Loading...
HomeMy WebLinkAboutORD 3728 • r i Amended by Ordinance #3735 CITY OF RENTON, WASHINGTON ORDINANCE NO. 3728 ` AN ORDINANCE of the City of Renton, Washington, providing for the issuance of $2, 655,000 principal amount of "Limited Tax General Obligation Refunding Bonds, 1983 , " for the purpose of providing the funds to refund, pay and retire the outstanding "Limited Tax General Obligation Bonds, 1982, " of the City; fixing the date, form, denomination, interest rates, maturities, terms and covenants of such bonds; creating a special refunding fund to provide for the refunding operation; providing for and authorizing the purchase of certain obligations out of the proceeds of the sale of such bonds and for the use and application of the money to be derived from such investment; authorizing the execution of an agreement with Peoples National Bank of Seattle, Washington, as Refunding Trustee; providing for the payment and redemption of the outstanding bonds to be refunded; and providing for the sale and delivery of such bonds to Seattle-Northwest Securities Corporation of Seattle, Washington. WHEREAS, pursuant to Ordinance No. 3620, the City issued $2, 300,000 par value of its "Limited Tax General Obligation Bonds, 1982, " (the "1982 Bonds" ) , dated May 1, 1982; and WHEREAS, there are presently outstanding $2, 300,000 par value of 1982 Bonds maturing serially on May 1 in each of the years 1984 through 2002, and bearing interest at various rates from 11. 50% to 13 .75% per annum, and, as provided in Ordinance No. 3620, the City reserved the right to redeem the 1982 Bonds as a whole, or in part in inverse numerical order, on May 1, 1992, or on any semiannual interest payment date thereafter, at the following percentages of par if called on the following dates, plus accrued interest : z Call Dates Call Prices On May 1, 1992, or November 1, 1992 101.0% On May 1, 1993 , or November 1, 1993 101.5% On May 1, 1994 and thereafter 100.0% and WHEREAS, after due consideration, it appears to the City Council that the outstanding 1982 Bonds may be refunded by the issuance and sale of the limited tax general obligation refund- ing bonds authorized hereinthe "Bonds" )) so that a substantial saving will be effected by the difference between the principal and interest cost over the life of the Bonds and the principal and interest cost over the life of the outstanding 1982 Bonds but for such refunding, which refunding will be effected by: (a) The issuance of the Bonds; (b) The payment of the principal of and inter- est on the 1982 Bonds as the same shall become due up to and including May 1, 1992, and the redemption and retirement on May 1, 1992, of all outstanding 1982 Bonds matur- ing on May 1 of each of the years 1993 through 2002; and WHEREAS, in order to effect such refunding in the manner that will be most advantageous to the City and its taxpayers, it Is found necessary and advisable that certain'"Acquired Obliga- tions" (hereinafter identified) , bearing interest and maturing at such time or times as necessary to accomplish the refunding as aforesaid, be purchased out of the proceeds of the sale of the Bonds and other money of the City legally available there- for; and 2 - l WHEREAS, Seattle-Northwest Securities Corporation has offered to purchase such Bonds under the terms and conditions ` hereinafter set forth in the form of a purchase contract; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN, as follows : Section 1. For the purpose of providing a part of the money required to pay the principal of and interest on the 1982 Bonds as the same shall become due up to and including May 1, 1992, and to redeem and retire on May 1, 1992, all outstanding 1982 Bonds maturing on May 1 of each of the years 1993 through 2002, the City shall issue the Bonds in the aggregate principal amount of $2, 655,000. The Bonds shall be designated "Limited Tax General Obligation Refunding Bonds, 1983, " of the City; shall be dated June 1, 1983, shall be in the denomination of $5,000 each; shall be numbered from 1 to 531, inclusive; and shall bear interest at the rates set forth below, payable on May 1, 1984, and semiannually thereafter on each succeeding November 1 and May 1 as evidenced by coupons to be attached to the Bonds representing interest to maturity. If any Bond is not redeemed upon proper presentment at its maturity or call date thereof, the City shall be obligated to pay interest at the coupon rate for each such Bond from and after the maturity or call date until such Bond, both principal and interest, shall have been paid in full or until sufficient money for such