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ORDINANCE NO. 7~-88
<br />
<br />By: Brow~ Chinnock, Gallagher, Gazzana,
<br /> George, Graham, Wendling
<br />
<br /> AN EMERGENCY ORDINANCE to provid!e for $1,200,000 Water System
<br />Improvement Bond Anticipation Notes of the City of Lakewood, Ohio, in
<br />anticipation of the issuance of bonds, for the purpose of paying the
<br />cost of replacing water mains, fire hydrants and curb connections in
<br />certain streets in the City of Lakewood, together with the necessary
<br />appurtenances thereto.
<br />
<br /> WHEREAS, pursuant to Ordinance No. 38-88 passed May 2, 1988
<br />this Council authorized the issuance of notes in anticipation of the
<br />issuance of bonds in the principal amount of $1,200,000 for the purpose
<br />hereinafter stated, which notes were dated May 24, 1988 and will mature
<br />on August 24, 1988; and
<br />
<br /> WHEREAS, the Director of Finance, as fiscal officer, has
<br />certified to this Council that the estimated life of the improvements
<br />hereinafter mentioned is at least five (5) years and has further certi-
<br />fied the maximum maturity of the hereinafter mentioned bonds is forty
<br />(40) years and that the maximum maturity of notes issued in anticipation
<br />of said bonds is twenty (20) years from the date of issuance of the
<br />original notes, or one (1) year if sold privately; and
<br />
<br /> WHEREAS, this ordinance is an emergency measure which is
<br />necessary for the immediate preservation of the public peace, property,
<br />health, safety and welfare in the City and for the further reason that
<br />the immediate issuance and sale of the notes herein authorized is neces-
<br />sary to provide funds to retire the presently outstanding bond anticipa-
<br />tion notes at maturity and thereby preserve the credit of the City;
<br />
<br /> NOW, THEREFORE, BE IT ORDAINED by the City of Lakewood,
<br />Cuyahoga County, Ohio:
<br />
<br /> Section 1. That it is hereby declared necessary to issue
<br />bonds of the City of Lakewood in the principal amount of $1,200,000 for
<br />the purpose of replacing water mains, fire hydrants and curb connections
<br />in certain streets in the City of Lakewood, together with the necessary
<br />appurtenances thereto.
<br />
<br /> Section 2. That said bonds shall be dated approximately
<br />October 1, 1988, shall bear interest at the estimated rate of ten per
<br />centum (10%) per annum, payable semi-annually, until the principal sum
<br />is paid, and shall mature in twenty (20) substantially equal annual in-
<br />stallments after their issuance.
<br />
<br /> Section 3. That it is hereby determined that notes (herein-
<br />after called the "Notes") in the principal amount of $1,200,000 shall be
<br />issued in anticipation of the issuance of said bonds for the above-
<br />described purpose. The Notes shall bear interest at a rate not exceed-
<br />ing the maximum interest rate of fifteen per centum (15%) per annum, as
<br />may be fixed by the Director of Finance in his certificate awarding the
<br />Notes at private sale, such interest to ]be payable at maturity, with
<br />provision, if requested by the purchaser, that, in the event of default,
<br />the same shall bear interest at a rate not exceeding the maximum inter-
<br />est rate of fifteen per centum (15%) per annum until the principal sum
<br />is paid; shall be dated August 24, 1988 and shall mature on October 18,
<br />1988; shall not be subject to redemption by the City at any time prior
<br />to maturity; shall be designated "Water System Improvement Bond
<br />
<br />
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