21-93-A Ordinance
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RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No. ___ZJ':':9_3.A_____ Passedm___ m______19____
AN ORDINANCE AUTHORIZING
THE APPROPRIATION OF FUNDS
FOR A COMPREHENSIVE
C ECONOMIC DEVELOPMENT PLAN
AND DECLARING AN EMERGENCY
WHEREAS, Dublin City Council established as a priority goal in 1992 the preparation
of a Comprehensive Economic Development Plan, and
WHEREAS, Dublin City Council recognizes the vital importance of clearly articulated
policies and programs to implement the City's economic development objectives, and
WHEREAS, Dublin City Council passed Resolution 40-92 in August of 1992 to
formalize its commitment to work jointly with the Chamber of Commerce, the Visitors
and Convention Bureau and other affected parties in the preparation of a Comprehensive
Economic Development Plan, and
WHEREAS, proposals to prepare a Comprehensive Economic Development Plan have
been received and reviewed, and the preliminary selection of a consultant has been made
by the City of Dublin, and
WHEREAS, it is necessary to appropriate additional funds to provide for the preparation
of a Comprehensive Economic Development Plan,
C WHEREAS, Council believes that a real and present emergency exists within the City
of Dublin;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State
of Ohio, 7 of the elected members concurring;
Section 1. That there be appropriated, from the unappropriated balance in the General
Fund, the amount of $65,000.00 to Account #01-03-10-2349 for the preparation of a
Comprehensive Economic Development Plan.
Section 2. That this Ordinance be, and hereby is, declared to be an emergency measure
necessary for the preservation of the public health, safety, and welfare and, therefore,
this Ordinance shall take effect and be in force immediately upon its passage.
Passed this /5-1-h. day of ~, 1993.
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Attest:
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Clerk of Council
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MEMORANDUM
TO: Dublin City Council Members
~\ FROM: Timothy C, Hansley, City Manager (
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~ SUBJECT: Substitute Senate Bill 359
DATE: February 8, 1993
INITIATED BY: Marsha J. Grigsby, Director of Finance
The attached correspondence from Squire, Sanders & Dempsey provides a
synopsis of Substitute Senate Bill 359.
As stated in their correspondence, this Bill allows local governments to take
advantage of new federal tax regulations pertaining to rebate of the profit
earned from investing bond and/or note proceeds.
This Bill allows City Council to authorize the investment income to be credited
a fund other than the bond fund. We are requesting the investment income
from the Tuller Road Improvement issue be credited to the General Obligation
Bond Retirement Fund and used to retire future debt service obligations for
those improvements.
In the future, we will be able to designate where the investment income will be
'i credited at the time of issuance. Each bond or note issue can be designated
differently and the designation can be changed at any time by ordinance.
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NEW. AUTHORITY TO CREDIT TO THE GENERAL lUND OR
OTHER FUND OR ACCOUNT INVESTKENT INCOME DERIVED !'ROM
INVESTING PROCEEDS FROM BOND AND NOTE ISSUANCES
(Substitute Senate Bill 359, Effective December 22, 1992)
Amended Ohio Revised Code Sections 133.02 and 5705.10 (excerpts from
Sub. S.B. 359 attached) permit interest and other investment income derived from
investing bond and note proceeds to be credited to, and used for the purposes
of, the general fund or any other fund or account as the taxing authority (coun-
cil, board, etc.) determines. The taxing authority also may provide for the use
of such income for the purpose for which the bonds or notes were issued, as
under prior law.
This new flexibility is intended to assure that Ohio local governments
and districts that issue governmental bonds and notes may take advantage of new
federal tax regulations pertaining to rebate of the profit earned from investing
issue proceeds.
By crediting such investment income (other than from a refunding es-
crow) to the general fund or other fund or account to which substantial tax or
other revenues of the issuer are also credited (called a "commingled fund" for
federal tax law purposes) that investment income is deemed to be .spent" on the
date deposited to such fund or account if that amount is reasonably expected to
be spent within six months after it is so deposited. The beneficial effect is
that from the date the investment income is deposited to the commingled fund it
need no longer be traced for arbitrage and rebate purposes, and no rebate to the
federal government need be paid on any investment profit derived from ~invest-
ing that investment income. (Nevertheless, the profits from investing the di-
rect proceeds from the sale of the bonds and notes, and from investing certain
other moneys deemed "gross proceeds", are subject to rebate unless one of the
rebate exceptions applies.)
If the investment income is left in the bond fund (e.g., improvement
fund) with moneys received from the sale of the bonds or notes and not invested
in a commingled fund, any reinvestment of that investment income continues to be
subject to rebate requirements unt il actually spent (subject to arbitrage and
rebate exceptions, such as for small issuers and for early expenditure of the
proceeds).
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The discretion given to taxing authorities under the Ohio amendments to
credit investment income to the bond fund, as before, or to the general fund or
other fund or account can be exercised by the taxing authority in different ways
for different bond or note issues, or the taxing authority can specify that such
investment income relating to all such governmental bonds and notes will be
credited in a particular way. It can change these directives at any time as to
future receipts of investment income. All of this is, of course, subject to any
~ applicable commitments pertinent to particular financings or to any applicable
\ charter provision.
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January 1993 SQUIRE, SANDERS << DEMPSEY
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XXCERI'TS FROM SUB. S. B . 359
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R.C. S133.02
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(!) NOTWITHSTANDING ANY OnmR LAW. nm INCOME FROM nm INVES'l'KENT OF
PROCDDS OF I'UBLIC'OBLIGATIONS OR FRACTIONALIZED INI'ERESTS IN PUBLIC OBLIGA-
""...., TIONS OF A PUBLIC ISSUER KAY BE CREDITED 'TO THE FUND OR ACCOUNT IN WHICH THOSE
\.. PROCEEDS ARE HELD. OR TO THE GENERAL FUND OR OTHER FUND OR ACCOUN!' AS THE
PUBLIC ISSUER AUTHORIZES. AND USED FOR THE PURI'OSES OF THAT FUND OR ACCOUNTS.
R.C. $5705.10
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All proceeds from the sale of s-eeft~.-fte~e.-er-eer~ifies~e-ef-ifteee-
~eefteSS-iSsHe PUBLIC OBLIGATIONS OR FRACTIONALIZED INTERESTS IN PUBLIC OBLIGA-
TIONS AS DEFINED IN SECTION 133.01 OF THE REVISED CODE. except premium and
accrued interest. shall be paid into a special fund for the purpose of such
issue. and any interest AND OTHER INCOME earned on money in such special fund
~ sftsii KAY be used for the for which the indebtedness was authorized
purposes
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OR KAT BE CREDITED TO THE GENl!:RAL lUND OR OTHER. roND OR ACCOUNT AS THE TAXING
AUTHORITY AUTHORIZES AND USED lOR THE PURPOSES OF THAT FUND OR ACCOUNT. The
premium and accrued interest received from such sale shall be paid into the
sinking fund or the bond retirement fund of the subdivision.
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