HomeMy WebLinkAboutCOW 2011-09-26 Item 4E - Ordinance - Refunding 2003 Limited Tax GO BondsCOUNCIL AGENDA SYNOPSIS
Initials ITEMNO.
Meeting Date Prepared by Mayor's review Council review
09/26/11 PMT/
10/03/11 PM i 4.E.
ITEM INFORMATION
ICAS NUMBI-R: 11-096
S TAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGI -,NDA DATE 09/26/11
AGI I ;NrTTTLr. Limited General Obligation Bonds 2003 Refunding
CxriI D1,16-ilosion Motion Resolution Ordinance Bid.+Pard Public Hearing ❑Other
lltg Date 09126111 111 g Date 10103111 Altg Dale 117tg Date 111tq Date Altg Date Mtg Date
SPONSOR Council lklayor HR DCD Finance Fire IT P6-R Polic•e PIY/
SPONSOR'S The City issued $12,050,000 of limited tax general obligation bonds in 2003 to finance
Sunrn�,vzY arterial street improvements and the construction of the golf course clubhouse. The
proposed refunding would defease the bonds outstanding at December 1, 2013, the
earliest call date. The savings from the refunding is estimated at $354,651.95 or 4.878 of
the refunded bonds with $281,442.17 realized from the arterial street fund portion of the
bond issue and $136,209.78 realized from the golf course portion of the bond issue.
S RI,,VII,WI,D BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
I
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 09/20/11 COMMITTEE CHAIR: KATHY HOUGARDY
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance
Co mN- I"ITI" ;h; For Discussion; Forward to Committee of the Whole
COST IMPACT FUND SOURCE
EXPI ,NDI'I'URI? Rl,c )t llZI ;D AMOUNT BUDGETED APPROPRIATION REQUIRED
$0 $0.00 $0
Fund Source:
Corrnnenlss.
MTG. DATE
09/26/11
10/03/11
MTG. DATE
09/26/11
10/03/11
RECORD OF COUNCIL ACTION
ATTACHMENTS
Informational Memorandum dated 09/14/11; revised 9/21/11 after FS Meeting
Draft Bond Refunding Ordinance
Summary of Refunding Results Proposed Refunding of 2003A LTGO Bonds
Summary of Refunding Results Proposed Refunding of 2003A LTGO Bonds Street only
Minutes from the Finance and Safety Committee Meeting of 9/20/11 were not available
57
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City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance Safety Committee
FROM: Peggy McCarthy, Acting Finance Director
DATE: September 14, 2011
(Revised September 21, 2011 after FS Meeting new text is underlined)
SUBJECT: Refunding of Limited Tax General Obligation Bonds 2003
ISSUE
Approve the refunding of Limited Tax General Obligation Bonds 2003.
BACKGROUND
The City issued $12,050,000 of limited tax general obligation bonds in 2003 to finance
Arterial Street Fund -104 capital improvements, the South Park Bridge transfer and various
other projects, and to finance the construction of the golf course clubhouse. Of the total
issue, $6,277,500 was allocated to the Arterial Street Fund 104 and $5,772,500 was
allocated to the Golf Course Fund 411. The outstanding balance of these bonds is currently
$8,930,000 with $5,691,175 owing on the arterial street allocation and $3,238,825 owing on
the golf course allocation. Since these bonds cannot be called, or redeemed, until
December 1, 2013, the refunding bonds would defease, or set aside sufficient funds from
the refunding proceeds, to pay -off the bonds remaining at December 1, 2013. At December
1, 2013, $7,270,000 of the bond issue will be outstanding with $4,633,241 of the arterial
street allocation outstanding and $2,636,759 of the golf course allocation outstanding. If the
bonds are refunded, the new bonds would not be available for early redemption until
December 1, 2022. The net benefit to the Citv of this refundina is estimated at $354.651
with the Arterial Street Fund portion receivinq $218.442.17 of the savinas and the Golf
Course Fund receivina $136.209.78 of the savinas.
DISCUSSION
The City will benefit financially by refunding these bonds. If early redemption of the golf
course bond allocation is being considered, the arterial street portion of the bond issue
could be refunded now and the golf course portion of the bond issue could be redeemed on
December 1, 2013, the earliest call date. The outstanding balance of the golf course
portion of the bond issue will be $2,636,759 on December 1, 2013. The Citv's financial
advisor has prepared a "Summary of Refundina Results" analvsis that demonstrates the
financina structure and savinas if the refundina includes both the Arterial Street Fund and
the Golf Course Fund portions of the bond issue. A similar analvsis is provided that
Provides the financial information for a refundina that includes only the Arterial Street Fund
Portion of the bond issue. Both of these analvses are included as attachments to this
memo.
W \2011 Info Memos \Refunding of GO Bonds 2003 Funds 209 411 REVISEd for COW.docx
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INFORMATIONAL MEMO
Page 2
RECOMMENDATION
The Council is being asked to approve the Refunding of the 2003 General Obligation bonds
and consider this item at the September 26, 2011 Committee of the Whole meeting and the
subsequent October 3, 2011 Regular Meeting.
ATTACHMENTS
-Draft of bond ordinance.
Summary of Refunding Results Proposed Refundina of 2003A LTGO Bonds
Summary of Refundinq Results Proposed Refundina of 2003A LTGO Bonds, Refunds
Street portion only
Revised pursuant to discussion at the September 19 Finance and Safety Committee meeting and updated
information obtained thereafter.
