HomeMy WebLinkAboutO-1459 - Amends Ord. 1444, sewer and revenue bonds (Special)CITY OF MARYSVILLE,WASHINGTON
ORDINANCE NO.J~~~
AN ORDINANCE of the City of Marysville,
Washington,relating to the waterworks utility of the
City,including the system of sewerage as a part
thereof;amending Ordinance ·No.1444;providing for
the issuance of $3,260,000 principal amount of Water
and Sewer Revenue Bonds,1986,of the City for the
purpose of providing funds to pay the cost of redeem-
ing,both principal and interest,the outstanding
Water and Sewer Revenue Bond Anticipation Notes,
1985,of the City,to pay the costs of carrying out a
portion of the system or plan of additions to and
betterments and extensions of the Waterworks utility
of the City as adopted by Ordinance No.1444,and to
pay the costs of issuing the bonds;fixing the date,
form,maturities,interest rates,terms and covenants
of such bonds;and approving the sale and providing
for the delivery of such bonds to Harper,McLean &
Company of Seattle,Washington.
WHEREAS,the City of Marysville,Washington (the "City"),
by Ordinance No.384,specified and adopted a system oli~~lan of
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additions to and betterments and extensions of the waterworks
utility of the City,and authorized the issuance and sale of not
to exceed $280,000 par value of Water Revenue Bonds,1952,of
which $134,000 par value thereof were heretofore issued as
Series A,$100,000 par value thereof as Series B,and $46,000
par value thereof as Series C,and all which bonds have now
matured and been paid;and
WHEREAS,by Section 19 of such Ordinance No.384,the City
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
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of sewerage or additions,extensions and betterments to an
existing system and provide that the system of sewerage,includ-
ing 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 utility of the City,
on a parity with the Water Revenue Bonds,1952,provided certain
conditions shall be met and complied with at the time of the
issuance of such additional bonds;and
WHEREAS,the City by Ordinance No.385 combined the sewer-
age system of the City with 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 com-
bined sewerage system and water system of the City,together
with all additions thereto and betterments and extensions
thereof hereafter made;and
WHEREAS,the City subsequently issued and sold bonds of the
following issues:
Water and Sewer Revenue Bonds,1963
Water and Sewer Revenue Bonds,1965
Water and Sewer Revenue Bonds,1967
Water and Sewer Revenue Bonds,1969
(collectively hereinafter called-the
"Prior Lien Bonds")and
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Water and Sewer Revenue Bonds,1969,Issue No.2
(the "1969 Bonds,Issue NO.2")
all of which bonds having been issued on a parity of lien with
each other and constitute a first and prior charge and lien on
the Revenue of the Waterworks utility of the City (as herein
defined);and
WHEREAS,the City thereafter issued and sold pursuant to
Ordinance No.873,$1,090,000 par value of Water and Sewer
Revenue Bonds,1975 (the "1975 Bonds"),which 1975 Bonds con-
stitute a charge and lien upon the Revenue of the Waterworks
utility of the City (as herein defined)junior to the prior
charge and lien upon such Revenue for all of the Prior Lien
Bonds but a first charge and lien upon assessments collected
within utility Local Improvement Districts Nos.1,2,3 and 4
created in connection with and pledged to the payment of such
1975 Bonds;and
WHEREAS,pursuant to Ordinance No.967,under date of issue
of December I,1977,the City issued and sold $2,307,000 par
value of Water and Sewer Revenue Refunding Bonds,1977 (the
"1977 Bonds")to provide a part of the funds to refund the
outstanding 1969 Bonds,Issue No.2,and 1975 Bonds by providing
for the payment of the principal of and interest on such 1969
Bonds,Issue No.2,as the same became due up to and including
January I,1997,and for the call,payment and retirement of all
remaining outstanding 1969 Bonds,Issue No.2,on January I,
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1997,and (b)for the payment of (i)the principal of and inter-
est on such 1975 Bonds numbered 7 to 174,inclusive,being the
Serial Bonds,as the same shall become due up through January 1,
1986,at which time 1975 Bonds numbered 85 to 175,inclusive,
will be called,paid and retired;(ii)the principal of and
interest on 1975 Bonds numbered 215 to 224,inclusive,on
January 1,1978,the holders thereof having consented to sur-
render such bonds for payment and retirement on such date,and
(iii)the interest on 1975 Bonds numbered 175 to 214,inclusive,
being Term Bonds,as the same becomes due up through their
respective call dates,and the principal of such Term Bonds as
the same shall be called,paid and retired in accordance with
the call provisions applicable thereto as provided in oxd i nance
No.873 and in such Term Bonds;and
WHEREAS,by subparagraph (i)of Section 9 of Ordinance No.
967 the City covenanted that:
"It would 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 would rank on B
parity with or have any priority over the payments
into or the money in the Water and Sewer Revenue
Refunding Bond Fund,1977,except that it reserved
the right for:
"(1)the purpose of acquiring,constructing
and installing additions and improvements to and
extensions and betterments of,acquiring necessary
equipment for or making necessary replacements of
equipment or capital'improvements to the Waterworks
utility of the City;or
"(2)The purpose of exchanging or purchasing
and retiring prior to or at their maturity any out-
standing water and sewer revenue bonds of the City;
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"to issue a~ditional and/or refunding water and sewer
revenue bonds (herein defined as 'Future 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 ULID Assessments collected in any ULID
hereafter created in connection with the issuance of
such Future Parity Bonds sufficient to pay the prin-
cipal of and interest on such Future Parity Bonds,
which such payments may rank equally out of such
Revenue of the Waterworks utility of the City and
ULID Assessments collected in ULIDs Nos.1,2,3 and
4 if the City complies with the following ~onditions:
"(1)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
of such water and sewer revenue bonds and no defi-
ciency exists therein;
"(2)If one or more ULIDs shall be created in
connection with the issuance of such Future Parity
Bonds,not less than 95%of the total amount of such
Future Parity Bonds to be so issued shall be assessed
against the properties specially benefited in such
ULIDs,and the Assessments paid into the Bond Fund,
or,if no ULID is created in connection with the
issuance of such Future Parity Bonds,then there
shall be on file a certificate from an independent
licensed professional engineer experienced in the
design,construction and operation of municipal
utilities showing that in his professional opinion
the annual income available for debt service on the
Prior Lien Bonds,the Refunding Bonds,any Future
Parity Bonds then outstanding and the Future Parity
Bonds proposed to be issued for each year shall be at
least equal to the Coverage Requirement (1.35 times
that amount of debt service to be paid from Operating
Revenue and not Assessments).
