020-89 Ordinance
ORDINANCE NO. 20-89
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE
OF $2,400,000 NOTES, IN ANTICIPATION OF THE
ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING COSTS
OF CONSTRUCTING, FURNISHING AND EQUIPPING THE
SERVICE COMPLEX BUILDING, ACQUIRING A SITE
THEREFOR AND MAKING RELATED SITE IMPROVEMENTS,
TOGETHER WITH ALL NECESSARY APPURTENANCES , AND
DECLARING AN EMERGENCY.
WHEREAS, this Council has requested that the Director of Finance, as
fiscal officer, certify the estimated life or usefulness of the improvement
described in Section 1 and the 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 that the estimated
1 ife of that improvement is at least five years and that the maximum maturity
of the bonds is 20 years based upon the weighted average of the amounts
allocated to the classes of improvements set forth in the Fiscal Officer's
Certificate, which allocation is approved, rat if ied and confirmed, and the
maximum maturity of the notes is twenty years, 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 $2,400,000 (the Bonds) for the purpose of paying
costs of constructing, furnishing and equipping the Service Complex Building,
acquiring a site therefor and making related site improvements, together with
all necessary appurtenances.
Section 2. The Bonds shall be dated approximately March 1, 1990,
shall bear interest at the now estimated rate of 7-1/2% per year, payable
semi-annually until the princ ipal amount is paid, and shall mature in 20
substantially equal annual installments.
Section 3. It is necessary to issue and this Council determines that
notes in the aggregate principal amount of $2,400,000 (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 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. If required by the original purchaser, the Notes may
provide that, in the event the City does not payor make provision for payment
at maturity, the princ ipal 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 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
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. 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 principal 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 the date of
issuance and shall mature one year from that date.
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
amount may be represented by a single note. The Notes shall not have coupons
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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 ..my
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 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
principal of and interest on the Notes or the Bonds when and as the same fall
due. To the extent necessary, the principal of and interest on the Notes and
the Bonds in anticipation of which the Notes are issued shall be paid from
municipal income taxes lawfully available therefore under the constitution and
laws of the State of Ohio; and the City hereby covenants, subject and pursuant
to such authority, including particularly Sections 133.03(L) 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 revenues of the City to the prompt payment of the principal of
and interest on the Notes.
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 so that the Notes will not const itute arbitrage bonds under 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, (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 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
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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
of which it issues obligations, in or during the calendar year in which the
Notes are issued, (i) 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 "qual if ied 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.
Section 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 Counc il 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, credit 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 Counc il 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 award construction contracts and begin construction of
the Service Complex Building at the earliest possible time to better provide
essential municipal services at the earliest possible time and thereby improve
the safety and welfare of the citizens of the City; wherefore, this ordinance
shall be in full force and effect immediately upon its passage.
I, Frances M. Urb~rk of Council, hereby': certif that tile Signed:
foregoing ;s (l tnm copy of O,d:na~w~~ffi~(;), N'). 20-8~ jr;
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duly adopted by tb (o:.me:1 of ;~':G (1;; of D:JJl:n, 0:1::), on the '\.-. ~'C"....~"<-" ~-;.;L1'" ~ ~;.::./~,,/
6th h~"7t /",:{p.;;C;-7-Y;,Z-;k. ~~~;.d'~
day of March 1989 ~jYresiding 9fticer .?
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''';'lit', , ~b'kUro r?' ;;a/~~ Attest:J~(}'7?; Z~
.1' ,.?11fH." ,,' Clerk of Counei , Dublin, Ohio Clerk of Council
Passed: March 4:::..., 1989 1 ~ere~y certify that cop:es of thi~ Od'","'v~/n....<n'''+''l'' WfI t rI' h
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Effective: March 1989 CIty of Dublm In arrrnh'''"' 'i'l" I':ne""'" '7nl ')r' It"
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Clerk of C(luncH, Dublin, Ohio
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 $2,400,000 notes (the Notes) , to be issued in
anticipation of the issuance of bonds (the Bonds) for the purpose of paying
costs of constructing, furnishing and equipping the Service Complex Building,
~cquiring a site therefor and making related site improvements, together with
all necessary appurtenances (the improvement), that:
l. The estimated life or usefulness of the improvement is at least
five years.
2. The maximum maturity of the Bonds, calculat'ed in accordance with
Section 133.20 of the Revised Code, is 20 years. That maximum maturity is
based on my calculation of the average number of years of usefulness of the
improvement as measured by the weighted average of the amounts proposed to be
expended for the several classes of the improvement as follows: $1,724,061
for buildings and other structures, 25 years; and $675,939 for equipment,
furnishings and site improvements, 10 years; the weighted average is therefore
20 years. If notes in anticipation of the Bonds are outstanding for a period
in excess of five years from the date of the original issue of notes, the
period in excess of five years shall be deducted from that maximum maturity of
the Bonds.
3. The maximum maturity of the Notes is twenty years, provided that
their maximum maturity is one year if the Notes are sold at private sale.
Dated: March 6, 1989 '1
Director of Finan e
City of Dublin;<J