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HomeMy WebLinkAboutO-1963 - Bond issuance (Special)CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.19'3 a-~~. d-~P.-ti,. 3~~ AN ORDINANCE of the City of Marysville,Washington, relating to contracting indebtedness;providing for the issuance of a $300,000 par value of Limited Tax General Obligation Bond,1993,SeriesB,of the City for general City purposes to provide funds with which to pay a part of the cost of acquiring two garbage trucks;fixing the date,form,maturities,interest rate,terms and covenants of the bond;establishing a bond redemption fund;and approving the sale and providing for the delivery of the bond to Seattle-First National Bank of Seattle,Washington. WHEREAS,the City of Marysville,Washington (the "City"),is in need of acquiring two garbage trucks,the estimated cost of which is $303,979.24,and the City does not have available sufficient funds to pay the cost;NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,DO ORDAIN as follows: section 1.Debt capacity.The assessed valuation of the taxable property within the city as ascertained by the last preceding assessment for City purposes for the calendar year 1993 is $527,588,574,and the city has outstanding general indebtedness evidenced by limited tax general obligation bonds in the principal amount of $167,722 incurred within the limit of up to 3/4 of 1%of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein,unlimited tax general obligation bonds in the principal amount of $6,375,000 incurred within the limit of up to 2-1/2%of the value of the taxable property within the city for capital purposes only,issued pursuant to a vote of the qualified voters of 0096292.01 -1- the City,and the amount of indebtedness for which the bond is authorized herein to be issued is $300,000. section 2.Authorization of the Bond.The City shall borrow money on the credit of the city and issue a limited tax general obligation bond evidencing that indebtedness in the amount of $300,000 for general City purposes to provide the funds to pay part of the cost of acquiring two garbage trucks (the "Acquisition")and to pay the costs of issuance and sale of the bond (the "costs of issuance")•The general indebtedness to be incurred shall be within the limit of up to 3/4 of 1%of the value of the taxable property within the city permitted for general municipal purposes without a vote of the qualified voters therein. section 3.Description of the Bond.The bond shall be called Limited Tax General Obligation Bond,1993,Series Bt of the City (the "Bond");shall be in the principal amount of $300,000;shall be dated its date of issuance;shall be numbered R-1 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 purposes of identification;shall bear interest from its dated date at a rate equal to 90%of the rate of interest designated and published by Seattle-First National Bank of Seattle,Washington (the "Bank")as its prime rate as such prime rate may change from time to time (the "Prime Rate")and the interest rate to be paid shall be adjusted as of the effective date of any adjustment in the Prime Rate (computed on the principal amount outstanding on the basis of a 365/366-day year and actual days elapsed for the actual number of days the 0096292.01 -2- principal amount is outstanding,payable on March 1,1994,and semiannually thereafter on each succeeding September 1 and March 1; and shall mature in principal installments due on September 1 in years and amounts as follows: principal Installment Payment Years 1994 1995 1996 1997 1998 Amounts $54,000 57,000 60,000 63,000 66,000 The life of the acquisition to be made with the proceeds of the Bond exceeds the term of the Bond. Section 4.Registration and Transfer of Bond.The Bond shall be issued to the Bank 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 the Bond. The Bond may not be assigned or transferred by the Bank, except that the Bank may assign or transfer the Bond to any successor to the business and assets of the Bank.When the Bond has been paid in fUll,both principal and interest,the Bond shall be surrendered by the Bank to the Bond Registrar,who shall cancel the Bond. section 5.Payment of Bond.Both principal of and interest on the Bond shall be payable in lawful money of the united States of America.Interest on the Bond shall be paid by check or draft of the Bond Registrar mailed on the interest payment date to the 0096292.01 -3- registered owner at the address appearing on the Bond Register on the 15th day of the month preceding the interest payment date. Principal of the Bond shall be paid in the principal installments due annually on September 1 of each year as set forth in section 3 above by check or draft mailed at least one business day prior to that date to the registered owner at the address appearing on the Bond Register on the fifteenth day of the month preceding that principal payment date. section 6.Prepavment and Redemption of Bond.The City reserves the right and option to prepay and redeem the Bond at any time,in whole or in part,without penalty,at par plus accrued interest to the date of redemption.written notice to the Bank of any intended prepayment or redemption of the Bond shall not be required.Interest on the Bond shall cease to accrue on the date of such prepayment. section 7.Failure to Redeem Bond.If the Bond is not redeemed when properly presented at its principal installment payment or redemption date,the City shall be obligated to pay interest on the Bond at the same rate provided in the Bond from and after its principal payment or redemption 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 redemption fund hereinafter created and the Bond has been called for payment by giving notice of that call to the registered owner of the unpaid Bond. Section 8.Pledge of Taxes.For as long as the Bond is outstanding,the City irrevocably pledges to include in its bUdget 0096292.01 -4- and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City on all of the taxable property within the City in an amount sUfficient,together with other money legally available and to be used therefor,to pay when due the principal of and interest on the Bond,and the full faith,credit and resources of the City are pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. section 9.Form and Execution of Bond.The Bond shall be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance and state law and shall be signed by the Mayor and City Clerk,either or both of whose signatures may be manual or in facsimile,and the seal of the city or a facsimile reproduction thereof shall be impressed or printed thereon. The Bond shall bear a Certificate of Authentication in the following form,manually