HomeMy WebLinkAboutO-0873 - Provides for issuance of water and sewer revenue bond (Special):.~.J'jl.",.\\.
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CITY OF MARYSVILLE,WASHINGTON
ORDINANCE NO.II ZJ
AN ORDINANCE of the City of Marysville,Washington,
providing for the issuance of $1,120,000.00 par value
of "Water and Sewer Revenue Bonds,1975,"for the
purpose of obtaining funds to pay the cost of carrying
out the system or plan of additions to and betterments
and extensions of the waterworks utility of the City,
including the sewerage system as a part thereof,as
specified and adopted in Ordinance No.820,as amended
by Ordinances Nos.824 and 833,and applicable to
Utility Local Improvement Districts Nos.1,2 and 3,
and the system or plan of additions to and betterments
and extensions of the waterworks utility of the City,
including the sewerage system as a part thereof,as
specified and adopted in Ordinance No.843,and
applicable to Utility Local Improvement District No.4;
fixing the''date,'denomination,interest rates,form,
terms and covenants of such bonds;and providing for
the sale.and delivery of such bonds to Terry Thompson &
Co.of Seattle.,Washington.
WHEREAS,the City of Marysville,by Ordinance No.384,
passed the 14th day of JUly,19.52,specified and adopted a system
or plan of additions to and betterments and extensions of the
waterworks utili.ty of the Ci.ty·,.and authori.zed the issuance and
sale of not to exceed $280,000.00 par value of "Water Revenue
Bonds,1952,"of which $134,000.00 par value thereof were heretofore
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issued as "Series A,"$100,000.00 par value thereof as "Series B,"
and $46,000.00 par value thereof as "Series C,"and all of said
Series A and Series C Bonds have now matured and been paid;and
WHEREAS,by Section 19 of said Ordinance No.384,the
City of Marysville reserved the right to issue additional water
revenue bonds or water and sewer revenue bonds in the event that
the City should thereafter provide by ordinance for the construction
of a system of sewerage or additions,extensions and betterments to
an existing system and provide that the system of sewerage,
including all additions,extensions and betterments thereto,shall
become a part of the waterworks utility of the City,which bonds
shall constitute a charge and lien upon the revenues of the waterworks
utility of the City,including the sewerage system if the same
is made a part of the waterworks.utili.ty of the City,on a parity
with t.fie said "Water Revenue Bonds.,19.52";provided,certain
conditions shall be.met and complied with at the time.of the issuance
of such addi-tional bond s.r and
WHEREAS,the City of Marysville,by Ordinance.No.385,
passed September 2,19.52 ,combined the'sewerage system of the.City
with all additions and improvements.thereto with the waterworks
utility of the City,.and the sewerage system at all times since
has'been considered a part of and Belonging to the waterworks utility
of theCi.ty,and thew.ords~'!Waterw:orks,Utility of the City"shall
hereinafter mean the comJ5ined sewerage system and water system of
t.he:·Ci.ty".together with all addi.tions thereto and betterments and
extensi.ons thereof hereafter made;and
WHEREAS',the City of Marysville subsequently issued and sold
and there are I?resently outstanding bonds of the following issues in
addi tion to the "Water Revenue Bonds,1952,Series BII :
II Water and Sewer Revenue Bonds,1955 11
"Water and Sewer Revenue Bonds,195911
"Water and Sewer Revenue Bonds,1963 11
"Water and Sewer Revenue Bonds,1965 11
"Water and Sewer Revenue Bonds"1967"
II Water and Sewer Revenue Bonds,19.69.11
II Water and Sewer Revenue Bonds,1969,Issue No.2"
all of which bonds having been issued on a parity of lien with the
outstanding "Water Revenue Bonds,1952,Series B,"and with each other;
and
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WHEREAS,Ordinance No.820,passed by the City Council and
approved by the Mayor on August 12,1974,as amended by Ordinance No.
