The URL can be used to link to this page

Home My WebLink AboutORD 3880 � • ,� . � `�? , `� . � ' . . . � CITY OF RENTON, WASHINGTON ORDINANCE N0. 3880 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 Ehrlich- Bober & Co . , Inc . , of New York, New York. 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 1985 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 23, 1986, 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 1984 for tax collection in the year 1985 is $1, 852, 397,097, and the City has $4 , 153,488 of outstand- ing 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 purposes without a vote of the qualified voters therein and ,� � unlimited tax general obligation bonds in the principal amount '� of $6, 890,000 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 Notes are herein authorized to be issued is $2.700,000. Section 3 . There is created in the office of the City Finance Director a special fund called the "Tax Anticipation Note Fund, 1985" (the "Note Fund" ) . Pending the collection of sales, excise and general ad valorem property taxes to be levied for collection in 1985 and other revenues anticipated to be received in 1985, the City shall issue and sell its $2,700,000 tax anticipation notes to be designated "Tax Anticipation Notes, 1985" (the "Notes" ) . The Notes shall be dated January 24, 1985 , shall mature January 23, 1986; and shall be numbered from 1 to 148, inclusive. Notes Nos . 1 to 50, inclusive, shall be in the denomination of �5.000 each, and Notes Nos . 51 to 148, inclu- sive, shall be in the denomination of $25,000 each. The Notes shall bear interest at the rate of 6 .22� per annum, computed on the basis of a 360-day year of twelve 30-day months, 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 by the City' s giving five days ' written n�tice to Ehrlich-Bober & Co. , Inc . , at its main - 2 - � . , � , , office in New York, New York, or to its successor . The Notes shall not be subject to redemption prior to their maturity date. Both principal of and interest on the Notes shall be payable in lawful money of the United States of America at the office of the City Finance Director in Renton, Washington, olel out of the Note Fund . The Notes are eneral obli ations s y 9 J of the City. The City Council declares and finds that the fixing of the above interest rate is in the best interests of the City. Section 4 . The City irrevocably pledges to budget and levy sales, excise and general ad valorem property taxes within the constitutional and statutory tax limitations provided by law, without a vote of the electors of the City, upon all activities, transactions 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 23 , 1986 . The City further irrevocably pledges to deposit in the Note Fund on or before December 23, 1985, 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 Note when due and to maintain such money in the Note Fund until such princpal and interest are paid in full as they come due. 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 - . '. � ' , ' , ' Section 5 . The Notes shall be printed on lithographed or �I good bond paper in a form consistent with the provisions of this ordinance shall be signed by the manual signature of the City Finance Director and a facsimile reproduction of the seal of the City shall be printed thereon. Section 6 . The City Council finds that the principal amount of the Notes does not exceed the City' s maximum antici- pated cummulative cash flow deficit (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 1985 from its sales, excise and general ad valorem property taxes and other revenues to be collected in 1985 and covenants that it will spend the principal proceeds of the Notes with due dili- gence to completion of the purposes specified in this ordinance and will make no use of the proceeds of the Notes or other funds of the City at any time during the term of the Notes which will cause the Notes to be arbitrage obligations within the meaning of Section 103 (c) of the United States Internal Revenue Code of 1954 , as amended, and the applicable regulations promulgated thereunder . The City Council further finds that there is now on deposit in the Tax Anticipation Note Fund, 1984 , created by Ordinance No. 3786, sufficient money and investments to redeem, both principal and interest, the outstanding Tax Anticipation Notes, 1984 , of the City on January 31, 1985, and that none of the - 4 - . ', � - � , ' . proceeds of the Notes authorized by this ordinance shall be used to redeem those 1984 notes . Section 7 . Ehrlich-Bober & Co . , Inc . , of New York, New York, has submitted a written offer to purchase the Notes at a price of par, the City to furnish the printed Notes and the unqualified approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle, Washington. Bond counsel shall not be required to review or express any opinion concern- ing the completeness or accuracy of any official statement, offering circular or other sales material relaing to the issu- ance of the Notes or otherwise used in connection with the Notes and bond counsel ' s opinion shall so state. The City Council, being of the opinion that it is in the best interests of the City to accept such offer, accepts the same. The Notes, there- fore, immediately upon their execution shall be delivered to the purchaser thereof upon payment for the Notes in accordance with such of f er . Section 8 . There heretofore has 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 Notes 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 - 5 - � , �� , � . - . . General Obligation Refunding Bond, General Government Miscellan- eous 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 1985 . Pending the expenditure of such proceeds in payment of expenses of the City, such proceeds may be invested in any leqal 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 a nd retained therein until needed for the purposes provided in this section. Any proceeds of the Notes or investment earnings therefrom remaining in the Operating Cash Requirements Fund following the deposits 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. ', - 6 - I l , � • � , ' , , • � . PASSED BY THE CITY COUNCIL this 14th day of January, � 1985 . `�..��J �'�a� ' Maxine E. Motor, City Clerk APPROVED BY THE MAYOR this 14th day of January, 1985 . �.b�.t��• �Q.�.�.Dp�� Barbara Yy Shinpdch, Mayor Approved as to form: /"�`�..ti�,�-�-� ��,. Lawrence J. T�]ar(�en, City Attorney Date of Publication: January 18 , 1985