HomeMy WebLinkAbout2005-063 Limited Tax General Obligation Bonds / Park Improvement ORDINANCE NO 2005 - 63
AN ORDINANCE of the City of Yakima, Washington, providing for
the issuance of limited tax general obligation bonds of the City in
the principal sum of not to exceed $825,000 to finance park
improvements and providing the form and terms of the bonds.
WHEREAS, the City Council of the City of Yakima, Washington (the "City ") has
determined that it is in the best interest of the City to make various park improvements, and
WHEREAS, in order to provide a portion of the funds required for such purpose, the City
now desires to authorize the issuance of limited tax levy general obligation bonds in the principal
amount of not to exceed $825,000,
NOW, THEREFORE, BE IT ORDAINED BY the City of Yakima, Washington, as
follows
SECTION 1 Definitions. As used in this ordinance, the following words shall have the
following meanings, unless a different meaning clearly appears from the context:
"Arbitrage and Tax Certification" means the certificate executed by the Director of
Finance and Budget or her designee setting forth the requirements of the Code for maintaining
the tax - exemption of interest on the Bonds.
"Bond Register" means the registration records for the Bonds maintained by the Bond
Registrar
"Bond Registrar" means the fiscal agency of the State of Washington, currently in New
York, New York, for the purposes of registering and authenticating the Bonds, maintaining the
Bond Register, effecting transfer of ownership of the Bonds and paying principal of and interest
on the Bonds.
"Bonds" means the not to exceed $825,000 principal amount of the City of Yakima,
Washington, Limited Tax General Obligation Bonds, 2005, issued pursuant to this ordinance
"CEDE & Co " means the nominee of The Depository Trust Company
"City" means the City of Yakima, Washington, a municipal corporation duly organized
and existing under and by virtue of the Constitution and laws of the State of Washington.
'City Council" means the legislative authority of the City as the same shall be duly and
regularly constituted from time to time
"Code" means the Internal Revenue Code of 1986, as amended, together with
corresponding and applicable final, temporary or proposed regulations and revenue rulings
issued or amended with respect thereto by the United States Treasury Department of the Internal
Revenue Service, to the extent applicable to the Bonds.
"Debt Service Fund" means the "LTGO Parks Debt Service Fund, 2005" authorized to be
created by Section 6
"DTC" means The Depository Trust Company of New York, as depository for the Bonds,
or any successor or substitute depository for the Bonds.
"Letter of Representations" means the Blanket Letter of Representations from the City to
DTC
"Project" means various park capital improvements, including construction of a new
softball field at Kiwanis Park and other developments at the park, construction of water
playgrounds and a feasibility study of a regional aquatics center, or other Parks Capital projects
as may be authorized by the Council.
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"Registered Owner" means the person in whose name a Bond is registered on the Bond
Register For so long as the City utilizes the book -entry system for the Bonds, DTC shall be
deemed to be the Registered Owner
"Rule" means the Securities and Exchange Commission's Rule 15c2 -12 under the
Securities Exchange Act of 1934
"Sale Resolution" means the resolution to be adopted by the City Council setting the final
terms of the Bonds.
SECTION 2 Findings and Authorization of Project. The City Council hereby finds that
it is in the public interest for the City to undertake various park improvements (the "Project ")
The cost of the Project will be financed from the proceeds of sale of the Bonds. If the City
Council shall determine that it has become impractical to acquire any portion of the Project by
reason of changed conditions, the City shall not be required to acquire such portions of the
Project. If the entire Project has been acquired or constructed or duly provided for, or found to
be impractical, the City Council may apply the Bond proceeds or any portion thereof to the
redemption of the Bonds or to other park capital purposes as the City Council, in its discretion,
shall determine
SECTION 3 Authorization of Bonds. The City shall issue and sell the Bonds in the
aggregate principal amount of not to exceed $825,000 to provide money to finance the Project
described in Section 2, including reimbursing the City for predevelopment costs related to the
Project, to pay all costs incidental thereto and to the issuance of the Bonds The Bonds shall be
general obligations of the City; shall be designated "City of Yakima, Washington, Limited Tax
General Obligation Bonds, 2005 ", shall be dated as provided in the Sale Resolution, shall be
issued in fully registered form' in 'the denomination of $5,000 or any integral multiple thereof,
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provided that no Bond shall represent more than one maturity; shall be numbered separately and
in such manner and with any additional designation as the Bond Registrar deems necessary for
purposes of identification and control, shall bear interest (calculated based on a 360 -day year of
12 30 -day months) at the rates set forth in the Sale Resolution from their date, until the Bonds
have been paid or their payment duly provided for, payable on June 1, 2006, and semiannually
thereafter on the first day of each December and June and shall mature on December 1 of the
years and in the amounts set forth in the Sale Resolution.
SECTION 4 Registration, Exchange and Payments.
(a) Registrar /Bond Register The City hereby adopts the system of
registration approved by the Washington State Finance Committee, which utilizes the fiscal
agency of the State of Washington in New York, New York, as registrar, authenticating agent,
paying agent and transfer agent (the "Bond Registrar ") The Bond Registrar shall keep, or cause
to be kept, at its principal corporate trust office, sufficient records for the registration and transfer
of the Bonds (the "Bond Register "), which shall be open to inspection by the City The Bond
Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or
exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out
all of the Bond Registrar's powers and duties under this ordinance The Bond Registrar shall be
responsible for its representations contained in the Certificate of Authentication on the Bonds.
(b) Registered Ownership The City and the Bond Registrar may deem and
treat the Registered Owner of each Bond as the absolute owner for all purposes, and neither the
City nor the Bond Registrar shall be affected by any notice to the contrary Payment of any such
Bond shall be made only as described in Section 3(h) hereof, but such registration may be
transferred as herein provided. All such payments made as described in Section 3(h) shall be
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valid and shall satisfy the liability of the City upon such Bond to the extent of the amount or
amounts so paid.
(c) DTC Acceptance /Letter of Representations The Bonds shall initially be
held in fully immobilized form by DTC acting as depository To induce DTC to accept the
Bonds as eligible for deposit at DTC, the City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (the "Letter of Representations ")
Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC
participants or the persons for whom they act as nominees with respect to the Bonds for the
accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any
DTC participant of any amount in respect of the principal of or interest on Bonds, any notice that
is permitted or required to be given to Registered Owners under this ordinance (except such
notices as shall be required to be given by the City to the Bond Registrar or to DTC), the
selection by DTC or any DTC participant of any person to receive payment in the event of a
partial redemption of the Bonds, or any consent given or other action taken by DTC as the
Registered Owner For so long as any Bonds are held in fully immobilized form hereunder, DTC
or its successor depository shall be deemed to be the Registered Owner for all purposes, and all
references in this ordinance to the Registered Owners shall mean DTC or its nominee and shall
not mean the owners of any beneficial interest in any Bonds.
(d) Use of Depository
(1) The Bonds shall be registered initially in the name of CEDE &
Co., as nominee of DTC, with a single Bond for each maturity in a denomination equal to the
total principal amount of such maturity Registered ownership of such immobilized Bonds, or
any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its
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nominee, provided that any such successor shall be qualified under any applicable laws to
provide the service proposed to be provided by it, (B) to any substitute depository appointed by
the City pursuant to subsection (ii) below or such substitute depository's successor; or (C) to any
person as provided in subsection (iv) below
(ii) Upon the resignation of DTC or its successor (or any substitute
depository or its successor) from its functions as depository or a determination by the City to
discontinue the system of book entry transfers through DTC or its successor (or any substitute
depository or its successor), the City may appoint a substitute depository Any such substitute
depository shall be qualified under any applicable laws to provide the services proposed to be
provided by it.
(in) In the case of any transfer pursuant to clause (A) or (B) of
subsection (i) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together
with a written request on behalf of the City, issue a single new Bond for each maturity then
outstanding, registered in the name of such successor or substitute depository, or its nominee, all
as specified in such written request of the City
(iv) In the event that (A) DTC or its successor (or substitute depository
or its successor) resigns from its functions as depository, and no substitute depository can be
obtained, or (B) the City determines that it is in the best interest of the beneficial owners of the
Bonds that the Bonds be provided in certificated form, the ownership of such Bonds may then be
transferred to any person or entity as herein provided, and shall no longer be held in fully
immobilized form. The City shall deliver a written request to the Bond Registrar, together with a
supply of definitive Bonds in certificated form, to issue Bonds in any authorized denomination.
Upon receipt by the Bond Registrar of all then outstanding Bonds, together with a written request
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on behalf of the City to the Bond Registrar, new Bonds shall be issued in the appropriate
denominations and registered in the names of such persons as are provided in such written
request.
(e) Transfer or Exchange of Registered Ownership, Change in
Denominations The registered ownership of any Bond may be transferred or exchanged, but no
transfer of any Bond shall be valid unless it is surrendered to the Bond Registrar with the
assignment form appearing on such Bond duly executed by the Registered Owner or such
Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar Upon
such surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and
deliver, without charge to the Registered Owner or transferee, a new Bond (or Bonds at the
option of the new Registered Owner) of the same series, date, maturity and interest rate and for
the same aggregate principal amount in any authorized denomination, naming as Registered
Owner the person or persons listed as the assignee on the assignment form appearing on the
surrendered Bond, in exchange for such surrendered and canceled Bond. Any Bond may be
surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate
principal amount of Bonds of the same series, date, maturity and interest rate, in any authorized
denomination. The Bond Registrar shall not be obligated to transfer or exchange any Bond
during a period beginning at the opening of business on the 15th day of the month next preceding
any interest payment date and ending at the close of business on such interest payment date, or,
in the case of any proposed redemption of the Bonds, after the mailing of notice of the call of
such Bonds for redemption.
(f) Bond Registrar's Ownership of Bonds The Bond Registrar may become
the Registered Owner of any Bond with the same rights it would have if it were not the Bond
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Registrar, and to the extent permitted by law, may act as depository for and permit any of its
officers or directors to act as member of, or in any other capacity with respect to, any committee
formed to protect the rights of the Registered Owners of the Bonds.
(g) Registration Covenant The City covenants that, until all Bonds have been
surrendered and canceled, it will maintain a system for recording the ownership of each Bond
that complies with the provisions of Section 149 of the Code
(h) Place and Medium of Payment Both principal of and interest on the
Bonds shall be payable in lawful money of the United States of America. For so long as all
Bonds are in fully immobilized form, payments of principal and interest shall be made as
provided in accordance with the operational arrangements of DTC referred to in the Letter of
Representations. In the event that the Bonds are no longer in fully immobilized form, interest on
the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for
such Registered Owners appearing on the Bond Register on the 15th day of the month preceding
the interest payment date, and principal of the Bonds shall be payable upon presentation and
surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar
SECTION 5 Redemption and Purchase
(a) No Optional Redemption. Unless otherwise provided in the Sale
Resolution, the Bonds are not subject to redemption prior to their stated maturities.
(b) Purchase on Open Market The City reserves the right to purchase any of
the Bonds in the open market at any time and at any price
SECTION 6 Creation of Debt Service Fund and Provision for Tax Levy Payments. A
special fund of the City known as the "LTGO Parks Debt Service Fund, 2005" (the "Debt
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Service Fund "), is hereby authorized to be created. The Debt Service Fund shall be drawn upon
for the sole purpose of paying the principal of and interest on the Bonds
The City hereby irrevocably covenants and agrees for as long as any of the Bonds are
outstanding and unpaid that each year it will include in its budget and levy ad valorem taxes
upon all the property within the City subject to taxation in an amount that will be sufficient,
together with all other revenues and money of the City legally available for such purposes, to pay
the principal of and interest on the Bonds as the same shall become due
The City hereby irrevocably pledges that the annual tax provided for herein to be levied
for the payment of such principal and interest shall be within and as a part of the tax levy
permitted to cities without a vote of the people, and that a sufficient portion of each annual levy
to be levied and collected by the City prior to the full payment of the principal of and interest on
the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payment
of the principal of and interest on the Bonds to the extent that other legally available funds are
not deposited into the Debt Service Fund. The full faith, credit and resources of the City are
hereby irrevocably pledged for the annual levy and collection of the taxes and for the prompt
payment of the principal of and interest on the Bonds as the same shall become due.
SECTION 7 Bonds Deemed To Be No Longer Outstanding. In the event that the City,
in order to effect the payment, retirement or redemption of any Bond, sets aside in the Debt
Service Fund or in another special account, held in trust by a trustee, cash or noncallable
government obligations, as such obligations are now or hereafter defined in RCW 39 53, or any
combination of cash and /or noncallable government obligations, in amounts and maturities
which, together with the known earned income therefrom, are sufficient to redeem or pay and
retire such Bond in accordance with its terms and to pay when due the interest and redemption
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premium, if any, thereon, and such cash and /or noncallable government obligations are
irrevocably set aside and pledged for such purpose, then no further payments need be made into
the Debt Service Fund for the payment of the principal of and interest on such Bond. The owner
of a Bond so provided for shall cease to be entitled to any lien, benefit or security of this
ordinance except the right to receive payment of principal, premium, if any, and interest from
such special fund, and such Bond shall be deemed to be not outstanding under this ordinance
SECTION 8 Tax Covenant; Special Designation. The City covenants to undertake all
actions required to maintain the tax - exempt status of interest on the Bonds under Section 103 of
the Code as set forth in the Arbitrage and Tax Certification that will be executed at the closing of
the Bonds. The City hereby designates the Bonds as "qualified tax - exempt obligations" under
Section 265(b)(3) of the Code for banks, thrift institutions and other financial institutions.
SECTION 9 Lost or Destroyed Bonds. If any Bonds are lost, stolen or destroyed, the
Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, maturity and
tenor to the Registered Owner upon the owner paying the expenses and charges of the Bond
Registrar and the City in connection with preparation and authentication of the replacement
Bond or Bonds and upon his or her filing with the Bond Registrar and the City evidence
satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or
her ownership, and upon furmshmg the City and the Bond Registrar with indemnity satisfactory
to both.
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SECTION 10 Form of the Bonds. The Bonds shall be in substantially the following
form.
[STATEMENT OF INSURANCE]
UNITED STATES OF AMERICA
NO $
STATE OF WASHINGTON
CITY OF YAKIMA
LIMITED TAX GENERAL OBLIGATION BOND, 2005
INTEREST RATE MATURITY DATE CUSIP NO
REGISTERED OWNER.
