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CITY OF AUBURN, WASHINGTON
ORDINANCE NO. 4968
AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICT
NO. 346; FIXING THE AMOUNT, FORM, DATE, INTEREST RATE
AND MATURITY OF THE LOCAL IMPROVEMENT DISTRICT NO. 346
BOND; PROVIDING FOR THE SALE AND DELIVERY THEREOF TO U.
S. BANK OF WASHINGTON, NATIONAL ASSOCIATION IN SEATTLE,
WASHINGTON; AND FIXING THE INTEREST RATE ON LOCAL
IMPROVEMENT DISTRICT NO. 346 ASSESSMENT INSTALLMENTS.
THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON,
as follows:
Section 1. Authorization and Description of B~-.
amount of the assessment roll in Local Improvement
No. 346 (the "District")
"City"), created under
1994, was $337,750.60.
of assessments
February 9, 1997,
was $131,673.60,
assessment roll in
Improvement District
DO ORDAIN
The total
District
in the City of Auburn, Washington (the
Ordinance No. 4708, passed December 5,
The 30-day period for making cash payments
without interest in the District expired on
and the total amount of assessments paid in cash
leaving a balance of assessments unpaid
the sum of $206,077. A single
No. 346 Bond (the
on the
Local
"Bond") shall, therefore,
be issued in the total principal sum of $206,077.
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U.S. Bank of Washington, National Association of Seattle,
Washington (the "Bank") has offered to purchase the Bond under
the terms of its purchase offer dated March 27, 1997 (the
"Offer"), and this ordinance. The Bond shall be dated its date of
issuance, shall mature on March 31, 2009, and shall be numbered R-
I, in the manner and with any additional designation as the Bond
Registrar (the Finance Director of the City, who is hereby
appointed as Bond Registrar, located in Auburn, Washington) deems
necessary for the purpose of identification. Interest shall be
computed on the basis of a 360-day year of twelve 30-day months,
shall bear interest at the rate of 5.85% per annum, payable
annually commencing March 31, 1998 (the "Interest Payment Date")
to maturity or prepayment. Principal is payable at maturity or
early prepayment.
Section 2. Reqistration ~n~ Transfer of Bond.
The Bond shall be
Bond Reaistrsr.
issued to the Bank 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 the Bond and the principal amount and number of the
Bond.
Ordinance No. 4968
4/28/97
Page 2
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The Bond may not be assigned or transferred by the Bank,
except that the Bank may assign or transfer the Bond to any
successor to the business and assets of the Bank. When the Bond
has been paid in full, both principal and interest, the Bond shall
be surrendered by the Bank to the Bond Registrar, who shall cancel
the Bond.
The Bond Registrar shall keep, or cause to be kept~ at her
office, sufficient books for the registration of the Bond. The
Bond Registrar shall serve as the City's authenticating trustee,
transfer agent, registrar and paying agent for the Bond and shall
comply fully with all applicable federal and state laws and
regulations respecting the carrying out of those duties. The Bond
Registrar is authorized, on behalf of the City, to authenticate
and deliver the Bond in accordance with the provisions of the Bond
and this ordinance, to serve as the City's paying agent for the
Bond and to carry out all of the Bond Registrar's powers and
duties under this ordinance.
The Bond shall state on its face that the principal of and
interest on the Bond shall be paid only to the owner thereof
as such on the Bond Register as of the record date set
registered
Ordin~ce No. 4968
4/28/97
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forth therein and to no other person or entity, and that the Bond
may not be assigned except on the books of the Bond Registrar.
Section 3. ~. Both principal of and interest
on the Bond shall be payable solely out of the Local Improvement
Fund, District No. 346 (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
Bond shall be paid by check or draft mailed, or wire transferred,
to the Bank on the Interest Payment Date at the address appearing
on the Bond Register. Principal of the Bond at maturity or prior
repayment is payable at the office of the Bond Registrar in
Auburn, Washington, upon presentation and surrender of the Bond.
Section 4. PreDa_vment and Redemption of Bond. On each
Interest Payment Date, the City shall apply all amounts remaining
in the Bond Fund, after payment of accrued interest, to the
prepayment at par of outstanding principal of the Bond. Interest
on the Bond or the portion of principal thereof so prepaid shall
cease to accrue interest on the date of such prepayment.
The City shall provide three days written notice to the Bank
of the final payment of principal of and interest on the Bond.
Section 5. Failure to Redeem Bond. If the Bond is not
redeemed when properly presented at its maturity or prepayment
Ordinance No. 4968
4/28/97
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date, the City shall be obligated to pay interest on the Bond at
the same rate provided in the Bond from and after its maturity or
prepayment date until
paid in full or until
on deposit in the Bond
payment.
Section 6. Pledge of
collected in the District,
the Bond, both principal and interest, is
sufficient money for its payment in full is
Fund and the Bond has been called for
if any, are pledged to
solely out
together with interest and penalties,
the payment of the bond which are payable
of the Bond Fund and the Local Improvement Guaranty
Fund of the City in the manner provided by law.
general obligation of the City.
The Bond is not a
Section 7. Form and Execution of Bond. The Bond 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 the 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
Certificate of Authentication
manually signed by the Bond Registrar, and
printed thereon.
