Explanation
To authorize the issuance of a special assessment bonds for the Brookshire Park Street Light Assessment Project. The bond will be sold to the Trustees of the Sinking Fund. The proceeds will retire a special assessment note maturing on August 19, 2005.
Title
Authorizing the issuance and sale of special assessment bonds in the amount of $181,533 for the Brookshire Park Street Light Assessment Project. ($181,533).
Section 55(b) of the City Charter
Body
WHEREAS, pursuant to Ordinance 1995-2003 adopted September 24, 2003, this Council determined to proceed with the street lighting project described below in accordance with Resolution 061X-2003 adopted by this Council on March 31, 2003; and
WHEREAS, pursuant to Ordinance 0887-2004 adopted May 17, 2004 notes in the principal amount of $299,000 (the "Outstanding Notes") were issued in anticipation of the issuance of bonds in anticipation of the levy and collection of special assessments for the purpose hereinafter stated; and
WHEREAS, the City Auditor has certified to this Council that the estimated life of the improvements to be constructed from the proceeds of the bonds and notes hereinafter referred to exceeds five (5) years, the maximum maturity of bonds being ten (10) years; and
WHEREAS, it is deemed necessary to issue bonds in the amount of $181,533 to provide for the payment of a portion of the principal of and interest on the Outstanding Notes;
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. Bonds of the City of Columbus, Ohio (the "Municipality") shall be issued in the principal sum of One Hundred Eighty-One Thousand Five Hundred Thirty-Three Dollars ($181,533) (the "Bonds") in anticipation of the levy and collection of special assessments for the purpose of providing funds to pay the costs of installing a high pressure sodium street lighting system with ornamental poles and underground wiring for the Brookshire Park Area, including Regina Avenue from Richardson Avenue to and including parcel numbers 010-097930 and 010-097931, Richardson Avenue from Eakin Road to St. Joseph Avenue, Bernadette Road from Richardson Avenue to Warren Avenue, Warren Avenue from Regina Avenue to St. Joseph Avenue, St. Joseph Avenue from Racine Avenue to Richardson Avenue, St. Cecelia Drive from Briggs Road to Rosedale Avenue, Schurtz Avenue from St. Cecelia Drive to Bronwyn Avenue, St. Jude Avenue from Rosedale Avenue to St. Matthew Avenue, Bronwyn Avenue from Briggs Road to St. Joseph Avenue, St. Matthew Avenue from Schurtz Avenue to Rosedale Avenue, St. Agnes Avenue from Parma Avenue to Rosedale Avenue, Parma Avenue from Briggs Road to Rosedale Avenue and Rosedale Avenue from Bellflower Avenue to St. Cecelia Drive, and to retire notes previously issued for such purpose.
Section 2. There shall be and is hereby levied annually on all the taxable property in the Municipality, in addition to all other taxes and inside the ten mill limitation, a direct tax (the "Debt Service Levy") for each year during which any of the Bonds are outstanding, for the purpose of providing, and in an amount which is sufficient to provide, funds to pay interest upon the Bonds as and when the same falls due and to provide a fund for the repayment of the principal of the Bonds at maturity or upon redemption. The Debt Service Levy shall not be less than the interest and sinking fund tax required by Article XII, Section 11 of the Ohio Constitution.
Section 3. The Debt Service Levy shall be and is hereby 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 such years are certified, extended and collected. The Debt Service Levy shall be placed before and in preference to all other items and for the full amount thereof. The funds derived from the Debt Service Levy shall be placed in a separate and distinct fund, which shall be irrevocably pledged for the payment of the premium, if any, and interest on and principal of the Bonds when and as the same falls due. Notwithstanding the foregoing, if the Municipality determines that funds will be available from other sources for the payment of the Bonds in any year, the amount of the Debt Service Levy for such year shall be reduced by the amount of funds which will be so available, and the Municipality shall appropriate such funds to the payment of the Bonds in accordance with law.
Section 4. The Bonds shall be designated "City of Columbus, Ohio Brookshire Park Street Light Assessment Bonds".
Section 5. The Bonds shall be issued only as one fully registered bond, in the denomination of $181,533, which shall be numbered R-1. The Bonds shall be dated August 18, 2005 shall mature on September 1, 2015 and shall bear interest at the rate of four and one-quarter per cent (4.25%) per annum payable annually on the 1st day of September of each year (the "Interest Payment Date") beginning September 1, 2005, until the principal sum is paid. Interest shall be calculated on the basis of a 360 day year of twelve 30 day months.
