Loading...
HomeMy WebLinkAboutO-2043 - LID Nos. 64 and 65 bond issuance (Special)1-/Ju......,~. 1-~P4 I..rr-~ CITY OF MARYSVILLE,WASHINGTON ORDINANCE No.:t.O'f3 AN ORDINANCE of the City of Marysville,Washington, relating to local improvement districts;authorizing the issuance and sale of local improvement district bond anticipation notes for Local Improvement Districts Nos.64 and 65 pending the receipt of the proceeds of the local improvement district bonds or other short-term obligations authorized to be issued by Ordinances Nos. 2016 and 2032;fixing the dates,amounts,maturities, interest rates,forms,terms and covenants of those notes;and providing for the sale and delivery of those notes to Seattle-First National Bank,Seattle, Washington. WHEREAS,after a pUblic hearing thereon,the city of Marysville,Washington (the "city"),by Ordinance No.2016 passed by the city Council on February 27,1995,ordered the improvement of a portion of 67th Avenue N.E.and 88th Street N.E.(the "LID No. 64 Improvements"),established Local Improvement District No.64 ("LID No.64"),and provided for the issuance and sale of local improvement district warrants or other short-term obligations pursuant to chapter 39.50 RCW pending the receipt of the proceeds of the bonds authorized therein;and WHEREAS,after a public hearing thereon,the City,by Ordinance No.2032 passed by the city Council on June 12,1995, ordered the construction,installation and replacement of sewer mains and appurtenances along 84th Street NE at 45th Drive NE and along 45th Drive NE at 84th Street NE (the "LID No.65 Improvements"),established Local Improvement District No.65 ("LID No.65"),'and provided for the issuance and sale of local improvement district warrants or other short-term obligations 0203793.01 pursuant to chapter 39.50 RCW pending the receipt of the proceeds of the bonds authorized therein;and WHEREAS,the City council deems it to be in the best interest of the City that the City borrow money and issue its short-term obligations 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 all or a part of the costs of ca.rrying out the LID No.64 Improvements and the LID No.65 Improvements pending the receipt of the proceeds of local improvement district bonds authorized by Ordinances Nos.2016 and 2032,respectively,the collection of special assessments or the receipt of proceeds of other short-term obligations;and WHEREAS,Seattle-First National Bank (the "Bank")of seattle, Washington,has submitted to the City its offers to purchase such notes;NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,DO ORDAIN as follows: section 1.Note Funds;Authorization and Description of Notes.The city previously established a special fund designated as the Local Improvement Fund,District No.64 (the "LID No.64 Fund")•Pending·the receipt of the proceeds of the local improvement district bonds or other short-term obligations authorized by Ordinance No.2016,the City shall issue its Local Improvement District No.64 Bond Anticipation Note,1995 (the "LID No.64 Note"),in the principal amount of $1,308,750 under the terms of the purchase offer of Seattle-First National Bank (the "Bank")dated September 15,1995 (the "LID No.64 Offer"),for the 0203793.01 -2- purpose of providing the fUnds with which to pay all or a part of the cost of carrying out the Improvements within LID No.64 and the costs of issuance and sale of the LID No.64 Note. The city previously established a special fund designated as the Local·Improvement Fund,District No.65 (the "LID No.65 Fund")..Pending the receipt of the proceeds of the local improvement district bonds or other short-term obligations authorized by Ordinance No.2032,the city shall issue its Local Improvement District No.65 Bond Anticipation Note,1995 (the "LID No.65 Note"),in the principal amount of $130,000 under the terms of the purchase offer of the Bank dated September 15,1995 (the "LID No.65 Offer"),for the purpose of providing the funds with which to pay all or a part of the cost of carrying out the Improvements within LID No.65 and the costs of issuance and sale of the LID No.65 Note. The LID No.64 Note and LID No.65 Note sometimes may collectively be referred to herein as the "Notes." The Notes shall be in fully registered form;shall be dated as of their date of delivery to the Bank;shall mature on December 31, 1996;and shall bear interest at the rate of 4.66%per annum (computed on the basis of a 360-day year of twelve 30-day months), payable at maturity. The City Council finds that the fixing of the interest rate set forth above is in the best interest of the city. Section 2.payment of Notes.Both principal of and interest on the Notes shall be payable in lawful money of the United states of America solely out of the LID No.64 Fund or the LID No.65 0203793.01 -3- Fund,as applicable,from the proceeds of local improvement district bonds authorized to be issued by ordinances Nos.2016 and 2032 or other short-term obligations to be deposited in such respective fund and/or prepaid special benefit assessments deposited in such respective fund,and from the Local Improvement Guaranty Fund of the City and from other money of the City available to be used therefore.The city irrevocably pledges to redeem the LID No.64 Note on its maturity date from the proceeds of bonds,other short-term obligations and/or prepaid special benefit assessments deposited in the LID No.64 Fund,and from the Local Improvement Guaranty Fund.The City irrevocably pledges to redeem the LID No.65 Note on its maturity date from the proceeds of bonds',other short-term obligations and/or prepaid special benefit assessments deposited in the LID No.65 Fund,from the Local Improvement Guaranty Fund and from other money of the City available to be used ·therefore.The Notes are not general obligations of the City. Principal of and interest on the Notes at maturity or prior repayment are payable at the office of the Finance Director of the City,who is appointed Note Registrar for the Notes,in Marysville, Washington,upon presentation and surrender of the Notes or at such other place or by such other means as the City Finance Director and the Bank shall agree. section 3.PrepaYment and Redemption of Notes.The City reserves the right and option to prepay and redeem at any time prior to their stated maturity dates any or all of the principal amount of the Notes outstanding at a price of par plus the payment 0203793.01 -4- of a potential prepayment penalty as described in the Offers and in the Notes.written notice to the Bank of any intended prepayment or redemption of the Notes shall be given at least 5 business