824,passed by the City Council and approved by the Mayor on August 26,
1974,as further amended by Ordinance No.833,passed by the City
Council and approved by the Mayor on January 27 i 1 975 .,specified
and adopted a system or plan of additions to and betterments and
extensions of the Waterworks Utility of the City,converted Local
Improvement District No. 56 to Utility Local Improvement District No.1,
Local Improvement District No. 57 to Utility Local Improvement
District No. 2 and Local Improvement District No. 58 to Utility Local
Improvement District No.3,and authorized the issuance and sale of
water and sewer revenue bonds in the principal sum of approximately
$9.23,60.0.00.to provide the funds necessary to carry out such.system
or plan~and
WHEREAS,Ordinance.No.843,'passed by the City Council and
approved by'the Mayor on February 10.,19.75,specified and adopted
a system or plan of addi.tions.to and betterments and extensions of the
Waterworks utility of the Ci.ty,consolidated Local Improvement District
No.~9-and Local Improvement District No.60 and converted such
consolidated districts to utili.ty Local Improvement District No.4,
and authorized the issuance and sale of water and sewer revenue bonds
in tlie principal sum of approximately $93,000.00 to provide the funds
necessary to carry out such system or plan,such bonds to be combined
with the water and sewer revenue bonds authorized to be issued by
Ordinance No.820,.as amended by Ordinances Nos.824 and 833;and
WHEREAS,by Ordinance No.861,passed by the City Council
and approved by the Mayor on July 14,1975,the assessment roll in
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Utility Local Improvement District No. 1 was confirmed in the total
amount of $264,914.59,by Ordinance No.862,passed by the City
Council and approved by the Mayor on July 14,1975,the assessment
roll in Utility Local Improvement District No. 2 was confirmed in
the total amount of $184,113.04,by Ordinance No.863,passed by the
City Council and approved by the Mayor on July 14,1975,the assessment
roll in Utility Local Improvement District No. 3 was confirmed in
the total amount of $534,955.38,and by Ordinance No.864,passed by
the City Council and approved by the Mayor on July 14,1975,the
assessment roll in Utility Local Imp~ovement District No. 4 was
confirmed in the total amount of $9.7,9c78.78,and the City Council
has now determined that $1,1.20.,0.0.0.•.0.0.par value of water and sewer
revenue,bonds'of the City should lSe.fssued to obtain the funds with
which to pay the cost of carrying out such systems or plans of
additions to and betterments.and extensions of the Waterworks Utility
of the City'as specified and adopted in Ordinance No.820,as amended,
and in Ordinance No.843;NOW-,THEREFORE,
THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,DO
ORDAIN,as follows:
Section 1.As used in this ordinance,the following words
shall have the following meanings:
(a)"Bonds"shall mean the "Water and Sewer Revenue Bonds,
1975,"the issuance of which is provided by this ordinance and which
are designated as "Water and Sewer Revenue Bonds,1974,"in Ordinance
No.820,as amended.
(bl "Bond Fund"shall mean the "Water and Sewer Revenue
Bond Fund,1975,"created by Ordinance No.820,as amended,in the
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office of the City Treasurer and designated in said ordinance as
"Water and Sewer Revenue Bond Fund,1974,"and changed to "Water and
Sewer Revenue Bond Fund,1975,"by Ordinance No.843.
(c)"City"shall mean the City of Marysville,Washington.
(d)."Future Parity Bonds"shall mean any and all water and
sewer revenue Bonds,of the City issued after the date of the issuance
of the Bonds"tliepaymerit of the.principal of and interest on which
constitutes'a charge and lien on the Revenue of the Waterworks Utility
of tfie'City'and U.L.r.D.Assessments.equal in rank with the charge
and lien upon such revenue and assessments required to be paid into
the Bond Fund to pay and s'ecuze the.payment of the principal of and
interes.t on the.Bonds.•
leL "Operating and Maintenance.Expenses"shall mean all
reasonable expenses incurred By the City in causing the Waterworks
Utility of the City to be operated and maintained in good repair,
working order and condition,but shall not include any depreciation
or taxes levied or imposed oy the.Ci~y.
(f ),"'Prior Li.en aonda"shall mean the out s.t.and Lnq "Water
Revenue Bonds,1952,Series B,""Water and Sewer Revenue Bonds,1955,"
"Water and Sewer Revenue Bonds,19.59,""Water and Sewer Revenue Bonds,
1963,""Water and Sewer Revenue Bonds:,.19.65, "."Water and Sewer Revenue
B.onds,19.67,""Water and Sewer Revenue.Bonds,1969,":"Water and Sewer
Revenue Bonds,1969,Issue.No.2,"and any additional water and sewer
revenue.Bonds'hereafter issued on a parity of lien with said outstanding
bonds:in accordance with the pz'ov Esi on s of Section 19 of Ordinance
No.38·4.
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Cgt "Revenue of the Waterworks Utility of the Cityll shall
mean all the earnings and revenue received by the Waterworks Utility
of the City from any source whatsoever,except general'ad val'orem
taxes,U.L.I'.D.Assessments,proceeds.from the sale of City property,
and bond proceeds.
(h),"Term Bond Maturity Year ll shall mean any calendar year
in which the.bonds of anyone issue or series now or hereafter scheduled
to mature (regardless of any reservati.on of prior redemption rights)
is more tlian 1.25 times the.average annual principal maturity of the
bonds of such issue or ser Les for the three maturity years immediately
preceding such year.
CiL IITerm Bonds:"shall mean those outstanding bonds of
any single issue or series scheduled to mature in any Term Bond Maturity
Year.
(jL "U.L.I.D."shall mean utili.ty local improvement district.
CkL "u .L.I.D.Assessments'"shall mean the assessments
levi.ed in such_utility local improvement districts of the City as
may have.here.tofore.been created and as may hereafter be created under
state,law whrch may authorize the creation of the same and shall include
installments thereof and interest and any penalties thereon.
