108-92 Ordinance
.
, .1
..
ORDINANCE NO. 108 -92
-
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF
$4,100,000 BONDS FOR THE PURPOSE OF PAYING COSTS OF
PROVIDING ADDITIONAL FACILITIES AT THE COFFMAN PARK
MUNICIPAL COMPLEX FOR THE CONDUCT OF MUNICIPAL
GOVERNMENT OPERATIONS BY CONSTRUCTING, FURNISHING
AND EQUIPPING A NEW POLICE FACILITY, AND ACQUIRING
REAL ESTATE AND INTERESTS IN REAL ESTATE AND MAKING
f" SITE IMPROVEMENTS THEREON, AND DECLARING AN
EMERGENCY.
\.- at the election held May 8, 1990, on the question of
WHEREAS, on
issuing bonds of the City in the amount of $7,000,000 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 maj or i ty of those voting on the
question voted in favor of it (the Voter Authorization); and
WHEREAS, pursuant to Ordinance No. 43-92 passed May 4, 1992, notes in
anticipation of bonds in the amount of $4,100,000, dated June 2, 1992, were
issued for the purpose stated in Section 1, to mature on October 14, 1992 (the
Outstanding Notes); and
WHEREAS, this Council finds and determines that the City should
retire the Outstanding Notes with the proceeds of the Bonds described in
Section 1; 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 maximum maturity of the Bonds
described in Section 1; and
WHEREAS, the Director of Finance has certified that the estimated
life or period of usefulness of that improvement is at least five years and
r that the maximum maturity of the bonds is December 1, 2011 ;
,-. 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 $4,100,000 (the Bonds) for the purpose of paying
costs of providing additional facilities at the Coffman Park Municipal Complex
for the conduct of municipal government operations by constructing, furnishing
and equipping a new police facility, and acquiring real estate and interests
in real estate and making site improvements thereon.
Section 2. The Bonds are the second installment of bonds issued
pursuant to the Voter Authorization, shall be issued in one lot and only as
fully registered bonds, in the denominations of $5,000 or any integral
multiple thereof, but in no case as to a particular maturity date exceeding
the principal amount maturing on that date. The Bonds shall be dated as of
October 1, 1992.
The Bonds shall bear interest at the rate or rates of interest, not
exceeding in the aggregate a weighted average interest rate to maturity of
7-1/2% per year (computed on a 360-day per year basis), as specified in the
certificate of award providing for the award of the Bonds (the Certificate of
Award) , payable on June 1 and December 1 of each year (the Interest Payment
Dates) , commencing June 1, 1993, unt il the principal amount has been paid or
r provided for. The Bonds of any one maturity shall all bear the same rate of
L interest. The Bonds shall bear interest from the most recent date to which
interest has been paid or provided for or, if no interest has been paid or
provided for, from October 1, 1992.
, ,
,
The Bonds shall mature on December 1 in each of the years and in the
amounts as follows:
Maturity Principal Maturi ty Principal
Date Amount Date Amount
1993 $150,000 1998 $190,000
1994 155,000 1999 195,000
1995 165,000 2000 200,000
1996 170,000 2001 205,000
r- 1997 180,000 2002 210,000
t Principal
"-
Year Amount
2011 $2,280,000
Those maturities, including the mandatory sinking fund redemption schedule set
forth below, are determined to be such that the total principal and interest
payments on the Bonds in any fiscal year in which principal is payable is not
more than three times the amount of those payments in any other fiscal year.
The Director of Finance of the City may adjust the principal amount
of Bonds maturing or subject to mandatory sinking fund redemption in each of
the years 1993 through 2011 if in her judgment it is advantageous to and in
the best interest of the City to make any such adjustments; provided, however,
that no such adjustment shall (i) increase or decrease the principal amount
maturing or subject to mandatory sinking fund redemption in any year by more
than twenty per cent (20%) of the amount maturing or subject to mandatory
sinking fund redemption for that year as set forth in this Section 2, or (ii)
cause the total principal and interest payments on the Bonds in any fiscal
year in which principal is payable to be more than three times the amount of
those payments in any other fiscal year. Any adjustments made by the Director
of Finance pursuant to this paragraph shall be reflected in final maturity and
r mandatory sinking fund schedules set forth in the Certificate of Award.
