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HomeMy WebLinkAboutO-1361 - Water and sewer revenue bonds (Special)~.t -i", .... CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.J3~L AN ORDINANCE of the City of Marysville, Washington,relating to the waterworks utility of the City,including the sewerage system as a part thereof;creating a water and sewer revenue bond anticipation note fund;authorizing the issuance and sale of a bond anticipation note pending the receipt of the proceeds of the water and sewer revenue bonds authorized to be issued by Ordinance No.1269,as amended by Ordinance No.1304;and providing for the sale of such bond anticipation note to Citizens Bank of Snohomish County,Marysville,Washington. WHEREAS,the City of Marysville,Washington (the "City"), by Ordinance No. 385 passed September 2,1952,combined the sewerage system of the City and all additions and improvements thereto with the waterworks utility of the City,and the sewer- age system at all times since has been considered a part of and belonging to the waterworks utility of the City,and the words "waterworks utility of the City"shall hereinafter mean the combined sewerage system and water system of the City,together with all additions thereto and betterments and extensions thereof hereafter made;and WHEREAS,the City,by Ordinance No.1269 passed January 24, 1983,as amended by Ordinance No. 1304 passed August 22,1983, specified,adopted and ordered the carrying out of a system or plan of additions to and betterments and extensions of the waterworks utility of the City;declared the estimated cost thereof as nearly as may be;created Utility Local Improvement ..- District No.9;authorized the issuance and sale of water and sewer revenue bonds in the principal sum of approximately $235,000 (plus interest on the short-term financing)to provide the funds necessary to carry out such system or plan,such bonds to be supported by assessments to be levied in Utility Local Improvement District No.9 therein created;created a special construction fund to be known and designated as the "Water and Sewer Construction Fund,1983;"and authorized the issuance of interest-bearing warrants drawn upon such special construction fund pending the sale of such revenue bonds,or the issuance and sale of short-term bond anticipation notes in lieu of such interest-bearing warrants;and WHEREAS,pursuant to Ordinance No. 1304 the City issued its "Water and Sewer Revenue Bond Anticipation Notes,1983,"dated September 7,1983,in the aggregate principal amount of $235,000 (the "Outstanding Notes"),to mature on June 1,1984,which notes.because of delays in constructing the improvements must be funded by the issuance of an additional bond anticipation note and other funds of the City legally available therefor;and WHEREAS the City Council deems it to be in the best inter- est of the City that the City borrow money and issue such short term obligation in accordance with the provisions of Chapter 39.50 RCW (Chapter 216,Laws of 1982 Regular Session)in anticipation of the sale of the water and sewer revenue bonds authorized by Ordinance No.1269,as amended,for the purpose of - 2 - .......... '.. ---------- paying a part of the cost of paying and redeeming the Outstand- ing Notes;and WHEREAS.Citizens Bank of Snohomish County,Marysville. Washington,has submitted an offer to purchase such short-term bond anticipation note on the terms and conditions hereinafter set forth,NOW THEREFORE. THE CITY COUNCIL OF THE CITY OF MARYSVILLE.WASHINGTON,DO ORDAIN.as follows: Section 1.There is created and established in the office of the City Finance Director a special fund to be known as the "Water and Sewer Revenue Bond Anticipation Note Fund,1984," (the "Note Fund"). For the purpose of providing the funds to pay a part of the cost of paying and redeeming the Outstanding Notes.the City shall issue and sell its "Water and Sewer Revenue Bond Anticipa- tion Note.1984"(the "Note").in the total principal amount of $200.000.The Note shall be dated as of the date of its issu- ance,shall bear interest at the rate of 9.00%per annum, payable at maturity,with full obligation on the part of the City to pay interest at the same rate from and after maturity until the Note with interest is paid in full or until sufficient money for such payment in