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HomeMy WebLinkAboutORD 3883 . ` , � . .• • . . . CITY OF RENTON, WASHINGTON ORDINANCE N0. 3883 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 $430,000 par value of "Limited Tax General Obligation Bonds, 1985, " 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 and delivery of such bonds to Rainier National Bank of Seattle, Washington. WHEREAS, the City of Renton, Washington (the "City" ) , finds � d declares that the Cit is in need of certain equipment, the an Y estimated cost of which is $430,000, and the City does not have available sufficient funds to pay that 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 calendar year 1984 for collection in the year 1985 is $1, 852 , 397,097, and the City has $6, 853,488 of outstanding 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, �I unlimited tax general obligation bonds in the principal amount ' of $6, 890,000 incurred within the limit of up 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 $430,000. The City further plans to issue and sell in the immediate future limited tax general obligation bond anticipation notes in the amount of $3, 965,000. Section 2 . The Cit shall borrow money on the credit of Y the City and issue negotiable limited tax general obligation bonds evidencing such indebtedness in the amount of $430,000 for general City purposes to provide the funds to pay the cost of acquiring certain rolling stock, computer hardware and other planned equipment purchases and to pay the cost of issuance, sale and administration of the bonds . 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 bonds shall be called "Limited Tax General Obligation Bonds, 1985" (the "Bonds" ) ; shall be dated January 1, 1985; shall be in the denomination of $5,000 each or any integral multiple thereof within a single maturity; shall be numbered separately and in the manner and with any additional desi nation as the Bond Registrar (collectively, the fi scal g agencies of the State of Washington located in Seattle, Washington, or New York, New York) deems necessary for the - 2 - r .. _...-,,.._,� , � purpose of identificatian; and shall bear interest at the rates � set forth below, computed on the basis of a 364-day year of I � twelve 30-day months, payable on January 1, 1985, and semi- annually thereafter on �ach succeeding July 1 and January l, I and, if any Bond is not redeemed upan proper presentment on its , maturf�� or call date, with full obligati�n an the part of the � City ta pay� interest at the same rate from and after the matur- I ity ar call date until that Bond, with interest, is paid in full � or sufficient money for such payment is on depasit in the City' s "Genera� Government Miscellaneaus Debt Service Fund" (the "Debt ; Service Fund" ) heretafore created and and established in the office of the Finance Director, and that Bond has been called � far payment in the manner set forth in this ordinance . The � Bonds shall bear interest and mature on January 1 in the years � and amounts as follows : � Maturity Interest I Years Amounts Rates 19$5 $50,000 6 .00� � 2987 55,QQ{} 7 .Q0 ; 1988 55+004 7 . 5p 1989 64,Q(74 8.00 1990 65,004 8 .25 1991 70,Oq0 8 . 50 , 1992 75,000 8 .75 Upon surrender thereof ta the Band Registrar, Bonds are interchangeable for Bonds in any authorized denominatian of an equal aggregate principal amount and of the same maturity. Bonds may be transferred only if endorsed in the manner provided I I - 3 - � 4 , - � thereon and surrendered to the Bond Registrar . Such exchange or transfer shall be without cost to the owner or transferee. The Bonds shall be issued only in registered form as to both principal and interest on books or records maintained by the Bond Registrar (the "Bond Register" ) . The Bond Register shall contain the name and mailing address of the owner of each Bond or nominee of such owner and the principal amount and number of Bonds held by each owner or nominee . Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be paid by check or draft mailed to the registered owners or nominees at the addresses appearing on the Bond Register on the 15th day of the month preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at the principal offices of the Bond Registrar . Bonds maturing in the years 1986 through 1990, inclusive, shall be issued without the right or option of the City to redeem the same prior to their respective maturity dates . The City reserves the right to redeem Bonds maturing on or after January 1, 1991, as a whole, or in part in inverse order of maturity (and by lot within a maturity in such manner as the Bond Registrar shall determine) on January 1, 1990, and on any interest payment date thereafter, at par plus accrued interest to the date fixed for redemption. Portions of the principal - 4 - amount of any Bond, in amounts of $5,000 or any integral multiple of $5,000, may be redeemed . If less than all of the principal amount of any Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar , there shall be issued to the registered owner, without charge therefor, a new Bond or Bonds, at the option of the registered owner, of like maturity in the total principal amount of the unredeemed portion of such Bond in any of the denominations authorized by this ordinance. Notice of any such intended redemption shall be given not , less than 30 nor more than 60 days prior to the date fixed for redemption by first class mail, postage prepaid, to the regis- tered owner of any Bond to be redeemed at the address appearing on the Bond Register . The requirements of this section shall be deemed to be complied with when notice is mailed as herein provided whether or not it is actually received by the owner of any Bonds . The interest on the Bonds so called for redemption shall cease on the date fixed for redemption unless such Bond or Bonds so called are not redeemed upon presentation made pursuant to such call . In addition, such redemption notice shall be mailed within the same period, postage prepaid, to Rainier National Bank at its principal place of business in Seattle, Washington, or its successor, and to Moody' s Investors Service, Inc . , and Standard & Poor ' s Corporation at their offices in New York, New York, or their successors, but such mailing to those - 5 - firms shall not be a condition precedent to the redemption of such Bonds . The City also reserves the right to purchase any of the Bonds on the open market at any time at a price not in excess of par plus accrued interest to date of purchase . Section 4 . The Bonds shall be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance, shall be signed by the Mayor and the City Clerk, both of whose signatures shall be in facsimile, and shall have a facsimile reproduction of the seal of the City printed thereon. Only such Bonds as shall bear thereon a Certificate of Authentication in the following form, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This bond is one of the fully registered City of Renton, Washington, Limited Tax General Obligation Bonds, 1985 , described in the Bond Ordinance. Washington State Fiscal Agency Bond Registrar By: Authorized Officer Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly exe- cuted, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. - 6 - r ._.......