~ The Bonds shall be subject to redemption prior to stated maturity as
follows:
(a) Mandatory Sinking Fund Redemption. The Bonds maturing on
December 1, 2011 (the Term Bonds) shall be subject to mandatory redemption in
part by lot and be redeemed pursuant to mandatory sinking fund requirements,
at a redemption price of 100% of the principal amount redeemed, plus interest
accrued to the redemption date, on December 1, in the principal amounts and in
the years specified, as follows (the Mandatory Sinking Fund Requirements):
Principal Princ ipal
Year Amount Year Amount
2003 $220,000 2007 $250,000
2004 230,000 2008 270,000
2005 235,000 2009 275,000
2006 245,000 2010 275,000
If retired only by mandatory sinking fund redemption prior to their
stated maturity, there will remain $280,000 principal amount of Bonds due on
December 1, 2011 , to be paid at maturity. The aggregate of the money to be
deposited with the Bond Registrar for payment of principal of and interest on
the Bonds shall include amounts sufficient to redeem the principal amount of
Bonds set forth opposite the respective dates in the table above (less the
r amount of any credit as provided below).
L The City shall have the option to deliver to the Bond Registrar for
cancellation Term Bonds in any aggregate principal amount and to receive a
credit against the then current Mandatory Sinking Fund Requirement (and
corresponding mandatory redemption obligation) of the City as set forth in the
table above for any Term Bonds. That option shall be exercised by the City on
or before the forty-fifth day preceding the applicable mandatory redemption
date, by furnishing the Bond Registrar a certificate, signed by the Treasurer,
setting forth the extent of the credit to be applied with respect to the then
current Mandatory Sinking Fund Requirement. If the certificate is not timely
furnished to the Bond Registrar, the Mandatory Sinking Fund Requirement (and
- 2 -
tor t if--jjj----;O(illiIiiiliI
.
corresponding mandatory redemption obligation) shall not be reduced. A credit
against the then current Mandatory Sinking Fund Requirement (and corresponding
mandatory redemption obligation) also shall be received by the City for any
Term Bonds, which prior thereto have been redeemed (other than through the
operation of the Mandatory Sinking Fund Requirements) or purchased for
cancellation and cancelled by the Bond Registrar, to the extent not applied
theretofore as a credit against any redemption obligation. Each Term Bond so
delivered, or previously redeemed, or purchased and cancelled, shall be
credited by the Bond Registrar at 100% of the principal amount thereof against
the then current Mandatory Sinking Fund Requirement (and corresponding
,... mandatory redemption obligation). Any excess of that amount over the then
current Mandatory Sinking Fund Requirement shall be credited against
L subsequent Mandatory Sinking Fund Requirements (and corresponding mandatory
'-- ,-
redemption obligations) in the order directed by the Treasurer.
(b) Optional Redemption. The Bonds maturing on or after December 1,
2003 shall be subject to redemption by and at the sole option of the City, in
whole or in part in integral multiples of $5,000, on any date on or after
December 1, 2002, at the redemption prices equal to the following percentages
of the principal amount redeemed plus, in each case, accrued interest to the
redemption date:
Redemption
Redemption Dates (inclusive) Price
December 1, 2002 through November 30, 2003 102%
December 1, 2003 through November 30, 2004 101%
December 1, 2004 and thereafter 100%
If optional redemption of any Term Bonds at a redemption price
exceeding 100% of the principal amount to be redeemed is to take place as of
any applicable mandatory redemption date provided for pursuant to the above
provisions, the Term Bonds or portions of Term Bonds to be optionally redeemed
shall be selected by lot prior to the selection by lot of the Term Bonds to be
redeemed on the same date by operation of the mandatory redemption
r obligations. Bonds to be redeemed pursuant to this paragraph shall be
redeemed only upon written notice from the City to the Bond Registrar, given
'-' upon the direction of this Board by adoption of a resolution. That notice
shall spec ify the redemption date and the principal amount of each maturity of
Bonds to be redeemed, and shall be given at least 45 days prior to the
redemption date or such shorter period as shall be acceptable to the Bond
Registrar. In the event that notice of redemption shall have been given by
the Bond Registrar to the registered owners as hereinafter provided, there
shall be deposited with the Bond Registrar on or prior to the redemption date,
funds that, in addition to any other money available therefor and held by the
Bond Registrar, will be sufficient to redeem at the redemption price thereof,
plus interest accrued to the redemption date, all of the redeemable Bonds for
which notice of redemption has been given.