full is on deposit in the Note Fund and the Note has been duly called for redemption in the manner hereinafter set forth.and shall mature on December 31,1984. Both principal of and interest on the Note shall be payable solely out of the Note Fund from the proceeds of water and sewer - 3 - .,..' .. r. revenue bonds authorized to be issued by Ordinance No.1269,as amended,to be deposited in such fund or other short-term obligations,or other money legally available and to be used therefor,and the City irrevocably pledges to issue a sufficient amount of such water and sewer revenue bonds to redeem the Note on or before December 31,1984,from the proceeds of such bonds, additional notes,or other money available for such purpose. The Notes shall be payable in lawful money of the United States of America at the Office of the City Director of Finance in Marysville,Washington.The City Council declares and finds that the fixing of the above interest rate is in the best interest of the City. The City reserves the right to prepay the Note on or after September 4,1984,at par plus accrued interest,upon giving ten days'written notice to Citizens Bank of Snohomish County, Marysville,Washington.Interest on the Note shall cease on the date fixed for prepayment in full upon payment into the Note Fund of sUfficient money to pay fully the principal of and interest to date of prepayment of the Note. The Note shall be printed or lithographed on good bond paper or may be in typewritten or multicopied form in a form consistent with this ordinance and state law.The Note shall be signed by the Mayor and the City Clerk,and shall have the seal of the City affixed thereto. Section 2.The City covenants that it will make no use of the proceeds of the Note or of its other money at any time - 4 - -" • " during the term of the Note which will cause the Note to be an arbitrage obligation within the meaning of Section l03(c)of the United States Internal Revenue Code of 1954,as amended,and applicable regulations promulgated thereunder. Section 3.Citlzans Bank of Snohomish,Marysville, Washington,has submitted an offer to purchase the Note at a price of par,plus accrued interest from the date of the Note to the date of its delivery to the purchaser,the City to furnish the printed,typewritten or multicopied Note and the approving legal opinion of Roberts &Shefelman,municipal bond counsel of Seattle,Washington,at the City's expense.Bond counsel shall not be required to review or express any opinion concerning the completeness or accuracy of any official statement,offering circular or other sales material issued or used in connection with the Note.and bond counsel's opinion shall so state.The City Council.deeming that it is in the best interest of the City that such offer be accepted,accepts the same.The Note shall,therefore,immediately upon its execution,be delivered to Citizens Bank of Snohomish,Marysville,Washington.upon payment therefor in accordance with such offer. The principal proceeds received from the sale of the Note shall be paid into the "Water and Sewer Revenue Bond Anticipa- tion Note Fund,1983,"and used,together with money presently on deposit in such fund,to pay and redeem,both principal and interest,the Outstanding Notes or to reimburse the City fund used temporarily to pay that principal and interest. - 5 - .- Section ·4.This ordinance shall take effect from and after its passage and five (5)days following its publication or posting as required by law. PASSED by the City Council and APPROVED by the Mayor of the City of Marysville,Washington,at a regular open public meeting thereof,this 29th day of May,1984. ATTEST: APPROVED AS TO FORM: ~.g a L __~ y Attorney 0238m - 6 - AFFIDAVIT OF PUBLICATION No._ STATE OF WASHINGTON, County of Snohomish, ss. ____hin.d..a_~_e.bs_ter__. ,being first duly sworn on oath deposes and says that he is theJ3.e~et_ar.y__.. _ of THE MARYSVILLE GLOBE, a weekly newspaper. That said newspaper is a legal newspaper which hag been ap- proved by order of the Superior Court in Snohomish County June 18, 1962 in compliance with Chapter 213 of Washington Laws of 1941, and it is now and has been for more than six months prior to the date of the publication hereinafter re- ferred to,published in the English language continually as a weekly newspaper in Marysville,Snohomish County,Wash- ington,and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said newspaper.That the annexed is a true copy of a _________.9.l':d.insm,_Q~L1tQ ...