The Bonds shall be subject to mandatory sinking fund redemption on September 1, in the years and in the principal amounts as follows:
Mandatory Sinking
Year Fund Redemption
2006 $18,156.00
2007 18,153.00
2008 18,153.00
2009 18,153.00
2010 18,153.00
2011 18,153.00
2012 18,153.00
2013 18,153.00
2014 18,153.00
The remaining principal amount of the Bonds ($18,153.00) shall be payable on September 1, 2015, the stated maturity date.
The Bonds shall not be subject to optional redemption prior to maturity.
Section 6. The Bonds shall set forth the purposes for which they are issued and state that they are issued pursuant to the Bond Ordinance and shall be executed by the Mayor and the City Auditor of the Municipality, in their official capacities, provided that any of those signatures may be a facsimile. No Bond shall be valid or become obligatory for any purpose or shall be entitled to any security or benefit under the Bond Ordinance unless and until a certificate of authentication, as printed on the Bond, is signed by the Bond Registrar (as defined in Section 7 hereof) as authenticating agent. Authentication by the Bond Registrar shall be conclusive evidence that the Bond so authenticated has been duly issued and delivered under the Bond Ordinance and is entitled to the security and benefit of the Bond Ordinance.
The principal of and interest on the Bonds shall be payable in lawful money of the United States of America without deduction for the services of the Bond Registrar as paying agent. Except for the final payment of interest on and principal of the Bonds, interest on and mandatory sinking fund redemption payments of principal of the Bonds shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered, at the close of business on the 15th day (unless such 15th day is a non-business day, in which case the record date will be the preceding business day) of the calendar month preceding that Interest Payment Date (the "Record Date"), on the Bond Register (as defined in Section 7 hereof) at the address appearing therein. The final payment of principal of and interest on the Bonds shall be payable upon presentation and surrender of the Bonds at the office of the Bond Registrar. The Bonds shall bear interest from the later of the date thereof, or the most recent Interest Payment Date to which interest has been paid or duly provided for, unless the date of authentication of the Bonds is less than 15 days prior to an Interest Payment Date, in which case interest shall accrue from such Interest Payment Date.
Any interest on the Bonds which is payable, but is not punctually paid or provided for, on any Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease to be payable to the registered owner on the relevant Record Date by virtue of having been such owner and such Defaulted Interest shall be paid to the registered owner in whose name the Bonds are registered at the close of business on a date (the "Special Record Date") to be fixed by the Bond Registrar, such Special Record Date to be not more than 15 nor less than 10 days prior to the date of proposed payment. The Bond Registrar shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first class postage prepaid, to each Bondholder, at his address as it appears in the Bond Register, not less than 10 days prior to such Special Record Date, and may, in its discretion, cause a similar notice to be published once in a newspaper in each place where Bonds are payable, but such publication shall not be a condition precedent to the establishment of such Special Record Date.
Subject to the foregoing provisions of this Section 6, each Bond delivered by the Bond Registrar upon transfer of or in exchange for or in lieu of any other Bond shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond.
Section 7. The Trustees of the Sinking Fund of the City of Columbus is appointed to act as the authenticating agent, bond registrar, transfer agent and paying agent (collectively, the "Bond Registrar") for the Bonds. So long as the Bonds remain outstanding, the Municipality will cause to be maintained and kept by the Bond Registrar, at the office of the Bond Registrar, all books and records necessary for the registration, exchange and transfer of Bonds as provided in this Section (the "Bond Register"). Subject to the provisions of Section 6 hereof, the person in whose name the Bonds shall be registered on the Bond Register shall be regarded as the absolute owner thereof for all purposes. Payment of or on account of the principal of and interest on the Bonds shall be made only to or upon the order of that person. Neither the Municipality nor the Bond Registrar shall be affected by any notice to the contrary, but the registration may be changed as herein provided. All payments shall be valid and effectual to satisfy and discharge the liability upon the Bonds, including the interest thereon, to the extent of the amount or amounts so paid.
The Bonds may be transferred only on the Bond Register upon presentation and surrender thereof at the principal office of the Bond Registrar, together with an assignment executed by the registered owner or by a person authorized by the owner to do so by a power of attorney in a form satisfactory to the Bond Registrar. Upon that transfer, the Bond Registrar shall complete, authenticate and deliver a new Bond equal in the aggregate to the unmatured principal amount of the Bonds surrendered, and bearing interest at the same rate and maturing on the same date.
The Municipality and the Bond Registrar shall not be required to transfer or exchange the Bonds for a period of fifteen days next preceding an Interest Payment Date or the date of maturity.
