015-94 Ordinance
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ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF
$530,000 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 MUNICIPAL ROADS, HIGHWAYS,
STREETS, BRIDGES, SIDEWALKS, BIKEWAYS AND VIADUCTS,
f" ACQUIRING REAL ESTATE AND INTERESTS IN REAL ESTATE
THEREFOR, AND PROVIDING LIGHTING SYSTEMS AND ALL OTHER
i NECESSARY APPURTENANCES, AND DECLARING AN EMERGENCY.
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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 the ten-mill limitation 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, certify 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 1, to be issued in anticipation
of the bonds; and
WHEREAS, the Director of Finance has certified that the estimated life or
period of usefulness of that improvement is at least five years and that the
estimated maximum maturity of the bonds is seventeen years based upon the
weighted average of the amounts allocated to the classes of improvements, which
allocation is approved, ratified and confirmed, and the maximum maturity of the
notes is twenty years;
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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 $530,000 (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.
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
until the principal amount is paid, and are estimated to mature in seventeen
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 $530,000 (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 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
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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
L denominations and numbers as requested by the original purchaser and approved by
the Director of Finance. 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 thie 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 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 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 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 monies deposited to the Metatec
Corporation Tax Increment Equivalent Fund created pursuant to Section 5709.43 (A)
- of the Revised Code and Ordinance No. 09-94 passed by this Council on February
7, 1994, is available for the payment of the debt charges on the Notes and Bonds,
- the amount of the tax shall be reduced by the amount of the income so available
and appropriated. To the extent necessary, the debt charges on the Notes shall
also 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 (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
r 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
L 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.
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,
including 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 qualified 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 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.
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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.
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 make lighting and other improvements to the City's vehicular
transportation system at the earliest possible time, and thereby improve the
health, safety and welfare of the citizens of the City; wherefore, this ordinance
shall be in full force and effect immediately upon its passage.
Signed:
f" preSi~
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',- Attest: ~ C-. ~
Clerk of Council
Passed: Februaryp{--L, 1994
Effective: February 4, 1994
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