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HomeMy WebLinkAboutO-1621 - LID No. 63, bond issuance (Special)CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO./0"2..\ AN ORDINANCE of the City of Marysville,Washington, relating to Local Improvement District No.63; authorizing the issuance and sale of local improve- ment district bond anticipation notes in Local Improvement District No.63 pending the receipt of the proceeds of the local improvement district bonds authorized to be issued by Ordinance No.1602;and providing for the sale and delivery of those notes to Harper,McLean &Company,Washington. WHEREAS,by Ordinance No.1602 passed by the City Council on April 11,1988,the City ordered the construction and instal- lation of certain improvements on a portion of 64th Street Northeast within the City pursuant to Resolution No.1299 and, after a public hearing thereon,established Local Improvement District No.63 and provided for the issuance and sale of local improvement district warrants or other short-term obligations; and WHEREAS,the City Council deems it to be in the best interest of the City that the City borrow money and issue short-term obligation pursuant to Chapter 39.50 RCW in the form of local improvement district bond anticipation notes for the purpose of providing the funds with which to pay part of the cost of constructing the improvements in Local Improvement District No.63 pending the receipt of the proceeds of the issuance and sale of the bonds authorized by Ordinance No.1602; NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,DO ORDAIN,as follows: Section 1.The total estimated cost and expense of the improvements ordered to be carried out in Local Improvement District No.63 (the "District")by Ordinance No.1602 is $781,000 and approximately $675,000 of that expense is antici- pated to be assessed against the specially benefited properties in the District.Local improvement district bond anticipation notes of the District (the "Notes")shall be issued in the aggregate principal amount of $675,000 to pay part of the cost and expense of constructing the improvements within the District and pay the administrative costs of issuing and selling the Notes.The Notes shall be designated Local Improvement District No.63 Bond Anticipation Notes,and shall be numbered from 1 to 9,inclusive.The Notes shall be dated August 1,1988;shall mature on April 14,1989;and shall bear interest at the rate of 5.875%per annum,computed on the basis of a 360-day year of twelve 30-day months,payable at maturity.Notes Nos.1 through 3,inclusive,shall be in the denomination of $25,000 each and Notes Nos.4 through 9,inclusive,shall be in the denomination of $100,000 each.The City Council declares and finds that the fixing of the above interest rate is in the best interest of the City. Section 2.The Local Improvement Fund,District No.63 (the "Note Fund")has been created by Ordinance No.1602.The principal proceeds received from the issuance and sale of the - 2 - Notes shall be deposited in that fund and used to pay the costs of carrying out the improvements in the District.Until needed for that purpose,the City may invest the principal proceeds temporarily in any legal investment,and the investment earnings may be retained in that fund. Section 3.The Notes,both principal and interest,shall be payable solely from the Note Fund from the proceeds of local improvement district bonds authorized to be issued by Ordinance No.1602 or other short-term obligations to be deposited in the Note Fund and/or prepaid special benefit assessments deposited in that fund,other money legally available for that purpose, and from the Local Improvement Guaranty Fund of the City,and shall be payable in lawful money of the united States of America.The Notes shall be payable on presentation and surrender of the Notes at the principal office of either of the fiscal agencies of the State of Washington in Seattle,Washing- ton,or New York,New York,at the option of the holders. Section 4.The Notes shall be issued without the right or option of the City to redeem the Notes prior to their stated maturity date. The City reserves the right and option to purchase any or all of the Notes in the open market at any time at a price not in excess of par plus accrued interest to the date of purchase. All Notes purchased under this section shall be cancelled. Section 5.If any Note is not redeemed when properly presented at its maturity date,the City shall be obligated to - 3 - pay interest on that Note at the same rate provided in the Note from and after its maturity or call date until that Note,both principal and interest,is paid in full or until sufficient money for its payment in full is on deposit in the Note Fund and the Note has been called for payment. Section 6.The Notes shall be typed,printed or litho- graphed 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,one of whose signatures shall be manual and one in facsimile,and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. Section 7.The City covenants that it will take all actions necessary to prevent interest on the Notes from being included in gross income for federal income tax purposes,and it will neither take any action nor make or permit any use of proceeds of the Notes or other funds of the City treated as proceeds of the Notes at any time during the term of the Notes which will cause interest on the Notes to be included in gross income for federal income tax purposes.The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a note issuer whose arbitrage certifications may not be relied upon. Section 8.The City finds and declares that (a)it is a duly organized and existing governmental unit of the State of Washington and has general taxing power;(b)no Note which is part of this issue of Notes is a "private activity bond"within -4 - the meaning of Section 141 of the United States Internal Revenue Code of 1986,as amended (the "Code");(c)at least 95%of the net proceeds of the Notes will be used for local governmental activities of the City (or of a governmental unit the juris- diction of which is entirely within the jurisdiction of the City);(d)the aggregate face amount of all tax-exempt obli- gations (other than private activity bonds)issued by the City and all entities subordinate to the City (including any entity which the City controls,which derives its authority to issue tax-exempt obligations from the City or which issues tax-exempt obligations on behalf of the City)during the calendar year in which the Notes are issued is not reasonably expected to exceed $5,000,000;and (e)the amount of tax-exempt obligations, including the Notes,designated by the City as "qualified tax-exempt obligations"for the purposes of Section 265(b)(3)of the Code during the calendar year in which the Notes are issued does not exceed $10,000,000.The City therefore certifies that the Notes are eligible for the arbitrage rebate exemption under Section l48(f)(4)(C)of the Code and designates the Notes as "qualified tax-exempt obligations"for the purposes of Section 265(b)(3)of the Code. Section 9.Harper,McLean &Company of Seattle,Washing- ton,has submitted an offer to purchase the Notes at a price of $99.525 per each $100 par value,the City to furnish the Notes - 5 - and the approving legal opinion of Foster Pepper &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 Notes,and bond counsel's opinion shall so state.The City Council finds that it is in the best interest of the City that such offer be ac- cepted and accepts the same.The Notes,therefore,immediately upon their execution,shall be delivered to the purchaser in Seattle,Washington,upon payment therefor in accordance with that offer. PASSED by the City Council and APPROVED by the Mayor of the City of Marysville,Washington,at a regular open public meeting thereof,this 11th day of July,1988. ATTEST: APPROVED AS TO FORM: 1 45 3 m - 6 -