HomeMy WebLinkAboutO-1757 - LID No. 63 (Special)'v
CITY OF MARYSVILLE,WASHINGTON
ORD INANCE NO.J 757
AN ORDINANCE relating to Local Improvement
District No.63;fixing the amount,form,date,
interest rates,maturity and denominations of Local
Improvement District No.63 Bonds;providing for the
sale and delivery thereof to Security Pacific
Securities Inc.in Seattle,Washington;and fixing
the interest rate on Local Improvement District
No.63 assessment installments.
THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,DO
ORDAIN as follows:
Section 1.Description of Bonds.The total amount of the
assessment roll in Local Improvement District No.63 in the City
of Marysville,Washington (the "City"),created under Ordinance
No.1602,passed April 11,1988,as amended by Ordinance
No.1680,passed March 27,1989,was $862,633.47.The 30-day
period for making cash payments of assessments without interest
in the District expired on January 6,1990,and the total amount
of assessments paid in cash was $196,626.57,leaving a balance
of assessments unpaid on the assessment roll in the amount of
$666,006.90.Local Improvement District No.63 Bonds (the
"Bonds"),therefore,shall be issued in the total principal
amount of $666,006.90.The Bonds shall be dated February 15,
1990,shall mature on February 15,2007,and shall be numbered
from 1 to 133,inclusive,in the manner and with any additional
designation as the Bond Registrar (collectively,the fiscal
,,-,.
agencies of the State of Washington located in seattle,
Washington,and New York,New York)deems necessary for the
purpose of identification.Bond No.1 shall be in the
denomination of $6,006.90 and Bonds Nos.2 to 133,inclusive,
shall be in the denomination of $5,000.00 each.Interest shall
be computed on the basis of a 360-day year of twelve 30-day
months.The Bonds shall bear interest at the rates set forth
below,payable annually beginning February 15,1991:
Bond Numbers
(Inclusive)
1 to 9
10 to 18
19 to 28
29 to 38
39 to 47
48 to 57
58 to 66
67 to 76
77 to 85
86 to 95
96 to 105
106 to 114
115 to 124
125 to 133
Amounts
$46,006.90
45,000.00
50,000.00
50,000.00
45,000.00
50,000.00
45,000.00
50,000.00
45,000.00
50,000.00
50,000.00
45,000.00
50,000.00
45,000.00
Interest
Rates
6.10%
6.20
6.30
6.40
6.50
6.60
6.70
6.75
6.80
6.90
7.00
7.10
7.15
7.20
Section 2.Registration and Transfer of Bonds.The Bonds
shall be issued only in registered form as to both principal and
interest and recorded on books or records maintained by the Bond
Registrar (the "Bond Register").The Bond Register shall
contain the name and mailing address of the owner of each Bond
and the principal amount and number of each of the Bonds held by
each owner.
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Bonds may be transferred only if endorsed in the manner
provided thereon and surrendered to the Bond Registrar.The
transfer of a Bond shall be by the Bond Registrar's receiving
the Bond to be transferred,cancelling it and issuing a new
certificate in the form of the Bonds to the transferee after
registering the name and address of the transferee on the Bond
Register.The new certificate shall bear the same Bond number
as the transferred Bond but may have a different inventory
reference number or control number.Any transfer shall be
wi thout cost to the owner or transferee.The Bond Registrar
shall not be obligated to transfer any Bond during the fifteen
days preceding any principal payment or redemption date.
Section 3.Payment of Bonds.Both principal of and
interest on the Bonds shall be payable solely out of the Local
Improvement Fund,District No.63 (the "Bond Fund"),and from
the Local Improvement Guaranty Fund of the City,and shall be
payable in lawful money of the United States of America.
Interest on the Bonds shall be paid by checks or drafts mailed
on the interest payment date to the registered owners at the
addresses appearing on the Bond Register on the last business
day of the month preceding the interest payment date.Principal
of the Bonds shall be payable on presentation and surrender of
the Bonds by the registered owners at either of the principal
offices of the Bond Registrar at the option of the owners.
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Section 4.Optional Redemption of Bonds.The City
reserves the right and option to redeem the Bonds prior to their
stated maturity date on any interest payment date,in numerical
order,lowest numbers first,at par plus accrued interest to the
date fixed for redemption,whenever there is sufficient money in
the Bond Fund to pay the Bonds so called and all earlier
numbered Bonds over and above the amount required for the
payment of the interest on all unpaid Bonds.
All Bonds redeemed under this section shall be cancelled.