(c) Partial Redemption. If fewer than all of the outstanding Bonds
are called for redemption at one time, they shall be called as selected by,
and in a manner determined by, the City. If fewer than all Bonds of a single
maturity are to be redeemed, the selection of Bonds (or portions of Bonds in
amounts of $5,000 or any integral mu It i pIe s ) shall be made by the Bond
Registrar by lot in the manner determined by the Bond Registrar. In the case
of a partial redemption of Bonds by lot when Bonds of denominations greater
than $5,000 are then outstanding, each $5,000 unit of principal thereof shall
be treated as though it were a separate Bond of the denomination of $5,000.
If it is determined that one or more, but not all of the $5,000 units of
principal amount represented by a Bond are to be called for redemption, then
,....., upon notice of redemption of a $5,000 unit or units, the registered owner of
L. that Bond shall surrender the Bond to the Bond Registrar (1) for payment of
the redemption price of the $5,000 unit or units called for redemption
(including, without limitation, the interest accrued to the date fixed for
redemption and any premium), and (ii) for issuance, without charge to the
registered owner thereof, of a new Bond or Bonds of any authorized
denomination or denominations in an aggregate principal amount equal to the
unmatured and unredeemed portion of, and bearing interest at the same rate and
maturing on the same date as, the Bond surrendered.
(d) Notice of Redemption. The notice of the call for redemption of
Bonds shall ident ify (1) by designation, letters, numbers or other
- 3 -
.
distinguishing marks, the Bonds or portions thereof to be redeemed, (ii ) the
redemption price to be paid, (iii) the date fixed for redemption, and (iv) the
place or places where the amounts due upon redemption are payable. The notice
shall be given by the Bond Registrar on behalf of the City by mailing a copy
of the redemption notice by first class mail, postage prepaid, at least 30
days prior to the date fixed for redemption, to the registered owner of each
Bond subject to redemption in whole or in part at the registered owner's
address shown on the Bond Register maintained by the Bond Registrar at the
close of business on the fifteenth day preceding that mailing. Failure to
receive notice by mail or any defect in that notice regarding any Bond,
I'" however, shall not affect the validity of the proceedings for the redemption
of any Bond.
--
(e) Payment of Redeemed Bonds. Notice having been mailed in the
manner provided in the preceding paragraph, the Bonds and portions thereof
called for redemption shall become due and payable on the redemption date,
and, upon presentation and surrender thereof at the place or places specified
in that notice, shall be paid at the redemption price, plus interest accrued
to the redemption date. If money for the redemption of all of the Bonds and
portions thereof to be redeemed, together with interest accrued thereon to the
redemption date, is held by the Bond Registrar on the redemption date, so as
to be available therefor on that date and, if notice of redemption has been
deposited in the mail as aforesaid, then from and after the redemption date
those Bonds and portions thereof called for redemption shall cease to bear
interest and no longer shall be considered to be outstanding. If that money
shall not be so available on the redemption date, or that notice shall not
have been deposited in the mail as aforesaid, those Bonds and portions thereof
shall continue to bear interest, until they are paid, at the same rate as they
would have borne had they not been called for redemption. All money held by
the Bond Registrar for the redemption of particular Bonds shall be held in
trust for the account of the registered owners thereof and shall be paid to
them, respectively, upon presentation and surrender of those Bonds.
