Label
DPU052025OWDAWATERREFINANCINGLOAN
Utilities Administration
Doug Stephens (x1847)
Revised
Title
Authorizing the Mayor and the Department of Public Utilities to apply for, accept, and enter into a cooperative agreement between the City and the Ohio Water Development Authority providing for the refinancing of the outstanding principal balance of the City’s $12,305,000 Water System Revenue Refunding Bonds, Series 2015, dated August 18, 2015; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
The City (hereinafter referred to as the “LGA” or the “City”) is authorized under Article XVIII of the Constitution of the State of Ohio and the City’s Charter to (i) own and operate the public utility referred to as the Water System (the “Utility”), (ii) borrow money for the purpose of paying costs of improvements to the Utility and refunding outstanding obligations previously issued for that purpose and (iii) issue bonds secured by a pledge of and lien on the Net Revenues of the Utility. By Ordinance No. 345-84, passed on May 15, 1984, this Council authorized an Indenture of Mortgage dated as of June 1, 1984 (the “Original Indenture”), to secure water system revenue bonds issued by the City. The Original Indenture was amended and restated effective as of June 1, 2003, as provided in the Amended and Restated Indenture (Fifth Supplemental Indenture), under authority of Ordinance No. 250-03, passed on April 15, 2003 (the Original Indenture, as amended by the Amended and Restated Indenture and as further amended to date, is referred to herein as the “Indenture”).
Pursuant to Ordinance No. 220-15, passed on April 28, 2015, there were issued $12,305,000 Water System Revenue Refunding Bonds, Series 2015, dated August 18, 2015 (the “Refunded Bonds”), for the purpose of refunding for debt charges savings certain of the City’s then-outstanding $34,850,000 Water System Revenue Bonds, Series 2005, dated November 3, 2005, which were issued to pay costs of improvements to the Utility. The LGA desires to obtain a loan from the Ohio Water Development Authority (the “OWDA”) to refinance the Refunded Bonds on the terms set forth in the Cooperative Agreement (defined below) (the “Refinancing”) and the OWDA has indicated its willingness to make a loan for that purpose and on those terms.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. Approval and Authorization. The LGA hereby approves the Refinancing in cooperation with the OWDA under the provisions, terms and conditions set forth in the “Cooperative Agreement for the Refinancing of a State Water or Wastewater Project” in substantially the form as is now on file with the Clerk of Council (the “Cooperative Agreement”) and hereby authorizes the Mayor, Director of Finance, Director of Public Utilities, Director of Law and any other appropriate officer of the City, alone or in conjunction with any of the foregoing, to execute and deliver in the name and on behalf of the City to execute the Cooperative Agreement. The Cooperative Agreement is approved, together with any changes or amendments that are not inconsistent with this Ordinance and not substantially adverse to the City and that are approved by the Mayor, Director of Finance, Director of Public Utilities and/or Director of Law on behalf of the City, all of which shall be conclusively evidenced by the signing of the Cooperative Agreement.
SECTION 2. Other Documents. In connection with the Cooperative Agreement, the Mayor, Director of Finance, Director of Public Utilities, Director of Law, Clerk of Council and other City officials, each and all, as appropriate, are hereby authorized to take any and all other actions and to sign and deliver any and all other instruments, agreements, certificates and documents as may in their judgment be necessary, desirable, advisable or appropriate in order to give effect to the transactions contemplated to be performed on the part of the City under the Cooperative Agreement and this Ordinance.
SECTION 3. Retirement of Refunded Bonds. The LGA hereby approves the redemption of the Refunded Bonds, and hereby authorizes the Director of Finance and the Director of Public Utilities, alone or together, to designate the date on which such redemption is to occur.
SECTION 4. Severability. Each section of this Ordinance and each subdivision or paragraph of any section thereof is hereby declared to be independent and the finding or holding of any section or any subdivision or paragraph of any section thereof to be invalid or void shall not be deemed or held to affect the validity of any other section, subdivision or paragraph of this Ordinance.
SECTION 5. Compliance with Open Meeting Requirements. That this Council finds and determines that all formal actions of this Council and any of its committees concerning and relating to the passage of this Ordinance were taken, and that all deliberations of this Council and any of its committees that resulted in those formal actions were held, in meetings open to the public in compliance with the law.
SECTION 6. Declaration of Emergency; Effective Date. This Ordinance is declared to be an emergency measure necessary for the immediate preservation of the public peace, health, safety and property of the City and for the further reason that this Ordinance is required to be effective immediately in order to undertake the Refinancing, which is necessary to enable the City to currently refund the Refunded Bonds upon terms in the best interest of and advantageous to the City and thereby to achieve debt charges savings available under current favorable market conditions; wherefore, this Ordinance shall be in full force and effect from and immediately after its passage, or at the earliest time allowed by law.
Vote on emergency clause: yeas _____, nays _____.
Passed: _________________, as an emergency measure: yeas _____, nays _____.
Attest: ________________________ __________________________________
Clerk of Council President of Council
Approved: _____________________ __________________________________
Mayor
I hereby certify that the above is a true and correct copy of an Ordinance passed by Council ________________________.
Attest: ________________________
Clerk of Council