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HomeMy WebLinkAboutORD 4635 CITY OF RENTON, WASHINGTON ORDINANCE NO. 4635 AN ORDINANCE of the City of Renton, Washington, • relating to contracting indebtedness; providing for the issuance of $650, 000 par value of Limited Tax General Obligation Bonds, 1996, of the City for general City purposes to provide funds with which to acquire firefighting and lifesaving equipment; fixing the date, form, maturities, maturity amounts and accreted value at maturity, interest rates, terms and covenants of the bonds; establishing a bond redemption fund; and approving the sale and providing for the sale and delivery of the bonds. WHEREAS, the City of Renton, Washington (the "City") , is in need of acquiring firefighting and lifesaving equipment for City purposes and use, the estimated cost of which is $540,000, and the City does not have available sufficient funds to pay the cost; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINITON, DO ORDAIN as follows: � SECTION I. 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 1996 is $3,546,097, 162, and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds and conditional sales contracts in the principal amount of $9, 382, 063 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 $4,855, 000 I incurred within the limit of up to 2-1/2� of the value of the 255366.02 ' ORDINANCE NO. 4635 '� taxable property within the City for capital purposes only and unlimited tax general obligation bonds in the principal amount of $2, 940, 000 incurred within the additional limit of up to 2-1/20 of the value of the taxable property within the City for parks and open space purposes 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 $650, 000 (calculated based on principal amount or accreted value at maturity, as applicable) . SECTION II . Authorization of Bonds . The City shall borrow money on the credit of the City and issue negotiable limited tax general obligation bonds evidencing that indebtedness in the amount of $650, 000 for general City purposes to provide the funds to pay part of the cost of acquiring firefighting and lifesaving equipment and for other general City purposes (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 III . Description of Bonds . The bonds shall be called I� Limited Tax General Obligation Bonds, 1996 of the City (the "Bonds" ) . The Bonds maturing in the years 1997 through 2000, inclusive, and in the years 2002 through 2004, inclusive (collectively, the "Current Interest Bonds") , shall be in the aggregate principal amount of $410, 000; shall be dated October 15, 1996; shall be in 255366.02 -2- ORDINANCE NO. 4635 the denomination of $1, 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 semiannually on each April 15 and October 15, commencing April 15, 1997, to the maturity of the Bonds; and shall mature on October 15 in years and amounts and bear interest at �he rates per annum as follows: CURRENT INTEREST BONDS Maturity Interest Years Amounts Rates 1997 $7,000 4.25� 1998 27,000 4. 60 1999 32,000 4.75 2000 17, 000 4.90 * * 2002 58, 000 5.20 2003 10, 000 5.30 2004 259, 000 5.40 The Bonds maturing in the years 2001, 2005 and 2006 (collectively, the "Capital Appreciation Bonds") shall be in the original purchase price per $1, 000 accreted maturity amount as set forth below; shall be dated the date of delivery; shall be in the denomination of $1, 000 accreted maturity amount 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 deems necessary for purposes of identification; 255366.02 -3- ORDINANCE N0. 4635 shall bear interest to be compounded semiannually on each April 15 and October 15, commencing April 15, 1997, to the maturity of the Bonds and accrued for payment at maturity; and shall mature and be due and payable as to both principal and interest on October 15 in the years and in the amounts as follows: CAPITAL APPRECIATION BONDS Purchase Price per $1,000 Aggregate Accreted Maturitv Accreted Maturity Amount Maturity Amount �I 2001 $777. 30 $21, 000 ' ** ** ** 2005 613. 65 25,000 2006 575. 62 194, 000 The accreted value of the Capital Appreciation Bonds of each maturity are set forth in Exhibit A. The accreted values on dates between those shown in Exhibit A shall be computed by straight line interpolation. The average life of the equipment to be acquired with the proceeds of the Bonds exceeds the term of the Bonds. SECTION IV. 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 �I owner. ' Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized denomination of an equal aggregate principal amount or accreted value and of the same interest rate 255366.02 -4- ORDINANCE NO. 4635 i 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 V. 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 Current Interest 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 last day of the month preceding the interest payment date. Principal of the Current Interest Bonds, and principal and interest of the Capital Appreciation Bonds, shall be payable upon 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 VI . 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 any price acceptable to the City plus accrued interest to the date of purchase . Al1 Bonds purchased under this section shall be canceled. SECTION VII . Failure to Redeem Bonds . If any Bond is not redeemed when properly presented at its maturity date, the City 255366.02 -5- ORDINANCE NO. 4635 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 VIII. 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 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 IX. 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 �he City or a facsimile reproduction thereof shall be impressed or printed thereon. 255366.02 -6- ' ORDINANCE NO. 4635 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 Renton, Washington, Limited Tax General Obligation Bonds, 1996, 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 or delivered by the Bond Registrar or issued by the City, those Bonds nevertheless may be authenticated, delivered and issued and, I 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 of-fice on the date of issuance of the Bonds. zss3�.oz ' -7- ORDINANCE NO. 4635 SECTION X. Bond Registrar. The Bond Registrar shall keep, or 'il 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. 