Loading...
HomeMy WebLinkAboutOrdinances - 1994-08 - Relating to contracting indebtedness, providing for the issuance of $1,250,000 of limited tax general obligation bonds for a City Hall - 6/9/1994CITY OF EAST WENATCHEE,WASHINGTON ORDINANCE NO.'9 '-1-r AN ORDINANCE of the City of East Wenatchee, Washington,relating to contracting indebtedness; providing for the issuance of $1,250,000 par value of Limited Tax General Obligation Bonds,1994,of the City for general city purposes to provide funds with which to pay a part of the cost of constructing and equipping a city hall and for other legal purposes;fixing the date, form,maturities,interest rates,terms and covenants of the bonds;establishing a bond redemption fund;approving the sale and providing for the delivery of the bonds to Piper Jaffray Inc.of Seattle,Washington;containing a severability clause;and establishing an effective date. WHEREAS,the City of East Wenatchee,Washington (the "City"), is in need of constructing and equipping a city hall,the estimated cost of which is $2,576,000,and the City does not have available sufficient funds to pay the entire cost;NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE,WASHINGTON,DO ORDAIN as follows: section 1.Debt Capacity.The assessed valuation of the taxable property within the city as ascertained by the last preceding assessment for City purposes for the calendar year 1994 is $183,112,719 and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds in the principal amount of $805,000.The amount of indebtedness for which bonds are authorized herein to be issued is $1,250,000. section 2.Authorization of Bonds.The City shall borrow money on the credit of the city and issue negotiable limited tax general obligation bonds evidencing that indebtedness in the amount of $1,250,000 for general City purposes to provide the funds to pay 0131356.02 -1- part of the cost of constructing and equipping a city hall (the "Project"),to pay the costs of issuance and sale of the bonds (the "costs of issuance")and for other purposes and projects of the City.The general indebtedness to be incurred shall be within the limit of up to 1.5%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.Description of Bonds.The bonds shall be called Limited Tax General obligation Bonds,1994,of the City (the "Bonds");shall be in the aggregate principal amount of $1,250,000; shall be dated June 1,1994;shall be in the denomination of $5,000 or any integral multiple thereof within a single maturity;shall be numbered separately in the manner and with any additional designation as the Bond Registrar (collectively,the fiscal agencies of the State of Washington located in Seattle,Washington, and New York,New York)deems necessary for purposes of identification;shall bear interest at the rates set forth below (computed on the basis of a 360-day year of twelve 30-day months), payable on December 1,1994,and semiannually thereafter on each succeeding June 1 and December 1;and shall mature on December 1 in years and amounts and bear interest at the rates per annum as follows: 0131356.02 -2- Maturity Interest Years Amounts Rates 1995 $80,000 4.00% 1996 80,000 4.50 1997 85,000 4.85 1998 90,000 5.10 1999 100,000 5.25 2000 100,000 5.40 2001 105,000 5.50 2002 110,000 5.60 2003 115,000 5.70 2004 125,000 5.80 2005 130,000 5.80 2006 130,000 5.90 The life of the capital facility to be acquired with the proceeds of the Bonds exceeds the term of the Bonds. section 4.Registration and Transfer of Bonds.The Bonds shall be issued only in registered form as to both principal and interest and shall be recorded 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 and the principal amount and number of each of the Bonds held by each owner. Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity.Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar.Any exchange or transfer shall be without cost to the owner or transferee.The Bond Registrar shall not be obligated to exchange or transfer any Bond during the fifteen days preceding any principal paYment or redemption date. 0131356.02 -3- section 5.Payment of Bonds.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 checks or drafts of the Bond Registrar mailed on the interest payment date to the registered owners at the addresses appearing on the Bond Register on the fifteenth 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 either of the principal offices of the Bond Registrar at the option of the owners. section 6.Optional Redemption and Open Market Purchase of Bonds.Bonds maturing in the years 1995 through 2002,inclusive, shall be issued without the right or option of the City to redeem those Bonds prior to their stated maturity dates.The City reserves the right and option to redeem Bonds maturing on December 1,2003,or December 1,2004,prior to their stated maturity dates as a whole or in part at any time on or after December 1,2002,within one or more maturities selected by the city (and by lot within a maturity in such manner as the Bond Registrar shall determine)at par plus accrued interest to the date fixed for redemption.The city reserves the right and option to redeem Bonds maturing on December 