PRINCIPAL AMOUNT DOLLARS
The City of Yakima, Washington, a municipal corporation organized and existing under
the laws and Constitution of the State of Washington (the "City "), hereby acknowledges itself to
owe and for value received promises to pay to the Registered Owner identified above, or
registered assigns, on the Maturity Date identified above, the Principal Amount specified above,
unless redeemed prior thereto as provided herein, together with interest on such Principal
Amount from the date hereof or the most recent date to which interest has been paid or duly
provided for at the Interest Rate set forth above payable June 1, 2006, and semiannually
thereafter on each December 1 and June 1 until payment of the principal sum has been made or
duly provided for Both principal of and interest on this bond are payable in lawful money of the
United States of America. For so long as the bonds of this issue are held in fully immobilized
form, payments of principal and interest thereon shall be made as provided in accordance with
the operational arrangements of DTC referred to in the Blanket Issuer Letter of Representations
from the City to The Depository Trust Company In the event that the bonds of this issue are no
longer held in fully immobilized form, interest on this bond shall be paid by check or draft
mailed to the Registered Owner at the address appearing on the Bond Register on the 15th day of
the month preceding the interest payment date, and principal of this bond shall be payable upon
presentation and surrender of this bond by the Registered Owner at the principal office of the
fiscal agency of the State of Washington in New York, New York (the "Bond Registrar ")
This bond is one of an issue of limited tax general obligation bonds of the City of like
date and tenor, except as to number, interest rate and date of maturity, in the aggregate principal
amount of $825,000, issued pursuant to Ordinance No of the City, passed November 1,
2005 and Resolution No , adopted on November 15, 2005 (together, the "Bond
Ordinance "), to provide financing for the City's park improvements.
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The Bonds are not subject to redemption prior to their stated maturities.
The City has designated the bonds of this issue as "qualified tax - exempt obligations" for
purchase by financial institutions.
The City has irrevocably covenanted with the owner of this bond that it will annually
include in its budget and levy taxes, within and as a part of the tax levy permitted to cities
without a vote of the electorate, upon all the property subject to taxation in amounts sufficient,
together with other money legally available therefor, to pay the principal of and interest on this
bond as the same shall become due The full faith, credit and resources of the City are hereby
irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of
such principal and interest.
The pledge of tax levies for payment of principal of and interest on the bonds may be
discharged prior to maturity of the bonds by making provision for the payment thereof on the
terms and conditions set forth in the Bond Ordinance
The bonds of this issue are issued in fully registered form in the denomination of $5,000
each or any integral multiple thereof, provided that no bond shall represent more than one
maturity Upon surrender to the Bond Registrar, bonds are interchangeable for bonds in any
authorized denomination of an equal aggregate principal amount and of the same interest rate
and maturity This bond is transferable only on the records maintained by the Bond Registrar for
that purpose upon the surrender of this bond by the registered owner hereof or his /her duly
authorized agent and only if endorsed in the manner provided hereon, and thereupon a new fully
registered bond of like principal amount, maturity and interest rate shall be issued to the
transferee in exchange therefor Such exchange or transfer shall be without cost to the registered
owner or transferee The City may deem the person in whose name this bond is registered to be
the absolute owner hereof for the purpose of receiving payment of the principal of and interest on
this bond and for any and all other purposes whatsoever
Reference is made to the Bond Ordinance as more fully describing the covenants with
and the rights of Registered Owners of the bonds or registered assigns and the meanings of
capitalized terms appearing on this bond which are defined in such ordinance
This bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall
have been manually signed by the Bond Registrar
It is hereby certified and declared that this bond is issued pursuant to and in strict
compliance with the Constitution and laws of the State of Washington and ordinances of the
City, that all acts, conditions and things required to be done precedent to and in the issuance of
this bond and the bonds of this issue have happened, been done and performed, and that this
bond and the bonds of this issue do not exceed any constitutional or statutory limitations.
IN WITNESS WHEREOF, the City of Yakima, Washington, has caused this bond to be
signed on behalf of the City with the manual or facsimile signature of the Mayor and to be
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attested by the manual or facsimile signature of the Clerk of the City, as of this 1 day of
December, 2005
CITY OF YAKIMA, WASHINGTON
By /s/ manual or facsimile
Mayor
ATTEST
/s/ manual or facsimile
Clerk of the City
The Certificate of Authentication for the Bonds shall be in substantially the following
form and shall appear on each Bond.
CERTIFICATE OF AUTHENTICATION
Date of Authentication.
This bond is one of the City of Yakima, Washington, Limited Tax General Obligation
Bonds, 2005, dated December 1, 2005
WASHINGTON STATE FISCAL
AGENCY, as Bond Registrar
By
Authorized Signer
SECTION 11 Execution of the Bonds. The Bonds shall be executed on behalf of the
City with the manual or facsimile signature of the Mayor and attested by the manual or facsimile
signature of the City Clerk. In case either or both of the officers who have signed or attested any
of the Bonds cease to be such officer before such Bonds have been actually issued and delivered,
such Bonds shall be valid nevertheless and may be issued by the City with the same effect as
though the persons who had signed or attested such Bonds had not ceased to be such officers,
and any Bond may be signed or attested on behalf of the City by officers who at the date of
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actual execution of such Bond are the proper officers, although at the nominal date of execution
of such Bond such officer was not an officer of the City
Only Bonds that bear a Certificate of Authentication in the form set forth in Section 10,
manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled
to the benefits of this ordinance Such Certificate of Authentication shall be conclusive evidence
that the Bonds so authenticated have been duly executed, authenticated and delivered and are
entitled to the benefits of this ordinance
In case either of the officers of the City who shall have executed the Bonds shall cease to
be such officer or officers of the City before the Bonds so signed shall have been authenticated
or delivered by the Bond Registrar, or issued by the City, such Bonds may nevertheless be
authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be
as binding upon the City as though those who signed the same had continued to be such officers
of the City Any Bond may also be signed and attested on behalf of the City by such persons as
at the actual date of execution of such Bond shall be the proper officers of the City although at
the original date of such Bond any such person shall not have been such officer
SECTION 12 Application of Proceeds of Bonds At the time of delivery of the Bonds,
the proceeds of the Bonds shall be deposited into the Parks Capital Fund (Fund 331), which is
hereby authorized to be created, and used to pay or reimburse the costs of the Project described
in Section 2 and all costs incidental thereto and to the issuance of the Bonds.
Money remaining in the Parks Capital Fund after all of such costs have been paid or
reimbursed may be used to pay costs of other legally authorized capital expenditures of the City
or shall be deposited in the Debt Service Fund. Money in the Parks Capital Fund may be
invested as permitted by law All interest earned and profits derived from such investments shall
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be retained in and become a part of the Parks Capital Fund or deposited into the Debt Service
Fund.
SECTION 13 Sale of the Bonds. The City Council shall adopt the Sale Resolution,
which will set the interest rates, maturity amounts and years of the Bonds and approve the
purchase contract and Official Statement for the Bonds. The Sale Resolution also may establish
redemption provisions, approve bond insurance and set any other terms for the Bonds.
SECTION 14 Ongoing Disclosure The City is exempt from the ongoing disclosure
requirements of Securities and Exchange Commission Rule 15c2 -12 by reason of the exemption
set forth in subsection (d)(i) of that rule with respect to the issuance of securities in the principal
amount of $1,000,000 or less.
SECTION 15 General Authorization, Ratification of Prior Acts. The Director of
Finance and Budget and City Manager and other appropriate officers of the City are authorized
to take any actions and to execute documents as in their judgment may be necessary or desirable
in order to carry out the terms of, and complete the transactions contemplated by, this ordinance
All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby
ratified.
SECTION 16 Severability If any provision in this ordinance is declared by any court of
competent jurisdiction to be contrary to law, then such provision shall be null and void and shall
be deemed separable from the remaining provisions of this ordinance and shall in no way affect
the validity of the other provisions of this ordinance or of the Bonds.
SECTION 17 Effective Date This ordinance shall be effective 30 days after its
passage, approval and publication as provided by law
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PASSED by the City Council of the City of Yakima at a regular meeting thereof, held
this 1S day of November, 2005
CITY OF YAKIMA, WASHIN . TON
4, ,P •,
Mayor
ATTEST
,4 i86-
City Clerk
APPROVED AS TO FORM
N/A
City Attorney
First Reading N/A
Publication Date 11 4
Effective Date 12
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CERTIFICATE
I, the undersigned, Clerk of the City of Yakima, Washington (herein called the "City ")
and keeper of the records of the City Council of the City (the "City Council "), DO HEREBY
CERTIFY
1 That the attached ordinance is a true and correct copy of Ordinance No.2005 -63 of
the City (the "Ordinance "), as finally passed at a regular meeting of the City Council held on
November 1, 2005, and duly recorded in my office
2 That said meeting was duly convened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was given, that a
quorum of the City Council was present throughout the meeting and a legally sufficient number
of members of the City Council voted in the proper manner for the passage of said Ordinance,
that all other requirements and proceedings incident to the proper adoption or passage of said
Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized
to execute this certificate
DATED this November 1, 2005
City Clerk
P \NMN \NMN2N3 10/27/05
PRELIMINARY OFFICIAL STATEMENT DATED , 2005
$775,000* DRAFT
City of Yakima Washington _
€ Limited Tax General Obligation Bonds, 2005
co =
c DATED. December 1, 2005 DUE: December 1, as shown below
O.`°. STANDARD & POOR'S RATING — Applied for
fg.2 BANK QUALIFIED —The City has designated the Bonds as "qualified tax - exempt obligations" for purposes of section
2 265(b)(3)(B) of the Code relating to the deductibility of interest expense by certain financial institutions. See "Tax
mu , Exemption" herein for a discussion of this designation.
a d BOOK - ENTRY ONLY —The Bonds will be issued as fully registered bonds in denominations of $5,000, or integral multiples
E thereof, and will be registered in the name of Cede & Co , as bond owner and nominee for The Depository Trust
c 2 Company ( "DTC "). DTC will act as securities depository for the Bonds. Purchasers will not receive certificates
c rn representing their interest in the Bonds purchased.
o,5
m' 3 PRINCIPAL AND INTEREST PAYMENTS — Interest on the Bonds will be payable semiannually on each June 1 and
a - E ecember 1, commencing on June 1, 2006, to maturity or earlier redemption. Principal of and interest on the Bonds will
0 m be as by the fiscal agency of the State of Washington in New York, New York, currently The Bank of New York
(the 'Bond Registrar "), as further described herein. For so long as the Bonds remain in a "book -entry only" transfer
i system, the fiscal agent will make such payments only to DTC, which in turn is obligated to remit such principal and
a • D . interest to its Participants for subsequent disbursement to Beneficial Owners of the Bonds as further described herein in
N °3-0 Appendix B — Book -Entry Transfer System.
•r. a
L C C U MATURITY SCHEDULE —
as m Due Interest Price or Due Interest Price or
c Dec 1 Amount* Rate Yield CUSIP Dec 1 Amount* Rate Yield CUSIP
o 2006 $ 60,000 % 2012 $ 70,000 %
a = 2007 60,000 2013 75,000
c, 3 2008 65,000 2014 80,000
Z' 2009 65,000 2015 80,000
c3 2010 65,000 2016 85,000
ai
rn ro 2011 70,000
c Y
as
c (Plus accrued interest from the Dated Date)
c
c m NO OPTIONAL REDEMPTION — The Bonds are not subject to optional redemption prior to their stated maturities.
c t SECURITY — The Bonds are limited tax general obligations of the City The City hereby irrevocably covenants and agrees for
= as long as any of the Bonds are outstanding and unpaid that each year it will include in its budget and levy ad valorem
N ° taxes upon all the property within the City subject to taxation in an amount that will be sufficient and all other revenues
c , and money of the City legally available for such purposes, to pay the principal of and interest on the Bonds as the same
c m shall become due. The full faith, credit and resources of the City have been pledged irrevocably for the annual levy and
Y co of such taxes and the prompt payment of such principal and interest. The Bonds do not constitute a debt or
m e indebtedness of the State of Washington, or any political subdivision thereof other than the City (see "Security for the
: c a Bonds" herein)
y TAX EXEMPTION — In the opinion of Preston Gates & Ellis LLP, Bond Counsel, assuming compliance with certain covenants of the
d y City, interest on the Bonds is excluded from the gross income of the owners of the Bonds for federal income tax purposes under
E c existing law Interest on the Bonds is not an item of tax preference for purposes of either individual or corporate alternative
Y o minimum tax. Interest on the Bonds may be indirectly subject to corporate alternative minimum tax and certain other taxes
to m imposed on certain corporations. See "Tax Exemption" herein for a discussion of the opinion of Bond Counsel.
3 m DELIVERY — The Bonds are offered for sale to the original purchaser subject to the final approving legal opinion of Preston
o 2 Gates & Ellis LLP, Seattle, Washington, Bond Counsel. It is expected that the Bonds will be available for delivery to the
c Bond Registrar on behalf of DTC by Fast Automated Securities Transfer, on or about December 5, 2005
o
c m * Preliminary, subject to change.
E>
:.. This cover page contains certain information for quick reference only It is not a summary of the issue. Investors H read the entire Official Statement to
N 0
a a obtain information essential to the snaking of an informed investment decision.
t0 N
� a 111111111 SEATTLE-NORTHWEST
2
1- 111111111 SECURITIES CORPORATION
City of Yakima, Washington h&FT 129 North Second Street
Yakima, Washington 98901
Phone: (509) 575 -6000
Fax: (509) 576 -6614
www.ci.yakima.wa.us*
Mayor and City Council
Paul P George Mayor
Neil McClure Assistant Mayor
Ron Bonlender Council Member
Dave Edler Council Member
Mary Place Council Member
Bernard j Sims Council Member
Susan Whitman Council Member
Administrative Officials
Richard A. Zais, Jr City Manager
Dave Zabell Assistant City Manager
Rita M Anson, CPA Director of Finance & Budget
Timothy Jensen Treasury Services Officer
Ray Paolella City Attorney
Cindy Epperson Financial Services Manager
Bond Counsel
Preston Gates & Ellis LLP
Seattle, Washington
206 - 623 -7580
Bond Registrar
The Bank of New York
New York, New York
1- 800 - 438 -5473
* The City's website is not part of this Official Statement, and investors should not rely on information presented in
the City's website in determining whether to purchase the Bonds. This inactive textual reference to the City's
website is not a hyperlink and does not incorporate the City's website by reference.
This Official Statement does not constitute an offer to sell the Bonds in any jurisdiction in which or to a person to whom it Is
unlawful to make such an offer No dealer, salesperson or other person has been authorized by the City or the Underwriter to
give any information or to make any representations, other than those contained herein, in connection with the offering of the
Bonds and, if given or made, such information or representations must not be relied upon. The information and expressions of
opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made
hereunder will, under any circumstances, create an implication that there has been no change in the affairs of the City since the
date hereof
The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the
information in this Official Statement in accordance with, and as part of its responsibility to investors under the federal
securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy
or completeness of such information.
This Preliminary Official Statement has been "deemed final" by the City, pursuant to Rule 15c2 -12 promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, except for information which is
permitted to be excluded from this Preliminary Official Statement under said Rule 15c2 -12.
