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HomeMy WebLinkAbout3661 ,p CITY OF AUBURN, WASHINGTON ORDINANCE NO. 3 6 6 1 AN ORDINANCE relating to local improvement dis- tricts; fixing the amount, form, date, interest rate, maturity and denominations of Local Improvement District No. 310 Bonds; providing for the City's contribution toward paying the costs of the local improvement district; creating a special escrow fund; making appropriations and providing for the sale and delivery of the bonds to Foster & Marshall Inc. of Seattle, Washington. THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. The total amount of the assessment roll in Local Improvement District No. 310 in the City of Auburn, Washington (the "City"), created under Ordinance No. 3501, passed April 7, 1980, was $356,344.92. The 30-day period for making cash payments of assessments without interest in the District expired on June 17, 1981, and the total amount of assessments paid in cash was $582.21, leaving a balance of assessments unpaid on the assessment roll in the sum of $355,762.71. Local improvement district bonds of Local Improvement District No. 310 shall therefore, be issued in the total principal sum of $355,762.71. Bond No. 1 shall be in the denomina- tion of $5,762.71, and the remaining bonds numbered 2 to 71, inclusive, shall be in the denomination of $5,000.00 each. The bonds shall all be dated July 15, 1981, and shall be payable on July 15, 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 Local Improvement Fund, District No. 310," created by Ordinance No. 3501, to pay the bonds so called and all earlier numbered bonds over and 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 ------------------ Ordinance No. 3661 Page One • t 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 12.25% per annum, payable annually, beginning July 15, 1982, to be represented by interest coupons to maturity attached to each bond. Both principal of and interest on the bonds are payable at the office of the City Finance Director or, at the option of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. Section 2. 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 3. 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 the local improvement district from funds related to the purposes of the improvements. For that purpose $7,252.17 is appro- priated and shall be transferred from the Water/Sewer Construction Fund No. 440 to the Local Improvement Fund, District No. 310 for the purpose of paying (together with money from assessment payments, including interest, if any, thereon deposited in that fund as of June 17, 1981, and bond proceeds deposited in that fund) the out- standing obligations of that fund. In addition to the above transfer there shall be appro- priated and transferred to the LID No. 310 Escrow Fund, created by --------------------- Ordinance No. 3661 2 Section 4, as a City contribution, pursuant to RCW 35.44.020, to the cost of financing the local improvement district improvements and the bonds, an amount no greater than $32,000 from the Water/Sewer Construction Fund No. 440. Section 4. Because of the difference in the interest rate on the final assessment roll of the District and the interest rate on the bonds, and in order to insure that there will be sufficient money in Local Improvement Fund, District No. 310 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 Local Improvement Fund, District No. 310 a special fund to be named the "LID No. 310 Escrow Fund." There shall be deposited in the Escrow Fund from the funds specified in Section 3 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 Local Improvement Fund, District No. 310 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 authorized 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 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 ---------------------- Ordinance No. 3661 3 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 trans- ferred back to their originating fund in same proportions as set forth in Section 3. Any deficiencies in Local Improvement Fund, District No. 310 resulting from the non-payment of assessment installments and interest thereon when due, and not attributable to the interest differential between the assessment roll 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 3. For the purpose of making payments into Local Improvement Fund, District No. 310 or transferring such excess, the City may sell or convert investments in the Escrow Fund into cash and other invest- ments 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 5. Foster & Marshal]. 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 ------------------------ Ordinance No. 3661 4 bonds and the approving legal opinion of Roberts & Shefelman (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. 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 20th day of July, 1981. ATTEST: Q? City Clerk FOR APPROVED: C' Attorney PUBLISHED: July 28, 1981 ------------------ Ordinance No. 3661 Myor 4L2:49-or I 5 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. 3661 of the ordinances of the City of Auburn, entitled "AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICTS; FIXING THE ANDUNT,. FORM, DATE, INTEREST RATE, MATURITY AND DENOMIIQATIONS OF LOCAL IMPROVEMENT DISTRICT NO. 310 BONDS; PROVIDING FOR THE CITY'S CONMBUTION TOWARD PAYING THE COSTS OF THE LOCAL IMPROVE- MENT DISTRICT' 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. 366i1 _ was duly passed by the Council and approved by the Mayor of the said City of Auburn, on the 2Dth day of Ju]j' A.D., 19$j_. I further certify that said Ordinance No. 3661 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 ?Rt}; day of ,T111y A.D., 19__&L_. WITNESS my hand and the offical seal of the City of Auburn, this 26th day of nrtnhar , A.D., 19_&L CITY CLERK OF THE CITY OF AUBURN