HomeMy WebLinkAboutO-0408 - Water revenue bond issue (Special)<fb;,;p~_u~,,~
TOWN OF MARYSVILLE.WASHINGTON
ORDINANCE "NO.~t
AN ORDINANCE providirtg for the issuance of
$46.000.00 9f ."Water Revenue Bonds,1952,Series
C~'of the Town,0f Marysv;lle,Wasp.ington,~or the
purposeof,obtainingfunds witl:l1itp.ich to carry
out a wortion of the system orp;lan of additions
to and betterments and extensions of the water-
works utility of the Town of Mawysville wrovided
for in Ordinances Nos.384 an(jl395;fixing the
date.f9rm.denominations.maturities.terms and
covenants of sa+d bonds;and providing for the
sale of said bondS to Terry Thompson of Seattle,
Washington.
WHEREAS,the Town Council of the Town of Marysville.
Washington,by Ordinance No.384,passed the 14th day of July,
1952,swecified and adowted a system or plan for making addi-
tions to and betterments and extensions of the existing water-
works utility of the Town,authorized the issuance and sale of
water revenue bonds in an amount of not to exceed $280,000.00
war value,and provided for the issuand and sale of $134,000.00
par value of "Water Revenue Bonds.1952,Series A"to pay the
costs of acquiring,constructing and completing a portion of the
system or plan for making additions to and betterments and ex-
tensions of the waterworks utility of the Town,of which $124,000.00
par value of said Series A bonds are presently outstanding;and
WHEREAS.there was included as a part of said syst~m or
plan the replacement.improvement and ~xtension as deemed neces-
sary or advisable by the Town Engineer of all water mains and
laterals embraced within the water distribution system within
the corporate limits of the Town of Marysville,the details thereof
to be described thereafter by ordinance prior to the authorization
of such work;and
1.
"
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WHEREAS.the Town Council.by Ordinance No.395.
passed the 15th day of February.1954.described in detail the
water mains and laterals embraced within said water distribution
system;ordered the construction of a portion thereof.to-wit:
all water mains and laterals covering the area between 1st Street
and 5th Street and Ash street to Liberty Street.inclusive;and
provided for the issuance and sale of $100.000.00 par valUe of
"Water Revenue Bonds.1952.Series B"to pay the costs of acquir-..
ing.constructing and completing said portion of the water dis-
tribution system.all of which bonds are presently outstanding;
and
WHEREAS.the Town Council has now determined to complete
the remaining portion of said water distribution system as detailed
in said Ordinance No.395.NOW.THEREFORE.
BE IT ORDAINED BY THE ToWN COUNCIL OF THE TOWN OF MARYS-
VILLE.WASHINGTON.as follows:
Section 1.The following portion of that part of the sys-
tem or plan for making additions to and betterments and extensions
of the waterworks utility of the Town.as adopted in Ordinance No.
384.the water distribution system portion thereof being described
in further detail in Ordinance No.395,shall be immediately under-
taken.to-wit.the construction and installation of all water mains
and laterals covering the area from 5th Street north to and including
Grove Street.and from Ash Street to Liberty street.
There shall be included in the foregoing the acquisition
and installation of all necessary valves.fittin~meters.hydrants.
couplings,connections.eqUipment.appurtenances.easements and
rights-of-way that may be required,and there shall be included the
performance of such work as may be incidental and necessary to the
foregoing construction and installation.
Pipe shall be of cast iron.asbestos,cement or other
suitable permanent type material.
2.
~~q
Section 2.The cost OfaCqUir~~~i"constrU<itingiandcom-
pleting the foregoing portion of thesys"tiEim or plan for making
additions to and betterments and extensions of the waterworks utility
of the Town.shall be paid from the proceeds received from the issu-
ance and sale of $46,000.00 par value of "Water Revenue Bonds,1952,
Series e",hereby authorized to be issued.The bonds shall be in
denominations of $1,000.each,shall be numbered from 1 to 46,in-
clusive,shall be dated January 1,1955,shall bear interest at the
rates hereinafter set forth,interest to be payable semiannually on
January 1st and July 1st of each year,interest to maturity being
evidenced by coupons to be attached to the bonds with full obliga-
tion on the part of the Town to pay interest at the same rate or
rates from and after the bond maturity date until the bonds With
interest are paid in full.Both principal of and interest on the
bonds shall be payable in law~ul money of the United States at the
office of the Town Treasurer of the Town of Marysville,Washington,
and the bonds shall be an obligation only against the "Water Revenue
Bond Fund,1952"created by Ordinance No. 384 •.The bonds shall
mature serially,annually,and shall bear interest in accordance
with the following schedule,to-wit:
•
Bond Numbers Amounts Interest Rates Maturities
J/O~1 to 5,inclusive 5,000 ~*%July 1,1956
Y 6 to 10,"5,000 <~'7o July 1,1957
11 to 15,~'5,000 ~~"jI%July 1,1958 Y16to20 "5,000 .l0/,.,..July 1,1959 ~',.