WA2011 Into Memos\Refunding of GO Bonds 2003 Funds 209 411 REVISEd for COW.docx
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, RELATING TO CONTRACTING INDEBTEDNESS;
PROVIDING FOR THE ISSUANCE, SALE AND DELIVERY OF NOT TO
EXCEED $8,000,000 PAR VALUE OF LIMITED TAX GENERAL
OBLIGATION REFUNDING BONDS, 2011, TO PROVIDE THE FUNDS
WITH WHICH TO CARRY OUT AN ADVANCE REFUNDING OF THE
CALLABLE PORTION OF THE CITY'S LIMITED TAX GENERAL
OBLIGATION BONDS, SERIES 2003A, AND TO PAY THE
ADMINISTRATIVE COSTS OF THE REFUNDING AND THE COSTS OF
ISSUANCE AND SALE OF THE BONDS; AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH U.S. BANK NATIONAL
ASSOCIATION, AS REFUNDING TRUSTEE; PROVIDING FOR THE
CALL, PAYMENT AND REDEMPTION OF THE OUTSTANDING BONDS
TO BE REFUNDED; FIXING CERTAIN TERMS AND COVENANTS OF
THE BONDS, AND DELEGATING THE RESPONSIBILITY FOR
CERTAIN OTHER FINAL TERMS OF THE BONDS; PROVIDING FOR
RELATED MATTERS; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to Ordinance No. 2027, the City heretofore issued the 2003A
Bonds, and by that ordinance reserved the right to redeem the 2003A Bonds prior to
their maturity on December 1, 2013, at a price of par plus accrued interest to the date
fixed for redemption; and
WHEREAS, there are presently outstanding $7,270,000 par value of 2003A Bonds
maturing on December 1 of each of the years 2014 through 2021, inclusive, and 2023,
and bearing various interest rates from 3.95% to 4.65% (the "Refunded Bonds and
WHEREAS, after due consideration, it appears to the City Council that the
Refunded Bonds may be refunded by the issuance and sale of the limited tax general
obligation refunding bonds authorized herein so that a substantial savings will be
effected by the difference between the principal and interest cost over the life of the
Bonds and the principal and interest cost over the life of the Refunded Bonds but for
such refunding, which refunding will be effected by carrying out the Refunding Plan; and
.WHEREAS, to effect that refunding in the manner that will be most advantageous to
the City it is found necessary and advisable that certain Acquired Obligations bearing
interest and maturing at such time or times as necessary to accomplish the refunding as
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aforesaid be purchased out of a portion of the proceeds of the Bonds and other money
of the City, if necessary; and
WHEREAS, the City Council deems it to be in the best interests of the City to issue
and sell the Bonds to pay the cost of carrying out the Refunding Plan;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following words shall have
the following meanings:
"2003A Bonds" means the City's $9,850,000 par value Limited Tax General
Obligation Bonds, Series 2003A, issued for the purpose of providing funds with which to
reimburse itself for a part of the cost of transferring certain property between the City and
King County, to pay or reimburse itself for a part of the cost of making various arterial
street improvements, to redeem the City's outstanding Limited Tax General Obligation
Bond Anticipation Note, 2000 (Foster Golf Course) for other City purposes, and to pay the
costs of issuance of the Series 2003A Bonds.
"Acquired Obligations" means those United States Treasury Certificates of
Indebtedness, Notes, and Bonds -State and Local Government Series and other direct,
noncallable obligations of the United States of America purchased to accomplish the
refunding of the Refunded Bonds as authorized by this ordinance.
"Authorized Denomination" means $5,000 or any integral multiple thereof within a
maturity.
"Beneficial Owner" means the owner of any beneficial interests in the Bonds.
"Bond Purchase Contract" means a purchase contract presented to the City by the
Underwriter and offering to purchase the Bonds under the terms and conditions
provided therein.
"Bond Fund" means the Limited Tax General Obligation Refunding Bond Fund,
2011, created by this ordinance for the payment of the Bonds.
"Bond Register" means the books or records maintained by the Bond Registrar for
the purpose of identifying ownership of the Bonds.
"Bond Registrar" means the Fiscal Agent.
"Bonds" means not to exceed $8,000,000 par value Limited Tax General Obligation
Refunding Bonds, 2011, of the City issued pursuant to and for the purposes provided in
this ordinance.
"City" means the City of Tukwila, Washington, a municipal corporation duly
organized and existing under the laws of the State.
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"City Council" means the governing body of the City, acting in its legislative
capacity.
"Code" means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
"DTC" means The Depository Trust Company, New York, New York.
"Finance Director" means the Finance Director of the City or the successor officer.
"Fiscal Agent" means the fiscal agent of the State, as the same may be designated
by the State from time to time.
"Letter of Representations" means the Blanket Issuer Letter of Representations
dated October 18, 1999, between the City and DTC, as it may be amended from time to
time.
"MSRB" means the Municipal Securities Rulemaking Board.
"Owners" means, without distinction, the Registered Owner(s) and the Beneficial
Owner(s).
"Refunded Bonds" means the outstanding Limited Tax General Obligation Bonds,
Series 2003A, of the City maturing in the years 2014 through 2021, inclusive, and in
2023, issued pursuant to Ordinance No. 2027, the refunding of which has been
provided for by this ordinance.
"Refunding Plan" means:
(a) the placement of sufficient proceeds of the Bonds which, with other
money of the City, if necessary, will acquire the Acquired Obligations to be
deposited, with cash, if necessary, with the Refunding Trustee;
(b) the payment of the principal of and interest on the Refunded Bonds
when due up to and including December 1, 2013, and the call, payment, and
redemption on December 1, 2013, of all of the then outstanding Refunded
Bonds at a price of par; and
(c) the payment of the costs of issuing the Bonds and the costs of
carrying out the foregoing elements of the Refunding Plan.
"Refunding Trust Agreement" means a Refunding Trust Agreement between the
City and the Refunding Trustee substantially in the form of that which is on file with the
City Clerk and by this reference incorporated herein.
"Refunding Trustee" means U.S. Bank National Association of Seattle, Washington,
serving as trustee or escrow agent or any successor trustee or escrow agent.
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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
under the Letter of Representations, Registered Owner shall mean DTC.
"Registration Ordinance" means City Ordinance No. 1338 establishing a system of
registration for the City's bonds and other obligations.
