HomeMy WebLinkAbout67-00 Ordinance RECORD OF ORDINANCES
Dayton Legal Blank Co Form No. 30043
Ordinance No ..............67-00.................................... Passed
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE
OF NOTES IN THE MA~:IMUM PRINCIPAL AMOUNT OF
$5,500,000, IN ANTICIPATION OF THE ISSUANCE OF BONDS,
FOR THE PURPOSE OF PAYING COSTS OF IMPROVING THE
VEHICULAR TRANSPORTATION SYSTEM IN THE CITY BY
CONSTRUCTING, RECONSTRUCTING, EXTENDING, OPENING,
IlVIPROVING, WIDENING, GRADING, DRAINING, CURBING
AND CHANGING THE LINES OF MUNICIPAL ROADS,
HIGHWAYS, STREETS, BRIDGES, SIDEWALKS, BIKEWAYS
AND VIADUCTS, ACQUIl~ING REAL ESTATE AND INTERESTS
IN REAL ESTATE THEREFOR, AND PROVIDING LIGHTING
SYSTEMS AND ALL OTHER NECESSARY APPURTENANCES,
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 $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 of
municipal roads, highways, streets, bridges, sidewalks, bikeways and viaducts, acquiring
real estate and interests in real estate therefor, and providing lighting systems and all
other necessary appurtenances and of levying taxes outside the ten-mill limitation to pay
debt charges on those bonds, the requisite majority of those voting on the question voted
in favor of it (the Transportation Authorization); and
WHEREAS, pursuant to Ordinance No. 25-98 passed May 4, 1998 (the TIF
Ordinance), this Council authorized and the City has entered into a Tax Increment
Financing Agreement (the TIF Agreement) dated June 4, 1998 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 Woerner-Temple 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; 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
and that the estimated maximum maturity of the Bonds is at least nineteen years but
because the maximum maturity for the Bonds approved by the voters in the
Transportation Authorization is nineteen years the maximum maturity of the Bonds is
also nineteen years, and the maximum maturity of the Notes is twenty years; and
WHEREAS, pursuant to Ordinance No. 88-99 passed August 9, 1999, notes in
anticipation of bonds in the amount of $5,500,000, dated September 16, 1999, were
issued for the purpose stated in Section 1, to mature on June 16, 2000 (the Outstanding
Notes); and
WHEREAS, this Council finds and determines that the City should retire the
RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No 30043
Ordinance No ..............67-00..........................-......... Passed Page. 2..........,
Outstanding Notes with the proceeds of the Notes described in Section 3;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
Franklin, Union and Delaware Counties, Ohio, that:
rr... Section 1. It is necessary to issue bonds of this City in the maximum principal amount
of $5,500,000 (the Bonds) 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 of municipal
roads, highways, streets, bridges, sidewalks, bikeways and viaducts, acquiring real estate
and interests in real estate therefor, and providing lighting systems and 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 nineteen 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 $5,500,000 (the Notes) shall be issued in anticipation of
the issuance of the Bonds and to retire the Outstanding Notes dated September 16, 1999.
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 six 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 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 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
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RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No 004
Ordinance No ..............67-00.................................... Passed .....................................Page..3..........,
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 would have been levied if the Bonds had been issued without the prior issuance of
the Notes. The tax shall be unlimited as to amount or rate, 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 Woerner-Temple Road 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
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RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No 004
Ordinance No ..............67-00.................................... Passed .....................................Page.4..........,
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.
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 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.
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.
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
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RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No ..............67-00................_................... Passed Page..5..........,
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 timely retire the Outstanding Notes and
thereby preserve its credit; wherefore, this Ordinance shall be in full force and effect
immediately upon its passage.
Signe .
ayor -Presiding Officer
Attest:
Clerk of Council
Passed: May , 2000
Effective: May~~, 2000
tee of this Ord?Hance/Resolution were poster'
1 pArehy certify that co{i
t+ty of Dubin in accordance with Section 131.25 of the Ohio Revised Gad,R,
[lark o suncil, Dublin, Ohio
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~?•00
SUPPLEMENTAL FISCAL OFFICER'S CERTIFICATE
To the Council of the City of Dublin, Ohio:
As fiscal officer of the City of Dublin, and supplementing my certificate of August 9, 1999,
I certify in connection with your proposed issue of notes in the maximum principal amount of
$5,500,000 (the Notes), to be issued in anticipation of the issuance of bonds (the Bonds) for the
purpose of paying costs of improving the vehiculaz transportation system in the City by
4 constructing, reconstructing, extending, opening, improving, widening, grading, draining, curbing
and changing the lines of municipal roads, highways, streets, bridges, sidewalks, bikeways and
viaducts, acquiring real estate and interests in real estate therefor, and providing lighting systems
and all other necessary appurtenances (the Improvement), that:
1. The estimated life or period of usefulness of the Improvement is at least five yeazs.
2. The estimated maximum maturity of the Bonds, calculated in accordance with Section
133.20 of the Revised Code, is at least nineteen years, but because the maximum maturity for the
Bonds approved by the electors of the City at the May 8, 1990 election is nineteen years, the
maximum maturity of the Bonds is nineteen years. If notes in anticipation of the Bonds aze
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 June 17, 2018.
Dated: May 2000 1\,~
Director of Finance
City of Dublin, Ohio