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HomeMy WebLinkAboutORD 4074 , Y Amends Ordinance No. 3856 Amended by Ordinance No. 4180, 4313 CITY OF RENTON, WASHINGTON ORDINANCE NO. 4074 AN ORDINANCE of the City of Renton, Washington, relating to Local Improvement District No. 329 ; amending Ordinance No. 3856 ; authorizing the issuance and sale of local improvement district bond anticipa- tion notes in Local Improvement District No . 329 pending the receipt of the proceeds of the local improvement district bonds authorized to be issued by Ordinance No . 3856 ; and providing for the sale and delivery of such notes to Old National Bank of Washington, Seattle, Washington. WHEREAS, by Ordinance No. 3856 passed by the City Council October 22 , 1984 , the City ordered the construction and instal- lation of certain improvements on S . 43rd Street from Talbot Road South to SR 167, within the City pursuant to Resolution No . 2566, and, after a public hearing thereon, established Local Improvement District No . 329 (the "District" ) and provided for the issuance and sale of local improvement district warrants; and WHEREAS, the City Council deems it to be in the best interest of the City that the City borrow money and issue its short-term obligation or obligations pursuant to Chapter 39 . 50 RCW in the form of one or more local improvement district bond anticipation notes for the purpose of providing the funds with which to pay the costs of carrying out the improvements ordered in Local Improvement District No . 329 ; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I . Section III of Ordinance No . 3856 is amended to read as follows : - ' � - ORDINANCE NO. 4074 SECTION III : The estimated cost and expense of that improvement is hereby declared to be approximately $600, 000 . The entire cost and expense of such improvement, including the cost and expense of all enqineering, legal, inspection, adver- tising, publication of notices and other expense incidental thereto, shall be borne by and assessed against the property specially benefited by the improvement included in Local Improvement District No . 329 established, embracing, as near as may be, all property benefited by such improvement . SECTION II . Section V of Ordinance No . 3856 is amended to read as follows : SECTION V. Local improvement district warrants shall be issued in payment of the cost and expense of the improvement herein ordered. Such warrants shall be payable out of Local Improvement Fund, District No . 329 , to bear interest from the date thereof at a rate to be fixed hereafter and to be redeemed in cash and/or by local improvement district bonds herein authorized to be issued, such interest-bearing warrants to be hereafter referred to as "revenue warrants . " The exact form, amount, date, interest rate and denomination of such warrants shall be hereafter fixed by ordinance of the City Council . In the alternative, the City may provide by ordinance for the issuance of other short-term obligations pursuant to Chapter 39 . 50 RCW. The City is authorized to issue local improvement district bonds for the District which shall bear interest at a rate and - 2 - ORDINANCE NO. 4074 to be payable on or before a date to be fixed hereafter by ordinance. The bonds shall be issued in exchange for and/or in redemption of any and all revenue warrants or other short-term obligations issued hereunder and not redeemed in cash within twenty days after the expiration of the thirty-day period for the cash payment of assessments without interest on the assess- ment roll for the District . The bonds shall be redeemed by the collection of special assessments to be levied and assessed aqainst the property within the District, payable in annual installments, with interest at a rate to be fixed hereafter by ordinance under the mode of "payment by bonds, " as defined by law and the ordinances of the City. The exact form, amount , date, interest rate and denominations of such bonds shall be fixed hereafter by ordinance of the City Council . Such bonds shall be sold in such manner as the City Council shall hereafter determine. For those persons found by the City of Renton to be economically disadvantaged property owners , or other persons who, under the terms of a recorded contract of purchase, recorded mortgage, recorded deed of trust transaction, or recorded lease are responsible under penalty of forfeiture, foreclosure or default, the assessment levied for the District may be deferred until a time previous to the termination of the District under the terms acceptable to the City and upon assur- ance of proper security for the payment of such assessments . - 3 - ORDINANCE N0. 