Section 3. The Bonds shall be signed by the City Manager and the
Director of Finance, in the name of the City and in their official capacities,
r provided that either or both of those signatures may be a facsimile. The
Bonds shall be issued in the denominations and numbers as requested by the
'-' original purchaser and approved by the Director of Finance, 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. No Bond shall be valid or obligatory for
any purpose or shall be entitled to any security or benefit under this
ordinance unless and until the certificate of authentication printed on the
Bond is signed by the Bond Registrar (as defined in Section 4) as
authenticating agent. Authentication by the Bond Registrar shall be
conclusive evidence that the Bond so authenticated has been duly issued,
signed and delivered under, and is entitled to the security and benefit of,
this ordinance. The certificate of authentication may be signed by any
authorized officer or employee of the Bond Registrar or by any other person
acting as an agent of the Bond Registrar and approved by the Director of
Finance on behalf of the City. The same person need not sign the cert if icate
of authentication on all of the Bonds.
Section 4. Star Bank, N.A. , Cincinnati, Ohio, is appointed to act as
the authenticating agent, bond registrar, transfer agent and paying agent for
the Bonds (the Bond Registrar) . The Director of Finance shall sign and
deliver, in the name and on behalf of the City, the Bond Registrar Agreement
between the City and the Bond Registrar (the Agreement) in substantially the
form as is now on file with the Clerk of Council. The Agreement is approved,
together with any changes or amendments that are not inconsistent with this
( ordinance and not substantially adverse to the City and that are approved by
the Director of Finance on behalf of the City, all of which shall be
'- conclusively evidenced by the signing of the Agreement or amendments to the
Agreement. The Director of Finance shall provide for the payment of the
services rendered and for reimbursement of expenses incurred pursuant to the
Agreement from the proceeds of the Bonds to the extent available and then from
other money lawfully available and appropriated or to be appropriated for that
purpose.
Section 5. The debt charges on the Bonds shall be payable in lawful
money of the United States of America without deduction for the services of
the Bond Registrar as paying agent. Principal sha 11 be payable when due upon
- 4 -
, .
presentation and surrender of the Bonds at the principal corporate trust
office of the Bond Registrar. Interest on a Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the
Bond was registered, and to that person's address appearing, on the Bond
Register (as defined in Section 6) at the close of business on the 15th day of
the calendar month next preceding that Interest Payment Date (the Record
Date) .
Section 6. So long as any of the Bonds remain outstanding, the City
will cause the Bond Registrar to maintain and keep at its principal corporate
(", trust office all books and records necessary for the registration, exchange
and transfer of Bonds as provided in this Section (the Bond Register).
L Subject to the provisions of Section 5, the person in whose name a Bond is
registered on the Bond Register shall be regarded as the absolute owner of
that Bond for all purposes of this ordinance. Payment of or on account of the
debt charges on any Bond shall be made only to or upon the order of that
person; neither the City nor the Bond Registrar shall be affected by any
notice to the contrary, but the registration may be changed as provided in
this Section. All such payments shall be valid and effectual to satisfy and
discharge the City's liabil ity upon the Bond, inc1 ud ing interest, to the
extent of the amount or amounts so paid.
