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CITY OF AUBURN, WASHINGTON
ORDINANCE NO. 4791
AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICTS;
ESTABLISHING CONSOLIDATED LOCAL IMPROVEMENT DISTRICT NO. 341/348
AND CONSOLIDATED LOCAL IMPROVEMENT FUND, DISTRICT NO. 341/348;
FIXING THE AMOUNT, FORM, DATE, INTEREST RATES, ]HATURITY AND
DENOMINATIONS OF THE CONSOLIDATED LOCAL IMPROVEMENT DISTRICT NO.
341/348 BONDS; PROVIDING FOR THE SALE AMD DELIVERY THEREOF TO
SEATTLE-NORTHWEST SECURITIES CORPORATION OF SEATTLE,. WASHINGTON;
AND FIXING THE INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT
ASSESSMENT INSTALLMENTS.
WHEREAS, the City Council of the City of Auburr~, Washington
(the "City"), heretofore has created Local Improvement Districts
Nos. 341 and 348 for various purposes; and
WHEREAS, RCW 35.45.160 authorizes the establishment of
consolidated local improvement districts for the purpose of
issuing bonds only and provides that if the governing body of
any municipality orders the creation of such consolidated local
improvement district, the money received from the installment
payment of the principal of and interest on assessments levied
within the original local improvement districts shall be
deposited in a consolidated local improvement district bond
redemption fund to be used to redeem outstanding consolidated
local improvement district bonds; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO
ORDAIN as follows:
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Section l- Consolidation of Local Improvement Distr~c~s.
For the purpose of issuing bonds only, those local improvement
districts of the City established by the following ordinances,
respectively, the 30-day period for making cash payment of
assessments without interest in each local improvement district
having expired in the case of the assessments for each local
improvement district, are consolidated into a consolidated local
improvement district to be known and designated as Consolidated
Local Improvement District No.
Local Improvement District NO.
341
348
341/348:
Created by
Ordinance No.
Assessment Balance
After 30 - Day
Prepayment Period
4619 $770,861.10
4695 $46,470.87
section 2. Bond Fund. There is created and established in
the office of the City Finance Director for Consolidated Local
Improvement District No. 341/348 a special consolidated local
improvement district fund to be known and designated as
Consolidated Local Improvement Fund, District No. 341/348 (the
"Bond Fund"). All money presently on hand representing
collections pertaining to installments of assessments and
interest thereon in each of the local improvement districts
listed in Section I shall be transferred to and deposited in the
Bond Fund, and all collections pertaining to assessments on the
assessment rolls of those local improvement districts when
~ No. 4791
i~pt~mbe~ 18, 1995
Page 2
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hereafter received shall be deposited in the Bond Fund to redeem
outstanding Consolidated Local Improvement District No. 341/348
bonds.
Section ~. Authorization and DescriPtion of Bond~.
Consolidated Local Improvement District No. 341/348 bonds (the
"Bonds") shall be issued in the total principal sum of
$817,331.97, being the total amount on the assessment rolls of
Local Improvement Districts Nos. 341 and 348 remaining
uncollected after the expiration of the 30-day interest-free
prepayment period. The Bonds shall be dated October 1, 1995,
shall mature on October 1, 2007, and shall be numbered from i to
163, inclusive, 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 the
purpose of identification. Bond No. i shall be in the
denomination of $7,331.97 and Bonds Nos. 2 to 163, inclusive,
shall be in the denomination of
be computed on the basis of a
months. The Bonds shall bear
October 1 of each year beginning October 1,
with the following schedule:
$5,000.00 each. Interest shall
360-day year of twelve 30-day
interest, payable annually on
1996, in accordance
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Bond Numbers
Interest
Amounts Rates
i to 19 $97,331.97 4.40%
20 to 35 80,000.00 4.70
36 to 51 80,000.00 4.90
52 to 67 80,000.00 5.10
68 to 83 80,000.00 5.20
84 to 99 80,000.00 5.30
100 to 115 80,000.00 5.40
116 to 131 80,000.00 5.50
132 to 147 80,000.00 5.60
148 to 163 80,000.00 5.70
Section 4. Reaistration and Transfer of BonS~. 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"). Such 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 may be transferred only if endorsed in the manner
provided thereon and surrendered to the Bond Registrar. The
transfer of a Bond shall be by the Bond Registrar's receiving
the Bond to be transferred, cancelling it and issuing a new
certificate in the form of the Bonds to the transferee after
registering the name and address of the transferee on the Bond
Register. The new certificate shall bear the same Bond number
as the transferred Bond but may have a different inventory
reference number or control number. Any exchange or transfer
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shall be without cost to the owner
Registrar shall not be obligated to
Bond during the 15 days preceding
redemption date.
Section 5. PaYment of Bonds.
interest on the Bonds shall be payable
or transferee. The Bond
exchange or transfer any
any principal payment or
Both principal of and
solely out of the Bond
Fund and from the Local Improvement Guaranty Fund of the City,
and shall be payable in lawful money of the United States of
America. Interest on the Bonds shall be paid by checks or
drafts mailed to the registered owners on the interest payment
date 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 either of the principal
offices of the Bond Registrar at the option of the owners.
