HomeMy WebLinkAboutORD 3788 CITY OF RENTON, WASHINGTON
ORDINANCE NO. 3788
AN ORDINANCE of the City of Renton, Washington,
relating to contracting indebtedness; providing for
the issuance, specifying the maturities, maximum
effective interest rate, terms and covenants of a
$240,000 par value "Limited Tax General Obligation
Bond, 1984, " of the City for strictly City purposes
to provide funds with which to pay the cost of
planned equipment purchases of the City; and provid-
ing for the sale of such bond.
WHEREAS, the City of Renton, Washington (the "City" ) , finds
and declares that the City is in need of certain equipment, the
estimated cost of which is $240,000, and the City does not have
available sufficient funds to pay the cost; 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 year 1983 for tax collection in the year
1984 is $2 ,030,798, 999, and the City has outstanding general
indebtedness evidenced by limited tax general obligation bonds
of $3,430,000 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, unlimited tax general obligation bonds in the
principal amount of $7, 140,000 incurred within the limit of up
i
t.
to 2-1/2% of the value of the taxable property within the City
for capital purposes only pursuant to a vote of the qualified
voters of the City, and the amount of indebtedness for which
bonds are herein authorized to be issued is $240,000.
Section 2 . The City shall borrow money on the credit of
the City and issue a negotiable limited tax general obligation
bond evidencing such indebtedness in the amount of $240,000 for
general City purposes to provide the funds to pay the cost of
planned equipment purchases of the City as above described and
to pay the cost of the issuance of the bond. Such general
indebtedness to be incurred shall be 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.
Section 3 . The bond shall be called the "Limited Tax
General Obligation Bond, 1984" (the "Bond" ) , of the City; shall
be dated as of the date of its delivery to the purchaser
thereof; shall be in the denomination of $240,000; shall bear
interest payable on March 31, 1984, and thereafter on the last
business day of each calendar quarter, interest to the maturity
or earlier redemption of the Bond. Interest shall accrue at a
variable rate calculated as a percentage of Rainier National
Bank' s prime rate, adjusted daily with any changes in that prime
rate, which percentage of prime for each calendar year shall be
as follows:
2 -
Year Percentage of Prime
1984 65%
1985 65%
1986 68%
1987 70%
1988 70%
1989 72%
1990 72%
The City Council declares and finds that the fixing of the above
interest rate index is in the best interests of the City.
The principal on the Bond shall be payable in the following
installments on December 31 of each year as set forth below:
Maturity
Amount Year
$28,012 1984
30,015 1985
31, 560 1986
33,590 1987
36,177 1988
38,785 1989
41,861 1990
The last installment will be paid only upon presentment of the
Bond for payment .
If any installment is not paid when due or the last
installment is not paid upon proper presentation of the Bond on
its maturity date, the City shall be obligated to pay interest
at the then applicable Bond rate from and after that installment
date until such installment with interest is paid in full or
until sufficient money for such payment in full is on deposit
in the "General Government Miscellaneous Debt Service Fund" of
the City (the "Debt Service Fund" ) , heretofore created and
d
3 -
established in the office of the Finance Director, and the Bond
has been called for redemption.
The Bond shall be issued only in registered form as to both
principal and interest on books or records (the "Bond Register' )
maintained by the City Finance Director, the Bond Registrar for
the Bond. Such Bond Register shall contain the name and mailing
address of the owner of the Bond. The Bond shall not be assign-
able or transferable by the registered purchaser .
Both principal of and interest on the Bond shall be payable
in lawful money of the United States of America at the Main
Office of Rainier National Bank, the registered purchaser,
solely out of the Debt Service Fund. The Bond is a general
obligation of the City.
Section 4 . The City reserves the right to prepay the
remaining principal of the Bond in whole or in part in inverse
order of installments at any time, at par plus accrued interest
on the principal being prepaid to the date of such prepayment.
Notice of any prepayment shall be given by registered or
certified mail deposited in the United States mail not less than
15 nor more than 30 days, or delivery of the notice not less
than 10 nor more than 30 days, prior to the date fixed for such
prepayment to the Main Office of Rainier National Bank, or its
successor. Interest on any installment so prepaid shall cease
on such prepayment date upon payment of the prepayment amount
into the Debt Service Fund and, if a partial prepayment, mailing
4 -
the same to the owner of the Bond in the manner of interest
payments .