In connection with this offering, the Underwriter may over -allot or effect transactions that stabilize or maintain the market price
of the Bonds at levels above those which might otherwise prevail in the open market. Such stabilizing, if commenced, may be
discontinued at any time.
ii
Table of Contents
age
g
Description of the Bonds 1
Principal Amount, Date, Interest Rates and Maturities 1
No Optional Redemption 1
Purchase 1
Bond Registrar and Registration Features 1
Book -Entry Bonds 1
Authorization for Issuance. 2
Purpose and Use of Proceeds 2
Purpose 2
Sources and Uses of Funds. 2
Security for the Bonds. 2
General. 2
The Parks and Recreation Fund 3
City of Yakima 3
Comparative Parks and Recreation Fund Statement of Revenues, Expenditures and Changes in Fund Balance 3
Bonded Indebtedness 4
Computation of Debt Capacity 4
Summary of Limited Tax General Obligation Bond Debt Service Requirements 6
Net Direct and Overlapping Debt 7
Debt Payment Record 7
Future Financings. 7
Taxing Authority 8
Authorized Property Tax Levies 8
The City's Property Tax Levies. 8
Overlapping Taxing Districts 9
General Property Taxes 9
Regular Property Tax Limitations 10
Assessed Value 11
Tax Collection Procedure 11
City of Yakima 12
Tax Collection Record 12
City of Yakima 12
Major Property Taxpayers. 12
Authorized Investments 12
Local Government Investment Pool 13
Authorized Investments for Bond Proceeds 13
City of Yakima 14
Comparative General Fund Statement of Revenues, Expenditures and Changes in Fund Balance 14
Comparative General Fund Balance Sheet. 15
The City 16
Key Administrative Staff 16
Labor Relations 17
Pension System 17
Risk Management. 19
Accounting Policies 20
Budgetary Process 20
Cash and Investments. 21
Auditing of City Finances 21
Demographic Information 22
Initiative and Referendum 24
State Initiatives 24
Tax Exemption. 25
Qualified Tax - Exempt Obligations 25
Rating. 25
No Continuing Disclosure Undertaking 25
Legal and Underwriting 26
Approval of Counsel. 26
Litigation 26
Official Statement 26
Underwriting 26
Concluding Statement 26
Opinion of Bond Counsel. Appendix A
Book -Entry Transfer System Appendix B
2004 Annual Financial Report .Appendix C
iii
.1) RAFT
OFFICIAL STATEMENT
$775,000*
City of Yakima, Washington
Limited Tax General Obligation Bonds, 2005
The City of Yakima, Washington (the "City"), a municipal corporation duly organized and existing under and
by virtue of the laws of the State of Washington (the "State "), furnishes this Official Statement in connection
with the offering of $775,000* aggregate principal amount of the above - referenced bonds (the "Bonds "), dated
December 1, 2005 This Official Statement provides information concerning the City and the Bonds.
Description of the Bonds
Principal Amount, Date, Interest Rates and Maturities
The Bonds will be issued in the aggregate principal amount of $775,000* and will be dated and bear interest
from December 1, 2005 The Bonds will mature on the dates and in the principal amounts and will bear
interest (payable semiannually on each June 1 and December 1, commencing June 1, 2006) until the maturity or
earlier redemption of the Bonds at the rates set forth on the cover of this Official Statement. Interest on the
Bonds will be computed on the basis of a 360 -day year consisting of twelve 30 -day months. Principal of and
interest on the Bonds will be payable by the fiscal agency of the State of Washington in New York, New York,
currently The Bank of New York (the "Bond Registrar ")
No Optional Redemption
The Bonds are not subject to redemption prior to their stated maturities.
Purchase
The City reserves the right and option to purchase any or all of the Bonds offered to the City at any time at any
price. All Bonds so purchased shall be canceled.
Bond Registrar and Registration Features
The Bonds will be issued as fully registered bonds and, when issued, will be registered in the name of Cede &
Co as Bond Owner and as nominee for DTC. DTC will act as securities depository for the Bonds. Individual
purchases and sales of the Bonds may be made in book -entry form only in minimum denominations of $5,000
within a single maturity and integral multiples thereof. Purchasers ( "Beneficial Owners ") will not receive
certificates representing their interest in the Bonds.
Principal of and interest on the Bonds will be payable by the Bond Registrar (or such other fiscal agency or
agencies as the State may from time to time designate) So long as Cede & Co is the registered owner of the
Bonds, principal of and interest on the Bonds are payable by wire transfer by the Bond Registrar to DTC,
which in turn is obligated to remit such principal and interest to its Participants for subsequent disbursement
to the Beneficial Owners of the Bonds, as further described herein in Appendix B
Book - Entry Bonds
DTC will act as securities depository for the Bonds. The ownership of one fully registered Bond for each
maturity of the Bonds, as set forth on the cover of this Official Statement, each in the aggregate principal
amount of such maturity, will be registered in the name of Cede & Co , as nominee for DTC. See Appendix B
attached hereto for additional information.
Procedure in the Event of Revisions of Book -Entry Transfer System. If DTC resigns as the securities depository and
the City is unable to retain a qualified successor to DTC, or the City has determined that it is in the best
* Preliminary, subject to change.
1
&IF 7
interest of the City not to continue the book -entry system of transfer or that interests of the Beneficial Owners
of the Bonds might be affected adversely if the book -entry system of transfer is continued, the City will
execute, authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nominees Bonds in
fully registered form, in the denomination of $5,000 or any integral multiple thereof within a maturity In the
event the Bonds are transferred by the City to fully registered form, the Bonds may be payable by the Bond
Registrar or the State's co- fiscal agent, which is currently Wells Fargo Bank, National Association, in Seattle,
Washington. Thereafter, the principal of the Bonds will be payable upon due presentment and surrender
thereof at the principal office of the Bond Registrar; interest on the Bonds will be payable by check or draft
mailed on the interest payment date to the owners of the Bonds at the address appearing on the Bond Register
on the 15th day of the month next preceding the interest payment date, and the Bonds will be transferable as
provided in the Ordinance (defined below)
Authorization for Issuance
Under and in accordance with State laws, the Bonds are issued pursuant to Ordinance No 2004- passed by
the City Council (the "Council ") on November 1st, 2005 and Resolution No R -2004- adopted by the
Council on 2005 (collectively, the "Ordinance "), and the authority of RCW chapters 39.36 and
39 46 The Bonds may be issued without a vote of the people.
Purpose and Use of Proceeds
Purpose
The proceeds from the sale of the Bonds will be used to (i) pay for various parks capital improvements,
including construction of a new softball field at Kiwanis Park and other developments at the park, (ii) pay for
construction of water playgrounds and a feasibility study of a regional aquatics center; and (iii) or other parks
capital projects as the Council may deem appropriate, and (iv) pay the costs of issuance of the Bonds.
Sources and Uses of Funds
The proceeds of the Bonds (less accrued interest) will be applied as follows:
Sources of Funds
Par Amount of Bonds* $ 775,000
Net Premium/ (Discount)
Total Sources of Funds $
Use of Funds
Funds Available for Construction $
Issuance Costs, Underwriter's Discount
Total Use of Funds $
Security for the Bonds
General
The Bonds are limited tax general obligation bonds of the City The City, as authorized by law and an
ordinance of its Council duly and regularly passed, has irrevocably pledged that, unless the principal of and
interest on the Bonds are paid from other sources, it will make annual levies of taxes, within the constitutional
and statutory tax limitations provided by law without a vote of the electors of the City, upon all of the
property in the City subject to taxation in amounts sufficient to pay such principal and interest as the same
shall become due.
Subject to applicable laws, the City may apply other funds available to make payments with respect to the
Bonds and thereby reduce the amount of future tax levies for such purpose.
* Preliminary, subject to change.
2
"ii- _1
The Bonds do not constitute a debt or indebtedness of the State or any political subdivision thereof other than
the City
The Parks and Recreation Fund
Debt service on the Bonds is expected to be paid from the Parks and Recreation Fund. The Parks and
Recreation Fund is primarily supported by property tax transfers from the General Fund, utility taxes, user
fees and grants. Savings from the closure of three swimming pools is providing debt service payments from
the Parks and Recreation Fund. The historical financial activity of the Parks and Recreation Fund is shown in
the following table:
City of Yakima
Comparative Parks and Recreation Fund Statement
of Revenues, Expenditures and Changes in Fund Balance
(Fiscal Years Ended December 31)
Audited
2004 2003 2002 2001 2000
Revenues
Taxes and Special Assessments $ 1,741,985 $ 1,841,750 $ 1,726,790 $ 1,690,515 $ 1,567,485
Intergovernmental 49,519 61,680 50,503 39,678 25,887
Charges for Services 794,244 702,346 753,300 723,601 776,716
Interest 944 (6,754) 1,106 6,872 41,096
Other 133,143 117,302 114,869 126,757 149,819
Total Revenues $ 2,719,835 $ 2,716,324 $ 2,646,568 $ 2,587,423 $ 2,561,003
Expenditures
Economic Environment 443,912 288,916 278,796 262,923 287,364
Culture and Recreation 3,070,340 2,991,227 2,910,227 2,807,905 2,773,226
Capital Outlay 5,158 51,858 26,766 2,676 2,629
Total Expenditures 3,519,410 3,332,001 3,215,789 3,073,504 3,063,219
Excess of Revenues
over (under) Expenditures (799,575) (615,677) (569,221) (486,081) (502,216)
Other Financing Sources (Uses)
Operating Transfers In 980,695 858,955 794,175 680,097 658,139
Operating Transfers (Out) (1) (221,000) (235,000) (235,000) (155,000) (135,000)
Comp For Loss of Gen. Fixed Assets 29,439 31,487 13,870 14,987 12,131
Total other Financing Sources (Uses) 789,134 655,442 573,045 540,084 535,270
Excess of Revenues and Other Sources
Over (Under) Expenditures /Other Use (10,441) 39,765 3,824 54,003 33,054
Fund Balance, January 1 482,724 442,959 439,135 430,132 397,078
Residual Equity Transfer In (Out) 0 0 0 (45,000) 0
Ending Fund Balance $ 472,283 $ 482,724 $ 442,959 $ 439,135 $ 430,132
Source. City of Yakima
3
■
FT
Bonded Indebtedness
As prescribed by State statutes, the unlimited tax general obligation indebtedness permitted for cities, subject to
a 60 percent majority vote of registered voters, is limited to 2.5 percent of assessed value for general purposes, 2.5
percent for utilities and 2.5 percent for open space /park facilities. Within the 2.5 percent of assessed value for
general purposes, the City may, without a vote of the electors, incur general obligation indebtedness in an
amount not to exceed 1.5 percent of assessed value. Additionally, within the 2.5 percent of assessed value for
general purposes, the City may, also without a vote of the electors, enter into leases if the total principal
component of the lease payments, together with the other nonvoted general obligation indebtedness of the
City, does not exceed 1.5 percent of assessed value. The combination of unlimited tax and limited tax general
obligation debt for general purposes, including leases, cannot exceed 2.5 percent of assessed value and for all
purposes cannot exceed 7.5 percent of assessed value.
The City may, without a vote of the electorate, issue debt as follows:
(1) Pursuant to an ordinance specifying the amount and object of the expenditure of the proceeds,
the City Council may borrow money for corporate purposes and issue bonds and notes within
the constitutional and statutory limitations on indebtedness.
(2) The City may execute conditional sales contracts for the purchase of real or personal property
(3) The City may execute leases with or without an option to purchase.
Computation of Debt Capacity
(As of November 1, 2005)
2005 Collection Year Assessed Value ( $ 3,971,667,847
Nonvoted Debt Capacity
1.5% of Assessed Value $ 59,575,017
Less: Outstanding Nonvoted Debt ( (17,818,088)
Less. The Bonds (3) (775,000)
Remaining Nonvoted Debt Capacity $ 40,981,929
Voted and Nonvoted Debt Capacity
2.5% of Assessed Value $ 99,291,696
Less: Outstanding Nonvoted Debt ( (17,818,088)
Less: The Bonds ( (775,000)
Less: Outstanding Voted Debt (2,235,000)
Total Remaining Voted and Nonvoted Debt Capacity $ 78,463,608
Voted Utility Debt Capacity
2.5% of Assessed Value $ 99,291,696
Less: Outstanding Utility Obligations 0
Total Remaining Utility Debt Capacity $ 99,291,696
Voted Open Space /Park Debt Capacity
2.5% of Assessed Value $ 99,291,696
Less: Outstanding Open Space /Park Obligations 0
Total Remaining Open Space /Park Debt Capacity $ 99,291,696
(1) Provided by the Yakima County Assessor
(2) Includes limited tax general obligation debt and lease purchase agreements.
(3) Preliminary, subject to change.
Source. City of Yakima
4
DRAFT
Outstanding Debt
(As of December 1, 2005)
Long Term Borrowing
General Obligations: Non -voted (1)
Date of Date of Amount Amount
Limited Tax General Obligations Issue Maturity Issued Outstanding
LTGO 1996 01/01/96 11/01/07 $ 6,000,000 $ 455,000
LTGO 1998 04/01/98 06/01/08 1,430,000 500,000
LTGO 2002 05/01/02 06/01/26 6,735,000 6,210,000
LTGO 2003 Series A 06/01/03 12/01/23 1,430,528 1,430,528
LTGO 2003 Series B 06/01/03 12/01/13 4,155,000 3,645,000
LTGO Line of Credit 06/01/02 06/01/07 5,000,000 64,569
LTGO Refunding 2004 09/01/04 11/01/19 4,175,000 4,070,000
The Bonds (this issue) 12/01/05 12/01/16 775,000 (2) 775,000 (2)
LTGO Bond Total 29,700,000 17,150,097
Lease Purchase Agreements
Police Video 11/03/03 11/03/08 491,838 302,694
Printer/ copier 06/01/04 03/01/09 93,414 62,424
Mobile Wireless Data Network 07/09/04 04/09/09 325,000 232,862
Printer/ copier 10/15/04 07/15/09 54,255 41,679
Purchase Contract Total 964,507 639,659
Total Non -voted General Obligations $ 30,664,507 $ 17,789,756
General Obligations: Voter Approved
Unlimited Tax General Obligation Bonds
UTGO Refunding 2004 09/01/04 12/01/14 $ 2,300,000 $ 2,235,000
UTGO Bond Total $ 2,300,000 $ 2,235,000
(1) Does not include special assessment notes and warrants outstanding in the amount of $53,000 and $750,332,
respectively, as of December 1, 2005. Also does not include City's obligation pursuant to an interlocal agreement with
Yakima County to pay approximately $150,000 annually through 2008.
(2) Preliminary, subject to change.
5
AF
Summary of Limited Tax General Obligation Bond Debt Service Requirements
(As of December 1, 2005)
Cal. Outstanding LTGO Bonds (1) The Bonds (2) Total Debt
Years Principal interest Principal Interest Service
2006 $ 1,020,000 $ 576,215 $ 60,000 $ 30,993 $ 1,687,208
2007 1,122,615 548,367 60,000 28,923 1,759,904
2008 1,159,861 513,602 65,000 26,793 1,765,255
2009 1,084,241 499,642 65,000 24,420 1,673,303
2010 1,083,125 476,926 65,000 21,983 1,647,034
2011 1,112,419 449,707 70,000 19,480 1,651,606
2012 1,141,614 421,958 70,000 16,680 1,650,252
2013 1,173,534 389,307 75,000 13,810 1,651,651
2014 690,455 354,384 80,000 10,660 1,135,500
2015 717,376 333,549 80,000 7,220 1,138,145
2016 728,196 315,548 85,000 3,740 1,132,485
2017 753,302 290,076 0 0 1,043,378
2018 780,855 264,600 0 0 1,045,455
2019 733,409 236,955 0 0 970,364
2020 405,464 212,083 0 0 617,546
2021 416,613 196,508 0 0 613,121
2022 434,687 182,371 0 0 617,059
2023 452,762 167,113 0 0 619,875
2024 410,000 54,750 0 0 464,750
2025 435,000 33,625 0 0 468,625
2026 455,000 11,375 0 0 466,375
Total $ 16,310,528 $ 6,528,661 $ 775,000 $ 204,700 $ 23,818,889
(1) Does not include the 2002 LTGO Line of Credit (see "Bonded Indebtedness - Outstanding Debt" for details).