"Rule 15c2 -12" means Rule 15c2 -12 promulgated by the SEC under the Securities
Exchange Act of 1934, as amended.
"SEC" means the United States Securities and Exchange Commission.
"State" means the State of Washington.
"Term Bonds" means those Bonds designated as such, with the maturity date or
dates identified in the maturing in the Bond Purchase Contract.
"Undertaking" means the continuing disclosure agreement set forth in Section 17 of
this ordinance.
"Underwriter" means Seattle- Northwest Securities Corporation of Seattle,
Washington.
Section 2. Recitals and Findings.
1. Pursuant to Ordinance No. 2027, the City heretofore issued the 2003A
Bonds, and by that ordinance reserved the right to redeem the 2003A Bonds prior to
their maturity on December 1, 2013, at a price of par plus accrued interest to the date
fixed for redemption.
2. There are presently outstanding $7,270,000 par value of 2003A Bonds
maturing on December 1 of each of the years 2014 through 2021, inclusive, and 2023,
and bearing various interest rates from 3.95% to 4.65% (the "Refunded Bonds
3. After due consideration, it appears to the City Council that the Refunded
Bonds may be refunded by the issuance and sale of the limited tax general obligation
refunding bonds authorized herein so that a substantial savings will be effected by the
difference between the principal and interest cost over the life of the Bonds and the
principal and interest cost over the life of the Refunded Bonds but for such refunding,
which refunding will be effected by carrying out the Refunding Plan.
4. To effect that refunding in the manner that will be most advantageous to
the City it is found necessary and advisable that certain Acquired Obligations bearing
interest and maturing at such time or times as necessary to accomplish the refunding as
aforesaid be purchased out of a portion of the proceeds of the Bonds and other money
of the City, if necessary.
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5. The City Council deems it to be in the best interests of the City to issue and
sell the Bonds to pay the cost of carrying out the Refunding Plan.
Section 3. Debt Capacity. The assessed valuation of the taxable property within
the City as ascertained by the last preceding assessment for City purposes for the
calendar year 2011 is $4,775,732,512.
A. The City has outstanding general indebtedness as follows:
(i) Limited tax general obligation bonds and leases outstanding in the
principal amount of $22,755,814 (excluding the Refunded Bonds), which is
incurred within the limit of up to 1' /z% of the value of the taxable property
within the City permitted for general municipal purposes.
(ii) No unlimited tax general obligation bonds for capital purposes only.
B. The amount of indebtedness authorized by this ordinance is an amount not to
exceed $8,000,000 and is issued within the limitation permitted for general municipal
purposes without a vote.
Section 4. Purpose and Authorization of Bonds. The City shall borrow money
on the credit of the City and issue negotiable limited tax general obligation refunding
bonds evidencing that indebtedness in the amount of not to exceed $8,000,000 to
finance the cost of the Refunding Plan and to pay the costs of issuance and sale of the
Bonds.
Section 5. Description of Bonds. The Bonds shall be called the City of Tukwila,
Washington, Limited Tax General Obligation Refunding Bonds, 2011. The Bonds shall
be issued in the aggregate principal amount of not to exceed $8,000,000; shall be dated
their date of initial delivery to the Underwriter; shall be in Authorized Denominations;
and shall be numbered separately in the manner and with any additional designation as
the Bond Registrar deems necessary for purposes of identification.
The Bonds shall bear interest (computed on the basis of a 360 -day year of twelve
30 -day months) payable semiannually on each June 1 and December 1, commencing
June 1, 2012, to the maturity or earlier redemption of the Bonds; and shall mature or be
subject to mandatory redemption on December 1 in years and amounts and bear
interest at the rates per annum as set forth in the Bond Purchase Contract, except that
no Bonds shall mature later than December 1, 2023. The interest rate or rates and the
maturity schedule, including the designation of Term Bonds, if any, shall be set forth in
the Bond Purchase Contract consistent with Section 18; however, the true interest cost
for the Bonds shall not exceed a rate of 3.00
Section 6. Bond Registrar; Registration and Transfer of Bonds.
A. Registration of Bonds. The Bonds shall be issued only in registered form as
to both principal and interest and shall be recorded on the Bond Register.
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B. Bond Registrar. The Bond Registrar shall keep, or cause to be kept, sufficient
books for the registration and transfer of the Bonds, which shall be open to inspection
by the City at all times. The Bond Register shall contain the name and mailing address
of the Registered Owner of each Bond and the principal amount and number of each of
the Bonds held by each Registered Owner.
The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver
Bonds transferred or exchanged in accordance with the provisions of the Bonds and this
ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the
Bond Registrar's powers and duties under this ordinance and City's Registration
Ordinance.
The Bond Registrar shall be responsible for its representations contained in the
Bond Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may
become either a Registered or Beneficial Owner of 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
depository for and permit any of its officers or directors to act as members of, or in any
other capacity with respect to, any committee formed to protect the rights of Beneficial
Owners.
Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any
Authorized Denomination of an equal aggregate principal amount and of the same
interest rate and maturity. Bonds may be transferred only if endorsed in the manner
provided thereon and surrendered to the Bond Registrar. Any exchange or transfer
shall be without cost to the owner or transferee. The Bond Registrar shall not be
obligated to exchange or transfer any Bond during the 15 days preceding any principal
payment or redemption date.
C. DTC and the Book Entry System. The Bonds initially shall be registered in
the name of Cede Co., as the nominee of DTC. The Bonds so registered shall be
held in fully immobilized form by DTC as depository in accordance with the provisions of
the Letter of Representations. Neither the City nor the Bond Registrar shall have any
responsibility or obligation to DTC participants or the persons for whom they act as
nominees with respect to the Bonds regarding accuracy of any records maintained by
DTC or DTC participants of any amount in respect of principal of or interest on the
Bonds, or any notice which is permitted or required to be given to Registered Owners
hereunder (except such notice as is required to be given by the Bond Registrar to DTC).