Section 5.Notice of Redemption.The City shall cause
notice of any intended redemption of the Bonds to be given not
less than 15 nor more than 30 days prior to the date fixed for
redemption by first class mail,postage prepaid,to the
registered owner of any Bond to be redeemed at the address
appearing on the Bond Register at the time the Bond Registrar
prepares the notice,and the requirements of this sentence shall
be deemed to have been fulfilled when notice has been mailed as
so provided,whether or not it is actually received by the owner
of.any Bond.Interest on Bonds called for redemption shall
cease to accrue on the date fixed for redemption unless the Bond
or Bonds so called are not redeemed when presented pursuant to
the call.
Section 6.Failure to Redeem Bonds.If any Bond is not
redeemed when properly presented at its maturity or call date,
the City shall be obligated to pay interest on that Bond at the
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same rate provided in the Bond from and after its maturity or
call date until that Bond,both principal and interest,is paid
in full or until sufficient money for its payment in full is on
deposit in the Bond Fund,and the Bond has been called for
payment by giving notice of that call to the registered owner of
that Bond.
Section 7.Form and Execution of Bonds.The Bonds shall
be printed,lithographed or typed on good bond paper in a form
consistent with the provisions of this ordinance and State law,
shall be signed by the Mayor and the City Clerk,either or both
of whose signatures shall be manual or in facsimile,and the
seal of the City or a facsimile reproduction thereof shall be
impressed or printed thereon.
Only Bonds bearing 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,Local Improvement District
No. 63 Bonds described in the Bond Ordinance.
Washington State Fiscal Agency
Bond Registrar
Authorized Officer
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The authorized signing of a Certificate of Authentication shall
be conclusive evidence that the Bonds so authenticated have been
dUly executed,authenticated and delivered and are entitled to
the benefits of this ordinance.
If any officer whose facsimile signature appears on the
Bonds ceases to be an officer of the City authorized to sign
bonds before the Bonds bearing his or her facsimile signature
are authenticated or delivered by the Bond Registrar or issued
by the City,those Bonds nevertheless may be authenticated,
delivered and issued and,when authenticated,delivered and
issued,shall be as binding on the City as though that person
had continued to be an officer of the City authorized to sign
bonds.Any Bond also may be signed on behalf of the City by any
person who,on the actual date of signing of the Bond,is an
officer of the City authorized to sign bonds,although he or she
did not hold the required office on the date of issuance of the
Bonds.
Section 8.Bond Registrar.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 is authorized,on behalf of the City,to
authenticate and deliver Bonds transferred in accordance with
the provisions of the Bonds and this ordinance,to serve as the
City's paying agent for the Bonds and to carry out all of the
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Bond Registrar's powers and duties under this ordinance and
Ordinance No.1405 establishing a system of registration for the
City's bonds and obligations.
The Bond Registrar shall be responsible for its
representations contained in the Registrar's Certificate of
Authentication 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 to,any
committee formed to protect the rights of Bond owners.
Section 9.Preservation of Tax Exemption for Interest on
Bonds.The City covenants that it will take all actions
necessary to prevent interest on the Bonds 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 Bonds or other funds of the City treated as proceeds of
the Bonds at any time during the term of the Bonds which will
cause interest on the Bonds 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 bond issuer whose
arbitrage certifications may not be relied upon.
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Section 10.Small Governmental Issuer Arbitrage Rebate
Exemption and Designation of Bonds as Qualified Tax-Exempt
Obligations.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 Bond which is
part of this issue of Bonds is a "private activity bond"within
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 Bonds will be used for local governmental
activities of the City (or of a governmental unit the
jurisdiction of which is entirely within the jurisdiction of the
City);(d)the aggregate face amount of all tax-exempt
obligations (other than private activity bonds)issued by the
Ci ty 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 Bonds are issued is not reasonably
expected to exceed $5,000,000;and (e)the amount of tax-exempt
obligations,including the Bonds,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
Bonds are issued does not exceed $10,000,000.The City
therefore certifies that the Bonds are eligible for the
arbitrage rebate exemption under Section 148(f)(4)(C)of the
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Code and designates the Bonds as "qualified tax-exempt
obligations"for the purposes of Section 265(b)(3)of the Code.
Section 11.Bonds Negotiable.The Bonds shall be
negotiable instruments to the extent provided by RCW 62A.8-102
and 62A.8-105.
