HomeMy WebLinkAboutORD 1299RT HF 1-28-48 5
ORDINANCE NO.
AN ORDINANCE of the City of Renton, Washington,
providing for the issuance of water revenue
refunding bonds in the principal sum of $74,000
for the purpose of providing funds for the re-
demption of a like principal amount of outstand-
ing water revenue bonds of the city dated March
1, 1943, providing the date, form, terms and
maturities of said refunding bonds, creating a
fund for the payment of the principal and interest
thereof, and confirming their sale.
WHEREAS, the City of Renton, Washington, pursuant to Ordinance
No. 1173, passed and approved March 2, 1943, issued its water revenue
bonds in the principal sum of $125,000, said bonds being dated March
1, 1943, hearing interest at the rate of 3% per annum, and maturing
In from 1 to 20 years from date; and
WHEREAS, the city reserved the right in said ordinance to
redeem any or all of said bonds on any interest payment date on and
after five years from the date thereof; and
WHEREAS, on Larch 11, 1948, bonds in the total principal sum of
$74,000 out of said issue will remain outstanding and unpaid; and
WHEREAS, the city has entered into an agreement with Bramhall
& Stein of Seattle, Washington, and Associates, to sell to them its
water revenue refunding bonds in a like principal amount,$54,000
of which will bear interest at the rate of 2 1/2% per annum and
$20,000 of which will bear interest at the rate of 2 1/4/ per annum,
thus resulting in a substantial interest saving to the city by the
calling of said outstanding 3`o bonds and the issuance of said re-
funding bonds; and
WHEREAS, a notice of call of all of said outstanding 3% bonds
has been published as required by said Ordinance No. 1173; and
WHEREAS, by said Ordinance No. 1173, it was provided that the
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sewerage system of the city should hereafter be considered as a part
of and belonging to the waterworks system of the city and the main-
tenance and operation of the sewerage system should be chargeable
to such waterworks system, so that any charges made and received by
the city for sewerage services should then become a part of the
gross revenues of the combined water distribution and sewerage
system of the city;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of
Renton, Washington, as follows:
Section 1. That pursuant to the provisions of the statutes of
the State of Washington, the City of Renton shall now issue its water
revenue refunding bonds in the total principal sum of $74,000 for the
purpose of providing funds to redeem a like principal amount of out-
standing water revenue bonds of the city dated March 1, 1943, and
bearing interest at the rate of 3% per annum. Said refunding bonds
shall be in denominations of $1,000 each, shall be dated March 1,
1948, and shall be numbered 1 to 74 inclusive. Bonds numbered 1 to
54 inclusive, maturing from March 1, 1949 through March 1, 1957,
shall bear interest at the rate of 2 1/2/ per annum, and bonds
numbered 55 to 74 inclusive, maturing from March 1, 1958 through
March 1, 1960, shall bear interest at the rate of 2 1/41 per annum,
all of said interest being payable semiannually on the first days of
March and September of each year. Said bonds shall mature in order
of their number as follows:
March
12
1949
$6,000
March
1,
1955
$6,000
March
1,
1950
6,000
March
1,
1956
6,000 '-1
March
1,
1951
6,000
March
1,
1957
6,000
March
19
1952
6,000
March
1,
1958
6,000 dQ
March
1,
1953
6,000 ;�
March
1,
1959
7,000
March
1,
1954
6,000
March
1,
1960
7,000
The city reserves the right to redeem bonds numbered 55 to 74
Inclusive, at par in inverse numerical order, on any interest payment
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date on and after one year from the date thereof, and further reserves
the right to redeem any or all of the outstanding bonds of said issue
at par in inverse numerical order on any interest payment date on and
any
after five years from the date thereof. Thirty days' notice o±/such
intended redemption shall be given by one publication thereof in the
official city newspaper not more than forty nor less than thirty days
prior to said redemption date. Interest on any bond or bonds so
called for redemption shall cease on such redemption date.
All of said refunding bonds, both principal and interest, shall
be payable at the office of the city treasurer in Renton, Washington,
in lawful money of the United States of America, solely out of the
gross revenues of the combined water distribution and sewerage system
of the city.