"(3)The ordinance authorizing any Future
Parity Bonds shall require that the Reserve Account
be increased within a period of five years after the
date of issuance of the Future Parity Bonds to an
amount equal to the "average annual principal and
interest requirements on all Future Parity Bonds,
including the Refunding Bonds and the proposed Future
Parity Bonds to be issued,including in such amount
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the principal amount of any Term Bonds included in
the Future Parity B6nds issue";
and
WHEREAS,pursuant to Ordinance No.1088,the City issued
and sold $1,200,000 par value of Water and Sewer Revenue Bonds,
1979 (the "1979 Bonds"),dated December I,1979,which 1979
Bonds were issued on a parity of lien with the 1977 Bonds pur-
suant to the provisions of Section 9 of Ordinance No.967;and
WHEREAS,pursuant to Ordinance No.1155 the City issued and
sold $2,140,000 par value of Water and Sewer Revenue Bonds,1980
(the "1980 Bonds"),dated December 1,1980,which 1980 Bonds
were issued on a parity of lien with the 1977 Bonds and the 1979
Bonds pursuant to the provisions of Section'9 of Ordinance No.
967;and
WHEREAS,pursuant to Ordinance No.1403,the City,issued
and sold $247,000 par value of Water and Sewer Revenue Bonds,
1984 (the "1984 Bonds"),dated December 1,1984,which 1984
Bonds were issued on a parity of lien with the 1977 Bonds,the
1979 Bonds and the 1980 Bonds pursuant to the provisions of
Section 9 of Ordinance No.967;and
WHEREAS,pursuant to Ordinance 1428,the City issued and
sold $2,315,000 par value of Water and Sewer Revenue Refunding
Bonds,1985 (the "1985 Bonds"),dated August 1,1985,to provide
a part of the funds to refund,pay and retire the outstanding
1980 Bonds and 1984 Bonds,which 1985 Bonds were issued on a
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parity of lien with the 1977 Bonds and the 1979 Bonds pursuant
to the provisions of Section 9 of Ordinance No.967;and
WHEREAS,by Ordinance No.1444,passed by the City Council
and approved by the Mayor on December 9,1985,the City ordered
the carrying out of a portion of the 1982 Comprehensive Water
System Plan of the City,adopted a system or plan of additions
to and betterments and extensions of such comprehensive plan,
authorized the issuance of not to exceed $3,255,000 par value of
water and sewer revenue bonds to provide the funds necessary to
carry out such improvements and authorized and provided for the
issuance of $2,500,000 par value Water and Sewer Revenue Bond
Anticipation Notes,1985 (the "1985 Notes")to pay part of the
costs of carrying out such improvements pending the issuance of
such water and sewer revenue bonds;and
WHEREAS,the City Council has determined that it is neces-
sary to issue and sell $3,260,000 par value of water and sewer
revenue bonds to redeem the outstanding 1985 Notes,both prin-
cipal and interest,to pay a part of the cost of carrying out
the system or plan of additions to and betterments and exten-
sions of the Waterworks utility of the City as ordered to be
carried out by Ordinance No.1444,and to pay the costs of
issuance of the bonds,and Harper,McLean &Company has offered
to purchase such bonds on the terms and conditions hereinafter
set forth;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,DO
ORDAIN as follows:
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Section 1.Section 5 of Ordinance No.1444 is amended to
read as follows:
Section 5.The estimated cost of the acquisi-
tion,construction and installation of the Plan of
Additions is declared to be,as nearly as may be,the
sum of $3,260,000,which shall be paid from the
proceeds received from the issuance and sale of the
bonds authorized by this ordinance and from any other
funds of the City legally available to be used
therefor.
Section 2.Section 6 of Ordinance No.1444 is amended to
read as follows:
Section 6.For the purpose of paying part of
the costs of the Plan of Additions,the City shall
issue its water and sewer revenue bonds in the amount
of not to exceed $3,260,000.The exact amount,date,
price,denomination,form,covenants and lien posi-
tion of and interest rate or rates on such bonds
shall be specified later by the ordinance providing
for the definitive bonds.
Section 3.Definitions.As used in this ordinance,the
following words shall have the following meanings:
(a)"Annual Debt Service"for the Bonds and any
Future Parity Bonds shall mean,in any year,that year's total
of principal and interest requirements for the then outstanding
bonds (except the principal maturity of Term Bonds)to which the
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term Annual Debt Service refers,plus any mandatory sinking fund
or mandatory bond redemption requirement for that year,less all
capitalized interest payable that year from such bonds.
(b)"Average Annual Debt Service"for the Bonds and
any Future Parity Bonds shall mean,in any year,the sum of the
remaining Annual Debt Service of the then outstanding bonds to
which the Average Annual Debt Service refers divided by the
number of years such bonds are scheduled to remain outstanding.
(c)"Bond Fund"shall mean that special fund of the
City known as the Water and Sewer Revenue Refunding Bond Fund,
1977,created by Ordinance No.967 for the payment of the prin-
cipal of and interest on the 1977 Bonds and any Future Parity
Bonds,including the 1979 Bonds,the 1985 Bonds and the Bonds.
(d)"Bond Registrar"shall mean the fiscal agencies
of the State of Washington in Seattle,Washington,and New York,
New York,as the same may be designated from time to time.
(e)"Bonds"shall mean the $3,260,000 par value of
Water and Sewer Revenue Bonds,1986,of the City issued'pursuant
to and for the purposes provided in this ordinance.
(f)"1977 Bonds"shall mean the $2,307,000 par value
of Water and Sewer Revenue Refunding Bonds,1977,issued for the
purposes provided in and pursuant to Ordinance No.967.
(g)"1979 Bonds"shall mean the $1,200,000 par value
of Water and Sewer Revenue Bonds,1979,issued for the purposes
provided in and pursuant to Ordinance No.1088.
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(h)"1985 Bonds"shall mean the $2,315,000 par value
of Water and Sewer Revenue Refunding Bonds,1985,issued for the
purposes provided in and pursuant to Ordinance No.1428.
(i)"City"shall mean the City of Marysville,
Washington.
(j)"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,the payment of the principal of
and interest on which constitutes a charge and lien on the
Revenue of the Waterworks utility of the City and ULID Assess-
ments equal in rank with the charge and lien upon such Revenue
of the Waterworks Utility and ULID Assessments required to be
paid into the Bond Fund to pay and secure the payment of the
principal of and interest on the Outstanding Parity Bonds and
the Bonds.
(k)"Government Obligations"shall mean those govern-
ment obligations defind by RCW 39.53.010(9)as it now reads or
hereafter may be amended and which are otherwise lawful invest-
ments of the City at the time of such investment.
(1)"Net Revenue of the Waterworks Utility"shall
mean Revenue of the Waterworks Utility less Operating and
Maintenance Expenses.
(m)"1985 Notes"shall mean the $2,500,000 par value
of Water and Sewer Revenue Bond Anticipation Notes,1985,issued
for the purposes provided in and pursuant to Ordinance No.1444.
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(n)"Operating and Maintenance Expenses"shall mean
all reasonable expenses incurred by the City in causing the
Waterworks utility to be operated and maintained in good repair,
working order and condition,but shall not include any deprecia-
tion or taxes levied or imposed by the City.