(It IIWaterworks Utility of the City"shall mean the
waterworks utility of the City,including the sewerage system as a
part thereof,and all additions,thereto and betterments and extensions
thereo~at any time.made •
<,Sect'i'on"2.For the purpose of providing the funds with
which.to carry out the system or plan of additions to and betterments
and extensions of the:Waterworks'Utility of the City as specified and
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adopted in Ordinance No.820,as amended by Ordinances Nos.824 and
833,and applicable to U.L.I.D.Nos.1,2 and 3 heretofore created
and the system or plan of additions to and betterments and extensions
of the Waterworks utility of the City as specified and adopted in
Ordinance.No.843 and applicaBle to U.L.I.D.No.4 heretofore created,
there.shall be.issued and sold $1,120.,000.•0.0.par value of the Bonds
(by this'o rdi'nance des'ignated and defined as the "Water and Sewer
Revenue.Bonds,19_75"to The Bonds shall be dated S'eptember 1,19.75;
shall.bear interest at the.rates:hereinafter set forth,payable on
July 1,19.76,.and s.emiannually thereafter on January 1 and July 1 of
each year,interest to maturi.ty to be.evidenced by coupons to be
attached to the Bonds with.~ull obligation on the part of the City to
pay interest at the.bond rate from and after the maturity dates until
the.B.onds· wi.th_in.terest are,paid in full;and shall Be in denominations
of $5,00.0.00 each.Both principal of and interest on the Bonds shall
be payable in lawful money of the.Uni.ted States of America at the
office.of the City Treasurer of the City.The Bonds shall be payable
solely from the Bond Fund.The Bonds.shall be a valid claim of the
holder thereo~only as against the.Bond Fund and the fixed amount of
the Revenue of the Waterworks'Utility of the City and U.L.I.D.Assess-
ments (including assessments in U.L.I.D.Nos.1,2,3 and 4 heretofore
createdl pledged to such fund,and shall not be a general obligation
of the City.The Bonds shall be numbered,shall bear interest and
shall mature in accordance with the following schedule:
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.Bond Numbers Interest
(Inclusive)Amounts Rates Maturities
1 to 6 30,000 7.50%January 1,1977
7 to 12 30,000 7.50%January 1,1978
13 to 19 35,000 7.50%January 1,1979
20 to 27 40,000 7.50%January 1,1980
28 to 35 40,000 7.50%January 1,1981
36 to 44 45,000 7.75%January 1,1982
45 to 54 50,00.0 7.75%January 1,1983
55 to 64 50,00.0 7.75%January 1,1984
65 to 74 50.,000.7.75%January 1,1985
75 to 84 50.,000.8.00.%January 1,1986
85 to 9.4 50,000 8.00%January 1,1987
9.5 to 10.4 50,00.0 8.00.%January 1,1988
lOS.to 114 50.,0,0.0.8.00.%January 1,1989
115 to 124 50..,000..8.0.0.%January 1,1990
125 to 134 50,0,00..8.00.%January 1,1991
135 to 144 50., 000.8.0.0%January 1,1992
145 to 154 50., 00.0 8.00.%January 1,1993
155 to 16.'4 50., 000..'8.00..%January 1,1994
165 to 174 50,00.0.8.00.%January 1,1995
175 to 224 250.,00.0.8.0.0%January 1,1996
.S'ect'i'on"3.Bonds numbered 1 to 74,inclusive,maturing on
January 1,19.77,to January 1,1985,inclusive,.shall be issued without
the.right or option of the CitV to redeem the same prior to their
stated maturity dates.
The City reserves the right and option to redeem Term Bonds
numbered 175 to 224,.Lnc Lus.Lve ,maturing on January 1,19.96,at par
plus accrued interes,t to the date fixed for such redemption,in
accordance wi.th the EoLl.ow.i.nq schedule.:
Bond Numbers
'.'CIn'C'lU's'ive')~Amounts Ca'Ll,Da'be s
220 to :L24 $25,0,00.January 1,1977
215 to 219-25 ,·O~O.O ..January 1,1978
210.to 214 25,00.0.January 1,19.79
20.5 to 209.25,000.January 1,1980.
20.0 to 204 25,,0,0.0.January 1,19.81
195 to 1990-25,0;0.0 ..January 1,19.82
190.to 19:4 25,0,0.0...January 1,19-83
185 to 189.25,.0.0.0."January 1,1984
180 to 184 25,0:00.Januar~1,1985
175 to 179.:.25,0,00.J'anuary 1,1986
The City reserves the.'right to redeem Bonds numbered 75
to 174,.inc1usiye.,maturing January 1,1986,to January 1,1995,
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inclusive,prior to their stated maturity dates as a whole,or in
part in inverse numerical order,on January 1,1986,or on any
semiannual interest payment date thereafter at par plus accrued
interest to the date fixed for such redemption;provided,that all
Term Bonds shall have first been paid and redeemed.