For as long as any Bonds are held in fully immobilized form, DTC, its nominee or its
successor depository shall be deemed to be the Registered Owner for all purposes
hereunder and all references to registered owners, bondowners, bondholders or the like
shall mean DTC or its nominee and, except for the purpose of the City's undertaking
herein to provide continuing disclosure, shall not mean the Beneficial Owners.
Registered ownership of such Bonds, or any portions thereof, may not thereafter be
transferred except: (i) to any successor of DTC or its nominee, if that successor shall
be qualified under any applicable laws to provide the services proposed to be provided
by it; (ii) to any substitute depository appointed by the City or such substitute
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depository's successor, or (iii) to any person if the Bonds are no longer held in
immobilized form.
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 that it no
longer wishes to continue 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.
If (i) DTC or its successor (or substitute depository or its successor) resigns from its
functions as depository, and no substitute depository can be obtained or (ii) the City
determines that the Bonds are to be in certificated form, the ownership of Bonds may be
transferred to any person as provided herein and the Bonds no longer shall be held in
fully immobilized form.
Section 7. Form and Execution of Bonds. The Bonds shall be prepared in a
form consistent with the provisions of this ordinance and state law and shall be signed
by the Mayor and City Clerk, either or both of whose signatures may be manual or in
facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed
or printed thereon.
Only Bonds bearing a Certificate of Authentication in the following form, manually
signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to
the benefits of this ordinance: "Certificate Of Authentication. This Bond is one of the
fully registered City of Tukwila, Washington, Limited Tax General Obligation Refunding
Bonds, 2011, described in the Bond Ordinance." The authorized signing of a Certificate
of Authentication shall be conclusive evidence that the Bond so authenticated has been
duly executed, authenticated and delivered and is entitled to the benefits of this
ordinance.
If any officer whose manual or facsimile signature appears on the Bonds ceases to
be an officer of the City authorized to sign bonds before the Bonds bearing his or her
manual or facsimile signature are authenticated or delivered by the Bond Registrar or
issued by the City, those Bonds nevertheless may be authenticated, issued and
delivered and, when authenticated, issued and delivered, shall be as binding on the City
as though that person had continued to be an officer of the City authorized to sign
bonds. Any Bond also may be signed on behalf of the City by any person who, on the
actual date of signing of the Bond, is an officer of the City authorized to sign bonds,
although he or she did not hold the required office on the date of issuance of the Bonds.
Section 8. Payment of Bonds. Both principal of and interest on the Bonds shall
be payable in lawful money of the United States of America. For as long as the Bonds
are registered in the name of DTC or its nominee, payment of principal of and interest
on the Bonds shall be made in the manner set forth in the Letter of Representations. If
the Bonds cease to be in book entry-only form, interest on the Bonds shall be paid by
checks or drafts of the Bond Registrar mailed on the interest payment date to the
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Registered Owners at the addresses appearing on the Bond Register on the 15th day of
the month preceding the interest payment date or by electronic transfer on the interest
payment date. The City shall not be required to make electronic transfers except to a
Registered Owner of Bonds pursuant to a request in writing (and at the sole expense of
that Registered Owner) received at least 10 days before an interest payment date.
Principal of the Bonds shall be payable upon presentation and surrender of the Bonds
by the Registered Owners to the Bond Registrar.
Section 9. Redemption Provisions and Open Market Purchase of Bonds.
A. Optional Redemption. The Bonds maturing in the years 2012 through 2021,
inclusive, shall be issued without the right or option of the City to redeem those Bonds
prior to their stated maturity dates. The City reserves the right and option to redeem the
Bonds maturing on or after December 1, 2022, prior to their stated maturity dates at any
time on or after December 1, 2021, as a whole or in part (within one or more maturities
selected by the City), at par plus accrued interest to the date fixed for redemption.
B. Mandatory Redemption. Bonds designated in the Bond Purchase Contract as
Term Bonds, if not redeemed under the optional redemption provisions set forth above
or purchased in the open market under the provisions set forth below, shall be called for
redemption at par plus accrued interest on December 1 in years and amounts as set
forth in the Bond Purchase Contract. If the City redeems under the optional redemption
provisions, purchases in the open market or defeases Term Bonds, the par amount of
the Term Bonds so redeemed, purchased or defeased (irrespective of their actual
redemption or purchase prices) shall be credited against one or more scheduled
mandatory redemption amounts for those Term Bonds. The City shall determine the
manner in which the credit is to be allocated and shall notify the Bond Registrar in
writing of its allocation prior to the earliest mandatory redemption date for that maturity
of Term Bonds for which notice of redemption has not already been given.
C. Partial Redemptions. Portions of the principal amount of any Bond, in any
Authorized Denomination, may be redeemed. If less than all of the principal amount of
any Bond is redeemed, upon surrender of that Bond.to the Bond Registrar, there shall
be issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option
of the Registered Owner) of the same maturity and interest rate in any Authorized
Denomination in the aggregate principal amount remaining unredeemed.
D. Open Market Purchase. The City further reserves the right and option to
purchase any or all of the Bonds in the open market at any time at any price acceptable
to the City plus accrued interest to the date of purchase.
E. Selection of Bonds for Redemption. If fewer than all of the outstanding
Bonds within a maturity are to be redeemed prior to maturity, selection of Bonds for
redemption shall be randomly within a maturity in such manner as the Bond Registrar
shall determine. Notwithstanding the foregoing, for as long as the Bonds are registered
in the name of DTC or its nominee, selection of Bonds for redemption shall be in
accordance with the Letter of Representations.
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F. Cancellation of Bonds. All Bonds purchased or redeemed under this section
shall be canceled.