payment in full is on deposit in the "Limited Tax General Obligation Refunding - 3 - ' y Bond Fund, 1983" (the "Bond Fund" ) , hereinafter created and such Bond has been duly called for payment by the City Director of Finance ' s publishing notice of such call once at least ten days prior to the call date in the official newspaper of the City or, if there is no official newspaper, in a newspaper of general circulation in the City. Both principal of and interest on the Bonds are to be paid in lawful money of the United, States of America, which at the time of payment shall be legal tender for the payment of public and private debts, at the office of the Director of Finance of the City or, at the option of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. The Bonds shall bear inter- est and mature on May 1 of each year in accordance with the following schedule: Bond Numbers Interest Maturity (Inclusive) Amounts Rates Years 1 to 15 $ 75,000 6 .25% 1984 16 to 28 65,000 6 .75% 1985 29 to 41 65,000 7 .25% 1986 42 to 55 70,000 7.75% 1987 56 to 70 75,000 8 .25% 1988 71 to 87 85,000 8 .50% 1989 88 to 104 85,000 8 .70% 1990 105 to 124 100,000 8.90% 1991 125 to 145 105,000 9. 1.0.% 1992 146 to 168 115,000 9.30% 1993 169 to 193 125,000 9: 50% 1994 194 to 221 140,000 9.70% 1995 222 to 253 160,000 9 .80% 1996 254 to 288 175,000 9.90% 1997 289 to 326 190,000 9.95% 1998 327 to 370 220, 000 10,00% 1999 371 to 418 240,000 10.05% 2000 41Q f;ti 472 4.10, a0u IU. J.U% AUU1 473 to 531 295, 000 10110% 2002 - 4 - The City reserves the right to redeem any or all of the Bonds prior to their stated maturity dates as a whole, or in part in inverse numerical order, on May 1, 1993, or any semi- annual interest payment date thereafter at par plus accrued interest to date of redemption. Notice of such intended redemption shall be published in the official newspaper of the City or, if there is 40 official newspaper, in a newspaper of general circulation in the City, at least once not less than 30 nor more than 45 days prior to the call date and a copy of such notice shall be mailed within the same period by registered or certified mail to the main office of Seattle-Northwest Securities Corporation in Seattle, Washington, or its successor . In addition, such redemption notice shall be sent to Moody' s Investors Service, Inc. , and Standard & Poor ' s Corporation at their offices in New York, New York, but the mailing of such notice to such New York firms shall not be a condition precedent to the redemption of such Bonds. Interest on any Bonds so called for redemption shall cease on such call date upon payment of the redemption price into the Bond Fund. The City further reserves the right to purchase any or all i of the Bonds in the open market at any time at a price not in excess of par plus accrued interest to date of purchase. Section 2 . The City irrevocably pledges to levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City upon 5 - all property in the City subject to 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 Bonds as the same shall accrue, and the full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on the Bonds . Section 3 . The City covenants that it will make no use of the proceeds of the Bonds or of its other money at any time during the term of the Bonds which will cause the Bonds to be arbitrage bonds within the meaning of Section 103 (c) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations promulgated thereunder . Section 4 . The Bonds and coupons shall be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance. The Bonds shall be signed by the facsimile signature of the Mayor, attested by the manual signa- ture of the City Clerk and a facsimile reproduction of the seal of the City shall be printed thereon, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 5 . The Bond Fund is created and established in the office of the Director of Finance of the City. The accrued interest received, if any, upon the sale and delivery of the Bonds shall be paid into the Bond Fund. All taxes collected for and allocated to the payment of the principal of and interest on the Bonds hereafter shall be deposited in the Bond Fund. 6 - Section 6 . There is created and established in the office of the Director of Finance of the City a special fund to be known and designated as the "1983 Limited Tax Bonds Refunding Fund, " (the "Refunding Fund" ) . Immediately upon receipt of payment in full for the Bonds, the accrued interest received shall be deposited in the Bond Fund and the principal proceeds shall be deposited in the Refunding Fund. The funds in the Refunding Fund