................
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE
OF NOTES IN THE MAXIMUM PRINCIPAL AMOUNT OF
$4,000,000, IN ANTICIPATION OF THE ISSUANCE OF BONDS,
FOR THE PURPOSE OF PAYING COSTS OF CONSTRUCTING
PERIMETER DRIVE FROM ITS CURRENT WESTERN
TERMINUS TO THE U.S. ROUTE 33/S.R. 161 INTERCHANGE,
INCLUDING THE REALIGNMENT AND RECONSTRUCTION OF
POST ROAD FOR ITS INTERSECTION WITH PERIMETER
DRIVE, CONSTRUCTING PERIMETER LOOP ROAD FROM ITS
INTERSECTION WITH PERIMETER DRIVE TO ITS CURRENT
WESTERLY TERMINUS AND IMPROVING THE
INTERSECTIONS OF AVERY-MUIRFIELD DRIVE WITH
PERIMETER DRIVE, PERIMETER LOOP ROAD AND POST
ROAD, INCLUDING GRADING, PAVING WITH CURBS AND
GUTTERS, INSTALLING RELATED STORM AND SANITARY
SEWERS AND WATERLINES, SIDEWALKS, BIKEPATHS,
STREET LIGHTS AND TRAFFIC SIGNALIZATION,
LANDSCAPING, AND ACQUIRING REAL ESTATE AND
INTERESTS IN REAL ESTATE THEREFOR, TOGETHER WITH
ALL OTHER NECESSARY APPURTENANCES, AND
DECLARING AN EMERGENCY.
WHEREAS, pursuant to Ordinance No. 56-94 passed June 20, 1994, as amended by
Ordinances No. 128-99 passed December 13, 1999 and No. 06-00 passed January 18,
2000 (collectively, the TIF Ordinance), this Council authorized and the City has or will
enter into one or more Tax Increment Financing Agreements (the TIF Agreement)
under which the City will agree to construct certain public improvements identified in
the TIF Agreement (the TIF Project), which TIF Project is subject to the tax increment
financing described in the TIF Agreement and which TIF Project is described therein
and in Section 1 of this Ordinance; and
WHEREAS, under the TIF Agreement and pursuant to Section 5709.43 of the Revised
Code, the payments in lieu of taxes received by the City pursuant to the TIF Agreement
and deposited in the Rings Road Project Municipal Public Improvement Tax Increment
Equivalent Fund pursuant to the TIF Ordinance are available to pay debt charges on
notes or bonds issued to finance the TIF Project; 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;
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
and that the estimated maximum maturity of the Bonds is twenty years, and the
maximum maturity of the Notes is twenty years;
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 maximum principal amount
of $4,000,000 (the Bonds) for the purpose of paying costs of constructing Perimeter
Drive from its current western terminus to the U.S. Route 33/S.R. 161 interchange,
including the realignment and reconstruction of Post Road for its intersection with
Perimeter Drive, constructing Perimeter Loop Road from its intersection with Perimeter
Drive to its current westerly terminus and improving the intersections of Avery-
Muirfield Drive with Perimeter Drive, Perimeter Loop Road and Post Road, including
grading, paving with curbs and gutters, installing related storm and sanitary sewers and
waterlines, sidewalks, bikepaths, street lights and traffic signalization, landscaping, and
RECORD OF ORDINANCES
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Ordinance No ................................................................... Passed ..................................................................,
acquiring real estate and interests in real estate therefor, together with all other
necessary appurtenances.
Section 2. The Bonds shall be dated approximately December 1, 2000, shall bear
interest at the now estimated rate of 6.00% per year, payable semiannually until the
principal amount is paid, and are estimated to mature in twenty annual principal
installments that are substantially equal. The first principal installment is estimated to
be December 1, 2001.
Section 3. It is necessary to issue and this Council determines that notes in the
maximum principal amount of $4,000,000 (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
6% 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 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 principal amount of the Notes and 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, N.A., in 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 nine months from that 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 nine 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 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 one lot and in the
denominations as requested by the original purchaser and approved by the Director of
Finance, provided 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 and the Notes may be issued as
fully registered securities in accordance with Section 133.40 of the Revised Code and
in book entry or other uncertified form in accordance with Section 9.96 if it is
determined by the Director of Finance that issuance of fully registered securities in that
form will facilitate the sale and delivery of the Notes. 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
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RECORD OF ORDINANCES
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Ordinance No ................................................................... Passed ..................................................................,Y...~~..?.....
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 the 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 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. 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. In each year monies deposited to the Perimeter West
Project Municipal Public Improvement Tax Increment Equivalent Fund created
pursuant to Section 5709.43(A) of the Revised Code and the TIF Ordinance are
available for the payment of the debt charges on the Notes and Bonds, the amount of
the tax shall be reduced by the amount of the monies so available and appropriated. In
each year to the extent money from the municipal income tax 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 money so
available and appropriated in compliance with the covenant hereafter set forth. 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.
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 of the
Code applies, and (b) the interest thereon will not be an item of tax preference under
Section 57 of the Code.
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RECORD OF ORDINANCES
Ordinance No ................................................................... Passed .................................................................., Pa~ge4 ....
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, (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.
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(f)(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 maybe 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 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 will provide funds to allow for the construction
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RECORD OF ORDINANCES
Ordinance No ................................................................... Passed .................................................................., rae..?.....
at the earliest possible time of the transportation improvements referred to herein,
thereby improving the traffic safety of the citizens of the City; wherefore, this
Ordinance shall be in full force and effect immediately upon its passage.
Passed this ~ day o !.tlt , 2000.
~/
ayor -Presiding Officer
ATTEST:
Clerk of Council
Passed~~~~ 2000
Effectiv : fiLJ . 2000
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I herehy certify that c~gNQ~ of th~~ prdr~~-it~~!l~s~~iiff~it i~i~'r@ ~bst~d iit #h~
Cty of Dublin in actordnnt~ w~t!~ S~ct~~~ 1~1:~~ o~ fti~ ~i~ ~~vi~~ E~~~a
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erk of Cnuncit, Dubtl~, Oi~i4
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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
notes in the maximum principal amount of $4,000,000 (the Notes) to be issued in anticipation of the
issuance of bonds (the Bonds) for the purpose of paying costs of constructing Perimeter Drive from
its current western terminus to the U.S. Route 33/S.R. 161 interchange, including the realignment
and reconstruction of Post Road for., its intersection with Perimeter Drive, constructing Perimeter
Loop Road from its intersection with Perimeter Drive to its current westerly terminus and
improving the intersections of Avery-Muirfield Drive with Perimeter Drive, Perimeter Loop Road
and Post Road, including grading, paving with curbs and gutters, installing related storm .and
sanitary sewers and waterlines, sidewalks, bikepaths, street lights and traffic signalization,
landscaping, and acquiring real estate and interests in real estate therefor, together with all other
necessary appurtenances (the Improvement), that:
1. The estimated life or period of usefulness of the Improvement is at least five years.
2. The estimated maximum maturity of the Bonds, calculated in accordance with Section
133.20 of the Revised Code, is twenty years. If notes in anticipation of the Bonds are outstanding
later than the last day of December of the fifth year following the year of issuance of the original
issue of notes, the period in excess of those five years shall be deducted from that maximum
maturity of the Bonds.
3. The maximum maturity of the Notes is twenty years from the date of issuance of the
Notes.
Dated: January ~`~, 2000 ~ .~
Director of Finance
City of Dublin, Ohio