(0)"Outstanding Parity Bonds"shall mean the out-
standing 1977 Bonds,1979 Bonds and 1985 Bonds.
(p)"Principal and Interest Account"shall mean the
account of that name created in the Bond Fund for the payment of
the principal of and interest on the Outstanding Parity Bonds,
the Bonds and Future Parity Bonds.
(q)"Prior Lien Bonds"shall mean the outstanding
Water and Sewer Revenue Bonds,1963,Water and Sewer Revenue
Bonds,1965,Water and Sewer Revenue Bonds,1967,and Water and
Sewer Revenue Bonds,1969.
(r)"Reserve Account"shall mean the account of that
name created in the Bond Fund for the purpose of securing the
payment of the principal of and interest on the Outstanding
Parity Bonds,the Bonds and Future Parity Bonds.
(s)"Revenue of the Waterworks utility"shall mean
all the earnings and revenue received by the Waterworks utility
of the City from any source whatsoever,except general taxes,
ULID Assessments,proceeds from the sale of City property and
bond proceeds.
(t)"Term Bond Maturity Year"shall mean any calendar
year in which bonds of anyone issue or series now or hereafter
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scheduled to mature (regardless of any reservation of prior
redemption rights)is more than 1.25 times the average annual
principal maturity of the bonds of such issue or series for the
three maturity years immediately preceding such year.
(u)"Term Bonds"shall mean those outstanding bonds
of any single issue or series scheduled to mature in any Term
Bond Maturity Year.
(v)"ULIO"shall mean utility local improvement
district.
(w)"ULIO Assessments"or "Assessments"shall mean
the assessments levied in such ULIOs of the City as may have
heretofore been created and as may hereafter be created under
state law which may authorize the creation of the same and shall
include installments thereof and interest and any penalties
thereon pledged to be paid into the Bond Fund.
(x)"Waterworks utility"shall mean the waterworks
utility of the City,including the sewerage system as a part
thereof,and all additions thereto and betterments and ext en-
sions thereof at any time made.
Section 4.The City Council finds:
(1)All payments required by any ordinance of the
City pertaining to outstanding water and sewer
revenue bonds of the City have been made into
the respective bond redemption funds for the
payment of such water and sewer revenue bonds
and no deficiency exists therein;and
(2)There is or will be on file with the City prior
to the delivery of the Bonds a certificate of an
independent licensed professional engineer
experienced in the design,construction and
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operation of municipal utilities showing that in
his or her professional opinion the annual
income available for debt service on the Prior
Lien Bonds,the Outstanding Parity Bonds and the
Bonds is at least equal to 1.35 times that
amount of debt service to be paid from Revenue
of the Waterworks utility and not ULID
Assessments.
Section 5.For the purpose of providing the funds required
to (1)pay on April 10,1986,the principal of and interest on
the 1985 Notes,(2)pay the cost of carrying out a portion of
the system or plan of additions to and betterments and exten-
sions of the 1982 Comprehensive Water System Plan of the City as
ordered to be carried out by Ordinance No.1444,and (3)pay the
costs of issuance of the Bonds,the City shall issue the Bonds
in the aggregate principal amount of $3,260,000.
The Bonds shall be dated April 1,1986;shall be in the
denomination of $5,000 each or any integral multiple thereof
within a single maturity;shall be numbered separately in the
manner and with any additional designation as the Bond Registrar
deems necessary for purpose of identification;and shall bear
interest at the rates set forth below (computed on the basis of
a 360-day year of twelve 30-day months),payable on December 1,
1986,and semiannually thereafter on each succeeding June 1 and
December 1.The Bonds shall be payable solely out of the Bond
Fund,and shall be a valid claim of the owner thereof only as
against such Bond Fund and.the amount of the Revenue of the
Waterworks utility of the City and ULID Assessments pledged to
such'fund and shall not be general obligations of the City.
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The Bonds shall bear interest and mature on June 1 in years
and amounts as follows:
Maturity Principal Interest
Years Amounts Rates
1987 $30,000 5.75%
1988 30,000 6.00
1989 30,000 6.25
1990 40,000 6.50
1991 40,000 6.70
1992 45,000 6.90
1993 45,000 7.00
1994 50,000 7.10
1995 50,000 7.20
1996 -0 --o -
1997 60,000 7.40
1998 65,000 7.50
1999 65,000 7.60
2000 110,000 7.70
2001 375,000 7.80
2002 385,000 7.90
2003 405,000 8.00
2004 440,000 8.10
2005 480,000 8.15
2006 515,000 8.20
If any Bond is not redeemed upon proper presentment at its
maturity or call date,the City shall be obligated to pay inter-
est at the same rate for each such Bond from and after its
maturity or call date until such Bond,both principal and inter-
est,shall have been paid in full or until sufficient money for
such payment in full is on deposit in the Bond Fund and such
Bond has been called for payment.
Upon surrender thereof to the Bond Registrar,Bonds are
interchangeable for Bonds in any authorized denomination of an
equal aggregate principal amount and of the same interest rate
and maturity.Bonds may be transferred only if endorsed in the
manner provided thereon and surrendered to the Bond Registrar .
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Such exchange or transfer shall be without cost to the owner or
transferee.
The Bonds shall be issued only in registered form as to
both principal and interest on the books and records maintained
by the Bond Registrar (the "Bond Register").Such Bond Register
shall contain the name and mailing address of the owner of each
Bond and the principal amount and number of Bonds held by each
owner.
Both principal of and interest on the Bonds shall be pay-
able in lawful money of the United States of America.Interest
on the Bonds shall be paid by check or draft mailed to the
registered owners at the addresses appearing on the Bond
Register on the 15th day of the month preceding the interest
payment date.Principal of the Bonds shall be payable upon
presentation and surrender of the Bonds by the registered owners
at either of the principal offices of the Bond Registrar at the
option of such registered owners.
Section 6.Bonds maturing in the years 1987 through 1996,
inclusive,shall be issued without the right or option of the
City to redeem the same prior to their stated maturities.The
City reserves the right to redeem Bonds maturing in the years
1997 through 2006,inclusive,at the option of the City,on
June 1,1996,and on any interest payment date thereafter,as a
whole,or in part in inverse order of maturity {and by lot
within a maturity in such manner as the Bond Registrar shall
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determine),at par plus accrued interest to the date of redemp-
tion.Notwithstanding any other provision of this paragraph,if
the City fails or reasonably expects to be unable to comply with
any applicable requirements or restrictions imposed on the City
with respect to 'the Bonds under any future federal law or
regulations promulgated thereunder,including but not limited to
requirements relating to the timing of expenditures of Bond
proceeds,restrictions on investment of Bond proceeds pending
their expenditure for the purposes of the issue,and calculating
and rebating to the United States interest earnings on Bond
proceeds in excess of the Bond yield,and the City's bond
counsel,at the request of the City,gives an opinion to the
City that,as a result of such actual or expected noncompli-
ance,interest on the Bonds is taxable,or will become taxable
unless unspent Bond proceeds are used to redeem a portion of the
Bonds,then the City wiil call for redemption at par plus
accrued interest all outstanding Bonds,or,if fewer than all of
the outstanding Bonds are to be redeemed,that number of Bonds
selected in chronological order of maturity (and by lot within a
maturity)as will result in the preservation of the tax exemp-
tion for interest on the Bonds which remain outstanding,within
75 days of the date on which bond counsel gives such opinion to
the City.For the purposes of this paragraph,the imposition by
any future federal law of any alternative minimum tax on the
interest on the Bonds shall not be deemed to be an event requir-
ing the City to call any Bonds for redemption.
