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HomeMy WebLinkAbout1978-2148 ISSUANCE & SALE OF WATER & SEWER REVENUE WARRANTS. ORDINANCE NO. cRJV8 AN ORDINANCE of the City of Yakima, Washington, providing for the issuance and sale . of water and sewer revenue warrants; creating a special fund; providing the form and terms of said warrants and for the disposition of 111 the proceeds of their sale; amending Ordinances 2123 and 2133 and Section 3.64.020 of the City of Yakima Municipal Code, and declaring an emergency. • WHEREAS, by Ordinances 2123 and 2133 passed.October 24, 1977 and December 8, 1977, respectively, the Council of the City of Yakima, Washington (the "City") has approved the acquisition, installation and construction of certain improvements to the wastewater collection, treatment and disposal system of the City, and the issuance of not to exceed $2,425,733 of water and sewer revenue bonds to carry out such improvements; and WHEREAS, theCity anticipates the issuance of such water and sewer revenue bonds and the receipt of certain grants to pay the cost of such improvements; and WHEREAS, R.C.W. 35.41.050 provides that cities and towns are authorized to issue revenue warrants to provide financing for . such purposes; and WHEREAS in order to provide interim financing for the cost of acquiring, constructing and installing a portion of the improve- . ments specified in said Ordinances 2123 and 2133 it is found to be.in the best interest of the City and its inhabitants to issue and sell its water and sewer revenue warrants in an aggregate amount Of up to $20,189,330. NOW, THEREFORE, BE IT ORDAINED by the City of Yakima, Washington, as follows: Section 1. As used in this ordinance the following words shall have the following meanings: a. The word "City" means the City of Yakima, Washington. 411 b. The words "Gross Earnings and Revenue" mean all of the earnings and revenue received by the City from the operation of the System, except assessments and installments thereof and ! , interest and penalties thereon collected in any utility local improvement district. c. The words "Operating and Maintenance Expenses" mean the normal expenses incurred by the City in causing the System to be • operated and maintained in good repair, working order and condi- tion, which shall exclude nonrecurring expenditures. d. The words "Plan Ordinances" mean Ordinances 2123 and 2133 of the City. e. The word "Project" means the wastewater collection, treatment and disposal facilities of the City described in the Plan Ordinances. f. The words "Project Fund" mean the Yakima Wastewater Facilities Project Fund created by Ordinance No. 2123. g. The word "System" means the water and sewer system of the City as the same shall be added to, bettered, and improved and extended for as long as the Warrants are outstanding. h. The word "Warrants" means the revenue warrants issued • pursuant to and for the purposes provided in this ordinance. i. The words "Warrant Fund" mean the "1978 Revenue Warrant Fund" created by Section 5 of this ordinance. Section 2. For the purpose of providing interim financing for the Project prior to the sale of revenue bonds and the receipt of grants, the City shall issue the Warrants in an aggregate principal amount of not more than $20,189,330. Warrants shall be numbered from one up consecutively in order of their issuance, and shall each be registered as of the day of delivery thereof to the purchaser thereof, and shall bear interest, at the rate fixed upon the sale thereof, from such date of registration. The Warrants shall be in any denominations which are a multiple of $1,000. Both principal of and interest on the Warrants shall be payable in lawful money of the United States of America at the office of the City Treasurer in Yakima, Washington and shall be obligations only of the Warrant Fund. -2- -.add Section 3. Warrants shall be called for redemption and payment, in order of their number, at any time when there are on deposit in the Warrant Fund monies sufficient to so redeem any outstanding Warrant or Warrants, plus accrued interest to the date of redemption. Notice of such intended redemption shall be given in writing to the original purchaser of the Warrant or Warrants to be redeemed at least one day in advance of the scheduled time of such intended redemption. Interest on any Warrant so redeemed shall cease on such redemption date unless the Warrant is not redeemed upon presentation made pursuant to such call. Section 4. All proceeds of sale of Warrants shall be paid into the Yakima Wastewater Facilities Project Fund of the City created by Ordinance No. 2123. Section 5. There is hereby created a special fund of the City to be known as the "1978 Revenue Warrant Fund" (heretofore defined as the "Warrant Fund"), which Fund is to be drawn upon for the sole purpose of paying the principal of and interest on the Warrants. All grants received by the City for the Project shall be paid into such Warrant Fund to the extent necessary (together with other available funds) to pay and redeem the Warrants. The City hereby obligates and binds itself to set aside and pay into the Warrant Fund out of the proceeds of the sale of the water and sewer revenue bonds to be issued for the Project, as authorized by Ordinance No. 2133, or out of the Gross Earnings and Revenue of the System legally available therefor after the payment of Operating and Maintenance Expenses and costs of debt service on any water and sewer revenue bonds of the City, amounts sufficient, together with other available funds, to pay the principal and interest on all outstanding Warrants. 