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HomeMy WebLinkAboutO-0669 - Authorizes issuance of general obligation bonds (Special)CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.661 AN ORDINANCE of the City of Marysville, Nashington,providing for the ..,eal coating of all streets within the City;declaring the estimated cost thereof as near as may be;providing for the is- suance and sale of $100,000.00 par value of "General Obligation Street Bonds,1969,"of the City; specifying the maturities and fixing the form and maximum effective Intere st rate of such bonds; establishing a "General Obligation Street Bond Fund, 1969";and provf diriq for the sale of such bonds. WHEREAS,the existing streets within the City of Marysville are in such condition that it is immediately necessary to seal coat all of such streets,and the City does not have available sufficient funds to meet the total estimated cost thereof;and WHEREAS,the assessed valuation of the taxable property within the City,as ascertained by the last preceding assessment for City purposes, is $6,567,948.00,and at the time of the passage of this ordinance the City has no outstanding bonded general indebtedness,NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON, DO ORDAIN,as follows: Section 1.The City of Marysville,Washington,for strictly municipal purposes shall seal coat all of the streets wi thi n t~e City. The estimated cost of the foregoing,including the cost of the issuance of general obligation bonds herein authorized,is hereby declared to be,as near as may b~,the sum of $100,000.00.The City shall borrow money on the credit of the City and issue negotiable general obligation bonds evidencing such indebtedness.Such general indebtedness to be incurred shall be within the limit of up to 1-1/2%of the value of the taxable property within the City permitted for general municipal purpo ses wrthout c vote of the qualified voters therein. Section 2.The bonds shall be called "General Obligation Street Bonds,1969,"of the City of Marysville,Washington,shall be dated September I,19\39,shall be in denominations of $5,000.00 each,shall be numbered from 1 to 20,inclusive.and shall bear interest at an effective rate not to exceed the maximum rate perr.....tted by law,payable s emi anu ..ally on March 1 and September 1 of each year,as evidenced by coupons attached to the bonds representing interest to maturity with full obligation on the part of the City to pay interest at the bond rate,from and after maturity,until the bonds,both principal and interest,are paid in full.Both principal and interest are to be paid in lawful money of the United States of America at the office of the City Treasurer of Marysville,Washington,and the bonds shall mature serially in order of their numbers as follows: Bond Numbers (Inclusive) 1 to 5 6 to 10 11 to 15 16 to 20 Amounts $25,000 25,000 25,000 25,000 Maturities September I,1971 September I,1972 September I,1973 September I,1974 Section 3.The bonds shall be issued without the right or option of the City to redeem the same prior to their respective maturity dates. Section 1.The City of Marysville hereby irrevocably pledges itself to levy taxes annually,within the constitutional and statutory tax limitations provided by law,upon all property in the City subject to taxation in an amount sufficient to pay the principal of and interest on the bonds as the same shall accrue,and the full faith,credit and resources of the City are hereby irrevocably pledged for the payment of the principal of and interest on such bonds. Section 5.The bonds shall be substantially in the following form: -2- No .....,-_$5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF .MARYSVILLE GENERAL OBLIGATION STREET BOND,1969 --_% KNOW ALL MEN BY Tl-IESE PRESENTS:That the City of Marysville,Washington,is justly indebted to and for value received hereby promises to pay to bearer on the FIRST DAYOF SEPTEMBER,19 ,.the sum of -- FIVE THOUSAND DOLLARS together with interest thereon at the rate of ..,------,-.,.-__-'-------:-:--PERC ENl' '--_---%)per annum,payable semiannually on March 1 and September 1 of each year,interest to maturity being evidenced by and payable upon the presentation and surrender of the attached interest coupons as they severally become due,with full obligation on the part of the City to pay interest at the same rate from and after the maturity date, in the absence of coupons,until this bond with interest is paid in full.The bond is payable,both principal and interest,in lawful money of the United States of America at the office of the City Treasurer of the City of Marysville,Washington. This bond is one of a total issue of $100,000.00 par value of bonds,all of like date,tenor and effect, except as to maturities (and interest rates if more than one interest rate is bid),issued by the City of Marysville for general municipal purposes,to-wit,for the purpose of providing funds to seal coat all of the streets within the City,and issued in full compliance with the ordinances of the City of Marysville and the laws and constitution of the State of Washington.., This bond is issued without the right or option of the City to redeem the same prior to its maturity date. The City of Marysville hereby irrevocably pledges itself to levy taxes annually,within the constitutional and . statutory tax limitations provided by law,upon all property in the City subject to taxation in an amount sufficient to pay the principal of and interest on the bonds of this issue as the same shall accrue,and the full faith, -3- -, credit and resources of the City are hereby irrevocably pledged for the payment of the prin- cipal of and interest on said bonds. It is hereby certified that all acts I coridit.ions and things required to be done precedent to and in the issuance of this bond have been done,have happened and have been performed as required by law,and that the total indebtednes s of the City,including this bond issue,does not exceed any r onstitutional or statutory limitations. IN WITNESS WHEREOF,the City of Marysville, .Washington,has caused this bond to he signed by the facsimile signature of its Mayor and attested by the manual signature of its City Clerk and its corporate seal to be hereto affixed and the interest coupons attached to be signed with the facsimile signatures of those officials this first day of September,1969. CITY OF MARYSVILLE,WASHINGTON Mayor By --;--:--_ ATTEST: City Clerk The form of the interest coupons shall be substantially as follows: Coupon No._ $---- On the 1ST DAY OF (MARCH)(SEPTEMBER),19_, the CITY OF MARYSVILLE,WASHINGTON,upon presentation and surrender ofthis coupon,will pay to the bearer at the office of the City Treasurer the sum shown hereon in lawful money of the United States of America,said sum being the semiannual interest due that date upon its "General Obligation Street Bond 1969,"dated September I,1969,and numbered _ CITY OF MARYSVILLE,WASHINGTON (facsimile signature) Mayor By '>"::':O:..::..::===-~:..