70-72 BAN - construct storm & sanitary sewers

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ORDINArICE II0, 70-72 Werner BY: Messrs. Brockman, Grab~ Magnotto, McBride, Ush~ AN P~.~ERGE~ICY ORDINANCE to provide for the issuance of a note of the City of Lakewood, Ohio, in anticipation of the issuance of bonds for the purpose of paying costs of constructing and reconstructing storm and sanitary sewers together with the necessary' appurtenances thereto. YPHERFAS, this Council has heretofore ree.uested the Director of Finance bo issue his certificate as to the estimated life of the improve- ment and'the maximum maturity of the bonds hereinaCter referred to and of the notes to be issued in anticipation of said bonds, and the Director of Finance has certified to this Council such estimated life as exceeding five years and has further certified the maximum maturity of such bonds as forty years and of such note as five yes~s, or one year if sold privately; and WHEREAS, this Council by two-thirds vote of the members elected thereto determines that this ordinance is an emergency measure which is nec- essary for the immediate preservation of the oublic peace, property, health and safety and for the further reason that the ir~ediate issuance and sale of the note herein authorized is required to enable the City to enter the construction contracts to provide the improvements described herein which are urgently required in order to protect the health and property of the nearby residents of the City; NOW, THEREFORE, BE IT 0RDAI}~ED by' the Council of the City of Lake- wood, Cuyahoga County, Ohio: Section 1. That it is hereby declared necessary to issue bonds of the City of Lakewood in the principal sum of $500,000 for the purpose of pay- ing costs of constructing and reconstructing storm and sanitary sewers together with the necessary appurtenances thereto. Section 2. That said bonds shall be dated approximately December l, 1973, 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 fifteen substantially equal annual installments after their issuance. Section 3. That it'is necessary and this Council hereby determines that a note in the principal amount of $500,000 shall be issued in anticipation of the issuance of said bonds. Section 4. That such anticipator~ note in the amount_ aforesaid shall Der ceD~u~ ~, bear interest at the rate of Two and eighty-five hundredths ~2.85 ~) per annum, payable at maturity, and at the rate of ~o and eighty-five hundredths per centum (2.85%) per annum after maturity. Such note shall be dated as of the date of issuance and shall mature on or before one year from said date. Section 5. That such note shall be executed by the Mayor and Director of Finance and bear the seal of the corporation. It shall be pay- able at the office of the Director of Finance of the City of Lakewood, City Hall, Lakewood, Ohio, and shall express upon its face the purpose for which it is issued and that it is issued pursuant to this ordinance. Section 6. Said notes shall be first offered to the Director of Finance as officer in charge of the Bond Retirement Fund, and if not taken by said fund shall be and hereby awarded and sold to Central National Bank of Cleveland at par and accrued interest, and the pr6ceeds from such note, except any premium and accrued interest thereon, shall be paid into the proper fund and used for the purpose aforesaid and for no other purpose, and for which purpose said money is hereby appropriated. Any premium and accrued interest shall be transferred to the Bond Retirement Fund to be applied in the payment of principal and interest of said note in the manner provided by law. It is hereby certified that it is not ex?ected that the proceeds of the issue of such note will be used in a manner that would cause such note to be an arbitrage bond ~hder Section 103(d) of the Internal Revenue