066-89 Ordinance
. .
ORDINANCE NO. 66-89
AN OIWINANCE PHOVTDING FOH THE ISSUANCE AND SA!.I';
OV $455,000 NOTES, IN ANTICIPATION OF THE ISSUANCE
OF BONDS, l'~OR THE PURPOSE OF PAYING COSTS OF
IMPROVING FRANZ ROAD FROM RINGS ROAD TO TUTTLE
ROAD BY GRADING, DRAINING, WIDENING, CLEARING,
MOVING EXISTING STRUCTURES THEREON, CURBING AS
NECESSARY, INSTALLING SIDEWALKS, PAVING AND RESUR-
FACING, AND CONSTRUCTING STORM SEWER IMPROVEMENTS,
TOGETHER WITH ALL NECESSARY APPURTENANCES, AND
DECLARING AN EMERGENCY.
WHEREAS, thIs Council has requested that the DIrector of Vinance, as
fIscal officer, certIfy the estimated life or usefulness of the improvemenl
described .in Soction 1 nnd t.ho mnxlmum mnturit.y of UIO lIondn dOB(: r Ibod 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
life of that improvement is at least five years and that the maximum maturity
of the bonds is twenty years, 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 Count.ies, Ohio, that:
Section 1. It is necessary to Issue bonds of thIs ClLy in lhe aggre-
gate principal amount of $455,000 (the Bonds) for the purpose of paying costs
of improving Franz Road from Rings Road to Tuttle Road by grading, draining,
widening, clearing, moving existing structures thereon, curbing as necessary,
installing sidewalks, paving and resurfacing, and constructing storm sewer
improvements, together with all necessary appurtenances.
Section 2. The Bonds shall be dated approximately December 1 , 1989,
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 lwenty
substantially equal annual installments.
Section 3, It is necessary to issue and this Council determines that
notes in the aggregate principal amount of $455,000 (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 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 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 bot.h
of, as determined by the Director of Finance, the principal office of Bank
One, Columbus, N.A. , Columbus, Ohio, or the principal office of a bank or
trust company requested by the orIgInal purchaser of t.he 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 on December 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 cnl.1ro pl-lnclpal
,
.
. -2-
amount may be represented by a slngle note. The Notes shedl not huve 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 fli ,-pctor of
Flnuneo In lIeeoruullco wiLli lllw L1I1U Lho pl'ovlslon~ 01' Lit Is urulllllllee. Tile
Director of Finance shall sign the certificate of award reforrod t.o In Soct ion
3 evldonclng t.hflt Nulo, CIIUSO 1,IIn Notes to be prepflrocl, ullcl IIl1vo 1110 Nol O:~
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 Re t. i reme n I Fund.
Sect.lon 8. The [HI r v fI J u e to be i-ece 1 ved from I lIP. ~,;i1n or I 110 lIolld!-l
or of uny ronowal notos and any excess funds resultIng [rolll Llle l~l:HIaJ\CU u1'
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 limitat ion imposed by law, shall be and is ordered
computed, certlfled, levIed and extended upon the tax duplicate and collected
by the same offIcers, in the same manner, and at the same time lhnt t ilXol' for
p,onorlll purponon fo,- oneh of I hon0. YOllrn lire cortlfl0.cl, l0.vlC'd, nxlolldod IllId
coJJocl{)u, and slllll I bo plllced be[ore and in preference to II j j oIlier i I OlliS i III U
[or the [ull amount thereof, The proceeds of the tax levy ~Ilall be 1J1aced 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, subj ect and pursuant
to such authority, including particularly Sections 133.03 (L) and S70S.S1(A)(S)
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 uf the full [aiLlI
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 constitute 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 procep.dlngs 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, (ii ) restrict the yield on investment property acquired with
those proceeds, (1 i i) make timely rebate payments to the federal governmenL,
(Iv) maIntain books and records and make calculations and reports, and (v)
refrain from certain uses of those proceeds, all in such mannor and to tho
extent necossary to assure such exclusIon of that lnteresl under Lhe Code.
. .>
-3-
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 Notos urn horoby doslgnutod us "quullflod l. II x -0 X tJ III" lob I II'. III I Oil 11 "
for pllrpolloA of Soctlon 265(b)(3) of the Codo. In Lhul connecLlon, Iho Clly
hereby represents and covenants that it, together with fll.l i l s S II bo rd I n III 0
0l1t1tloA or othor ol1tltlos whIch Issue oblIgatIons on lLs belwIl, ur 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 SOl(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 appiicabie, wili not adversely affect the slalus of lhe Noles
as "qualified tax-exempt obligations". Further, the City represp.nts and
covenants that, during /lny time or in /lny manner as might /lffect the t. 1'0 III mo n I
of lho Nolos liS "ljllul1fled lux-exempl obligations" , lL hal; nol formed ur
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 Counc 11 is directed to deliver a certified
copy of this ordinance to the County Auditors of Franklin, Union and Oeluwnro
CountIes.
Soction 12. ThIs Council determInes that all lICl.H and condlLlonH
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 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 seli the Notes,
which is necessary to award construction contracts and begin construction of
the improvement described in Section 1 at the earliest possible t 1100 l.o bol.lar
provIde for traffic safety 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 l'l~II'" <!..E'S /J1. U,.e'OI1Y Clerk of Council, hereby certif~ that the
, /R I pf 'I "' ~ .- K 7 Signed:
foregoing is a true copy of Ordinance eS8 u .8ft I O. ~ /)
duly adopted b~e oundl of the Cit)' ~ Jublin, Ohio, Oil the / J ,/ ',-~r/ L ~
day of 11, , 17 . ~:' -iZ~-'k 7~i '/f?4.~--?'
~""""-:V"L ,~-,u JI -
~esiding 9ft!icer ,
~&htq~ ~ '{;~ ,
(Ierk of Council, Dublin, OhiO At test: , ~/12/ ~. ?~dLa'7<j
Clerk of Counc 11
Passed: July 17, 1989 I hereby ~!,rt;f-., '''n. m":es of this Oid'ncnce/Re~ol,'t;.." .""1\ "110,,,1 :~""
Effective: July I J, 1989 City of Dubl:n 1n (]cco~dc::~c \'''~:l Sect:on 731.25 of the (J':; ::';'v S~,' _,:..
_/A:a4LLt0 YJ;., t{k.~
Clerk of Ceuncil, 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 $455,000 notes (the Notes) , to be issued in
anticipation of the issuance of bonds (the Bonds) for the purpose of paying
costs of improving Franz Road from Rings Road to Tuttle Road by grading,
draining, widening, clearing, moving existing structures thereon, curbing as
necessary, installing sidewalks, paving and resurfacing, and constructing
storm sewer improvements, together with all necessary appurtenances (the
improvement), that:
1. The estimated life or usefulness of the improvement is at least
five years.
2. The 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 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: July 17, 1989 '.- ~ "'-1 -H :, /^", fY\ ~ -\- v-- ,
Dire tor of F inat[c.:') ,j
City of Dublin, Ohl0
.~