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HomeMy WebLinkAbout1984-2823 GENERAL OBLIGATION BONDS - irrigation improvements ORDINANCE NO.2 2 3 • AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YAKIMA, WASHINGTON, ORDERING THE CONSTRUCTION OF CERTAIN IRRIGATION IMPROVEMENTS; AUTHORIZ- ING THE ISSUANCE AND SALE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY; AUTHOR- IZING THE ISSUANCE AND SALE OF LIMITED TAX GENERAL OBLIGATION BOND ANTICIPATION NOTES OF THE CITY; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF SUCH NOTES; FIXING THE DATE, FORM, INTEREST RATE, TERMS, MATURITY AND COVENANTS OF SUCH NOTES; CREATING A BOND ANTICIPATION NOTE FUND FROM WHICH THE PRINCI- PAL OF AND INTEREST ON SUCH NOTES SHALL BE PAID; AND CONFIRMING THE SALE OF SUCH NOTES. WHEREAS, the City of Yakima, Washington (the "City ") is situated within or served by irrigation projects previously owned or operated by water user's associations or corporations; 4111 WHEREAS, the City has acquired such water rights and has constructed and acquired systems to furnish water for irrigation proposed within the City pursuant to RCW 35.92.220. WHEREAS, the water so used for irrigation purposes is appur- tenant to the land located within the City; WHEREAS, the City is authorized by law to issue its general obligation bonds for the corporate purposes of the City, without a vote of the people, where the amount of the bonds, when added to the City's existing nonvoter approved indebtedness, does not exceed the amount of indebtedness chapter 39.36 RCW authorizes the City to incur without the assent of the voters; • WHEREAS, the City may issue the bonds described herein without exceeding the amount of indebtedness chapter 39.36 RCW authorizes the City to incur without a vote of the people; WHEREAS, chapter 39.50 RCW authorizes the City to issue its short term obligations to provide funding for public purposes in anticipation of the issuance of its bonds. 411/ • NOW, THEREFORE, Be it ordained by the City of Yakima. Section 1. Definitions. As used in this ordinance, the following words shall have the following meanings: A. "Bonds" means the $450,000 limited tax general obligation bonds of the City authorized by Section 3 of this Ordinance to be issued to pay the cost of the Project. B. "City" means the City of Yakima, Washington, a first class city duly organized and existing under and by virtue of the Constitution and laws of the State of Washington. C. "Capital Improvements Fund" means the City's Cumulative Reserve Fund for Capital Improvements, Fund No. •392. D. "Council" means the City Council of the City of Yakima, Washington, the general legislative authority of the City 1 11 1 as the same shall be duly and regularly constituted from time to time. E. "Finance and Budget Director" means the City's director of finance and budget or any successor to his/her func- tions and duties. F. "Notes" means the interest bearing limited tax general obligation bond anticipation notes in the principal amount of $450,000 to be issued pursuant to this ordinance to provide short term financing for the Project. G. "Note Fund" means the "City of Yakima, Washington, General Obligation Bond Anticipation Note Redemption Fund, 1984," created by Section 7 of this ordinance. H. "Note Ordinance" means this ordinance. 1. "Project" means the construction, acquisition and installation of the replacement diversion dam and diversion control structure specified, authorized and ordered by Section 2 of this ordinance. -2- JG74 84/11/27 411 J. The "Site" means the area at which the City plans III to construct the Project, River Mile 3.8 on the Naches River, approximately five miles northwest of the City on U.S. Highway 12. Section 2. Finding of Need and Authorization of the Project. 4110 The Council hereby finds that the City needs to replace the existing concrete diversion dam and diversion control structure located at River Mile 3.8 on the Natches River (the "Site") with a new concrete diversion dam and diversion control structure in order to provide for the distribution and delivery of water for irrigation purposes within and without the City; The Council hereby specifies, authorizes and orders the construction, acquisition and installation of the Project at the Site. The Project shall consist of the following: 410 (a) The diversion and protection of the river during con- struction of the Project; (b) The demolition of most of the existing diversion dam and diversion control structure; (c) The construction of a new diversion dam and diversion control structure; (d) The construction of a fish ladder on the north side of the new diversion dam. (e) The construction of a concrete structure to house the fish screen and the associated operation mechanism; and III (f) The construction, acquisition and installation of any additional improvements necessary or convenient to the implementa- tion of the Project. The estimated cost of the Project is $1,131,000. Section 3. Authorization of the Bonds. As an integral part of the construction, acquisition and installation of the Project, the City shall issue and sell such of its limited tax general 4111 obligation bonds (the "Bonds") in such amounts or amounts and