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ORDJ:NANCE NO. .. 5 6 5
AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 344
AND ESTABLISHING LOCAL IMPROVEMENT FUND, DISTRICT NO. 344 ;
FIXING THE AMOUNT, FORM, DATE, INTEREST RATES, AND MATURITY OF
THE LOCAL IMPROVEMENT DISTRICT NO. 344 INSTALLMENT NOTE; AND
FIXING THE INTEREST RATE ON· LOCAL IMPROVEMENT DISTRICT
ASSESSMENT INSTALLMENTS.
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WHEREAS, the City Council of the City of Auburn,
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Washington heretofore has created Local Improvement District
No. 344 for the improvement of Main Street; and,
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WHEREAS, Chapter 35.45 RCW allows Local Improvement
District improvements to be financed by means of installment
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notes.
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NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN DO
ORDAIN AS FOLLOWS:
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section 1.
CREATION OF LOAN FUND AND DEPOSJ:T OF
ASSESSMENTS.
There is herein created and established in the
office of the City Finance Director a special local
improvement district fund for Local Improvement District No.
344 to be known and designated as Local Improvement Fund,
District No. 344, hereinafter referred to as the "Loan Fund".
All money presently on hand representing collections
pertaining to installments of assessments and interest thereon
in LID No. 344 shall be transferred to and deposited into the
Loan Fund, and all collections pertaining to assessments on
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Ordinance No. 4565
May 27, 1992
Page 1
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be deposited into the Loan Fund to repay outstanding principal
and interest on the installment note authorized herein.
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Section 2.
Local
DESCR:IPT:ION OF :INSTALLMENT NOTE.
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Improvement District No.
344 shall be financed by an
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installment note issued to the City Water Fund.
The note is
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issued in the total principal amount of Seventy Thousand, Five
Hundred, Sixty-one Dollars and Eight Cents ($70,561.08), being
the total amount on the assessment rolls of LID No. 344
remaining uncollected after the expiration of the 3D-day
interest-free prepayment period. The note shall be repaid
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from future principal, interest, and penalty cha.rges made on
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assessments for LID 344.
Interest on the note shall be 6.5%
per year.
Section 3.
:INSTALLMENT NOTES.
Application of Local
Improvement District No. 344 funds for the reduction of the
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principal and interest amounts due on any note herein provided
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to finance LID No. 344 improvements sha 11 be made not less
than once each year beginning with the issue date thereof.
The note issued sha 11 bear on the face thereof: (1) the name
of the payee; (2) the number of the local improvement district
from whose funds the note is payable; (3) the date of issue of
the note; (4) the date on which the note, or the final
installment thereon, shall become due; (5) the rate or rates
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Ordinance No. 4565
May 27, 1992
Page 2
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balance thereof; and, (6) the signatures and attestations of
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the Mayor and City Clerk.
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The reverse side of the installment note shall bear a
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tabular payment record which shall indicate, at prescribed
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installment dates, the receipt of any LID NO. :144 funds for
the purpose of servicing the debt evidenced by said note.
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Such receipts shall first be applied toward the interest due
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on the unpaid balance of the note, and any additional moneys
shall thereafter apply as a reduction of the principal amount
thereof. The tabular payment record shall, in addition to the
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above,
show the unpaid principal balance due on the
installment note, together with sufficient space I~pposite each
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transaction affecting said note for the manual signature of
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the Finance Director.
Whenever there are insufficient funds in the Loan Fund to
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meet any payment of installment interest due on any note
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herein
defaulted
authorized,
non-interest
a
bearing
installment interest certificate shall be issued by the City
Finance Director which shall consist of:
(1) a written
statement certifying the amount of such defauI·ted interest
installment; (2) the name of the payee of the note to whom the
interest is due; and, (3) the number of the local improvement
district from whose funds the note and interest: thereon is
payable.
The certificate herein provided shall bear the
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Ordinance No. 4565
May 27, 1992
Page 3
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manual signature of the Finance Director or his/her authorized
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agent.
