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HomeMy WebLinkAbout1985-2919 GENERAL OBLIGATION BONDS ORDINANCE NO. 29 1 9 AN ORDINANCE of the City Council of the City of Yakima, Washington, providing for the issuance and sale of limited tax general obligation bonds of the City in the principal sum of $400,000, for the purpose of providing funds to pay the cost of acquiring, constructing and installing improvements to the City's irrigation facilities; 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") is situated within or served by irrigation projects previously owned or operated by water user's associations or corporations; WHEREAS, the City has acquired such water rights and has constructed and acquired systems to furnish water for irrigation proposed within the City pursuant to RCW 35.92.220. WHEREAS, the water so used for irrigation purposes is appur- tenant to the land located within the City; WHEREAS, the City is authorized by law to issue its general obligation bonds for the corporate purposes of the City, without a vote of the people, where the amount of the bonds, when added to the City's existing nonvoter approved indebtedness, does not exceed the amount of indebtedness Chapter 39.36 RCW authorizes the City to incur without the assent of the voters; WHEREAS, the City may issue the bonds described herein without exceeding the amount of indebtedness Chapter 39.36 RCW authorizes the City to incur without a vote of the people; WHEREAS, by Ordinance No. 2823, passed December 4, 1984, the City issued its Limited Tax General Obligation Bond Anticipation • Notes, 1985 (the "Notes") in the aggregate principal amount of $450,000 for the purpose of providing funds to pay part of the cost of acquiring, constructing and installing improvements to the City's irrigation facilities; and WHEREAS, the Notes mature on January 7, 1986; and WHEREAS, in order to provide the funds required to retire the Notes, it is deemed necessary and advisable that the City issue and sell its limited tax levy general obligation bonds in the principal amount of $400,000; and WHEREAS, the City Council has received an offer to purchase said bonds from the Foster & Marshall Division of Shearson Lehman Brothers, Inc. pursuant to the terms and conditions contained herein and desires to accept such offer; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YAKIMA, WASHINGTON, DO ORDAIN 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 Limited Tax General Obligation Bond Redemption Fund, 1985" created by Sec- tion 5 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 nomi- nee; (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 $400,000 principal amount of the City of Yakima, Washington, Limited Tax General Obligation Bonds, -2- JG196 85/11/20 1985, issued pursuant to this ordinance for the purpose of provid- ing funds to pay the Notes as they mature; (e) "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; (f) "Council" means the general legislative authority of the City as the same shall be duly and regularly constituted from time to time; (g) "Finance and Budget Director" means the City's director of finance and budget or any successor to his/her func- tions and duties; (h) "Notes" means the Limited Tax General Obligation Bond Anticipation Notes of the City in the aggregate principal amount •of $450,000 issued on January 7, 1985 pursuant to the Note Ordinance to provide short-term financing for the Project; (i) "Note Fund" means the "City of Yakima, Washington, General Obligation Bond Anticipation Note Redemption Fund, 1984," created by Section 7 of the Note Ordinance; (j) "Note Ordinance" means Ordinance No. 2823 of the City passed December 4, 1984. (k) "Project" means the construction, acquisition and installation of the replacement diversion dam and diversion control structure specified, authorized and ordered by Section 2 of the Note Ordinance. SECTION 2. Authorization of Bonds. The City hereby autho- rizes the issuance and sale of the Bonds in the aggregate prin- cipal amount of $400,000 to provide the funds necessary to pay the Notes and 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, 1985," shall be dated December 1, 1985; shall be -3- JG196 85/11/20 issued in fully registered form in the denomination of $5,000 or an integral multiples thereof, provided that no Bond shall repre- sent more than one maturity; shall be numbered separately and in the manner and with any additional designation as the Bond Regis- trar 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 January 1, 1987, and semiannually thereafter on the first day of each July and January; and shall mature on January 1 of each year as follows: Principal Maturity Year Amount Interest Rate 1988 $ 15,000 6.75% 1989 15,000 7.00% 1990 15,000 7.20% 1991 20,000 7.40% 1992 20,000 7.60% 1993 20,000 7.80% 1994 25,000 8.00% 1995 25,000 8.20% 1996 25,000 8.40% 1997 30,000 8.60% 1998 30,000 8.80% 1999 35,000 8.90% 2000 40,000 9.00% 2001 40,000 9.00% 2002 45,000 9.00% 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) -4- JG196 85/11/26 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 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. Redemption. The City does not reserve the right to redeem the Bonds maturing prior January 1, 1995. The City reserves the right to redeem the Bonds maturing January 1, 1995 and after, in whole or in part in inverse numerical order and by lot within a maturity on January 1, 1994 or any interest payment date thereafter, at par plus accrued interest to the date of redemption. • SECTION 4. Creation of Bond Fund and Provision for Tax Levy Payments. A special fund of the City known as the "City of Yakima -5- JG196 85/11/20 • Limited Tax General Obligation Bond Redemption Fund, 1985" (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 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 an ad valorem tax upon all the property within the City subject to taxation in an amount which will be sufficient, together with all other revenues and moneys 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 become due. All of such taxes and any of such other moneys so collected shall be paid into the Bond Fund. None of the moneys in the Bond Fund shall be used for any other purpose than the payment of the principal of and interest on the Bonds. Moneys 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 moneys. Any interests or profit from the investment of such moneys shall be deposited in the Bond Fund. 