Explanation
The Public Service Director was authorized to submit applications for Round 18 of the State Capital Improvement Program and to execute project agreement forms for approved projects by Ordinance 1651-2003 passed by City Council July 14, 2003. In Round 18 of the State Capital Improvement Program, twenty-year, zero percent (0%) interest loans totaling $2,461,000.00 were made available to the Transportation Division for two projects, the McKinley Avenue - Central Avenue to Souder Avenue Improvement project ($1,106,800.00) and Morse Road Phase I Improvement project ($1,354,200.00). In order to fully comply with Internal Revenue Service regulations regarding this loan it is necessary to adopt a resolution declaring the official intent and reasonable expectation of the City of Columbus on behalf of the State of Ohio (the borrower) to reimburse its State Issue II Project Fund (Fund 764) for the two projects mentioned above with the proceeds of tax exempt debt of the State of Ohio.
Fiscal Impact: This resolution will allow the Transportation Division to accept two loans from the Ohio Public Works Commission for the $2,461,000.00, zero percent interest loans awarded under the State Capital Improvement Program.
Emergency action is requested to expedite the receipt of these loan proceeds such that these funds can be used as soon as possible.
Title
To declare the official intent and reasonable expectation of the City of Columbus on behalf of the State of Ohio (the borrower) to reimburse the State Issue II Project Fund for the McKinley Avenue - Central Avenue to Souder Avenue and Morse Road - Phase I Improvement projects with the proceeds of the tax exempt debt of the State of Ohio for the Transportation Division and to declare an emergency. ($-0-)
Body
WHEREAS, the Transportation Division was offered an opportunity to borrow a total of $2,461,000.00 its McKinley Avenue - Central Avenue to Souder Avenue ($1,106,800.00) and Morse Road - Phase I Improvement projects ($1,354,200.00) in Round 18 of the State Capital Improvement Program at zero percent (0%) interest with a twenty year repayment period; and
WHEREAS, it has been determined that it is in the best interests of the City to borrow said funds; and
WHEREAS, a resolution of official intent is necessary to comply with Internal Revenue Service; and
WHEREAS, an emergency exists in the usual daily operation of the Public Service Department, Transportation Division, in that it is immediately necessary to authorize these actions to expedite the receipt of these loan proceeds such that these funds can be used as soon as possible, thereby preserving the public health, peace, property, safety and welfare; now, therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That on behalf of the State of Ohio, the City of Columbus reasonably expects to reimburse Fund 764, the State Issue II Project Fund, for the McKinley Avenue - Central Avenue to Souder Avenue Improvement project and the Morse Road - Phase I Improvement project as set forth in Appendix A of the Project Agreements with the proceeds of the debt issued by the State of Ohio.
SECTION 2. That this resolution is intended to constitute a declaration of official intent under United States Treasury Regulations Section 1.103-18.
SECTION 3. That the maximum aggregate principal amount of debt expected to be issued by the State of Ohio for reimbursement to the City of Columbus (the local subdivision) is $2,461,000.00.
SECTION 4. That the City Clerk be and hereby is directed to make a copy of this resolution available for the inspection and examination of all persons interested therein.
SECTION 5. That the City of Columbus finds and determines that all formal actions of this city concerning and relating to the adoption of this resolution were taken in an open meeting of the City of Columbus and that all deliberations of this city and any of its committees that resulted in those formal actions were in meetings open to the public, in compliance with all legal requirements.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this resolution is hereby declared to be an emergency measure and shall take effect and be in force from and after its adoption and approval by the Mayor or ten days after adoption if the Mayor neither approves nor vetoes the same.