71-027 Ordinance - Laserfiche WebLink

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~i-~ ~ _z_ Section 5. Such notes shall be signed by the Mayor and Director of Finance and bear the seal of the corporation. They shall be payable in Federal Reserve funds of the United States of America at the main office of the National City Bank of Cleveland, Cleveland, Ohio, and shall express upon their face the purposes for which they are issued and that they are issued pursuant to this ordinance. Section 6. All assessments collected for the improvement aforesaid, and any unexpended balance remaining in the improvement fund after the costs and expenses of said improvement have been paid, shall be applied to the payment of said notes and the interest thereon until both are fully provided for. Section 7. Subject to the rejection of such notes by the Director of Finance for investment in the Bond Retirement Fund, such notes shall be sold by the Director of Finance at private sale at an interest rate not in excess of that specified in Section ~. The proceeds from such sale, except any premium and accrued interest, 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. T'he City covenants that the proceeds of said notes shall not be invested or used in such manner that any of said notes would be "arbitrage bonds" for purposes of Section 103(4)(1) of the Internal Revenue Code of 1954. Section 8. 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 prompt payment of the saw. 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 Hates shall to the extent necessary be used only for the retire- ment of said notes at maturity, together with interest thereon, and is hereby pledged for such purpose. Section 9. In the event that such assessments are not levied or bonds are not issued to provide a fund for the gayment of said notes at maturity, a general tax shall be levied against all of the property in said City for the payment of such notes and the interest thereon; provided, however, that 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 for the City's portion of said notes if bonds had been issued therefor without the prior issue of said notes. Said tax shall be and is hereby ordered computed, certified, levied and extended 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 collected. Said tax shall be placed before and in preference to all other items and for the full amount thereof. The funds derived from said tax levies hereby required shall be placed in a separate and distinct fund, which, together xith 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 10. The Clerk is hereby directed to forward a certified copy of this ordinance to the County Auditor. Section 11. This ordinance is hereby declared to be an urgency measure necessary for the preservation of the public peace, welfare and safety of this City, and for the further reason that the immediate issuance and sale of the notes herein authorized is necessary to provide funds with ~lhich to retire presently outstanding notes 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: APPROVED : ~~~ , _..__. u ~ ' ~ ~ ~~~ C rk o unc 1 Pres en of ouncil Mayor