Any Bond may be exchanged for Bonds of any authorized denomination
upon presentation and surrender at the principal corporate trust office of the
Bond Registrar, together with a request for exchange signed by the registered
owner or by a person legally empowered to do so in a form satisfactory to the
Bond Registrar. A Bond may be transferred only on the Bond Register upon
presentation and surrender of the Bond at the principal corporate trust office
of the Bond Registrar together with an assignment signed by the registered
owner or by a person legally empowered to do so in a form satisfactory to the
Bond Registrar. Upon exchange or transfer the Bond Registrar shall complete,
authenticate and deliver a new Bond or Bonds of any authorized denomination or
denominations requested by the owner equal in the aggregate to the unmatured
principal amount of the Bond surrendered and bearing interest at the same rate
and maturing on the same date.
r
If manual signatures on behalf of the City are required, the Bond
........ Registrar shall undertake the exchange or transfer of Bonds only after the new
Bonds are signed by the authorized officers of the City. In all cases of
Bonds exchanged or transferred, the City shall sign and the Bond Registrar
shall authenticate and deliver Bonds in accordance with the provisions of this
ordinance. The exchange or transfer shall be without charge to the owner,
except that the City and Bond Registrar may make a charge sufficient to
reimburse them for any tax or other governmental charge required to be paid
with respect to the exchange or transfer. The City or the Bond Registrar may
require that those charges, if any, be paid before the procedure is begun for
the exchange or transfer. All Bonds issued and authenticated upon any ex-
change or transfer shall be valid obligations of the City, evidencing the same
debt, and entitled to the same security and benefit under this ordinance, as
the Bonds surrendered upon that exchange or transfer.
Notwithstanding any other provisions of this ordinance, if it is
determined by the Director of Finance to be advantageous to the City, the
Bonds may be issued in book entry form in accordance with the provisions of
this Section. As used in this Section and this ordinance:
"Book entry form" or "book entry system" means a form or system under
which (1) the ownership of beneficial interests in Bonds and the principal of
and interest on the Bonds may be transferred only through a book entry, and
(Ii ) physical Bond certificates in fully registered form are issued by the
r City only to a Depository or its nominee as registered owner, with the Bonds
"immobilized" in the custody of the Depository. The book entry maintained by
"- others than the City is the record that identifies the owners of beneficial
interests in those Bonds and that principal and interest.
"Depository" means any securities depository that is a clearing
agency under federal law operating and maintaining, with its Participants or
otherwise, a book entry system to record ownership of beneficial interests in
Bonds or the principal and interest, and to effect transfers of Bonds, in book
entry form, and includes and means initially The Depository Trust Company (a
limited purpose trust company), New York, New York.
- 5 -
li'a"!c_'4.!;; "iJ<J'".:r:...... r-n
~
"Participant" means any participant contracting with a Depository
under a book entry system and includes security brokers and dealers, banks and
trust companies, and clearing corporations.
The Bonds may be issued to a Depository for use in a book entry
system and, if and as long as a book entry system is utilized, (i) the Bonds
may be issued in the form of a single, fully registered Bond representing each
maturity and registered in the name of the Depository or its nominee, as
registered owner, and immobilized in the custody of the Depository; ( ii) the
beneficial owners in book entry form shall have no right to receive Bonds in
",.,.. the form of physical securities or certificates; (iii) ownership of beneficial
I interests in book entry form shall be shown by book entry on the system
""- maintained and operated by the Depository and its Participants, and transfers
of the ownership of beneficial interests shall be made only by book entry by
the Depository and its Participants; and (iv) the Bonds as such shall not be
transferable or exchangeable, except for transfer to another Depository or to
another nominee of a Depository, without further action by the City.
If any Depository determines not to continue to act as a Depository
for the Bonds for use in a book entry system, the Director of Finance may
attempt to establish a securities depository/book entry relationship with
another qualified Depository. If the Director of Finance does not or is
unable to do so, the Director of Finance, after making provision for
notification of the beneficial owners by the then Depository and any other
arrangements deemed necessary, shall permit withdrawal of the Bonds from the
Depository, and authenticate and deliver bond certificates in registered form
to the assigns of the Depository or its nominee, all at the cost and expense
( including any costs of printing), if the event is not the result of City
action or inaction, of those persons requesting such issuance.
