HomeMy WebLinkAboutORD 3786 1
CITY OF RENTON, WASHINGTON
ORDINANCE NO. ,3786
AN ORDINANCE authorizing the issuance of tax
anticipation notes for the purpose of paying City
expenses pending the receipt of general city taxes
and revenues; creating a note redemption fund; and
providing for the sale of those notes to Peoples
National Bank of Washington.
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 1984 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 Chapters
39 .50 and 39.46 RCW, to pay those expenses, such debt to be paid
on January 31, 1985, from taxes collected by the City.
Section 2 . The assessed valuation of the taxable property
of the City as ascertained by the last preceding assessment for
City purposes for the year 1983 for tax collection in the year
1984 .is $2,030,798,999, and the City has $3,430,000 of outstand-
ing general indebtedness evidenced by limited tax general obli-
gation bonds 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 purposes without a vote of the qualified
voters therein and unlimited tax general obligation bonds in the
principal amount of $7, 140,000 within the limit of up to 2-1/2%
of the value of the taxable property within the City for general
capital purposes issued pursuant to a vote of the qualified
voters of the City, and the amount of indebtedness for which the
Note is herein authorized to be issued is $2,400,000.
Section 3 . There is created in the office of the City
Finance Director a special fund called the "Tax Anticipation
Note Fund, 1984" (the "Note Fund" ) . Pending the collection of
sales, excise and general ad valorem property taxes to be levied
for collection in 1984 and other revenues anticipated to be
received in 1984, the City shall issue and sell its $2,400,000
tax anticipation note to be designated "Tax Anticipation Note,
1984" (the "Note" ) . The Note shall be dated as of the date it
is delivered to the original purchaser thereof; shall be regis-
tered as to both principal and interest; and shall bear interest
from the date of issuance at a per annum rate equal to 0.25%
greater than the A-1/P-1 30-day rate-early for tax exempt
commercial paper (appearing on Munifacts) set two working days
prior to the date of delivery of the Note to the original pur-
chaser thereof and adjusted on February 1, 1984, and on the
first day of each month thereafter to such A-1/P-1 30 day rate-
early for tax exempt commercial paper set two working days prior
to each month. Interest shall be paid on the last day of each
calendar month to maturity of the Note, with full obligation on
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the part of the City to pay interest at the same index rate from
and after maturity until the Note with interest is paid in full
or until sufficient money for such payment in full is on deposit
in the Note Fund and the Note has been called for redemption by
giving five days ' written notice. The Note shall not be subject
to redemption prior to its maturity date.
The Note shall be issued only in registered form as to both
principal and interest on books or records (the "Note Register" )
maintained by the City Finance Director, the Bond Registrar for
the Note. Such Bond Register shall contain the name and mailing
address of the owner of the Note. The Note shall not be assign-
able or transferable by the registered purchaser .
Both principal of and interest on the Note shall be payable
in lawful money of the United States of America at the Main .
Office of Peoples National Bank of Washington, the registered
purchaser, solely out of the Note Fund. The Note is a general
obligation of the City.
The City Council declares and finds that the fixing of the
above interest rate index is in the best interests of the City.
Section 4 . The Note shall be paid solely from the Note
Fund, except that interest through November 30, 1984, may be
paid from the Operating Cash Requirements Fund referred to in
Section 8 of this ordinance. The City irrevocably pledges to
budget and levy sales, excise and general ad valorem property
taxes within the constitutional and statutory tax limitations
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electors of the CitY$
ut a vote of the in the City
tho t
law. wi and property
�=ovided by ions together with
all activities.
transact amount sufficient.
,Pon pay
an efor . to
in then
to such taxation to be used
subject able and 1985 •
ally avail the Note on January 31.
money leg the Note Fund
I, other on
Principal of and interest
es to deposit in
the P 1ed9 on or before
City further irrevoCablY P a meat date and
The in an
interest pay other money
on or Prior to each taxes and to
Of such sufficient
1984. proceeds theLeon.
December 31, interest earnings and to
her with he Note when due
et n t d
tog t o 1 an
t. est a
n r
ou to cip
am d in ria
n
incipal of a d until such P
he pr a gun except
pay t come due.
money in the Not respectively
maintain such they
main a Paid in full as through November
interest ar depositing interest Payments ay such interest
t in lieu of the City may P he full
that T
t d,
Note Fun und•
30. 1984 . in the ting Cash ReQuirements g
from the opera of the City are pledged irrevocably
directly Note •
credit and resources of and interest °n
the
faith. bond
ipal ed on good
payment of the PEI"e sh printed
or typed
for the P The Not all be P visions of this ordinance
$eCtion 5 • th the pro
In a form consistent wi al signature of the City Finance
Paper the manual
and shall be signed by
the City' a Certificate Of
Director under the seal of thereon
Dir Note shall bear cuted by the
Only when such manually executed form.
ticatiQn in the following atony for any purpose
11 it be valid or oblig
Authen
Bond
Registrar . shall this ordinance'
or entitled to the benefits of
_ 4
1
IFICATE OF AUTUB14TICAT10N
CERT City of
e is the fully registered 1984,
ation Note.