3755 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 as members of, or in any other capacity with respect to, any committee formed to protect the rights of Bond owners. SECTION XI. Preservation of Tax Exemption for Interest on Bonds. The City covenants that it will take all actions necessary to 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 �he City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the 255366.02 -8- ORDINANCE NO. 4635 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 °tCode") , 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 XII. Designation of Bonds as "Qualified 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 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- exempt 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- 255366.02 � -9- • ORDINANCE NO. 4635 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 XIII. Undertaking to Provide Continuing Disclosure. To meet the requirements of United States Securities and Exchange Commission ("SEC") Rule 15c2-12 (b) (5) (the "Rule") , as applicable I to a participating underwriter for the Bonds, the City makes the following written undertaking (the "Undertaking") for the benefit of holders of the Bonds: (A) Undertaking to Provide Annual Financial II Information and Notice of Material Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent: (1) To each nationally recognized municipal securities in�ormation repository designated by the SEC in accordance with the Rule ("NRMSIR") and to ' a state information depository, if any, established in the state of Washington (the "SID") annual financial information and operating data of the type included in the final official statement for the Bonds and described in Section XIII (B) ("annual financial information") ; (2) To each NRMSIR or the Municipal Securities Rulemaking Board ("MSRB") , and to the � SID, timely notice of the occurrence of any of the following events with respect to the Bonds, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax-exempt status of the Bonds; (7) modifications to rights of holders of the Bonds; (8) Bond calls (other than scheduled mandatory redemptions of Term 255366.02 -10- ORDINANCE NO. 4635 I'' � Bonds • 9 defeasances• 10 release ) � � ) � � ) . substitution, or sale of property securing repayment of the Bonds; and (11) rating changes; and (3) To each NRMSIR or to the MSRB, and to the SID, timely notice of a failure by the City to provide required annual financial information on or before the date specified in Section XIII (B) . (B) Tvpe of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide in Section XIII(A) : (1) Shall consist of the annual financial information and operating data regarding the City of the type included in the Official Statement for the Bonds as follows: (i) annual financial statements of the City; (ii) a statement of authorized, issued and outstanding general obligation bond debt; (iii) the assessed value o_f the property within the City subject to ad valorem taxation; and (iv) ad valorem tax levy rates and amounts and percentage of taxes collected. Any and all of this information may be provided in the form of or contained in the City's Comprehensive Annual Financial Report or similar documents; (2) Shall be prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting principles promulgated by the Government Accounting Standards Board ("GASB") , as such principles may be changed from time to time by GASB or its successor; (3) Shall not be audited, except, however, that if and when audited financial statements are otherwise prepared and available to the City they will be provided; (4) Shall be provided to each NRMSIR and the SID, not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31) , as such fiscal year may be changed as required or permitted by State law, commencing with the City's fiscal year ending December 31, 1996; and (5) May be provided in a single or multiple documents, and may be incorporated by reference to other documents that have been filed with each NRMSIR and the SID, or, if the document 255366.02 -11- ORDINANCE NO. 4635 incorporated by reference is a "final official statement" with respect to other obligations of the City, that has been filed with the MSRB. (C) Amendment of Undertakina. The Undertaking is , subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under the circumstances and in the manner permitted by the Rule. The City will give notice to each NRMSIR or the MSRB, and the SID, of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the notice also will include a narrative explanation of the effect of that change on the type of information to be provided. (D) Beneficiaries. The Undertaking evidenced by this Section XIII shall inure to the benefit of the City and any holder of Bonds, and shall not inure to the benefit of or create any rights in any other person. (E) Termination of Undertakina. The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under � this Undertaking shall terminate if those provisions of the Rule which require the City to comply with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City, and the City provides timely notice of such termination to each NRMSIR or the MSRB and the SID. ' (F) Remedy for Failure to Comply with Undertakinq. As soon as practicable after the City learns of any failure to comply with the Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with the Undertaking shall constitute a default in respect of the Bonds. The sole remedy of any holder of a Bond shall be to take such actions as that holder deems necessary, including seeking an order of specific performance from an appropriate court, to compel the City or other obligated person to comply with the Undertaking. 