=;L==..::.=:....::.L__ ATTEST: (facsimile signature)· City Clerk -4- '.... Section 6,The bonds shall be printed or lithographed on good bond paper and shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk of the City of Marysville, Washington,under the seal of the City and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 7.There is hereby created and established in the office of the City Treasurer a special fund to be known and designated as the "General Oblig ation Street Bond Fund /1969,"of the City.The accrued interest received,if any,shall be paid into the "General Obligation Street Bond Fund,1969,"and the principal proceeds received from the sale of the bonds shall be paid into the of the City of Marysville. All taxes collected for and allocated to the payment of the principal of and interest on the bonds shall hereafter be deposited in the "General Obligation Street Bond Fund,1969." Section 8.The bonds shall be sold for cash at public sale for not less than par,plus accrued interest,upon sealed bids to be received at the office of the City Clerk up to the day and hour stated in the Notice of Bond Sale hereinafter directed to be given. Notice calling for bids to purchase such bonds shall be published once a week for four consecutive weeks in the official newspaper of the City of Marysville and such notice shall also be published once in the Daily Journal of Commerce of Seattle,Washington,at least ten days before the bid opening date.Such notice shall specify that bids for purchase of the bonds sh al l be, r ecefve'd by the/City Clerk of the City of Marysville at tl.e Council Chambers of the City Hall of the City on August 11,1969,up to 8:00 o'clock,p c m, ,(PDST),at which time all bids will be publicly opened for the purchase of the bonds. A copy of the Notice shall,at least three weeks prior to the -5- ..' 'fl-: date fixed for the sale,be mailed to the State Finance Committee I Olympia,Washington.', Bids shall be invited for the purchase of the bonds with fixed maturities in accordance with the schedule specified in Section 2 of this ordinance. The Notice shall specify the maximum effective rate of interest the bonds shall bear,to-wit,8%per annum,and shall require bidders to submit a bid specifying: (a)The lowest rate or rates of interest and premium,if any,above par at which the bidder will purchase the bonds;or '(b)The lowest rate or rates of interest at which the bidder will purchase the bonds at par. For the purpose of evaluating bids only,the coupon rates bid being controlling,each bid shall state the total interest cost over the life of the bonds and the net effective interest rate of such bid. Coupon rates shall be in multiples of 1/8 or 1/10 of 1%,or both. No more than one rate of interest may be fixed for anyone maturity.Only one coupon wi 11 be attached to each bond for each installment of interest thereon,and bids providing for additional or supplemental coupons will be rejected.The maximum differential between the lowest and highest coupon rates named in any bid shall not exceed 2%. The bonds shall be sold to the bidder making the best bid, subject to the right of the City Council of the City of Marysville to reject any and all bids and to .readvertise the bonds for sale in the manner provided by law,and no bid for Ies s than all of the bonds shall be considered. All bids shall be sealed and I except the bid of the State of Washington,if one is received,shall be accompanied by a deposit of $5,000.00.The deposit shall be either cash or by certified or cashier's' check made payable to the City Treasurer of the City'of Marysville,and shall -6- be promptly returned if the bid is not accepted.If the bonds are ready for delivery and the successful bidder shall fail and neglect to complete the purchase of the bonds within forty days following the acceptance of his bid,the amount of his deposit shall be forfeited to the City of Marysville and in that event the City Council may accept the bid of the one making the next best bid.If there be two or more equal bids for the bonds for not less than par plus accrued interest and such bids are the best bids received, the City Council shall determine by lot which bid will be accepted.The bonds will be delivered to the successful bidder at the office of the City Treasurer of the City of Marysville,or in the City of Seattle at the City's expense,or at such other place as the City Treasurer and the successful bidder may mutually agree upon at the purchaser's expense.A no-litigation certificate in the usual form will be included in the closing papers. The City Clerk of the City of Marysville shall be and is hereby authorized and directed to publish Notice for the purchase of the bonds in the manner required by law in accordance with the provisions of this section. Such Notice shall provide that the City of Marysville will cause the bonds to be printed and ·lithographed and signed and will furnish the approving legal· opinion of Messrs.Roberts,Shefelman,Lawrence,Gay &Moch,municipal bond counsel of Seattle,Washington,covering the bonds without cost to the purchasers I s aid opinion also being printed on each bond. PASSED by the City Council of the City of Marysville,Washington I at a regular meeting thereof,and APPROVED by the Mayor this 14th day of July,1969. Mayor ATTEST: City Clerk FORM APPROVED; City Attorney -7-