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CITY OF AUBURN, WASHINGTON
ORDINANCE NO. 3781
AN ORDINANCE establishing Consolidated Local
Improvement District No. 300 et al. and Consolidated
Local Improvement Fund, District No. 300 et al.;
fixing the interest rate on local improvement dis-
trict assessment installments; tixing the amount,
form, date, interest rates, maturity and denomina-
tions of the Consolidated Local Improvement District
No. 300 et al. Bonds; providing for the City's
contribution toward paying the costs of the local
improvement districts being consolidated; creating a
special escrow account; making appropriations; and
providing for the sale and delivery thereof to Foster
& Marshall/American Express Inc., Seattle, Washington.
WHEREAS, the City Council of the City has heretofore
created Local Improvement Districts Nos. 300, 313, 314, 315,
316, 318 and 320 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 such 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 a consolidated local improvement district bond redemption
fund to be used to redeem outstanding consolidated local
improvement district bonds; NOW, THEREFORE,
THE CZTY 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 of Auburn, Washington
(the "City"), established by the following ordinances, respec-
tively, the 30-day period for making cash payment of assessments ,
without interest in each local improvement district having
expired in the case of the assessments for each local improve-
ment district, are consolidated into a consolidated local
improvement district to be known and designated as "COnsolidated
Local Improvement District No. 300 et al.":
Local Improvement Created By
District No. Ordinance No.
300 3318
313 3568
314 3561
315 3556
316 3554
318 3587
320 3640
Section 2. There is created and established in the office
of the Finance Director of the City for Consolidated Local
Improvement District No. 300 et al. a special consolidated local
improvement district fund to be known and designated as "Con-
solidated Local Improvement Fund, District No. 300 et al." (the
"BOnd Fund"). All money presently on hand representing collec-
tions pertaining to installments of assessments and interest
thereon in each of the local improvement districts listed in
Section 1 shall be transferred to and deposited in the Bond
Fund, and all collections pertaining to assessments on the
assessment rolls of those local improvement districts when here-
after received shall be deposited in the Bond Fund to be issued
to redeem outstanding Consolidated Local Improvement District
No. 300 et al. bonds.
Section 3. "Consolidated Local Improvement District No.
300 et al. Bonds" (the "Bonds") shall be issued in the total
principal sum of $2,045,071.28, being the total amount on the
assessment rolls of Local Improvement Districts Nos. 300, 313,
314, 315, 316, 318 and 320 remaining uncollected after the
expiration of the 30-day interest-free prepayment period. Bond
No. 1 shall be in the denomination of $5,071.28, and the remain-
ing Bonds numbered 2 to 409, inclusive, shall be in the denomi-
nation of $5,000.00 each. The Bonds all shall be dated July 15,
1982, and shall be payable on July 1, 1994,,with the right
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reserved to the City to redeem the Bonds prior to maturity on
any interest payment date, in numerical order, lowest numbers
first, whenever there shall be sufficient money in the Bond Fund
to pay the Bonds so called and all earlier numbered Bonds over
and above the amount required for the payment of the interest on
all unpaid Bonds, by publishing notice of such call once in the
official newspaper of the City or, if there is no official news-
paper of the City, then in a newspaper of general circulation in
the City not less than 10 nor more than 20 days prior to the
call date, and by mailing a copy of such notice within the same
period to the main office of Foster & Marshall/American Express
Inc. in Seattle, Washington, and upon such date the interest on
Bonds so called shall cease and each and every coupon repre-
senting interest not accrued on such date shall be void. Bonds
numbered 1 through 57, inclusive, shall bear interest at the
rate of 13.50$ per annum, Bonds numbered 58 through 200,
inclusive, shall bear interest at the rate of 13.75$ per annum,
and Bonds numbered 201 through 409, inclusive, shall bear
interest at the rate of 14.00$ per annum. Interest shall be
payable annually beginning July 15, 1983, to be represented by
interest coupons to maturity attached to each Bond. Both
principal of and interest on the Bonds shall be payable solely
out of 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 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 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
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facsimile signature of the Mayor, attested by the manual signa-
ture of the City Clerk and shall have a facsimile reproduction
of the seal of the City printed 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 CLID No. 300 et al. Escrow Account created by Sec-
tion 6, as a City contribution, pursuant to RCW 35.44.020, to
the cost of financing the local improvement district improve-
ments and the Bonds:
City On Behalf of
Contribution Transferred From LID No.
720 Water-Sewer Operating Fund 300
977 Water-Sewer Operating Fund 313
7,903 Street Fund 313
13,080 Water-Sewer Operating Fund 314
4,360 Water-Sewer Operating Fund 315
160 Street Fund 316
9,640 Water-Sewer Operating Fund 318
3,160 Water-Sewer Operating Fund 320
Section 6. Because of the difference in interest rates on
the final assessment rolls of the respective local improve-
ment 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 pay-
ments 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 account to be named the
"CLID No. 300 et al. Escrow Account." There shall be deposited
in the Escrow Account 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
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, . .
