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HomeMy WebLinkAbout3562 CITY OF AUBURN, WASHINGTON ORDINANCE NO. 3 5 6 2 AN ORDINANCE relating to local improvement districts; establishing Consolidated Local Improvement District No. 295 et al. and Consolidated Improvement Fund, District No. 295 et al.; authorizing the issuance and fixing the amount, form, date, interest rate, maturity and denominations of the Consolidated Local Improvement District No. 295 et al. Bonds; providing for the City's contribution toward paying the costs of the local improvement districts being consolidated; creating a special escrow fund; and providing for the sale and delivery of the bonds to Foster & Marshall Inc. of Seattle, Washington. WHEREAS, the City Council of the City has heretofore created Local Improvement Districts Nos. 295, 296, 303, 304, 305 and 307 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 a consolidated local improvement district, the money received from the installment payment of the principal of and interest on assessments levied within original local improvement districts shall be deposited in the 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: Section 1. 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, are consolidated into a consolidated local improvement district to be known and designated as "Consolidated Local Improvement District No. 295 et al.": --------------------- Ordinance No. 3562 . Created By LID No. Ordinance No. Assessments Bal- ance on 10/1/80 295 3269 $105,182.16 296 3287 21,487.09 303 3355 470,978.38 304 3395 134,350.09 305 3411 175,719.54 307 3429 120,967.97 Section 2. There is created and established in the office of the Finance Director of the City for Consolidated Local Improvement District No. 295 et al., a special fund to be known and designated as "Consolidated Local Improvement Fund, District No. 295 et al." (hereinafter called the "Bond Fund"). All money presently on hand representing collections pertaining to installments of assessments, and interest and penalties thereon, in each of the local improvement districts listed in Section 1 after October 1, 1980, 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 hereafter received shall be deposited in the Bond Fund to be issued to redeem outstanding Consolidated Local Improvement District No. 295 et al. Bonds. Section 3. "Consolidated Local Improvement District No. 295 et al. Bonds" (hereinafter called the "Bonds") shall be issued in the total principal sum of $1,028,685.23, being the total amount on the assessment rolls of Local Improvement Districts Nos. 295, 296, 303, 304, 305 and 307 remaining uncollected after October 1, 1980. Bond No. 1 shall be in the denomination of $8,685.23, and the remaining Bonds numbered 2 to 205, inclusive, shall be in the denomination of $5,000.00 each. The Bonds shall all be dated December 1, 1980, and shall be payable on December 1, 1992, with the right reserved to the City to redeem the Bonds prior to maturity on any interest payment date, in numerical order, lowest numbers first, whenever there shall be sufficient money in the Bond Fund to pay the Bonds so called and all earlier numbered Bonds over and --------------------- Ordinance No. 3562 2 above the amount required for the payment of the interest on all unpaid Bonds, by publishing notice of such call once in the official newspaper of the City or, if there is no official newspaper of the City, then in a newspaper of general circulation in the City, not less.than 10 nor more than 20 days prior to the call date, and by mailing a copy of such notice within the same period to the main office of Foster & Marshall Inc. in Seattle, Washington, or its successor at its main office, and upon such date the interest on Bonds so called shall cease and each and every coupon representing interest not accrued on such date shall be void. The Bonds shall bear interest at the rate of 10.58 per annum, payable annually, beginning December 1, 1981, to be represented by interest coupons to maturity attached to each Bond. Section 4. The Bonds and coupons shall be printed or lithographed on engraved paper in a form consistent with this ordinance and state law. The Bonds shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk and shall have a facsimile reproduction of the seal of the City imprinted thereon, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 5. The City shall contribute toward paying the costs of each of the local improvement districts listed in Section 1. For those purposes the following amounts shall be transferred from the respective named fund to the local improvement district fund for the purpose of paying (together with money from assessment payments, including interest, if any, thereon deposited in those respective funds as of October 1, 1980, and Bond proceeds deposited in those funds) the outstanding obligations of those funds: Transferred to Local City Improvement District Contribution Transferred From Fund No. $ 5,655.19 5,467.35 22,324.62 6,532.84 4,123.94 --------------------- Ordinance No. 3562 Water Fund No. 430 295 Street Fund No. 101 296 water Fund No. 430 303 Water Fund No. 430 304 Water Fund No. 430 307 3 In addition to the above transfers there shall be trans- ferred to the CLID No. 295 et al. Escrow Fund, created by Section 6, as a City contribution to the cost of financing the local improvement district improvements and the Bonds, 1.6% of the amount required by Section 6 from the Street Fund No. 101, but in no event greater than $1,760, and 98.48 of the amount required by Section 6 from the Water/Sewer Operating Fund, but in no event greater than $108,240. Section 6. Because of the difference in interest rates on the final assessment rolls of the respective local improvement districts listed in Section 1 and the interest rate on the Bonds, and in order to insure that there will be sufficient money in the Bond Fund to meet the principal and interest payments when they become due on the Bonds,'there is established in the office of the Finance Director of the City for the benefit of the Bond Fund a special fund to be named the "CLID No. 295 et al. Escrow Fund." There shall be deposited in the Escrow Fund from the funds specified in Section 5 at or before the time the Bonds are delivered to the