21 to 25,II 5,000 a +'~,,,July 1,1960
26 to 30,II 5,000 ,,~0/"July 1,1961
31 to 35,II 5,000 :l~'l""JUly 1,1962
36 to 40,II 5,000 2.3/....7.july 1,1963
41 to 46,II 6,000 .20/",,,.July 1,1964
Section 3.The Town of Marysville reserves the right to
redeem any or all of the outstanding bonds of said series at par,
plus accrued interest,on any semiannual interestiB~yment date on and
after January 1,1960.Said bonds shall be redeemEl<ilin inverse numer-Lcall
order,highest numbers first,by giving at leastthrity days notice of
such intended redemption by publication thereof in the official newspaper
of said Town,such notice to be pUblished once not less than 30 nor
more than forty-five days prior to the call date,and by mailing a copy
3.
-:,.
of.such notice to Terry Thompson, 1411 Fourth Avenue Building,
Seattle,Washington,at least thirty days prior to the call date.
in~erest on any bonds so called for redemption shall cease on the
date fixed for such redemption.
Section ~.The "Water Revenue Bond Fund,1952",created
by Ordinance No.384,has been divided into two accounts;namely,
a"Principal and Interest Account ll and a "Reserve Account ll
•So long
as bonds of said Series Care outstanding against such fund,the
Town Council of the Town of Marysville shall set aside and pay into
said fund,in addition to the amounts to be paid therein for the
outstanding "Water Revenue Bonds,1952,Series A"and the outstand-
ing "Water Revenue :Bonds,1952,Series B",out of the gross revenues
of the waterworks utility of the Town,a fixed amount without regard
(b)Into the "Reserve Account",monthly,beginning March 1,
1955,at least $100.00 until the sum of $6,000.00,in addition to the
$9,600.00 to be accumulated for the Series A bonds and the $3,400.00
to be accumulated for the Series B bonds,has been accumulated therein.
Said sum shall be accumulated by no later than February 1,1960.The
"Reserve Account"may be accumulated from any other moneys which the
Town of Marysville may have available for such purpose in addition
to using said revenues therefor.The "Reserve Account"shall be main-
tained in such amount at all times so long as any Series C bonds are
outstanding:Provided,however,that when the total amouht in said
special fund shall equal the total amount of principal and interest
on all outstanding bonds of Series A,aeries B and Series C to the
last maturity thereof,no further payments need ~e made into said
special fund.
4.
o "
In the event that there shall be a deficiency in the
"Principal and Interest Account"in said special fund to meet
maturing instalfments of either"principal or interest,as the case
may be,such deficiency shall be made up from the "Reserve Account"
by the withdrawal of cash therefrom for that purpose.Any deficiency
created in the "Reserve Account"by reason of any such withdrawal
shall then be made up from the moneys from the revenues of the water-
works utility first available after making necessary provision for the
required payments into the "Principal and Interest Account."The
moneys in the "Reserve Account"shall otherwise be held intact and
may be apPlied"against the last outstanding bonds of the total issue
of "Water Revenue Bonds,1952."
lUI moneys in the "R~serveAccount"above provided for may
be kept on deposit in the official bank depository of the Town of
Marysville or in any national bank or ~~be investe.d in United states
Government obligations maturing not later than twelve years from date
of issue.Interest on any such investment or on suc~bank account
shall be deposited in'and'be'come a part of the "Rfl!!erve Account"until
there shall be a total reserve of $19,000.00 in'the "Reserve Account"
.,
as aforesaid for said Series A,Series B and Series e bonds.
Section 5.The Town of Marysville shall establish,main-
tain and collect such r.tes and charges for water service,as long as
any Water Revenue Bonds,1952,Series A,Series B and Series e are
outstanding,as will make aval1a:ble for the payment of the principal of
and interest on all such bonds as the same shall accrue,an amount
equivalent to at least 1.4 times the average annual debt service of
both principal and interest of said Series A,Series B and Series e
bonds,after deducting the cost of maintenance,operation and taxes
from the revenues of the waterworks utility.
Section 6.The bonds presently to be issued and sold shall
be known iaa "Water Revenue BOnds,1952,Series c"and shall be in
sUbstantially the following f0rm:
5.