1,2005,or December 1,2006, prior to their stated maturity dates as a whole or in part on any interest payment date on or after June 1,1995,or at any time on or after December 1,2002,within one or more maturities selected by the city (and by lot within a maturity in such manner as the Bond Registrar shall determine)at par plus accrued interest to the 0131356.02 -4- date fixed for redemption. Portions of the principal amount of any Bond,in installments of $5,000 or any integral mUltiple thereof,may be redeemed.If less than all of the principal amount of any Bond is redeemed,upon surrender of that Bond at either of the principal offices 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 the same maturity and interest rate in any of the denominations authorized by this ordinance in the aggregate principal amount remaining unredeemed. The city further reserves the right and option to purchase any or all of the Bonds in the open market at any time at any price. All Bonds purchased or redeemed under this section shall be cancelled. Section 7.Notice of Redemption.The city shall cause notice of any intended redemption of Bonds to 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 registered owner of any Bond to be redeemed at the address appearing on the Bond Register at the time the Bond Registrar prepares the notice,and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided,whether or not it is actually received by the owner of any Bond.Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call.In addition,the redemption notice shall be mailed within the same period,postage prepaid,to 0131356.02 -5- Moody's Investors Service,Inc.,and Standard &Poor's Rating Group at their offices in New York,New York,or their successors,to Piper Jaffray Inc.,at its office in Seattle,Washington,or its successor,and to such other persons,and with such additional information as the city Clerk-Treasurer shall determine,but these additional mailings shall not be a condition precedent to the redemption of Bonds. section 8.Failure to Redeem Bonds.If any Bond is not redeemed when properly presented at its maturity or call date,the city shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or call date until that Bond,both principal and interest,is paid in full or until sufficient money for its payment in full is on deposit in the bond redemption fund hereinafter created and the Bond has been called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds. section 9.Pledge of Taxes.For as long as any of the Bonds are outstanding,the City irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of the electors of the city on all of the taxable property within the city in an amount sUfficient,together with other money legally available and to be used therefor,to pay when due the principal of and interest on the Bonds,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. 0131356.02 -6- section 10.Form and Execution of Bonds.The Bonds shall be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance and state law,shall be signed by the Mayor and city Clerk-Treasurer,either or both of whose signatures may be manual or in facsimile,and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. Only Bonds bearing a certificate of Authentication in the following form,manually signed 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 East Wenatchee,Washington,Limited Tax General obligation Bonds,1994,described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Officer The authorized signing of a certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed,authenticated and delivered and are entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Bonds ceases to be an officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are authenticated or delivered by the Bond Registrar or issued by the City,those Bonds nevertheless may be authenticated,delivered and issued and, when authenticated,issued and delivered,shall be as binding on 0131356.02 -7- the city as though that person had continued to be an officer of the city authorized to sign bonds.Any Bond also may be signed on behalf of the city by any person who,on the actual date of signing of the Bond,is an officer of the city authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bonds. section 11.Bond Registrar.The Bond Registrar shall keep, or cause to be kept,at its principal corporate trust office, sufficient books for the registration and transfer of the Bonds which shall be open to inspection by the city at all times.The Bond Registrar is authorized,on behalf of the city,to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance,to serve as the city's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and city Ordinance No.92-13 establishing a system of registration for the City's bonds and obligations. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's certificate of Authentication 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 depository for and permit any of its officers or directors to act as members of,or in any other capacity with respect to,any committee formed to protect the rights of Bond owners. section 12.Preservation of Tax Exemption for Interest on Bonds.The city covenants that it will take all actions necessary 0131356.02 -8- to prevent interest on the Bonds from being 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 Bonds or other funds of the city treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes.The city certifies 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 certifications may not be relied upon. section 13.Small Governmental Issuer Arbitrage Rebate Exemption and Designation of Bonds as "Qualified Tax-Exempt Obligations."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)no Bond which is part of this issue of Bonds is a "private activity bond"within the meaning of section 141 of the United States Internal Revenue Code of 1986,as amended (the "Code");(c)at least 95%of the net proceeds of the Bonds 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 and other Obligations not required to be included in such calculation)issued by the city and all entities subordinate to the city (including any entity which the city controls,which derives its authority to issue tax-exempt obligations from the City or which issues tax-exempt Obligations on behalf of the City)during 0131356.02 -9- the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000;and (e)the amount of tax-exempt obligations,including the Bonds,designated by the city as "qualified tax-exempt obligations"for the purposes of section 265(b)(3)of the Code during the calendar year in which the Bonds are issued does not exceed $10,000,000.The city therefore certifies that the Bonds are eligible for the arbitrage rebate exemption under section 148 (f)(4)(D)of the Code and designates the Bonds as "qualified tax-exempt obligations"for the purposes of section 265(b)(3)of the Code. section 14.Bonds Negotiable.The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 15.Advance Refunding or Defeasance of the Bonds. The City may issue advance refunding bonds pursuant to the laws of the State of Washington or use money available from any other lawful source to pay when due the principal of and interest on the Bonds,or any portion thereof included in a refunding or defeasance plan,and to redeem and retire,refund or defease all such then- outstanding Bonds (hereinafter collectively called the "defeased Bonds")and to pay the costs of the refunding or defeasance.If money and/or "government obligations"(as defined in Chapter 39.53 RCW,as now or hereafter amended)maturing at a time or times and bearing interest in amounts (together with money,if necessary) sufficient to redeem and retire,refund or defease the defeased Bonds in accordance with their terms are set aside in a special trust fund or escrow account irrevocably pledged to that redemption,retirement or defeasance of defeased Bonds (hereinafter 0131356.02 -10- called the "trust account"),then all right and interest of the owners of the defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall cease and become void.The owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds from the trust account.The defeased Bonds shall be deemed no longer outstanding,and the city may 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 16.Bond Fund and Deposit of Bond Proceeds.There is created and established in the office of the city Clerk-Treasurer a special fund designated as the Limited Tax General Obligation Bond Fund,1994 (the "Bond Fund").Accrued interest on the Bonds, if any,received from the sale and delivery of the Bonds shall be paid into the Bond Fund.A special fund designated as the city Hall Building Fund (the "Construction Fund")has previously been created and established in the office of the city Clerk-Treasurer. The principal proceeds and premium,if any,received from the sale and delivery of the Bonds shall be paid into the Construction Fund and used for the purposes specified in section 2 of this ordinance. until needed to pay the costs of the Project and costs of issuance of the Bonds,the city may invest principal proceeds temporarily in any legal investment,and the investment earnings may be retained in the Fund and be spent for the purposes of that fund.Any money remaining in the Construction Fund after completion of the Project shall be transferred to the General Fund of the City,or such other 0131356.02 -11- fund as may be designated by the City Clerk-Treasurer,and used for any lawful City purpose.All taxes collected for and allocated to the payment of the principal of and interest on the Bonds shall be deposited in the Bond Fund. section 17.Approval of Bond Purchase Contract.Piper Jaffray Inc.of Seattle,Washington,has presented a purchase contract (the "Bond Purchase Contract")to the City offering to purchase the Bonds under the terms and conditions provided in the Bond Purchase Contract,which written Bond Purchase Contract is on file with the City Clerk-Treasurer and is incorporated herein by this reference.The city council finds that entering into the Bond Purchase Contract is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by city officials. The Bonds will be printed at City expense and will be delivered to the purchaser in accordance with the Bond Purchase Contract,with the approving legal opinion of Foster Pepper & Shefelman,municipal bond counsel of Seattle,Washington,regarding the Bonds printed on each Bond.Bond counsel shall not be required to review and shall express no opinion concerning 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 opinion shall so state. The proper city officials are authorized and directed to do everything necessary for the prompt delivery of the Bonds to the purchaser and for the proper application and use of the proceeds of the sale thereof. 