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Home My WebLink AboutORD 3884 . . � � . - , . . •. , . CITY OF RENTON, WASHINGTON ORDINANCE N0. �8A4 ' AN ORDINANCE of the City of Renton, Washington, relatin to contracting indebtedness; authorizing the g issuance of $3, 965,000 par value of limited tax general obligation bonds of the City for strictly City purposes to provide funds with which to acquire Maplewood Golf Course and to develop and improve portions of that course; establishing a golf course operations fund; and providing for the issuance and sale of short-term obligations pending the issuance and sale of such bonds . WHEREAS, the City of Renton, Washington (the "City" ) , finds and declares that it is in the best interest of the City that it acquire Maplewood Golf Course and develop and improve portions of that course, the estimated cost of which is $3, 965,000, and the City does not have available sufficient funds to pay the cost thereof ; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN as follows : Section 1 . The assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the calendar year 1984 for collection in the year 1985 is $1, 852 , 397,097, and the City has �6, 853,488 out- standing general indebtedness evidenced by limited tax general obligation bonds and installment purchase contracts incurred within the limit of up to 3/4 of 1� of the value of the taxable property within the City permitted for general municipal pur- poses without a vote of the qualified voters therein, unlimited I• _ � r,---.__ _ _ _ _ ___ _ I _ ' � ' � � , � � . � . . tax qenera2 ab2fgatian bands in the principal amaunt of I $6, 89Q,004 incurred within the limit of up ta 2-112$ af the value of the taxable praperty within the City for �apital purposes only pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which bonds are herein authorized ta be issued is $3.965,Q00. The City further plans to issue and sell in the immediate future limited tax general obligatian bonds in the amount of $430,000. Sectian 2 . The City shall borrow money on the credit of �, the City and issue negotiable limited tax genera]. obligatian I bonds evidencing such indebtedness in the amount oi $3, 965,000 I for general City purposes ta provide the funds to acquire Maplewood Golf Caurse within the City, to develop and improve portions a� that golf course and ta pay the costs af issuance and sale of the bonds . Such bonds shall be issued at such time � I or times, shall be dated, bea� such interest, have such terms and conditions, mature, have such call features, be issued in I such series and be sald as a sing2e affering or as part of a � combined affering of limited tax general abligatian bonds of the I City in such manner as shall be provided hereafter by ordi- I nance. Such bands shall be payable from the regular property tax levy o� the City levfed withaut a vote of the electvrs of C the City and fram other maney legally available for such purpase, I � Sectian 3 . There is created in the office of the Finance Directar of the City a special :Eund designated "Fund No. 404 (Golf Course Operations} � The Finance Director is authorized to � - 2 - I I t— _.__._—. . � , ' � , � . create accounts within such fund to segregate bond and Note proceeds, other money intended for acquisition, construction and improvement of the golf course from money to be used for main- tenance and operation of the golf course, and money to pay the principal of and interest on the Note. Pending the issuance of the limited tax general obligation bonds authorized by this ordinance, the City shall issue and sell its "Limited Tax General Obligation Golf Course Bond Anticipation Note, 1985N (the "Note" ) , in the principal amount of $3, 965,000 . The Note shall be in fully registered form; shall be numbered R-1 and in the manner and with any additional designation as the Note Registrar (the fiscal agencies of the State of Washington in Seattle, Washington, and New York, New York) deems necessary for purpose of identification; shall be dated as of its date of issuance, shall mature three years from its issue date; and shall bear interest at a rate equal to .25$ greater than the early morning A-1/P-1 30-day tax exempt commercial paper rate as published on Munifacts set two business days prior to the date of delivery of the Note to the original purchaser thereof and adjusted two business days prior to the first day of each month thereafter to .25� greater than the then early morning A-1/P-1 30-day tax exempt commercial paper rate . Interest shall be calculated on an actual over 30-day basis and will be paid on the first day of each calendar month through maturity, commencing March 1, 1985, with full obligation on the part of the City to pay interest at the same index rate described above - 3 - . ' • ' � � � from and after maturity until the Note with interest is paid in ' full or sufficient money for such payment in full is on deposit in the the account established for the redemption of the Note in Fund No. 404 (Golf Course Operations) and the Note has been called for redemption as hereinafter provided. The City Council declares and finds that the fixing of the above interest rate index is in the best interests of the City. The �Note shall be a general obligation of the City. The Note may be prepaid at the option of the City on any interest payment date upon giving at least 30 days ' written notice to the registered owner of the Note at his/her/its address appearing on the books or records (the "Note Register" ) maintained by the Note Registrar on the date of mailing. Interest on the Note shall cease on the date fixed for prepay- ment in full upon the payment into the account established for the redemption of the Note in Fund No. 404 (Golf Course Operations) of sufficient money to pay fully the principal of and interest to date of redemption of the Note. The Note shall be issued only in registered form as to both principal and interest on the Note Register . Such Note Register shall contain the name and mailing address of the owner of the Note. Both principal of and interest on the Note shall be payable in lawful money of the United States of America . Interest on - 4 - � . ,' " � , , , the Nate shall be paid by check or draft mailed �o the regis- tered owner of the Note at the address far such awner appearing � in the Note Register on the 15th day of the month preceding