shall be used immediately upon receipt thereof to discharge the obligations of the City under Ordinance No. 3620 authorizing the issuance of the 1982 Bonds by providing for the payment of the principal of and interest on the 1982 Bonds as hereinafter set forth. To the extent practicable the City shall discharge such obligations by the purchase of United States Treasury Certifi- cates of Indebtedness, Notes and Bonds, State and Local Govern- ment Series and other obligations of the United States of American ( "Acquired Obligations" ) bearing such interest and maturing as to principal and interest in such amounts and at such times as to provide for the payment of the principal of and interest on the 1982 Bonds as the same shall become due up to and including May 1, 1992, and the redemption and retirement on t May 1, 1992, of all outstanding 1982 Bonds maturing on May 1 of each of the years 1993 through 2002; the Acquired Obligations are more particularly described in the purchase contract entered into between Seattle-Northwest Securities Corporation and the - 7 - , •3 City on June 13, 1983, and are set forth in Schedule A attached to the Refunding Trust Agreement . The Acquired Obligations and a beginning cash balance of $50.00 shall be deposited irrevocably with the Peoples National Bank of Seattle, Washington (the "Refunding Trustee" ) . Any amounts described in this section which are not provided for in full by the purchase and deposit of the Acquired Obl,igations shall be provided for by the irrevocable deposit of a portion of the proceeds of the sale of the Bonds or other money of the City with the Refunding Trustee. All the money received as principal of or interest on the Acquired Obligations shall be held by the Refunding Trustee for the credit of the City and the 1983 Refunding Fund shall be held in trust and shall be used for the sole purpose of paying the 1982 Bonds as aforesaid. Any money remaining in the 1983 Refunding Fund after the payment and retirement in full of the 1982 Bonds as aforesaid shall be transferred and paid into the Bond Fund. All of the Acquired Obligations purchased as a part of the refunding plan are dedicated irrevocably to the purpose set forth in this ordinance, and such investments or the earnings or the proceeds 4 therefrom may be used for no other purpose, nor may any of such Investments be liquidated prior to maturity, except that the City reserves the right to substitute other direct United States obligations for any of the Acquired Obligations and to use any savings created thereby for any lawful City purpose if, in the 8 - opinion of Roberts & Shefelman, the City' s bond counsel, the Bonds will remain exempt from federal income taxation under Section 103 (c) of the Internal Revenue Code of 1954, as amended, and applicable regulations thereunder, and if such substitution shall not impair the timely payment of principal of or interest on the 1982 Bonds . Section 7. The City irrevocably calls for redemption all of the outstanding 1982 Bonds on May 1, 1992, at 101% of par plus accrued interest. Such call for redemption shall be irrevocable after the delivery of the definitive Bonds to the initial purchaser thereof . The Refunding Trustee, on behalf of the City Director of Finance, is authorized and directed to give notice of the redemption of the 1982 Bonds in accordance with the provisions of Ordinance No. 3620 and in such bonds . All necessary and proper fees, compensation and expenses of the Refunding Trustee for the Bonds and all other costs inci- dental to the setting up of the escrow to accomplish the refund- Ing of the 1982 Bonds and the costs relating to the issuance and delivery of the Bonds, including bond printing, the premium for MBIA insurance, if purchased, bond counsel ' s fee and other related expenses shall be paid out of the principal proceeds of the Bonds . The proper officers and agents of the City are directed to enter into a Refunding Trust Agreement with the Refunding Trustee setting forth the duties, obligations and responsibilities of the Refunding Trustee in connection with the - 9 - redemption and retirement of the 1982 Bonds as provided herein and stating that such provisions and payment of the fees, compensation and expenses of such refunding trustee are satis- factory to it. In order to carry out the purposes of this ordinance, the Mayor, or her designee, and City Clerk of the City are author- ized and directed to execute a Refunding Trust Agreement and deliver it to the Refunding Trustee. Section 8 . In the event that money and/or Government Obligations, as such obligations are defined in Chapter 39. 