Loading...
21-93-A Ordinance -",.,-"----_._,_.._.~"-~-~-,~.~_.- " 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. C Attest: ~~~ I Clerk of Council _~!""t,lllIJllllJ .,.~- ~, ".~",.""",'" - ","_".c_ " ~ jfj'lii w ,Iti'(l'itj-!/tili.' IIn , - MEMORANDUM TO: Dublin City Council Members ~\ FROM: Timothy C, Hansley, City Manager ( I ~ 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. ,... _ _ .,_'_'__~.,^'"'___"_o'_". _~ . _ _ ~.~~_cc~..~ ~< . [l!1l!J1 -r ..... ''''IIi- J~ ~ r , > ~ff~~0~ ~./~., ~d~ ~. (/7/.f(j ~o.f'-l'?t'Jt'J -G'~ ek. ~-tf~ ~., (/7/.f(j ~o.f'-l'#.P.P ~.r~~. .r~ ./k.u: .r~ 4/ ../oad Jt}d ../tJ<ed A::- f]/-t. A~ f]/-t -tf~, 6'b 482/S ~~.d~ JI~. 9.~ "-'~~~., i~.dJ~ ~~. ~/-tur JAN 20.1993 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). ,- L rl"1iJ . ~.i!l..IIi.:li: . . r/~,r/~~ff~' 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. "-' January 1993 SQUIRE, SANDERS << DEMPSEY ,,- j - 2_- ,... ".-' ~. , )l.m uD , XXCERI'TS FROM SUB. S. B . 359 '. R.C. S133.02 * * * (!) 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 * * * 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 ~ift4i:>-" 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. * * * "....