HomeMy WebLinkAbout10-00 OrdinanceRECORD OF ORDINANCES
_ Dayton Le¢ei Blenk Co. Form No 30043
Ordinance No ......................10.-00.............................. Passed .................................................................., .......................
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AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF
NOTES IN THE MAXIMUM PRINCIPAL AMOUNT OF $2,000,000, IN
ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE
PURPOSE OF PAYING COSTS OF CONSTRUCTING EMERALD
PARKWAY FROM SHIER RINGS ROAD TO INNOVATION DRIVE
AS A FOUR LANE BOULEVARD, INCLUDING GRADING, PAVING
WITH CURBS AND GUTTERS, INSTALLING RELATED STORM
AND SANITARY SEWERS AND WATERLINES, SIDEWALKS,
BIKEPATHS, STREET LIGHTS AND TRAFFIC SIGNALIZATION,
LANDSCAPING, AND ACQUIlZING REAL ESTATE AND
INTERESTS IN REAL ESTATE THEREFOR, TOGETHER WITH ALL
OTHER NECESSARY APPURTENANCES, AND DECLARING AN
EMERGENCY.
WHEREAS, pursuant to Ordinance No. 14-96 passed April 1, 1996, as amended by
Ordinance No. 138-99 passed January 3, 2000 (collectively, the TIF Ordinance), this
Council authorized and the City has entered into a Tax Increment Financing Agreement (as
the same may be amended or supplemented pursuant to the TIF Ordinance, the TIF
Agreement) dated as of April 17, 1996, under which the City agreed 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 Thomas/Kohler 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
$2,000,000 (the Bonds) for the purpose of paying costs of constructing Emerald Parkway
from Shier Rings Road to Innovation Drive as a four lane boulevard, 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.
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 $2,000,000 (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 he City does not pay or make
RECORD OF ORDINANCES
Ordinance No ................................................................... Passed ..................................................................,
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 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
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RECORD OF ORDINANCES
Da on Legal Blank Co. Form No 30043
Ordinance No ................................................................... Passed .................................................................., Page..3....
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 Thomas/Kohler 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 maybe 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.
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 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
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RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No 30043
Ordinance No ................................................................... Passed .................................................................., Page..4....
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 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 i diately upon its passage.
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ayor -Presiding Officer
ATTEST:
Clerk of Council
Passedi~~,~., / 2000
Effectiv . 2000
1 hereby certify that copies of this Ordinance/Resolution were posted in the
City of Dublin in accordance with Section 731.25 of the Ohio Revised Code.
~~ rk of Council, Dublin, Ohio
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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 $2,000,000 (the Notes) to be issued in anticipation of the
issuance of bonds (the Bonds) for the purpose of paying costs of constructing Emerald Parkway
from Shier Rings Road to Innovation Drive as a four lane boulevard, 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 1°~, 2000 ~`~
Director of Finance
City of Dublin, Ohio
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