(2) Preliminary, subject to change; assumed interest rates range from 3.55% to 4.50%
6
RAFT
Summary of Overlapping Debt
(As of December 1, 2005)
Estimated
2005 Assessed Percent Outstanding Overlapping
Overlapping Taxing District Value Overlap GO Debt Debt
Yakima School District No 7 $ 3,534,425,769 96 11% $ 34,775,000 $ 33,420,602
West Valley School District No 208 1,613,331,344 40.51 8,435,000 3,416,703
Yakima County 11,062,056,969 36 02 49,315,935 17,762,797
Naches School District No 3 508,877,906 0.34 2,940,000 9,993
Total $ 54,610,095
Source: Yakima County Assessor and Treasurer and individual taxzng districts
Net Direct and Overlapping Debt
The following tables present information regarding the City's direct debt (including the Bonds) and the
estimated portion of the debt of overlapping taxing district allocated to the City's residents.
Assessed Value (2005 Collection Year) ( $ 3,971,667,847
Estimated 2005 Population ( 79,480
Debt Information
Net Direct Debt ( $ 20,130,588
Estimated Net Overlapping Debt (as previously detailed herein) 54,610,095
Total Net Direct and Overlapping Debt $ 74,740,683
(1) Provided by the Yakima County Assessor's Office.
(2) Estimate derived from the State of Washington, Office of Financial Management, Forecasting Division.
(3) Includes the Bonds plus limited and unlimited tax general obligation debt and lease purchase agreements.
Bonded Debt Ratios
Net Direct Debt to Assessed Value 0.51%
Net Direct and Overlapping Debt
to Assessed Value 1.88%
Per Capita Assessed Value $ 49,970
Per Capita Net Direct Debt $ 253
Per Capita Total Net Direct and Net Overlapping Debt $ 940
Debt Payment Record
The City has promptly met all debt service payments on outstanding obligations. No refunding bonds have
been issued to prevent an impending default.
Future Financings
Other than the Bonds, the City has no authorized but unissued general obligation bonds outstanding. In
spring 2006, the City intends to borrow approximately $610,000 for a fire station remodel, most likely to be
paid for from a line of credit.
7
N&
Taxing Authority
Authorized Property Tax Levies
The City is authorized to impose (1) a regular levy (up to $3 60/$1,000 of assessed value) and (2) excess levies
(unlimited as to rate or amount) The City's regular levy for the 2005 collection year is $3 43952 /$1,000 The
regular levy is imposed without a vote of the people for general purposes, including payment of debt service
on the Bonds, and is subject to limitations (see "General Property Taxes — Regular Property Tax Limitations"
herein) Excess levies are imposed, upon voter approval, to pay debt service on unlimited tax general
obligation bonds. An excess levy also may be imposed without a vote to prevent the impairment of a contract
(RCW 84.52.052)
The City's Property Tax Levies
The following table shows the City's levy rates and dollar amounts levied since 2001
Ad Valorem Tax Levies
(Dollars per $1,000 of Assessed Value)
Collection Levy Rates Levy Amounts
Year General Bond* Total General Bond* Total
2005 $3 4395 $0 0763 $3.5158 $13,660,632 $ 300,000 $13,960,632
2004 3 4718 0 0841 3.5559 13,276,452 315,833 13,592,285
2003 3.5214 0 0957 3 6171 12,935,578 345,000 13,280,578
2002 3.5264 0.2611 3 7875 11,554,073 836,000 12,390,073
2001 3.5145 0.2809 3 7954 11,098,211 870,000 11,968,211
* For repayment of voted bonds; not subject to limitation on levy rates or levy amounts.
Sources. Yakima County Assessor's and Treasurer's Office
8
Overlapping Taxing Districts
The overlapping taxing districts within the City have the statutory power to levy regular property taxes at the
following rates subject to the limitations provided by chapter 84.55 RCW, and levy excess voter approved
property taxes. For purposes of demonstration, representative levy rates for "levy code 333" of Yakima
County (the "County "), as well as the statutory levy authority of each type of potential overlapping district,
are listed below
Total Representative Total Statutory
Levy Rates Levy Authority
Per $1,000 of Per $1,000 of
Assessed Value Assessed Value
Yakima County $ 1.8462 $1.80 (
County (Road Levy) n/a (1) 2.25
Library District n/a ( 0.50
Fire Protection District n/ a ( 1.50
Port District n/a ( 0 45
The City 3.5158 3 60 (
Hospital District n/a (1) 0 75
State Schools 2.7364 3.60 (4)
Yakima School District No 7 4.7368
County Emergency Services 0.2441
Total rate for Yakima County levy code 333 $ 13 0793
(1) Yakima County levy code 333 is included within the incorporated portion of Yakima County and therefore does not
have a road levy Likewise, it does not contain either a fire district, library district, port district or a hospital district.
(2) Pursuant to RCW 84.52.043(1), a county may increase its levy from $1.80 per $1,000 to a rate not to exceed $2.475 per
$1,000 for general county purposes if (i) the total levies for both the county and any road district within the county do
not exceed $4.05 per $1,000 and (ii) no other taxing district has its levy reduced as a result of the increased county levy
Of Yakima County's total levy rate of $1.8462, the nonvoted levy rate is $1.7690 and $0.0772 is the voted portion.
(3) RCW 41.16.060. $0.225 of the total $3.60 can be used for pension funding purposes, if required, otherwise this tax may
be levied and used for any other municipal purpose. The total levy includes a regular levy of $3 4395 and a voted
bond levy of $0.0763
(4) RCW 84.52.043(1). The levy by the State shall not exceed $3.60 per $1,000 assessed value adjusted to the State
equalized value in accordance with the indicated ratio fixed by the State Department of Revenue to be used
exclusively for the support of the common schools.
Source. Yakima County Assessor for Levy Code 333
General Property Taxes
The following provides a general description of the City's taxing authority and limitations thereon, the method
of determining the assessed value of real and personal property, tax collection procedures, and tax collection
information.
Authorized Property Taxes. The City is authorized to levy both "regular" property taxes and "excess" property
taxes.
(1) Regular Property Taxes. Regular property taxes are subject to constitutional and statutory limitations
as to rates and amounts and commonly are imposed by taxing districts for general municipal
purposes, including the payment of debt service on limited tax general obligation indebtedness, such
as the Bonds. Regular property taxes do not require voter approval except as described below
(2) Excess Property Taxes. Excess property taxes are not subject to limitation as to rates or amounts but
must be authorized by a 60 percent approving popular vote, as provided in Article VII, Section 2, of
the State Constitution and RCW 84.52.052. To be valid, such popular vote must have a minimum
voter turnout of 40 percent of the number who voted at the last City general election, except that one -
year excess tax levies also are valid if the turnout is less than 40 percent and the measure receives a
number of affirmative votes equal to or greater than 24 percent of the number who voted at the last
9
I RAFT
City general election. Excess levies may be imposed without a popular vote when necessary to
prevent impairment of the obligations of contracts.
Regular Property Tax Limitations
The authority of a City to levy taxes without a vote of the people for general City purposes, including the
payment of debt service on limited tax general obligation indebtedness, is subject to the limitations described
below Information relating to regular property tax limitations is based on existing statutes and constitutional
provisions. Changes in such laws could alter the impact of other interrelated tax limitations on the City
Regular property tax levies are subject to rate limitations and amount limitations, as described below, and to
the uniformity requirement of Article VII, Section 1 of the State Constitution, which specifies that a taxing
district must levy the same rate on similarly classified property throughout the district. Aggregate property
taxes vary within the county because of its different overlapping taxing districts. In the event that the
maximum permissible levy varies within the City, the lowest permissible rate for any part of the City would be
applied to the entire City
Maximum Rate Lunitation. Title 84 RCW authorizes the imposition of regular tax levies to various statutory
maximums (see "Overlapping Taxing Districts" herein)
The One Percent Aggregate Regular Levy Lunitation. Article VII, Section 2 of the Washington Constitution, as
amended in 1973, limits aggregate regular property tax levies by the State and all taxing districts, except port
districts and public utility districts, to one percent of the true and fair value of property RCW 84.52.050
provides the same limitation by statute.
$5 90/$1,000 Aggregate Regular Levy Limitation. Within the one percent limitation described above,
RCW 84.52.043(2) imposes an aggregate limitation on regular tax levies by all taxing districts, other than the
State, of $5 90/$1,000 of assessed value, except levies for any port or public utility district; excess levies
authorized in Article VII, Section 2 of the State Constitution, and certain levies for acquiring conservation
futures, for emergency medical services or care, and to finance affordable housing.
Uniformity Requirement. Article VII, Section 1 of the Washington Constitution requires that property taxes be
levied at a uniform rate upon the same class of property within the territorial limits of a taxing district levying
such taxes It is possible because of different overlapping taxing districts in different areas of the City that the
maximum permissible levy might vary within the City In that event, to comply with the constitutional
requirement for uniformity of taxation, the lowest permissible rate for any part of the City would be applied to
the entire City
Prioritization of Levies RCW 84.52.010 provides that if aggregate levies certified by all taxing districts exceed
the aggregate levy limitations described above, levies certified by junior taxing districts are reduced or
eliminated in order to bring the aggregate levy into compliance with the statutory maximum prescribed by
RCW 04.52.050 and 84.52.043 RCW 84.52.043 defines "junior taxing districts" as all taxing districts other than
the state, counties, road districts, cities, towns, port districts, and public utility districts.
The tax levy for unlimited tax general obligation bonds is a special excess levy approved by the voters, and as
such, is not subject to the limitations on regular levies described above.
The Levy Limitation. The regular property tax increase limitation (Chapter 84.55 RCW), as amended most
recently by Initiative No 747 (which was passed by voters on November 6, 2001), limits the total dollar
amount of regular property taxes levied by an individual local taxing district such as the City to the amount of
such taxes levied in the highest of the three most recent years multiplied by a limit factor, plus an adjustment
to account for taxes on new construction, annexations, improvements and State - assessed property at the
previous year's rate. The limit factor is the lesser of 101 percent of the highest levy in the three previous years
(excluding new construction, improvements, and State - assessed property) or 100 percent plus inflation, unless
a greater amount is approved by a simple majority of the voters. With a supermajority vote of the Board, the
limit factor is a flat 101 percent.
10
RCW 84.55 092 allows the property tax levy to be set at the amount that would be allowed if the tax levy -for
taxes due in each year since 1986 had been set at the full amount allowed under Chapter 84.55 RCW This is
sometimes referred to as "banked" levy capacity
With a majority vote of its electors, a taxing district may levy, within the rate limitations described above,
more than what otherwise would be allowed by the tax increase limitation indefinitely or for a limited period
or to satisfy a limited purpose, as allowed by RCW 84.55 050 This is known as a "levy lid lift." A newly
created taxing district can initiate its levy at the maximum permitted statutory levy rate, unless that rate would
exceed any of the limitations described above.
Since the regular property tax increase limitation applies to the total dollar amount levied rather than to levy
rates, increases in the assessed value of all property in the taxing district (excluding new construction,
improvements and State - assessed property) which exceed the rate of growth in taxes allowed by the limit
factor result in decreased regular tax levy rates, unless voters authorize a higher levy or the taxing district uses
banked levy capacity Decreases in the assessed value of all property in the taxing district (including new
construction, improvements and State - assessed property) or increases in such assessed value that are less than
the rate of growth in taxes imposed, among other events, may result in increased regular tax levy rates.
Assessed Value
The County Assessor, or equivalent thereof ( "Assessor "), determines the value of all real and personal
property throughout the County that is subject to ad valorem taxation, except certain utility properties which
are valued by the State Department of Revenue. The Assessor is an elected official whose duties and methods
of determining value are prescribed and controlled by statute and by detailed regulations promulgated by the
State Department of Revenue.
For tax purposes, the assessed value of property is 100 percent of its market value. Three approaches may be
used to determine real property value: market data, replacement cost and income generating capacity In
Yakima County, all property is subject to an annual property valuation and an on -site revaluation every six
years. The property is listed by the Assessor on a roll at its current assessed value and the roll is filed in the
Assessor's office. The Assessor's determinations are subject to revisions by the County Board of Equalization
and, for certain property, subject to further revisions by the State Board of Tax Appeals.
Tax Collection Procedure
Property taxes are levied in specific amounts and the rate for all taxes levied for all taxing districts in the
County is determined, calculated and fixed by the Assessor based upon the assessed value of the property
within the various taxing districts. The Assessor extends the taxes to be levied within each taxing district on a
tax roll that contains the total amount of taxes to be so levied and collected. By January 15 of each year, the tax
roll is delivered to the County Treasurer, or equivalent thereof, who creates a tax account for each taxpayer
and is responsible for the collection of taxes due to each account. All such taxes are due and payable on April
30 of each year, but if the amount due from a taxpayer exceeds $50, one -half may be paid then and the balance
no later than October 31 of that year Delinquent taxes are subject to interest at the rate of 12 percent per year
computed on a monthly basis from the date of delinquency until paid. In addition, a penalty of three percent
is assessed on June 1st of the year in which the tax was due and eight percent on December 1st of the year due.
All collections of interest on delinquent taxes are credited to the County's current expense fund. The method
of giving notice of payment of taxes due, the accounting for the money collected, the division of the taxes
among the various taxing districts, notices of delinquency, and collection procedures are covered by detailed
statutes. The lien on property taxes is prior to all other liens or encumbrances of any kind on real or personal
property subject to taxation. By law the County Treasurer may not commence foreclosure of a tax lien on real
property until three years have passed since the first delinquency The State's courts have not decided
whether the Homestead Law (chapter 6 13 RCW) may give the occupying homeowner a right to retain the first
$40,000 of proceeds of the forced sale of the family residence or other "homestead" property for delinquent
general property taxes. (See Algona v Sharp, 30 Wn. App 837, 638 P.2d 627 (1982), holding the homestead
right superior to the improvement district assessments.) The United States Bankruptcy Court for the Western
District of Washington has held that the Homestead Exemption applies to the lien for property taxes, while the
State Attorney General has taken the position that it does not.
11
DRAFT
City of Yakima
Tax Collection Record
Tax Collection
Collection Regular Ad Valorem Year As of
Year Assessed Value (1) Tax Levy of Levy 09/30/05
2005 $3,971,667,847 $13,960,632 (2) (2)
2004 3,824,096,823 13,592,285 96.8% 98 4%
2003 3,673,433,781 13,280,578 96 7 99.2
2002 3,268,615,861 12,390,073 95 4 99 7
2001 3,156,055,363 11,968,211 95.8 99 9
2000 3,076,532,870 11,488,967 94.4 100 0
(1) Assessed valuation is based upon 100 percent of estimated actual valuation.