G. Notice of Redemption. While the Bonds are held by DTC in book -entry only
form, any notice of redemption shall be given at the time, to the entity and in the manner
required by DTC in accordance with the Letter of Representations, and the Bond
Registrar shall not be required to give any other notice of redemption. If the Bonds
cease to be in book -entry only form unless waived by any Registered Owner of the
Bonds to be redeemed, the City shall cause notice of any intended redemption of Bonds
to be given by the Bond Registrar not less than 20 nor more than 60 days prior to the
date fixed for redemption by first -class mail, postage prepaid, to the Registered Owner
of any Bond to be redeemed at the address appearing on the Bond Register at the time
the Bond Registrar prepares the notice, and the requirements of this sentence shall be
deemed to have been fulfilled when notice has been mailed as so provided, whether or
not it is actually received by the Registered or Beneficial Owner of any Bond.
In the case of an optional redemption, the notice may state that the City retains the
right to rescind the redemption notice and the related optional redemption of Bonds by
giving a notice of rescission to the affected Registered Owners at any time prior to the
scheduled optional redemption date. Any notice of optional redemption that is so
rescinded shall be of no effect, and the Bonds for which the notice of optional
redemption has been rescinded shall remain outstanding.
In addition, the redemption notice shall be mailed or sent electronically within the
same period to the MSRB, consistent with the Undertaking, to any nationally recognized
rating agency which at the time maintains a rating on the Bonds at the request of the
City, and to such other persons and with such additional information as the Finance
Director shall determine, but these additional mailings shall not be a condition precedent
to the redemption of Bonds.
H. Effect of Redemption. Interest on Bonds called for redemption shall cease to
accrue on the date fixed for redemption, except in the case of a rescinded optional
redemption as described above, or unless the Bond or Bonds called are not redeemed
when presented pursuant to the call.
I. Failure To Redeem Bonds. If any Bond is not redeemed when properly
presented at its maturity or date set for redemption, the City shall be obligated to pay
interest on that Bond at the same rate provided in the Bond from and after its maturity or
date set for redemption until that Bond, both principal and interest, is paid in full or until
sufficient money for its payment in full is on deposit in the Bond Fund and the Bond has
been called for payment by giving notice of that call to the Registered Owner.
Section 10. Pledge of Taxes. For as long as any of the Bonds are outstanding,
the City irrevocably pledges to include in its budget and levy taxes annually, within the
constitutional and statutory tax limitations provided by law without a vote of the electors
of the City, on all of the taxable property within the City in an amount sufficient, together
with other money legally available and to be used therefor, to pay when due the
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principal of and interest on the Bonds. The full faith, credit and resources of the City are
pledged irrevocably for the annual levy and collection of those taxes and the prompt
payment of that principal and interest.
Section 11. Refunding of the Refunded Bonds.
A. Appointment of Refunding Trustee. U.S. Bank National Association of
Seattle, Washington, is appointed Refunding Trustee.
B. Use of Bond Proceeds; Acquisition of Acquired Obligations. A sufficient
amount of the proceeds of the sale of the Bonds, shall be deposited immediately upon
the receipt thereof with the Refunding Trustee and used to discharge the obligations of
the City relating to the Refunded Bonds under Ordinance No. 2027 by providing for the
payment of the amounts required to be paid by the Refunding Plan. To the extent
practicable, such obligations shall be discharged fully by the Refunding Trustee's
simultaneous purchase of the Acquired Obligations, bearing such interest and maturing
as to principal and interest in such amounts and at such times so as to provide, together
with a beginning cash balance, if necessary, for the payment of the amount required to
be paid by the Refunding Plan. The Acquired Obligations are listed and more
particularly described in Exhibit A attached to the Refunding Trust Agreement between
the City and the Refunding Trustee, but are subject to substitution as set forth below.
Any Bond proceeds or other money deposited with the Refunding Trustee not needed to
purchase the Acquired Obligations and provide a beginning cash balance, if any, and
pay the costs of issuance of the Bonds shall be returned to the City at the time of
delivery of the Bonds to the initial purchaser thereof and deposited in the Bond Fund to
pay interest on the Bonds on the first interest payment date.
C. Substitution of Acquired Obligations. Prior to the purchase of any Acquired
Obligations by the Refunding Trustee, the City reserves the right to substitute other
direct, noncallable obligations of the United States of America "Substitute Obligations
for any of the Acquired Obligations and to use any savings created thereby for any
lawful City purpose if, (a) in the opinion of Foster Pepper PLLC, the City's bond counsel,
the interest on the Bonds and the Refunded Bonds will remain excluded from gross
income for federal income tax purposes under Sections 103, 148, and 149(d) of the
Code, and (b) such substitution shall not impair the timely payment of the amounts
required to be paid by the Refunding Plan, as verified by a nationally recognized
independent certified public accounting firm.
After the purchase of-the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Substitute Obligations subject to the
conditions that such money or securities held by the Refunding Trustee shall be
sufficient to carry out the Refunding Plan, that such substitution will not cause the
Bonds or the Refunded Bonds to be arbitrage bonds within the meaning of Section 148
of the Code and regulations thereunder in effect on the date of such substitution and
applicable to obligations issued on the issue dates of the Bonds and the Refunded
Bonds, as applicable, and that the City obtain, at its expense: (1) a verification by a
nationally recognized independent certified public accounting firm acceptable to the
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Refunding Trustee confirming that the payments of principal of and interest on the
substitute securities, if paid when due, and any other money held by the Refunding
Trustee will be sufficient to carry out the Refunding Plan; and (2) an opinion from Foster
Pepper PLLC, bond counsel to the City, its successor, or other nationally recognized
bond counsel to the City, to the effect that the disposition and substitution or purchase
of such securities, under the statutes, rules, and regulations then in force and applicable
to the Bonds, will not cause the interest on the Bonds or the Refunded Bonds to be
included in gross income for federal income tax purposes and that such disposition and
substitution or purchase is in compliance with the statutes and regulations applicable to
the Bonds. Any surplus money resulting from the sale, transfer, other disposition, or
redemption of the Acquired Obligations and the substitutions therefor shall be released
from the trust estate and transferred to the City to be used for any lawful City purpose.
D. Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or Substitute Obligations) and to make
the payments required to be made by the Refunding Plan from the Acquired Obligations
(or Substitute Obligations) and money deposited with the Refunding Trustee pursuant to
this ordinance. All Acquired Obligations (or Substitute Obligations) and the money
deposited with the Refunding Trustee and any income therefrom shall be held
irrevocably, invested and applied in accordance with the provisions of Ordinance No.
2027, this ordinance, chapter 39.53 RCW and other applicable statutes of the State of
Washington and the Refunding Trust Agreement. All necessary and proper fees,
compensation, and expenses of the Refunding Trustee for the Bonds and all other costs
incidental to the setting up of the escrow to accomplish the refunding of the Refunded
Bonds and costs related to the issuance and delivery of the Bonds, including bond
printing, certification fees, bond counsel's fees, and other related expenses, shall be
paid out of the proceeds of the Bonds.
E. Authorization for Refunding Trust Agreement. To carry out the Refunding
Plan provided for by this ordinance, the Mayor or Finance Director of the City is
authorized and directed to execute and deliver to the Refunding Trustee a Refunding
Trust Agreement substantially in the form on file with the Finance Director and by this
reference made a part hereof setting forth the duties, obligations and* responsibilities of
the Refunding Trustee in connection with the payment, redemption, and retirement of
the Refunded Bonds as provided herein and stating that the provisions for payment of
the fees, compensation, and expenses of such Refunding Trustee set forth therein are
satisfactory to it. Prior to executing the Refunding Trust Agreement, the Mayor or
Finance Director of the City is authorized to make such changes therein that do not
change the substance and purpose thereof or that assure that the escrow provided
therein and the Bonds are in compliance with the requirements of federal law governing
the exclusion of interest on the Bonds from gross income for federal income tax
purposes.
Section 12. Call for Redemption of the Refunded Bonds. The City calls for
redemption on December 1, 2013, all of the Refunded Bonds at par plus accrued
interest. Such call for redemption shall be irrevocable after the delivery of the Bonds to
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the initial purchaser thereof. The date on which the Refunded Bonds are herein called
for redemption is the first date on which those bonds may be called.
The proper City officials are authorized and directed to give or cause to be given
such notices as required, at the times and in the manner required, pursuant to
Ordinance No. 2027 in order to effect the redemption prior to their maturity of the
Refunded Bonds.
Section 13. City Findings with Respect to Refunding. Prior to the issuance of
the Bonds, the Finance Director must find and determine, on behalf of the City, that the
issuance, sale and delivery of the Bonds will effect a net present value savings to the
City and its taxpayers of at least 3% (based on the amount of the refunded bonds),
which the City Council determines is a substantial savings and .is in the best interest of
the City and in the public interest. In making such finding and determination, the
Finance Director shall give consideration to the fixed maturities of the Bonds and the
Refunded Bonds, the costs related to the issuance, sale and delivery of the Bonds and
the known earned income from the investment of the proceeds of the issuance and sale
of the Bonds used in the Refunding Plan pending payment and redemption of the
Refunded Bonds.
Prior to the issuance of the Bonds, the Finance Director must further find and
determine that the money to be deposited with the Refunding Trustee for the Refunded
Bonds in accordance with Section 11 of this ordinance will discharge and satisfy the
obligations of the district under Ordinance No. 2027 with respect to the Refunded
Bonds, and the pledges, charges, trusts, covenants and agreements of the District
therein made or provided for as to the Refunded Bonds, and that the Refunded Bonds
shall no longer be deemed to be outstanding under Ordinance No. 2027 immediately
upon the deposit of such money with the Refunding Trustee.
Section 14. Tax Covenants; Designation of Bonds as "Qualified Tax Exempt
Obligations."
A. Preservation of Tax Exemption for Interest on Bonds. The City covenants
that it will take all actions necessary to prevent interest on the Bonds from being
included in gross income for federal income tax purposes, and it will neither take any
action nor make or permit any use of proceeds of the Bonds or other funds of the City
treated as proceeds of the Bonds at any time during the term of the Bonds which will
cause interest on the Bonds to be included in gross income for federal income tax
purposes. The City also covenants that it will, to the extent the arbitrage rebate
requirements of Section 148 of the Code are applicable to the Bonds, take all actions
necessary to comply (or to be treated as having complied) with those requirements in
connection with the Bonds, including the calculation and payment of any penalties that
the City has elected to pay as an alternative to calculating rebatable arbitrage, and the
payment of any other penalties if required under Section 148 of the Code to prevent
interest on the Bonds from being included in gross income for federal income tax
purposes.
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B. Designation of Bonds as "Qualified Tax Exempt Obligations." The City
has determined and certifies that (a) the Bonds are not "private activity bonds" within the
meaning of Section 141 of the Code; (b) the reasonably anticipated amount of tax
exempt obligations (other than private activity bonds and other obligations not required
to be included in such calculation) which the City and any entity subordinate to the City
(including any entity that the City controls, that derives its authority to issue tax exempt
obligations from the City, or that issues tax exempt obligations on behalf of the City) will
issue during the calendar year in which the Bonds are issued will not exceed
$10,000,000; and (c) the amount of tax exempt obligations, including the Bonds,
designated by the City as "qualified tax exempt obligations" for the purposes of Section
265(b)(3) of the Code during the calendar year in which the Bonds are issued does not
exceed $10,000,000. The City designates the Bonds as "qualified tax exempt
obligations" for the purposes of Section 265(b)(3) of the Code.
