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HomeMy WebLinkAboutO-1994 - Bond issuance (Special).3-~k. )-2~~ /-f~CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.I c;9~ AN ORDINANCE of the City of Marysville,Washington, relating to contracting indebtedness;providing for the issuance of $700,000 par value of Limited Tax General Obligation Bonds,1994,of the city for general City purposes to provid~funds with which to pay the cost of acquiring two fire trucks and a garbage truck;fixing the date,form,maturities,interest rates,terms and covenants of the bonds;establishing a bond redemption fund;and approving the sale and providing for the delivery of the bonds to Pacific Crest Securities of Seattle,Washington. WHEREAS,the City of Marysville,Washington (the "city"),is in need of acquiring two fire trucks and a garbage truck for general city purposes,the estimated cost of which is $700,000,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 1994 is $830,022,070,and the city has outstanding general indebtedness evidenced by limited tax general obligation bonds and loans in the principal amount of $457,553 incurred within the limit of up to 1-1/2%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 $6,300,000 incurred within the limit of up to 2-1/2%of the value of the taxable property within the city for 0136878.01 capital purposes only issued pursuant to a vote of the qualified voters of the City,and the amount of indebtedness for which bonds are authorized herein to be issued is $700,000. Section 2.Authorization of Bonds.The city shall borrow mQney on the c~edit of the City and issue negotiable limited tax general obligation bonds evidencing that indebtedness in the amount of $700,000 for general city purposes to provide the funds to pay the cost of acquiring two fire trucks and a garbage truck (the "Project")and to pay the costs of issuance and sale of the bonds (the "costs of issuance").The general indebtedness to be incurred shall be within the limit of up to 1-1/2%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 Bonds.The bonds shall be called Limited Tax General Obligation Bonds,1994,of the city (the "Bonds");shall be in the aggregate principal amount of $700,000; shall be dated JUly 1,1994;shall be in the denomination of $5,000 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 (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 (computed on the basis of a 360-day year of twelve 30-day months),payable on December 1,1994, and semiannually thereafter on each succeeding June 1 and December 1;and shall mature on December 1 in years and amounts and bear interest at the rates per annum as follows: 0136878.01 -2- Maturity Interest Years Amounts Rates 1994 $120,000 3.70% 1995 130,000 4.20 1996 140,000 4.60 1997 150,000 4.80 1998 160,000 5.00 Tlielife of the Project exceeds the term of the Bonds. section 4.Registration and Transfer of Bonds.The Bonds shall be issued only in registered form as to both principal and interest and shall be 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. Bonds surrendered to the BOnd Registrar may be exchanged 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.Any exchange or transfer shall be without cost to the owner or transferee.The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days preceding any principal payment date. Section 5.Payment of Bonds.Both principal of and interest on the Bonds shall be payable in lawful money of the United states of America.Interest on the Bonds shall be paid by checks or drafts of the Bond Registrar mailed on the interest payment date to the registered owners at the addresses appearing on the Bond Register on the 15th day of the month preceding the interest payment date. 0136878.01 Principal of the Bonds shall be payable upon -3- 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. Section 6.Optional Redemption and open Market Purchase of Bonds.The Bonds shall be issued without the right or option of the City to redeem the Bonds prior to their stated maturity dates. The city reserves the right and option to purchase any or all of the Bonds in the open market at any time at a price not in excess of par plus accrued interest to the date of purchase. All Bonds purchased under this section shall be canceled. section 7.Failure to Redeem Bonds.If any Bond is not redeemed when properly presented at its maturity date,the city shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity 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 each of those unpaid Bonds. Section 8.Pledge of Taxes.For as long as any of the Bonds are outstanding,the City irrevocably pledges to include in its budget 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 Bonds,and the full faith,credit and resources 0136878.01 -4- 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 Bonds.The Bonds 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. Only Bonds bearing a Certificate of Authentication in the following form,manually signed 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,Limited Tax General Obligation Bonds,1994,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 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 0136878.01 -5- or delivered by the Bond Registrar or issued by the City,those Bonds 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.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 10.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 be open to inspection by the City at all times.The Bond Registrar is authorized,on behalf of the City,to authenticate and deliver Bonds transferred or exchanged 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 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 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 0136878.01 -6- 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 Bonds.The city covenants that it will take all actions necessary t~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 also covenants that it will,to the extent the arbitrage rebate requirement of section 148 of the Internal Revenue Code of 1986,as amended (the "Code"),is applicable to the Bonds, take all actions necessary to comply (or to be treated as having complied)with that requirement in connection with the Bonds, 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 Bonds 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. Section 12.Designation of Bonds as "Oualified Tax-Exempt Obligations."The City has determined and certifies that (a)the Bonds are not "private activity bonds"within the meaning of Section 141 of the Code;(b)the reasonably anticipated amount of 0136878.01 -7- tax-exempt obligations (other than private activity bonds)which the city and any entity 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- e~empt obligations on behalf of the City)will issue during the calendar year in which the Bonds are issued will not exceed $10,000,000;and (c)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 designates the Bonds as "qualified tax-exempt obligations"for the purposes of section 265(b)(3)of the Code. Section 13.Bonds Negotiable.The Bonds shall be negotiable instruments to the extent provided by RCW 62A.S-102 and 62A.S-105. Section 14.Advance Refunding or Defeasance of the Bonds. 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 Bonds,or any portion thereof included in a refunding or defeasance plan,and to redeem and retire,refund or defease all such then- outstanding Bonds (hereinafter collectively called the "defeased Bonds")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 0136878.01 -S- Bonds in accordance with their terms are set aside in a special trust -fund or escrow account irrevocably pledged to that redemption,retirement or defeasance of defeased Bonds (hereinafter called the "trust account"),then all right and interest of the o~ers of the defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall cease and become void.The owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds from the trust account.The defeased Bonds 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 Bonds to any lawful purposes as it shall determine. section 15.Bond Fund and Deposit of Bond Proceeds.There is created and established in the office of the Finance Director of the City a special fund designated as the Limited Tax General Obligation Bond Fund,1994 (the "Bond Fund").Accrued interest on the Bonds,if any,received from the sale and delivery of the Bonds shall be paid into the Bond Fund.There has been created and established in the office of the Finance Director of the city a fund designated as the General Fund from which the costs of the Project and the costs of issuance of the Bonds shall be paid (the "Acquisition Fund").The principal proceeds received from the sale and delivery of the Bonds 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 Project and costs of issuance of the Bonds,the City may invest principal proceeds temporarily in 0136878.01 -9- any legal investment,and the inv~stment 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 Bonds shall be deposited in the Bond Fund. section 16.Approval of Bond ·Purchase Contract.Pacific Crest securities of Seattle,Washington,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. 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. 0136878.01 -10- 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 17.Temporary Bond.Pending the printing,execution and -delivery to the purchaser of definitive Bonds,the City may cause to be executed and delivered to the purchaser a single temporary Bond in the total principal amount of the Bonds.The temporary Bond shall bear the same date of issuance,interest rates,principal payment dates and terms and covenants as the definitive Bonds,shall be issued as a fully registered Bond in the name of the purchaser,and otherwise shall be in a form acceptable to the purchaser.The temporary Bond shall be exchanged for definitive Bonds as soon as they are printed,executed and available for delivery. section 18.Effective Date of Ordinance.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 and APPROVED by the Mayor this 27th day of June,1994. ATTEST: CITY OF MARYSVILLE,WASHINGTON t4i!WA4bt Mayor FO Clerk city Attorney 0136878.01 -11-