(2) In process of collection.
NOTE. Taxes are due and payable on April 30 of each year of the levy The entire tax or first half must be paid on or
before April 30, otherwise the total amount becomes delinquent on May 1 The second half of the tax is payable
on or before October 31, becoming delinquent November 1.
Source. City of Yakima and Yakima County Assessor's Office
City of Yakima
Major Property Taxpayers
Percent of
2005 Collection Year City's
Taxpayer Type of Business Assessed Valuation Total A.V.
Yakima HMA Inc. 01) Hospital $ 53,075,420 1.34%
Shields Bag & Printing Co Manufacturing 41,086,084 1 03
Qwest Corporation Telecommunications 33,237,065 0.84
Longview Fibre Co Manufacturing 24,337,472 0.61
Leelynn Inc. and Wiley Mountain Inc. Lumber 21,031,850 0.53
John I. Haas, Inc. Hop processing 20,420,992 0.51
Washington Fruit & Produce Fruit processing 16,965,493 0 43
Yakima Valley Memorial Hospital Hospital 16,687,200 0 42
Snokist Growers Inc. Fruit processing 16,495,712 0 42
Yakima Mall Shopping Center ( Retail 15,969,997 0.40
Subtotal - Ten of the City's Largest Taxpayers 259,307,285 6.53
All Other City Taxpayers 3,712,360,562 93.47
Total City Taxpayers $ 3,971,667,847 100.00%
(1) Formerly Providence Health Systems, a non - profit medical facility Yakima HMA Inc. is doing business as Yakima
Regional Medical and Cardiac Center
(2) The Yakima Mall Shopping Center closed as of December 31, 2003 The owner is building a new Hilton Garden Inn
hotel on the site, which is expected to be surrounded by some new retail. The hotel is scheduled to open in late 2005
or early 2006.
Source. Yakima County Assessor's Office
Authorized Investments
Chapter 35.39 RCW limits the investment by cities and towns of its inactive funds or other funds in excess of
current needs to the following authorized investments. United States bonds, United States certificates of
indebtedness, bonds or warrants of the State and any local government in the State; its own bonds or warrants
of a local improvement district which are within the protection of the local improvement guaranty fund law;
and any other investment authorized by law for any other taxing district or the State Treasurer Under chapter
43.84 RCW, the State Treasurer may invest in non - negotiable certificates of deposit in designated qualified
public depositories, in obligations of the US government, its agencies and wholly owned corporations, in
bankers' acceptances, in commercial paper; in the obligations of the federal home loan bank, federal national
mortgage association and other government corporations subject to statutory provisions and may enter into
12
repurchase agreements. Utility revenue bonds and warrants of any city and bonds or warrants of a local
improvement district are also eligible investments (RCW 35.39 030)
Money available for investment may be invested on an individual fund basis or may, unless otherwise
restricted by law, be commingled within one common investment portfolio All income derived from such
investment may be either apportioned to and used by the various participating funds or for the benefit of the
general government in accordance with city ordinances or resolutions. Funds derived from the sale of bonds
or other instruments of indebtedness will be invested or used in such manner as the authorizing ordinances,
resolutions or bond covenants may lawfully prescribe.
Local Government Investment Pool
The State Treasurer's Office administers the Washington State Local Government Investment Pool (the
"LGIP "), a $5 1 billion dollar fund that invests money on behalf of more than 350 cities, counties and special
taxing districts. In its management of LGIP, the State Treasurer is required to adhere, at all times, to the
principles appropriate for the prudent investment of public finds. These are, in priority order, (i) the safety of
principal, (ii) the assurance of sufficient liquidity to meet cash flow demands, and (iii) to attain the highest
possible yield within the constraints of the first two goals. Historically, the LGIP has had sufficient liquidity to
meet all cash flow demands.
The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool which provides its participants the
opportunity to benefit from the economies of scale inherent in pooling. It is also intended to offer participants
increased safety of principal and the ability to achieve a higher investment yield than would otherwise be
available to them. The pool is restricted to investments with maturities of one year or less, and the average life
typically is less than 90 days. Investments permitted under the pool's guidelines include U.S. government and
agency securities, bankers' acceptances, high quality commercial paper, repurchase and reverse repurchase
agreements, motor vehicle fund warrants, and certificates of deposit issued by qualified Washington State
depositories.
Authorized Investments for Bond Proceeds
In addition to the eligible investments discussed above, bond proceeds may also be invested in mutual funds
with portfolios consisting of U.S. government and guaranteed agency securities with average maturities of less
than four years, municipal securities rated in one of the four highest categories, and money market funds
consisting of the same, so long as municipal securities held in the fund(s) are in one of the two highest rating
categories of a nationally recognized rating agency Bond proceeds may also be invested in shares of money
market funds with portfolios of securities otherwise authorized by law for investment by local governments
(RCW 39.59.030) See "The City - Cash and Investments" for more information regarding the City's
investment practices.
13
City of Yakima Pi Dv 1,. 94 1
Comparative General Fund Statement
of Revenues, Expenditures and Changes in Fund Balance
(Fiscal Years Ended December 31)
Audited
2004 2003 2002 2001 2000
Revenues
Taxes and Special Assessments $ 30,119,323 $ 28,294,713 $ 26,565,287 $ 25,438,932 $ 24,285,034
Licenses and Permits 529,767 469,716 405,856 408,688 331,190
Intergovernmental 1,605,395 1,739,409 1,749,790 1,829,708 1,669,192
Charges for Services 4,201,981 3,861,959 3,723,724 3,466,615 3,407,465
Fines and Forfeitures 1,363,565 1,396,796 1,631,877 1,553,036 1,608,584
Interest 414,847 425,786 558,359 893,688 950,269
Other 40,518 (259,859) 56,453 51,885 52,050
Total Revenues $ 38,275,396 $ 35,928,520 $ 34,691,346 $ 33,642,552 $ 32,303,784
Expenditures
General Government 9,783,461 8,963,242 8,662,004 8,053,234 7,997,793
Security of Persons and Property 23,297,962 22,262,081 20,794,442 19,490,986 18,993,558
Physical Environment 1,326,367 1,230,396 1,242,009 1,086,178 1,048,394
Economic Environment 582,593 503,422 419,434 372,629 425,484
Mental and Physical Health 16,952 15,327 23,219 22,608 21,510
Culture and Recreation 1,421,107 1,405,448 1,251,178 1,214,139 1,190,468
Capital Outlay 200,122 56,641 93,030 89,068 157,526
Debt Service 357,374 211,843 212,403 212,754 214,314
Total Expenditures 36,985,938 34,648,400 32,697,719 30,541,596 30,049,047
Excess of Revenues
Over (Under) Expenditures 1,289,458 1,280,120 1,993,627 3,100,956 2,254,737
Other Financing Sources (Uses)
Proceeds from Capital Lease Financing 147,669 0 0 0 0
Operating Transfers In 145,000 110,000 110,000 110,000 110,000
Operating Transfers (Out) (1) (2,005,430) (1,845,427) (1,919,371) (1,910,660) (1,862,966)
Comp. For Loss of Gen. Fixed Assets 779 1,143 2,774 989 12,040
Total Other Financing Sources (Uses) (1,711,982) (1,734,284) (1,806,597) (1,799,671) (1,740,926)
Excess of Revenues and Other Sources
Over (Under) Expenditures/Other Uses (422,524) (454,164) 187,030 1,301,285 513,811
Fund Balance, January 1 9,256,841 9,709,874 (2) 6,191,466 4,903,996 4,401,093
Change in Reserve for Inventory 16,217 1,131 (3,280) (13,815) (10,908)
Ending Fund Balance $ 8,850,534 $ 9,256,841 $ 6,375,216 $ 6,191,466 $ 4,903,996
(1) The majority of operating funds transferred out of the general fund are used to fund parks programs, bonded debt
service, contingency funds and the City s public safety communications network.
(2) In conjunction with GASB 34, the City also implemented GASB 33, which defines revenue recognition for "no exchange"
(i.e. tax) transactions. As a result of the implementation of GASB 33, a change in accounting principlewas determined to
have occured. This change caused a restatement of $3,334,658 in the General Fund beginning fund balance to comply
with the pronouncement.
Source. Cihj of Yakima
14
I -. A F T
- 7 .,
Comparative General Fund Balance Sheet
(Fiscal Years Ended December 31)
Audited
2004 2003 2002 2001 2000
Assets and Other Debits
Cash & Equity in Pooled Investments $ 2,351,707 $ 1,050,215 $ 7,704,560 $ 8,890,037 $ 7,372,158
Receivables:
Taxes 3,684,741 3,363,202 862,274 727,573 827 451
Accounts 153,443 174,206 174,086 166,865 176,765
Interest/ Penalties 70,611 89,499 287,596 287,633 366,448
Other 6,397 0 0 0 0
Due from Other Funds 242,101 584,875 1,066,233 153,003 63,818
Due from Other Gov't Units 28,880 73,368 26,964 26,964 51,116
Inventories 44,150 27,933 26,802 30,082 43,897
Investments, at amortized cost 5,670,001 7,500,000 0 0 (15,523)
Total Assets 12,252,031 12,863,298 10,148,515 10,282,157 8,886,130
Liabilities
Warrants/ Accounts Payable 503,264 606,871 389,798 642,513 517,171
Wages/ Benefits Payable 2,655,805 2,551,753 2,246,608 2,054,005 2,035,914
Due to Governments 37,258 22,399 24,585 25,083 23,129
Deposits Payable 68,183 271,744 214,524 10,963 39,459
Deterred Revenues 136,987 153,690 897,784 1,358,127 1,366,461
Total Liabilities 3,401,497 3,606,457 3,773,299 4,090,691 3,982,134
Fund Equity and Other Credits
Fund Balance:
Reserved 383,582 781,001 788,694 771,777 714,745
Unreserved 8,466,952 8,475,840 5,586,522 5,419,689 4,189,251
Total Fund Equity and Other Credits 8,850,534 9,256,841 6,375,216 6,191,466 4,903,996
Total Liabilities, Equity and Other Credits $ 12,252,031 $ 12,863,298 $ 10,148,515 $ 10,282,157 $ 8,886,130
Source: City of Yakima
15
[El) p.,, F T
The City
The City of Yakima was incorporated in 1886. It is the tenth largest city in the State of Washington (the
"State "), and encompasses approximately 23 square miles. The City provides the full range of municipal
services including public safety (police, fire, building), public improvements (streets, traffic signals, storm
sewer, irrigation utility), sanitation (solid waste disposal, wastewater utility), water utility, irrigation utility,
community development, parks and recreation, and general administrative services.
The City operates under a council/ manager form of government with a full -time city manager The City
Council consists of seven council members. Four members are elected from individual districts and three are
elected at large. The mayor is chosen by the City Council (the "Council ") from within its own membership
every two years.
Elected Officials
City Council Term Expires
Paul P George, Mayor December 31, 2005
Neil McClure, Asst. Mayor December 31, 2007
Ronald J Bonlender December 31, 2007
Dave Edler December 31, 2007
Mary Place December 31, 2005
Bernard J Sims December 31, 2005
Susan J Whitman December 31, 2007
Key Administrative Staff
Richard A. Zais, Jr., City Manager Mr Zais joined the City in 1973 as the Administrative Assistant to the City
Manager and was appointed to the position of City Manager in January 1979 Mr Zais has held this position
for 25 years and is responsible for the supervision and direction of a full- service city with seven operating
departments. Mr Zais prepares and administers the $140 million annual City budget with a $55 million
annual payroll for over 700 full -time employees. Mr Zais serves as the Council's chief advisor, appoints all
administrative officers and employees and executes Council policy and programs. Mr Zais' educational
background is in public administration with a B.A. and M.P.A. from the University of Washington.
Rita M. Anson, Director of Finance & Budget. Ms. Anson joined the City in 1999 as the Finance Director, coming
from Puget Sound Energy Corporation. Ms Anson is responsible for all financial and treasury services,
budgeting and accounting, utility customer services and information systems for the City During her 21
years with Puget Sound Energy, Ms. Anson served in many capacities including the following key
management positions: Manager of District Operations, Manager of Corporate Budgets, and Manager of
Information Systems Project. Ms. Anson has a degree in Accounting from Central Washington University, is a
CPA and is a member of the AICPA, WSCPA and just completed a two -year term serving as the Treasurer for
the Yakima Sunrise Rotary
Tintothy M. Jensen, Treasury Services Officer Mr Jensen joined the City in 1990 as an accountant, coming from a
national public accounting firm where his primary duties were as a senior auditor Mr Jensen was appointed
the City's Treasury Services Officer in 2001 where he oversees the security of the City's investments, cash
management, and debt administration and performs high -level financial analysis. Mr Jensen obtained a B.S.
in Accounting from Central Washington University in 1986, and studied Economics at the University of
California, Berkeley and the University of Nevada, Reno from 1974 through 1977 Mr Jensen is an executive
officer of the Washington Finance Officers Association and will be President of that organization in 2008 He
has served on the Board of Directors of WFOA since 1998 Mr Jensen is a past member of the Washington
State Local Government Investment Pool Advisory Committee. He is also currently serving on the
Washington State Auditor's Local Government Advisory Committee and has served two different State
Treasurers on select issue committees.
Cindy J Epperson, Financial Services Manager Ms. Epperson joined the City in 1990 as an accountant and was
promoted to Financial Services Manager in 1998, where she has the responsibility for the City's accounting
systems and processes, and financial statement preparation. Ms. Epperson works closely with the City
16
,,RAFT
Manager and Finance Director to prepare the City's budget. Prior to joining the City, Ms. Epperson was
Accounting Manager for two local agricultural businesses. Prior to her experience in the agricultural industry,
Ms. Epperson was Senior Auditor for an international accounting firm. She obtained a B.S degree in
Accounting from the University of Arkansas in Little Rock.
Labor Relations
The City currently employs approximately 662 full -time and 25 part -time and temporary employees. A
majority of the City's employees are represented by bargaining units as follows.
Number
Bargaining Unit of Employees Contract Expiration Date
AFSCME Municipal 281 December 31, 2007 (I)
YPPA 113 December 31, 2005 (
Fire Suppression 76 December 31, 2006
AFSCME Transit 42 December 31, 2005 2
Fire Communications 13 December 31, 2006
Fire PERS 15 December 31, 2006
(1) 2007 contract is open as to economic terms.
(2) Currently under negotiation.
The City has a long history of good working relationships with its employee groups and bargaining units.
Pension System
Substantially all full -time and qualifying part -time employees participate in one of the following statewide
local government retirement systems administered by the Washington State Department of Retirement
Systems, under cost - sharing, multiple- employer public employee retirement systems. Actuarial information is
on a system -wide basis and is not considered pertinent to the City's financial statements. City employees are
covered by the Public Employees' Retirement System ( "PERS ") Police officers and firefighters are covered by
the Law Enforcement Officers and Firefighters Retirement Fund ( "LEOFF ") Contributions to the systems by
both employee and employer are based upon gross wages covered by plan benefits.