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Portions of the principal amount of any Bond,in install-
ments of $5,000 or any integral multiple of $5,000,may be
redeemed.If less than all of the principal amount of any Bond
is redeemed,upon surrender of such Bond at the principal office
of the Bond Registrar,there shall be issued to the registered
owner,without charge therefor,a new Bond,or Bonds at the
option of the registered owner,of like maturity and interest
rate in the aggregate principal amount remaining unredeemed.
Notice of any such intended redemption shall be given not
less than 30 nor more than 60 days prior to the date fixed for
~edemption by first class mail,postage prepaid,to the regis-
tered owner of any Bond to be redeemed at the address appearing
on the Bond Register.The requirements of this section shall be
deemed to be complied with when notice is mailed as herein
provided,whether or not it is actually received by the owner of
any Bond.The interest on the Bonds so called for redemption
shall cease on the date fixed for redemption unless such Bonds
so called are not redeemed upon presentation made pursuant to
such call.In addition,such redemption notice shall be mailed
within the same period,postage prepaid,to Moody's Investors
Service,Inc.,and Standard &Poor's Corporation at their
offices in New York,New York,or their successors,but such
mailing shall not be a condition precedent to the redemption of
such Bonds.
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The City also reserves the right and option to purchase any
of the Bonds on the open market at a price not in excess of par
plus accrued interest to the date of purchase.
Section 7.The Bond Fund heretofore has been created by
Ordinance No.967 in the office of the City Finance Director and
has been divided into a Principal and Interest Account and a
Reserve Account.So long as any Bonds are outstanding against
the Bond Fund,the Finance Director of the City shall set aside
and pay into the Bond Fund all ULID Assessments paid in ULID
Nos.I,2,3,4,5,6,7,8 and 9 and,out of the Revenue of the
Waterworks utility of the City,in addition to the amounts
required by Ordinance No.967 to be paid therein for the 1977
Bonds,by Ordinance No.1088 for the 1979 Bonds and Ordinance
No.1428 for the 1985 Bonds,certain fixed amounts without
regard to any fixed proportion,namely,into the Principal and
Interest Account at least.20 days prior to each interest payment
date,an amount,together with ULID Assessments paid into the
Bond Fund and other money on deposit therein,sufficient to pay
the interest payable on the Bonds on such interest payment date
and,on or before the first day of each month commencing with
the month of June,1986,1/12 of the next ensuing twelve months'
requirements for principal on the Bonds.
There shall be deposited into the Reserve Account from
Revenue of the Waterworks utility of the City and ULID Assess-
ments on or before the 20th day of May of each year,commencing
with the month of May,1987,an amount equal to 1/5 the Average
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Annual Debt Service on the Bonds until an amount equal to the
Average Annual Debt Service (the Required Reserve Amount)has
been accumulated therein by no later than May 1,1991.
The Reserve Account shall be maintained in the Required
Reserve Amount for the outstanding Outstanding Parity Bonds and
the Bonds,except for withdrawals therefrom as authorized
herein,at all times so long as any of the Bonds are outstand-
ing,PROVIDED,that when the total amount in the Bond Fund shall
equal the total amount of principal and interest for all out-
standing bonds payable out of the Bond Fund to the last maturity
thereof,no further payment need be made into the Bond Fund,and
PROVIDED, FURTHER,that the amount in such Reserve Account may
be reduced at any time prior to the redemption of all of the
Outstanding Parity Bonds to an amount not less than the average
annual debt service requirements (including the interest payable
on but excluding the principal amount of any Term Bonds of any
issue payable out of the Bond Fund)for all bonds payable out of
the Bond Fund then outstanding and,after the redemption of all
of the outstanding Outstanding Parity Bonds,the Reserve Account
may be reduced at any time to an amount not less than the
Average Annual Debt Service.
In the event that there shall be a deficiency in the Prin-
cipal and Interest Account in the Bond Fund to meet maturing
installments of either principal or interest,as the case may
be,such deficiency shall be made up from the Reserve Account by
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the withdrawal of cash therefrom for that purpose.Any defi-
ciency created in the Reserve Account by reason of any such
withdrawal shall then be made up from the Revenue of the
Waterworks utility of the City and/or ULID Assessments payable
into the Bond Fund first available after making necessary provi-
sion for the required payments into the Principal and Interest
Account.The money in the Reserve Account otherwise shall be
held intact and may be applied against the last outstanding
bonds payable out of the Bond Fund.
All money in the Bond Fund may be kept on deposit in the
official bank depository of the City or in any national bank or
may be invested and reinvested in Government Obligations or any
other legal investment redeemable at a fixed price and maturing
no later than one month prior to the next mandatory call date
for bonds subject to mandatory redemption or,if no mandatory
call is applicable,one month prior to the final maturity date
of the last outstanding bonds payable out of the Bond Fund.In
no event shall any money in the Bond Fund or any other money
reasonably expected to be used to pay principal of and/oT inter-
est on the Bonds be invested at a yield which would cause the
Bonds to be arbitrage bonds within the meaning of Section 103(c)
of the United States Internal Revenue Code,as amended,and
applicable regulations thereunder.Interest earned on any such
investment or on such bank deposit shall become a part of the
Revenue of the Waterworks Utility of the City and need not be
deposited in the Bond Fund,except that interest earned on any
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investment of money in the Principal and Interest Account for
bonds having a mandatory call provision shall be retained in the
Principal and Interest Account and used to call and redeem such
bonds.
If the City shall fail to set aside and pay into the Bond
Fund the amounts which it has obligated itself by this section
to set aside and pay therein,the owner of any Bond may bring
suit against the City to compel it to do so.
The City Council declares that in fixing the amounts to be
paid into the Bond Fund it has considered and had due regard for
Operating and Maintenance Expenses and has not set aside.into
the Bond Fund a greater amount or proportion of the Revenue of
the Waterworks utility of the City than in its judgment:will be
available over and above the Operating and Maintenance Expenses
and the debt service and reserve requirements for the presently
outstanding Outstanding Parity Bonds and Prior Lien Bonds.
