HomeMy WebLinkAboutO-2868 - Bond issuance (Special)CITY OF MARYSVILLE, WASHINGTON
ORDINANCE NO.~D(o~
AN ORDINANCE relating to contracting indebtedness;
authorizing the issuance of limited tax general obligation bonds to provide
the funds necessary to pay a portion of the costs of constructing an
Interstate 5 overpass at 156th Street NE; authorizing the issuance of
interim financing pending the issuance of those bonds; authorizing the
City Finance Director to contract for interim financing to pay the costs of
constructing an Interstate 5 overpass at 156th Street NE, pending the
issuance of local improvement district bonds authorized by Ordinance No.
2827 and issuance of the bonds authorized by this ordinance.
THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON, DO
ORDAIN, as follows:
Section 1. Recitals, Findings and Determinations. The City Council (the "Council")
of the City of Marysville, Washington (the "City") makes the findings and determinations set
forth below.
(a) The Council passed Ordinance No. 2827, on September 20,2010, establishing Local
Improvement District No. 71 ("LID 71") for the purpose of providing a portion of the funds
necessary to construct an Interstate 5 overpass at 156th Street NE (the "Project"). Under
Ordinance No. 2827, the City determined the total estimated costs of the Project to be
$16,000,000, and authorized a portion of the Project to be financed by the issuance and sale of
not to exceed $8,000,000 principal amount of local improvement district bonds (the "LID
Bonds"). Ordinance No. 2827 also determined that the City would pay up to $8,000,000 of the
Projects costs from other sources (the "City's Allocation").
SIISS239.3
(b) Pending the issuance of the LID Bonds, the City in Ordinance No. 2827 authorized
the issuance of short-term obligations pursuant to chapter 39.50 RCW or such other obligations
permitted by law to provide interim financing for the costs of the Project (the "LID Notes"). The
City authorized any LID Notes to be paid or refunded with proceeds of the LID Bonds when
issued.
(c) The Council deems it to be in the best interests of the City to finance the City's
Allocation by issuing limited tax general obligation bonds (the "LTGO Bonds," and together
with the LID Bonds, the "Bonds") in an aggregate principal amount not to exceed $8,000,000.
Pending the issuance of the LTGO Bonds, the Council deems it to be in the best interests of the
City to issue short-term obligations pursuant to chapter 39.50 RCW or such other obligations
permitted by law to provide interim financing for the City's Allocation (the "LTGO Notes," and
together with the LID Notes, the "Notes"), and to payor refund any LTGO Notes with proceeds
of the LTGO Bonds when issued.
(d) RCW 39.50.030 provides that the City may designate by ordinance a representative
of the City to sell and deliver authorized short-term obligations and to fix the dates, price,
interest rates, and other details of the short-term obligations, as may be specified in such
ordinance.
(e) It is desirable to designate and authorize the City's Finance Director (the "Finance
Director") to contract for the Notes for the purpose of paying the costs and expenses of the
Project pending the issuance of the Bonds, all pursuant to chapter 39.50 RCW.
(f) The maximum rate of interest for the Notes and the standards for the index for the
variable interest rates established in this ordinance are in the best interest of the City.
51155239.3
Section 2. Authorization of the LTGO Bonds and the LTGO Notes. The City is
authorized to borrow money on the credit of the City and issue the LTGO Bonds in an aggregate
principal amount not to exceed $8,000,000 for general City purposes to provide the funds
necessary to pay the City's Allocation and the costs of issuance and sale of the LTGO Bonds.
For the purpose of providing funds for the City's Allocation pending the issuance of the LTGO
Bonds, the City is authorized to issue LTGO Notes in an aggregate principal amount not to
exceed $8,000,000. 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.
Section 3. Authorization to Contract for Interim Financing. The Finance Director is
hereby designated and authorized to negotiate and enter into contracts for the Notes, all as
provided by chapter 39.50 RCW. The LID Notes shall not exceed an aggregate principal amount
of $8,000,000 and the LTGO Notes shall not exceed an aggregate principal amount of
$8,000,000. The Notes may bear a fixed rate or rates or a variable rate or rates of interest which
may be based on a bank prime rate, LlBOR rate, or any other rate index, but in any event shall
not exceed a net effective interest rate of 6% per annum. The Notes shall be dated as of the date
of their issuance and shall not be outstanding, together with any other short-term obligations
issued to redeem the same, for longer than the time permitted by chapter 39.50 RCW. The Notes
shall be registered in order to exempt the interest thereon from federal income taxation, and the
Finance Director may designate the registrar (which may be the Finance Director).
The Notes may be subject to prior redemption, may be sold at a discount, at par, or at a
premium, and shall be in such denominations and bear such other covenants respecting payment
as the Finance Director may determine. Both principal of and interest on the Notes shall be
51 r5S2.19 J
payable in lawful money of the United States of America at the office or offices of the registrar,
State of Washington fiscal agency, or the office of the Finance Director as designated by the
Finance Director. The Finance Director may provide for any other terms and conditions that the
Finance Director determines are reasonably necessary for issuing the Notes, including, but not
limited to the payment of bank fees, commitment fees, and other costs of issuance.
Section 4. Payment of Notes. The LID Notes may be paid from the proceeds of the
LID Bonds, from LID 71 assessment payments, from the proceeds of the issuance of other short
term obligations, or from the City's Local Improvement Guaranty Fund (the "LID Guaranty
Fund). The LID Notes shall be payable solely out of the Local Improvement Fund, District No.
7l created by Ordinance No. 2827, and the LID Guaranty Fund.
The LTGO Notes may be paid from the proceeds of the LTGO Bonds, from the proceeds
of the issuance of other short-term obligations, or from other City funds legally made available
for that purpose. The Finance Director is authorized to create a separate fund or account to
provide for the payment of any LTGO Notes.
Section 5. Severability. If any section, sentence, clause or phrase of this ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause or phrase or word of this ordinance.
Section 6. General Authorization and Ratification of Prior Acts. The Finance
Director is authorized to perform such duties as are necessary or required by law to carry out the
issuance of interim financing to pay the costs of the Project pending the issuance of the Bonds,
all pursuant to chapter 39.50 RCW and provided by this ordinance. All actions taken consistent
511551393
with the authority of this ordinance, after its passage but prior to the effective date, is ratified,
approved, and confirmed.
PASSED by the City Council of the City of Marysville, Washington, and signed In
authentication of its passage this 25th day of July, 2011.
•f
ATTEST:
APPROVED AS TO FORM:
iwlJ'fUA ~-f'-""--=-WzJ~-
Foster Pepper~,Bond Counsel
~IIS)239J