The Director of Finance is also hereby authorized and directed to the
extent necessary or required to enter into any agreements determined necessary
in connection with the book entry system for the Bonds, after determining that
the signing thereof will not endanger the funds or securities of the City and
after the approval of the form of any such agreement by the Director of Law.
r
Section 7. The Bonds shall be sold at not less than par at private
'-- sale and awarded by the Director of Finance as set forth in the certificate of
award, all in accordance with law and the provisions of this ordinance. The
Director of Finance shall cause the Bonds to be prepared and signed and
delivered, together with a true transcript of proceedings with reference to
the issuance of the Bonds, 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 Bonds with one or more other
bond issues of the City into a consolidated bond issue pursuant to Section
133.30(B) of the Revised Code.
Either or both of the Director of Finance or the City Manager shall
sign and deliver, in the name and on behalf of the City, the bond purchase
agreement between the City and the original purchaser of the Bonds (the Bond
Purchase Agreement) in substantially the form as is now on file with the Clerk
of Council. The Agreement is approved, together with any changes or amendments
that are not inconsistent with this resolution and not substantially adverse
to the City and that are approved by the Treasurer on behalf of the City, all
of which shall be conclusively evidenced by the signing of the Agreement or
r amendments to the Agreement.
I
'-' The preliminary official statement of the City relating to the
original issuance of the Bonds substantially in the form now on file with the
Clerk of Council is approved. The distribution and use of that preliminary
off icial statement is hereby approved. The City Manager and the Director of
Finance are each authorized and directed to complete and sign on behalf of the
City, and in their off icial capacities, that preliminary official statement,
with such modifications, completions, changes and supplements, as those
officers shall approve or authorize for the purpose of preparing and
determining, and to certify or otherwise represent, that the revised official
statement is a "deemed final" official statement (except for permitted
- 6 -
~. I'lU rrPII T""'!!'__
.
.
, .
omissions) by the City as of its date and is a final official statement for
purposes of SEC Rule 15c2-12(b)(1), (3) and (4) .
Those officers are each further authorized to use and distribute, or
authorize the use and distribution of, the final official statement and
supplements thereto in connection with the orig inal issuance of the Bonds as
may in their judgment be necessary or appropriate. Those officers and each of
them are also authorized to sign and deliver, on behalf of the City, and in
their official capacities, such cert if icates in connection with the accuracy
of the final official statement and any amendment thereto as may, in their
,... judgment, be necessary or appropriate.
"-' The submission by the City of an application to a bond insurer for a
policy insuring the City's obligation to make payments of principal of and
interest on the Bonds is hereby authorized. The Director of Finance is hereby
authorized, if in her judgment it is in the best interest of the City to so
proceed, to accept a commitment for insurance issued by a bond insurer, and
the payment of the premium for such bond insurance and any related expenses is
hereby authorized to be made from the proceeds of the Bonds to the extent
available and then from other money lawfully available and appropriated or to
be appropriated for that purpose.
Section 8. The proceeds from the sale of the Bonds, 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 Bonds are being issued. Any portion of those proceeds representing
premium and accrued interest shall be paid into the Bond Retirement Fund.
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, a direct tax annually during the period the Bonds
are outstanding in an amount sufficient to pay the debt charges on the Bonds
when due, which tax shall not be less than the interest and sinking fund tax
required by Section 11 of Article XII of the Ohio Constitution. The tax shall
be unl imited as to amount or rate, shall be and is ordered computed,
,- certified, levied and extended upon the tax duplicate and collected by the
1 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 Bonds when and as the same fall due. To the extent
necessary, the debt charges on the Bonds 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, subj ect 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 Bonds in such manner and to
such extent as may be necessary so that (a) the Bonds 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 thereon will not be treated as an item of tax preference
under Section 57 of the Code.
r
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 Bonds to be
and to remain excluded from gross income for federal income tax purposes, and
(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 Bonds 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
- 7 -
,
. . .
