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HomeMy WebLinkAbout1986-2967 ISSUANCE OF GENERAL OBLIGATION BONDS ORDINANCE NO. 2967 AN ORDINANCE of the City Council of the City of Yakima, Washington, providing for the issuance and sale of unlimited tax general obligation bonds of the City in the principal sum of $5,000,000 for the purpose of providing funds to pay the cost of acquiring, constructing and installing improvements to certain City streets; providing the date, form, terms and maturities of said bonds; providing for the disposition of the proceeds of sale of such bonds; providing for the annual levy of taxes to pay the principal of and interest on said bonds; and providing for the sale thereof. WHEREAS, the City of Yakima, Washington (the "City") by Resolution No. D-5211, adopted on January 21, 1986, has found it necessary for the public welfare and for the benefit of the residents of the City that a plan for improvements to certain City streets be implemented (the "Project"); and WHEREAS, at an election held on April 8, 1986, the voters of the City authorized issuance of unlimited tax levy general obliga- tion bonds in the principal amount of $5,000,000 (the "Bonds") to pay the costs of the Project; and WHEREAS, the City Council has received an offer to purchase the Bonds from Seattle-Northwest Securities Corporation pursuant to the terms and conditions contained herein and desires to accept such offer; and WHEREAS, the City Council finds that it is necessary for the public welfare to declare an emergency and have this ordinance take effect immediately because there is legislation pending before the United States Congress that is expected to be effective by August 1, 1986 and that, if adopted, may impose costly restrictions on the City's ability to invest bond proceeds and market its bonds; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF 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: (a) "Bond Fund" means the "City of Yakima Unlimited Tax General Obligation Bond Fund, 1986" created by Section 4 of this ordinance; (b) "Bond Register" means the books or records main- tained by the Bond Registrar containing the name and mailing address of the owner of each Bond or nominee of such owner and the principal amount and number of Bonds held by each owner or nominee; (c) "Bond Registrar" means the fiscal agencies of the State of Washington, currently Seattle-First National Bank, Seattle, Washington, and J. Henry Schroder Bank & Trust Company, New York, New York, or any fiscal agent of the State of Washington that may hereafter be designated as successor to such banks; (d) "Bonds" means the $5,000,000 principal amount of the City of Yakima, Washington, Unlimited Tax General Obligation Bonds, 1986, issued pursuant to this ordinance for the purpose of providing part or all of the funds to pay the costs of carrying out the Project; (e) "Capital Improvements Fund" means the City's Cumulative Reserve Fund for Capital Improvements, Fund No. 392; (f) "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; (g) "Council" means the general legislative authority of the City as the same shall be duly and regularly constituted from time to time; -2- NMN268 86/06/26 (h) "Finance and Budget Director" means the City's director of finance and budget or any successor to his/her func- • tions and duties; (i) "Project" means the construction, acquisition and installation of the improvements to City streets as described in Resolution No. D-5211 of the City. SECTION 2. Authorization of Bonds. The City hereby autho- rizes the issuance and sale of the Bonds in the aggregate prin- cipal amount of $5,000,000 to provide funds to pay part of the cost of acquiring, constructing and equipping the Project, includ- ing all costs of engineering, architectural, planning, financial, legal and other services lawfully incurred incident thereto and to the issuance of the Bonds. The Bonds shall be general obligations of the City; shall be designated "City of Yakima, Washington, Unlimited Tax General Obligation Bonds, 1986," shall be dated July 1, 1986; shall be issued in fully registered form in the denomination of $5,000 or any integral multiples thereof, provided that no Bond shall represent more than one maturity; shall be numbered separately and in the manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; shall bear interest from their date, until the . Bonds have been paid or their payment duly provided for, at the following rates per annum payable on June 1, 1987, and semiannu- ally thereafter on the first day of each June and December; and shall mature on December 1 of each year as follows: Principal Maturity Year Amount Interest Rate 1987 $ 25,000 4.75% 1988 195,000 5.30 111 1989 225,000 255,000 5.80 1990 6.20 1991 290,000 6.40 1992 325,000 6.65 1993 365,000 6.90 1994 415,000 7.10 -3- NMN268 86/06/26 1995 460,000 7.30 1996 510,000 7.50 1997 580,000 7.60 1998 645,000 7.70 411- 1999 710,000 7.80 The City hereby specifies and adopts the system of registra- tion for the Bonds approved by the State Finance Committee, and the fiscal agencies of the State of Washington in the cities of Seattle, Washington, and New York, New York, shall act as authen- ticating trustee, transfer agent, paying agent and registrar for the Bonds (collectively, the "Bond Registrar"). Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be paid by check or draft of the Bond Registrar mailed (on the date such interest is due) to the registered owners or nominees at the addresses appearing on the Bond Register on the fifteenth (15th) day of the month preceding each interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds to the Bond Registrar by the registered owners or nominees at the principal offices of either of the fiscal agencies of the State of Washington in the cities of Seattle, Washington, or New York, New York. The Bonds may be transferred only on the Bond Register maintained by the Bond Registrar for that purpose upon the sur- render thereof by the registered owner or nominee or his/her duly authorized agent and only if endorsed in the manner provided thereon, and thereupon a new fully registered Bond of like prin- cipal amount, maturity and interest rate shall be issued to the transferee in exchange therefor. Such transfer shall be without cost to the registered owner or transferee. The City may deem the person in whose name each Bond is registered to be the absolute -4- NMN268 86/06/26 owner thereof for the purpose of receiving payment of the prin- cipal of and interest on such Bonds and for any and all other purposes whatsoever. Upon surrender thereof to the Bond Registrar, the Bonds are interchangeable for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rates and maturities. SECTION 3. Optional Redemption. The City hereby reserves the right to redeem the Bonds maturing on or after December 1, 1997 prior to their maturity dates, in whole or in part in inverse chronological order and by lot within a maturity at par plus accrued interest to the date of redemption, on December 1, 1996, and on any interest payment date thereafter. SECTION 4. Creation of Bond Fund and Provision for Tax Levy Payments. A special fund of the City known as the "City of Yakima Unlimited Tax General Obligation Bond Redemption Fund, 1986" (the "Bond Fund"), is hereby authorized and directed to be created in the office of the Finance and Budget Director. The Bond Fund shall be drawn upon for the sole purpose of paying the principal of and interest on the Bonds. The City hereby irrevocably covenants, for as long as any of the Bonds are outstanding and unpaid, that each year it will include in its budget and levy an ad valorem tax, without limita- tion as to rate or amount, upon all the property within the City subject to taxation in an amount which will be sufficient, together with all other revenues and money of the City which may legally be used and which the City may apply for such purposes, to pay the principal of and interest on the Bonds as the same shall 111 become due. All of such taxes and any of such other money so collected shall be paid into the Bond Fund. None of the money in the Bond Fund shall be used for any other purpose than the payment -5- NMN268 86/06/26 of the principal of and interest on the Bonds. Money in the Bond Fund not needed to pay the interest or principal next coming due may temporarily be deposited in such institutions or invested in such obligations as may be lawful for the investment of City money. Any interest or profit from the investment of such money shall be deposited in the Bond Fund. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of said taxes and for the prompt payment of the principal of and interest on the Bonds as the same shall become due. SECTION 5. Defeasance. In the event that money and/or "Government Obligations," as such Obligations are now or may hereafter be defined in Ch. 39.53 RCW, maturing at such time or times and bearing interest to be earned thereon in amounts suffi- cient to redeem and retire the Bonds, or any of them, in accor- dance with their terms, are set aside in a special account to effect such redemption or retirement and such money and the principal of and interest on such Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds so provided for and such Bonds shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive the funds so set aside and pledged, and such Bonds shall be deemed not to be outstanding hereunder. SECTION 6. Arbitrage Covenant. The City hereby covenants and agrees with the owners and holders of the Bonds for as long as any of the same remain outstanding that it will not make use of the proceeds of sale of the Bonds or any other funds of the City 111 which may be deemed to be proceeds of the Bonds pursuant to Section 103 of the Internal Revenue Code and the applicable -6- NMN268 86/06/26 regulations thereunder, which, if such use had been reasonably expected on the date of delivery of the Bonds to the initial 111 purchaser thereof, would have caused the Bonds to be "arbitrage bonds" within the meaning of said section and said regulations. The City will comply with the requirements of subsection (c) of Section 103 of the Internal Revenue Code and the applicable regulations thereunder throughout the term of the Bonds. SECTION 7. Lost or Destroyed Bonds. In case the Bonds or any of them shall be lost, stolen or destroyed, the Bond Registrar may execute and deliver a new Bond or Bonds of like amount, date, and tenor to the registered owner thereof upon the owner paying the expenses and charges of the City and the Bond Registrar in connection therewith and upon his filing with the Finance and Budget Director and the Bond Registrar