78-92 1991 Motorized Equip Bonds $426,000

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PLACED ON FIRST READING & REFERRED TO the FINANCE COMMITTEE ON 9/8/92. ORDINANCE NO. 7 8 - 9 2 By: Boscia, Gallagher, George, Gibbons, Roth, Seelie, Smith AN EMERGENCY ORDINANCE to provide for the issuance of $426,000 1991 Motorized Equipment Bond Anticipation Notes - 1992 Renewal of the City of Lakewood, Ohio, in anticipation of the issuance of bonds for the purpose of purchasing motorized equipment and appurtenances thereto for various departments of the City. WHEREAS, the Fiscal Officer (as hereinbelow defined) has certified to this Council that the estimated life of the improvements hereinafter mentioned is at least five (5) years and has further certified the maximum maturity of the hereinafter mentioned bonds is five (5) years and that the maximum maturity of notes issued in anticipation of said bonds is ten (10) years from the date of issuance of the original notes; and WHEREAS, pursuant to Ordinance No. 75-91 passed September 3, 1991, the Council of the City authorized the issuance of notes in anticipation of. the issuance of bonds in the principal amount of $426,000 for the purpose hereinafter stated, which notes are dated October 11, 1991 and will mature on October 9, 1992; and WHEREAS, the Council of the City has determined that the outstanding principal of said notes shall be funded by the issuance of new notes in anticipation of the issuance of bonds for the purpose hereinafter stated; and WHEREAS, this ordinance is an emergency measure which is necessary for the immediate preservation of the public peace, property, health, safety and welfare in the City and for the further reason that the immediate issuance and sale of the notes herein authorized is necessary to provide funds to retire the outstanding notes which are about to mature and thereby protect the credit of the City; NOW, THEREFORE, BE IT ORDAINED by the City of Lakewood, Cuyahoga County, Ohio: Section 1. It is hereby declared necessary to issue bonds of the City of Lakewood in the principal amount of $426,000 for'the purpose of purchasing motorized equipment and appurtenances thereto for various departments of the City. Section 2. Said bonds shall be dated approximately October 1, 1993, shall bear interest at the estimated rate of six per centum (6%) per annum, payable semi-annually, until the principal sum is paid, and shall mature in five (5) annual installments after their issuance. Section 3. It is hereby determined that notes (hereinafter called the "Notes") in the principal amount of $426,000 shall be issued in anticipation of the issuance of said bonds for the above-described purpose. The Notes shall bear interest at a rate not exceeding the maximum interest rate of eight per centum (8%) per annum, as may be fixed by the Fiscal Officer in his certificate awarding the Notes, such interest to be payable at maturity, with provision, if requested by the purchaser, that, in the event of default, the same shall bear interest at a rate not exceeding the maximum interest rate of eight per centum (8%) per annum until the principal sum is paid; shall be dated their date of issuance; shall mature on a date between nine (9) months and one year from such date, as determined by the Fiscal Officer; shall not be subject to redemption by the City at any time prior to maturity; and shall be payable as to both principal and interest at the office of the Fiscal Officer of the City, or at banks or trust companies, as determined by the Fiscal Officer, without deduction for exchange, collection or service charge. "Fiscal Officer" as used in this ordinance means the City's Director of Finance, Assistant Director of Finance or Director of Public Works.