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HomeMy WebLinkAbout3781 p ' " - . • e ' 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 $5,000.00 each. The Bonds all shall be dated July 15, 1982, and shall be payable on July 1, 1994,,with the right - 2 - reserved to the City to redeem the Bonds prior to maturity on any interest payment date, in numerical order, lowest numbers first, whenever there shall be sufficient money in the Bond Fund to pay the Bonds so called and all earlier numbered Bonds over and above the amount required for the payment of the interest on all unpaid Bonds, by publishing notice of such call once in the official newspaper of the City or, if there is no official news- paper of the City, then in a newspaper of general circulation in the City not less than 10 nor more than 20 days prior to the call date, and by mailing a copy of such notice within the same period to the main office of Foster & Marshall/American Express Inc. in Seattle, Washington, and upon such date the interest on Bonds so called shall cease and each and every coupon repre- senting interest not accrued on such date shall be void. Bonds numbered 1 through 57, inclusive, shall bear interest at the rate of 13.50$ 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 - 3 - 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 - 4 - , . . 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 - 5 - . . . 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 $100 of par value, plus accrued interest from the date of the Bonds to the date of their delivery to the purchaser, the City to furnish the printed Bonds and the approving legal opinion of Roberts & Shefelman (Roberts, Shefelman, Lawrence, Gay & Moch), municipal bond counsel of Seattle, Washington, at the City's expense. Bond counsel shall not be required to review nor express any opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the Bonds, and bond counsel's opinion shall so state. The City Council, deeming that it is in the best interest of the City that such offer be accepted, accepts the same. The Bonds shall, therefore, immediately upon their execution, be delivered to Foster & Marshall/American Express Inc., Seattle, Washington, upon payment therefor in accordance with such offer. - 6 - Section B. The interest rates on the installments and delinquent payments of the special assessments in Local Improvement District No. 300 shall be 7.5$ 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 - 7 - - - 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 ~