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<br />Please Substitute for Ordinance No, 39·06 (Placed on 1st Reading and
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<br />Referred to the Finance Committee 4/17/06, Placed on 2nd Reading 5/1/06),
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<br />ORDINANCE NO
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<br />39-06
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<br />By· Åntonio~ Butler~ Demro~ Dever, FitzGerãl¿
<br />Madigan~ Seelie.
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<br />AN ORDINANCE to take effect immediately provided it receives the affinnative
<br />vote of at least five (5) members elected t9 Council othetwise, it shall take effect and be in force
<br />after the earliest period allowed by law, to provide for the issuance and sale of notes of the City
<br />of Lakewood, Ohio, in anticipation of the issuance of bonds, in the principal amount of
<br />$4,840,000 for the purpose of improving waterlines
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<br />WHEREAS, pursuant to Ordinance No 43-05, 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 $4,840,000 for the purpose hereinafter set forth, which notes were dated
<br />June IS, 2005 and which notes will mature on June IS, 2006, (the "2005 Notes"); and
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<br />WHEREAS, the Council of the City has detennined that the outstanding principal
<br />of the 2005 Notes 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 />bonds in anticipation of which the notes will be issued is forty (40) years and that the maximum
<br />maturity of the notes issued in anticipation of bonds is twenty (20) year_s from the date of
<br />issuance of the notes originally issued for the improvements; and
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<br />WHEREAS, this Council, hy a vote of at least five (5) meII)hers elected thereto,
<br />detennines 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 IJI, 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 municipal 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, Cuyahoga
<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 aroount of $4,840,000 for the purpose of improving
<br />waterlines
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<br />Section 2. The bonds shall be 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 />snbstantiallyeqnal
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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 $4,840,000 shall be issued in anticipation of the issuance of
<br />bonds for the above·described pU1pose. The Notes shall be sold at private sale and shall 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 annurn, until the principal surn is paid or provided for Tbe Notes shall be dated their
<br />date of issuance, sha11mature on ~ date that is between three months and one year, inclusive,
<br />from their date of issuance, all as detennined 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 shan be
<br />made for calling the Notes for redemption upon ten (10) days' written notice to the Paying Agent
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<br />{KLF3684.DOC;1 }
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