Section 8.The Revenue of the Waterworks utility and ULID
Assessments are pledged to the payments required by this ordi-
nance and the Outstanding Parity Bonds and the Bonds constitute
a charge and lien upon such ULIO Assessments and Revenue of the
Waterworks utility prior and superior to all other charges and
liens whatsoever,excluding Operating and Maintenance Expenses
payable out of such revenue,except that the charge and lien
upon the Revenue of the Waterworks Utility for the Outstanding
Parity Bonds and the Bonds shall be junior to the charge and
- 21 -
lien upon such Revenue of the Waterworks utility for the out-
standing Prior Lien Bonds,and shall be on a parity with the
charge and lien upon the Revenue of the Waterworks utility and
ULID Assessments for any Future Parity Bonds.
Section 9.The City covenants with the owner of each of
the Bonds as follows:
(a)All surplus Revenue of the Waterworks
utility after payment of Operating and Maintenance
Expenses,payment of principal of and interest on the
outstanding Prior Lien Bonds and Outstanding Parity
Bonds,the Bonds and any Future Parity Bonds here-
after issued and required payments into the respec-
tive bond redemption funds and reserve accounts
therefor shall be used only for the following pur-'
poses and,after the payment and redemption of all of
the Outstanding Parity Bonds,in the following order
of priority:
(1)For purchasing necessary equipment,
making necessary repairs or replacements to the
Waterworks Utility and for other necessary
capital improvements thereto.
(2)For constructing and installing addi-
tions and improvements to and extensions of such
Utility that are economically sound.
(3)For redemption of outstanding bonds
prior to their fixed maturities or purchasing
the same in the open market for retirement only.
(b)It will at all times maintain and keep the
Waterworks Utility of the City and all additions and
improvements thereto in good repair,working order
and condition,and will at all times operate such
Waterworks Utility and the business in connection
therewith in an efficient manner and at a reasonable
cost.
(c)It will establish,maintain and collect
such rates and charges for water and sanitary sewage
disposal service so long as any Outstanding Parity
Bonds,Bonds and any Future Parity Bonds are out-
standing which will provide amounts annually at least
equal to 1.35 times the average annual debt service,
-22 -
including the principal of any Term Bonds,on the
Prior Lien Bonds,the Outstanding Parity Bonds,the
Bonds and any Future Parity Bonds hereafter issued
actually paid from such Revenue of the Waterworks
utility and not from ULID Assessments,after payment
of Operating and Maintenance Expenses (herein called
the "Coverage"Requirement").In determining the
amount of debt service subject to coverage,there
shall be deducted from the annual principal and
interest required to be paid each year an amount
equal to the percentage of the debt service for each
year on each issue of outstanding Outstanding Parity
Bonds,Bonds and any Future Parity Bonds equal to the
percentage arrived at by dividing the original total
amount of the ULID Assessments specifically pledged
to the Bond Fund in that issue by the original total
principal amount of such issue.To simplify,where
ULIDs are involved,only the debt service on that
portion of any parity bond issue not covered by ULID
Assessments shall be subject to the 35%Coverage
Requirement.
(d)It will not sell,lease,mortgage or in any
manner encumber or dispose of all the property of the
Waterworks Utility of the City unless provision is
made for payment into the Bond Fund of a sum suffi-
cient to pay the principal of and interest on all
bonds payable out of the Bond Fund at any time out-
standing,and it will not sell,lease,mortgage or in
any manner encumber or dispose of any part of the
property of such Waterworks Utility of the City that
is used,useful and material to the operation
thereof,unless provision is made for replacement
thereof,or for payment into the Bond Fund of the
total amount of Revenue received which shall not be
less than an amount which shall bear the same ratio
to the amount of outstanding bonds payable out of the
Bond Fund as the Revenue of the Waterworks available
for debt service for such outstanding bonds for the
twelve months preceding such sale,lease,encumbrance
or disposal from the portion of the Waterworks
Utility sold,leased,encumbered or disposed of bears
to the Revenue available for debt service for such
bonds from the entire Waterworks Utility for the same
period.Any such money so paid into the Bond Fund
shall be used to retire such outstanding bonds at the
earliest possible date.
(e)It will,while any of the Bonds remain
outstanding,keep proper and separate accounts and
records in which complete and separate entries shall
- 23 -
be made of all transactions relating to its
Waterworks utility,and it will furnish any subse-
quent owner or owners of the Bonds,if the Bonds
shall be owned by other than a fund of the City,at
the written request of such owner or owners,complete
operating and income statements of such Waterworks
Utility in reasonable detail covering any calendar
year,showing th~financial condition of the water
and sewer departments and compliance with the terms
and conditions of this ordinance,not more than 120
days after the close of such calendar year,and it
will grant any owner or owners of at least 25%of the
outstanding Bonds the right at all reasonable times
to inspect the entire Waterworks Utility and all
records,accounts and data of the City relating
thereto.Upon request of any owner of any of such
Bonds,it also will furnish to such owner a copy of
the most recently completed audit of the City'S
accounts by the State Auditor of Washington or such
other audit as is authorized by law in lieu thereof.
(f)It will not furnish water or sanitary
sewage disposal to any customer whatsoever free of
charge and will promptly take legal action to enforce
collection of all delinquent accounts.
(g)It will carry the types of insurance on the
properties of the Waterworks Utility of the City in
the amounts normally carried by private water and
sewer companies engaged in the operation of water and
sewerage systems,and the cost of such insurance
shall be considered a part of Operating and Mainte-
nance Expenses.If,as and when the United States of
America or some agency thereof shall provide for War
Risk Insurance,the City further agrees to take out
and maintain such insurance on all or·such portions
of such utility on which such War Risk Insurance may
be written in an amount or amounts to cover ade-
quately the value thereof.
(h)It will pay all Operating and Maintenance
Expenses and otherwise meet the obligations of the
City as herein set forth.