Section 12.Deposit of Bond Proceeds.The proceeds of the
Bonds shall be deposited as follows:$44,007 shall be deposited
in the Local Improvement Guaranty Fund of the City and the
balance in the Local Improvement Fund,District No.63,to pay
the cost of redeeming the City's outstanding Local Improvement
District No.63 Bond Anticipation Notes,unpaid costs of
constructing the improvements in Local Improvement District
No.63 and the costs of issuance and sale of the Bonds.
Section 13.Approval of Bond Purchase Contract.Security
Pacific Securities Inc.of Seattle,Washington (the
"Purchaser"),has presented a purchase contract (the "Bond
Purchase Contract")to the City offering to purchase the Bonds
under the terms and conditions provided in the Bond Purchase
Contract,which written Bond Purchase Contract is on file with
the City Clerk and is incorporated herein by this reference.
The City Council finds that entering into the Bond Purchase
Contract is in the City's best interest and therefore accepts
the offer contained therein and authorizes its execution by City
officials.
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The Bonds will be printed at City expense and will be
delivered to the Purchaser in accordance with the Bond Purchase
Contract,with the approving legal opinion of Foster Pepper &
Shefelman,municipal bond counsel of Seattle,Washington,
regarding the Bonds printed on each Bond.Bond counsel shall
not be required to review and shall express no opinion
concerning the completeness or accuracy of any official
statement,offering circular or other sales material issued or
used in connection with the Bonds,and bond counsel's opinion
shall so state.
The City Counci I has been provided with copies of a
preliminary official statement dated January 8,1990 (the
"Preliminary Official Statement"),prepared in connection with
the sale of the Bonds.For the sole purpose of the Purchaser's
compliance with Securities and Exchange Commission Rule
15c2-12(b)(l),the City "deems final"that Preliminary Official
Statement as of its date,except for the omission of information
as to offering prices,interest rates,selling compensation,
aggregate principal amount,principal amount per maturity,
delivery dates,ratings and other terms of the Bonds dependent
on such matters.
The proper City officials are authorized and directed to do
everything necessary for the prompt delivery of the Bonds to the
Purchaser,including without limitation the execution of the
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Official Statement on behalf of the City,and for the proper
application and use of the proceeds of the sale thereof.
Section 14.Interest Rate on Assessments.The interest
rate on the installments and delinquent payments of the special
assessments in Local Improvement District No.63 is revised and
fixed at the rate of 7.4%per annum.
Section 15.Effective Date.This ordinance shall take
effect from and after its passage and five days following its
publication as provided by law.
PASSED by the City Council and APPROVED by the Mayor of the
City of Marysville,Washington,at a regular meeting on the
22nd day of January,1990.
ATTEST:
~m~JCitYClk
APPROVED AS TO FORM:
MLC-419*
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Security
Pacific
Securities
January 22,1990
Mayor and City council
City of Marysville
514 Delta
Marysville,Washington 98270
Re:Purchase of $666,006.90 city of Marysville
LID No.63 Bonds,1990
Security Pacific Bank Tower
PostOffice Box 3%6'(Tl9-6)
Seattle.Washingron98124.-3%6
Honorable Mayor and Members of the city council:
security Pacific securities is pleased to present this offer
to purchase $666,006.90,City of Marysville LID No.63 bonds
at a price of $97.50 per $100.00 par value (97.5%of par).
The Bonds are to be dated February 15,1990 and due February
15,2007 with interest payable annually on February 15
beginning February 15,1991 at the following interest rates
for the following Bond numbers:
1-9
10-18
19-28
29-38
39-47
48-57
58-66
67-7.6
77-85
86-95
96-105
106-114
115-124
125-133
6.10%
6.20
6.30
6.40
6.50
6.60
6.70
6.75
6.80
6.90
7.00
7.10
7.15
7.20
The City reserves the right to redeem the Bonds in advance
of their maturity with 30 days written notice on any
interest payment date,at par plus accrued interest to the
date of redemption.
This offer is sUbject to immediate acceptance or rejection
by the city Council at the City council meeting held on this
day,January 22,1990,and is sUbject to the following:
1.The tax-exempt approving legal opinion of Foster,Pepper
and Shefelman,Seattle,Washington be printed on the
bonds and be available at settlement.
~kmh..:r SlPC
Mayor and City council
January 22,1990
Page #2
2.Printed bonds acceptable to Security Pacific Securities,
Inc.will be available at settlement.
3.A non-arbitrage opinion and no-litigation certificate
and an official statement certificate will be signed by
the appropriate City official(s)and shall be available
at settlement.
