1972-086 OrdinanceBY: Ma or Hartlsub
PROVIDING FOR THE ISSUANCE OF A NOTE IN ANTICIPATION
OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF PAYING
COSTS OF CONSTXUCTING A MUNICIPAL C0~fPLEX FOR THE
CITY OF FAIRLAWN, TO HOUSE THE ADMINISTRATIVE, LEGIS-
LATIVE AND POLICE FUNCTIONS, TO BE OF CONCRETE AND
BRICK CONSTRUCTION, AND DECLARING AN EMERGENCY.
WHEREAS, pursuant to Ordinance No. 1971-43 passed March 15, 1971,
a note in the principal amount of $425,000 dated May 1, 1971 was issued for
the purpose hereinafter stated, to mature on April 30, 1972 but now outstanding
in the amount of $225,000 by reason of a partial payment thereof, and it
appears advisable in lieu of issuing bonds at this time to .issue a new note
in the amount of $142,000.00which together with other funds available for the
purpose will be used to retire such outstanding note; and
~,%{EREAS, the Director of Finance as fiscal officer has certified
to t~is Council that the estimated life of the improvement hereinafter mentioned
is at least five (5) years, and that the maximum maturity of the bonds herein-
after referred to is 25 years, and the maximum maturity of the note hereinafte.r
referred to, to be issued in anticipation of said bonds is May 1, 1976 if
sold publicly, or one (1) year if sold privately;
NOW, THEREFORE, BE IT ENACTED by the Council of the City of Fairlawn:
Section 1. That it is hereby declared necessary to issue bonds
of the City of Fairlawn in the principal sum of $142,000.00 for the purpose
of paying costs of constructing a Municipal Complex for the City of Fairlawn,
to house the administrative, legislative and police functions, to be of
concrete and brick construction.
Section 2. That such bonds shall be dated approximately ~ay 1,
1973, shall bear interest at the estimated rate of five per centum (5%)
per annum, payable semi-annually, until the principal sum is paid, and shall
mature in 25 substantially equal annual installments after their issuance.
Section 3. That it is necessary to issue and this Council hereby
determines that a note in the principal amount of $142,000.00 shall be issued
in amticipation of such bonds and to retire such existing note dated May 1,
1971. Such anticipatory note shall bear interest at the rate of
Three per centum ( $. %) per annum, such interest~
-t~o be'payable at maturity. Such note shall be dated April 30,1972 and shall
mature on or before April 30, 1973.
Section 4. Such note shall be executed by the Mayor and Director
of Finance and bear the seal of the corporation. It shall be payable at
the office of Akron National Bank and Trust Cg.;.,___~ron: Ohio ___,
and shall express dp 0n- it -f ce th'e' pur po e- for which it is issued-and that
it is issued pursuant to this ordinance.
Section 5. Subject to the rejection of such note by the officer
in charge of the Bond Retirement Fund for investment in such fund, such
note shall be and hereby is awarded and sold to_ .Ak?on~ .Na. tioDa~l_ Hank add
Tr..u_s.t._Cpmp..a~y, _Ak_ron~ .~h.io ..... , at the par value thereof together
~ith any premium and accrued intere$.t thereon; and the Director of Finance
is hereby authorized and directed to. deliver such note, when executed, to
such purchaser upon payment of suc~' ~urchase price. The proceeds from the
Ordinance No. 1972- 86
Con~inued
into the proper fund and ~sed for =he purpose for which such note is being
issued under the provisions of this ordinance. Any premium and accrued
interest received from such sale shall be transferred =o the Bond Retiremen~
Yund to be applied to the payment of the principal and tnt~erest of such
note in the manner provided by law. This municipality covenants that the
proceeds of such note shall not be invested or used in such manner that
such no~e would be "arbitrage bonds" for purposes of Section 103(d)(1) of
'.he Internal Revenue Code of 1954.
Section 6. Such note shall be the full general obligation of
this municipality and the full faith, credit and revenue of this municipality
are hereby pledged for the prompt payment of the same. The par value to
be received from the sale of the bonds anticipated by such note and any
excess funds resulting from the issuance of such note sha~' to the extent
necessary, be used for the retirement of such note at maturity, together
with interest thereon, and are hereby pledged for such purpose.
., Section. 7. That during the years while such note runs there shall
be levied on all the taxable property in this municipality, in addition
to all other taxes, a direct tax annually not less than that which would
have been levied if bonds had been issued without the prior issue of such
note. 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
~or 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 with the
interest collected on the same shall be irrevocably pledged for the payment
of the principal and interest of such note or bonds in anticipation of which
it is issued, when and as the same fall due.
Section 8. It is hereby determined that all acts, conditions ,
and things required to be done precedent to and in the issuance of such
note, in order to 'make it a legal, valid and binding obligation of this
municipality, have happened, been done and performed in regular and due
form as required by law; that no limitation of indebtedness or taxation,
either statutory or constitutional, will have been exceeded in the issuance
of such note.
Section 9. The Clerk of this Council is hereby directed to forward
a certified copy of this ordinance to the County Auditor.
Section 10. This ~r~...inance is.hereby declared to be an emergency
measure necessary for t~"~mmediate preservation of the public peace, health
and safety of this municipality, and for the further reason that the imme-
diate issuance of the note herein authorized is necessary to provide funds
to retire the outstanding note and thereby protect the credit of the City;
wherefore, this ordinance shall be in full force and effect from and immediately
after its passage and approval by the Mayor.
Passed ,-foril 17 .~.-~ , 1972' ,
b'~ar~_$s~J 7 Mes~'~re''~'w ,-:-'t~;'.- .... '~-- J~-~Iack\ L. Reed '
Acting Clerk ~f Council Vice2~President of Council
Approved' April 21 , 1972 ...... Approved as to form:
' A. Har%_anb~ Mayor Douglas 9. ~k~ Pirec%or of Law
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