at -3- JG74 84/11/27 , . , such time or times as the City Council may determine to be in the best interest of the City and its inhabitants. III The Bonds shall be issued in an amount sufficient, together with any other funds legally available to pay principal and interest on the Notes, on or before their maturity. The Bonds to 1111 be issued shall be in such denomination(s) and form; shall be dated, and bear interest at such rate or rates; shall be payable at such place or places; and shall have such option of payment prior to maturity's as shall be determined by the City Council. Section 4. Authorization of the Notes. For the purpose of providing short term financing to pay part of the cost of the construction, acquisition and installation of the Project, and in anticipation of the issuance of the Bonds, the City shall issue its short term obligations in the form of limited tax general obligation bond anticipation notes in the principal amount of $450,000. Said short term obligations shall be designated the "City of Yakima, Washington, Limited Tax General Obligation Bond Anticipation Notes, 1984," (the "Notes"). The Notes shall be issued in bearer form, shall be dated, shall be sold in such manner to such purchaser or purchasers, shall be in such denominations, shall mature on such date prior to one year from the date of their issuance, shall be redeemable on such terms and shall bear such rate or rates of interest (which III may be a fixed or variable rate or rates) as shall be determined by the Finance and Budget Director of the City in accordance with this ordinance. Interest may be computed on the basis of either a 360-day year or a 365-day year, as determined by the Finance and Budget Director. The rate of interest on the Notes shall not exceed eight percent (8.0%) per annum. The amount of the Notes shall be not exceed $450,000. The price of the Notes shall be one hundred percent (100%) of par. 411 -4- JG74 84/11/27 1111 The City shall be obligated to pay interest at the same rate 411 for each Note from and after the maturity date thereof until such Note shall have been paid or until funds shall have been duly • provided in the Note Fund, hereinafter created, for such payment in full. Both principal of and interest on the Notes shall be payable upon presentation and surrender of the Notes to the Finance. and Budget Director at the office of the Finance and Budget Director in Yakima, Washington. Section 5. Prior Redemption. The Notes are not subject to redemption prior to maturity. Section 6. Application of Note Proceeds. The proceeds of III1 the Notes shall be paid into the City's Cumulative Reserve Fund for Capital Improvements, Fund No. 392, and shall be used solely to pay the costs of the Project. Section 7. Note Fund. A special fund of the City to be known as the "City of Yakima, Washington, Limited Tax General Obligation Bond Anticipation Note Redemption Fund, 1984," (the "Note Fund") is hereby authorized to be created by the Finance and Budget Director. Said Note Fund shall be drawn upon for the sole purpose of paying the principal of and interest on the Notes. Money on deposit in the Note Fund not immediately needed to pay such interest or principal may temporarily be deposited in such 4110 institutions or invested in any obligations which are legal investments for City funds. Any interest or profit from the investment of such money shall be deposited into the Note Fund. The City hereby covenants that it will issue the Bonds, additional short term obligations or a combination thereof, which will provide proceeds sufficient, together with other moneys of the City, if any, legally available and specifically set aside for such purpose, to pay the principal of and interest on the Notes on 111 -5- JG74 84/11/27 or before the maturity thereof. The City further covenants that simultaneously with the receipt of the proceeds of sale of the Bonds it will pay into the Note Fund money sufficient to pay the principal of and interest on the Note then outstanding and will so apply said money to the payment of the Note in accordance with its 411/ terms on or before the maturity thereof. The City does hereby pledge and bind itself to set aside and pay into the Note Fund created by this ordinance, the various amounts required by the Note Ordinance to be paid and maintained in said Note Fund, all within the times provided by this ordinance. Section 8. Note Form. The Notes shall be in substantially the following form: UNITED STATES OF AMERICA 4 11 1 NO. STATE OF WASHINGTON CITY OF YAKIMA GENERAL OBLIGATION BOND ANTICIPATION NOTES, 1984 The City of Yakima, Washington (the "City"), a municipal corporation organized and existing under and by virtue of the Constitution and laws of the State of Washington, hereby acknowl- edges itself to owe and for value received promises to pay to bearer on , 1985, solely from the sources hereinafter mentioned, together with interest from the date hereof at the rate of % per annum payable upon maturity. 