17-97 Water System Improvement Bond $200,000

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I'Io,\(~1!I) ON Lst Reading 6 Re£errt.,d F[NAN(TE COMblIT'I't!I~ on 3/[7/97. I~I,\CED ON 2nd Reading 4/7/97. ORDINANCE NO. 17-97 By: Boscia, Corrigan, Flannery, George, Roth, Seelie, Smith AN EMERGENCY ORDINANCE to provide for the issuance of $200,000 Water System Improvement Bond Anticipation Notes - 1997 Renewal of the City of Lakewood, Ohio, in anticipation of the issuance of bonds for the purpose of constructing improvements to the City's water system. WHEREAS, pursuant to Ordinance No. I%96 passed April 1, 1996, the Council of the City authorized the issuance of notes in anticipation of the issuance of bonds in the principal amount of $400,000 for the purpose hereinafter stated, which notes are dated May 9, 1996 and will mature M&y 9, 1997; and WHEREAS, the Council of the City has determined that $200,000 is now available to apply against the principal of said notes and that at~er the application of said $200,000 to the payment thereof the remaining outstanding principal of said notes (to wit, $200,000) shall be funded by the issuance of new notes in anticipation of the issuance of bonds for the purpose hereinafter stav~l; and WHEREAS, the Fiscal Officer has certified to this Council that the estimated life of the improvements hereinafer mentioned is at least five (5) years and has further certified the maximum maturity of the hereinafter mentioned bonds is forty. (40) years and that the maximum maturity, of notes issued in anticipation of said bonds is twenty (20) years from the date of issuance of the original notes; 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 provi~ 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 $200,000 for the purpose of constructing improvements to the City's water system. Section2. Said bonds shall be dated approximately May I, 1998, shall bear interest at the estimated rate of six per centum. (6%)- per annum, payable semi-aunually, until the principal sum is paid, and shall mature in such twenty (20) annual principal installments after their issuance thai th~ total principal and interes~ payments in any year in which principal is payable is substantially equal. Section 3. It is hereby determined that notes (hereinafter called the "Notes") in the principal amount of $200,000 shall be issued in anticipation of the issuance of said bonds for the above-describod purpose. The Notes shall bear interest at a rote not exceeding the maximum imerest rote of ten per eentum 00%) per annum, as may be fixed by the Fiscal Officer in her certificate awarding the Notes, such interest to be payable at maturity, with provision, if requested by the purohaser, that, in the event of default, the same shall bear interest at a rate not exceeding the maximum interest rote often per eentum 00%) per annum until the principal sum is paid; shall be dated their date of issuance and shall mann~ on a date between nine 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, Acting Director of Finance or Director of Public Works.