Section 15. Refunding or Defeasance of the Bonds. The City may issue
refunding bonds pursuant to the laws of the State or use money available from any
other lawful source to pay when due the principal of and interest on the Bonds, or any
portion thereof included in a refunding or defeasance plan, and to redeem and retire,
refund or defease all such then outstanding Bonds (hereinafter collectively called the
"defeased Bonds and to pay the costs of the refunding or defeasance. If money
and /or "government obligations" (as defined in chapter 39.53 RCW, as now or hereafter
amended) maturing at a time or times and bearing interest in amounts (together with
money, if necessary) sufficient to redeem and retire, refund or defease the defeased
Bonds in accordance with their terms are set aside in a special trust fund or escrow
account irrevocably pledged to that redemption, retirement or defeasance of defeased
Bonds (hereinafter called the "trust account then all right and interest of the Owners of
the defeased Bonds in the covenants of this ordinance and in the funds and accounts
obligated to the payment of the defeased Bonds shall cease and become void. The
Owners of defeased Bonds shall have the right to receive payment of the principal of
and interest on the defeased Bonds from the trust account. The City shall include in the
refunding or defeasance plan such provisions as the City deems necessary for the
random selection of any defeased Bonds that constitute less than all of a particular
maturity of Bonds, for notice of the defeasance to be given to the owners of the
defeased Bonds and to such other persons as the City shall determine, and for any
required replacement of Bond certificates for defeased Bonds. The defeased Bonds
shall be deemed no longer outstanding, and the City may apply any money in any other
fund or account established for the payment or redemption of the defeased Bonds to
any lawful purposes as it shall determine.
If the Bonds are registered in the name of DTC or its nominee, notice of any
defeasance of Bonds shall be given to DTC in the manner prescribed in the Letter of
Representations for notices of redemption of Bonds.
Section 16. Bond Fund and Deposit of Bond Proceeds. The Bond Fund is
hereby created and established in the office of the Finance Director as a special fund
designated the Limited Tax General Obligation Refunding Bond Fund, 2011, for the
purpose of paying principal of and interest on the Bonds. All taxes and other amounts
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allocated to the payment of the principal of and interest on the Bonds shall be deposited
in the Bond Fund.
Section 17. Undertaking to Provide Continuing Disclosure. To meet the
requirements of paragraph (b)(5) of Rule 15c2 -12, as applicable to a participating
underwriter for the Bonds, the City makes the following written Undertaking for the
benefit of holders of the Bonds:
A. Undertaking to Provide Annual Financial Information and Notice of Listed
Events. The City undertakes to provide or cause to be provided, either directly or
through a designated agent, to the MSRB, in an electronic format as prescribed by the
MSRB, accompanied by identifying information as prescribed by the MSRB:
(i) Annual financial information and operating data of the type included
in the final official statement for the Bonds and described in subsection (B) of
this section "annual financial information
(ii) Timely notice (not in excess of 10 business days after the
occurrence of the event) of the occurrence of any of the following events with
respect to the Bonds: (1) principal and interest payment delinquencies; (2)
non payment related defaults, if material; (3) unscheduled draws on debt
service reserves reflecting financial difficulties; (4) unscheduled draws on
credit enhancements reflecting financial difficulties; (5) substitution of credit
or liquidity providers, or their failure to perform; (6) adverse tax opinions, the
issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notice of Proposed Issue (IRS Form 5701
TEB) or other material notices or determinations with respect to the tax
status of the Bonds; (7) modifications to rights of holders of the Bonds, if
material; (8) bond calls (other than scheduled mandatory redemptions of
Term Bonds), if material, and tender offers; (9) defeasances; (10) release,
substitution, or sale of property securing repayment of the Bonds, if material;
(11) rating changes; (12) bankruptcy, insolvency, receivership or similar
event of the City, as such "Bankruptcy Events" are defined in Rule 15c2 -12;
(13) the consummation of a. merger, consolidation, or acquisition involving
the City or the sale of all or substantially all of the assets of the City other
than in the ordinary course of business, the entry into a definitive agreement
to undertake such an action or the termination of a definitive agreement
relating to any such actions, other than pursuant to its terms, if material; and
(14) appointment of a successor or additional trustee or the change of name
of a trustee, if material.
(iii) Timely notice of a failure by the City to provide required annual
financial information on or before the date specified in subsection (B) of this
section.
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B. Type of Annual Financial Information Undertaken to be Provided. The
annual financial information that the City undertakes to provide in subsection (A) of this
section:
(i) Shall consist of (1) annual financial statements prepared (except as
noted in the financial statements) in accordance with applicable generally
accepted accounting principles applicable to State local governmental units
such as the City, as such principles may be changed from time to time,
which statements shall not be audited, except, however, that if and when
audited financial statements are otherwise prepared and available to the City
they will be provided; (2) outstanding general obligation bonds; (3) assessed
valuation for the fiscal year; (4) regular property tax levy rate and regular
property tax levy rate limit for the fiscal year; and (5) general fund revenues
from other major tax sources; and
(ii) Shall be provided not later than the last day of the ninth month after
the end of each fiscal year of the City (currently, a fiscal year ending
December 31), as such fiscal year may be changed as required or permitted
by State law, commencing with the City's fiscal year ending December 31,
2012; and
(iii) May be provided in a single or multiple documents, and may be
incorporated by specific reference to documents available to the public on
the Internet website of the MSRB or filed with the SEC.
C. Amendment of Undertaking. The Undertaking is subject to amendment after
the primary offering of the Bonds without the consent of any holder of any Bond, or of
any broker, dealer, municipal securities dealer, participating underwriter, rating agency
or the MSRB, under the circumstances and in the manner permitted by Rule 1.5c2 -12.
The City will give notice to the MSRB of the substance (or provide a copy) of any
amendment to the Undertaking and a brief statement of the reasons for the amendment.
If the amendment changes the type of annual financial information to be provided, the
annual financial information containing the amended financial information will include a
narrative explanation of the effect of that change .on the type I of information to be
provided.