(i)It will not create any special fund or
funds for the payment of other revenue bonds,war-
rants or obligations,or authorize or issue any other
revenue bonds,warrants or obligations which will I
rank on a parity with or have any priority over the
payments into or the money in the Bond Fund,except
that it reserves the right for:
-24 -
"
(1)The purpose of acquiring,constructing
and installing additions and improvements to and
extensions and betterments of,acquiring neces-
sary equipment for or making necessary replace-
ments of equipment or capital improvements to
the Waterworks utility of the City;or
(2)The purpose of exchanging or purchas-
ing and retiring prior to or at their maturity
any outstanding water and sewer revenue bonds of
the City;
to issue additional and/or refunding water and sewer
revenue bonds (herein defined as "Future 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 ULID Assessments collected in any ULID
hereafter created in connection with the issuance of
such Future Parity Bonds sufficient to pay the prin-
cipal of and interest on such Future Parity Bonds,
which such payments may rank equally out of such
Revenue of the Waterworks utility of the City and
ULID Assessments collected in ULIDs Nos.1,2,3,4,
5,6,7,8 and 9 if the City complies with the same
conditions as specified in subparagraph (i)of
Section 9 of Ordinance No.967,which section by this
reference is incorporated herein and made a part
hereof,except that wi th respect to the issuance 0:£"
Future Parity Bonds,all ULID Assessments in any ULID
created in connection with the improvements to be
financed from the proceeds of such Future Parity
Bonds shall be paid into the Bond Fund,and also
except that the certificate from an independent
licensed professional engineer shall be on file
within ninety days prior to the delivery of such
Future Parity Bonds and that Net Revenue of the
Waterworks utility,adjusted as hereinafter provided
(the "Adjusted Net Revenue"),together with ULID
Assessments,will equal 1.35 times annual debt serv-
ice.In determining whether the City is able to
comply with the terms of the parity conditions,the
following adjustments may be made to the historical
Net Revenue of the Waterworks utility for any twelve
consecutive months out of the immediately preceding
24-month period:
Any rate change that has taken place and is
in effect at the time of delivery of such Future
Parity Bonds may be considered as being in
effect for the 12-month period;
-25 -
Revenue may be added for the 12-month
period from the customers to be served by any
improvements under construction at the time of
delivery of such Future Parity Bonds if such
customers are expected to be connected within
thirty.days,improvements which are to be con-
structed with the proceeds of the Future Parity
Bonds and.improvements completed and operational
during the 12-month period;and
Revenue may be added which would have been
received if customers added to the Waterworks
utility during the 12-month period were cus-
tomers for the full 12-month period.
After the delivery to the initial purchaser of
the Bonds or any Future Parity Bonds issued for
refunding purposes,all ULID Assessments pledged to
the payment of bonds refunded and defeased by the
proceeds of such refunding bonds shall be paid into
the Bond Fund.
Nothing contained in this ordinance shall pre-
vent 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 pay-
ments required to be made therefrom into the Bond
Fund and the Reserve Account therein or from pledging
the payment of utility local improvement district
assessments into the bond redemption fund created for
the payment of the principal of and interest on such
junior lien bonds as long as such utility local
improvement district assessments are levied for
improvements constructed from the proceeds of such
junior lien bonds.
Nothing herein contained shall prevent the City
from refunding all or part of the.Bonds in accordance
with the provisions of the Refunding Bond Act of the
State of Washington (Chapter 39.53 RCW)as the same
may be amended,and it is expressly provided that any
such refunding bonds so issued shall have the same
lien upon the Revenue of the Waterworks Utility of
the City and ULID Assessments as the Bonds being
refunded.
(j)It will not take or permit to be taken on
its behalf any action which would adversely affect
the exemption from federal income taxation of the
interest on the Bonds and will take or require to be
taken such acts as may reasonably be within its
-26 -
ability and as may from time to time be required
under applicable law to continue the exemption from
federal income taxation of the interest on the
Bonds.Without limiting the generality of the fore-
going,and except to the extent the investment of any
Bond proceeds is limited to a yield required to
comply with federal arbitrage regulations,the City
will spend the proceeds of the Bonds with due dili-
gence to completion of the purposes specified herein
and will not invest or make other use of the proceeds
of the Bonds or of its other money at any time during
the term of the Bonds,which if such use had been
reasonably expected at the date that the Bonds are
issued,would have caused such Bonds to be arbitrage
bonds within the meaning of Section I03(c)of the
United States Internal Revenue Code of 1954,as
amended,and applicable regulations thereunder.
In addition,if future federal laws or regula-
tions require the payment of any federal tax or
rebate or the observing of any other requirement to
maintain the exemption from federal income taxation
of the interest on the Bonds or Future Parity Bonds,
the City shall make any such payment and observe any
such requirement.If the interest on the Bonds shall
become subject to federal taxation for the reasons
set forth in paragraph 6 of this ordinance,or if
other occurrences take place as described therein,
then the City shall call for redemption at par plus
accrued interest some or all of th~Bonds as set
forth in Section 6 of this ordinance.The City's
bond counsel,however,has no responsibility to
monitor the compliance of the City with any such laws
or regulations.
It has not been notified of any listing or
proposed listing by the Internal Revenue Service to
the effect that the City is a bond issuer whose
arbitrage certifications may not be relied upon.
Section 10.The Bonds shall be printed or lithographed on
good bond paper in a form consistent with the provisions of this
ordinance and State law,shall be signed by the Mayor and City
Clerk,both of whose signatures shall be in facsimile,and a
facsimile reproduction of the seal of the City shall be printed
thereon.
-27 -
Only such Bonds as shall bear thereon a Certificate of
Authentication in the following form,manually executed by the
Bond Registrar,shall be valid or obligatory for any purpose or
entitled to the benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered City of
Marysville,Washington,Water and Sewer Revenue
Bonds,1986,described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Officer
Such Certificate of Authentication shall be conclusive evidence
that the Bonds so authenticated have been duly executed,authen-
ticated and delivered hereunder and are entitled to the benefits
of this ordinance.
In case either or both of the officers who shall have
executed the Bonds shall cease to be such officer or officers of
the City before the Bonds so signed shall have been authenti-
cated or delivered by the Bond Registrar or issued by the City,
such Bonds nevertheless may be authenticated,delivered and
issued and,upon such authentication,delivery and issue,shall
be as binding upon the City as though those whose facsimile
signatures appear on the Bonds had continued to be such officers
of the City.Any Bond also may be signed on behalf of the City
by such persons as at the actual date of execution of such Bond
shall be proper officers of the City authorized to execute Bonds
-28 -
'to
although on the original date of such Bond such persons were not
such officers of the City.
Section 11.The Bond Registrar shall keep,or cause to be
kept,at its principal corporate trust office,sufficient books
for the registration and transfer of the Bonds which shall at
all times be open to inspection by the City.
The Bond Registrar shall be responsible for its representa-
tions contained in the Bond Registrar's Certificate of Authen-
tication on the Bonds.The Bond Registrar may become the owner
of Bonds with the same rights it would have if it were not the
Bond Registrar and,to the extent permitted by law,may act as
depository for and permit any of its officers or directors to
act as members of,or in any other capacity with respect ko,any
committee formed to protect the rights of Bond owners.
Section 12.The Bonds shall be negotiable instruments to
the extent provided by RCW 62A.8-102 and 62A.8-105.
