019-92 Ordinance
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ORDINANCE NO. 19 -92
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE
OF $150,000 NOTES, IN ANTICIPATION OF THE ISSUANCE
OF BONDS, FOR THE PURPOSE OF PAYING COSTS OF
IMPROVING THE VEHICULAR TRANSPORTATION SYSTEM IN
THE CITY BY CONSTRUCTING, RECONSTRUCTING,
EXTENDING, OPENING, IMPROVING, WIDENING, GRADING,
DRAINING, CURBING AND CHANGING THE LINES OF
l//lll... MUNICIPAL ROADS, HIGHWAYS, STREETS, BRIDGES,
SIDEWALKS, BIKEWAYS AND VIADUCTS, ACQUIRING REAL
"'" ESTATE AND INTERESTS IN REAL ESTATE THEREFOR, AND
PROVIDING LIGHTING SYSTEMS AND ALL OTHER NECESSARY
APPURTENANCES, AND DECLARING AN EMERGENCY.
WHEREAS, at the election held on May 8, 1990, on the question of
issuing bonds of the City in the amount of $34,000,000 for the purpose stated
in Section 1 and of levying taxes outside of the limitation imposed by Section
2 of Article XII of the Ohio Constitution 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 Counc i1 has determined to issue notes in anticipation
of the issuance of a portion of those bonds; and
WHEREAS, pursuant to Ordinance No. 59-91 passed August 19, 1991,
notes in anticipation of bonds in the amount of $150,000, dated September 6,
1991, were issued for the purpose stated in Section 1, to mature on April 15,
1992 (the Outstanding Notes); and
WHEREAS, this Counc i1 finds and determines that the City should
retire the Outstanding Notes with the proceeds of the Notes described in
Section 3; and
,... WHEREAS, this Council has requested that the Director of Finance, as
fiscal officer, cert ify 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 3, to be
issued in anticipation of the bonds; and
WHEREAS, the Director of Finance as fiscal officer of this City has
certified to this Council that the estimated life or period of usefulness of
the improvement described in Section 1 is at least five years, the estimated
maximum maturity of the Bonds described in Section 1 is nineteen years, and
the maximum maturity of the Notes described in Section 3, to be issued in
anticipation of the bonds, is September 6, 2011 ;
NOW, THEREFORE, BE IT ORDAINED by the Counc il of the City of Dublin,
Franklin, Union and Delaware Counties, Ohio, that:
Sect ion 1. It is necessary to issue bonds of this City in the
aggregate principal amount of $150,000 (the Bonds) for the purpose of paying
costs of improving the vehicular transportation system in the City by
constructing, reconstructing, extending, opening, improving, widening,
grading, draining, curbing and changing the lines of municipal roads,
highways, streets, bridges, sidewalks, bikeways and viaducts, acquiring real
estate and interests in real estate therefor, and providing lighting systems
and all other necessary appurtenances.
r Section 2. The Bonds shall be dated approximately October 1, 1992,
'- shall bear interest at the now estimated rate of 7% per year, payable
semiannually until the principal amount is paid, and are estimated to mature
in nineteen 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 $150,000 (the Notes) shall be
issued in anticipation of the issuance of the Bonds and to retire the
Outstanding Notes. The Notes shall bear interest at a rate or rates not to
exceed 7% per year (computed on a 360-day per year basis), payable at maturity
and unt i1 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
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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, t.he 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
det.ermining that the payment at that bank or t.rust 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 the date of issuance
and shall mature not earlier than six months or later than nine months from
the dat.e of issuance with the Director of Finance to establish a specific
maturity date which, in her judgment, is most advisable to the sale of the
Notes and with that spec if ic maturity date set forth in the certificate of
award.
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, t.hat if the Notes
are combined pursuant to Section 6 of this Ordinance with one or more other
note issues into a consolidated issue with a principal amount of $1,000,000 or
more or otherwise treated for purposes of SEC Rule 15c2-12 (17 C.F.R.
240.15c2-12) as an issue with an aggregate principal amount of $1,000,000 or
more, no Not.e shall be issued in a denomination less than $100,000 or be
exchangeable for other Notes in denominations less than $100,000. The entire
I""'- principal amount may be represented by a single Note. The Notes shall not
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have coupons attached, shall be numbered as determined by the Director of
t 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 t.he 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.
The Director of Finance is authorized, if it is determined to be in the best
interest of the City, to combine this issue of Notes with one or more other
note issues of the City into a consolidated note issue pursuant to Section
133.30(B) of the Revised Code.
Sectlon 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.
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Section 8. The par value to be received from the sale of the Bonds
or of any renewal notes and any excess funds result ing from the issuance of
the Notes shall, to the extent necessary, be used to pay the debt charges on
the Notes at matur ity and are pledged for that purpose.
Section 9. During the year or years in which the Not.es are out-
standing, there shall be levied on all the taxable property in the City, in
addition t.o 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
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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 cert if ied, 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 Bonds shall be paid from municipal
income taxes lawfully available therefor under the constitution and laws of
,ttfI/IIto.. 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 wi 11 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, 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 Notes to the governmental
purpose of the borrowing, (i1) restrict the yield on investment property,
(i i 1) 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 City hereby represents that the Outstanding Notes 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 Outstanding Notes
from proceeds of, and within 90 days after issuance of, the Notes, and
represents that all other conditions are met for treating the Notes 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)(il) of Section 265(b)(3) of
the Code. Further, the City represents and covenants that, during any time or
in any manner as might affect the status of the Notes as "qualified tax-exempt
obligations", it has not formed or participated in the formation of, or
benefited from or availed itself of, any ent ity 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 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.
Each covenant made in this section with respect to the Notes is also
,... made with respect to all issues any portion of the debt service on which is
\' paid from proceeds of the Notes (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 Notes from gross income for
federal income tax purposes, and the officers identified above are authorized
to take actions with respect to those issues as they are authorized in this
section to take with respect to the Notes.
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
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income tax laws, including, without limitation thereto, any of the elections
provided for in Section l48(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 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 act ion shall
be in wr it ing and signed by the officer, (b) to take any and all other
r-... 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 I!. The Clerk of Council is directed to deliver a certified
copy of this ordinance to the County Auditors of Franklin, Delaware and Union
Counties.
Section 12. This Council determines t.hat 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 limit at ion 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 adopted in an open meeting of this Council and that all
deliberations of this Council and of any of its conunittees 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 inunediate preservation of the public peace, health, safety
or welfare of this City and for the further reason that this ordinance is
required to be inunediately effective in order to issue and sell the Notes
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
force and effect immediately upon its passage.
Attest: a/Yl,nA- {t.- ~
Clerk of Council
~.. Passed: March J & , 1992
I az,.-r1A- e . ~vL Clerk of Council, hereby certi that the
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......... March &, fol'l'lgoinq is 0 true copy of Ordmance/~<>IJto:'l No.
Effective: 1992 duly adopted by the Council of the City of Dublin, Oh1o, on the J & rJ....
day of 7n fll..J- , / '1 1.J- .
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Otrk .f Council, Dublin, Ohio
I ......, terfffy that copies of this Ordinance/.Re~ehfMn we" .
Oly of Dublin in accordance with Seer 731 2S ' . POsted In the
ron . of the GIIIO Revised Cod..
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Clerfc of Council. Dublin, Ohio
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