4.The city shall pay for the costs of bond counsel,its
own legal counsel,Bond printing and registration,and
its own costs related to the delivery of the Bond.
\
5.Settlement shall occur on February 15,1990.
Steve Gaidos,Vice President
Security Pacific Securities,Inc.
Accepted:
City ~rsv.ille
by:~A~...,Mayor
Date:1-'2-2.~10
~~;~£?O~~~FinanceDirector
City of Marysville
Local Improvement District No.63
comparable Issue and Interest Rate Analysis
Current Bond Buyer Index (1--18-90)
Bond Buyer Index History 19~
High 7.14
Low 7.03
7.14
19.!l.2-
7.72
6.86
1988
7.97
7.33
Treasury Yields (1--~-90)
Prime Rate =10.00 %
Week of__l_---.1L-~
comparable Municipal Issues
Maturity
(Years)
_1_
_5_
10
aa,
Yields
7.95
8.172
8.26
8.32
Yields
Date Issuer Size Rating lyr Syr 10yr lSyr
1-4-90 Pt of Walla Walla
Rev.3,650M NR 6.80 7.25 7.50
1-10-90 Seward.Ak.COP 875M NR 6.25 6.60 6.95 7.35
1-16-90 Okanogan &Chelan Cos.
SD #122-70J-Pateros 840M NR 6.10 6.50 6.95
Average interest rate for this issue =
Net Interest Cost for this issue =
6.876
7.209
FR9620 <Index>
FR9620
RANGE
PERIOD
HI H
LOW
7.72 ON
6.86 ON
AVG
MED
7.27
7.27
SiD DEV
ANN VOL
0.23
8.64
r-;--;----:----:----:---;--;--:---"--;---;--;----;---;---;----,8.00
••_.~-••• • ' •.,;-....-.-__••'.__ ._4 _•_.'...• .-...j __•._........._. . . ..... . . . . .. .. . .. ..
•.•:•••••.•.•.•••.•••••.:.•:••..••·..f.~•••i.·
..,.,.,. .. .....---,"-."-;-","_..;~.-."-.;--.-.--;---..---_---'.-'."".----
7.60
7.20
6.80
6.40
L...._"'-_"'-_-'-_-'-_-'-__"'-_"'-......:.........:..._-'-_-'-_"'-_...:...._-'-_-'----'6.00
25HOU8823DEC 27JAN8924FEB 24MAR 28APR 26MAY23JUH-2BJlL ZSAUG:22SE?270CT 24HOlJ 22DEC
-,..,-~-_._-~---_._._.---_._----_._..--
X2nny OraK2 770-4120 Ai.1 OAiLY "ATRIX
CLO~E:tli/19/9G
II
I
Ir-
I
I 7:14 Last rr,ins;6;18 JJ
i RiHif:iE OF YIELl}ClJWiE SCALES
'OELP~IS HANOVER CORPORArrON
INDEX 100 98 96
Aaa Ai
94 92 90 M Sb-00-
A Baa
----------------------------------~---------------------------------1au;5"7@ 5.80 5~99 6,,00 6.10 6.20 6.30 6.5%.'i J.
i'192 5.30 5,,90 6.00 6.i0 L?0 6 ~~6.4ii b.b~·"''"1:193 5.9tJ 6.9~}6 z 1~6.20 6.3')6.4~.5.50 6.7f1
1?94 r..,0 ....6.05 6 • j :,6z2:'6.35 ,~.4~6"t,~s.zs.'-',,·i ..:
199-:3 6,,110 6.10 6.2~6"3;}!L40 ,5,,:5~},'':'6 .,i3@'J."O.....
-----------------------------------~--------------------------------
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1rr:
i178
6.10
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6.6~)
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6~9~
6,,9~7 ~..:i.,•--i~~
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------------------------~-------------------------------------------
--7~_:.·'...-..,..---t-~"=-t ...~.._rf'-:3i~3~_____&_::-i .~".j"_::('=-nn1d 8r-d"~7":":T;-~}-4~"7~~.Ai z:;;Ai~';';;~Ti_:f-~i---,-__,-~-
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2flH 7 t.8~i c ~}/tH)/t ,.J,/-"1:".,4~l ,,6~7 2%;·'0 ,"...;...;,··20~8 6 '.>..:6 '?5 ?0S 7 •--s 25 ..,4~7 _:!:..,85·:::,,J.··s:,J I ,··0";,·~~09 8:6 9j "tr.:!;"?7 ;1 7.45 7 7fJ...7 'i~"0 ·,· ·
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