50-19 - Authorize notes for street improvements - $1.5 million

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Placed on 15t reading & referred to Finance 12/16/19; 2°a reading 01/06/20. Please Substitute for the original. VARIOUS PURPOSE IMPROVEMENT NOTES, SERIES 2020 (ROADWAY PORTION) Bullock, Litten, Neff, O'Malley, Rader, Shachner ORDINANCE NO.50-19 By: i AUTHORIZING THE ISSUANCE OF SPECIAL OBLIGATION INCOME TAX REVENUE NOTES IN THE AMOUNT OF NOT TO EXCEED $1,500,000 IN ANTICIPATION OF THE ISSUANCE OF BONDS; TO PAY COSTS OF IMPROVING LAKEWOOD HEIGHTS BOULEVARD, RIVERSIDE DRIVE, BONNIEVIEW AVENUE, CANNON AVENUE, MARS AVENUE, VICTORIA AVENUE, ST. CHARLES AVENUE AND OTHER STREETS LOCATED WITHIN THE CITY, BETWEEN CERTAIN TERMINI, BY RESURFACING AND REPLACING CONCRETE, TOGETHER WITH ALL NECESSARY APPURTENANCES THERETO; PROVIDING FOR THE PLEDGE OF REVENUES FROM THE CITY'S 1.50% INCOME TAX TO SECURE THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE NOTES IN ANTICIPATION OF BONDS; AND APPROVING RELATED MATTERS; AND DECLARING AN EMERGENCY WHEREAS, the City of Lakewood (the "City") levies an income tax at a rate of 1.50% pursuant to Section 128 of the Codified Ordinances of the City (the "Income Tax") to provide funds for general municipal functions of the City; WHEREAS, pursuant to Article XVIII, Section 3 of the Ohio Constitution, the City is authorized to issue special obligation revenue bonds and bond anticipation notes supported by the Income Tax and in anticipation of the receipt of revenues of the Income Tax (the "Revenues") to provide funds for municipal purposes; WHEREAS, this Council desires to issue special obligation income tax revenue bond anticipation notes in an aggregate principal amount not to exceed $1,500,000 (the `Notes") to finance the costs of the improvement stated in the title of this ordinance (the "Project"); WHEREAS, the Notes shall be payable solely from and secured by the Revenues of the City; WHEREAS, this Council by a vote of at least two thirds 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 Section 2.12 of the Third Amended Charter of the City of Lakewood (the "Charter"), and that it is necessary for the immediate preservation of the public property, health and safety, and to provide for the usual daily operations 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 Council (the "Council") of the City of Lakewood, Ohio, that: Section 1. Issuance of Bonds. It is hereby declared necessary to issue revenue bonds of the City, in anticipation of the levy of the Income Tax and receipt of the Revenues, in the principal sum of not to exceed $1,500,000 (the "Bonds"), for the purpose of paying the cost of the Project. Section 2. Terms of the Bonds. The Bonds shall be dated prior to the maturity date of the Notes, shall bear interest at the maximum average annual interest rate presently estimated to be 5.00% per annum, payable semiannually until the principal sum is paid, and shall mature in 15 annual installments. Section 3. Issuance of Bond Anticipation Notes. It is necessary to issue, and this Council hereby determines that there shall be issued, notes in anticipation of the issuance of the Bonds. 14508752v3