Notice of any call for the redemption of any of the Bonds
prior to their respective maturity dates shall be published once in
the.official newspaper of the.City not less than 30 nor more than 45
days prior to the interest coupon due date on which the Bonds would
be redeemed.Notice.of such call for redemption shall also be mailed
to Terry Thompson &Co.at its principal place of business in Seattle,
Washington,.or its successor,not les.s than 30.nor more than 45 days
prior to the'interest coupon due.date upon which the Bonds would be
redeemed.In addition,such.redemption notices shall also be mailed
to Moody's.Investors.Service.,Inc.,and Standard &Poor's Corporation
at their offices in New York,New.York,but,such.notices shall not
be a condition precedent to any s~ch redemption.Interest on any
Bonds so called for redemption shall cease·on such.interest coupon
due date.upon payment of the call price into the Bond Fund.
The City further reserves the right to purchase any or all
of tlieBonds in the open mar'ke.t;at any'time at a price not in excess
of par plus accrued interes.t to the date of such purchase.
'Se~tion'4.The.Bond Fund has'heretofore been created
hy Section 9 of Ordinance No. 820.,as amended,.Ln the office of
the.City Treasurer.The.Bond Fund is hereby divided into a "Pz Lnc i.pa L
and Interes.t Account"and a ·;·Reserve.Account.II So long as Bonds are
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outstanding against the Bond Fund,the Treasurer of the City shall
set aside and pay into the Bond Fund all U.L.I.D.Assessments paid
in U.L.I.D.Nos.1,2,3 and 4 and out of the Revenue of the
waterworks Utility of the City a fixed amount without regard to any
fixed proportion,namely:
(al Into the Principal and Interest Account,at
least 20.days prior to each,interest payment date
and each principal payment date,an amount,together
with U.L.I'.D.Assessments paid into the Bond Fund,
sufficient to pay the interest payable on the Bonds
on such interest payment date and the principal
amount maturing on each maturity date of the Bonds.
(bl Into the Reserve Account all U.L.I.D.
Assessments now and hereafter collected on the
assessment rolls of U.L.I.D.Nos.1,2,3 and 4 in
excess of the amounts required by subparagraph Cat
hereof to Be.paia into the principal and'Interest
Account until a total reserve,equal to the average
annual debt service requirements for the Bonds,
including the interest But excluding the principal
payable'in the Term Bond Maturity Year,shall be
accumulated therein by no later than September 1,
19.80..In the event that such assessment collections
are·inadequate to accumulate such reserve by
September 1,19.80.,any'deficiency shall be made up
from the Revenue of the.Waterw.orks Utility of the
City.
The.City further agrees that when the total required reserve
has Been paid into the Reserve Account,it will at all times,except
for withdrawals therefrom as authorized herein,maintain such amount
therein until there is a sufficient amount in the Principal and
Interest Account and Reserve Account to pay the principal of and
interest to maturity on all the outstanding Bonds.When the total
amount in the Bond Fund shall equal the total amount of principal and
interest requirements of all outstanding Bonds to the last maturity
thereof,no further payments need be made into the Bond Fund.
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The Reserve Account shall be used for the sole purpose of
making up any deficiency existing in the Principal and Interest
Account to meet maturing installments of either principal or interest,
as.thecase may be,of any or all outstanding Bonds.Any deficiency
created in the Reserve Account 'by reason of any such withdrawal
therefrom shall be made up from the Revenue of the Waterworks Utility
of the City and/or U.L.I.D.Assessments payable into the Bond Fund
first available after making neces.sary provisions for the required
paYments.into the principal and Interest Account.Moneys in the
Reserve Account may also be used to pay the last maturing outstanding
Bonds:.
All money in the Reserve.Account,above.provided for,may be
kept on depo s.Lt;in the:'o~~icial bank deposLco ry of the Ci.ty or in any
national Bank.or may'be invested and reinvested in United States
Government obligations redeemable at a ~ixed price and maturing no
later than one.month.'prior to the final maturity date of the last
outstandi'ng Bonds.Interes't earned on any sucb.dnves.crnent;or on such
bank-deposit shall become a part of the Revenue of the Waterworks
ut£lity of the City and need not be deposited in the Bond Fund.
If the City shall fail to se.t aside and pay into the Bond
Fund tne amounts which it has:obligated itself by this section to set
asi'de.and pay therein,the.holder of any Bond may bring suit against
the City'to compel it to do so ,
The,City Council and corporate authorities of the City hereby
declare that in fixing the amounts to be paid into the Bond Fund they
have considered and had due regard for Operating and Maintenance
Expenses of the Waterworks utility of the City and have not set aside
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into the Bond Fund a greater amount or proportion of the Revenue of
the Waterworks utility of the City than in their judgment will be
available over and above the Operating and Maintenance Expenses of
the Waterworks Utility of the City and the debt service and reserve
requirements for the presently outstanding Prior Lien Bonds.