Section 2. Said bonds shall be known as "Renton Water Revenue
Refunding Bonds, 1948", and shall be in substantially the following
form:
NO.
UNITED STATES OF AMERICA
STATE OF WASHINGTON, CITY OF RENTON
WATER -REVENUE REFUNDING BOND, 1948
KNOW ALL .MEN BY THESE PRESENTS:
$1,000
That the City of Renton, a municipal corporation of the
State of Washington, hereby acknowledges itself to owe and
for value received promises -.to pay to bearer on the first
day of March, 19_, the principal sum of
ONE THOUSAND DOLLARS
together with interest thereon at the rate of �� per
annum, payable semiannually on the first days of March and
September of each year, as evidenced by and upon presenta-
tion and surrender of the annexed interest coupons as they
severally become due. Both principal and interest are pay-
able in lawful money of the United States of America at the
office of the City Treasurer in Renton, Washington, solely
out of the special fund known as "Renton 1948 Water Revenue
Refunding Bond Redemption Fund", created by Ordinance No.
/2 __of said city.
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The City of Renton hereby reserves the right to
redeem bonds numbered 55 to 74 inclusive, at par in
inverse numerical order, on any interest payment date
on and after one year from the date hereof, and further
reserves the right to redeem any or all of the out-
standing bonds of said issue, at par in inverse numerical
order, on any interest payment date on and after five
years from the date hereof. Thirty days' notice of any
such intended redemption shall be given by one publication
thereof in the official newspaper of the City of Renton
not more than forty nor less than thirty days prior to
said redemption date.
This bond is one of an issue of water revenue
refunding bonds in the principal sum of $71,000, issued
pursuant to said Ordinance No.'/Zf for the purpose of
providing funds to redeem a like principal amount of
water revenue bonds of the city issued under date of
March 1, 1913, and is payable solely out of the gross
revenues of the combined water distribution and sewerage
system of said city.
The City of Renton hereby covenants and agrees with
the holder of this bond that it will keep and perform all
the covenants of this bond and of said Ordinance No./2-ff
to be by it kept and performed. The city does hereby
pledge and bind itself to set aside from the gross
revenues of said combined water distribution and sewerage
system and,all additions and improvements thereto, and to
pay into said Bond Redemption Fund, the various amounts
required by said ordinance to be paid into said fund, all
within the times provided by said ordinance. Said amounts
so pledged are hereby declared to be a prior lien and
charge upon the gross revenues of said combined water
distribution and sewerage system, including all additions
and improvements thereto, superior to all other charges
of any kind or nature except the necessary cost of main-
tenance and operation of said combined system and except
the charges necessary to pay the principal and interest
of the outstanding water revenue bonds of the city dated
April 1, 1946.
The city has further bound itself to establish and
maintain rates for water and.sewerage service that will
provide revenues sufficient to pay the necessary cost of
maintenance and operation of said combined system, to pay
the charges necessary for the payment of the principal
and interest of said outstanding water revenue bonds, and
to pay into said Bond Redemption Fund the amounts which
the city has pledged to be set aside therein.
It is hereby certified and declared that said bonds
are issued pursuant to and in strict compliance with the
Constitution and Laws of the State of Washington and
Ordinances of the City of Edenton, and that all acts,
conditions and things required to be. done precedent to
and in the issuance of this bond have happened, been
done and performed as required by law.
4.
IN WITNESS WHEREOF, the City of Renton has caused
this bond to be signed by its Mayor and attested by its
Clerk under the corporate seal of the city, and the in-
terest coupons attached hereto to be signed with the
facsimile signatures of said officials this first day
of March, 1948.
Attest:
CITY OF RENTON, WASHINGTON
O,
City Clerk
Mayor
The interest coupons to be attached to said bonds shall be in
substantially the following form:
12.50
No. $11.25
On the first day of '19-,
the City of Renton, Washington, will pay to bearer
at the office of the City Treasurer in Renton,
Washington, the sum of
DOLLARS, in lawful money of the United States of
America, solely out of the special fund of said
city known as "Renton 1948 Water Revenue Refunding
Bond Redemption Fund", said sum being the semiannual
interest due'that day on its water revenue refunding
bond dated March 1, 1948, and numbered
Attest:
City Clerk
CITY OF RENTON, WASHINGTON
�: 3
Mayor
Section 3. Said refunding bonds shall be signed by the Mayor
of said city and attested by the City Clerk under the seal of said
city, and the interest coupons to be attached to said bonds shall be
signed with the facsimile signatures of said officials.
