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  • Copyright 2013 by theOhio Municipal Advisory Council9321 Ravenna Road, Suite K Twinsburg, Ohio 44087-2445

    All rights reserved

  • This publication is dedicated to William Mac McDowell (1931 -1967), Duane N. Scott (1967 1992), and Kenneth W. Gurney (1992 2009), the three Directors that have provided guidance to the OMAC from 1931 to 2009. We thank them for their leadership, innovation and integrity.

  • PREFACEThe State of Ohio (the State or Ohio) and its political subdivisions are authorized to issue securities for a variety of purposes. Such issuances are complex and require knowledge of the many aspects of the law and the municipal securities market.

    Municipal Debt in Ohio, The Guide (the Guide) has been written by the Ohio Municipal Advisory Council (OMAC) to assist governmental officers and other individuals interested in public finance by providing a quick reference to the types of securities that may be issued by Ohio political subdivisions, the purposes for which they may be issued and the legal requirements and limitations applicable to such issuances. This publication is not intended to be used as a legal manual or textbook in the area of public finance in Ohio. This is the fourth book that OMAC has published with respect to the issuance of debt by Ohio political subdivisions. The Story of Municipal Debt in Ohio was published in 1982. Following a major revision of Chapter 133 (the Uniform Public Securities Law of the Ohio Revised Code (ORC), OMAC updated the original publication with The Guide to Municipal Debt in Ohio, published in 1993. Municipal Debt in Ohio, The Guide was published in 2005 to reflect any changes to Ohio law that had taken place since its previous publication. Changes in the laws through August 1, 2013 have been reviewed and the appropriate sections updated in this release.

    OMAC wishes to acknowledge attorneys Rebecca Princehorn and Paul Rutter of Bricker & Eckler LLP, Dennis Schwallie of Peck, Shaffer & Williams LLP, and John Larson of Squire, Sanders LLP;for their assistance in reviewing the legal portions of this publication; and to the OMAC staff members for their help in the publication process.

    OMAC is a nonprofit corporation, organized in 1931 by municipal bond dealers and banks to assist Ohio political subdivisions with their issuance of debt; and to provide the municipal bond market accurate and timely information regarding Ohios issuers of such debt.

    Christopher Scott, Director

    November, 2013

  • TABLE OF CONTENTSBACKGROUND ................................................................................1 TYPES OF SECURITIES ..................................................................4

    INTRODUCTION..........................................................................4

    CHAPTER 133 SECURITIES .......................................................5

    Chapter 133 Securities for Permanent Improvements ................5 General Obligation Securities .....................................................6 County Sales Tax Supported Securities......................................8 County Revenue Securities.........................................................9 Tax Anticipation Notes...............................................................9 Certain Self-Supporting Securities of a County or Township ....9 Chapter 133 Refunding Securities ............................................10 Chapter 133 Tax and Revenue Anticipatory Securities............11 Current Revenue Anticipation Securities .................................12 Special Assessment Anticipation Securities .............................13 Chapter 133 Securities for Final Judgments .............................14 Chapter 133 Securities for Costs of Real Estate Assessment ...14 Chapter 133 Securities for Certain Emergency Purposes.........14 Chapter 133 Securities for Housing..........................................15 Chapter 133 Securities for Agricultural Easements..................15 Other Securities Subject to Chapter 133...................................15

    TAX ANTICIPATION NOTES ISSUED UNDER CHAPTER 5705 (Tax Levy Law) ...................................................................17

    OTHER TYPES OF SECURITIES THAT ARE NOT CHAPTER 133 SECURITIES .........................................................................23

    Municipal Utility and Enterprise Revenue Securities ..............23 Municipal Income Tax Bonds ..................................................24 Tax Increment Financings ........................................................24 Township Special Obligations..................................................25

    MAXIMUM MATURITY OF CHAPTER 1 3 3 S EC UR IT IE S 26 MATURITY SCHEDULES OF S EC UR IT IE S ..........................29 INTEREST RATES ........................................................................31

  • SECURITY SALE PARTICULARS ...............................................32 C O S T S O F P E R M A N E N T I M P R O V E M E N T S THAT MAY B E FINANCED ....................................................34 ELECTIONS ....................................................................................36 DEBT LIMITATIONS ...................................................................37

    DETERMINATION OF NET INDEBTEDNESS (133.04 ORC)37

    TEN-MILL LIMITATION and RELATED INDIRECT DEBT LIMITATIONS ...........................................................................40

    Ten-Mill Tax Rate Limitation...................................................40 Indirect Debt Limitation ...........................................................41

    LIMITATIONS OF INDEBTEDNESS OF: ....................................43 STATE OF OHIO, The ................................................................43

    COUNTIES ..................................................................................45

    MUNICIPALITIES ......................................................................50

    TOWNSHIPS ...............................................................................54

    SCHOOL DISTRICTS.................................................................58

    Styling of School Districts in Ohio...........................................58 Special Needs Districts .............................................................62 Energy Conservation Debt........................................................62 Debt Issued For Emergency Purposes ......................................64 Unvoted Debt Payable from Tax Incentive Agreements..........64 Classroom Facilities..................................................................65 Joint Vocational School District ...............................................66

    LIBRARY DISTRICTS ...............................................................67

    County Free Public Library ......................................................67 Township Library .....................................................................67 Municipal Free Public Library..................................................67 School Libraries........................................................................67 County Library Districts ...........................................................68 Regional Library District ..........................................................68 Regional Library System ..........................................................68

    COMMUNITY COLLEGE DISTRICTS.....................................70

  • FIRE DISTRICTS and JOINT FIRE DISTRICTS ......................72

    JOINT TOWNSHIP HOSPITAL DISTRICTS............................74

    CONSERVANCY DISTRICTS...................................................75

    PARK DISTRICTS ......................................................................78

    PORT AUTHORITIES ................................................................80

    SANITARY DISTRICTS.............................................................84

    REGIONAL WATER and SEWER DISTRICTS........................86

    REGIONAL TRANSIT AUTHORITIES ....................................88

    JOINT AMBULANCE DISTRICTS ...........................................90

    JOINT RECREATION DISTRICTS ...........................................91

    DISTRICTS FOR JUVENILE DELINQUENT REHABILITATION.....................................................................92

    TOWNSHIP POLICE DISTRICTS or JOINT TOWNSHIP POLICE DISTRICTS...................................................................94

    SOLID WASTE MANAGEMENT DISTRICTS.........................96

    REGIONAL AIRPORT AUTHORITIES ....................................98

    CONVENTION FACILITIES AUTHORITIES ..........................99

    TOWNSHIP CEMETERY DISTRICTS or JOINT TOWNSHIP CEMETERY DISTRICTS .........................................................102

    NEW COMMUNITY AUTHORITIES .....................................103

    SUBDIVISIONS and THE ISSUANCE OF TA X ANT IC IPAT ION NOTES ......................................................106 GLOSSARY ...................................................................................108

  • BACKGROUND

    Article XIII, Section 6 and Article XVIII, Section 13 of the Ohio Constitution ("Constitution") adopted in 1912 authorize the Ohio General Assembly to pass laws limiting the powers of municipalitiesand other political subdivisions to incur debt and levy taxes and special assessments. Until 1927 each type of political subdivision had its own procedure for issuing debt. On April 21, 1927, the "Uniform Bond Act" was adopted to provide more consistent procedures for the issuance of debt by all counties, cities, villages and townships. In 1953, the "Uniform Bond Law" (former Sections 133.0

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