LEOFF includes two plans and PERS includes three plans: Plans I and II are defined benefit plans and Plan III
is a combination defined benefit/ defined contribution plan. PERS participants who joined the system by
September 30, 1977 are Plan I members. Those who joined thereafter are enrolled in Plan II unless they
exercise an option to transfer their membership to Plan III. Plan III became effective March 1, 2003
Retirement benefits are financed from both employee and employer contributions and investment earnings.
Retirement benefits under Plans I and II are vested after completion of five years of eligible service. Plan III
members are vested after ten years of eligible service. Participants enrolled in Plan II may elect to transfer to
Plan III, during the specified transfer window period that occurs in January of each year Once employees
transfer to Plan III, they may not return to Plan II membership In addition, new PERS eligible employees after
September 1, 2002 who do not specify a plan choice will transfer automatically to Plan III.
Retirement benefits are financed from both employee and employer contributions and investment earnings
and are vested after completion of five years of eligible service. For the year ending December 31, 2004, the
City's contribution of $312,754, or 1.38 percent of covered payrolls, represents its full liability under the
system, except that future rates may be adjusted to meet the system needs.
LEOFF LEOFF includes two plans. For the year ending December 31, 2004, the City's contribution to
LEOFF I (for participants who joined the system by September 30, 1977) of 019 percent and to LEOFF II
(participants who joined after September 30, 1977) of 3.25 percent of covered payroll totaled $413,337,
representing its full liability under the system, except that future rates may be adjusted to meet the system
needs.
LEOFF and PERS employer and employee contributions rates will rise over the next four to six years to make
up for recent State pension fund losses. The Select Committee on Pension Policy ( "SCPP ") studies pension
policy and makes recommendations to the Legislature on benefit changes for most State retirement systems,
17
DRAFT
including PERS and Plan 1 of LEOFF Because of the financial hardship significant rate increases impose on
both employers and employees alike, the Legislature explored a variety of proposals to soften that budgetary
impact.
The last actuarial value of assets in the State - administered retirement systems was done for the year ended
September 30, 2003, which showed actuarial assets of $43.869 million and accrued liability of $47 130 million.
This could result in increased contribution rates for the City There are no unfunded liabilities on the part of
the City
When the legislative session ended in April 2005, the Legislature had passed a compromise on pension
funding (ESHB 1044) In a departure from previous pension funding policy, the bill phases in the needed
2005 -2007 rate increase over a four- year period. It also makes other changes designed primarily to save the
State money The following is a brief summary of the bill's major provisions:
• Begins a four -year phase -in of annual pension contribution rates, with a 2.25 percent PERS employer
contribution rate effective July 1, 2005, increasing to 3.5 percent effective July 1, 2006
• Directs the Pension Funding Council to adopt annual contribution rates for the 2007 -2009 biennium
that would complete the four -year phase -in schedule by September 30, 2006
• Continues to suspend contribution rates for the State's unfunded liabilities in PERS Plan I during the
2005 -2007 biennium.
• Delays recognition of the cost associated with future gain - sharing benefit distributions until the 2007-
2009 biennium.
• Directs the Select Committee on Pension Policy to study the options available to address the liability
associated with future gain - sharing distributions during the 2005 interim, and report the findings and
recommendations of the study to the fiscal committees of the Legislature.
The following chart shows PERS employer and PERS Plan II employee contribution rates for the 2005 -2007
biennium.
Employer Rate Member Rate
Contribution Rate Period (PERS 1/2/3) (PERS 2)*
7 -1 -05 through 6 -30 -06 2.25% 2.25%
7 -1 -06 through 6 -30 -07 3.50% 3.50%
* PERS Plan 1 employees pay a statute set six percent; PERS Plan 3 employees individually select their rate, so there is not
uniformity
On December 9, 2004 the LEOFF 2 Board, which governs Plan 2 of LEOFF, approved a proposal to provide for
contribution rate increases for the years 2005 through 2009 on an annual basis (rather than biennially) as
shown in the following chart:
Contribution Rate Beginning LEOFF 2 Member Employer
Date Contribution Rate* Contribution Rate
July 1, 2005 6.75% 4.05%
July 1, 2006 7.55% 4.53%
July 1, 2007 8.30% 4.98%
July 1, 2008 8 49% 5 09%
* LEOFF Plan 1 employers and employees currently do not pay retirement contributions due to a surplus in the fund.
Unfunded Pension Liabilities The City maintains two single employer defined benefit pension plans, Firemen's
Pension and Police Pension, which are closed systems covering Firemen and Police Officers hired prior to
March 1, 1970 Both plans had their first annual actuarial valuation as of March 31, 1989, and the required
contributions identified in that valuation have been the basis for recording the unfunded pension liability
since 1989
The Police Pension is a department in the General Fund, and is operating on a pay -as- you -go basis. The
unfunded pension liability will be adjusted annually by comparing actual expenditures for pension benefits to
18
D E
the actuarially determined contribution. The City intends to maintain this plan on a pay -as- you -go basis. This
fund had an unfunded pension liability of $3,367,806 at December 31, 2004.
The Firemen's Relief and Pension Fund is a trust fund, and has as its funding sources a portion of local
property taxes, a state tax on fire insurance premiums and interest income. This fund had an unfunded
pension liability of $850,170 at December 31, 2004. An actuarial study was completed January 1, 2003
Actuarial studies are performed every five years.
Risk Management
The City maintains reserve funds to provide for self - insurance coverage in the areas of Unemployment
Compensation, Medical /Dental coverage, and Workers' Compensation. In addition, the City maintains a Risk
Management Fund to provide for property, liability, and other coverages
Unemployment Compensation. In 1978, the City established an Unemployment Compensation Reserve Fund to
provide unemployment compensation coverage for its employees, and thereby elected to participate with the
State in a cost - reimbursement instead of monthly premium program. In doing so, the City retained its right to
appeal awards and determinations made by the State Department of Employment Security
Self - insured Medical/Dental Program. The City, in 1979, self - insured its medical and dental programs for all
employees other than temporary employees and employees hired to work less than half -time. The City's
Human Resources Office administers the self - insured program and claims payment services are provided by
Health Care Management Administration, Inc.
Each operating fund is charged an amount per covered employee which would otherwise have been paid to
an insurance carrier Interfund premiums to the Employee Health Benefit Reserve Fund for 2004 were
$6,160,969 Incurred but not reported claims of $947,411 were accrued as a liability
In order to avoid catastrophic losses, the City "reinsures" the program by purchasing insurance known as
"stop -loss insurance." Two types of "stop- loss" insurance are purchased. (i) individual stop -loss, and
(ii) aggregate stop -loss, with both provided through Safeco Insurance Company Under the individual stop -
loss insurance, the City pays the first $150,000 of claims for an individual employee or dependent. Any
charges accrued by an individual in excess of $150,000 in a calendar year are thereafter reimbursed by Safeco
The aggregate stop -loss is designed to protect the City from multiple large claims which may not reach the
individual stop -loss attachment point of $150,000 The aggregate stop -loss attachment point is calculated by
determining the projected amount of claims for the year and adding an additional 25 percent of that amount
(125 percent of projected claims)
Workers' Compensation Program. The City self - insured its workers' compensation program for all employees
except those covered by the LEOFF I Retirement System in 1984. This workers' compensation program
provides coverage identical to the State - administered workers' compensation program, however, the City pays
only the direct injury- related costs and certain administrative fees. The program is administered by the City's
Personnel Office with claims administration and safety services provided by Ward North America (formerly
Scott Wetzel Services, Inc.)
Each operating fund is charged an appropriate accrual amount, per employee, based on rate requirements
prescribed by the State. Each year the Reserve Fund is reviewed to determine a contribution rate which
provides for an appropriate reserve. Interfund premiums to the Workers' Compensation Fund for 2004 were
$1,249,258 Based on the claim manager's estimate, the City has accrued incurred but not reported claims of
$569,539 at December 31, 2004.
In order to avoid catastrophic losses, the City "reinsures" the program by purchasing insurance known as
"stop -loss insurance." This insurance is provided through Marsh Advantage America under a policy
purchased from Employers Reinsurance. Under the individual stop -loss portion of the insurance, the City is
liable for the first $500,000 of claims resulting from a specific accident. Charges beyond that $500,000 are
covered by stop -loss insurance up to $25 million.
19
P RAFT
Risk Management Program. The Risk Management Reserve Fund was established in 1986 when the City
elected to self - insure the liability exposure portion of its insurance program. Resources accrue to the fund
through interfund premiums to Operating Funds for appropriate insurance coverage and the replenishment
and building of reserves for potential liability claims. City contributions to the Risk Management Reserve
Fund for 2004 were $1,635,745 The Fund provides for administration, legal services, claims adjustment, and
for the purchase of property, excess liability and other insurance coverage.
Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can
be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported.
The result of the process to estimate the claims liability is not an exact amount as it depends on many complex
factors, such as inflation, changes in legal doctrines and damage awards. Accordingly, claims are reevaluated
periodically to consider recent claim settlement trends, inflation and other economic and social factors. The
estimate of the claims liability also includes amounts for incremental claims adjustment expenses related to
specific claims. Based on these factors, the claims manager's estimate of claims liability was $1.2 million as of
December 31, 2004. Excess liability coverage is provided from Genesis Underwriters Management Company
in an amount of $8 million, with a $1 million retention.
Accounting Policies
Accounting records for the City are maintained in accordance with methods prescribed by the State Auditor
under the authority of Washington State law The City financially reports on the calendar year basis and
employs a double -entry modified accrual system for all fund categories with the exception of proprietary,
nonexpendable and pension trust funds which require full accrual reporting. The modified accrual basis
differs from the accrual basis in the following ways: (i) purchases of capital assets are considered
expenditures, (ii) redemption of long -term debt is considered an expenditure when due, (iii) revenues are
recognized only when they become both measurable and available to finance expenditures of the current
period, revenues that are measurable but not available are recorded as receivable and offset by deferred
revenues, (iv) inventories and prepaid items are reported as expenditures when purchased, (v) interest on
long -term debt is not accrued but is recorded as an expenditure when due, and (vi) accumulated unpaid
vacation and sick pay are considered expenditures when paid. In accordance with GASB 34, the City has
implemented this accounting standard in its December 31, 2004 financial statement.
Fund Accounting The accounts of the City are organized on the basis of funds each of which is considered a
separate accounting entity The City uses governmental, proprietary and fiduciary funds. Each governmental
fund and expendable trust or agency fund is accounted for with a separate set of self - balancing accounts that
comprise its assets, liabilities, fund balances, revenues and expenditures. Proprietary and similar trust funds
use the revenue, expense and equity accounts of similar businesses in the private sector The City's resources
are allocated to and accounted for in individual funds depending on what they are to be spent for and how
they are controlled.
Governmental Funds All governmental funds are accounted for on a spending or "financial flow"
measurement focus This means that only current assets and current liabilities are generally included on their
balance sheets. Their reported fund balance (net current assets) is considered a measure of "available
expendable resources." Governmental fund operating statements focus on measuring changes in financial
position, rather than net income; they present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
Budgetary Process
The City Council annually approves the City's operating budget. The operating budget is designed to allocate
available resources among the City's services and programs and to provide for associated financing decisions.
Annual appropriated budgets are adopted on the modified accrual basis of accounting For governmental
funds, there are no differences between budgetary basis and generally accepted accounting principles.
Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements include
budgetary comparisons for the General Fund and Special Revenue Funds only Budgets for debt service and
capital projects are adopted at the level of the individual debt issue or project and for fiscal periods that
correspond to the lines of debt issues or projects. Annual appropriated budgets are adopted at the fund level.
Subsidiary revenue and expenditure ledgers are used to compare the budgeted amounts with actual revenues
20
T)).'0. AFT
and expenditures. As a management control device, the subsidiary ledgers monitor expenditures for
individual functions and activities by object class. Appropriations for general and special revenue funds lapse
at year -end.
The City Manager is authorized to transfer budgeted appropriations between departments within any fund,
however, any revisions that alter the total expenditures of a fund, or that affect the number of permanently
authorized employee positions, salary ranges, or other conditions of employment must be approved by the
City Council.
Cash and Investments
Cash and investments are managed under the guidance of the City's Investment Policy adopted by a
resolution of the City Council. The policy was based on the Model Investment Policy prepared by the
Municipal Treasurers' Association of the United States and Canada and applies to all financial assets of the
City
Investments are made using the "prudent person" standard with primary objectives being safety of principal,
liquidity enabling the City to meet all operating requirements and a return on investment objective of attaining
a market rate of return through budgetary and economic cycles. City policies require the City to minimize
counterparty risks by safekeeping all purchased securities and conducting all trades on a delivery versus
payment basis A report on the performance of the Treasury Division is prepared quarterly for review by the
City Council and City Manager
Investments of City funds except those of the Firemen's Relief and Pension Fund are limited to (i) investment
deposits, including certificates of deposit with qualified public depositories as defined in chapter 39 59 RCW,
(ii) certificates, notes or bonds of the United States, or other obligations of the United States, or its agencies, or
of any corporation wholly owned by the government of the United States, (iii) obligations of government -
sponsored corporations which are eligible as collateral for advances to member banks as determined by the
Board of Governors of the Federal Reserve System, (iv) banker's acceptances sold on the secondary market;
and (v) the LGIP
The market value of investments held in the combined portfolios under the control of the Department of
Finance and Budget as of December 31, 2004 was $58 9 million. Of that amount, 52 percent was in agency
securities, 42 percent was in the LGIP, four percent was invested in U.S Treasuries, and two percent was
invested in municipal securities. See "Appendix C - 2004 Annual Financial Report" for a breakdown of
investments.