__13Jl:l as it was published in regular issues (and not in supplement form)of said newspaper once each week for a period of _Qo..e con- secutive weeks,commencing on the .3iltb.__day of J1~.3.--_, 19~_,and ending on the .3.Qth.__day of _.M~~,19_~Y._, both dates inclusive,and that such newspaper was regularly distributed to its subscribers during all of said period.That the full amount of the fee charged for the foregoing publi- cation is the sum of $__14B_~5~L,which amount has been paid in full J ..'./..----~--~~------- Subscribed and sworn to before me this ~!:::..._ day of ~~-);,~.~:~~..&.. Notary Public in and for the State of Washington, Residing at MarySVille. ...-:-'...,...........,,-:'-........ el'F'MI"i :S~ILLE.WASHINGTON \ORIlI:INANCE NO.1361 AN'ORDI NANCi::of the City of.Mlll·y~~ille.Washington,relating to the waterworks utility of the City,.including the sewerage system as a part thereof:creating a water and sewer revenue bond anticioation note fund:euthcr lzlnc the issuance and sale of a bond anticipation note pending Ihe receipt of the proceeds ot the water and sewer revenue bonds authorized to be issuEid by Ordinance NO,1269.as amended by Or- dinance No. 1304:and providing for the sale of such bond anticipation note to Citizens Bank of Snohomish County.Marysville,Washington, WHEREAS,the City of Marysville.Washington (the "City").by Ordinance No, 385 passed September 2.1952,combined the sewerage system of the City and 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 water' works utility of .tne City.and the words "waterworks utility of the City"shall hereinafter mean the combined sewerage system and water system of the City,I together wi,th all add,ilionsthereto and be,'tterments and extensions thereof hereafte,r I made:and ,' ,WHEREAS,the City.by Ordinance No,1269,passed January 24.1983.as amend.ed, by Ordinance NO,1304 passed August 22,'1983.specifled.adopted and oroered the car' rying out of a system or plan of additions to and betterments and extensions of the waterworks utility of the City;declared the estimated cost thereof as nearly as may be;created Utility Local Improvement District No.9;authorized the issuante and saleot water 'and sewer revenue bonds in the pi"incipal sum of approximately $235.000 (plus interest on the short-term financing)to provide tile funds necessary to cerv out such system or,pJan,such bonds to be supported by assessments to be levied in Utility Local Improvement DlstrIctNo.9 therein ereetec:created',a special coi'lStructio-n hind to be known and designated as the "Water and Sewer Construction Fund,1983;" and authortzed the issuance of interest-bearing warrants'drawn upon such special construction fund pending the sale of such revenue bonds. or the issuance and sale of .snorr-term bond anticipation notes in lieu of such 'interest-bearing warrants;and WHEREAS,pursuant to Ordinance No. 1304the City Issued its "water and Sewer Revenue Bond Anticipation Notes. 1983."dated September 7,1983.in the aggregate principal amount of $235.000 (the "Outstanding Notes"),to mature on June 1.1984, which notes. because of delays in constructing the improvements must be funded by the issuance of an,additional bond anticipation note and other funds of the City legally available therefor;and WH E Ft EAS the City Council deems it to be in the best interest oi the City that the CI- ty borrow money and issue such short term obligation in accordance with the provi- sions of Chapter 39.50RCW (Chapter 216.Laws of 1982 Regular SessiOn) in anTicipa- non of the sale of the water and sewer revenue bonds authorized by orctnance No. 1269.as amended,for the purpose of paying a part of ttie cost of paying and redeeming the Outstanding Notes;and , WHEREAS,Citizens Bank of Snohomish county,Marysville,Washington,has sub- mitted an offer to pureness such snort-term bond anticipation note on the terms and conditions hereinafter set forth,NOW THEREFORE."'