58-91 Ordinance
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.. ORDINANCE NO. 58 -91
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE
OF $300,000 NOTES, IN ANTICIPATION OF THE ISSUANCE
OF 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, 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 $7,000,000 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 Const itut ion 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, 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 2 is at least five years, the estimated
maximum maturity of the bonds described in Section 2 is twenty years, and the
maximum maturity of the Notes described in Section 4, to be issued in
anticipation of the bonds, 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 $300,000 (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 shall be dated approximately April 1, 1992,
shall bear interest at the now estimated rate of 7.00% 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 $300,000 (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 10% 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 U:UlII Lue maturity date until the City pays 01 W~~C~ pLU.~~~on 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 7 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
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.. 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 Paying Agent) . The Notes shall be dated
the date of issuance and shall mature on April 15, 1992.
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 f acs imile. 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 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, the Notes shall be issued in the minimum denomination of $lOO,OOO each
or any whole multiple thereof, and shall not be exchangeable for other Notes
in denominations less than $100,000. 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 Section 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 cert if icates, 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 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.
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 out-
standing, 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,
cert if ied, 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 ;;,,,,~.:..~.u~u~ ~ _.._, ..11ich is irrevocably pledged for the p2~~--. -.& +-he.
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
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.
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. 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 (i i) 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 under Section 57
of the Code.
The City further covenants that (a) it will take or cause to be taken
Jf1/II!o> 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, (ii ) restrict the yield on investment property,
(iii) make time 1 y 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 Notes are hereby designated as "qualified tax-exempt obligations"
for purposes of Section 265(b)(3) of the Code. In that connection, the City
hereby represents and covenants that it, together with all its subordinate
entities or entities that issue obligations on its behalf, or on behalf of
which it issues obligations, in or during the calendar year in which the Notes
are issued, (i) have not issued and will not issue tax-exempt obligations
designated as "qualified tax-exempt obligations" for purposes of Section
265(b)(3) of the Code, incl ud ing the Notes, in an aggregate amount in excess
of $10,000,000, and (ii) have not issued, do not reasonably anticipate
issuing, and will not issue, tax-exempt obligations (including the Notes, but
excluding obligations, other than qual if ied 501(c)(3) bonds as defined in
Section 145 of the Code, that are private activity bonds as defined in Section
141 of the Code and excluding refunding obligations that are not advance
refunding obligations as defined in Section 149(d)(5) of the Code) in an
aggregate amount exceeding $10,000,000, unless the City first obtains a
written opinion of nationally recognized bond counsel that such designation or
issuance, as applicable, will not adversely affect the status of the Notes as
"qualified tax-exempt obligations" . 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 ,
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 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.
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(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
t:::'~.:llties, or mak:.:--_;; e special amounts in lieu of mak;n~
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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 cert if icat ions 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
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. 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 Counc il 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 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 10) 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 Counc il 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 Counc il and that all
deliberations of this Council and of any of its 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 Notes
which is necessary to enable the City to better provide police services at the
earliest possible time and thereby improve the public peace, safety and
welfare of the citizens of the City; wherefore, this ordinance shall be in
full force and effect immediately upon its passage.
Attest: ~ff~
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Clerk of C uncll
Passed: August d, 1991
Effective: August d. 1991
I hereby certify t~!lt r.-:" <' "' ",.,.,_^ !"'\" "'Jtlon were posted in the
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City of DubFn i:"
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Oerk of CoulKit,
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