Auditing of City Finances
Accounting systems and budgetary controls are prescribed by the Office of the State Auditor in accordance
with RCW 43 09.200 and RCW 43 09.230 The City complies with the systems and controls prescribed by the
Office of the State Auditor and establishes procedures and records which reasonably assure safeguarding of
assets and the reliability of financial reporting (see "Authorized Investments" herein)
The State Auditor is required to examine the affairs of cities at least once every two years. The City is audited
annually The examination must include, among other things, the financial condition and resources of the
City, whether the laws and constitution of the State are being complied with, and the methods and accuracy of
the accounts and reports of the City Reports of the auditor's examinations are required to be filed in the office
of the State Auditor and in the finance department of the City
The audited financial statements of the City for the year ended December 31, 2004, attached as Appendix C,
are incorporated by reference to this Official Statement and have been filed with the current nationally
recognized municipal securities information repositories ( "NRMSIR ")
21
Demographic Information
The City lies in central Washington State m the County about 142 miles
southeast of Seattle and 188 miles northeast of Portland, Oregon. The County _ 1
ranks second in the State in terms of square miles and seventh in terms of
population. The City is the County seat and the largest incorporated' : 'w[�
community m the County encompassing 23 square miles. Population history tY � h' p g q p Y � ���w��'
for both the City and County in recent years is shown in the following table: �
Yakima Cou nty
Population Washington
Yakima County and the City of Yakima
Yakima City of
April 1 County Yakima
2005 229,300 79,480*
2004 227,500 79,480
2003 226,000 79,220
2002 225,000 79,120
2001 224,500 73,040
*The City completed an annexation of 1,990 citizens in June 2005
Source. Washington State Office of Financtal Management, October 2005
Employment
The economy of the City is based on government - related jobs and agriculture that produces and processes tree
fruits, hops, mint, vegetables, livestock, dairy and grapes for wine. The City is the center of the County's
economic activity
City of Yakima
Maj or Employers
Number of
Employer Product Employees
Yakima School District Education 1,500
Yakima Valley Memorial Hospital Medical 1,100
Yakima Regional Hospital Medical 1,100
Yakima County Government 1,000
City of Yakima Government 623
Washington Beef, Inc. Meat packaging 620
Yakima Valley Community College College 596
Yakima Nations Legends Casino Entertainment 573
Snokist Growers Fruit canning 521
Western Recreational Vehicles Trailers, motor homes 600
Shields Bag & Printing Flexible packaging 550
Tree Top, Inc. Apple processing 525
Washington Fruit Fruit processing 430
Wal -Mart Distribution Distribution center 425
Source: Yaktma County Development Association 2004
22
OR &_isi L- -1
Income. Historic personal income and per capita income levels for the County and the State are shown below.
Yakima County and State of Washington
Total Personal and Per Capita Income
Yakima County State of Washington
Total Personal Per Capita Total Personal Per Capita
Year Income (in millions) Income Income (in millions) Income
2004 N/A N/A $217,240 1 $35,017
2003 $5,425.6 $23,916 203,889.7 33,254
2002 5,258 0 23,416 198,371.3 32,696
2001 5,151.7 23,062 193,498.3 32,289
2000 4,916.1 22,070 187,853 4 31,779
1999 4,625 4 20,875 175,491.3 30,037
Source. U.S Department of Commerce, Bureau of Economic Analysis, October 2005
Taxable Retail Sales. Taxable retail sales reflect only those sales subject to retail sales tax. Historic taxable retail
sales for the City and the County are shown below
City of Yakima and Yakima County
Taxable Retail Sales
City of Yakima
Year Yakima County
2005* $ 306,753,810 $ 557,949,458
2004 1,307,845,725 2,411,522,348
2003 1,246,026,347 2,294,202,221
2002 1,205,189,471 2,178,920,758
2001 1,176,022,552 2,122,049,462
2000 1,168,665,601 2,140,980,425
1999 1,157,451,996 2,057,895,211
*Data through 1St quarter only
Source. Washington State Department of Revenue, October 2005
Building Pernnts. Residential building permits are an indicator of growth within a region. The number and
valuation of new single- family and multi- family residential building permits in the County are listed below
Yakima County
Residential Building Permits
New Single Family Units New Multi Family Units Total
Year Number Valuation Number Valuation Valuation
2005 * 68 $ 13,883,921 N/ A N/A N/ A
2004 372 76,608,218 N/A N/A N/A
2003 333 56,530,404 3 $ 575,332 $ 57,105,736
2002 261 39,372,449 17 4,082,973 43,455,422
2001 218 31,260,016 7 3,341,679 34,601,695
2000 220 31,372,650 1 136,395 31,509,045
1999 323 41,818,791 7 1,230,362 43,049,153
* Through March 31, 2005
Source. Greater Yakima Valley Chamber of Commerce, October 2005
23
RAFT
Employment. Employment within the County is described in the following tables. Civilian Labor Force data
is based on household surveys of residents. NAICS data are estimates based on surveys of employers and
benchmarked based on covered employment as reported by all employers.
Yakima MSA
Nonagricultural Wage & Salary Workers
and Labor Force and Employment Data
Annual Average
2005 2004 2003 2002 2001
Civilian Labor Force 117,800 119,800 115,700 113,300 110,200
Total Employment 108,300 109,500 104,500 102,300 99,800
Total Unemployment 9,500 10,300 11,200 11,000 10,400
Percent of Labor Force 81 8.6 9 7 9 7 9 4
NAICS INDUSTRY (in thousands) 2005 2004 2003 2002 2001
TOTAL NONFARM 75,686 75,442 75,200 74,000 74,300
TOTAL PRIVATE 58,643 58,742 58,600 57,800 58,300
GOODS PRODUCING 12,271 12,742 12,900 13,300 13,900
NAT RESOURCES, MINING, & CONSTR. 3,457 3,425 3,200 3,100 3,100
MANUFACTURING 8,814 9,317 9,800 10,100 10,800
Non - Durable Goods 4,743 5,025 5,500 5,800 6,100
SERVICES PROVIDING 63,414 62,700 62,300 60,800 60,400
PRIVATE SERVICES PROVIDING 46,371 46,000 45,700 44,600 44,400
Trade, Transportation, and Utilities 16,386 16,308 15,700 15,800 16,200
Wholesale Trade 3,900 4,033 3,800 3,900 4,300
Retail Trade 9,443 9,400 9,500 9,200 9,200
Transportation, Warehousing, and Utilities 3,043 2,875 2,400 2,700 2,700
Professional and Business Services 4,429 4,567 4,900 4,500 4,400
Educational and Health Services 12,429 12,208 11,800 11,600 11,400
Health Services 11,271 11,100 10,800 10,700 10,500
Leisure and Hospitality 6,557 6,425 6,400 6,300 6,000
Food Services 4,871 4,608 4,600 4,500 4,400
GOVERNMENT 17,043 16,700 16,600 16,200 16,000
Federal Government 1,329 1,308 1,400 1,400 1,400
Total State Government 3,000 3,000 2,900 2,900 2,900
Total Local Government 12,714 12,392 12,300 11,900 11,700
Workers in Labor /Management Disputes 0 33 0 0 0
Source. Washington State Employment Security Department, October 2005
Initiative and Referendum
State Initiatives
Under the State Constitution, the voters of the State have the ability to initiate legislation and require the
Legislature to refer legislation to the voters through the powers of initiative and referendum, respectively The
initiative power in Washington may not be used to amend the State Constitution. Initiatives and referenda are
submitted to the voters upon receipt of a petition signed by at least eight percent (initiative) and four percent
(referenda) of the number of voters registered and voting for the office of Governor at the preceding regular
gubernatorial election. Any law approved in this manner by a majority of the voters may not be amended or
repealed by the Legislature within a period of two years following enactment, except by a vote of two- thirds of
all the members elected to each house of the Legislature. After two years, the law is subject to amendment or
repeal by the Legislature in the same manner as other laws.
24
Future Initiative Legislation. Other tax and fee initiative measures have been and may be filed, but it cannot be
predicted whether any such initiatives might gain sufficient signatures to qualify for submission to the
Legislature and/ or the voters or, if submitted, whether they ultimately would be approved.
Tax Exemption
In the opinion of Bond Counsel, assuming compliance with certain covenants of the City, interest on the Bonds
is excluded from gross income for federal income tax purposes under existing law Interest on the Bonds is not
an item of tax preference under the Internal Revenue Code of 1986, as amended (the "Code "), for purposes of
determining the alternative minimum tax imposed on individuals and corporations Interest on a Bond owned
by a corporation (other than an S corporation, regulated investment company, real estate investment trust or
real estate mortgage investment conduit) may be indirectly subject to alternative minimum tax because of its
inclusion in the earnings and profits of the corporate owner
The Code sets forth certain requirements that must be met subsequent to the issuance and delivery of the
Bonds for interest on the Bonds to remain excluded from gross income for federal income tax purposes. The
City has covenanted to comply with such requirements. Noncompliance with such requirements may cause
the interest on the Bonds to be included in gross income of the owners of the Bonds for federal income tax
purposes, retroactive to the date of issue of the Bonds. Bond Counsel's opinion assumes compliance with
these covenants, and Bond Counsel has not undertaken to determine, or to inform any person, whether any
actions taken or not taken, or events occurring or not occurring, after the date of issuance of the Bonds may
affect the tax status of interest on the Bonds
Interest on a Bond owned by a foreign corporation may be subject to the branch profits tax imposed by the
Code. Ownership of the Bonds may give rise to collateral federal income tax consequences to certain
taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, S
corporations with Subchapter C earnings and profits, individual recipients of Social Security or Railroad
Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to
purchase or carry the Bonds. Bond Counsel expresses no opinion as to any such collateral federal income tax
consequences. Purchasers of the Bonds should seek advice based on the purchaser's particular circumstances
from their own tax advisor
Qualified Tax - Exempt Obligations
The City has designated the Bonds as "qualified tax - exempt obligations" within the meaning of Section
265(b)(3)(B) of the Code.
Rating
As noted on the cover page of this Official Statement, the City will apply for ratings for the Bonds from
Standard & Poor's Ratings Services. When and if obtained, the rating will reflect only the views of the rating
agency and an explanation of the significance of the rating may be obtained from the rating agency There is
no assurance that the ratings, once obtained, will be retained for any given period of time or that the rating
will not be revised downward or withdrawn entirely by the rating agency if, in its judgment, circumstances so
warrant. Any such downward revision or withdrawal of the rating will be likely to have an adverse effect on
the market price of the Bonds.
No Continuing Disclosure Undertaking
The aggregate principal amount of the Bonds is less than $1 million, therefore the issuance of the Bonds does
not constitute an "Offering" under Securities and Exchange Commission Rule 15c2 -12 (the "Rule ")
Consequently, the City does not undertake to provide financial information or operating data or notices of
material events with respect to the Bonds pursuant to the Rule.
25
jp) A -
Legal and Underwriting
Approval of Counsel
Legal matters incident to the authorization, issuance and sale of Bonds by the City are subject to the approving
legal opinion of Preston Gates & Ellis LLP, Bond Counsel. A form of the opinion of Bond Counsel is attached
hereto Bond Counsel will be compensated only upon the issuance and sale of the Bonds. Bond Counsel has
not been retained to review and has not reviewed this Official Statement for completeness or accuracy and will
not offer an opinion concerning this Official Statement. All or a portion of the fees of Bond Counsel are
contingent upon the issuance and sale of the Bonds.
Litigation
There is no litigation pending or threatened questioning the validity of the Bonds nor the power and authority
of the City to issue the Bonds. There is no litigation pending or threatened which would materially affect the
City's ability to meet debt service requirements on the Bonds.
On February 15, 2005, Congdon Orchards, Inc. and Congdon Development Company, LLC ( "Congdon ") filed
a damage claim relating to Congdon's property, alleging Congdon has been wrongfully damaged by the City's
alleged breaches of contract, negligence, tortuous conduct, breaches of duties, errors and omissions, and other
wrongful conduct. Congdon alleges its damages exceed $21 million and are continuing. Congdon refers to
dates from 2001 to 2005 in its claim. Congdon has not yet filed a lawsuit. It is unknown whether a suit will be
pursued, therefore, the City cannot reasonably estimate the loss, if any, at this time. If a lawsuit is filed, the
City intends to defend against the suit.
Because of the nature of its activities, the City is subject to certain pending legal actions which arise in the
ordinary course of business. The City believes, based on the information presently known, that the ultimate
liability for any of such legal actions will not be material to the financial position of the City
Official Statement
In the Ordinance the City will deem final this Preliminary Official Statement as of its date for the purpose of
Securities and Exchange Commission Rule 15c2 -12.
Underwriting
The Bonds are being purchased by Seattle - Northwest Securities Corporation, the Underwriter The purchase
contract provides that the Underwriter will purchase all of the Bonds, if any are purchased, at a price of
percent of the par value of the Bonds, plus accrued interest. The Bonds will be reoffered at an average price of
percent of the par value of the Bonds. After the initial public offering, the public offering prices may be
varied from time to time.
Concluding Statement
All estimates, assumptions, statistical information and other statements contained herein, while taken from
sources considered reliable, are not guaranteed by the Underwriter or the City So far as any statement herein
includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated,
they are intended merely as such and not as representations of fact.
The information contained herein should not be construed as representing all conditions affecting the City or
the Bonds. Additional information may be obtained from the City The statements relating to the Ordinance
are in summarized form, and in all respects are subject to and qualified in their entirety by express reference to
the provisions of such document in its complete form.
The agreements of the City are set forth in such documents, and the information assembled herein is not to be
construed as a contract with the Owners of the Bonds Information with respect to the City set forth in this
Official Statement has been supplied by the City, and the Underwriter has relied on the City with respect to
the accuracy and sufficiency of such information.
26
, „ A F T
Appendix A
Form of Opinion of Bond Counsel
A F T
Appendix B
Book -Entry Transfer System
- AFT
.r'
THE D E P O S I T O R Y ' T,R U' S T G :O M A.'N; Y'
SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING
BOOK- ENTRY -ONLY ISSUANCE
(Prepared by DTC— bracketed material may be applicable only to certain issues)
1. The Depository Trust Company ( "DTC "), New York, NY, will act as securities depository for the
securities (the "Securities "). The Securities will be issued as fully- registered securities registered in the
name of Cede & Co (DTC's partnership nominee) or such other name as may be requested by an
authorized representative of DTC. One fully- registered Security certificate will be issued for [each issue
of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC.
[If, however, the aggregate principal amount of [any] issue exceeds $500 million, one certificate will be
issued with respect to each $500 million of principal amount, and an additional certificate will be issued
with respect to any remaining principal amount of such issue.]
2. DTC, the world's largest securities depository, is a limited - purpose trust company organized under the
New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York
Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2.2 million issues
of U.S and non -U.S equity issues, corporate and municipal debt issues, and money market instruments
from over 100 countries that DTC's participants ( "Direct Participants ") deposit with DTC. DTC also facil-
itates the post -trade settlement among Direct Participants of sales and other securities transactions in
deposited securities, through electronic computerized book -entry transfers and pledges between Direct
Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct
Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clear-
ing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository
Trust & Clearing Corporation ( "DTCC ") DTCC, in turn, is owned by a number of Direct Participants of
DTC and Members of the National Securities Clearing Corporation, Fixed Income Clearing Corporation
and Emerging Markets Clearing Corporation (NSCC, FICC, and EMCC, also subsidiaries of DTCC), as
well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National
Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both
U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that
clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly
( "Indirect Participants ") DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to
its Participants are on file with the Securities and Exchange Commission. More information about DTC
can be found at www dtcc.com and www dtc.org.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Securities on DTC's records. The ownership interest of each actual
purchaser of each Security ( "Beneficial Owner ") is in turn to be recorded on the Direct and Indirect
Participants' records. Beneficial Owners will not receive written confirmation from DTC of their
purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of
the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant
through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the
Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners Beneficial Owners will not receive certificates representing their
ownership interests in Securities, except in the event that use of the book -entry system for the Securities is
discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are
registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be
requested by an authorized representative of DTC. The deposit of Securities with DTC and their
registration in the name of Cede & Co or such other DTC nominee do not effect any change in beneficial
ownership DTC has no knowledge of the actual Beneficial Owners of the Securities, DTC's records reflect
ro) NA
only the identity of the Direct Participants to whose accounts such Securities are credited, which may or
may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for
keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial
Owners will be governed by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time. [Beneficial Owners of Securities may wish to take
certain steps to augment the transmission to them of notices of significant events with respect to the
Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents.
