HomeMy WebLinkAboutO-0925 - Bond issue (Special)'\~I r
CITY OF MARYSVILLE,WASHINGTON
ORDINANCE NO.·.9 2-S-
AN ORDINANCE of the City of Marysville,Washington,
providing for the issuance of $250,000.00 par value
of "General Obligation Bonds,1977,"of the City to
provide a part of the funds to pay the cost of
constructing a municipal library on land acquired
therefor;specifying the maturities and fixing the
form and maximum effective interest rate of such
bonds;establishing a "General Obligation Bond Fund,
1977";and providing for the sale of the bonds.
WHEREAS,the City is in urgent need of a new munici-pal
library to be constructed on land heretofore acquired therefor,
and the funds available to the City to pay the cost thereof are
inadequate and the City is in need of an additional $250,000.00
to complete such project;and
WHEREAS,the value of the taxable property of the City
as ascertained by the last preceding assessment for City purposes
for the calendar year 1977,as the term "value of the taxable
property"is defined in RCW 39.36.015,is $52,751,261.00,and the
City has no outstanding general indebtedness at the time of the
passage of this ordinance,and the amount of indebtedness for which
bonds are herein authorized to be issued is $250,000.00:NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,
DO ORDAIN,as follows:
Section:1.The City of Marysville,Washington (hereinafter
called the "City"),shall borrow money on the credit of the City and
issue negotiable general obligation bonds evidencing such indebtedness
in the amount of $250,000.00 to provide a part of the funds to pay
the cost of constructing a municipal library on land acquired
therefor,and to pay the cost of the issuance of the general
obligation bonds herein authorized.Such general indebtedness to
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be incurred shall be within the limit up to 3/4 of 1%of the
value of the taxable property within the City permitted for general
municipal purposes without a vote of the qualifieu voters therein.
Section 2.The bonds shall be called "General Obligation
Bonds,1977,"of the City,shall be dated March 1,1977,shall be
in denominations of $5,000.00 each,shall be numbered from 1 to
50,inclusive,and shall bear interest at an effective rate not to
exceed 8%per annum,payable on september 1,1977,and semiannually
thereafter on each succeeding March 1 and September 1,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 interes.t,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 in Marysville,Washington.
The bonus shall be payable serially over a period of from two to ten
years from the date of issue and shall mature in order of their
nunmers as follows (based on an assumed interest rate of 5.50%):
Bond Numbers
'(Inclusive)Amounts Maturities
1 to 4 $20,000 March 1,1979
5 to 9 25,000 March 1,1980
10 to 14 25,000 March 1,1981
15 to 19 25,000 March 1,1982
20 to 25 30,000 March 1,1983
26 to 31 30,000 March 1,1984
32 to 37 30,000 March I,1985
38 to 43 30,000 March 1,1986
44 to 50 35,000 March 1,1987
The City reserves the right and option to redeem the
bonds prior to their stated maturity d.ates as a whole,or in part
in inverse numerical order,on March 1,1985,or on any semiannual
interest payment date thereafter,at par plus accrued interest to
date of redemption.
Notice of such intended redemption shall be published in
the official newspaper of the City at least once not less than
thirty nor more than forty-five days prior to the call date,and a
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copy of such notice shall be mailed within the same period to the
original pu~chaser or the account manager of the underwriter who
purchases the bonds.In addition,such redemption notice shall
also be sent to Moody's Investors.Service,Inc.,and Standard &
poor's Corporation,at their offices in New York,New York,but
the mailing of such notice to such corporations shall not be a
condition precedent to the redemption of such bonds.Interest on
any bonds so called for redemption shall cease on such call date
upon payment of the redemption price into the bond redemption fund
for the bonds.
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
excess of par.
section 3.The City hereby irrevocably pledges itself
to levy taxes annually,within the constitutional and statutory
tax limitations provided by lawwitbout a vote of the electors,
upon all property in the City subj.ect to taxation in an amount
sufficient,together with other money of the City available therefor
and allocated thereto,.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 4.The bonds shall be substantially in the
following form:
No.
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF MARYSVILLE .
