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HomeMy WebLinkAbout3620CITY OF AUBURN, WASHINGTON ORDINANCE NO. 3 6 2 0 AN ORDINANCE relating to local improvement districts; establishing Consolidated Local Improvement District No. 297 et al. and Consolidated Improvement Fund, District No. 297 et al.; authorizing the issuance and fixing the amount, form, date, interest rate, maturity and denominations of the Consolidated Local Improvement District No. 297 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; making appropriations 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. 297, 299, 311 and 312 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 improve- ment district to be known and designated as "Consolidated Local Improvement District No. 297 et al.": ----------------------- Ordinance No. 3620 Created By LID No. ordinance No. 297 3298 299 3308 311 3505 312 3506 Assessments Bal- ance on 3/78-1 $ 40,322.30 34,760.99 107,944.83 105,315.79 Section 2. There is created and established in the office of the Finance Director of the City for Consolidated Local Improvement District No. 297 et al., a special fund to be known and designated as "Consolidated Local Improvement Fund, District No. 297 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 March 1, 1981, shall be trans- ferred 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. 297 et al. Bonds. Section 3. "Consolidated Local Improvement District No. 297 et al. Bonds" (hereinafter called the "Bonds") shall be issued in the total principal sum of $288,343.91, being the total amount on the assessment rolls of Local Improvement Districts Nos. 297, 299, 311 and 312 remaining uncollected after March 1, 1981. Bond No. 1 shall be in the denomination of $8,343.91, and the remaining Bonds numbered 2 to 57, inclusive, shall be in the denomination of $5,000.00 each. The Bonds shall all be dated April 1, 1981, and shall be payable on April 1, 1993, 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 above the amount required for the 2 -------------------- Ordinance No. 3620 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 11.125% per annum, payable annually, beginning April 1, 1982, 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. It is found to be in the best interests of the City for the City to contribute money as its share toward paying the costs of each of the local improvement districts listed in Section 1 from funds related to the purposes of those respective improvements. For those purposes the following are amounts appropriated and 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 March 1, 1981, and Bond proceeds deposited in those funds) the outstanding obligations of those funds: Transferred to Local City Improvement District Contribution Transferred From Fund No. $7,268.40 Street Fund No. 101 297 6,801.67 Current Expense Fund No. 001 299 -------------------- 3 Ordinance No. 3620 In addition to the above transfers there shall be appro- priated and transferred to the CLID No. 297 et al. Escrow Fund, created by Section 6, as a City contribution, pursuant to RCW 35.44.020, to the cost of financing the local improvement district improvements and the Bonds, 14.78 of the amount required by Section 6 from the Street Fund No. 101, but in no event greater than $2,940, 69.68 of the amount required by Section 6 from the Water/Sewer Construction Fund No. 440, but in no event greater than $13,920, and 15.78 of the amount required by Section 6 from the Current Expense Fund No. 001, but in no event greater than $3,140. 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. 297 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 4 ------------------- Ordinance No. 3620 combined yield no greater than the yield permitted by Section 103(c) of the Internal Revenue Code and applicable regulations thereunder (except that to the extent the yields on investments are not limited, 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 1984, 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 -------------------- 5 Ordinance No. 3620 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, 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. 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 6th day of April, 1981. ATTEST: G City Clerk Sayor -------------------- Ordinance No. 3620 6 PUBLISHED: APRIL 16, 1981 I, CORALEE MCCONNEHEY, Washington, hereby certify that 3620 is a true and correct copy the 6th day of April, 1981, as Book of the City. DATED this 7th day of City Clerk of the City of Auburn, the attached copy of Ordinance No. of the original ordinance passed on that ordinance appears on the Minute April , 1981. &Lte Coralee McConnehey, City Clerk 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. 3620 of the ordinances of the City of Auburn, entitled "AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICTS; ESTABLISHING CONSOLIDATED LOCAL IMPROVEMENT DISTRICT NO. 297 ET AL. AND CONSOLIDATED IMPROVEMENT FUND, DISTRICT NO. 297 ET AL.; AUTHORIZING THE ISSUANCE AND FIXING THE AMOUNT, FORM, DATE, INTEREST RATE, MATURITY AND DENOMINATIONS OF THE CONSOLIDATED LOCAL IMPROVEMENT DISTRICT NO. 297 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; MAKING APPROPRIATIONS AND PROVIDING FOR THE SALE AND DELIVERY OF THE BONDS TO FOSTER & MARSHALL INC. OF SEATTLE, WASHINGTON." I certify that said ordinance No. 3620 was duly passed by the Council and approved by the Mayor of the said City of Auburn, on the 6th day of April A.D., 19_aL_. I further certify that said Ordinance No. 3620 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 16th day of April A.D., 19 81 WITNESS my hand and the offical seal of the City of Auburn, this 10th day of aril A.D., 19 81 CITY CLERK OF THE CITY OF AUBU