72-024 Ordinance - Laserfiche WebLink

Home Browse Search

J? ? p,??4 - 2 - Section 5. Such notes sha11 be signed by the Mayor and Director of Finance and bear the seal of the corporation. They sha11 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 sha11 express upon their face the purpose for which they axe issued and that they are issued pursuant to this ordinance. Section 6, 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 Direc- tor of Finance at private sale at an interest rate not in excess of that specified in Section 4. The proceeds from such sa1e, except a.ny premium and accrued inter- est, sha11 be paid into the proper fund and used for the purpose aforesaid and for no other purpose. Any premium and accrued interest sha11 be deposited in the Bond Retirement Fund. The 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(d)(1) of the Internal Revenue Code of 1954. Section 7. Said notes sha11 be the fu11 general obligations of the City and the fu11 faith, credit and revenue of said City axe hereby pledged for the prompt payment of the same. Z'he par value to be received fram 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 retirement 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 sha11 be levied on all the taxable property in said City, in addition to a11 other taxes, a direet 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 ancl principal of such notes or of the bonds anticipated thereby. Said tax shall be and is hereby ordered computed, 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 collected. Said tax sha11 be placed before and in preference to a11 other items and for the fu11 amount thereof. The funds 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, sha11 be irrevocably pledged for the payment of the principal and interest of said notes or the bonds ir_ anticipation of which they are issued when and as the same fa11s due. Section 9. The Clerk is hereby directed to forward a certified copy of this ordinanee 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 immediate 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 sha11 take effect and be in force immediately upon its passage and approval by the Mayor. PASSED: . , C? ? 1 Francis J. 0 Ne' , President of Coun ' i ?. ATTEST: Nora T. Hill, Clerk of Council APPROVED : ? / • r alph P. Christman, Mayor :7,1 :, • < < ?. ,;_? , ..r .1 :%r? -,