,"
No •__---'~
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$1,000.00
UNITED STATES OF AMERICA
STATEOF'WASHINGT0N
TOWN OF MARYSVILLE
WATER REVENUE EOND,1952,SERIES C
KNOW ALL~MEN EY THESE PRESENTS that the Town
of Marysville,State.of Wash:tngtcm,acknowledges
itself to ow~rand for va~.ereceivedherebypro-
mises to pay to bearer on the 1st day of July,
19 ,the principal.sum of
ONE THOUSAND DOLLARS
together with interest thereon at the rate of
~~/'i per cent per annum,payable semiannually
on the 1st day of January and July of each year
upon the presentation and surrender of the attach-
ed interest coupons as they severally mature up
to the bond maturity date,and with full obliga-
tion on the part of the Town to pay interest at the
mme rate from and after the maturity date until this
b~nd with interest is paid in full.Eoth principal
and interest are payable in lawful money of the
United$;:t;ates at the office of the TownTreasurer of
Marysville,Washington,solely out of the special
:t'Ulld cr&atedbY Ordinance No.384,known as "Water
Revenue Eond Fund,1952",into which fund the Town
of Marysville.hereby irrevocably binds itself to
pay certain fixed amounts out of the gross revenues
of the municipal waterworks utility,now belonging
or which'may hereafter belong to said Town,includ-
ing any additions,replacements,extensions and
betterments now or at any time hereafter made or con-
structed,without regard to any fixed proportion,
namely,an amount SUfficient to pay the principal of
and interest on the 'Water Revenue Eonds,1952"as
they respectively become d~e and to accumulate a
total reserve of $19,000.00,all at the .times and
in the manner set,forth in Ordinances Nos.384,,,
395 and J{of:J •
!he gross revenues from said waterworks utility,
and,all additions,extensions and betterments thereto
at any time made,are hereby pledged to such payments
and the "Water Revenue Eonds,1952"constitute a
charge upon such revenues prior and superior to any
other charges Whatever,excluding charges for main-
tenance and operation,except that the Town may issue
additional water revenue bonds or water.and sewer revenue bel
bonds on a parity with said "Water Revenue Eonds,1952"
under the conditions set forth in Section 19 of Ordi-
nanceNo.384.'...
The Town of Marysville shall establish,maintain
and collect such rates and charges for water service
so long as any "Water Revenue Eonds,1952"are out-
6.
"".,
standing as will make a~lable for the payment
or the principal and interest on all of such,
bonds as the,same shall accrueian a1ll9}mt equiva-
lent to at least 1.4 times the averageant'lUal
debt service,both principal and interest,of said bond
issue,after deductingi;he necessary costs of main-
tenance,operation and>taxes from the gross revenues
of its waterworks utility.
This bond is one of a series of $46,000.00 par
value of bonds of a total authorized ,issue of $280,-
000.00 par value,of which $134,000.00 par value
have heretofore been issued"as Series A and $100,-
000.00 par value have heretoforEl been issued"as
Series B,.All bonds of this series,denominated
~eries C.,,,-reof a like date,tenor and effect,ex-
cept as to intereat rates and maturities,are pay-
able from the said "Water Revenue Bond Fund,1952"
of the Town of MarYl;lville"and are :issued by said Town,
under and in pursuance of the laws of the state 9t
Washington and Ordinances No.384,395 and,Jf-t>¥
of the Town of Marysville,for the purpose of providing funds
to pay the cost of carrying out a portion of the system or
plan ,for making certain additions to and be~rments and ex-
tensions of the waterworks utility of the Town.Reference
is made to said ordinances as more fully describing the
covenan~swith and rights of holders of bonds of this
series and issue.
The Town of Marysville reserves the right to redeem
any or all of tl1,eQutstanding bonds of this series,
on,any interest payment date on and after January 1,
1960,at par plus accrued interest,in inverse numerical
order,highest numbers first,by giving at least
thirty days notice of such intenild rEHilemptioIliOY publi-
cation thereof in the offic~lal newspaper oft;he Town,
such notice to be published,once not less than nqr
more than forty-five days prior to the ca,~l date,and
by mailing a copy of said notice of red~ll1~tionto Terry
Thompson,1411 Fourth Avenue Building,Seattle 1,
Washington,at least thirty daYI3 pdori:;o the ca L'l date.
]Interest on any bonds so called for redemption shall
cease on the date fixed for such redemption.