X Section 5.All U.L.I.D.Assessments in U.L.I.D.Nos.1,
2,3 and 4 and all Revenue of the Waterworks Utility of the City are
hereby pledged to the payments required to be made into the Bond Fund,
and the Bonds shall constitute a charge and lien upon such assessments
and revenue prior and superior to all other charges and liens
whatsoever,excluding Operating and Maintenance Expenses of such
utility payable out of such revenue,except that the.charge and lien
upon such,revenue for the'Bonds shall be junior to the charge and
lien upon such revenue for the outstanding Prior Lien Bonds and shall
be on a parity with the charge and lien upon such revenue for any
Future Parity sonds,
~S·e·ct·i·Oh....6.The.City hereby covenants,with.the owner and
holder of each.of the Bonds as follows:
tal That all surplus revenue derived from the
operation of the Waterw.orks:Utility of theCi.ty
after payment of Operating and Maintenance Expenses,
payment of principal of and'interest on the,
outstanding Prior Lien Bonds,the Bonds and any
Future Parity Bonds'hereafter issued and required
payments into the respective bond redemption funds
and reserve accounts therefor shall only be used
for the following purposes:
(11 For purchasing necessary equipment,
making necessary repairs.or replacements to the
Waterworks Utility of the City,.and for other
necessary capital improvements,thereto.
(~r For constructing and installing additions
and improvements to and extensions of such utility
that are economically sound.
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(3}For redemption of outstanding bonds prior
to their fixed maturities or purchasing the same in
the open market for retirement only.
(bl That it will at all times maintain and keep
the Waterworks Utility of the City and all additions
and improvements thereto in good repai~,working order
and condition,and will at all times operate such
utility and the business in connection therewith in
an efficient manner and at a reasonable cost.
Ccl That it will not in any manner encumber the
Waterworks utility of the City and will not sell or
otherwise dispose of the same unles.s provision is
made.for payment into the Bond Fund of a sum suffi.cient
to pay the principal and interest on all of the Bonds
then outstanding and in accordance with the terms
thereof..
Gil.That it will,within a period of sixty days
following the close of each fiscal year,such fiscal
year to end December 31 of each year,cause an audit
of the books and accounts.of the operation o~its
Waterworks..utility of the Ci.ty to be made by the state
Auditor or,if such an audit cannot be made by the
State Audi:tor,.By an independent f i.rrn of certified
public accountants,.which.'aud Lt;will show the income
and expenditures.of the utility ,the balance sheet as
of the end of such·fiscal year,comments in regard to
the.manner in whi.ch.the City has carried out the
requirements of this ordinance,list of insurance
policies in force.,the number of water customers ,the
number of sewer cus.tomers.,the number of metered
water customers',.the number of gallons,of water
registered through master meter,the number of gallons
of water registered through.customers I meters and the.
number of estimated unmetered gallons of water used.
(el That it will not grant any franchise to any
person,firm,association or corporation permitting
the.operation of any competing water or sewage disposal
systems.
(:it That it will obtain and carry flood,earthquake.,
and disaster insurance,if the same·is available,upon
'all the properties oi such.utility in an amount equal
to the full insurable value thereof and will further
obtain and carry such other insurance such as,but not
limited to,fire,theft and public liability insurance
on said properties.as may be available and as would
normally be carried and required by sound business
practice.
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(g).That it will not create any special fund or
funds for the payment of other revenue bonds,warrants
or obligations,or authorize or issue any other
revenue bonds,warrants or obligations which will
rank on a parity with or have any priority over the
payments into or the money in the Bond Fund,except
that it hereby reserves the right for:
(1)The purpose of acquiring,constructing
and installing additions and improvements to and
extensions and betterments of,acquiring necessary
equipment fur or making necessary replacements of
equipment or capital improvements to the Waterworks
utility of the City;or
(2I The purpose of exchanging or purchasing
and retiring prior to or at their maturity any ,
outstanding water and sewer revenue bonds of the
City;,
to issue additional Prior Lien Bonds in accordance
with the provisions of Section 19.of Ordinance No.
384 ,and/or to i'ssue additi.onal and/or refunding
water and sewer revenue bonds.therein defined as
"J;uture Parity Bonds"}...and to make payments into the
Bond Fund for 'the payment of such Future Parity Bonds
from the Revenue of the Waterworks,Utility of the City,
together with U.L.I.D.Assessments collected in any
U.L.I:.D.hereafter created in connection with the
issuance.of such Future Parity Bonds sufficient to
pay the principal of and interest on such Future Parity
B0nds,.which such payments may rank.equally out of
such.Revenue of tha Waterworks Utility of the City and
U.L'.L.D.As.sessmentscollected in U.L.I.D.Nos.1,2,
3 and 4 if the City complies with the following
conditions:'
(It All payments required by any ordinance of
the City pertaining to outstanding water and sewer
revenue bonds of the City shall have been made into
the respective bond redemption funds for the payment
oi such water and sewer revenue bonds and no deficiency-
exists therein;
(2t One or more U.L.I.D.s shall be created in
connection with the issuance of such Future parity
Bonds for the purpose of aaae.ss i.nq not less than 95%
of the total amount of such Future Parity Bonds t~be
so issued,and the ordinance providing for the issuance
of such Future Parity Bonds shall provide that all of
such U.L.I.D.Assessments shall be paid directly into
the Bond Fund.
