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ORDINANCE NO. 94- 1 ~A BY: Councilman Lind AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF $150,000 NOTES, IN ANTICIPATION OF THE ISSUANCE OF BONDS, FOR THE PURPOSE OF IMPROVING THE ELECTRICAL SYSTEM AT CITY FACILITIES AND INSTALLING A BACKUP ELECTRICAL SYSTEM FOR THE CITY'S COMPUTER, TELEPHONE AND EMERGENCY LIGHTING SYSTEMS, TOGETHER WITH THE NECESSARY APPURTENANCES AND WORK INCIDENTAL THERETO, AND DECLARING AN EMERGENCY. WHEREAS, pursuant to Ordinance No. 93-123, passed on October 19, 1993, notes in the amount of $150,000 (the 1993 Notes) were issued in anticipation of bonds for the purpose described in Section 1, as a part of a consolidated issue of $545,000 Various Purpose Notes, Series 1993C, dated November 23, 1993, which 1993 Notes are to mature on November 23, 1994; and WHEREAS, this Council finds and determines that the City should retire the 1993 Notes with the proceeds of the Notes described in Section 3; and WHEREAS, the Director of Finance as fiscal officer of this City has certified to this Council that the estimated life or period of usefulness of each class of the equipment described in Section 1 is at least five years, the estimated maximum maturity of the Bonds described in Section 1 is eighteen years, and the maximum maturity of the Notes described in Section 3, to be issued in anticipation of the Bonds, is November 23, 2013; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of North Olmsted, Cuyahoga County, Ohio, that: Section 1. It is necessary to issue bonds of this City in the aggregate principal amount of $150,000 (the Bonds) for the purpose of improving the electrical system at City facilities and installing a backup electrical system for the City's computer, telephone and emergency lighting systems, together with the necessary appurtenances and work incidental thereto. Section 2. The Bonds shall be dated approximately July 1, 1995, shall bear interest at the now estimated rate of 6-1/2% per year, payable semiannually until the principal amount is paid, and are estimated to mature in eighteen annual principal installments that are substantially equal. The first principal installment is estimated to be payable on December 1, 1996. Section 3. It is necessary to issue and this Council determines that notes in the aggregate principal amount of $150,000 (the Notes) shall be issued in anticipation of the issuance of the Bonds and to retire the 1993 Notes. The Notes shall bear interest at a rate not to exceed 6% per year (computed on a 360-day per year basis), payable at maturity or at any date of earlier prepayment as provided for in Section 4 of this ordinance and until the principal amount is paid or payment is provided for. If requested by the original purchaser, the Notes may provide that, in the event the City does not pay or make provision for payment at maturity of the debt charges on the Notes, the principal amount of the Notes shall bear interest at a different