HomeMy WebLinkAbout69-00 Ordinance AMENDEDRECORD OF ORDINANCES
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Ordinance No .....................................69-00....~r'~,h.~.P.in ~ri1 ~Passed .................................................................., .......................
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE
OF $1,343,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF
BONDS, FOR THE PURPOSE OF PAYING COSTS OF
ACQUIRING A FACILITY AND RELATED SITE FOR USE AS A
CENTER FOR THE ARTS, TOGETHER WITH ALL NECESSARY
APPURTENANCES, AND DECLARING AN EMERGENCY.
WHEREAS, a public hearing relating to the Project as defined in Section 1 and the plan of
financing for the Project and the Notes described in Section 3 was held by this Council
commencing at 7:00 p.m. on May 15, 2000, at City Council Chambers, 5200 Emerald
Parkway, Dublin, Ohio 43017, following reasonable public notice published in advance of
such hearing, all in accordance with Section 147(f) of the Internal Revenue Code of 1986,
as amended (the Code);
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;
WHEREAS, pursuant to Ordinance No. 90-99 passed August 9, 1999, notes in anticipation
of bonds in the amount of $1,343,000, 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 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:
Section 1. It is necessary to issue bonds of this City in the aggregate principal amount of
$1,343,000 (the Bonds) for the purpose of paying costs of acquiring a facility and related site
for use as a center for the arts, together with all necessary appurtenances (the Project).
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 aggregate
principal amount of $1,343,000 (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
RECORD OF ORDINANCES
Ordinance No .....................................69_00............. Passed ...........................................................naee ~.,-............
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 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(8) 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
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Ordinance No .....................................69_.()0............. Passed ...........................................................nane..3................
charges on the Notes or the Bonds when and as the same fall due. 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 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 arbitrage bonds or hedge bonds under Sections 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.
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RECORD OF ORDINANCES
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Ordinance No .....................................G3-00............. Passed ...........................................................
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. The Notes and the related plan of financing for the Project which is located at
7125 Riverside Drive, Dublin, Ohio 43017, and owned by the City and operated by the
Dublin Arts Council, are hereby approved for purposes of the "public approval" required in
Section 147(f) of the Code.
Section 15. 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.
!~`~G
- Presiding Officer
Attest:
Clerk of Council
Passed: May ~~ , 2000
Effective: May ~ J , 2000
I hereby certify that copies of this Ordinante%Resolutie~ ,v~-~ r,,.....r
C;ty of Dublin in accordance with Section 731.25 of t?~-~ y v ~tevised i
Q,Qpt ~'!~ . of Council, Dublin, Ohio
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~ 9- [5D
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 in the maximum principal amount of $1,343,000
(the Notes) to be issued in anticipation of the issuance of bonds (the Bonds) for the purpose of
paying costs of acquiring a facility and related site for use as a center for the arts together with all
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 twenty yeazs. 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 September 16, 2019.
Dated: May 1 , 2000 ~~.~r~
Director of Finance
City of Dublin, Ohio