-....._..� ( � In case efther of the afficers who shall have executed the Bonds shail cease to be such officer ar officers a� the City �' before the BanQs so signed shall have been authenticated or '� delivered by the Bond Registrar, or issued by t�he City, such Bonds nevertheless may be authenticated, delivered and issued and upan such authenticatf.on, delivery and issue, shall be as � binding upan the City as thauqh those who signed the same had continued to be such officers of the City. Any Bond also may be , signed on behalf of the City by such persons as at the actual � date af execution af such Bond shall be proper officers of the � City althauqh at the original date af such Bond any such persan shall not have been such of�icer of the City. Section 5 . The Bond Re istrar shall kee g p, or cause to be kept, at its principal cargarate trust office, suf�icient boc�ks for the registration and transfer of the Bonds, whlch shall at all times be open to inspectian by the City. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the � pravisi.ans of �uch Bonds an@ this Qrdinance and to carry out all Iof the Bond Registrar ' s pnwers and duties under this ordinance. C The Bond Registrar shall be responsible for its represen- � tatians contained in the Registrar 's Certificate af Authenti- f icatian on the Bonds. The Bond Registrar may become the owner of � Bonds with the same rights it would have if it were not the Bond � Registrar and, to the extent permitted by law, may act as � I � I - 7 � � L depository for and permit any of its officers or directors to act as a member of , or in any other capacity with respect to, any committee formed to protect the rights of Bond owners . Section 6 . The Bonds shall be negotiable instruments to the extent provided by RCW 62A. 8-102 and 62A.8-105 . Section 7 . The City irrevocably pledges to levy taxes , annually, within the constitutional and statutory tax limita- ovided b law without a vote of the electors of the tions pr y City, upon 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 annual levy and collection of those taxes and the prompt payment of that principal and interest . Section 8 . The City covenants that it will spend the principal proceeds of the Bonds with due diligence to completion of the purposes specified in this ordinance and 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 9 . The accrued interest received, if any, upon the sale and delivery of the Bonds shall be paid into the Debt - 8 - ' Service Fund. The principal proceeds received from the sale and delivery of the Bonds 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 Bonds . Pending the expenditure of such principal proceeds, the City may temporarily invest such proceeds in any legal invest- ment and the investment earnings may be retained in those 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 Bonds hereafter shall 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 Bonds or such portion thereof included in the refunding plan as the same become due and payable and to refund all such then outstanding Bonds and to pay the costs of refunding, and shall have set aside irrevocably 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 make irrevocable - 9 - provision for redemption of such Bonds, then in that case all right and interest of the owners of the Bonds to be so retired or refunded (hereinafter collectively called the "defeased Bonds" ) in the covenants of this ordinance and, except as hereinafter provided, in the funds and accounts obligated to the payment of such Bonds shall thereafter cease and become void. Such owners shall thereafter have the right to receive payment of the principal of and interest on the defeased Bonds from the trust account and, in the event the funds in the trust account are not available for such payment, shall have the right to receive payment of the principal of and interest on the defeased Bonds from the funds and accounts obligated to the payment of such Bonds . Anything herein to the contrary notwithstanding, the pledge of the full faith and credit of the City to the payment of the Bonds shall remain in full force and effect after the establishing and full funding of such trust account . Subject to the rights of the owners of Bonds, the City may then apply any money in any other fund or account established for the payment or redemption of the defeased Bonds to any lawful purposes as it shall determine. Section 11 . Rainier National Bank of Seattle, Washington, has submitted an offer to purchase the Bonds at a price of par less a 1.23� ($5,289) discount plus accrued interest from the date of the Bonds to the date of their delivery to the purchaser, the City to furnish the printed Bonds and the approv- ing legal opinion of Roberts & Shefelman, municipal bond counsel - 10 - r - af Seattle, Washingtan, at the City' s expense. Bond caunsel shall nat be required to review or express any apinian concern- ' ing 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 opinian shal2 so I� state. The City Cauncil, deeming that it is in the best in�er- est of the City that such offer be accepted, accepts the same. The Bonds, therefore, imm�diately upon their authentication, shall be delivered ta Rainier Nationai Bank of Seattle, , � � Washingtan, upon payment therefor in accardance with such offer. Section 12 . This ordinance sha11 take effect from and after its passage and five (5) days fallowing its publication or j I posting as required by law. � � li PASSED BY THE CITY COUNCIL this 21st day of January, 1985. i � � i%%�=-��l.�r�- (� G����Llt2� � MAXINE MOTOR, Gity Clerk , � APPRQVED BY THE MAY4R this �� Gt day of January, 1985 . � r�r���, .,�.�., .5 ��,,,�'�, �_Mayo� � 7`� I Approved as to farm: � �-'t"? �1'�,�:u�.s-�-� �-�,�,. - I City Attorney �� '" . . � Date of Publication: January 25, 1985 l I 1476r � I - 11 - — - .