GENERAL OBLIGATION BOND,1977
%---
$5,000.00
~~OW ALL MEN BY THESE PRESENTS:That the City of
Marysville [the "Ci ty"),S tate of vvashington,for value
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received,promises to pay to bearer on the FIRST DAY
OF MARCH,19_·_,the principal sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of %
per annum,until fully paid,payable on September 1,
1977,and semiannually thereafter on each succeeding
March I and September I with 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 Treasurer of the City in Marysville,Washington.
This bond is one of a total issue of $250,000.00 par
value of bonds,all of like date,tenor and effect,
except for maturities [and interest rates if more than
one interest rate is bid],issued by the City for
general municipal purposes,namely,for the purpose
of providing a part of the funds to pay the cost of
constructing a municipal library on land acquired
therefor,and is issued in full compliance with the
ordinances of the City and the laws and Constitution
of the State of Washington.
The City reserves the right and option to redeem
the bonds prior to their stated maturity dates as a
whole,or in part in inverse numerical order,on
March 1,1985,or on any semiannual interest payment
date thereafter,at par plus accrued interest to date
of redemption.
Notice of such intended redemption shall be published
in the official newspaper of the City at least once not
less than thirty nor more than forty-five days prior to
the call date,.and a copy of such notice shall be mailed
within the same period to {the original purchaser or the
account manager of the underwriter who purchases the
bonds].In addition,such redemption notice shall also
be sent to Moody's Investors Service,Inc.,and Standard
&Poor's Corporation,at their offices in Ne\'1 York,New
York,but the mailing of such notice to such corporations
shall not be a condition precedent to the redemption of
such bonds.Interest on any bonds so called for redemption
shall cease on such call date upon payment of the
redemption price into the bond redemption 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 excess of par.
The City hereby irrevocably pledges itself to levy
taxes annually,within the constitutional and statutory
tax limitations provided by law without a vote of the
electors,upon all property in the City subject to
taxation in an amount sufficient,together w~th other
money of the City available therefor and allocated
thereto,to pay the principal of and interest on the
bonds of this issue as the same shall accrue,and the
full faith,credit and resources of the City are hereby
irrevocably pledged for the payrnent of the principal of
and interest on the bonds.
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It is hereby certified that all acts,conditions 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 indebtedness of the City,including this bond
issue,does not exceed any constitutional or statutory
limitations.
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 City 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 March,
1977.
CITY OF MARYSVILLE,WASHINGTON
By Cfacsimilesignature)
Mayor
AT'I'EST:
city Clerk
The form of the interest coupons shall be substantially
as follows:
Coupon No.
$----
(Unless the bond referred to below has been previously
redeemed)_
On the FIRST DAY OF (MARCH)(SEPTEMBER),19 ,the
CITY OF MARYSVILLE,WASHINGTON,upon presentation and
surrender of this coupon will pay to the bearer at
the office of tlle Treasurer of the City in Marysville,
Washington ,the amount shown hereon in lawful money
of the United States of America,said sum being the
interest due that date on its "General Obligation
Bond,1977,"dated March 1,1977,and nuInbered
CITY OF MARYSVILLE,WASHINGTON
By Cfacsirnilesignature)
Mayor
AT'I'EST:
(facsimile signature)
City Clerk
Section 5.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
under the seal of the City,and the coupons shall bear the facsimile
signatures of the Mayor and the City Clerk.
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Section 6.There is hereby created and established in
the office of the City Treasurer a special fund to be known and
designated as the "General Obligation Bond Fund,1977,"of the City.
The accrued interest received,if any,and an amount of the
principal proceeds received from the sale of the bonds which,
together with such accrued interest,will equal the interest payable
on the bonds on September 1,1977,shall be paid into the "General
Obligation Bond Fund,1977."The balance of the principal proceeds
received from the sale of the bonds shall be paid into the "Building
and/or Maintenance Cumulative Reserve Fund"of the City heretofore
created and established in the office of the City Treasurer.All
taxes collected for·and allocated to the payment of the principal
of and interest on the bonds,and any other money lawfully available
therefor by action of the City Council,shall hereafter be deposited
in the "General Obligation Bond Fund,1977."