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 Account 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 Account such sum at or
before the time the Bonds are delivered to the purchaser
thereof, to invest that money from time to time in obligations
and other investments permitted to the City by law 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 as provided in
this section, to hold such money and investments not needed to
redeem the Bonds and pay interest thereon in the Escrow Account
until all of the Bonds are redeemed, both principal and inter-
est, after which any money remaining in the Escrow Account
shall be transferred back to the originating funds in their
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 Isprovement District Guaranty Fund of the City and not
from the Escrow Account.
The City shall annually audit the Escrow Account and
furnish such audit to Foster & Marshall/American Express Inc.
or its successor. Beginning in 1984, if any such audit shows
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. . .
that money and investments in the Escrow Account are in excess
of the needs of that Fund for the payment of the remaining
outstanding Bonds, the excess amount may be transferred, with
the approval of Foster & Marshall/American Express 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 transferring such excess, the City may sell or
convert investments in the Escrow Account 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/American Express Inc., of
Seattle, Washington, has submitted an o£fer to purchase all of
the Bonds at a price of $98 per each $100 of par value, plus
accrued interest from the date of the Bonds to the date of
their delivery to the purchaser, the City to furnish the
printed Bonds and the approving legal opinion of Roberts &
Shefelman (Roberts, Shefelman, Lawrence, Gay & Moch), municipal
bond counsel of Seattle, Washington, at the City's expense.
Bond counsel shall not be required to review nor express any
opinion concerning the completeness or accuracy of any official
statement, offering circular or other sales material issued or
used in connection with the Bonds, and bond counsel's opinion
shall so state. The City Council, deeming that it is in the
best interest of the City that such offer be accepted, accepts
the same. The Bonds shall, therefore, immediately upon their
execution, be delivered to Foster & Marshall/American Express
Inc., Seattle, Washington, upon payment therefor in accordance
with such offer.
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Section B. The interest rates on the installments and
delinquent payments of the special assessments in Local
Improvement District No. 300 shall be 7.5$ per annum and in
Local Improvement Districts Nos. 313, 314, 315, 316, 318 and
320 are revised and fixed at the rate of 13$ per annum, which
is the maximum permitted by the respective ordinances approving
and confirming the assessment rolls of those districts.
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 gth day of July, 1982 ,
e
Mayor
ATTEST:
C "jw
City Clerk
APPROVED AS TO FORM:
Ui, ~LL
Cit Attorney
July 11, 1982
Published I
li
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STATE OF WASHINGTON) -
) ss.
COUNTY OF KZNG - ) ,
I, CoraZee A. McConnehey, the duly appointed, qualified City CZerk
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 fv11, trae and corzect copy of Ordinance No. of the
ordinances of the City of Auburn, entitled "AN ORDINANCE~BLISHING
CONSOLIDATED LOCAL IMPROVEMINT DISTRICT N0. 300 ET AL. AND CONSOLIDATED
LOCAL IMPROVEMENT EUND, DISTRICT N0. 300 BT AL.; FIXING THE INTEREST RATE
ON LOCAL IMPROVEMENT DISTRICT ASSESSMENT INSTALLMENTS: FIXING THE AMOUNT,
FORM, DATE, INTF.REST RATES, MATURITY AND DENOMINATIONS OF THE CONSOLID-
ATID EOCAL.Ir1PROVEP4INT'DISTRICT N0. 300 ET AL. BONDS; PROVIDING FOR THE
CITY'S CONTRIBUTION TOWARD PAYING THE COSTS OF THE LOCAL IMPROVEMENT
DISTRICTS BEING CONSOLIDATED; CREATING A SPECIAL ESCROW ACCOUNT; MAKING
APPROPRIATIONS; AND PROVIDING FOR THE SALE AND DELIVERY THEREOP TO FOSTER
& MARSHALL?ANERUCAB EXPRESS INC., SEATTLE, WASI3INGTON.
I certify that said Ordinance No. 3781 was daly passed by the Counci2
and approved by the Mayor of the said City of Auburn, on the 6 day of
July R.D., 1982 .
Z further ceztify that said Ordinance No. 3781 was published as provided
by law in the Daily Globe News, a daily newspaper pablished in the City of
Auburn, and of general circulation therein, on the 11 day of July
A.D., 1982
WITNESS my hand and the offical sea2 of the City of Auburn, this 25
day of JulY , A.D., 1982
C ~
CZTY CLERK OF THE CITY OF AUBU
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