For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the
Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the
alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and
request that copies of notices be provided directly to them.]
[6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in
such issue to be redeemed.]
7 Neither DTC nor Cede & Co (nor any other DTC nominee) will consent or vote with respect to
Securities unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The
Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose
accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy)
8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to
Cede & Co , or such other nominee as may be requested by an authorized representative of DTC. DTC's
practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail
information from Issuer or Agent, on payable date in accordance with their respective holdings shown on
DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions
and customary practices, as is the case with securities held for the accounts of customers in bearer form or
registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or
Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment
of redemption proceeds, distributions, and dividend payments to Cede & Co (or such other nominee as
may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, dis-
bursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of
such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
[9 A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through
its Participant, to [Tender /Remarketing] Agent, and shall effect delivery of such Securities by causing the
Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to
[Tender /Remarketing] Agent. The requirement for physical delivery of Securities in connection with an
optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the
Securities are transferred by Direct Participants on DTC's records and followed by a book -entry credit of
tendered Securities to [Tender /Remarketing] Agent's DTC account.]
10. DTC may discontinue providing its services as depository with respect to the Securities at any
time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a
successor depository is not obtained, Security certificates are required to be printed and delivered.
11. Issuer may decide to discontinue use of the system of book -entry -only transfers through DTC (or
a successor securities depository) In that event, Security certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC's book -entry system has been obtained
from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof
[3/04]
Appendix C
2004 Annual Financial Report
DRAFT
BOND DEBT SERVICE
City of Yakima, Washington
Proposed 2005 LTGO Bonds
Current non - insured, k -rated interest rates plus 50 basis points
Dated Date 12/01/2005
Deli\en Date 12/01/2005
Penod Annual
Ending Pnncipal Coupon Interest Debt Sen Debt Service
12/01/2005
06/01/2006 15 496 25 15 496 25
12/01/2006 60 000 3 450% 15,496 25 75,496 25 90 992 50
06/01/2007 14 461 25 14 461 25
12/01/2007 60 000 3 550% 14 461 25 74 461 25 88 922 50
06/01/2008 13 396 25 13 396 25
12/01/2008 65 000 3 650% 13 396 25 78.396 25 91 792 50
06/01/2009 12 210 00 12,210 00
12/01/2009 65 000 3 750% 12,210 00 77,210 00 89,420 00
06/01/2010 10 991 25 10 991 25
12/01/2010 65 000 3 850 °' 10 991 25 75 9O 25 86 982.50
06/01/2011 9 740 00 9,740 00
12/01/2011 70 000 4 000% 9,740 00 79,740 00 89,480 00
06/01/2012 8 340 00 8 340 00
12/01/2012 70 000 4 100% 8 340 00 78 340 00 86 680 00
06/01/2013 6 905 00 6 905 00
12/01/2013 75 000 4 200% 6 905 00 81,905 00 88,810 00
06/01/2014 5 330 00 5 330 00
12/01/2014 80 000 4 300% 5 330 00 85 330 00 90 660 00
06/01/2015 3 610 00 3 610 00
12/01/2015 80 000 4 350% 3 610 00 83 610 00 87,220 00
06/01/2016 1 870 00 1,870 00
12/01/2016 85 000 4 400% 1,870 00 86,870 00 88,740 00
775 000 204 700 00 979 700 00 979 700 00
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No IZ
For Meeting Of November 1, 2005
ITEM TITLE An Ordinance of the City of Yakima, Washington, providing for the issuance of
Limited Tax General Obligation (LTGO) Bonds of the City in the principal sum of not to exceed
$825,000 to provide for parks improvements and providing for the form and terms of the bonds
SUBMITTED BY Department of Finance and Budget
CONTACT PERSON / TELEPHONE Rita Anson, Finance Director 575 -607W
Tim Jensen, Treasury Services Of ' 6070
SUMMARY EXPLANATION On July 19, 2005, the City Council approved a joint report from the
Public Works and Finance Departments detailing plans for the construction and funding of several
Parks Capital projects, as listed below The funding for these projects will include a combination
of grants, private contributions and LTGO bond proceeds
• Fourth softball field at Kiwanis Park - $200,000, bond proceeds (Total cost: $550,000)
• Water playgrounds at Washington and Miller parks - $250,000, bond proceeds
• Kiwanis Park skate park - $225,000, bond proceeds (Total cost $300,000)
• Feasibility study of regional aquatics center - $75,000, bond proceeds
Continued on next page
Resolution _ Ordinance X Other (Specify) Draft Preliminary Official Statement
Contract Mail to (name and address) Phone
Funding Source
APPROVED FOR SUBMITTAL. CC;- —V
City Manager
STAFF RECOMMENDATION Pass Ordinance
BOARD /COMMISSION RECOMMENDATION
COUNCIL ACTION Ordinance passed. ORDINANCE NO. 2005-63
Continued from previous page
The proposed LTGO bonds would be ten -year bonds, structured to produce approximately
$750,000 for the above listed projects This ordinance requests approval for a maximum par
amount of up to $825,000 to cover projected project needs, to pay bond issuance costs and to
build in flexibility for changing market conditions and for variations from preliminary estimates
Attached for Councils' consideration is a Bond Ordinance prepared by the City's Bond Counsel,
Preston Gates and Ellis and city staff, and a draft Preliminary Official Statement prepared by
Seattle Northwest Securities in conjunction with city staff Enclosed, you'll also find an estimated
debt amortization schedule These documents identify the terms and conditions of the bond issue
and provide information for the benefit of potential investors such as details about the City of
Yakima, the intended use of the bond proceeds, etc Council should note that the final terms and
conditions of the bond sale will not be known until the bonds are placed on the market and we
have a purchase offer
If approved by Council, staff anticipates placing these bonds for sale in the market on Monday,
November 14, 2005 If results of the bond sale offer are satisfactory to staff, we would return to
Council on Tuesday, November 15, 2005 with the purchase offer for consideration and action
(approval or rejection) by Council If approved, staff anticipates a transaction closing date (at
which time the City would receive the bond proceeds) on or about December 5, 2005
Passage of this Ordinance will authorize staff to take the necessary steps to bring the transaction
to market.
Legal /BD
rev effective 7 /21/92
MEMORANDUM
July 14, 2005
1.
TO. Honorable Mayor, Council Members, and City Manager
FROM. Chris Waarvick, Public Works Director
Rita Anson, Finance Director
SUBJECT Status on Park Improvements and Funding Considerations for Various
Park Projects
The following is a report from the Parks and Recreation Division and Finance Division
on park improvement projects and funding considerations for Council approval.
These actions are a result of the recent Council Study Session discussing future
aquatic needs in the City of Yakima. This discussion falls into two phases; Phase 1
includes Items "A," "B," and "C." Phase If includes Item "D" and "E." Added at this
time are discussions on future capital needs for the Parks and Recreation Division so
Council can see how park improvement projects are related to funding considerations.
Phase I -- $780,000 Council General Obligation Bond
A) Water Playground Improvements for Washington and Miller Pool Sites
With the proposed closure of Washington Pool in 2006, staff recommends that the
new water playground be installed within the pool tank area of the park. In walking
the park site with the contractor, there were many advantages of placing the water
playground within the current pool site:
1. There is already a large deck area, gutter system and water /electrical
access.
2. No trees will have to be removed. The area receives direct sunlight.
3. Martin Luther King Park is relatively small with nice contours. There is
no large flat area with the exception of the pool site.
4. The main pool tank would become the water playground.
5. The small youth tank would be converted to a small Tot Lot for 2 -5 year
olds.
6. There is enough deck space for benches and picnic tables for parents to
watch their children.
A proposed conceptual design is attached (Attachment 1)
A smaller water playground has been designed for Miller Park. Its location would be
in the center of the park The area is relatively flat, with direct sunlight. It appears
that no trees would have to be removed.
A proposed conceptual design is attached (Attachment 2).
Attachment 3(a) and 3(b) are charts showing current water /sewer costs for
Washington and Miller Pools. Although it is difficult to estimate exact utility costs
for the proposed water playgrounds, staff has estimated, based upon percentage of
usage, some calculation to give Council a sense of future utility costs. Our best guess
is that water /sewer costs would be the dollar figure shown in the "25% Usage"
column.
Water Playground Construction Costs
Washington Water Playground — $150,000
Miller Water Playground — $100,000
Total $250,000
Incorporate the $250,000 into a LTGO Bond. Debt Service would come from the dosure of
Eisenhower, Miller, and Washington Pools over the next 10 years.
B) Funding Needs for Completion of the Fourth Ballfield at the Gateway Sports
Complex at Kiwanis Park
Thanks to the hard work of our local State Representatives, the City will receive
$350,000 to begin construction of the fourth ballfield at the Gateway Sports complex.
The exact construction cost is still being analyzed by the contractor, however, the
preliminary estimate is $550,000 Therefore, it is necessary for the City to provide an
additional $200,000 to complete this project. It would be our intent to begin
construction in the fall of 2005 with the field being playable in the fall of 2006.
Gateway Fourth Ballfield Funding
State CTED Funds $ 350,000
LTGO Bond $ 200,000
Total $ 550,000
Incorporate the $200,000 into a LTGO Bond. Debt Service would come from the dosure of
Eisenhower, Miller, and Washington Pools over the next 10 years.
)
2
C) Future Completion of an Eastside Skatepark
Council's focus has been on providing new recreational opportunities for eastside
youth. With the help of the Apple Valley Kiwanis, plans are in the works and dollars
are being raised by the service clubs and private sector to construct a skatepark at
Kiwanis Park
Earlier this month service club members, skaters, and staff interviewed and selected a
firm called Grindline from the Seattle area to begin design work on the park. The
funding for the design phase has been allocated through Community Block Grant
funds. The design of the new skatepark should be complete early next year
Kiwanis Park Skatepark Proposed Construction Costs
City's Contribution $ 225,000 (1)
Private Contributions $ 75,000
Total Proposed Cost $ 300,000
(1) See Section E— Finance Plan
Incorporate the $225,000 into a LTGO Bond. Debt Service would come from net savings from
the dosure of Eisenhower, Miller, and Washington Pools over the next 10 years.
Phase II -- $1.5 Million Council General Obligation Bond
D) Future Completion of Upper Kiwanis Park for Youth Little League Fields
The City intends to apply for an IAC Grant in 2006 for construction of Little League
Fields at Upper Kiwanis. The Rotary, Kiwanis, and Lions Trusts have committed
$200,000 to assist with this effort.
The cost to fully complete Upper Kiwanis is roughly $2 million, staff suggests that
this project be further discussed in regard to possible funding options.
Proposed Resources for Development of Upper Kiwanis
IAC Grant Request $ 300,000
Service Club's Contribution $ 200,000
City's Contribution (Bond) $1,500,000 (1)
Total $2,000,000
(1) See Section E— Finance Plan
3
E) Proposed Funding and Finance Plan for Pools, Ballfields, and Upper Kiwanis
Youth Facilities
Phase I Capital Improvement Projects -- $780,000 Bond
The financing for this multi-phase project is proposed to be accomplished through
two separate debt issuances. The first financing would include: Miller and
Washington construction of water playgrounds - $250,000 (Item A), completion of the
fourth ballfield at Kiwanis Park - $200,000 (Item B), a skatepark at Kiwanis Park, if
approved by Council - $225,000 (Item C) and a feasibility study of an aquatics center,
if approved by Council - $75,000 (Item F) for a total project cost of $750,000 Issuance
costs (excluding insurance as it is likely not available on an issue of this size) are
estimated to be $30,000, making the total par amount of the bonds $780,000 These
would be Councilmatic LTGOs to be issued at the earliest, sometime in September
Debt service for ten years for the total $780,000 bond would be approximately
$101,000 annually (see estimated amortization schedule Attachment 4) and would be
funded by savings from the closure of three swimming pools (Miller, Eisenhower,
and Washington Pools). The first interest payment on the bonds, if we make the
September date, would be due March 1, 2006. Principal payments would be due
each September The estimated total interest cost on the issue would be
approximately 4.66 %.
Phase II Capital Improvement Projects -- $1.5 Million Bond
When the second phase of the process is commenced, i.e. construction of Little
League fields at Kiwanis Park, additional bonds of $1.5 million, plus issuance costs of
approximately $50,000 would be issued, (Item D) The City will issue either Limited
Tax General Obligation Bonds or voted property tax backed bonds (Unlimited Tax
General Obligation Bonds) with estimated annual debt service requirements for 15
years of $148,000 (see estimated amortization schedule Attachment 5).
Debt service funding for the second bond issue has not yet been determined, but it
could come from an increase in the City's in -lieu tax for Parks, a voted property tax, a
voted increase in the utility tax, or some other source to be determined.
Recommendation
Staff proposes that the Phase I C1P for the total project Councilmatic Bond of
$780,000 be initiated immediately and a bond ordinance and Official Statement be
submitted to Council within 45 days.
4
F) City Council Regional Aquatic Center Task Force Committee
Staff recommends that Council establish a Task Force to study the feasibility of a
regional aquatic center Council Members Neil McClure and Dave Edler have
expressed their desire to co -chair the committee that would consist of an appropriate
number of community members.
The mission of the Regional Aquatic Task Force is to evaluate current aquatic
facilities and programs, identify community aquatic needs, work with a consultant to
study the feasibility of a regional aquatic center and identify financing strategies and
options. The committee would meet as needed over the next 12 -18 months and make
their recommendation to the Yakima City Council. Staff recommends appointment of
committee members by early fall.
During the 2006 Budget presentations, staff will bring forward a policy issue to hire
an aquatic consultant to work with staff and the Aquatic Task Force on a feasibility
study The Finance Plan (Item "E ") includes up to $75,000 to conduct the Feasibility
Study for a Regional Aquatic Center
G) Motion Authorizing $17,000 from City's Contingency Fund to Repair Franklin
Pool
Plumbing repairs were necessary at Franklin Pool prior to opening summer season.
The cost for repair and water usage is $17,000. Staff recommends Council approval
payment of $17,000 from the City's Contingency Fund to pay for unanticipated pool
repairs.
Summary
Staff respectfully requests Council action on the following items:
1) Approve Phase I projects (Items "A," "B," and "C ") which include funding for
the Water Playgrounds at Washington/MLK Park, Miller Park, and the Eastside
Skatepark. Approve funding for the completion of the fourth Ballfield at the
Gateway Sports Complex.
2) Direct staff to bring back legislation to issue a Councilmatic Bond for $780,000
funding the projects found above in Summary Item #1 and the $75,000 for the
proposed 2006 Regional Aquatics Center Study policy issue.
3) Approve motion to create an Aquatic Task Force with Council Members Edler
and McClure co-chairing (Item F).
4) Authorize by Council Motion approval of $17,000 from the City's Contingency
Fund for necessary repairs to Franklin Pool (Item G).
5