The defaulted installment interest certificate so
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issued shall be redeemed for the face amount thereof with any
available funds in the local improvement guaranty fund.
Whenever at the date of maturity of any installment note
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there are insufficient funds in LID No.
344, due to
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delinquencies in the collection of assessments, to pay the
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final installment of the principal due thereon, the note shall
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be redeemed with any available funds in the local improvement
guaranty fund for the amount of said final installment.
All certificates and notes are to become subject to the
same redemption privileges as apply to any local improvement
district bonds and warrants now accorded the prot4~ction of the
local improvement guaranty fund as provided in Chapter 35.54
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RCW; and, whenever a note issued as herein provided is
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redeemed by said local improvement guaranty fund, such shall
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be held therein as investments thereof in the same manner as
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prescribed for other defaulted local improvement district
obligations.
Notwithstanding any other statutory provisions, the
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improvement guaranty fund law shall be considered a legal
investment for any available surplus funds of t:he City and
shall be considered a legal investment for all national and
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Ordinance No. 4565
May 27, 1992
Page 4
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shall be considered a legal investment for all national and
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state banks, savings and loan institutions, and. any and all
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other commercial banking or financial institutions to the same
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extent that the local improvement district bonds and any
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coupons issued pursuant to the provisions of Chapter 35.45 RCW
have been and are legal investments for such institutions.
This installment note may be transferred or sold by the city
upon such terms or conditions and in such manner as the City
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Council may determine, or may be issued to another fund of the
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City: Provided, however, that the same shall no·t be sold at
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less than par plus accrued interest.
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Notwithstanding the provisions of this section, this note
may be issued, and this note may be sold, in accordance with
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Chapter 39.46 RCW.
Section .. .
The City of
:INSTALLMENT NOTE--REFUNDING.
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Auburn may refund the note authorized herein or the principal
thereof then outstanding payable by the issuance of local
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improvement district bonds pursuant to Chapter 3~).45 RCW and
by the payment into the fund holding this no1:e the then
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thereon accrued to the date of such refunding.
The bonds
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Ordinance No. 4565
May 27, 1992
Page 5
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the Loan Fund the City applies to the redemption of this note;
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and, (4) be sold at not less than par plus accrued interest to
date of delivery. Any interest payable on the bonds in excess
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of the interest payable on assessment instalLDlents payable
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into the Loan Fund shall be paid from the general fund of the
City in accordance with RCW 35.45.065. The principal proceeds
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and interest accrued to date of delivery of the bonds shall be
paid into the Loan Fund and the note shall be redeemed on that
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date.
The City shall pay all costs and expenses of such
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refunding from moneys available therefor.
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Section 5.
The Finance Director may
UNDERFUND LOANS.
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authorize the note to be purchased from the Water Fund by any
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City Fund as may from time-to-time be appropriate. at the same
interest rate as authorized herein.
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Section 6.
The City
OPTIONAL REDEMPTION OF BONDS"
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reserves the right and option to prepay the note élt any time.
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Section 7.
The interest
INTEREST RATE ON ASSESSMENTS.
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rate on the installments and delinquent payments of the
special assessments in Local Improvement District No. 344 is
fixed at the rate of 7% per annum.
Section 8. The Mayor is hereby authorized to implement
such administrative procedures as may be necessary to carry
out the directions of this legislation.
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Ordinance No. 4565
May 27, 1992
Page 6
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Section 9. This Ordinance shall take effect and be in
force five (5) days from and after its passage, approval and
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publication, as provided by. law.
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PASSED:
INTRODUCED:
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APPROVED:
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ATTEST:
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~ !1JJJ-ILLlw~
Rob1n Wohlhueter,
City Clerk
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APPROVED AS TO FORM:
sà~~,
City Attorney
Published:
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Ordinance No. 4565
May 27,1992
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ÆøI~~
MAYOR