...,_ THE CITY COUNCIL OF THE CITY OF MARYSVILLE.WASHINGTON.DO OR- DAIN,as follows: Section 1.There is created and established in the office of the City Finance Director a special fund to be known as the "Water and Sewer Revenue Bond Anticipation Note Fund,1984,"(the "Note Fund")," For the purpose of prOViding the funos to pay a part of the cost of paying and redeeming the Outstanding Notes, the City shall issue and sell its "Water and Sewer Revenue Bond Anticipation Note. 1984"(the "Note"),in the total principal amount of $200.000.The Note shall be dated'as of the date of its issuance.shall bear interest at the rate of 9.00% per annum.payable at maturity.with full obligation on the part of the City to pay interest at the same rate fror'h and after maturity until the Note with in-- teresf is paid in full or until suflicient money for such payment in full Is on deposit In the Note Fund and the Note nas been duly called for redemption in the manner hereinafter set forth.and shall mature on December 31,1984.Both principal of and in- terest on the Note shall be payable solely out of the Note Fund from the proceeds of water and sewer revenue bonds authorized to be issued by ordinance No.'1269,as amended,to be deposited in such fund or other short-term obligations,or other money legally available and to be used therefor,and the Citv trrevcceblv pledges to Issue a sufficient amount of such water and sewer revenue bonds to redeem the Note on or before December 31,1984.from the proceeds of such bond additional notes, or other money available for suctrpurpose.The Notes shall be payable in lawful money of the United States of America at the Office of tile City Director of Finance in Marysville, Washington.The City Council declares and finds that the fixing of the above interest rate is in the best interest'of the City.',", The City reserves the right to prepay the Note on or after September 4, 1984,at par plus accrued interest..upen giving ten,days'written notice to Citizens Bank of, Snohomish County.Marysville.Washington.Interest on the Note shall cease on the date fixed for prepayment in full upon payment into the Note ~und of sufficient money to pay fUlly th'e principal of and interest to date of prepayment of the Note. The Note shall be printed or lithographed on good bond paper or may be in typewrit- ten or multic;opied form In a form conSistent with this ordinance and state law,Tne Note shall be signed by the Mayor and the,City Clerk.and shall have the seal of the CI- ty affixed thereto. Section 2.The City covenants that It will make no use of the proceeds of the Note or of its Other mon,ey at any time during the term of the ~o,te which will cause'me Note to be an arbitrage obligation within tile meaning of Section 103 (c)of the United States Internal Revenue Code of 1954,as amended.and applicable regulations promulgated thereunder.' Section 3.Citizens Bank of Snohomish.Marysville,Washington.has submmed an offer to purchase the Note at a price of pa'r, plus accrued Interest from the date of the Note to the date of its delivery to the purchaser.the City to furnish the printed, typewritten or multicopled Note and th,e approving legal opinion of Roberts ~ snetetman,munlc;lpal,bond,counsel of Seattle,Washington;at the City'S expenSe. Bond counsel shall not be requlred to rev,lew or express lIny opinion concerning 'the completeness or accuracy of any,official statement.Offering circular'or erner sales material Issued or used in:con-hectiofi'wit'h Note"andbond counsel's opinion shall so state.The City CouncH,9c':l1rn1ng ,tl:!at'er,:S!of the City that such offer be accepted,accepts"the,.same"Tt)e ore,lm'medlately upon Its execution,be del'iveted tb Citizens Bank 0 ysville.Washington,upon ...........-..-.l:~~.-1;;:':,0;.,.t>.~----------~ paymen.tthe,ofttg,'i . " .-.', Theprllic n1~e',~ote shall be Plid into tne "Water and 'ewer 'lion Note Fuhd.1983•."and USed.together with moniy pr~Sel:r ,urld;fo pay lind redeem,both prlnclpa'and interest.the Outstan ._.,,.~yrse the,Clty fund used temporarily to pay that principal lind Interest.,"",',' section 4.This ordinance shall take,effett from.and after 'ItS passage lind five (.5) daysfotlowlng Its'publication Or postlnlf IS ,required bylaw.'.-.:-" PASSED by the''cltv Council and APPROVED by tne Mayor of the Clty''gf MarYSville,Washington;at a regular open public meeting thereof,this 19th day of May,19M.' ,Norman,Anderson,Mayor , Attest:Phillip E:'Dexter.City Clerk -' Approved as to Form:James'H.Allendoerfer,City Atty. Published:May 30, 1984