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<br />Please Substitute for Ordinance No. 41..06. (Placed on 1$t Reading and
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<br />Referred to the Finance Committee 4/17/06. Placed on 2fid Reading 5/1/06)
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<br />ORDINANCE NO
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<br />41-06
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<br />By'
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<br />Antonio, Butler, Demro, Dever,
<br />FitzGerald, Madigan, Seelie.
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<br />AN ORDINANCE to take effect immediately provided it receives the affIrmative
<br />vote of at least five (5) members elected to Council otherwise, it shall take effect and be in force
<br />after the earliest peIjod allowed by law, to provide for the issuance of bonds, in the principal
<br />amount of $2,300,000 for the purpose of improving stonn and sanitary sewers
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<br />WHEREAS, pursuant to Ordinance No. 45-05, passed May 16, 2005, the Council
<br />of the City authorized the issuance of notes in anticipation of the issuance of bonds in the
<br />principal amount of $4,700,000 for the purpose hereinafter set forth, which notes were dated
<br />June 15,2005 and which notes win mature on June 15,2006, (the "2005 Notes"); and
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<br />WHEREAS, the Council of the City has detennined that $2,400,000 is now
<br />ávailahle to apply against the principal of the 2005 Notes and that after the application of
<br />$2,400,000 to the payment thereof, the remaining outstanding principal of the 2005 Notes (to
<br />wit, $2,300,000) shall be paid by the issuance of new notes in anticipation of the issuance of
<br />bonds for the purpose hereinafter stated; and
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<br />WHEREAS, the Director of Finance of the City of Lakewood, Ohio, as fIscal
<br />officer, has certified to this Council that the estimated life of the improvements hereinafter
<br />mentioned is at least five (5) years and has further certified that the maximum maturity of the
<br />honds in anticipation of which the notes will be issued is forty (40) years and that tbe maximum
<br />maturity of the notes issued in anticipation of bonds is twenty (20) years from the date of
<br />issuance of the notes originally issued for the improvements; and
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<br />WHEREAS, this Council, by a vote of at least five (5) members elected thereto,
<br />determines that this Ordinance is an emergency measure, and that this Ordinance shall take effect
<br />at the earliest date possible as set forth in ARTICLE ill, SECTIONS 10 AND 13 of the
<br />SECOND AMENDED CHARTER OF THE CITY OF LAKEWOOD, and that it is necessary for
<br />the immediate preservation of the public property, health and safety, and to provide for the daily
<br />operation of muriicipal departments in that the immediate issuance and sale of the notes herein
<br />authorized is necessary to provide funds for the construction of the improvements urgently
<br />needed to protect the health and safety of the citizens of the City;
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<br />NOW, THEREFORE, BE IT ORDAINED by the City of Lakewood, Cuyáboga
<br />County, Ohio that:
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<br />Section 1. It is hereby declared necessary to issue bonds of the City of
<br />Lakewood, Ohio (the "City") in the principal amount of $2,300,000 for the purpose of improving
<br />stonn and sanitary sewers
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<br />Section 2. The honds shan he dated approximately December I, 2006, shall bear
<br />interest at the now estimated rate of six per centum (6%) per annum, payable semi-annually until
<br />the principal sum is paid, and shall mature in forty (40) annual installments after their issuance
<br />such that the total principal and interest payments in any year in which principal is payable is
<br />substantially equal
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<br />Section 3, It is hereby determined that notes (hereinafter referred to as the
<br />"Notes") in the principal amount of $2,300,000 shall be issued in anticipation of the issuance of
<br />bonds for the above-described purpose. The Notes shall be sold at private sale and sball bear
<br />interest at the rate, fixed by the Director of Finance in his certificate awarding the Notes,
<br />provided that such rate shall not exceed eight per centum (8%) per annum. Interest on the Notes
<br />shall be payable at maturity, with provision, if requested by the original purchaser, that, in the
<br />event of default, the Notes shall bear interest, at a rate which shall not exceed ten per centum
<br />(10%) per annum, until the ptincipal sum is paid or provided for The Notes shall be dated their
<br />date of issuance, shall mature on a date that is between three months and one year, inclusive,
<br />from their date of issuance, all as determined by the Director of Finance The Notes shall not be
<br />subject to redemption by the City at any time prior to maturity, unless the original purchaser of
<br />the Notes requests that the Notes provide for such redemption, in which case provision shall be
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<br />{KLF3685DOC;1}
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