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Nothing contained in this ordinance shall
prevent the City from issuing revenue bonds or
warrants which are a charge upon the Revenue of
the Waterworks Utility of the City junior or inferior
to the payments required to be made therefrom into
the Bond Fund and the Reserve Account therein or
from pledging the payment of U.L.I.D.Assessments
into the bond redemption fund created for the pay-
ment of the principal of and interest on such
junior lien bonds'as:long as such U.L.I.D.Assess-
ments:are levied for improvements constructed from
the proceeds of such junior lien bonds.
Nothing herein contained shall prevent the
Ci ty from refunding all or part of the'Bonds in
accordance witfi the provisions of the Refunding
~ond Act of the State of Washington (RCW Chapter
39.531 as.thes·ame.may be amended,and it is hereby
expressly provided that any SUCh.refunding bonds so
issued shall have.the same.lien upon the Revenue of
tlie Waterworks.Utility of the City and U.L.I.D.
Assessments as the Bonds be.ing refunded.
(Ill.That i.t will make no use of the proceeds of
the Bonds.or other funds,of the City at any time
during the term of the Bonds which.,if such use had
been reasonably expected at the date that the Bonds
are Tssued ,w.ould have.caused such.Bonds to be
aroitrage.bonds:within the meaning of Section 103 (d),
of tlie United States'Internal Revenue Code of 1954,
and for this-purpose.it further covenants that none
of the proceeds of the Bonds'or the investment of
such proceeds will be used to acquire 'obligations
the.adjusted yield on which.will exceed the adjusted
yield produced by the Bonds,both such adjusted yields
being computed pursuant and subject to the'requirements
and'exceptions of Sections.1.lQ3~l3 and 1.103~14 of
the regUlations of the United States Treasury Department
puBlished in the Federal Register on May 3,1973
[except for refunding bonds'which is still covered
by the June.1,19.72,proposed regulations).,as the
same may be changed from time to time,or any other
applica151e re'gulations hereafter adopted.
S'ect'ion"7.In the event the City shall issue advance
refunding bonds pursuant to the laws of the State of Washington to
pay the principal of and interest on the Bonds or such portion
thereof included in the refunding plan as the same become due and
payable.and to refund all SUCh.then outstanding Bonds and to pay
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the.costs of'refunding,and shall have irrevocably set aside for and
pledged to such.payment and refunding,moneys and/or direct obligations
of the United States of America or other legal investments sufficient
in amount,together with known earned income from the investment
thereof,to make such payments and to accomplish the refunding as
scheduled,.and shall irrevocably make provisions for redemption of
such.Bonds,then in that case all right and interest of the owners
or holders of the Bonds to be so retired or refunded and the
appurtenant coupons in the.covenants,of this ordinance and in the
Revenue.of the Waterworks Utility of the City,U.L.I.D.Assessments,
funds.and accounts obligated to the payment of such Bonds,,except the
right to receive.the.funds'so set aside and pledged,shall thereupon
cease and become void and the City.max then a~ply any moneys in any
fund or account established :t;or the payment or redemption of such
Bonds or coupons'to any lawful purposes as.it shall determine.
-S'e'ct'ion'8.The Bonds shall be in SUbstantially the
following form:
$5,0.0.0.•0.0
UNITED STATES.OF AMERICA
STATE.OF WASHINGTON
CITY OF MARYSVILLE.
WATER AND SEWER REVENUE BOND,19.75
KNOW ALL MEN BY THESE PRESENTS:That the Ci.ty of
Marysville,Washington (hereinafter called theICi.ty"),
for value received hereby promises to pay to the bearer
on the FIRST DAY OF JANUARY,19:_,the principal sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of-'..'.%
per annum,payab Le on JUly I,.19.76,and serriiannually
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thereafter on January 1 and July 1 of each year,upon
the presentation and surrender of the attached interest
coupons as they severally mature up to the bond
maturity date and with full obligation on the part of
the City to pay interest at the same rate,from and
after the Bond maturity date,until this bond with
interest is paid in full.Both principal of and
interest on this bond are payable in lawful money of
the.United States of America at the office of the
Treasurer of the City solely out of the special fund
created by Ordinance No.820,as amended by Ordinances
Nos.824 and 833,and known as the "Water and Sewer
Revenue Bond Fund,19:75"(hereinafter called the "Bond
Fund">:,into which fund the City hereby irrevocably
binds itself to pay all special assessments,install-
ments thereof and interes,t and penal ties thereon paid
in Utility Local Improvement Districts Nos.1,2,3
and 4 of the City neretofore created and certain
fixed amounts out of the gross revenues of the water-
works utility of the City,including the system of
sewerage as a part thereof,now belonging to or which
may hereafter belong to the.City,includi'ng all
addi.tions,replacements:,extensions and betterments
now or at any time herea~ter made.or constructed,
w£thout regard to any ~ixed proportion,namely,amounts,
together with_such,.as$.essments,.sufficient to'pay the
principal of and interest on this issue of bonds as
they respectively become.due,and to create a reserve,
all at the times·:and in the manner set forth in
Ordinance No."'"•The bonds of this issue are not
a general obligation of the City.