53 RCW, as now or hereafter amended, maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money, if necessary) sufficient to redeem and retire the Bonds in accordance with their terms, are set aside in a special fund to effect such redemption and retirement, and such money and the principal of and interest on such Government Obligations are set aside and pledged irrevocably for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds, and the Bonds and the coupons appurtenant thereto shall cease to be entitled to any lien, benefit or security of this F resolution except the right to receive the money so set aside and pledged, and the Bonds and such coupons shall be deemed not to be outstanding hereunder. Section 9 . The City Council finds and determines that the issuance and sale of the Bonds at this time will effect a saving 10 - to the City and its taxpayers and is in the best interest of the City and in the public interest . In making such finding and determination, the City Council has given consideration to the fixed maturities of the Bonds and the 1982 Bonds refunded, the costs of issuance of the Bonds and the known earned income from the investment of the proceeds of sale of the Bonds and other money of the City used in the refunding. plan pending redemption of the 1982 Bonds . The City Council further finds and determines that the money and .Acquired Obligations to be deposited with the Refund- ing Trustee for the 1982 Bonds in accordance with Section 6 of this ordinance will discharge and satisfy the obligations of the City under Ordinance No. 3620 with respect to the 1982 Bonds, and the pledges, charges, trusts, covenants and agreements of the City therein made or provided for as to such 1982 Bonds and that the 1982 Bonds shall no longer be deemed to be outstanding under Ordinance No. 3620 immediately upon the deposit of such money and Acquired Obligations with the Refunding Trustee. Section 10. Seattle-Northwest Securities Corporation of Seattle. Washington, has submitted its written offer in the form of a purchase contract whereunder such purchaser agrees to purchase the Bonds under the terms and conditions as provided in such purchase contract and to purchase on behalf of the City the Acquired Obligations at the prices specified in Schedule A of Exhibit A. which written purchase contract is on file with the City Clerk and is incorporated herein by this reference. The - 11 - City Council is of the opinion that it is in the best interests of the City to accept such offer and such offer is accepted and the City officials are authorized and directed to execute such purchase contract . The Bonds will be printed at City expense and will be delivered to the purchaser in accordance with its purchase offer with the approving legal opinion of Roberts & Shefelinan, munici- pal bond counsel, of Seattle, Washington, relative to the issuance of the Bonds, printed on each bond. 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 Bonds and bond counsel ' s opinion shall so state. The proper City officials are authorized and directed to do everything necessary for the prompt execution and delivery of the Bonds to the purchaser and for the proper application and use of the proceeds of the sale thereof . Section 11. Pending the printing, execution and delivery ' to the purchaser of the definitive Bonds, the City may cause to be executed and delivered to such purchaser a single temporary Bond in the principal amount of $2, 655,000. Such temporary Bond shall bear the same date of issuance, interest rates, principal payment dates and terms and covenants as the definitive Bonds, and shall be issued as a fully registered bond in the name of such purchaser, and shall be in such form as acceptable to such purchaser . Such temporary Bond shall be exchanged for the 12 - definitive Bonds as soon as the same are printed, executed and available for delivery. If the Acquired Obligations are not acquired by the Refunding Trustee and the definitive Bonds are not ready for exchange and delivery within 45 days from the date of delivery of the temporary Bond, such temporary Bond shall be immediately retired at the original purchase price therefor plus accrued interest from money in the Refunding Fund. , PASSED by the City Council this 13th day of June, 1983 . MAXINE E . MOTOR, City Clerk APPROVED BY THE MAYOR, this 13th day of June, 1983 . BARBARA Y. HINPOCfi, Mayor Approved as to form: Ci 4a orne Date of Publication: June 17, 1983 a 13 - EXHIBIT A REFUNDING TRUST AGREEMENT THIS AGREEMENT made and entered into as of the 13th day of June, 1983, by and between the CITY OF RENTON, WASHINGTON, a municipal corporation of the State of Washington (the "City" ) , and Peoples National Bank, Seattle, Washington (the "Refunding Trustee" ) : W I T N E S S E T H• ` Section 1. Recitals. The City now has outstanding $2,300,000 par value of its "Limited Tax General Obligation Bonds, 1982" (the "1982 Bonds" ) , dated May 1, 1982, maturing serially on May 1 of each of the years 1984 through 2002, and having various interest rates from 11.50% to 13 .75% per annum. Pursuant to Ordinance No . 