0131356.02 -12- section 18.Preliminary Official statement Deemed Final.The city Council has been provided with copies of a preliminary official statement dated May 10,1994 (the "Preliminary Official Statement"),prepared in connection with the sale of the Bonds. For the sole purpose of the Bond purchaser's compliance with securities and Exchange Commission Rule 15c2-12 (b)(1),the City "deems final"that Preliminary Official statement as of its date, except for the omission of information as to offering prices, interest rates,selling compensation,aggregate principal amount, principal amount per maturity,maturity dates,options of redemption,delivery dates,ratings and other terms of the Bonds dependent on such matters. Section 19.Temporary Bond.Pending the printing,execution and delivery to the purchaser of definitive Bonds,the City may cause to be executed and delivered to the purchaser a single temporary Bond in the total principal amount of the Bonds.The temporary Bond shall bear the same date of issuance,interest rates,principal paYment dates and terms and covenants as the definitive Bonds,shall be issued as a fully registered Bond in the name of the purchaser,and otherwise shall be in a form acceptable to the purchaser.The temporary Bond shall be exchanged for definitive Bonds as soon as they are printed,executed and available for delivery. Section 20.severability.If any provision of this ordinance is held to be invalid,that holding shall not affect the remaining provisions of this ordinance. 0131356.02 -13- Section 21.Effective Date of Ordinance.This ordinance shall take effect and be in force from and after its passage and 5 days following its publication as required by law. PASSED by the city Council and APPROVED by the Mayor of the city of East Wenatchee,Washington,at a regular open pUblic meeting thereof,this 16th day of May,1994. NQ)I/it<~.L-)_ M~or ATTEST: d '--~,~ci~Treasurer APPROVED AS TO FORM: 0131356.02 -14- I,VIRGINIA E.OESTREICH,City Clerk-Treasurer of the City of East Wenatchee,Washington,certify that the attached copy of l Ordinance No.9t.r -~is a true and correct copy of the original ordinance passed on the 16th day of May,1994,as such ordinance appears on the Minute Book of the City. ~ha...L /)(,0 DATED this I (P day of .~,1994. VIRGIOIA E.OESTREICH City Clerk-Treasurer 0131356.02 • SUMMARY OF ORDINANCE NO.94-8 OF THE CITY OF EAST WENATCHEE.WASHINGTON On the 16th day of May.1994.the City Council of the City of East Wenatchee.Washington.passed Ordinance No.94-8.to be published June 9.1994.effective June 14.1994.A summary of the conterit of said ordinance.consisting of the title.provides as follows: ORDINANCE NO.94-8 AN ORDINANCE OF THE CITY OF EAST WENATCHEE.WASHINGTON. RELATING ~O CONTRACTING INDEBTEDNESS;PROVIDING FOR THE ISSUANCE OF $1.250.000 PAR VALUE OF LIMITED TAX GENERAL OBLIGATION BONDS.1994.OF THE CITY FOR GENERAL CITY PURPOSES TO PROVIDE FUNDS WITH WHICH TO PAY A PART OF THE COST OF CONSTRUCTING AND EQUIPPING A CITY HALL AND FOR OTHER LEGAL PURPOSES;FIXING THE DATE.FORM.MATURITIES.INTEREST RATES. TERMS AND COVENANTS OF THE BONDS;ESTABLISHING A BOND REDEMPTION FUND;APPROVING THE SALE AND PROVIDING FOR THE DELIVERY OF THE BONDS TO PIPER JAFFRAY.INC.OF SEATTLE. WASHINGTON;CONTAINING A SEVERABILITY CLAUSE;AND ESTABLISHING AND EFFECTIVE DATE. The full text of this Ordinance will be mailed upon request. DATED this 9th day of June.1994. ~.~-f.Q~Vi~Oestreich City Clerk/Treasurer Publish:June 9 ••1994 Effective:June 14.1994 SUMMARY OF ORDINANCE NO.94-8 OF THE CITY OF EAST WENATCHEE.WASHINGTON On the 16th day of May.1994.the City Council of the City of East Wenatchee.Washington.passed Ordinance No.94-8.to be published June 9.1994.effective June 14.1994.A summary of the content of said ordinance.consisting of the title.provides as follows: ORDINANCE NO.94-8 AN ORDINANCE OF THE CITY OF EAST WENATCHEE.WASHINGTON. RELATING TO CONTRACTING INDEBTEDNESS;PROVIDING FOR THE ISSUANCE OF $1.250.000 PAR VALUE OF LIMITED TAX GENERAL OBLIGATION BONDS.1994.OF THE CITY FOR GENERAL CITY PURPOSES TO PROVIDE FUNDS WITH WHICH TO PAY A'PART OF THE COST OF CONSTRUCTING AND EQUIPPING A CITY HALL AND FOR OTHER LEGAL PURPOSES;FIXING THE DATE.FORM.MATURITIES.INTEREST RATES. TERMS AND COVENANTS OF THE BONDS;ESTABLISHING A BOND REDEMPTION FUND;APPROVING THE SALE AND PROVIDING FOR THE DELIVERY OF THE BONDS TO PIPER JAFFRAY.INC.OF SEATTLE. WASHINGTON;CONTAINING A SEVERABILITY CLAUSE;AND ESTABLISHING AND EFFECTIVE DATE. The full text of this Ordinance will be mailed upon request. DATED this 9th day of June.1994 . .J~'~f,()~Virgi~Qestreich City Clerk/Treasurer Publish:June 9 ••1994 Effective:June 14.1994