HomeMy WebLinkAboutORD 3966 ' � ; . . 'K • ,
CITY OF RENTON, WASHINGTON
ORDINANCE NO. 396h
AN ORDINANCE of the City of Renton, Washington;
relating to Local Improvement District No . 326 ;
authorizinq the issuance and sale of local improve-
ment district bond anticipation notes in Local
Improvement District No . 326 pending the receipt of
the proceeds of the local improvement district bonds
authorized to be issued by Ordinance No . 3740 , as
amended by Ordinance No . 3817; and providing for the
' sale of such notes to Peoples National Bank of
Washington, Seattle, Washington.
WHEREAS, by Ordinance No . 3740 passed by the City Council
Auqust 1, 1983 , as amended by Ordinance No. 3817 passed by the
City Council June 11 , 1984 , the City ordered the construction and
installation of left-turn lanes in the vicinity of N.E. 4th
Street between Union Avenue N.E. and Monroe Avenue N.E. within
the City pursuant to Resolution No . 2504 , and, after a public
hearing thereon, established Local Improvement District No. 326
(the "District") and provided for the issuance and sale of local
improvement district warrants or other short-term obligations
pursuant to Chapter 39 . 50 RCW; and
WHEREAS, pursuant to Ordinance No . 3817 the City issued its
, $700, 000 principal amount of Local Improvement District No. 326
Bond Anticipation Notes (the "Outstanding Notes" ) dated June 26 ,
1984 , and maturing December 31, 1985, to pay a part of the cost
of carrying out the improvements in Local Improvement District
No. 326, which Outstanding Notes , because of delays in con-
structing the improvements and closing the final assessment roll
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ORDINANCE NO. 3966
of the District, must be funded by the issuance of additional
bond anticipation notes; and
WHEREAS, the City Council deems it to be in the best inter-
est 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 antici-
pation notes for the purpose of providing the funds with which
to pay a part of the cost of paying and redeeming the Outstand-
ing Notes; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
ORDAIN AS FOLLOWS:
SECTION I . For the purpose of paying a part of the cost of
paying and redeeming the Outstanding Notes , the City shall issue
its Local Improvement District No . 326 Bond Anticipation Notes
(the "Notes" ) in the total principal amount of $515 , 000 . The
Notes shall be dated December 31, 1985 ; shall mature on
' August 29 , 1986; shall be numbered from 1 to 31, inclusive; and
shall bear interest at the rate of 6% per annum (computed on the
basis of a 360-day year of twelve 30-day months) payable at
' maturity, and, if not paid upon proper presentment at maturity,
shall bear interest at the same rate until sufficient money for
such payment, both principal and interest, is on deposit in the
Local Improvement Fund, District No . 326 (the "Note Fund" )
created by Ordinance No . 3740, as amended, and such Notes have
been called for redemption by the City Finance Director ' s giving '
at least ten days ' written notice of such call to Peoples
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ORDINANCE N0. 3966
National Bank of Washington in Seattle, Washington. Notes Nos .
1 to 13 , inclusive, shall be in the denomination of $5, 000 each,
and Notes Nos . 14 to 31, inclusive, shall be in the denomination
of $25 , 000 each. The Notes shall not be subject to redemption
prior to their maturity date.
Both principal of and interest on the Notes shall be pay-
able solely out of the Note Fund and from the Local Improvement
Guaranty Fund of the City, in lawful money of the United States
of America . at either office of the fiscal agency of the State
of Washington in Seattle, Washington, or New York, New York, at
the option of holders . The Notes are not general obligations of I
the City.
SECTION II . The Notes shall be printed, lithographed,
typed or multicopied on good bond paper in a form consistent ,
with the provisions of this ordinance and State law, shall be I
signed by the Acting Finance Director of the City, and shall
have the seal of the City impressed thereon.
Section III . The City covenants that it will not take or
permit to be taken on its behalf any action which would
I adversely affect the exemption from federal income taxation of
the interest on the Notes and will take or require to be taken
such acts as may reasonably be within its ability and as may
from time to time be required under applicable law to continue
the exemption from federal income taxation of the interest on
the Notes . Without limiting the generality of the foregoing,
and except to the extent the investment of any Note proceeds is
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ORDINANCE N0. 3966
limited to a yield required to comply with federal arbitrage
requlations , the City will spend the proceeds of the Notes with
due diligence to completion of the purpose specified herein and
will not invest or make other use of the proceeds of the Notes
or of its other money at any time during the term of the Notes ,
which if such use had been reasonably expected at the date that
the Notes are issued, would have caused such Notes to be arbi-
trage obligations within the meaning of Section 103 (c) of the
United States Internal Revenue Code of 1954 , as amended, and
applicable regulations thereunder.
r venants that it has not been notified of
The City furthe co
any listinq 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 IV. Peoples National Bank of Washington in
Seattle, Washington, has submitted an offer to purchase all of
the Notes at a price of $99 . 50 per each $100 . 00 of par value,
the City to furnish the Notes 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 com-
pleteness or accuracy of any official statement, offering
circular or other sales material issued or used in connection
with the Notes, and bond counsel ' s opinion shall so state. The
City Council finds that the interest rate and price of the Notes
is in the best interest of the City and, deeming that it is in
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ORDINANCE N0. 3966
the best interest of the City that such offer be accepted,
accepts the same. The Notes, therefore, immediately upon their
execution, shall be delivered to the purchaser in Seattle,
Washington, upon payment therefor in accordance with such offer .
SECTION V. This ordinance shall be effective upon its
passage, approval and five days after publication.
PASSED BY THE CITY COUNCIL this 9th day of December, 1985 .
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Maxine E. Motor, City Clerk
' APPROVED BY THE MAYOR this 9th day of December, 1985 .
��Cu�c� .�t-�,. S�A.�.n.p�x�.
Barbara Y. Shinpoch; Mayor
Approved as to form:
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Lawrence J. Warren, City Attorney
Date of Publication: December 13 , 1985
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ORDINANCE N0. 3966
I , MAXINE E. MOTOR, City Clerk of the City of Renton,
Washington, certify that the attached copy of Ordinance No.
�966 is a true and correct copy of the original ordinance
passed on the 9th day of December, 1985, as that ordinance
appears on the Minute Book of the City.
DATED this 9th day of December, 1985 .
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MAXINE E. MOTOR, City Clerk
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