evidence satisfactory to said Finance and Budget Director and Bond Registrar that such Bond or Bonds were actually lost, stolen or destroyed and of his/her ownership thereof, and upon furnishing the City and Bond Registrar with indemnity satisfactory to the Finance and Budget Director and Bond Registrar. SECTION 8. Form of the Bonds. The Bonds shall be in sub- stantially the following form: UNITED STATES OF AMERICA NO. STATE OF WASHINGTON CITY OF YAKIMA UNLIMITED TAX GENERAL OBLIGATION BOND, 1986 INTEREST RATE: MATURITY DATE: CUSIP NO: SEE REVERSE SIDE FOR CERTAIN DEFINITIONS REGISTERED OWNER: -7- NMN268 86/06/26 PRINCIPAL AMOUNT: DOLLARS The City of Yakima, Washington, a municipal corporation organized and existing under and by virtue of the laws and Consti- tution of the State of Washington (the "City"), hereby acknowl- edges 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, 1987, 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. Interest on this bond is payable by check or draft of the Bond Registrar mailed (on the date such interest is due) to the Registered Owner hereof at the address appearing on the records maintained by the Bond Registrar as of the fifteenth (15th) day of the month preceding the interest payment date. Principal shall be paid to the registered owner hereof upon presentation and surrender of this bond at the prin- cipal offices of either of the fiscal agencies of the State of Washington in Seattle, Washington or New York, New York (col- lectively, the "Bond Registrar"). Reference is hereby made to additional provisions of this bond set forth on the reverse side hereof and such additional provisions shall for all purposes have the same effect as if set forth in this space. Reference also is made to the Bond Ordinance (hereinafter defined) 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 the Bond 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 (as hereinafter defined) until the Certificate of Authentication hereon shall have been manually signed by the Bond Registrar. The City hereby irrevocably covenants and agrees with the owner of this bond that it will include in its annual budget and levy taxes annually, without limitation as to rate or amount, amounts sufficient, together with all other money legally avail- able therefor, to pay the principal of and interest on this bond as the same shall become due. All of such taxes so collected and any of such other money shall be paid into the Bond Fund, and none of the money therein shall be used for any other purpose than the payment of principal of and interest on the bonds of this issue. 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. 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 and resolutions 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 -8- NMN268 86/06/26 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 facsimile signature of the Mayor, to be attested by the facsimile signature of the Clerk of the City, and a facsimile of the seal of the City to be reproduced or impressed hereon, as of this first day of July, 1986. CITY OF YAKIMA, WASHINGTON By Mayor ATTEST: Clerk of the City CERTIFICATE OF AUTHENTICATION Date of Authentication: This bond is one of the bonds described in the within- referenced Ordinance No. of the City of Yakima, Washington, and is one of the Unlimited Tax General Obligation Bonds, 1986, dated July 1, 1986, of such city. WASHINGTON STATE FISCAL AGENCY As Bond Registrar By Authorized Officer ADDITIONAL BOND PROVISIONS This bond is one of an issue of unlimited tax general obliga- tion 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 $5,000,000, issued pursuant to Ordinance No. of the City, passed July 1, 1986 (the "Bond Ordinance"), to provide funds to finance certain improvements to City streets. The City has reserved the right to call the bonds maturing on and after December 1, 1997 for redemption prior to their maturity date, in whole or in part in inverse chronological order and by lot within a maturity at par plus accrued interest to the date of • redemption, on December 1, 1996 and on any interest payment date thereafter. 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 ordinance authorizing their issuance. -9- NMN268 86/06/26 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 inter- changeable 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 main- tained 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 prin- cipal 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. The following abbreviations, when used in the inscription on the face of the within bond, shall be construed as though they were written out in full according to applicable laws or regulations. TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UNIF GIFT MIN ACT - Custodian (Cust) (Minor) under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used although not listed above. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF TRANSFEREE / / (Please print or typewrite name and address, including zip code of Transferee) the within bond and all rights thereunder and does hereby irrevoc- ably constitute and appoint of , or its successor, as Agent to transfer said bond on the books kept by the Bond Register for -10- NMN268 86/06/26 • registration thereof, with full power of substitution in the premises. • DATED: , 19 SIGNATURE GUARANTEED: NOTE: The signature of this Assign- ment must correspond with the name of the registered owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. SECTION 9. Execution of the Bonds. The Bonds shall be signed on behalf of the City by the manual or facsimile signature of the Mayor, shall be attested by the manual or facsimile signa- ture of the City Clerk, and shall have the official corporate seal of the City impressed or imprinted thereon. Only such Bonds as shall bear thereon a Certificate of Authentication in the form hereinbefore recited, 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 hereunder 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 -11- NMN268 86/06/26 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 0 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 10. 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 which shall at all times be open to inspection by the City. The Bond Registrar is authorized, on behalf of the City, to authenti- cate 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 representa- tions contained in the Certificate of Authentication on the Bonds. The Bond Registrar may become the owner of any Bonds with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depositary for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of Bond owners. SECTION 11. Application of Proceeds of Bonds. The City has 'heretofore created the Capital Improvements Fund. At the time of delivery of the Bonds, the proceeds of the Bonds shall be deposited as follows: (a) The accrued interest to the date of delivery shall 4111 be deposited in the Bond Fund and used to pay the interest on the Bonds coming due on June 1, 1987. (b) The remainder of the proceeds shall be deposited into the Capital Improvements Fund and used to pay the costs of -12- NMN268 86/06/26 acquisition, construction, and installation of the Project, including all costs of legal, engineering, architectural, inspec- tion, and supervision services incidental to such improvements or expenses incidental to the issuance of the Bonds, and for the purpose of reimbursing any fund or funds of the City for which advances may have been made to pay any such costs. Money remaining in the Capital Improvements Fund after all of the Bonds have been paid may be used to pay costs of other legally authorized expenditures of the City or shall be deposited in the Bond Fund. Money in the Capital Improvements Fund may be invested as permitted by law and in a manner consistent with this ordi- nance. All interest earned and profits derived from such invest- ments shall be retained in and become a part of the Fund from which such investments were made. SECTION 12. Sale of the Bonds. The Bonds shall be sold to Seattle-Northwest Securities Corporation, Seattle, Washington, at the terms and under the conditions set forth herein and in its offer to purchase the Bonds, dated July 1, 1986. Said offer is hereby approved, confirmed and accepted. The Finance and Budget Director is hereby authorized and directed to execute and deliver such offer on behalf of the City. The appropriate City officials, agents and representatives are hereby authorized and directed to do everything necessary for the execution and delivery of the Bonds, and for the proper use and application of the proceeds of the sale thereof. The Finance and Budget Director is hereby authorized and directed to review and approve on behalf of the City an official statement for the • issuance of the Bonds, to make such changes as he deems appropri- ate, and to execute and deliver such official statement on behalf of the City. -13- NMN268 86/06/26 SECTION 13. Assessed Value and Existing Bonded Debt. The actual value of the taxable property within the City as ascer- tained by the last preceding assessment for City purposes is $1,320,117,440. The principal amount of the outstanding general obligation indebtedness of the City, whether voted or nonvoted, including the principal amount of the Bonds, is $7,052,189 as of March 31, 1986. SECTION 14. Special Tax Covenant. The City shall comply with the provisions of HR 3838, as adopted by the House of Repre- sentatives on December 17, 1985, or any other federal tax legis- lation that may be enacted into law which are applicable to the Bonds unless, in the written opinion of nationally-recognized bond counsel to the City, such compliance is not required in order to maintain the exemption of the interest on the Bonds from federal income taxation. SECTION 15. Severability. If any one or more of the cove- nants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or cove- nants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds. SECTION 16. Finding of Emergengy and Effective Date. This ordinance is one to provide for the immediate preservation of the public peace, property, health, safety and welfare of the people of the City of Yakima and an emergency is hereby ordered to exist, • and this ordinance shall be in full force and effect immediately upon its passage, approval and publication as provided by law and the City Charter. -14- NMN268 86/06/26 PASSED by the Council of the City of Yakima, Washington, at a regular meeting thereof, this 1st day of July, 1986. 411 CITY OF YAKIMA, WASHINGTON By 1 .dir 40);_ii„,„,,, 1cui Mayor Ili ATTEST: . . ., Amp. w ,ACA __, N ss.1 Acting City Cl ,1— PROVED AS TO FORM: City Attorney 410 -15- NMN268 86/06/26