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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
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Ordinance No. 3661
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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
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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
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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
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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
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Ordinance No. 3661
Myor
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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