The Bond shall bear thereon a
in the following form,
Ordinance NO. 4968
4/28/97
Page 5
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only if so executed, shall the Bond be valid or obligatory for any
purpose or entitled to the benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This Bond is the fully registered City of Auburn,
Washington, Local Improvement District No. 346 Bond
described in the Bond Ordinance.
By
Finance Director of the
City of Auburn, Washington,
Bond Registrar
The authorized signing of a Certificate of Authentication shall be
17 conclusive evidence that the Bond so authenticated has been duly
18 executed, authenticated and delivered and is entitled to the
19 benefits of this ordinance.
20 If any officer whose facsimile signature appears on the Bond
21 ceases to be an officer of the City authorized to sign bonds
22 before the Bond bearing his or her facsimile signature are
23 authenticated or delivered by the Bond Registrar or issued by the
24 City, those Bond nevertheless may be authenticated, issued and
25 delivered and,
26 as binding on
27 an officer of
when authenticated, issued and delivered, shall be
the City as though that person had continued to be
the City authorized to sign bonds. Any Bond also
Ordinanc~ NO. 4968
4/28/97
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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 8. ~. The Bond shall be
a negotiable
instrument to the extent provided by RCW 62A.8-102 and 62A.8-105.
Section 9. Preservation of Tax Exemption for Interest on thn
Bond. The City covenants that it will take all actions necessary
to prevent interest on the Bond 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 Bond or
other funds of the City treated as proceeds of the Bond at any
time during the term of the Bond which will cause interest on the
Bond to be included in gross income for federal income tax
purposes. The City also covenants that it will, to the extent the
arbitrage rebate requirement of Section 148 of the Internal
Revenue Code of 1986, as amended (the "Code"), is applicable to
the Bond, take all actions necessary to comply (or to be treated
as having complied) with that requirement in connection with the
Bond, including the calculation and payment of any penalties that
the City has elected to pay as an alternative to calculating
rebatable
arbitrage, and the payment of any other penalties if
Ordinance NO. 4968
4/28/97
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1 required under Section 148 of
2 Bond from
3 purposes. The City certifies that
4 listing or proposed listing by the
5 effect
the Code to prevent interest on the
being included in gross income for federal income tax
it has not been notified of any
Internal Revenue Service to the
that it is a bond issuer whose arbitrage certifications may
not be relied upon.
Section 10. Designation of Bond as ~ "Oualified Tax-Exemp~
~." The City has determined and certifies that {a) the
Bond is not a "private activity bond" within the meaning of
Section 141 of the Code; (b) the reasonably anticipated amount of
tax-exempt obligations (other than private activity bonds and
other obligations not required to be included in such calculation)
which the City and any entity 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) will issue during
the calendar year in which the Bond is issued will not exceed
$10,000,000; and (c) the amount of tax-exempt obligations,
including the Bond, 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 Bond is issued does
not exceed $10,000,000. The City designates the Bond as a
Ordinance NO. 4968
4/28/97
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"qualified
Section 265(b) (3)
Section 11.
tax-exempt obligation,,
of the Code.
Use of Bond Proceeds
for the purposes of
A loan fee in the amount of $515 shall be paid to the Bank at
closing and shall be paid out of the Local Improvement Fund,
District No. 346.
Section 12. Approval of Offer. U.S. Bank of Washington,
National Association, of Seattle, Washington, has presented the
Offer to the City offering to purchase the Bond under the terms
and conditions provided in the Offer, which written Offer is on
file with the Finance Director and is incorporated herein by this
reference. The City Council finds that entering into the Offer is
in the City's best interest and therefore accepts the Offer
contained therein and authorizes its execution by City officials.
Ordinance No. 4968
4/28/97
Page 9
Principal proceeds of the Bonds shall be used to finance the costs
by repaying interfund loans of the City and to pay the costs of
issuance of the Bond. 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 Bond Fund and
be spent for the purposes of that fund, and earnings subject to a
federal tax or rebate requirement may be used for those tax or
rebate purposes.
and Fee Payment to Bank.
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The Bond will be printed at City expense and will be
delivered to the purchaser in accordance with the Offer, with the
approving legal opinion of Foster Pepper & Shefelman, municipal
bond counsel of Seattle, Washington, regarding the 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, if any,
issued or used in connection with the Bond, 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 Bond to the
purchaser and for the proper application and use of the proceeds
of the sale thereof.
Section 13. Fixing Interest Rate on
interest rate on the installments and delinquent payments
special assessments in the District is revised and fixed
rate of 6.35% per annum.
in
The
of the
at the
Section 14. ~. Ail actions previously taken
accordance with this ordinance are hereby ratified and
confirmed.
Ordinance NO. 4968
4/28/97
Page 10
1 Section 15. Effective Date of Ora~-~-. This ordinance
2 shall take effect and be in force from and after its passage and
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five days following its publication as required by law.
INTRODUCED
PASSED:
APPROVED:
Charles A. Booth, Mayor
ATTEST:
Robin Wohlhueter, City Clerk
21 APPROVED AS TO FORM:
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26 Michael J. Reynolds,
City Attorney
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PUBLISHED:
4/28/97
I, ROBIN WOHLHUETER, City Clerk of the City of Auburn,
Washington, certify that the attached copy of Ordinance No.
is a true and correct copy of the original ordinance passed on the
18th day of February, 1997, as that ordinance appears on the
Minute Book of the City.
DATED this __ day of
, 1997.
ROBIN WOHLHUETER, City Clerk