Sect'ion 7.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 the bonds shall be
published once a·week for four consecutive weeks in the official
newspaper of the City and a short abbreviated form of 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 the bids for the purchase of the
bonds shall be received by the City Clerk of the City at her office
~.ft,yd{1 1.1 ''#77 IS:c e
in the City Hall on -Feb-r~~==F1,up to ..7~3:0c o'clock p.m.(PST),
and such bids will be publicly opened at such time and will be
considered by the City Council at a meeting thereof then to be
held in the Council Chambers.
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A copy of the notice shall,at least three weeks prior to
the date fixed for the sale,be mailed to the State Finance Conunittee
in Olympia,Washington.
Bidders are invited to name the rate or rates of interest
which the bonds are to bear,not exceeding an effective rate of 8%
per annmo.Bidders shall submit a bid specifying:
(a)The lowest rate or rates of interest and
premiwn,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.
No bid will be considered for the bonds for less than par
and accrued interest.The purchaser must pay accrued interest to
date of delivery of the bonds.
Coupon rates shall be in multiples of 1/8 or 1/20 of 1%,
or both.No more than one rate of interest may be fixed for anyone
maturity.Only one coupon will 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%.
For the purpose of comparing the bids only,the coupon
rates bid being controlling,each bid shall state the total interest
cpst over the life of the bonds and the net effective interest rate
of the bid.
The bonds shall be sold to the bidder making the best bid,
subject to the right of the City Council of the City to reject any
and all bids and to readvertise the bonds for sale in the maBner
provided by law,and no bid for less than all of the bonds will be
considered.
All bids shall be sealed and,except the bid of the
State of Washington,if one is received,shall be accompanied by
a deposit of $12,500.00.~le deposit shall be eith~r cash or
certified or cashier's.check made payable to the Treasurer of
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the City,which shall 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 its bid,the
amount of its deposit shall be forfeited to the City 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 will determine
by lot which bid will be accepted.The bonds will be delivered
to the successful bidder at the office of the Treasurer of the
City of Marysville or in the City of seattle at the expense of
the City,or at such other place as the Treasurer of the City and
the successful bidder may mutually agree upon at the purchaser's
expense.
Any bid presented after the hour specified for the
receipt of bids will not be received,and any bid not accompanied
by the required bid deposit at the time of opening such bid will
not be read or considered.
It is understood that if,prior to the delivery of the
bonds,the income receivable by the holders thereof shall become
taxable,,directly or indirectly,by the terms of any federal income
tax law,the successful bidder may at·its option be relieved of
its obligation to purchase the bonds,and in such case the deposit
accompanying its bid will be returned,~ithout interest.
The City will cause the bonds to be printed or lithographed
and signed without expense to,the successful bidder.
CUSIP numbers will be printed on the bonds,if requested
in the bid of the successful bidder,but neither failure to print
such numbers on any bond nor error with respect thereto shall
constitute cause for a failure or refusal by the purchaser thereof
to accept delivery of and pay for the bonds in accordance with the
terms of the purchase contract.All expenses in relation to the
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printing of CUSIP numbers on the bonds shall be paid by the issuer;
provided,however,that the fee of the CUSIP Service Bureau for the
assignment of said numbers shall be the responsibility of and shall
be paid for by said purchaser.
The City Clerk of the City shall be anu is hereby authorized
and directed to publish notice for the purchase of the bonus ln
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the manner required by law in accordance with the provisions of
this section.Such notice shall provide that the City-will cause
the bonds to be printed or 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 purchaser,such opinion also being
printed on each bond.Such bond opinion shalL state that bond
counsel expresses no opinion on the completeness or accuracy of any
official statement,offering circular or other sales material
relating to the issuance of the bonds prepared by the City or its
financial advisor or otherwise used in connection with such bonds.
A no-litigation certificate will be included in the closing papers.
Such notice shall also ~rovide that further information regarding
the details of such bonds may be received upon request made to the,
City Clerk or to Terry Thompson.&Co.,Financial Center,Seattle,
Washington 98161,the City's financial consultant.
PASSED by the City Council of the City of Marysville,
Washington,.at a regular open public meeting thereof,and APPROVED
by the Mayor this 14,"th day of February,"1977.
•Mayor
ATTEST:
W~,)/~
City Clerk
Published:
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