255366.02 -12- ORDINANCE NO. 4635 I � (G) Desicjnation of Official Responsible to Administer Undertakina. The Finance and Information Services Administrator of the City (or such other officer of the City who may in the future perform the duties of the Finance and Information Services Administrator) or his or her designee is authorized and directed in his or her discretion to take such further actions as may be necessary, appropriate or convenient to carry out the Undertaking of the City in respect of the Bonds set forth in this Section XIII . and in accordance with the Rule, including, without limitation, the following actions: (1) Preparing and filing the annual financial information undertaken to be provided; (2) Determining whether any event specified in Section XIII(A) has occurred, assessing its materiality with respect to the Bonds, and, if material, preparing and disseminating notice of its occurrence; _ (3) Determining whether any person other than the City is an "obligated person" within the meaning of the Rule with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice , of material events for that person in accordance , with the Rule; (4) Selecting, engaging and compensating designated agents and consultants, including but �I not limited to financial advisors and legal counsel, to assist and advise the City in carrying out the Undertaking; and (5) Effecting any_necessary amendment of the Undertaking. SECTION XIV. Bonds Neqotiable. The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. SECTION XV. Refunding or Defeasance of the Bonds. The City may issue 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 255366.02 -13- ORDINANCE NO. 4635 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 I direct obligations of the United States of America 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 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 owners 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 de£eased Bonds from the trust account. The City shall include in the refunding or defeasance plan such provisions as the City deems necessary for the random selection of any defeased Bonds that constitute less than all of a particular maturity of the Bonds, for notice of the defeasance to be given to the owners of the defeased Bonds and to such other persons as the City shall determine, and for any required replacement of Bond � certificates for defeased Bonds. 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. 255366.02 , -14- ORDINANCE NO. 4635 SECTION XVI. Bond Fund and Deposit of Bond Proceeds. There has been created and established in the office of the Finance and Information Services Administrator a special fund designated as the General Governmental Miscellaneous Debt Fund (the "Bond Fund") . Within the Bond Fund an account to be known as the "1996 Fire Equipment Bonds" account will be created and established. Accrued interest on the Bonds, if any, received from the sale and delivery �I of the Bonds shall be paid into the 1996 Fire Equipment Bonds account. All taxes collected for and allocated to the payment of , the principal of and interest on the Bonds shall be deposited in that account in the Bond Fund. The principal proceeds received from the sale and delivery of the Bonds shall be paid into the City's Equipment Rental Fund, previously created and established in the office of the Finance and Information Services Administrator, and used for the purposes specified in Section II of this ordinance. Until needed to pay the II costs of the Project and costs of issuance of the Bonds, the City may invest principal proceeds temporarily in any legal investment, and the investment earnings may be retained in the Equipment Rental Fund and be spent for the purposes of that fund except that I earnings subject to a federal tax or rebate requirement may be withdrawn from the Equipment Rental Fund and used for those tax or . rebate purposes. '� SECTION XVII. Sale of Bonds. The City Council finds that the sale and delivery of the Bonds to the public at the interest rates and under the conditions set forth in the Bond Ordinance is in the 255366.02 -15- ORDINANCE NO. 4635 City's best interest and therefore ratifies the sale of the Bonds to the public. No Bond shall be delivered to a purchaser unless the Finance and Information Services Administrator determines that the full purchase price has been paid therefor. The Bonds will be printed at City expense and will be delivered to the purchaser 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 e�ress no 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 Bonds, 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 Bonds to the purchasers and for the proper application and use of the proceeds of the sale thereof. 255366.02 -16- � ORDINANCE NO. 46�,_ � SECTION XVIII. Effective Date of Ordi�ance. This ordinance shall be effective upon its passage, approval and five days after publication. PASSED by the City Council this23rd day of September , 1996. � Marilyn . P tersen, City Clerk APPROVED BY THE MAYOR this 23rd day of September , 1996. - �o...��� Je e Tanner, Mayor Approved as to Form: � Bond Couns � Date of Publication: September 27, 1996 : 255366.02 -17- APPENDIX A CAPITAL APPRECIATION BOND ACCRETED VALUE SCHEDULE Accreted Value Per$1,000 Maturity Value Maturity Maturity Maturity Date 10/15/01 10/15/05 10/15/06 04/15/97 797.21 630.53 591.74 10/15/97 817.54 647.87 608.31 04/15/98 838.39 665.68 625.34 10/15/98 859.77 683.99 642.85 - 04/15/99 881.70 702.80 660.85 10/15/99 904.18 722.13 679.35 04/15/2000 927.24 741.99 698.37 10/15/2000 950.88 762.39 717.93 04/15/2001 975.13 783.36 738.03 10/15/2001 1,000.00 804.90 758.70 04/15/2002 827.04 779.94 10/15/2002 849.78 801.78 � 04/15/2003 873.15 824.23 10/15/2003 897.16 847.31 04/15/2004 921.84 871.03 10/15/2004 947.19 895.42 04/15/2005 973.24 920.49 10/15/2005 1,000.00 946.27 04/15/2006 972.76 10/15/2006 1,000.00 T, ������ �� ��������, City Clerk of the City of �enton, �a��i�����Q ������� ���� ��� ����ched copy of Ordinance NQD4635 �� � ��u� ��d ����ec� ���� �� ��� �riginal ordinance �assed �� the 23rd ��� �� September , ����Q �� such ordina��� ����a�s on ��i� ������ ��o� �� ��� ����a ����� ���5 d�� �f a ����r ������ �. ����EN, City ����� 255366.02