the interest payment date. Principal of the Note shall be payable upon presentation and surrender of the Note by the �egistered awner at either of the princfpal affices of the Note Registrar . Section 4 . The City irrevocably pledges to redeem the Note on or before its maturity date and to pay interest thereon from I the praceeds of a sufficient amount of the limited tax general obligatian bonds authorized herefn, fram earnings �ram invest- � ment of Note proceeds or �rom other money legally available for f I such purpose . The City irrevocably covenants that it will include in its budget and will levy taxes annually within the Canstitutianal and statutary tax limitations provided by law without a vate of the electars of the City upon all property within the City �ubject to taxation in an amount sufficient, together with other money which may become legally available and used far such purposes, to pay the principal of and interest on the Note as the same shall come due. The full faith, credit, taxing pawer and resources of the City are pledged irrevacably for the annual levy and collection of those taxes and the prompt payment af that principal and interest . Section 5 . The Note shall be printed or lithagraphed on good bond paper or may be typewritten or multicopied in a form I � consistent with this ordinance and State iaw. The Note shail be I C - 5 - signed by the manual signature of the City Clerk and shall have the seal of the City impressed thereon. Only such Note as shall bear thereon a Certificate of Authentication manually executed by the Note Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Note so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance . The Note shall not be transferable by the purchaser . Section 6 . The Note Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Note which shall at all times be open to inspection by the City. The Note Registrar is authorized to serve as the City' s paying agent for the Note and to carry out all of the Note Registrar ' s powers and duties under this ordinance and Ordinance No. 3755 establishing a system of registration for the City' s bonds and obligations . The Note Registrar shall be responsible for its representa- tions contained in the Registrar ' s Certificate of Authentication on the Note. Section 7 . The City covenants that it will spend the principal proceeds of the Note with due diligence to completion of the purposes specified in this ordinance and will make no use of the proceeds of the Note or of its other money at any time ' during the term of the Note which will cause the Note to be an - 6 - arbitrage obligation within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954 , as amended, and applicable regulations promulgated thereunder . Section 8 . In the event the City shall issue advance refunding bonds pursuant to the laws of the State of Washington, or have money available from any other lawful source, to pay the ' principal of and interest on the Note or such portion thereof included in the refunding plan as the same become due and pay- able and to refund the then outstanding Note and to pay the costs of refunding, and shall have irrevocably set aside in a special fund for and pledged to such payment and refunding, money and/or direct obligations of the United States of America or other legal investments sufficient in amount, together with known earned income from the investments thereof , to make such payments and to accomplish the refunding as scheduled (herein- after called the "trust account" ) , and shall irrevocably make provision for redemption of the Note, then in that case all right and interest of the owner of the Note to be so retired or refunded (hereafter called the "defeased Note" ) in the covenants of this ordinance and, except as hereinafter provided, in the funds and accounts obligated to the payment of such Note shall thereafter cease and become void. Such owner shall thereafter have the right to receive payment of the principal of and interest on the defeased Note from the trust account and, in the event the funds in the trust account are not available for such - 7 - payment, shall have the right to receive payment of the princi- pal of and interest on the defeased Note from the funds and accounts obligated to the payment of such Note. Anything herein to the contrary notwithstanding, the pledge of the full faith, credit, taxing power and resources of the City to the payment of the Note shall remain in full force and effect after the estab- lishing and full funding of such trust account. Subject to the rights of the owner of the Note, the City may then apply any money in any other fund or account established for the payment or redemption of the defeased Note to any lawful purposes as it shall determine. Section 9 . Peoples National Bank of Washington, Seattle, Washington, has submitted an offer to purchase the Note at a price of par, the City to furnish the printed, typewritten or multicopied Note and the approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle, Washington, at the City' s expense. 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 material issued or used in connection with the Note, and bond counsel ' s opinion shall so state. The City Council, deeming it to be in the best interest of the City that such offer be accepted, accepts the same. The Note shall be delivered to Peoples National Bank of Washington immediately upon its execu- tion, upon payment therefor in accordance with such offer . - 8 - , � • f . The principal proceeds received from the sale of the Note shall be deposited into the special account in Fund No . 404 heretofore created in the office of the Finance Director for the purpose of receiving the Note proceeds . Pending such expendi- ture, money in such account may be invested and the investment earnings retained in such account and applied to the purposes for which the Note is issued. Section 10. This ordinance shall take effect from and after its passage and five (5) days following its publication or posting as required by law. PASSED BY THE CITY COUNCIL this 21st day of January, 1985 . �- �ZG�-;� MAXINE MOTOR, City Clerk APPRO�IED BY THE MAYOR this 21st day of January, 1985 . �fOs�lO�n�,,�t.1r,, � `� ' Barbara Y. S�hinpoch, Mayor Approved as to form: .� �i'��U!.c.�r,�`^.�-e G--�-Y'¢''v , � City Attorney ��-� Date of Publication: Januarv 25 , 1985 1077r - 9 - �