This not n. Tax AD do ed Ordinance -
,,,,ton. tion
ed enti
Renton, Wash the within m
described in BYnce Director
City Fina
coni Registrar
e i
s
9
hall be conclusive evidence
Authentication s ted. authenti
d has been duly executed.
Such Certificate of
titled to the benefits of
that the Note so authenticate
th and is en
ted and delivered hereunder
ca principal
that the
this ordinance • council finds
The City antics^
Se Ction 6 • of exceed the CitY� s maximum
the Note does n s that concept is defined
amount °f deficit (a
o of
am d 1
ow internal
tiVe cash flow Int
the
gated cummula of the ReQulations to from
In $ection 1.103 .14(c to be finanCed in 1984
1954. as amended) ertY taxes and
Revenue Code °f valorem Prop
and general ad -Y—.�-'-- that it
its sales, excise 1984 and covenants
collected in diligence
to be colla the Note with due
other revenues proceeds of
spend the principal P ied in this ordinance and
will spa ores specified other funds of
7etton °f the Purp the Note Or
to comp ceeds of if such
the Pro of Note which,
will make n° use ofthe
the term issued.
the City at any
time during ed at the date the Note is
arbitrage obligation within
use had been reasonably expected
e an a
caused the Note to b States Internal
would have the united
Of Section 103(c) of applicable regulations
the meaning the
Revenue Code
Of 1954. as amendeda
and
promulated thereunder .
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i
1
The City
council further finds that there is now on deposit
in the Tax Anticipation Note Fund, 1983, created by
Ordinance
No. 3687 , sufficient money ne and investments to
redeem, both
Anticipation Notes,
principal and interest, the outstanding Tax e
January 31. 1984. and that none of th
1883, of the Cite on ce shall be used
proceeds of the Note authorized by
this
ora
inan
to redeem those 1983 notes .
Section 7 . Peoples National Bank of Washington has sub-
matted a written offer to purchase the Note at a price of par,
the City to furnish the printed or typewritten Note and the
of Roberts & Shefelman,
unqualified approving legal opinion
municipal bond counsel of Seattle. Washington. Bond. counsel
mP
shall not be required to review or express any opinion concern-
in the completeness or accuracy of any official statement,
g to the issu-
offering circular or other sales material relating
se used in connection with the Note
ance of the Note or otherwi
Council,
and bond counsel ' s opinion shall so state. The City
being of the opinion that it is in the best interests of the
City to accept
such offer, accepts the same. The Note shall,
therefore. immediately upon its execution be delivered to the
purchaser thereof upon payment for the Note in accordance with
such offer . in accordance with the offer to purchase, at the
time of the Note delivery
the City shall pay the purchaser
15,000 representing fees enabling the purchaser to sell commer-
articipation certificates in the Note and therefore
cial paper P
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making possible the lower commercial paper interest rate on the
Note.
Section 8 . There has heretofore been created in the office
of the City Finance Director a special fund called the "Operat-
ing Cash Requirements Fund, " into which fund the principal
proceeds and accrued interest, if any, received from the sale of
the Note shall be deposited. Money in that fund shall be used
to pay cash flow deficits in the Current Expense, Park, Street,
Library, Contingency, 1978 Limited General Obligation Bond, 1983
Limited General Obligation Refunding Bond, 1983 Unlimited
General Obligation Refunding Bond, Unemployment Compensation and
General Government Miscellaneous Debt Service funds and such
other funds (collectively the "City Funds" ) resulting from
budgeted expenditures pending the receipt of sales, excise and
general ad valorem property taxes and other revenues to be
collected in 1984 . Pending the expenditure of such proceeds in
payment of expenses of the City, such proceeds may be invested
in any legal investment and the investment income received may
be retained in the Operating Cash Requirements Fund and expended
for the purposes of that fund. At such time as any of the City
Funds have adequate cash balances, sufficient money shall be
transferred back to the Operating Cash Requirements Fund and
retained therein until needed for the purposes provided in this
section. Any proceeds of the Note or investment earnings there-
from remaining in the Operating Cash Requirements Fund following
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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
thereof . this 9th day of January, 1984 .
Barbara Y. Shinpoc , Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
Z;P12
C r y
Date of Publication: January 13, 1984
0552r
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