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 permit- ted 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. • -6- JG196 85/11/20 • • 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 in accordance with their terms, are set aside in a special account to effect such redemp- tion or retirement and such money and the principal of and inter- est 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 which may be deemed to be proceeds of the Bonds pursuant to Section 103 of the Internal Revenue Code and the applicable regulations thereunder which, if such use had been reasonably expected on the date of delivery of the Bonds to the initial 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. -7- JG196 85/11/20 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's paying 41 the expenses and charges of the City and the Bond Registrar in connection therewith and upon his filing with the Treasurer and the Bond Registrar evidence satisfactory to said Treasurer 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 LIMITED TAX GENERAL OBLIGATION BOND, 1985 INTEREST RATE: MATURITY DATE: CUSIP NO: SEE REVERSE SIDE FOR CERTAIN DEFINITIONS REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS The City of Yakima, Washington, a municipal corporation organized and existing under and by virtue of 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 January 1, 1987, and semiannually thereafter on each July 1 and January 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 111 on this bond is payable by check or draft of the Bond Registrar -8- JG196 85/11/20 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 pre- ceding the interest payment date. Principal shall be paid to the registered owner hereof upon presentation and surrender of this bond at the principal offices of either of the fiscal agencies of the State of Washington in Seattle, Washington or New York, New York (collectively, 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 the bonds 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 (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 within and as a part of the tax levy permitted to cities without a vote of the electorate, amounts sufficient, together with all other moneys legally available therefor, to pay the principal of and interest on the 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. 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 facsimile signature of the Mayor, to be attested by the [manual/ fascimile] signature of the Clerk of the City, and a [manual/ facsimile] of the seal of the City to be reproduced or impressed hereon, as of this day of December, 1985. CITY OF YAKI /, WASH GTON, BY OA 1 /I Mayor ATTEST: Clerk of the City -9- JG196 85/11/20 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 Limited Tax General Obligation Bonds, 1985, dated December 1, 1985, of such city. WASHINGTON STATE FISCAL AGENCY As Bond Registrar By Authorized Officer ADDITIONAL BOND PROVISIONS This bond is one of an issue of limited 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 $400,000, issued pursuant to Ordinance No. of the City, passed November 26, 1985 (the "Bond Ordi- nance"), to provide funds to retire the City of Yakima, Washington Limited Tax General Obligation Bond Anticipation Notes, which Notes were issued to provide funds to pay for the acquisition, construction and installation of irrigation facilities of the City. The City may redeem the bonds of this issue maturing January 1, 1995 and after in whole or in part in inverse numeri- cal order and by lot within a maturity on January 1, 1994 or on any interest payment date thereafter at par, plus accrued interest to the date of redemption. 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. 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 the bond and for any and all other purposes whatsoever. -10- JG196 85/11/20 . . 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 regula- tions. 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 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. 111 -11- JG196 85/11/20 , . 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 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 .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 -12- JG195 85/11/20 the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordi- nance. 110 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 Note 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 be deposited to the Bond Fund and used to pay the interest on the Bonds coming due on January 1, 1987. (b) The remainder of the proceeds shall be deposited into the Note Fund and used to pay the Notes when they mature and all costs incidental thereto. Moneys remaining in the Note Fund after all of the Notes 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. Moneys in the Note Fund may be invested as permitted by law and in a manner consistent with this Ordinance. All interest earned and profits derived from such investments 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 the Foster & Marshall Division of Shearson Lehman Brothers, Inc., Seattle, Washington, at the terms and under the conditions set 411 forth herein and in its offer to purchase the Bonds, dated -13- JG196 85/11/20 • November 26, 1985. 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. actual value 13. the taxable Existing Bonded aec e • tained by the last preceding assessment for City purposes is $1,299,011,203. The principal amount of the outstanding nonvoted general obligation indebtedness of the City adjusted to include the amount of the Bonds is $1,600,364 as of November 26, 1985. : The total amount of outstanding general obligation bonded indebt- edness of the City, whether voted or nonvoted, including the principal amount of the Bonds, as of November,26, 1985, is $2,999,074. SECTION 14. Severability. If any one or more of the cove,- hants 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. • -14- JG196 85/11/20 • SECTION 15. Effective Date. This ordinance is immediately necessary for the support of City government and its existing public institutions and shall take effect and be in force thirty 410 days from and, after its passage, approval and publication as required by law. PASSED by the City Council of the City of Yakima, Washington, • at a regular open public meeting thereof, this 26th day of November, 1985. CITY OF YAKI , WASHINGTON i N t Q A1 flUdi OfP Assist Mayor 4 1 ATTEST: 'City_ Clerk NOV 3-0 1985 DU 3 1 1985 41, -15- JG196 85/11/20