In all cases in which Bonds are transferred hereunder, the Municipality shall cause to be executed and the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of this Ordinance. The transfer shall be without charge to the owner; except that the Municipality and Bond Registrar may make a charge sufficient to reimburse them for any tax or other governmental charge required to be paid with respect to the transfer. The Municipality or the Bond Registrar may require that those charges, if any, be paid before it begins the procedure for transfer of the Bonds. All Bonds issued upon any transfer shall be the valid obligations of the Municipality, evidencing the same debt, and entitled to the same benefits under this Ordinance, as the Bonds surrendered upon that transfer.
Section 8. The Bonds shall be sold at private sale to the Trustees of the Sinking Fund of the City of Columbus, Ohio (the "Original Purchaser") at a price of 100% of the principal amount thereof plus accrued interest, if any, from August 18, 2005 to the date of original delivery of the Bonds.
The Director of Finance, the City Auditor and the Clerk are authorized and directed to make the necessary arrangements on behalf of the Municipality to establish the date, location, procedure and conditions for the delivery of the Bonds to the Original Purchaser. Those officers are further directed to take all steps necessary to effect due execution, authentication and delivery of the Bonds under the terms of the Bond Ordinance.
The proceeds from the sale of the Bonds shall be deposited in the City Treasury and shall be credited to the proper Bond Retirement Fund to be applied to the payment of the principal of and interest on the Outstanding Notes at their maturity on August 19, 2005.
Any accrued interest or premium received from such sale shall be deposited in the City Treasury and shall be credited to the proper Bond Retirement Fund to be applied to the payment of the principal and interest of the Bonds in the manner provided by law. All moneys necessary to carry out the purposes of this Ordinance are hereby deemed appropriated for expenditure by the City Auditor.
Section 9. The City hereby covenants that it will comply with the requirements of all existing and future laws which must be satisfied in order that interest on the Bonds is and will continue to be excluded from gross income for federal income tax purposes, including without limitation restrictions on the use of the property financed with the proceeds of the Bonds so that the Bonds will not constitute "private activity bonds" within the meaning of Section 141 of the Internal Revenue Code of 1986, as amended (the "Code"). The City further covenants that it will restrict the use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary, after taking into account reasonable expectations at the time the debt is incurred, so that they will not constitute arbitrage bonds under Section 148 of the Code and the regulations prescribed thereunder (the "Regulations).
The City Auditor or the Director of Finance, or any other officer, including the City Clerk, is hereby authorized and directed (a) to make or effect any election, selection, designation, choice, consent, approval or waiver on behalf of the City with respect to the Bonds as permitted or required to be made or given under the federal income tax laws, for the purpose of assuring, enhancing or protecting favorable tax treatment or the status of the Bonds or interest thereon or assisting compliance with requirements for that purpose, reducing the burden or expense of such compliance, reducing any rebate amount or any payment of penalties, or making any payments of special amounts in lieu of making computations to determine, or paying, any excess earnings as rebate, or obviating those amounts or payments, as determined by the City Auditor or the Director of Finance, which action shall be in writing and signed by the City Auditor or the Director of Finance, or any other officer, including the City Clerk, on behalf of the City; (b) to take any and all actions, make or obtain calculations, and make or give reports, covenants and certifications of and on behalf of the City, as may be appropriate to assure such exclusion of interest from gross income and the intended tax status of the Bonds; and (c) to give an appropriate certificate on behalf of the City, for inclusion in the transcript of proceedings, setting forth the facts, estimates and circumstances, and reasonable expectations of the City pertaining to Section 148 and the Regulations, and the representations, warranties and covenants of the City regarding compliance by the City with sections 141 through 140 of the Code and the Regulations.
The City Auditor shall keep and maintain adequate records pertaining to investment of all proceeds of the Bonds sufficient to permit, to the maximum extent possible and presently foreseeable, the City to comply with any federal law or regulation now or hereafter having applicability to the Bonds which limits the amount of Bond proceed which may be invested on an unrestricted yield or requires the City to rebate arbitrage profits (or penalties in lieu thereof) to the United States Department of the Treasury. The City Auditor is hereby authorized and directed to file such reports with, and rebate arbitrage profits (or penalties in lieu thereof) to, the United States Department of the Treasury, to the extent that any federal law or regulation having applicability to the Bonds requires any such reports or rebates.
Section 10. It is hereby found and determined that all formal actions of this Council concerning and relating to the adoption of this Ordinance were adopted in an open meeting of this Council, and that all deliberations of this Council and of any of its committees that resulted in such formal action, were in meetings open to the public, in compliance with all legal requirements including Section 121.22 of the Ohio Revised Code.
Section 11. The City Clerk is hereby directed to forward certified copies of this Ordinance to the County Auditors of Franklin, Fairfield and Delaware Counties, Ohio.
Section 12. In accordance with Section 55(b) of the Charter of the City of Columbus, Ohio, this Ordinance shall take effect and be in force from and immediately after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.