purchaser thereof sufficient money which, together with earnings therefrom at a yield no greater than the yield permitted by Section 103(c) of the Internal Revenue Code and applicable regulations thereunder, will insure that the installments of special assessments, and interest thereon, to be collected and deposited in the Bond Fund and the money, investments and earnings in the Escrow Fund will be adequate to meet all future principal and interest obligations of the Bonds as the same become due. The Finance Director is autho- rized and directed to deposit into the Escrow Fund such sum at or before the time the Bonds are delivered to the purchaser thereof, to invest that money in United States Treasury Certificates of Indebt- edness, Notes or Bonds - State or Local Governmental Series having a combined yield no greater than the yield permitted by Section 103(c) of the Interest Revenue Code and applicable regulations thereunder (except that to the extent the yields on investments are not limited, 4 --------------------- Ordinance No. 3562 ti the Finance Director may invest in any legal investment permitted to the City), and, except as provided in this section, to hold such money and investments not needed to redeem the Bonds and pay interest thereon in the Escrow Fund until all of the bonds are redeemed, both principal and interest, after which any money remaining in the Escrow Fund shall be transferred back to their originating fund in same proportions as set forth in Section 5. Any deficiencies in the Bond Fund resulting from the non- payment of assessment installments and interest thereon when due, and not attributable to the interest differential between the assessment rolls and the Bonds, shall be paid from the Local Improvement District Guaranty Fund of the City and not from the Escrow Fund. The City shall annually audit the Escrow Fund and furnish such audit to Foster & Marshall Inc. or its successor. Beginning in 1983, if any such audit shows that money and investments in the Escrow Fund is in excess of the needs of that Fund for the payment of the remaining outstanding Bonds, the excess amount may be trans- ferred, with the approval of Foster & Marshall Inc., or its successor, to the originating funds in the proportions set forth in Section 5. For the purpose of making payments into the Bond Fund or trans- ferring such excess, the City may sell or convert investments in the Escrow Fund into cash and other investments which comply with the applicable yield restrictions of Section 103(c) of the Internal Revenue Code and applicable regulations thereunder. The provisions of this section shall constitute a covenant with the holders of the Bonds and, as long as any Bonds shall remain outstanding, shall be irrevocable. Section 7. Foster & Marshall Inc. of Seattle, Washington, has submitted an offer to purchase all of the Bonds at a price of par, plus accrued interest from the date of the Bonds to the date of their delivery to the purchaser, the City to furnish the printed Bonds and the approving legal opinion of Roberts, Shefelman, Lawrence, --------------------- 5 Ordinance No. 3562 Gay & Moch, municipal bond counsel of Seattle, Washington, at the City's expense. Bond counsel shall not be required to review nor 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 Bonds, and bond counsel's opinion shall so state. The City Council, deeming that it is in the best interest of the City that such offer be accepted, hereby accepts the same. The Bonds shall, therefore, immediately upon their execution, be delivered to Foster & Marshall Inc., Seattle, Washington, upon payment therefor in accordance with such offer. The principal proceeds of the Bonds received at the delivery to the purchaser shall be deposited in the respective local improvement district funds in the respective amounts equal to the assessment balances shown in Section 1 for the purpose of paying, together with other money made available therefor, the obligations of those funds. The accrued interest shall be deposited in the Bond Fund, except $174,720.29 of the principal proceeds of the Bonds in lieu of being deposited in Local Improvement Fund, District No. 305, shall be deposited in Local Improvement Fund, District No. 303 in repayment for money advanced (by the issuance of revenue warrants) to the former fund by the latter fund. Section 8. This ordinance shall take effect from and after its passage and five (5) days following its publication as required by law. PASSED by the City Council and APPROVED by the Mayor of the City of Auburn, Washington, at a regular open public meeting thereof, on the 1st day of December, 1980 ATTEST: City Clerk F0 APPROVED: y Attorney ` PUBLISHED: DECEMBER 11, 1980 --------------------- 6 Ordinance No. 3562 STATE OF WASHINGTON) ss. COUNTY OF KING ) I, Coralee A. McConnehey, the duly appointed, qualified City Clerk of the City of Auburn, a Municipal Corporation and Code City, situate in the County of King, State of Washington, do hereby certify that the fore- going is a full, true and correct copy of Ordinance No. 3562 of the ordinances of the City of Auburn, entitled "AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICTS; ESTABLISHING CONSOLIDATED LOCAL IMPROVEMENT DISTRICT N0. 295 ET AL. AND CONSOLIDATED IMPROVEMENT FUND, DISTRICT NO. 295 ET AL.; AUTHORIZING THE ISSUANCE AND FIXING THE AMOUNT, FORM, DATE, INTEREST RATE, MATURITY AND DENOMINATIONS OF THE CONSOLIDATED LOCAL IMPROVEMENT DISTRICT NO. 295 ET AL. BONDS, PROVIDING FOR THE CITY'S CONTRIBUTION TOWARD PAYING THE COSES OF THE LOCAL IMPROVEMENT DISTRICTS BEING CONSOLIDATED; CREATING A SPECIAL ESCROW FUND; AND PROVIDING FOR THE SALE AND DELIVERY OF THE BONDS TO FOSTER & MARSHALL INC. OF SEATTLE, WASHINGTON. I certify that said Ordinance No.3562 was duly passed by the Council and approved by the Mayor of the said City of Auburn, on the lst day of DPramhPr A.D., 19-.Rp . I further certify that said Ordinance No.7SS2 was published as provided by law in the Daily Globe News, a daily newspaper published in the City of Auburn, and of general circulation therein, on the 77th day of naremhrr A.D., 19__a0_-. WITNESS my hand and the offical seal of the City of Auburn, this 12th day ofnaramhar A.D., 19BD-. h?h????wtJc? ?'_ L CITY CLERK OF THE CITY OFAUBURN