Section 6. Redemption Provisions. The City reserves the
right to redeem the Bonds prior to their stated maturity on any
interest payment date, in numerical order, lowest numbers first,
at par plus accrued interest to the date fixed for redemption,
whenever there shall be sufficient money in the Bond Fund to pay
the Bonds so called and all earlier numbered Bonds over and
above the amount required for the payment of the interest
payable on that interest payment date on all unpaid Bonds. All
Bonds redeemed under this section shall be cancelled.
Ord/mmce No. 4791
September 18, 199~
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Sectio~ 7. Notice of Redemption. The City shall cause
notice of any intended redemption of Bonds to be given not less
than 15 nor more than 30 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 Seattle-Northwest
Securities Corporation at its principal office in Seattle,
Washington, or its successor, and to such other persons and with
such additional information as the City Finance Director shall
determine, but these additional mailings shall not be a
condition precedent to the redemption of Bonds.
SectioD 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
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in full or until sufficient money for its payment in full is on
deposit in the Bond Fund and the Bond has been called for
payment by giving notice of that call to the registered owner of
each of those unpaid Bonds.
Sect~o~ 9. Form and Execution of Bonds. The Bonds shall
be printed, lithographed or typed 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, 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
Auburn, Washington, Consolidated Local Improvement
District No. 341/348 Bonds described in the Bond
Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Signer
The authorized signing of a Certificate of Authentication shall
be conclusive evidence that the Bond so authenticated has been
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duly executed, authenticated and delivered and is 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,
issued and delivered and, when authenticated, issued and
delivered, shall be as binding on 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
Bond.
Section 10. Bond Reaistrar. 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
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ordinance and City Ordinance No. 3905 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 Certificates
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 11. Bonds Neaotiable. The Bonds shall be
negotiable instruments to the extent provided by RCW 62A.8-102
and 62A.8-105.
Section 12. Preservation of Tax Exemption for Interes~ 0n
Bonds. The City covenants that it will take all actions
necessary 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
No. 4791
IS, 1~5
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Revenue Service to the effect that it is a bond issuer whose
arbitrage certifications may not be relied upon.
Section 13. Small Governmental Issuer Arbitra~e Reb~t~
Exception and Designation of Bonds as "Oualified Tax-Exe~pt
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 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
Ordlnanc~ No. 4791
8e~ 18, 1995
Page 10
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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 exception 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. Use of Bond Proceeds. The accrued interest on
the Bonds received from the Bond purchaser shall be deposited in
the Bond Fund used to pay debt service on the Bonds on the first
interest payment date. The principal proceeds of the Bonds
shall be used to finance the costs of carrying out improvements
in Local Improvement Districts Nos. 341 and 348 and to pay the
costs of issuance of the Bonds. Until needed to pay those
costs, the City may invest principal proceeds temporarily in any
legal investment, and the investment earnings may be retained in
the respective local improvement district funds or accounts
therein and be spent for the purposes of those funds.
Section 15. ADDroval of Bond Purchase Contract. Seattle-
Northwest Securities Corporation 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 and is
incorporated herein by this reference. The City Council finds
Ordimm~ No. 4791
sclmnbcr 18, 1995
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that entering into the Bond Purchase Contract is in the City's
beet interest and therefore accepts the offer contained therein
and authorizee 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 definitive 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, including without limitation the execution of the
official Statement on behalf of the city, and for the proper
application and use of the proceeds of the sale thereof.
Section 16. ADDeal Filed. Two Notices of Appeal from
assessments in LID No. 341 have been filed with the King County
Superior Court and are awaiting hearing. While the City
anticipates that the appeals can be defended successfully, the
City shall provide from other City funds and shall deposit
~ No. 4791
~ 18, 1995
Pag~ 12
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promptly in the Bond Fund any amounts by which the assessments
may be reduced.
Section 17. Temporary ~ond. 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 18. Fixin~ Interest Rate on Assessments. The
interest rates on the installments and delinquent payments of
the special assessments in Local Improvement Districts Nos. 341
and 348 are revised and fixed at the rate of 6.10% per annum;
which interest shall be due annually on the assessment
installment date on the unpaid balance of the special
assessments.
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Effective Date of OrdiDance. This ordinance
shall take effect and be in force from and after its passage and
five days following its publication as required by law.
INTRODUCED:
PASSED:
APPROVED:
Charles A.
Booth, Mayor
ATTEST:
Robin Wohlhueter, City Clerk
FORM:
Michael 3. Reynolds, City Attorney
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I, ROBIN WOHLHUETER, City Clerk of the City of Auburn,
Washington, certify that the attached copy of Ordinance No. 4791
is a true and correct copy of the original ordinance passed on
the 18th day of September, 1995, as that ordinance appears on
the Minute Book of the City.
DATED this~7~ day of September, 1995.
ROBIN WOHLHUETER, City Clerk