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 City hereby represents that the Outstanding Notes (the Refunded
Obligations) were designated as "qualified tax-exempt obligations" pursuant to
Section 265(b)(3) of the Code. The City hereby covenants that it will redeem
the Refunded Obligations from proceeds of, and within 90 days after issuance
of, the Bonds, and represents that all other conditions are met for treating
the Bonds as "qualified tax-exempt obligations" and as not to be taken into
account under subparagraph (D) of Section 265(b)(3) of the Code, without
,.... necessity for further designation, by reason of subparagraph (D)(ii) of
Section 265(b)(3) of the Code. Further, the City represents and covenants
l,-, that, during any time or in any manner as might affect the status of the Bonds
as "qualified tax-exempt obligations", it has not formed or participated in
the formation of, or benefited from or availed itself of, any entity 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 the formation of, or benefit from or
avail itself of, any such entity. The City further represents that the Bonds
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.
Each covenant made in this section with respect to the Bonds is also
made with respect to all issues any portion of the debt service on which is
paid from proceeds of the Bonds (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 Bonds from gross income for
federal income tax purposes, and the officers ident if ied above are authorized
to t.ake actions with respect to those issues as they are authorized in this
section to take with respect to the Bonds.
The Director of Finance, as the fiscal officer, or any other officer
of the City having respons i bil i ty for issuance of the Bonds 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 Bonds
as the City is permitted or required to make or give under the federal income
r 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 Bonds 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 Bonds, and (c)
to give one or more appropriate certificates of the City, for inclusion in the
transcript of proceedings for the Bonds, setting forth the reasonable
expectations of the City regarding the amount and use of all the proceeds of
the Bonds, 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 Bonds.
Section I!. The Clerk of Counc il is directed to deliver a certified
copy of this ordinance and of the certificate of award to the County Auditors
of Franklin, Union and Delaware Counties.
Section 12. This Council determines that all acts and conditions
r necessary to be performed by the City or to have been met precedent to and in
the issuing of the Bonds 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 Bonds 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 Bonds; and that no
statutory or constitutional limitation of indebtedness or taxation will have
been exceeded in the issuance of the Bonds.
Section 13. This Council finds and determines that all formal
actions of this Council concerning and relating to the passage of this
- 8 -
,-~~-- "__",,",_-'c...""_. ",..--~t\MliIi "
^ . .
!
ordinance were taken in an open meeting of this Counc il 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
or welfare of this City and for the further reason that this ordinance is
required to be immediately effective in order to issue and sell the Bonds
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
r' force and effect immediately upon its passage.
i
',,--
Attest: ~ C!.-- ~
Clerk of Council
Passed: September It!, 1992
Effective: September /1/, 1992
I hereby ~ertifv that copies of this Ord:nante/ReslIllltion were posted in the
City of Dublin in o((ordonce with Sedion 731.25 of the Ottio Revised Code.
~e~
Clerk of Council, Dublin, Ohio
r
'-
r"'
~
- 9 -
--'"-~.~--~..-...-
".
SUPPLEMENTAL 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 May 4, 1992, I certify in connection with your proposed issue
of $4,100,000 bonds (the Bonds) for the purpose of paying costs of providing
additional facilities at the Coffman Park Municipal Complex for the conduct of
municipal government operations by constructing, furnishing and equipping a
new police facility, and acquiring real estate and interests in real estate
and making site improvements thereon (the improvement) , that:
1- The estimated life or period of usefulness of the improvement is
at least five years.
2. The maximum maturity of the Bonds is December 1, 2011. That
maximum maturity is based on my calculation of the average number of years of
life or period 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: $890,000 for land acquisition, thirty years;
$4,083,490 for buildings and other structures, twenty-five years; and
$2,026,510 for equipment, furnishings and site improvements, ten years; the
weighted average is therefore twenty years. The Bonds are to be paid from
voted taxes approved by the electors of the City and the voters approved those
taxes and the Bonds for a period of twenty years. The first installment of
bonds issued pursuant to that voter approval was issued to mature on
December 1 in years 1992 through 2011; thus, the maximum maturity of the Bonds
is December 1, 2001.
Dated: September 11-, 1992 ~~';i~~
City of Dubl in, Ohio
~~