The Town of Marysville hereby binds itself irrevo-
cably not to mortgage,sell,lease or in any manner
encumber or dispose of said municipal wat~rwqrks
utID~IDty now belonging or which may hereafter belong
to it,including any additions,replacements,better-
ments andextenl3ions thereof,until all tl1e bonds
of this se'ries and issue with inteX'est thereon !shall
have been fully paid;and the said Town hereby ceven-
ants andagreel3 to and with the holders of eachefd.
ea,id bonds to maintain in good condition and to operate
said waterworks utility:.and alLadditions,extensions,
replacements and betterments theX'eto,and to maintain
and collect such rates and charges in connection
therewith,as will prOVide sufficient revenues to pro-
duce the gross revenues necessary to meet the obli-
gations of said Town as herein set forth.
It is hereby certified and declared that said bonds
are issued pursuant to and in strict compliance with
7.
~~<>
the Constitution and laws of the State 0.1'Wash ...
ingt?n and the ordinances of the ~own ofM~rYs~
ville,and that all acts,conditiqns and things
required to be dope precedent to and in the is-
suance of this bond have happened,been done and
performed as required by law.
IN WITNESS WHEREOF,tQe Town of Marysville,
Washington,Qas c~used this bond to be signed
py its Mayor and attested by its Clerk,and its
corporate seal to be hereto affix~d,and the in-
terest coupons attached to be signed by the facsimile:'i5.c;na.t1
signatures of said officials this 1st day of January,.
1955.
Attest:
TOWN OF MARYSVILLE,WASHINGTON
BY.",==~....;..__
Town Clerk
The interest coupons attached to said bonds shall be in
SUbstantially the following form:
On (January)(July),,19 ,THE TOWN OF MARYS-
VILLE,WASHINGTON,upon presentatiqnang sUrrengElr of
this ..coupon,Will.paY to bearer,at the office of the
Tdwn Treasurer,the sum of
.-($....".)Dellars,.,i"'n:-"'llr:a,.,.w"'f"'u,...,.l,.."'m:-::o""n:-::er:y".-:o"'li......,t"'h,..,e~.....u·p.i te d $tat:e s of Ameri ca ,
from the special fund of said TOWh.kn0Wn.asthe "Water
Revenue Bond Fund,1952",said sum being'six months'
interest ..then ,due on its "Water Revenue Bond,1952,
Series C",numbered and d.at~d January 1,
:1955..
$,---...,-----'-
GoupOp No.
Mayo:r
TOWN OF MARYSVILLE,WASHINGTON
By ....--......,.-_
Attest:
T0wnCrerk
Section 7.The bonds shall be printed on 11 thographed
forms,shall be signed by the Mayor and attested by the Clerk,
shall have the seal of the Town of Marysville affixed thereto,
and the coupons shall bear the facsimile signatures of the Mayor and
the Clerk.
s ,8.
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>d\>-,1!"
Section 8.me proceeds from the sale of "the "Water
Revenue Bonds,1952,Ser;1;esC"here.in authorized shall be used
for the sole purpose of carrying out the portion of said system
or plan for making ad~itions to and betterments and extensions
of the wterwprks utility of the Town specified above and of pay-
}
ing the costs and expenses connecte4 therewith;and the Town of
Marysville shall,through its proper Officers and agents,proceed
with the making of said improvements as herein set ~oeDh.
Section 9.Terry Thompson of Seattle,Washington,has
submitted an offer to purchase the said ~6,000~Q()par value of
Series C bonds at a price of 1 '7 'Z .:J.S'per each $100.00 prin-
cipal amount of said bonds,together with accrued interest from
the date of issuance to the date of delivery of the bonds to said
purchaser,the purchaser to furnish at his expense the necessary
legal proceedings and the printed bonds ready for execution by the
Town officials and the Town to furnish the unqualified approving
legal opinion of Weter,Roberts &Shefelman,municipal bond counsel
of Seattle,Washington,for which the purchaser shall pay..The
Town Council is of the opinion that no better price couldoeo'b-
tained for said bonds and that it is in the best interests of the
Town that said offer be accepted.The said offer of Terry Thompson
is,therefore,hereby accepted and the propeptTown officers are hereby
directed to issue and deliver said bonds to Terry Thompson in accord-
ance with said offer upon payment therefor as stated.The Town
Treasurer sh~11deposit the principal sums received from the sale
of said bonds in the "Construction Fund"of the Town and the accrued
interest received .in the "Water Reyeriue'Bond Fund,1952".
thereof
1955.
PASSED by
and APPROvEfn:iy'the Mayor
Attest:
;;4J~J p~
Dlel:'k~~own6l'prysviJ:Ie;-wasliington
9.