Section 5 . The Bond shall be typed on a lithographed form
in a form consistent with the provisions of this ordinance,
shall contain a payment schedule, shall be signed by the manual
signature of the Mayor and attested by the manual signature of
the City Clerk, and shall have an impression of the seal of the
City thereon.
Only when such Bond shall bear thereon a Certificate of
Authentication in the following form, manually executed by the
Bond Registrar, shall it be valid or obligatory for any purpose
or entitled to the benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This bond is the fully registered City of
Renton, Washington, Limited Tax General Obligation
Bond, 1984, described in the within mentioned ordi-
nance.
By
City Finance Director
Bond Registrar
Such Certificate of Authentication shall be conclusive evidence
that the Bond so authenticated has been duly executed, authenti-
cated and delivered hereunder and is entitled to the benefits of
this ordinance.
Section 6 . The City irrevocably pledges to include in its
budget and to levy taxes annually, within and as a part of the
tax levy permitted to cities without a vote of the people, on
all of the property in the City subject to taxation in an amount
- 5 -
sufficient, together with any other money available therefor, to
pay the principal of and interest on the Bond as the same shall
come due, 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 7 . The City covenants that it will spend the
principal proceeds of the Bond with due diligence to completion
of the purposes specified in this ordinance and will make no use
of the proceeds of the Bond or other funds of the City at any
time during the term of the Bond which, if such use had been
reasonably expected at the date the Bond is issued, would have
caused the Bond to be an arbitrage bond within the meaning of
Section 103(c) of the United States Internal Revenue Code of
1954 , as amended, and the applicable regulations promulgated
thereunder .
Section B . The accrued interest received, if any, upon the
sale and delivery of the Bond shall be paid into the Debt
Service Fund. The principal proceeds received from the sale and
delivery of the Bond shall be paid into the General Government
Capital Improvement Fund and Equipment Rental Fund of the City
and used for the purposes specified in Section 2 of this
ordinance and to pay the costs of issuance and sale of the
Bond. Pending the expenditure of such principal proceeds, the
City may temporarily invest such proceeds in any legal
investment and the investment earnings may be retained in those
6 -
respective funds and expended for the purposes of the Bonds .
All taxes collected for and allocated to the payment of the
principal of and interest on the Bond shall hereafter be
deposited in the Debt Service Fund.
Section 10. 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 Bond or such portion thereof
included in the refunding plan as the same become due and pay-
able and to refund the then outstanding Bond 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 Bond, then in that case all
right and interest of the owner of the Bond to be so retired or
refunded (hereafter called the "defeased Bond" ) in the covenants
of this ordinance and, except as hereinafter provided, in the
funds and accounts obligated to the payment of such Bond shall
thereafter cease and become void. Such owner shall thereafter
have the right to receive payment of the principal of and inter-
est on the defeased Bond from the trust account and, in the
event the funds in the trust account are not available for such
7 -
i
payment, shall have the right to receive payment of the princi-
pal of and interest on the defeased Bond from the funds and
accounts obligated to the payment of such Bond. Anything herein
to the contrary notwithstanding, the pledge of the full faith
and credit and taxing power of the City to the payment of the
Bond shall remain in full force and effect after the establish-
ing and full funding of such trust account. Subject to the
rights of the owner of the Bond, the City may then apply any
money in any other fund or account established for the payment
or redemption of the defeased Bond to any lawful purposes as it
shall determine.
Section 11. Rainier National Bank of Seattle, Washington,
has submitted an offer to purchase the Bond at a price of par
plus accrued interest from the date of the Bond to the date of
its delivery to the purchaser, the City to furnish the printed
or typed bond 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 mate-
rial issued or used in connection with the Bond, and bond coun-
sel ' s opinion shall so state. The City Council, deeming that it
is in the best interest of the City that such offer be accepted,
accepts the same. The Bond shall, therefore, immediately upon
its execution, be delivered to Rainier National Bank of Seattle,
Washington, upon payment therefor in accordance with such offer .
- 8 -
Section 12 . 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 23rd day of January. 1984 .
MAXINE MOTOR, City Clerk
APPROVED BY THE MAYOR this 23rd day of January, 1984 .
Mayor
Approved as to form:
"14 —P"y
Ciff KfV0_rney7
Date of Publication: January 27, 1984
0549r
9 -