72-023 Ordinance - Laserfiche WebLink

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1~ _,~.~ r - 2 - Section 5. Such notes shall be signed by the Mayor and Director of Finance and bear the seal of the corporation. They sha1.1 be payable in IAederal Reserve funds oP the United States of America at the main office of The Rational City Bank of Cleveland, Cleveland, Ohio, and shall express upon their face the purpose for which they are issued and that they are issued pursuant to this ordinance. Section 6. Subject to the re~ectuon of such notes by the Director of Finance for investment in the Bond Retirement Fund, such notes shall be sold by the Direc- tor of Finance at private sale at an interest rate not in excess of that specified in Section 4. The proceeds fresn such sale, except arty premium and accrued inter- est, shall be paid into the proper fund and used for the purpose. aforesaid and for no other purpose. Any premium and accrued interest shall be deposited in the Bond Retirement Fund. The City covenants that the proceeds of said notes shall not be unrested or used in such manner that any of said notes would be "arbitrage bonds" for purposes of Section 103(d)(1) of the Internal Revenue Code of 1954. Section 7. Said notes shall be the full. general obligations of the City and the full faith, credit and revenue of said City are hereby pledged for the proaaorpt payment of the same. The par value to be received from the sale of the bonds anticipated by said notes and any excess funds resulting from the issuance of said notes shall to the extent necessary be used only for the retixement of said notes at maturity, together with interest thereon, and is hereby pledged for such purpose. Section 8. During the year or years while such notes run there shall be levied on all the taxable property in said City, in addition to all other taxes, a direct tax annually not less than that which would have been levied if bonds had been issued therefor without the prior issue of said notes; provided, however, that the amount of such tax shall be reduced to the extent that surplus earnings of the sanitary sewerage system shall be available and appropriated for the payment of interest and principal of such notes or of the bonds anticipated thereby. Said tax shall be and is hereby ordered coanputed, certified, levied and ex- tended upon the tax duplicate and collected by the same officers, in the same manner and at the same time that taxes for general purposes for each of said years are certified, extended and CC)llected. Said tax shall be placed before and in preference to all other items and for the full amount thereof. Theilusd.s derived from said tax levies hereby required shall be placed in a separate and distinct fund, which, together with the interest collected on the same, shall be irrevocably pledged for the payment of the principal and interest of said notes or the bonds in anticipation of which they are issued when and as the same falls due. Section 9. The Clerk is hereby directed to forward a certified copy of this ordinance to the County Auditor. Section 10. This ordinance is hereby declared to be an emergency measure necessary for the preservation of the public peace, welfare and safety of this City, and for the further reason that the i~nediate issuance and sale of the notes herein authorized is necessary to provide funds with which to retire presently out- standing notes which are about to mature and thereby protect the credit of this City; wherefore, this ordinance shall take effect and be in force immediately upon its passage and approval by the Mayor. PASSED: ATTEST: ~/ Nora T. Hill, Clerk of Council Francis J. O i , Presi ent of Co ci APPROVED: a/~~~7 z Ralph E C stman, Mayor