111 The City hereby covenants that it will issue water and sewer revenue bonds in an amount sufficient, with other moneys of the -3- _ _ _ . - 04.811aIWNIer 1111111.ft■ City, if any, legally available and specifically set aside for such purpose, to pay the principal of and interest on the then outstanding Warrants. The City further covenants that simultaneously with the • receipt of the proceeds of sale of such bonds it will pay into the Warrant Fund moneys sufficient to pay the principal of and interest on the then outstanding Warrants and will immediately apply said moneys to the payment of such Warrants in accordance with their terms. Section 6. Each Warrant shall state on its face that it is payable solely from the 1978 Petzenue Wa=ant Fund and that said fund was created by this ordinance, identifying this ordinance by number. Section 7. The Warrants shall be signed on behalf of the City by its Finance Director and City Manager (one of which 'signatures may be a facsimile). Section 8. The Warrants shall be issued, from time to time, • in such aggregate amounts as are determined by the City Treasurer to be required (together with funds on hand in the Project Fund) to provide funds to pay the costs of the Project which are included in the City budget and for the payment of which costs anticipated grants, revenue bond proceeds or other moneys have not yet been received. Warrants to be so issued shall be sold by the City Treasurer at negotiated sale at a price of par. In determining whether to accept any bid or proposal for the pur- chase of Warrants, the City Treasurer shall consider the current status of the market for municipal securities and the relation- ship of such bid or proposal to said market. The appropriate City officials are hereby authorized and • directed to do everything necessary for the issuance and sale of the Warrants and the application of the proceeds of the sale thereof. -4- Section 9. Section 3 of Ordinance No. 2133 of the City, passed December 8, 1977, is hereby amended to read as follows: Section 3. All of such grants and all other monies available for payment of the cost of the above-described facilities and the proceeds of the sale of such bonds shall be paid, first, into the 1978 Revenue Warrant Fund of the City, to the extent required to pay and redeem all out- standing warrants drawn on said fund, and second, into the Yakima Wastewater Facilities Project Fund created by Ordinance No. 2123 of the City Council. All costs of such facilities shall be paid out of such project fund. When there are insufficient monies on hand in said project fund to pay approved costs of such facilities, warrants in payment thereof shall be drawn on such fund marked 'not paid for want of funds' and registered by the City Treasurer. Said warrants shall bear interest from date of registration at such rate as shall be determined by the City Treasurer based upon negotiation or competitive bid. Such warrants shall be redeemed in order of their number out of the first monies next on hand and available in said project fund. Section 10. Section 3.64.020 of the Yakima Municipal Code and said sections as contained in Ordinance No. 2123, passed October 24, 1977, are hereby amended to read as follows: 3.64.020 Source of funds. Proceeds from a contemplated issue of Wastewater Facilities Revenue Bonds, together with any money contributed or loaned by any governmental agency or any other source for the purposes specified in Section 3.64.010 above, shall be deposited first, into the 1978 Revenue Warrant Fund to the extent required to pay and redeem any outstanding warrants drawn on said warrant fund, and, second, into the Yakima Wastewater Facilities Project Fund, as any such money becomes available. The City Council may, from time to time, transfer or appropriate money from any available source into said project fund. Section 11. This ordinance is one to provide for the immediate preservation of the public peace, property, health, safety and welfare of the people of the City of Yakima and an emergency is hereby declared to exist and this ordinance shall be in full force and effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED by the Council of the City of Yakima, Washington this d 'day of January, 1978. CITY OF YAKIMA, WASHINGTON By ge, / g14974 Mayor ATTEST: . ."1 urdw City Clerk/ -5-