Section 13.In the event the City shall issue advance
refunding bonds pursuant to the laws of the State of Washington,
or have money available from any other lawful source,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 pay-
able and to refund such then outstanding Bonds and to pay the
costs of refunding,and shall have irrevocably set aside in a
special fund for and pledged to such payment and refunding,
money and/or direct obligations of the United States of America
or other legal investments sufficient in amount,together with
-29 -
known earned income from the investment thereof,to make such
payments and to accomplish the refunding as scheduled (herein-
after called the "trust account")and shall make irrevocable
provision for redemption of such Bonds,then in that case all
right and interest of the owners of the Bonds to be so retired
or refunded (hereinafter collectively called the "defeased
Bonds")in the covenants of this ordinante,in the Revenue of
the Waterworks utility of the City,funds and accounts,includ-
ing ULID Assessments,obligated to the payment of such Bonds
thereafter shall cease and become void,except such owners shall
have the right to receive payment of the principal of and inter-
est on the defeased Bonds from the trust account and,in the
event the funds in the trust account are not available for such
payment,shall have the residual right to receive payment of the
principal of and interest on the defeased Bonds from the Revenue
of the Waterworks utility of the City and ULID Assessments
without any priority of lien or charge against that Revenue and
Assessments or covenants with respect thereto except to be paid
therefrom.After the establishing and full funding of such
trust account,the City may then apply any money in any other
fund or account established for the payment or redemption of the
defeased Bonds to any lawful purposes as it shall determine,
subject only to the rights of the owners or holders of any other
bonds then outstanding.
In the event that the refunding plan proVides that the
Bonds being refunded or the refunding bonds to be issued be
-30 -
(
,f
secured by cash and/or Government Obligations or other legal
investments pending the prior redemption of those bonds being
refunded and if such refunding plan also provides that certain
cash and/or Government Obligations or other legal investments
are pledged irrevocably for the prior redemption of those Bonds
included in ~he refunding plan,then only the debt service on
the Bonds which are not defeased Bonds and the refunding bonds,
the payment of which is not so secured by the refunding plan,
shall be included in the computation of coverage for issuance of
Future Parity Bonds and the annual computation of coverage for
determining compliance with the rate covenants.
Section 14.Harper,McLean &Company of Seattle,
Washington,has presented a purchase contract dated March 24,
1986 (the "Purchase Contract"),to the City offering to purchase
the Bonds under the terms and conditions provided in the Pur-
chase Contract,which written Purchase Contract is on file'with
the City Clerk and is incorporated herein by this reference.
The City Council,finding that entering into the Purchase Con-
tract is in the City's best interest,accepts such offer and
authorizes the execution of the Purchase Contract by City
officials.
The Bonds will be printed at City expense and will be
delivered to the purchaser in accordance with the Purchase
Contract,with the approving legal opinion of Roberts &
Shefelman,municipal bond counsel of Seattle,Washington,rela-
tive to the issuance of the Bonds,printed on each Bond.Bond
-31 -
:::.
counsel shall not be required to review or express any opinion
concerning the completeness or accuracy of any official state-
ment,offering circular or other sales material issued or used
in connection with the Bonds and bond counsel's opinion shall so
state.
The proper City officials are authorized and directed to do
everything necessary for the.prompt delivery of the Bonds to the
purchaser and for the proper application and use of the proceeds
of the sale thereof.
Section 15.The accrued interest received from the pur-
chaser of the Bonds shall be deposited in the Principal and
Interest Account of the Bond Fund.An amount of the principal
proceeds of the Bonds sufficient to pay and redeem the 1985
Notes shall be deposited in the Water and Sewer Revenue Bond
Anticipation Note Fund,1985,and the balance shall be deposited
in the City's Utility Construction Fund and used for the addi-
tional purpose of the Bonds and to pay the costs of issuance and
sale of the Bonds.Pending the expenditure of such principal
proceeds out of the Utility Construction Fund,the money in such
fund may be invested in any legal investment and the investment
income may be retained in such fund and used for the purposes of
such fund.
Section 16.Pending the printing,execution and delivery
to the purchaser of the definitive Bonds,the City may cause to
be executed and delivered to such purchaser a single temporary
Bond in the principal amount of $3,260,000.Such temporary Bond
- 32 -
>.,~..,,.
shall bear the same date of issuance,interest rates,principal
payment dates and terms and covenants of the definitive Bonds,
and shall be issued as a fully registered bond in the name of
such purchaser,and shall be in such form as acceptable to such
purchaser.Such temporary Bond shall be exchanged for the
definitive Bonds as soon as the same are printed,executed and
available for delivery.
Section 17.This ordinance shall take 'effect and be in
force five days after its passage,approval and legal
publication.
PASSED by the City Council at a regular open public meeting
thereof and APPROVED by the Mayor this 24th day of March,1986.
CITY OF MARYSVILLE,WASHINGTON
By
ATTEST:
~~
FORM APPROVED:
0726m
-33 -
,..'".'
FOUNDED lB92
H~:p'er,.McLean~Camp-any
INVESTMENT SECURITIES
LOGAN BUILDING.SUITE 730
500 UNION STREET
P.O.BOX 21945
SEATTLE.WASHINGTON 9B111
PHONE (206)62B·3951
March 24,1986
Mayor and City Council
City of Marysville
514 Delta Avenue
Marysville,Washington 98270
Honorable Mayor and City Council:
Harper,McLean and Company is pleased to make this offer to purchase
$3,260,000 par value City of Marysville,Washington Water and Sewer Revenue
Bonds,1986,dated April 1,1986,and maturing June 1 as shown below,at a
purchase price of 97.2%of par value plus accrued interest to the date of
delivery.The Bonds are to be in denominations of $5,000 each or integral
multiples thereof.
The Bonds are to bear interest at the following rates for the following
maturity years:
Maturity
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Amount
$30,000
30,000
30,000
40,000
40,000
45,000
45,000
50,000
50,000
o
60,000
65,000
65,000
110,000
375,000
385,000
405,000
440,000
480,000
515,000
Interest
Rate
5.757-
6.00
6.25
6.50
6.70
6.90
7.00
7.10
7.20
0.00
7.40
7.50
7.60
7.70
7.80
7.90
8.00
8.10
8.15
8.20
The City will reserve the right to redeem the Bonds maturing June 1,1997
through June 1,2006,at par plus accrued interest the date of redemption i?
inverse order of maturity,commencing June 1,1996.
....\
Mayor and City Council
City of Marysville
Page Two
This offer to purchase is expressly subject to the following conditions:
1.That the Bonds shall be accompanied by the unqualified approving
legal opinion of Roberts and Shefelman,Bond Counsel of Seattle,
Washington.Such opinion shall state that interest is exempt from
all present federal income taxes under existing statutes,
regulations,rulings and court decisions.
2.That an executed non-arbitrage opinion will be available at
settlement.
3.That a non-litigation certificate be available at settlement.
4.That the City will retain Hammond Collier &Wade-Livingston
Associates,Inc.,professional engineers,to prepare a parity
certificate,as required by existing bond covenants for the issuance
of parity bonds.Such certificate shall be delivered to Harper,
McLean and Company at settlement.
5.That the City will deliver the Bonds to the offices of Harper,McLean
and Company on or before April 10,1986.
This offer is made for immediate acceptance or rejection.