Section 4. That there be and is hereby created a special fund
to be known as "Renton 1948 Water Revenue Refunding Bond Redemption
Fund.", which fund is to be drawn upon for the sole purpose of paying
the principal and interest of the water revenue refunding bonds herein
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authorized. From and after the date of said bonds, and as long as
any of the same are outstanding and unpaid, the City Treasurer shall
set aside and pay into said fund by the 15th day of each month, out
of the gross revenues of the combined water distribution and sewerage
system of said city, including all additions and improvements thereto,
an amount equal to at least 1/12 of the combined principal and interest
payments to be made on said refunding bonds during the next succeeding
12 months in.which there are any of said bonds outstanding.
The gross revenues from said combined water distribution and sew-
erage system and all additions and improvements thereto are hereby
pledged to such payments, which payments shall constitute a charge
upon all such gross revenues prior and superior to all other
charges whatsoever excepting the necessary cost of maintenance and
operation of said combined system and excepting the charges necessary
for the payment of the principal and interest of the outstanding
water revenue bonds of said city dated April 1, 1946.
The corporate authorities of the City of Renton hereby declare
that in fixing the amount to be paid into said Bond Redemption Fund
they have exercised due regard for the cost of operation and main-
tenance of said combined system and the charges necessary to pay the
principal and interest of the outstanding water revenue bonds of the
city dated April 1, 1946, and have not obligated the city to set aside
into said Bond Redemption Fund a greater amount of the revenues of
said combined system than in their judgment will be available over
and above such cost of maintenance and operation and the charges
necessary for the payment of said outstanding water revenue bonds.
Section 5. The City of Renton covenants with the owner and
holder of each of said bonds as follows:
(a) The city will establish, maintain and collect rates
and charges for water and sewerage service which.shall be adequate
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to provide sufficient.revenues to meet all the obligations of said
city as herein set forth, including the payment of the cost of
operation and maintenance of said combined water distribution and
sewerage system, the payment of the principal and interest of the
outstanding water revenue bonds of the city dated April 1, 1946,
and the payment of the principal and interest of the refunding
bonds authorized herein.
(b) The city will at all times maintain and keep said com-
bined water distribution and sewerage system and all additions and
improvements thereto in good repair, working order and condition,
and will at all times operate such property and the business in
connection therewith in an efficient manner and at a reasonable
cost.
(c) The city -agrees not to sell or othervTise dispose
of the properties of such combined water distribution and sewerage
system unless provision is made for payment into the.Bond Redemption
Fund of a sum sufficient to pay the principal and interest.of all the
outstanding bonds authorized herein in accordance with the terms
thereof.
Section 6. The moneys received by the city from the sale of
these refunding bonds shall be paid into the special fund of the
city known as "Renton 1943 Fater Revenue Bond Redemption Fund",
created by Ordinance No. 1173 of the city, and shall be used only
for the purpose of redeeming bonds numbered 31 to 104 inclusive of
the issue of outstanding 3% water revenue bonds of the city dated
March 1, 1943•
Section 7. The publication by.the City Treasurer of the notice
of redemption of bonds numbered 31 to 104 inclusive of the issue of
outstanding 3% water revenue bonds of the city dated March 1, 1943,
is hereby in all respects ratified and confirmed.
7.
Section 8. The acceptance by the Council of the City on
January 2A, 1948 of the written offer of Bramhall & Stein of
Seattle, Washington, and Associates, dated January 20, 1948,
to purchase the $74,000 of refunding bonds authorized herein,
under the terms and conditions set forth in said. offer and as
set forth herein, is hereby in all respects ratified and confirmed.
Section 9. This ordinance shall become effective five days
after its passage, approval and publication as required by law.
PASSED by the Council of the City of Benton and approved by
its Mayor this _,Ytk day of February, 1948.
Attest:
yY
City Clerk
CITY OF RENTON, WASHINGTON
91
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