Council corrects note-issuance ordinance for KeyBank building, adopts amendment and several other measures

The Port Clinton City Council on July 14 adopted an amendment to a previous ordinance governing the issuance and sale of notes tied to downtown financing and took a handful of other routine but time-sensitive actions.

By unanimous vote the council adopted Ordinance 28-26, which amends Ordinance 22-26 to align the maximum interest-rate cap on short-term notes with previously authorized bond terms. The amendment corrects a clerical cap that had limited the note maximum to 6 percent; staff said the bonds had a 7 percent limit and the amendment brings the documents into alignment. The council retained the emergency clause and adopted the ordinance by a 6-0 roll call.

During discussion a council member asked whether the city was selling notes or bonds, and the auditor explained the city is selling short-term notes (roughly 2.5 years) to bridge remaining costs tied to a renovation project and that institutional purchasers — not retail investors — typically buy them. The auditor also said Huntington National Bank submitted an interest rate proposal of 6.20 percent, with the true interest cost calculated at about 5.93 percent under the offered terms.

Council also took these actions: - Waived readings and adopted Resolution 26-5, a cybersecurity program required by Section 9.64 of the Ohio Revised Code, by unanimous vote. - Introduced Resolution 26-6 directing the tax commissioner to prepare a side-by-side analysis of the city’s in-house income-tax administration and the regional tax agency model; the study will compare costs and services for taxpayers. - Moved Ordinance 26-26 (water and sanitary sewer infrastructure improvements) to a second reading at the July 28 meeting.

The council’s actions were procedural but time-sensitive: staff said note closing is scheduled for July 20 and some items required emergency clauses to preserve financing flexibility and meet grant or contractual milestones.