15-95 Ordinance
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ORDINANCE NO. 15--95
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND
SALE OF $7,500,000 NOTES, IN ANTICIPATION OF THE
ISSUANCE OF BONDS, FOR THE PURPOSE OF PAYING
COSTS OF CONSTRUCTING, FURNISHING AND EQUIPPING
A MULTI-PURPOSE COMMUNITY AND RECREATIONAL
CENTER AND IMPROVING THE SITE THEREOF, AND
DECLARING AN EMERGENCY. (AMENDED)
WHEREAS, at the election held on November 6, 1990, on the question of issuing bonds
of the City in the amount of $11,500,000 for the purpose stated in Section 1 and of levying taxes
outside the ten-mill limitation to pay the debt charges on those bonds, the requisite majority of
those voting on the question voted in favor of it; and
WHEREAS, this Council has determined to issue notes in anticipation of the issuance of
a portion of those bonds; 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 1, to be issued in anticipation of the bonds; and
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WHEREAS, the Director of Finance has certified that the estimated life or period of
usefulness of that improvement 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;
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 $7,500,000 (the Bonds) for the purpose of paying costs of constructing, furnishing and
equipping a multi-purpose community and recreational center and improving the site thereof.
Section 2. The Bonds shall be dated approximately December 1, 1995, shall bear interest
at the now estimated rate of 6-1/2% per year, payable semiannually until the principal amount
is paid, and are estimated to mature in twenty annual principal installments that are substantially
equal.
Section 3. It is necessary to issue and this Council determines that notes in the aggregate
principal amount of $7,500,000 (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 6-1/2 % 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 payor 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 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 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, Columbus, N.A" 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 on
September 20, 1995.
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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 the denominations and numbers as requested by the
original purchaser and approved by the Director of Finance; provided, however, 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. 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 referred to in Sections 3 and 4 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. 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.
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. 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 the debt charges on 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(a) of the Code applies, and (b) the interest
on the Notes will not be treated as 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,
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(ii) restrict the yield on investment property, (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 the 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(t)(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.
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 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 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 award bids and commence and complete the
improvements described in Section 1 at the earliest possible time to enhance public health and
safety; wherefore, this Ordinance shall be in full force and effect immediately upon its passage.
Attest: ~t? ~~
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lerk of Co cll
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Passed: , 1995 b - tl that copies of tillS Ordinonce/tmolutlon were posted in the
I here, Y c'Jf I Y . ' , R . d C d
Effective: 5fttUel. b City of Oubrn in accordance wit~ Section 731.25 of the 0!110 eVlse 0 e.
, 1995 ~(!~
- 3 - (lefk of Council, Dublin, OhIO
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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 $7,500,000 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 a multi-purpose
community and recreational center and improving the site thereof (the improvement), that:
1. The estimated life or period of usefulness of the improvement is at least five years.
2. The estimated maximum maturity of the Bonds, calculated in accordance with Section
133.20 of the Revised Code, is at least twenty years, but because the maximum maturity for the
Bonds approved by the electors of the City at the November 6, 1990 election is twenty years,
the maximum maturity of the Bonds is twenty years. 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 twenty years.
Dated: March 6, 1995 ~~~:;~
City of Dublin, Ohio