07-14 Issuance of notes for salt storage facility

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PLACED ON 1ST READING & REFERRED TO THE FINANCE COMMITTEE 2/18/14. 2ND READING 3/3/14. ORDINANCE NO. 7 -14 By: Anderson, Bullock, Juris, Madigan, Marx, Nowlin, O'Leary. AN ORDINANCE to take effect immediately provided it receives the affirmative vote of at least five members of Council, or otherwise to take effect and be in force after the earliest period allowed by law, providing for the issuance and sale of notes in a principal amount not to exceed $50,000, in anticipation of the issuance of bonds, to pay additional costs of replacing a salt storage facility, together with all necessary appurtenances thereto. WHEREAS, the Director of Finance, as fiscal officer of the City, has certified that the estimated life or period of usefulness of the improvement described in Section 1 is at least five years and that the estimated maximum maturity of the bonds described in Section 1 is 20 years, and the maximum maturity of the notes described in Section 3 is 20 years; and WHEREAS, this Council by a vote of at least five of its members determines that this ordinance is an emergency measure, and that this ordinance shall take effect at the earliest date possible as set forth in Article III, Sections 10 and 13 of the Second Amended Charter of the City of Lakewood, and that it is necessary for the immediate preservation of the public peace, property, health and safety, and to provide for the usual daily operation of municipal departments and further to allow the City to issue the notes with other notes to be issued by the City into a consolidated issue and obtain savings in the issuance of the notes; now, therefore BE IT ORDAINED BY THE CITY OF LAKEWOOD, OHIO: Section 1. It is necessary to issue bonds of this City in a principal amount not to exceed $50,000 (the "Bonds ") to pay additional costs of replacing a salt storage facility, together with all necessary appurtenances thereto (the "Improvement "). Section 2. The Bonds shall be dated approximately April 1, 2015, shall bear interest at the now estimated rate of 5 -1/2% per year, payable semiannually until the principal amount is paid, and are estimated to mature in 20 annual principal installments on December 1 of each year that are in such amounts that the total principal and interest payments on the Bonds in any fiscal year in which principal is payable are substantially equal. The first principal payment of the Bonds is estimated to be December 1, 2015. Section 3. It is necessary to issue and this Council determines that notes in a principal amount not to exceed $50,000 (the "Notes ") shall be issued in anticipation of the issuance of the Bonds to pay costs of the Improvement and the financing costs of the issuance of the Notes. The aggregate principal amount of the Notes to be issued (not to exceed $50,000) shall be determined by the Director of Finance in a final terms certificate in accordance with Section 6 of this Ordinance (the "Final Terms Certificate ") to be the aggregate principal amount of the Notes that is required to be issued at this time for the purpose stated in Section 2. The Notes shall be dated the date of their issuance and shall mature one year from the date of their issuance, provided, however, that the Director of Finance may, if it is determined to be necessary or advisable for the sale of the Notes, establish a maturity date that is up to 15 days less than one year from the date of the issuance of the Notes by setting forth that maturity date in the Final Terms Certificate. The Notes shall bear interest at a rate or rates not to exceed 5% per year (computed on the basis of a 360 day year consisting of twelve 30 -day months), payable at