signed by the Bond Registrar,and shall be valid or obligatory for any purpose and entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This bond is the fully registered City of Marysville,Washington,Limited Tax General Obligation Bond,1993,series B,described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated have been duly 0096292.01 -5- executed,authenticated and delivered and are entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature are authenticated or delivered by the Bond Registrar or issued by the City,the Bond nevertheless may be authenticated,delivered and issued and,when authenticated,issued and delivered,shall be as binding on the City as though that person had continued to be an officer of the city authorized to sign bonds.The 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 Bond. Section 10.Bond Registrar.The Bond Registrar shall keep, or cause to be kept,at its principal corporate trust office, sufficient books for the registration of the Bond,which shall be open to inspection by the City at all times.The Bond Registrar is authorized,on behalf of the City,to authenticate and deliver the Bond exchanged in accordance with the provisions of the Bond and this ordinance,to serve as the city's paying agent for the Bond and to carry out all of the Bond Registrar's powers and duties under this ordinance and city 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 Bond Registrar's Certificate of Authentication on the Bond.The Bond Registrar may become the 0096292.01 -6- owner of the Bond 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 11.Preservation of Tax Exemption for Interest on the Bond.The City covenants that it will take all actions necessary to prevent interest on the Bond 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 Bond or other funds of the City treated as proceeds of the Bond at any time during the term of the Bond which will cause interest on the Bond to be included in gross income for federal income tax purposes. The City also covenants that it will,to the extent arbitrage rebate requirements of section 148 of the Internal Revenue Code of 1986,as amended (the "Code"),are applicable to the Bond,take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Bond,including the calculation and payment of any penalties that the city has elected to pay as an alternative to calculating rebatable arbitrage,and the payment of any other penalties if required under section 148 of the Code to prevent interest on the Bond from being 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. 0096292.01 -7- Section 12.Advance Refunding or Defeasance of the Bond.The City may issue advance refunding bonds pursuant to the laws of the State of Washington or use money available from any other lawful source to pay when due the principal of and interest on the Bond, or any principal installment thereof included in a refunding or defeasance plan,and to redeem and retire,refund or defease all such principal installments of the outstanding Bond (hereinafter collectively called the "defeased Bond portions")and to pay the costs of the refunding or defeasance.If money and/or "government obligations"(as defined in Chapter 39.53 RCW,as now or hereafter amended)maturing at a time or times and bearing interest in amounts (together with money,if necessary)sufficient to redeem and retire,refund or defease the defeased Bond portions in accordance with the terms are set aside in a special trust fund or escrow account irrevocably pledged to that redemption,retirement or defeasance of defeased Bond portions (hereinafter called the "trust account"),then all right and interest of the owners of the defeased Bond portions in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bond portions shall cease and become void.The owner of the defeased Bond shall have the right to receive payment of the principal of and interest on the defeased Bond portions from the trust account.The defeased Bond portions shall be deemed no longer outstanding,and the city may apply any money in any other fund or account established for the payment or redemption of the defeased Bond portions to any lawful purposes as it shall determine. 00!l6292.01 -8- .,.. section 13.Bond Fund and Deposit of Bond Proceeds.There is created and established in the office of the City Finance Director a special fund designated as the Limited Tax General Obligation Bond Fund,1993,Series B (the "Bond Fund").Accrued interest on the Bond,if any,received from the sale and delivery of the Bond shall be paid into the Bond Fund.There has been created and established in the office of the City Finance Director a fund designated as the Solid Waste Fund (the "Acquisition Fund").The principal proceeds received from the sale and delivery of the Bond shall be paid into the Acquisition Fund and used for the purposes specified in section :2 of this ordinance.Until needed to pay the costs of the Acquisition and costs of issuance of the Bond,the City may invest principal proceeds temporarily in any legal investment,and the investment earnings may be retained in the Acquisition Fund and be spent for the purposes of that fund except that earnings subject to a federal tax or rebate requirement may be withdrawn from the Acquisition Fund and used for those tax or rebate purposes.All taxes collected for and allocated to the payment of the principal of and interest on the Bond shall be deposited in the Bond Fund. section 14.Approval of Bond Purchase Offer.Seattle-First National Bank of Seattle,washington,has presented a purchase offer (the "Bond Purchase Offer")to the city offering to purchase the Bond under the terms and conditions provided in such Offer, which written Offer is on file with the city Clerk and is incorporated herein by this reference.The City Council finds that 0096292.01 -9- ",. accepting the Bond Purchase Offer is in the City's best interest and therefore accepts the same. The Bond will be printed at city expense and will be delivered to the purchaser in accordance with the Bond Purchase Offer,with the approving legal opinion of Foster Pepper &Shefelman,municipal bond counsel of Seattle,Washington,regarding the 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 Bond,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 Bond to the purchaser and for the proper application and use of the proceeds of the sale thereof. section 15.Effectiye Date of Ordinance.This ordinance shall take effect and be in force from and after its passage and five days following its pUblication as required by law. PASSED by the city Council at a regular open public meeting thereof,this 23rd day of August,1993,an APPROVED AS TO FORM: city Attorney 0096292.01 -10- Mayor by the Mayor.