3728 (the "Refunding Bond Ordinance" ) passed by the City Council of the City on June 13t4 1983, the City has determined to pay the principal of and interest on the 1982 Bonds as the same shall become due up to and including May 1, 1990, and to redeem and retire on May 1, 1990, all outstanding 1982 Bonds maturing on May 1 of each of the years 1991 through 2002, out of the proceeds of the sale of its "Limited Tax General Obligation Refunding' Bonds, 1983" (the "Refunding Bonds" ) , and other money of the City legally avail- able therefor . Section 2 . Provisions for Refunding. To accomplish the refunding of all the 1982 Bonds in the manner hereinafter set forth in this section, the City, simultaneously with the deliv- ery of the Refunding Bonds issued pursuant to the Refunding Bond Ordinance, irrevocably agrees to deposit with the Refunding Trustee in trust for the security and benefit of the holders and owners of the 1982 Bonds to be refunded and the Refunding Bonds, the sum of $50.00 in cash, and certain securities, which secu- rities hereinafter are referred to as "Acquired Obligations, " of the types and with amounts, interest rates and maturities as more particularly set forth in Schedule A attached to -this Agreement and by this reference incorporated herein. Such cash and Acquired Obligations, together with the investment income ' therefrom, will be sufficient to provide the funds to pay the principal of and interest on the 1982 Bonds as the same shall become due up to and including May 1, 1992, and to redeem and retire on May 1, 1992, all outstanding 1982 Bonds maturing on May 1 of each of the years 1993 through 2002 . The City reserves the right to substitute other direct United States obligations for any of the Acquired Obligations if, in the opinion of Roberts & Shefelman, bond counsel to the City, the Refunding Bonds will remain exempt from Federal income taxation under Section 103(c) of the Internal Revenue Code of 1954, as amended, and applicable regulations thereunder, and if such substitution shall not impair the timely payment of the 4 principal of or interest on the 1982 Bonds . Section 3 . Provisions Applicable to Refunding. On or before the delivery of the Refunding Bonds, the City agrees that it will cause to be delivered to the Refunding Trustee a state- ment setting forth the amount of interest and principal to be 2 - • ,i paid on each semiannual interest payment date on all of the 1982 Bonds to be paid and refunded as hereinbefore set forth, up through the call date of the 1982 Bonds to be called prior to maturity as aforesaid and the amount of principal required to pay and redeem the 1982 Bonds to be called prior to maturity on their call date. The City by the Refunding Bond Ordinance has called for redemption or repayment all of the 1982 Bonds to be called on the indicated date as above set forth. Such call for redemption or prepayment shall be irrevocable upon the delivery of the definitive Refunding Bonds . The Refunding Trustee, on behalf of the City Director of Finance, shall provide for publication and mailing of the proper notices of such redemption or prepayment in accordance with the applicable provisions of Ordinance No . 3620 and in the 1982 Bonds . The cost of such publication and mailing is included in the fee of the Refunding Trustee. Provision for giving of such notices of redemption or prepayment has been made irrevocably by the City. Section 4 . Disbursements by Refunding Trustee. The Refunding Trustee shall present for payment on the due date thereof the Acquired Obligations so deposited and shall apply the proceeds derived therefrom in accordance with the provisions of this section. Money shall be transferred by the Refunding Trusteeito the City Finance Director in amounts sufficient and in time to pay the principal of and interest on the 1982 Bonds coming due on _or 3 - before each respective payment date and the redemption price to be payable with respect to the 1982 Bonds on their call date as aforesaid. Section 5 . Non-reinvestment of Funds; Custody and Safekeeping of "Acquired Obligations" . All