114-88 Ordinance
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ORDINANCE NO. 114-88
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE
OF $1,200,000 NOTES, IN ANTICIPATION OF THE
ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS
OF CONSTRUCTING A SWIMMING POOL, BATH HOUSES, A
PUMP HOUSE AND A CONCESSION STAND, ACQUIRING
FURNISHINGS AND EQUIPMENT THEREFOR, AND MAKING
RELATED SITE IMPROVEMENTS, TOGETHER WITH NECESSARY
APPURTENANCES THERETO, AND DECLARING AN EMERGENCY.
WHEREAS, pursuant to Ordinance No. 137-87 passed November 24, 1987,
notes in anticipation of bonds in the amount of $1,200,000 dated December 9,
1987, were issued for the purpose stated in Section 1, to mature on
December 9, 1988; and
WHEREAS, this Counc 11 finds and determines that the C1ty should
retire the outstanding notes with the proceeds of the Notes described in
Section 3) and
WHEREAS, the Director of Finance has certified that the estimated
life of that improvement is at least five years and that the maximum maturity
of the bonds is 21 years allocated to the classes of improvements set forth in
the Fiscal Officer's Certificate, which allocation is approved, ratified and
confirmed, and the maximum maturity of the notes is December 9, 2007, or one
year if sold at private sale;
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 aggre-
gate principal amount of $1,200,000 (the Bonds) for the purpose of paying
costs of constructing a swimming pool, bath houses, a pump house and a
concession stand, acquiring furnishings and equipment the~efor , and making
related site improvements, together with necessary appurtenances thereto.
Section 2. The Bonds shall be dated approximately May I, 1989, shall
j bear interest at the now estimated rate of 8% per year, payable semi-annually
until the principal amount is paid, and shall mature in 21 substantially equal
annual installments.
Section 3. It is necessary to issue and this Council determines that
notes in the aggregate prine ipal amount of $1,200,000 (the Notes) shall be
issued in anticipation of the issuance of the Bonds and to retire the
outstanding notes dated December 9, 1987. The Notes shall bear interest at a
rate or rates not to exceed 10% 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. 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 principal of and interest on the Notes shall be pay-
able 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 pur-
chaser. The principal of and interest on the Notes 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 main office of The Huntington
National Bank, Columbus, Ohio, or 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 adequately protect the funds of
the City and that proper procedures and safeguards are available for that
- purpose (the Paying Agent). The Notes shall be dated December 8, 1988, and
shall mature on June 8, 1989.
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, and bear the
corporate seal of the City or a facsimile of that seal. The Notes shall be
issued in the denominations and numbers as requested by the original purchaser
and approved by the Director of Finance, provided that the entire principal
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amount may be represented by a single note. 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 for which they are issued and that they
are issued pursuant to this ordinance.
Section 6. The Notes are offered at par and accrued interest, if
any, to the Director of Finance, as officer in charge of the Bond Retirement
Fund of the City. Notes not purchased for the Bond Retirement Fund or for
other funds of the City shall be sold 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
3 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.
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 pre-
mium 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 principal of and
interest on the Notes at maturity and are pledged for that purpose.
Section 9. During the year or years in which the Notes 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 within the ten-mill 1 imitation 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
principal of and interest on the Notes or the Bonds when and as the same fall
due.
Section 10. The City covenants that it will restrict the use of the
proceeds of the Notes in such manner and to such extent, if any, as may be
necessary 80 that the Notes will not constitute arbitrage bonds undor Section
148 of the Internal Revenue Code of 1986, as amended (the Code). The Director
of Finance, as the fiscal officer, or any other officer of the City having
responsibility for the issuance of the Notes shall give an appropriate
certificate 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 the Notes.
The City covenants that it (a) 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)
will not take or authorize to be taken any actions that would adversely affect
that exclusion, and that 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, (11 ) restrict the yield on investment property acquired with
those proceeds, (iii) make timely rebate payments to the federal government,
(iv) maintain books and records and make calculations and reports, and (v)
refrain from certain uses of those proceeds, all in such manner and to the
extent necessary to assure such exclusion of that interest under the Code.
The Director of Finance and other appropriate officers are authorized and
directed to take any and all actions, make calculations and rebate payments,
and make or give reports and certifications, as may be appropriate to assure
such exclusion of that interest.
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 subordinate
entities or other entities which issue obligations on its behalf, or on behalf
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of which it issues obligations, in or during the calendar year in which the
Notes are issued, (1) will not issue tax-exempt obligations designated as
"qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the
Code, including the Notes, in an aggregate principal amount in excess of
$10,000,000, and (ii ) does 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 Section 145 of the Code,
that are private activity bonds as defined in Section 141 of the Code) in an
aggregate principal 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 that, during any time or in any manner as might affect the treatment
of the Notes as "qualified tax-exempt obligations", it has not formed or
participated in or benefited from the formation of any entity formed 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 or benefit from the formation 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.
Sect ion 11. The Clerk of Council is directed to deliver a certified
copy of this ordinance to the County Auditors of Franklin, Union and Delaware
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, c red it and
revenues of the City are pledged for the timely payment of the principal of
and interest 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 delibera-
tions of this Council and of any 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 enable the City 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.
I, Frances M. Urban Clerk of (oun(i1, hereby certify that the Signi(~
forogoing is a true cory of Od:na~C!!/~~ No, __ 114-88
duly adopted by the Co:.;;d of :hc City of ;:lJb!:n, Dh;o, on the 21st
day of November, 1988 /J I /~
Presiding ficer
~ ~7VUO ~' q~ meet. J~~<;J ~1. {(~~-/
Clerk of (oune I, Dublin, 011:1)
Clerk of Counc i
Passed: November eli, 1988
Effective: November d-L, 1988
I hereby cortif}' that wp:es of t:lis Od:llJme/Resolufon were posfed in the
City of Dublin in oc!ord:m:e rJJh S9cfc:1 73'1.25 of tile l1;io Revised Code.
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Clerk of CounCIl, Dublm, Ohio