ACCEPTED:
By:
Date:1+~=~~=-?-l.,I,.j~__
ATTESTED:
~~~~~
Interest start date:04/01/86
First interest payment:12/01/86
DEBT SERVICE SCHEDULE
=================================
".
PEnIOD
END It\IG
1 06/01/87
2 06/01/88
c-06/01/89-
4-06/01/90
5 06/01/91
6 06/01/92
7 06/01/93
8 06/01/94
r-;06/01/957
10 06/01/96
11 06/01/97
12 06/01/98
13 06/01/99
14-06/01/00
15 06/01/01
16 06/01/02
17 06/01/03
18 06/01/04
1 '.:;'0(.:;/01/05
20 06/01/06
TOTAL
PRINCIPAL
30~000.00
30~000.00
30~000.00
40~000.60
40,000.00
45,000.00
45~000.00
50~000.00
50,000.00
0.00
60,000.00
65~000.00
65,000.00
110,000.00
375~000.00
385~000.00
405~000.00
440~000.00
480,000.00
515,000.00
================
3,260,000.00
(4NhIUr;L
RfHE
5.750
6.000
6.250
6.500
6.700
6.900
7.000
7.100
7.200
0.000
7.400
7.500
7.600
7.700
7.800
7.900
8.000
8.100
8.150
8.200
ItHEr':;:EST
298~509.17
254~140.00
252,340.00
250~465.00
247~865.00
245,185.00
242~080.00
238~930.00
235,380.00
231,780.00
231,780.00
227~340.00
222,465.00
217,525.00
209,055.00
179,805.00
149,390.00
116~990.00
81~350.00
42~230.00
4,174,604.17
TOTAL
328,509.17
284~140.00
282~340.00
290~465.00
287~865.00
290,185.00
287~080.00
288~930.00
285~380.00
231~780.00
291,780.00
292,340.00
287,465.00
327,525~OO
584,055.00
564~805.00
554,390.00
556~990.00
561~350.00
557~230.00
7,'1-34,604.17
Interest start date:04/01/86
First interest payment:12/01/86
DEBT SERVICE SCHEDULE
'""i
•.
1
:2
..~
4
5
h
7
8
9
10
:L 1
12
13
14
1 <:-....1
16
17
18
19
20
21
PERIOD
ENDING
12/31/86
12/31/87
12/31/88
12/31/89
12/31/90
12/31/91
12/31/92
12/31/93
12/31/94
12/31/95
12/31/96
12/31/97
12/31/98
12/31/99
12/31/00
12/31/01
12/31/02
12/31/03
12/31/04
12/31/05
12/31/06
PRINCIPAL
0.00
30~000.00
30~000.00
30~000.00
40~000.00
40,000.00
45,000.00
45,000.00
50,000.00
50,000.00
0.00
60,000.00
65,000.00
65,000.00
110,000.00
375,000.00
385,000.00
405,000.00
440,000.00
480,000.00
515,000.00
(\NNUAL
R?HE ItHEF:EST
170,576.67
255~()02.5()
253,240.00
251~402.50
249,165.00
246~525.0Q
243,632.50
240,505.00
237,155nOO
233,580.00
231,780.00
229,560.00
224,902.50
219,995.00
213,290.00
194,430.00
164,597.50
133,190.00
99,170.00
61,790.00
21,.115.00
__________.....__F-~__
TOT{-'lL.
170,576.67
285,002.50
283,240.00
281,402.50
289,165.00
286,525.00
288,632.50
285,505.00
287,155.00
283,580.00
231,780.00
289,560.00
289,902.50
284,995.00
323,290.00
569,430.00
549,597.50
538,190.00
539,170.00
541,790.00
536,115.00
..
CITY OF MARYSVILLE
PROJECTED FLOW OF FUNDS
Less:Debt Service.Debt Service Total
Calender Net Revenuell)Requirements Plus:ULID Total Requirements 2nd li en Projected
Year Available For on Outstanding Assessment Available For on Outstanding This Issue Debt Service Debt Service
Ending Debt Service 1st lien Bonds Payments Debt Service 2nd Lien Bonds Principa!l6-!)Interest Requirements Coverage
1966 $1,144,786 $120,996 $419,803 $1,443,593 $612,165 $170,577 $782,742 1.84
1987 $1,144,786 $123,209 $402,994 st,424,571 $601,843 $30,000 5255,003 5886,846 Lbl
1988 $1,144,786 $125,119 $386,184 !1,405,851 $590,290 530,000 5253,240 5873,530 1.61
1989 $1,144,786 $126,881 $369,375 $1,387,280 $578,020 $30,000 5251,403 $859,423 Lbl
1990 $1,144,786 $123,456 $352,564 $\,373,894 $564,465 $40,000 5249,165 5853,630 1.61
1991 $1,144,786 $\24,956 $335,755 $\,355,585 5545,105 140,000 $246,525 $831,630 Lb3
1992 $1,144,786 $121,203 $318,945 $1,342,468 $545,688 545,000 $243,633 $834,321 1.61
1993 SI,144,786 $127,422 S302,136 $1,319,500 $543,318 $45,000 5240,505 5828,823 1.59
1994 $1,144,786 $122,578 5285,326 st,307,534 5531,798 $50,000 $237,155 $818,953 LbO
1995 $1,144,786 $122,469 $268,516 $\,290,833 S507,878 550,000 $233,580 $791,458 1.63
1996 SI,144,786 Sl22,IOI S215,140 $1,237,825 $602,472 50 $231,780 $834,252 1.48
1997 51,144,786 $121,472 5201,438 $1,224,752 H69,942 $60,000 5229,560 $759,502 1.61
1998 $1,144,786 595,583 5187,737 $1,236,940 5487,090 565,000 $224,903 5776,993 I.59
1999 $1,144,786 525,734 $174,035 $1,293,087 $510,840 $65,000 $219,995 $795,835 1.62
2000 $1,144,786 SO $\03,460 SI,248,240 $393,260 $110,000 5213,290 5716,550 1.74
2001 $1,144,786 SO S94,594 SI,239,380 521,760 5375,000 $194,430 5591,190 2.10
2002 $1,144,786 SO 516,732 st,161,518 50 5385,000 $164,598 $549,598 2.11
2003 51,144,786 $0 $15,288 $1,160,074 50 $405,000 $133,190 5538,190 2.16
2004 $1,144,786 SO $\3,845 SI,158,631 SO 5440,000 599,170 $539,170 2.15
2005 51,144,786 50 SO u,144,786 SO H80,000 561,790 5541,790 2.11
2006 $1,144,786 SO $0 51,144,786 50 55i5,000 $21,115 $536,115 2.14
------------------------------------------------------------ ----------------------------------------------------------
S24,040,506 $1,603,239 $4,463,867 526,901,134 $8,105,934 $3,260,000 $4,004,030 $15,540,541