Loading...
HomeMy WebLinkAboutO-2123 - Amends Ord. 2081, bond issuance (Special)I-'l~ 1~cv:kP.J. 1-'?h..-~. CITY OF MARYSVILLE, WASHINGTON ORDINANCE NO.d 1.:)3 AN ORDINANCE of the City of Marysville, Washington, relating to contracting indebtedness, and amending Section 4 of Ordinance No. 2081 to extend the term of its Limited Tax General Obligation Bond Anticipation Note, 1996 (Line of Credit) dated July 15, 1996, and issued for the purpose of paying the cost of improvements to Cedarcrest Golf Course pending the issuance of bonds, and ratifying and confirming Ordinance No. 2081 in all other respects not inconsistent with the terms and purposes of this ordinance. WHEREAS, by Ordinance No. 2081, the City of Marysville, Washington (the "City"), provided for the issuance of its Limited Tax General Obligation Bond Anticipation Note (Line of Credit) (the "Note") in an aggregate principal amountnot to exceed $3,750,000 and maturing April 30, 1997, to pay the cost of improvements to Cedarcrest Golf Course (the "Project") pending the issuance of bonds to provide permanent financing for the Project; and WHEREAS, it now appears that completionof the Project will be delayed, which in turn will defer the issuance of the bonds authorized by Ordinance No. 2081; and WHEREAS, Bank of America NT&SA, doing business as Seafirst Bank, successor by merger to Bank of America NW,N.A.,has offered and agreed to extend the maturity date of the Note to December 31,1997,with all other terms and conditions of the Note to remain the same; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON, DO ORDAIN as follows: Section 1. Definitions. All capitalizedterms used but not defined in this ordinance shall have the meanings assigned to those terms in Ordinance No. 2081 of the City. Section 2. Amendment of Ordinance No. 2081. For the purpose of extending the term of the Note in accordance with the offer of the Bank, which is found to be in the best interest 0284035.01 of the City and accordingly is accepted, Section 4 of Ordinance No. 2081 should be and is amended to read as follows: Section 4. Authorization and Description of Note. For the purpose of providing the funds with which to pay the cost of the Project and the costs of issuance and delivery of the Note pending the issuance of limited tax general obligation bonds authorized herein or other sources of repayment, the City may borrow money from time to time pursuant to a line of credit extended by the Bank under the terms of its commitment letter dated May 30, 1996, as amended by its letter dated April 1, 1997 (the "Offer") and consistent with the provisions of this ordinance, and shall issue the Note in an aggregate principal amount not to exceed $3,750,000. 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. The Note shall be designated the Limited Tax General Obligation Bond Anticipation Note, 1996 (Line of Credit); shall be dated as of its date of delivery to the Bank; shall be in fully registered form; shall be numbered R-l;and shall mature on December 31, 1997. The City may make incrementaldraws upon the Note (the "Loan Draws") in any amount on any Business Day during the term of the Note to carry out the purposes of the Note. No Loan Draw may exceed the total amount of the costs to be paid from such draw, and the proceeds of each Loan Draw shall be used immediatelyto pay those costs. Loan Draws shall be recorded on the Loan Draw 0284035.01 -2- Record attached to the Note, or in such other form as the City and the Bank may agree. Loan Draws are not subject to approval by the Bank, but shall be limited to an aggregate principal amount of $3,750,000. Each Loan Draw shall bear interest at the rate of 54 %of the interest rate designated and published by 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 on any Loan Draw shall be adjusted as of the effective date of any adjustment in the Prime Rate. Interest on each Loan Draw shall accrue from the date of that Loan Draw and shall be computed on the principal amount of the Loan Draw outstanding on the basis of a 360-day year of twelve 30-day months for the actual number of days the principal amount of the Loan Draw is outstanding, and shall be payable at maturity or prior repayment. Principal and interest shall be payable as described in Section 6 below. If the Note is not redeemed when properly presented at its maturity or call date, the City shall be obligated to pay interest on the Note at the rate specified above from and after the maturity or call date until the Note, both principal and interest, is paid in full or until sufficient money for that payment in full is on deposit in the Note Fund. The City Council finds that the fixing of the above interest rate and rate index is in the best interest of the City and its taxpayers. Section 3. Ratification of Terms and Conditionsof the Note. All other provisions, terms and conditions of Ordinance No. 2081 and of the Note, not inconsistent with the provisions of Section 2 of this ordinance, are ratified and confirmed in all respects. 0284035.01 -3- Section 4. City Officials Authorized to Proceed.Proper City officials are authorized and directed to do all things reasonable and necessary to carry out the provisions,terms and conditions of the Note, of this ordinance and of Ordinance No. 2081, as amended. Section 5.Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five (5)days following its publication as required by law. PASSED by the City Council regular open public meeting thereof and APPROVED by the Mayor this 7th day of April, 1997. ATTEST: Ci erk . APPROVED AS TO FORM: ~cw~ City Attorney 02840?5.01 -4-