013-94 Ordinance
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ORDINANCE NO. /3 -94
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF
$4,800,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF
BONDS, FOR THE PURPOSE OF IMPROVING THE MUNICIPAL WATER
SYSTEM BY CONSTRUCTING AN ELEVATED WATER STORAGE TANK
AND WATER MAINS AND INSTALLING FIRE HYDRANTS, TOGETHER
WITH ALL NECESSARY APPURTENANCES, AND DECLARING AN
EMERGENCY.
IIfIIt to Ordinance No. 50-93 passed June 1993, notes in
WHEREAS, pursuant 7,
anticipation of bonds in the amount of $4,800,000, dated June 29, 1993, were
issued for the purpose stated in Section 1, to mature on March 29, 1994 (the
Outstanding Notes) ; and
WHEREAS, this Council finds and determines that the City should retire the
Outstanding Notes with the proceeds of the Notes described in Section 3; and
WHEREAS, the Director of Finance as fiscal officer of the City has
certified that the estimated life or period of usefulness of the improvement
described in Section 1 is at least five years, the maximum maturity of the bonds
described in Section 1 is forty years, and the maximum maturity of the Notes
described in Section 3, 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 $4,800,000 (the Bonds) for the purpose of improving the
municipal water system by constructing an elevated water storage tank and water
mains and installing fire hydrants, together with all necessary appurtenances.
Section 2. The Bonds shall be dated approximately December 1, 1994, shall
.""'" bear interest at the now estimated rate of 5-3/4% per year, payable semiannually
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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 $4,800,000 (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 6% 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 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, the 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 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 Notes
shall be dated their date of issuance and shall mature nine months from their
date, provided that the Director of Finance may, if it is determined to be
necessary or advisable to the sale of the Notes, establish a maturity date that
is up to seven days less than nine months from the date of issuance by setting
forth that maturity date 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
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the Director of Finance; provided, however, that no Note shall be issued in a
denomination less than $100,000 or be exchangeable for other Notes in
denominations less than $100,000. The entire principal amount may be
represented by a single Note. 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 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.
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.
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Section 9. During the year or years in which the Notes are outstanding,
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 within the
ten-mill limitation imposed by law, 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 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 Notes or the Bonds
when and as the same fall due. In each year to the extent the income from the
City's waterworks system is available for the payment of the debt charges on the
Notes and Bonds and is appropriated for that purpose, the amount of the tax shall
be reduced by the amount of the income so available and appropriated.
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 (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.
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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, (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 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.
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The City hereby represents that the Outstanding Notes dated June 29, 1993
and maturing March 29, 1994 (the Refunded Obligations) are treated as a
"qualified tax-exempt obligation" 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 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) (ii) 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 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 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 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.
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.
Section 11. The Clerk of Council is directed to deliver a certified copy
of this ordinance to the County Auditors of Franklin, Union and Delaware
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 9) 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 Council finds and determines that all formal actions of
this Council concerning and relating to the passage of this ordinance were taken
in an open meeting of this Council 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.
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Section 14. This ordinance is declared to be an emergency measure
necessary for the immediate preservation of the public peace, health, safety and
welfare of the 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 timely retire the Outstanding Notes and thereby
preserve its credit; wherefore, this ordinance shall be in full force and effect
immediately upon its passage.
Signed:
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presid g Off~c r
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Attest:
Clerk of Council
Passed: February 21, 1994
Effective: February J.l, 1994
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Clerk of (ooncil, Oublln, 0\110
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