This bond is one of a total issue of $1,120.,.000.•0.0,
par value of iJonds.,.all of like date,.tenor and effect,
except as to in:teres,t rates,matiur Lt.Le s and option of
redemption,·.all payable.from the said Bond Fund,and
all issued by the City under and pursuant to the laws
Of the State of Washington and Ordinances Nos.820,as
amended,843 and'.,..of the City for the purpose of
obtaining the funds with which to pay the cost of carry-
ing out systems or plans for making additions to and
betterments and extensions of the waterworks utility of
the City,including the system of sewerage as a part
thereof,'.as'specified and adopted in Ordinances Nos.
820,.as amended,and 843 and applicable to Utility Local
Improvement Districts Nos.1,2,3 and 4.Reference is
made 'to Ordinance No.'""as more fully describing
the covenants with.and rights of holders of this issue.
Bonds numbered 1 to 74,inclusive,maturing on
January 1,1977,to January 1,1985,inclusive,are
issued wi.thout the right or option of the City to redeem
the-same prior to their s.tat.ed maturity dates.
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The City reserves the right and option to redeem
bonds numbered 175 to 224,inclusive,maturing on
January 1,1996,at par plus accrued interest to the
date fixed for such redemption,in accordance with
tlie following schedule:
Bond Numbers
,'CInclus'ivel Amounts carr Da·tes
220.to 224 $25,000 January 1,1977
215 to 219 25,00.0.January 1,1978
210.to 214 25,00.0.January 1,1979
205 to 209.25,0.0.0 January 1,1980'
20.0,to 20.4 25,0:0.0.January 1,1981
19.5 to 19.9:25,0,0.0.January 1,1982
19.0.to 194 25,000.January 1,1983
185 to 189:25,0.00.January 1,1984
180:to 184 25,000.January 1,1985
175 to 179.25,0:00 January 1,1986
The City reserves.the right to redeem bonds numbered
75 to 174,inclusive,maturing January 1,1986,to
January 1,19.9.5,inclus.ive,prior to their stated
maturi.ty dates as. a whoLe.,.or in part in inverse
numezLca I order,on January 1,1986,or on any semi-
annual interest payment date.thereafter at par plus
accrued interest to the date fixed for such redemption;
provided,that all bonds.numbered 175 to 224,inclusive,
slia1l have first neen paid and redeemed.
Notice of any call for the redemption of any of the
bonds prior to their respective maturity dates shall
be published once.i,n the o~:t;icial newspaper of the
City not les.s.than 30 nor more than 45 days prior to
the Tnteres.t coupon.due.date on which the bonds would
be redeemed.Notice of such call for redemption shall
also be mailed to Terry Thompson &Co.at its principal
place.of business in Seattle,Washington,or its
successor,not less than 30.nor more than 45 days prior
to the interest coupon due date upon which the bonds
would be redeemed.In addi.tion,such redemption notices
shall also be mailed to Moody's Investors Service,Inc.,
and Standard &Poor I·S Corporation at their offices in
New York,New York,but such notices shall not be a
condition precedent to any such redemption.Interest
on any bonds so called for redemption shall cease on
such.interest coupon due date upon payment of the call
price into the Bond Fund.
The City further reserves the right to purchase any
or all of the.bonds in the open market at any time at
a price not in excesa of par plus accrued interest to
the date of such purchase.
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All special assessments,installments thereof and
interest and penalties thereon paid in Utility Local
Improvement Districts Nos.1,2,3 and 4 of the City
heretofore created and the gross revenues of the
waterworks utility of the City,including the system
of sewerage as a part thereof,together with all
additions thereto and oetterments and extensions
thereof at any time made.,are hereby pledged for the
paYment of the bonds of this issue at any time out-
standing,both principal and interest,and such
paYment and pledge shall constitute a charge or lien
upon such.assessments and gross revenues prior and
superior to all other charges or liens whatsoever,
excluding charges for maintenance and operation of
such.utili.ty payable out of such revenues,except
that the.charge or lien upon such gross revenues for
the.bonds of this,issue.shall be junior to the charge
or lien upon the same for the outstanding "Water
Revenue Bonds,19.52,Series B,lI "Water and Sewer
Revenue.Bonds,19.55,""Water and Sewer Revenue Bonds,
1959 ,""Water and Sewer Revenue Bonds,19.63,""Water
and Sew.er Revenue Bonds,1965,"lIWater and Sewer
Revenue.aonds.,19.6:7,"lIWater and Sewer Revenue Bonds,
19.6.9,"."Water and Sewer Revenue Bonds,1969.,Issue No.