money deposited with the Refunding Trustee or received by the Refunding Trustee as maturing principal or interest on the Acquired Obligations prior to the time required to make the payments hereinbefore set forth shall be held by the Refunding Trustee and shall not be rein- vested, unless with such reinvestment the Refunding Bonds will remain exempt from federal income taxation. All income derived from the Acquired Obligations and any money deposited with the Refunding Trustee (which money is not required to make the payments hereinbefore required to be made) shall be paid to the City Finance Director for the credit of the "Limited Tax General Obligation Refunding Bond Fund, 1983" (the "Bond Fund" ) , as and when realized and collected for use and application as other money deposited in the Bond Fund. For as long as any of the 1982 Bonds is outstanding, on or before the 10th day of each month, commencing with the month of August, 1983, the Refunding Trustee shall render a statement as of the last da of the ` Y preceding month to the City Finance Director, which statement shall set forth the Acquired Obliga- tions which have matured and the amounts received by the Refund- ing Trustee by reason of such maturity, the investment income received, and the amounts paid to the City Finance Director. for 4 - 4 credit to the "1983 Limited Tax Bonds Refunding Fund" (the "Refunding Fund" ) created and established by the Refunding Bond ` Ordinance, and the dates of such payment, for' the payment of the maturing principal of and interest on the 1982 Bonds as the same shall become due and payable, and the final payments of the redemption price therefor on the call date for the 1982 Bonds to be called as herein set forth and any other transactions of the RefundingTrustee ` pertaining to its duties and obligations as set forth herein. All Acquired Obligations, money and investment income deposited with or received by the Refunding Trustee pursuant to this Agreement shall be subject to the trust created by this Agreement, and the Refunding Trustee shall be liable for the preservation and safekeeping thereof . Section 6 . Duties and Obligations of Refunding Trustee. The duties and obligations of the Refunding Trustee shall be as prescribed by the provisions of this Agreement, and the Refund- ing Trustee shall not be liable except for the performance of its duties and obligations as specifically set forth herein and to act in good faith in the performance thereof and no implied duties or obligations shall be incurred by such Refunding Trustee. other than those specified therein. The Refunding Trustee may consult with counsel of its choice (except as provided below) and the opinion of such counsel shall be full and complete authorization and protection in respect to any action taken or not taken or suffered by it 5 - hereunder in good faith and in accordance with the opinion of such counsel . For any question relating to the tax exempt status of the Refunding Bonds, the Refunding Trustee must consult with Roberts & Shefelman, bond counsel to the City. Provisions for the fees, compensation and expenses of the Refunding Trustee satisfactory to it have been made. Section 7 . Effect of Non-Delivery of Definitive Bonds . The Bond Ordinance provides that if the Acquired Obligations are not acquired by the Refunding Trustee and the definitive Bonds are not ready for exchange and delivery within 45 days from the date of delivery of the temporary Bond, such temporary Bond shall be immediately retired at the original purchase price therefor plus accrued interest from money in the Refunding Fund . CITY OF RENTON, WASHINGTON By .0 S Mayor ATTEST: r I) J irJ City Clerk PEOPLES NATIONAL BANK a By 0(4-cc-�c 0290r 6 - Limited Tax General Obligation Refunding Bonds, 1983 Schedule A: Acquired Obligations All Acquired Obligations ations are U.S. Treasury-Securities State and Local Government Series. Obligation Amount Coupon Due Price Certificates of Indebtedness $ 67,800 0.00% 11/1/83 67,800 Certificates of Indebtedness 470100 0.00 5/1/84 479100 Notes 159100 0.00 11/1/84 15,100 Notes 509100 0.00 5/1/85 509100 Notes 129700 0.00 11/1/85 129700 Notes 52,700 7.12 5/1/86 529700 Notes 11,800 9.90 11/1/86 119800 Notes 57,400 10.00 5/1/87 579400 Notes 129200 10.10 11/1/87 12,200 Notes 62,800 10.20 5/1/88 629800 Notes 12,500 10.20 11/1/88 12,500 Notes 73,200 10.30 5/1/89 739200 Notes 12,800 10.40 11/1/89 12,800 Notes 78,500 10.40 5/1/90 789500 Notes 139100 10.40 11/1/90 13,100 Notes 889800 10.50 5/1/91 889800 Notes 139300 10.50 11/1/91 13,300 Notes 1,932,200 10.50 5/1/92 1,932,200 2,614,100 2,614,100 e