4 11 1 Interest on this note shall be calculated on the basis of Fa 360-day year consisting of twelve 30-day months.] [a 365-day year based on the actual number of days elapsed.] Both principal of and interest on this note are payable in lawful money of the United States of America, but only upon surrender hereof at the office of the director of finance and budget of the City in Yakima, Washington. The City has not reserved the right to redeem this note in advance of its scheduled maturity. 411 -6- JG74 84/11/27 411 This note is issued pursuant to duly passed and approved ordinances of the City, including Ordinance No. (the "Note 111 Ordinance") passed December 4, 1984, for the purpose of financing irrigation improvements of the City as authorized by the Note Ordinance, all in conformity with the Constitution and laws of the State of Washington and ordinances of the City. The City does hereby pledge and bind itself to issue the Bonds (as defined in the Note Ordinance) or additional bond anticipation notes or a combination of the foregoing in an amount sufficient, with other money of the City, if any, legally avail- able and specifically set aside for such purpose to pay the principal of and interest on this note upon its maturity. The City does hereby further pledge that simultaneously with the receipt of the proceeds of sale of the Bonds or additional bond anticipation notes, it will pay into the City of Yakima General Obligation Bond Anticipation Note Redemption Fund, 1984 money sufficient to pay the principal of and interest on the notes then outstanding. The full faith, credit and resources of the City are hereby pledged to the prompt payment of this note as the same become due. It is hereby certified and declared that this note is issued pursuant to and in strict compliance with the Constitution and 4111 laws of the State of Washington and duly adopted ordinances of the City, and that all acts, conditions and things required to have happened, been done and performed precedent to and in the issuance hereof have happened, been done, and performed and that the total indebtedness of the City, including this note, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the City of Yakima, Washington, has caused this note to be signed with the manual or facsimile signa- ture of its Mayor, to be attested by the manual signature of the Clerk of the City and the corporate seal of the City to be impressed or imprinted hereon, as of this day of , 1984. CITY OF YAKIMA, WASHINGTON By Mayor ATTEST: 411 By, City Clerk [SEAL] Section 9. Execution of the Notes. The Notes shall be exe- cuted on behalf of the City by the facsimile or manual signature of the Mayor, shall be attested by the manual signature of the Clerk and shall have the corporate seal of the City impressed or imprinted thereon. -7- JG74 84/11/27 Section 10. Lost or Destroyed Notes. In case any Note secured by this ordinance shall be lost, stolen or destroyed, the 411 City may execute and the Finance and Budget Director may deliver a new note or notes of like amount, date, number and tenor to the holder thereof upon the holder's paying the expenses and charges 4 11 1 of the City in connection therewith, and upon his filing with the Finance and Budget Director evidence satisfactory to said Finance and Budget Director that said Note or Notes were actually lost, stolen or destroyed and of his ownership thereof, and upon fur- nishing the City with indemnity satisfactory to the Finance and Budget Director. Section 11. Authorization to Officials and Agents. The appropriate City officials, agents and representatives are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Notes, and for the proper use and application of the proceeds of sale thereof as provided in this ordinance. The Finance and Budget Director is hereby author- ized as designated representative of the City to act on its behalf in selling and delivering the Notes. Section 12. Notes Not Arbitrage Bonds. The City covenants and agrees with the holder of the Notes that it will not use or invest the proceeds of the Notes or any other funds of the City for any purpose or in any manner which would cause the Notes to 4111 become "arbitrage bonds" as defined in Section 103(c) of the Internal Revenue Code of 1954, as amended, and the applicable regulations promulgated thereunder, or which would result in interest on the Notes becoming taxable income to the holder thereof under Section 103 of the Internal Revenue Code of 1954. Section 13. Severability. If any one or more of the cove- nants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent 4 11 0 -8- JG74 84/11/27 411 jurisdiction to be contrary to law, then such covenant or cove- ", nants, agreement or agreements, shall be null and void and shall be separable from the remaining covenants and agreements in this ordinance and shall in no way affect the validity of the other • provisions of this ordinance or of the Notes. Section 14. Prior Acts. All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby ratified and confirmed. Section 15. Effective Date. This Ordinance shall be effec- tive 30 days after the date of its publication. PASSED AND APPROVED at a regular meeting of the City Council of the City of Yakima, Washington, held this 4th day of December, 1111 1984. CITY OF YAKIMA, WASHINGTON BY :00 Mayor ATTEST: 2 City Clerk Passed: DEC 4 101 Published: DEC 6 1984 Effective; \ 'TAN\ 6 \ 1985 \ \ 1111 -9- JG74 84/11/27