2,"and'any addi.tional water and sewer revenue bonds
wh£c~may be 'hereafter issued on a parity of lien with
said outstanding bonds.in accordance with the provisions
of Section 19.o~Ordinance No. 384 and except further
that the charge or lien upon such.gross revenues and
utility local improvement district assessments for the
Donds of this issue shall be on a parity with the charge
or lien upon the.same.for any additional water and sewer
revenue bonds hereafter is,sued on a parity therewith
in.accordance with.the.provisions of paragraph.Cgt of
Section 6.of Ordinance No.'.............
The City'hereby covenants and agrees with the holder
of this bond that it will keep and.pe....rform all covenants
of this bond and of Ordinance.No.'.','to be by it kept
and performed,and i·t further covenants and agrees to
maintain in.good condition and to operate said waterworks
utility,.Lnc LudLnq the 'system of sewerage as a part
t.hez eof ,and to e.s.tablLsli,maintain and collect such
rates and charges in connection therew.ith.as will
produce the gross'revenues.necessary to meet the obliga-
tions of the.City.as'.nerefn set forth and as.set forth
in Ordinance.No .......'"•
It is.hereby'certi~ied and declared that the bonds of
this issue are Ls.sued pursuant to and in strict compli-
ance with..the.Cons.titution and the laws of the State of
Washington and the.ordinances.of the Ci.ty,.and that all
acts,conditions and things.req:uired to be done precedent
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to and in the issuance of this bond have happened,
been done and been performed as required by law.
IN WITNESS WHEREOF,the City has caused this bond
to be signed by the facsimile signature of its Mayor
and attested by the manual signature of its Clerk
and its corporate seal to be hereto affixed,and the
interest coupons attached to be signed with the
facsimile signatures of said officials this first
day of September,1975.
CITY OF MARYSVILLE,WASHINGTON
By 'Cfacsimil"e'signatur-e1'
Mayor
ATTEST:
............__....--->........:----:----....,'<,"'-,~.:---.".,>:---......,
city Clerk
The,interest coupons attached to the Bonds shall be,in
substantially the following form:
Coupon No.~~-"
'$'------
On the FIRS,T DAY,OF (JANUARY}(JULY>-,,1'9:',the
CITY OF MARYSVILLE f WASHINGTON,upon presentation
and surrender of this'coupon,will pay to bearer at
the office o~the.City Treasurer the sum shown
hereon in lawful money o~the.United States of
America from the:special"fund of the City known as
the "Water 'and Sewer Revenue Bond Fund,1975,"said
sum being the interes.t then due on its "Water and
Sewer Revenue Bond,19:75,"dated September 1,19,75,
and numbered~"'.•
CITY OF MARYSVILLE.,WASHINGTON
By'------Cf'ac's'im:iTe''s'i'gn'a'tu'r'e'L "''
Mayor
ATTEST:
~,'-Cf'ac's'imi'le"'signature)''
City Clerk.
The Bonds shall be printed on lithographed fornis;shall be
signed by the facsimile signature of the,Mayor and attested by the
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\....
manual signature of the City Clerk,and shall have the seal of the
City affixed thereto,and the interest coupons shall bear the
facsimile signatures of the Mayor and the City Clerk.
s'e'ction'9..Terry Thompson &Co.of Seattle,Washington,
has offered to purchase the Bonds'at a price of $97.0.0.per each
$100.•no par value thereof,plus accrued interes.t from the date of
issuance to the.date of delivery of the.Bonds.,the City to furnish
the printed Bonds and the unqualified approving legal opinion of
Messrs.Roberts:,Shefelman,Lawrence.,.Gay &Moch,municipal bond
counseL of S'eattle,Washington,.at the City's.expense.The City
Council,being of the.opinion that it is in the best interest of'
the.City to accept such.offer,.hez'eby accepts the same •.The Bonds
shall,therefore,immediately upon their execution,be delivered to
such purchaser upon payment for the same in accordance with such
offer.The principal amount received from the payment for the Bonds
shall be del?osited in the "Water and Sewer Construction Fund,1974,"
of the City created by Ordinance No.820,as amended,and the accrued
interest received shall be deposited in the Bond Fund.
'S'e'ction""10,.This ordinance shall take effect from and
after passage and five CSL days following its publication as required
by law.
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J "
PASSED by the City Council and APPROVED by the Mayor of
the City of Marysville,Washington,at an open public regular meeting
thereof,this 22nd day of September,1975 •
..~...~
Mayor
ATTEST:
APPROVED AS TO FORM:
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