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HomeMy WebLinkAboutORD 3687 CITY OF RENTON, WASHINGTON ORDINANCE NO. 3687 AN ORDINANCE authorizing the issuance of tax anticipation notes for the purpose of paying City expenses pending the receipt of general city taxes; creating an anticipation note fund and an operating cash requirements fund; and providing for the sale of those notes to Seattle-Northwest Securities Corporation of Seattle, Washington. j THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN, as follows: Section 1. The City Council of the City of Renton, Washington (the "City") , finds that periodic collections of sales, excise and general ad valorem property taxes and other revenues in 1983 will not be sufficient to meet necessary City expenses as they are incurred and that it is in the best inter- est of the City to contract short-term debt pursuant to Chapter 216, Laws of 1982 (Chapter 39.50 RCW) , to pay those expenses, such debt to be paid from taxes collected by the City prior to January 31, 1984. Section 2. The assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the calendar year 1982 is $2,039,142,452, and the City has $3,110,000 of outstanding general indebtedness evi- denced by limited tax general obligation bonds incurred within the limit of up to 3/4 of 1% of the value of the taxable prop- erty within the City permitted for general municipal purposes without a vote of the qualified voters therein and unlimited tax general obligation bonds in the principal amount of $7,680,000 within the limit of up to 2-1/2% of the value of the taxable property within the City for capital purposes issued pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which the Notes are herein authorized to be issued is $2,925,000. Section 3. There is created in the office of the City Finance Director a special fund called the "Tax Anticipation ' Note Fund, 1983" (the "Note Fund") . Pending the collection of sales, excise and general ad valorem property taxes to be levied for collection in 1983, the City shall issue and sell $2,925,000 of its tax anticipation notes to be designated "Tax Anticipation Notes, 1983" (the "Notes") . The Notes shall be dated January 1, 1983; shall be in a single denomination or such denominations as determined by the City's Director of Finance to be in the City's best interest; shall mature January 31, 1984; shall be in bearer form if Congress amends Section 103 (j) of the Internal Revenue r Code of 1954, as amended, to permit the issuance of bearer obli- gations at the time the Notes are issued, otherwise, the Notes shall be registered as to both principal and interest; and shall bear interest at the rate of 6 . 875% per annum from the date of issuance, payable at maturity, with full obligation on the part of .the City to pay interest at the same rate from and after maturity until the Notes with interest are paid in full or until sufficient money for such payment in full is on deposit in the Note Fund and the Notes have been called for redemption. Both 2 - **6. 875% = 6 7/8% I the principal of and interest on the Notes shall be payable at the office of the City Finance Director in Renton, Washington, or, at the option of the payee, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. The Notes shall not be subject to redemption prior to their maturity date. The City Council declares and finds that the fixing of the interest rate at 6.875% per annum is in the best interests of the City. The Notes shall be a general obligation of the City. Section 4. The Notes shall be paid solely from the Note Fund. The. City irrevocably pledges to budget and levy sales, excise and general ad valorem property taxes within the consti- tutional and statutory tax limitations provided by law, without a vote of the electors of the City, upon all activities, trans- actions and property in the City subject to such taxation in an amount sufficient, together with other money legally available and to be used therefor, to pay the principal of and interest on the Notes on January 31, 1984. The City further irrevocably pledges to deposit in the Note Fund on or prior to December 31, 1983 proceeds of such taxes and other money in an amount, together with interest earnings thereon, sufficient to pay the principal of and interest on the Notes when due and to maintain such money in the Note Fund until the Notes are paid, both prin- cipal and interest, in full. The full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on the Notes. 3 - li i . Section 5. The Notes shall be printed or typed on good bond paper in a form consistent with the provisions of this ordinance Ind shall be signed by the manual signature of the City Finanee Director under the seal of the City. If the Notes are issued in registered form, the City Finance Director shall establish and maintain a registration record for the Notes where the name and address of each payee of the Notes and the principal amount and number of the Notes held r � by each payee shall be recorded. Payment of principal of and interest of the Notes shall be made only to the registered payees of 'the Notes. The Notes may be transferred only if endorsed by the registered payee thereof and surrendered to the I City Finance Director for transfer to a designated transferee or transfereels. Notes so surrendered for transfer may be reissued in one or more denominations to the designated transferee or transferees whose names and addresses shall be entered in the I City Finance Director 's Note registration record together with the principal amount and number of the Notes transferred to him or her. All reissued Notes shall be in a form substantially identical to that of the Notes surrendered and shall be treated in all reIpects as if they had been originally issued. Sect iion 6. The City finds that the principal amount of the Notes doeL not exceed the City's maximum anticipated cummulative cash flow Ideficit (as that concept is defined in Section 1.103.14 (c) of the Regulations to the Internal Revenue Code of 1954, as amended) to be financed in 1983 from its sales, excise 4 _ and general ad valorem property taxes and other revenues to be collected i� 1983. Section 7. Seattle-Northwest Securities Corporation of Seattle, Washington, has submitted a written offer to purchase the Notes at a price of par plus accrued interest to the date of delivery of the Notes, the City to furnish the printed or type- written Notes and the unqualified approving legal opinion of Messrs. Roberts & Shefelman (Roberts, Shefelman, Lawrence, Gay & Moch) , municipal bond counsel of Seattle, Washington. Bond counsel shall not be required to review or express any opinion concerningithe completeness or accuracy of any official state- ment, offering circular or other sales material relating to the issuance of the Notes or otherwise used in connection with the Notes and bond counsel' s opinion shall so state. The City Council, tieing of the opinion that it is in the best interests of the City to accept such offer, accepts the same. The Notes shall, therefore, immediately upon their execution be delivered to the purchaser or payees thereof upon payment for the Notes in accordance with such offer. Section 8. There is created in the office of the City Finance Director a special fund called the "Operating Cash Requiremelnts Fund, " into which fund the principal proceeds and accrued interest, if any, received from the sale of the Notes shall beldeposited. Pending the expenditure of such proceeds in payment df expenses of the City, such proceeds may be invested in any legal investment and the investment income received may - 5 - be retainedin the Operating Cash Requirements Fund and expended for the purposes of such fund. Any proceeds of the Notes or investment earnings therefrom remaining in the Operating Cash Requirements Fund following the deposit into the Note Fund required by Section 4 above may be transferred to the City's Current Expense Fund and expended for the purposes of such fund. PASSED by the City Council and APPROVED by the Mayor of the City of Renton, Washington, at a regular open public meeting r thereof, this 20th day of December, 1982. Barbara Y. Shinpoch, Mayor ATTEST: City Clerk Maxine E. Motor APPROVED A5 TO FORM. City Attorney Date of Publication: December 24., 1982 0148r 6 -