4074 Such deferral shall not survive the termination of the ownership of interest of the economically disadvantaqed property owner or person to whom the deferral was granted and it shall likewise not survive the sale, transfer or other action which either terminates the possessory interest of such property owner or person or which turns the property into investment, rental or lease property. SECTION III . A local improvement district bond anticipa- tion note of the District (the "Note" ) shall be issued in the principal amount of $b00, 000 to pay the cost of constructing the improvements in the District . The Note shall be numbered l; shall be dated as of the date of its issuance; shall mature on June 1, 1988 ; and shall bear interest at a rate equal to 70% of the published prime rate of Bank of America, San Francisco, California, adjusted immediately for any changes in that prime rate, calculated on the basis of a 365-day year, payable monthly on the fifth day of each month, commencing the month following the date of issuance of the Note, with full obligation on the part of the City to pay interest at the same variable rate from and after the maturity date until the Note with interest is paid in full or until sufficient money for such payment in full is on deposit in the Local Improvement Fund, District No . 329 (the "Note Fund" ) , created by Ordinance No. 3856 , as amended, and the Note has been duly called for payment . The City reserves the right to prepay the Note at any time upon giving five days ' - 4 - ORDINANCE NO. 4074 written notice to Old National Bank of Washington. Both prin- cipal of and interest on the Note shall be payable solely out of the Note Fund from the proceeds of local improvement district bonds authorized to be issued by Ordinance No . 3856 , as amended, or other short-term obliqations to be deposited in such fund and/or prepaid special benefit assessments deposited in such fund, and from the Local Improvement Guaranty Fund of the City, except that interest on the Note may be paid from proceeds of the Note or investment earnings therefrom, and shall be payable in lawful money of the United States of America . Principal of the Note is payable at the office of the City Finance Director in Renton, Washington, upon surrender of the Note, and interest is payable by check, draft or warrant mailed at least one business day prior to each interest payment date to Old National Bank of Washington at its office in Kent, Washington. The City Council declares and finds that the fixing of the above fixed variable interest rate index is in the best inter- ests of the City. SECTION IV. The Note shall be printed, lithographed, typed or multicopied on good bond paper in a form consistent with the provisions of this ordinance, shall be manually signed by the Mayor and City Finance Director, and shall have the seal of the City impressed thereon. SECTION V. The City covenants that it will take all actions necessary to prevent the interest on the Note from being - 5 - ORDINANCE N0. 4074 included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Note or other funds of the City at any time during the term of the Note which will cause the interest on the Note to be included in gross income for federal income tax purposes . The City further covenants that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifi- cations may not be relied upon. SECTION VI . The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power; (b) the Note is not a "private activity bond" within the meaninq of Section 141 of the Internal Revenue Code of 1986 (the "1986 Code" ) ; (c) at least 950 of the net proceeds of the Note will be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City) ; (d) the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all entities subordinate to the City ( includinq any entity which the City controls or which derives its authority to issue tax-exempt obligations from the City) during the current calendar year is not reasonably expected to exceed $5, 000, 000 ; and (e) the amount of tax-exempt obligations, including the - 6 - ORDINANCE N0. 4074 Note, designated as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the 1986 Code or any prede- cessor provision of federal law by the City during the calendar year in which the Note is issued does not exceed $10, 000 , 000 . The City therefore certifies that it is an issuer which quali- fies for the small governmental issuer arbitrage rebate exemp- tion under Section 148(f) (4) (C) of the 1986 Code and designates the Note as a "qualified tax-exempt obligation" for the purposes of Section 265(b) (3) of the 1986 Code. SECTION VII . The Note shall be a negotiable instrument to the extent provided by RCW 62A. 8-102 and 62A. 8-105 . SECTION VIII . Old National Bank of Washington of Seattle, Washington, has submitted an offer to purchase the Note at a price of par, the City to furnish the Note 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 material issued or used in connection with the Note, and bond counsel . s opinion shall so state. The City Council finds that it is in the best interest of the City that such offer be accepted, and accepts the same. The Note, therefore, immediately upon its execution, shall be delivered to the purchaser in Seattle, Washington, upon payment therefor in accordance with such offer . - 7 - ORDINANCE N0. 4074 SECTION IX. This ordinance shall be effective upon its passage, approval and five days after publication. PASSED BY THE CITY COUNCIL this 15th day of June, 1987 . �� Maxine E. Motor, City Clerk APPROVED BY THE MAYOR this 15th day of June, 1987 . t`�c��� � • St�.�rz.po��, Barbara Y. Shinpoch, Mayor Approved as to form: i / �` Cti`�i�...�.. U Date of Publication: June 19 , 1987 1877r - 8 -