days prior to the date set for such prepayment or redemption.Interest on the Notes or the portion thereof so prepaid shall cease to accrue on the date of such prepayment. section 4.Failure to Redeem Notes.If any Note is not redeemed when properly presented at its maturity or call date,the City shall be obligated to 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 respective Note Fund and the Note has been called for payment by giving notice of that call to the Bank. section 5.Form and Execution.The Notes shall be printed, lithographed,typed or mUlticopied on good bond paper in a form consistent with the provisions of this ordinance,shall be signed by the Mayor and City Clerk,either or both of whose signatures may be manual or facsimile,and shall have the seal of the city printed or impressed thereon. Each Note shall bear thereon a certificate of Authentication sUbstantially in the following form,manually signed by the Note Registrar,and only if so executed shall the Notes be valid or obligatory for any purpose or entitled to the benefits of this ordinance: 0203793.01 -5- CERTIFICATE OF AUTHENTICATION This Note is the fully registered City of Marysville,Washington,Local Improvement District No. [64/65]Bond Anticipation Note,1995,described in the Note Ordinance. By--,-.,.-_-;--:---:,...-,.__ City Finance Director of the City of Marysville,Washington, Note Registrar The authorized signing of a Certificate of Authentication shall be conclusive evidence that each Note so authenticated has been duly executed,authenticated and delivered and is entitled to the benefits of this ordinance. section 6.Registration and Transfer of Notes;Note Registrar.The Notes 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 Note Registrar (the "Note Register").The Note Register shall contain the name and mailing address of the owner of the Notes.The Notes may not be assigned or transferred by the Bank,except that the Bank may assign or transfer the Notes to any successor to the business and assets of the Bank.When a Note has been paid in full,both principal and interest,that Note shall be surrendered by the Bank to the Note Registrar,who shall cancel that Note. The Note Registrar shall keep,or cause to be kept,at his office,sufficient books for the registration of the Notes.The Note Registrar shall serve as the city's authenticating trustee, transfer agent,registrar and paying agent for the Notes and shall comply fUlly with all applicable federal and state laws and regulations respecting the carrying out of those duties.The Note 0203793.01 -6- Registrar is authorized,on behalf of the City,to authenticate and deliver the Notes in accordance with the provisions of the Notes and this ordinance,to serve as the City's paying agent for the Notes and to carry out all of the Note Registrar's powers and duties under this ordinance.No assignment or transfer by the Bank of a Note shall be effective until the name of the new owner and the new owner's mailing address,together with such other information deemed appropriate by the Note Registrar,shall be recorded on the books of the Note Registrar. Each Note shall state on its face that the principal of and interest on that Note shall be paid only to the owner ,thereof registered as such on the Note Register as of the record date set forth therein and to no other person or entity,and that each Note may not be assigned except on the books of the Note Registrar. section 7.Tax Exemption Covenant.The City covenants that it will take all actions necessary to prevent the interest on the Notes from being included in gross income for federal income tax purposes,and that 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 the 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 bond issuer whose arbitrage certifications may not be relied upon. 02<ll793.01 -7- section 8.Small Governmental Issuer Arbitrage Rebate Exception and Designation of Notes as "Oualified 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)the Notes are not "private activity bonds"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 each of the Notes 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 and other obligations not required to be included in such calculation)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 exception under Section 148(f)(4)(D)of the Code and designates the Notes as "qualified tax-exempt obligations"for the purposes of section 265(b)(3)of the Code. 0203793.01 -8- Section 9.Deposit of Note Proceeds.The principal proceeds received from the sale and delivery of the LID No.64 Note shall be paid into the LID No.64 Fund,and used to pay the cost of carrying out the LID No.64 Improvements.until needed to pay the costs of the LID No.64 Improvements and costs of issuance of the LID No.64 Note,the city may invest principal proceeds temporarily in any legal investment,and the investment earnings may be retained in the LID No.64 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 that fund and used for those tax or rebate purposes. The principal proceeds received from the sale and delivery of the LID No.65 Note shall be paid into the LID No.6~Fund,and used to pay the cost of carrying out the LID No.65 Improvements. Until needed to pay the costs of the LID No.65 Improvements and costs of issuance of the LID No.65 Note,the City may invest principal proceeds temporarily in any legal investment,and the investment earnings may be retained in the LID No.65 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 that fund and used for those tax or rebate purposes. Section 10.Sale of Notes.The Bank has offered to purchase the Notes under the terms and conditions of its LID No.64 Offer and LID No.65 Offer,which Offers are on file with the City Finance Director and incorporated herein by this reference.The City Council finds that it is in the best interest of the City that such Offers be accepted,and accepts the same. 0203793.01 -9- The Notes will be prepared at City expense and be delivered to the Bank,with the approving legal opinion of Foster Pepper & Shefelman,municipal bond counsel of Seattle,Washington,regarding each Note.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 or disclosure material issued or used in connection with the Notes,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 Notes to the Bank and for the proper application and use of the proceeds of the sale thereof. PASSED by the city council and APPROVED by the Mayor of the City of Marysville,Washington,at a regular open pUblic meeting thereof,this 25th day of September,1995. 'Mayor ATTEST: APPROVED AS TO FORM: :City Attorney 0203793.01 -10-