D. Beneficiaries. The Undertaking evidenced by this section shall inure to the
benefit of the City and any Beneficial Owner of Bonds, and shall not inure to the benefit
of or create any rights in any other person.
E. Termination of Undertaking. The City's obligations under this Undertaking
shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's
obligations under this Undertaking shall terminate if those provisions of Rule 15c2 -12
which require the City to comply with this Undertaking become legally inapplicable in
respect of the Bonds for any reason, as confirmed by an opinion of nationally
recognized bond counsel or other counsel familiar with federal securities laws delivered
to the City, and the City provides timely notice of such termination to the MSRB.
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F. Remedy for Failure to Comply with Undertaking. As soon as practicable
after the City learns of any failure to comply with the Undertaking, the City will proceed
with due diligence to cause such noncompliance to be corrected. No failure by the City
or other obligated person to comply with the Undertaking shall constitute a default in
respect of the Bonds. The sole remedy of any Beneficial Owner of a Bond shall be to
take such actions as that Beneficial Owner deems necessary, including seeking an
order of specific performance from an appropriate court, to compel the City or other
obligated person to comply with the Undertaking.
G. Designation of Official Responsible to Administer Undertaking. The
Finance Director of the City (or such other officer of the City who may in the future
perform the duties of that office) or his or her designee is authorized and directed in his
or her discretion to take such further actions as may be necessary, appropriate or
convenient to carry out the Undertaking of the City in respect of the Bonds set forth in
this section and in accordance with Rule 15c2 -12, including, without limitation, the
following actions:
(i) Preparing and filing the annual financial information undertaken to
be provided;
(ii) Determining whether any event specified in subsection (A) has
occurred, assessing its materiality, where necessary, with respect to the
Bonds, and preparing and disseminating any required notice of its
occurrence;
(iii) Determining whether any person other than the City is an "obligated
person" within the meaning of Rule 15c2 -12 with respect to the Bonds, and
obtaining from such person an undertaking to provide any annual financial
information and notice of listed events for that person in accordance with
Rule 15c2 -12;
(iv) Selecting, engaging and compensating designated agents and
consultants, including but not limited to financial advisors and legal counsel,
to assist and advise the City in carrying out the Undertaking; and
(v) Effecting any necessary amendment of the Undertaking.
Section 18. Execution of Bond Purchase Contract; Delegation of Final Bond
Terms. The Underwriter is expected to present a purchase contract (the "Bond
Purchase Contract to the City offering to purchase the Bonds under the terms and
conditions provided in the Bond Purchase Contract. Pursuant to the terms of RCW
39.46.040, the Finance Director is hereby authorized to serve as the designated
representative of the Mayor and the City Council and to accept, on behalf of the City,
the Bond Purchase Contract consistent with the terms of this ordinance.
The Bonds will be printed at City expense and will be delivered to the purchaser in
accordance with the Bond Purchase Contract, with the approving legal opinion of Foster
Pepper PLLC, municipal bond counsel of Seattle, Washington, regarding the Bonds.
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Section 19. Official Statement. The City has been provided with copies of a
preliminary official statement prepared in connection with the sale of the Bonds. For the
sole purpose of the Underwriter's compliance with paragraph (b)(1) of Rule 15c2 -12, the
Finance Director is authorized on behalf of the City, to "deem final" that Preliminary
Official Statement as of its date, except for the omission of information permitted to be
omitted by Rule 15c2 -12 and ratifies the distribution by the Underwriter of that
preliminary official statement to potential purchasers of the Bonds.
The City authorizes and approves the preparation, execution by proper City officials
and delivery to the Underwriter of a final official statement for the Bonds, in the form of
the preliminary official statement, with such modifications and amendments thereto as
shall be deemed necessary or desirable by the City. The City authorizes and approves
the distribution by the Underwriter of that final official statement to potential purchasers
and purchasers of the Bonds.
Section 20. Supplemental Ordinances. The City Council from time to time and at
any time may pass an ordinance or ordinances supplemental to this ordinance which
supplemental ordinance or ordinances thereafter shall become a part of this ordinance,
for any one or more of the following purposes:
A. To add to the covenants and agreements of the City in this ordinance such
other covenants and agreements thereafter to be observed, which shall not adversely
affect the interests of the holders and owners of the Bonds, or to surrender any right or
power herein reserved to or conferred upon the City.
B. To make such provisions for the purpose of curing any ambiguities or of curing,
correcting or supplementing any defective provision contained in this ordinance in
regard to matters or questions arising under such ordinances as the City Council may
deem necessary or desirable and not inconsistent with such ordinances and which shall
not materially adversely affect the interest of the holders and owners of the Bonds.
Section 21. General Authorization and Ratification. The Mayor, City
Administrator, Finance Director, and other appropriate officers of the City are severally
authorized and directed to take any actions and to execute documents as in their
judgment may be necessary or desirable to carry out the terms of, and complete the
transactions contemplated by, this ordinance and the Bond Purchase Contract
(including everything necessary for the prompt delivery of the Bonds to the Underwriter
and for the proper application, use and investment of the proceeds of the sale thereof),
and all actions heretofore taken in furtherance thereof and not inconsistent with the
terms of this ordinance are ratified and confirmed in all respects.
Section 22. Severability. The provisions of this ordinance are declared to be
separate and severable. If a court of competent jurisdiction, all appeals having been
exhausted or all appeal periods having run, finds any provision of this ordinance to be
invalid or unenforceable as to any person or circumstance, such offending provision
shall, if feasible, be deemed to be modified to be within the limits of enforceability or
validity. However, if the offending provision cannot be so modified, it shall be null and
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void with respect to the particular person or circumstance, and all other provisions of
this ordinance in all other respects, and the offending provision with respect to all other
persons and all other circumstances, shall remain valid and enforceable.
Section 23. Effective Date of Ordinance. This ordinance or a summary thereof
shall be published in the official newspaper of the City, and shall take effect and be in
full force five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY
Shelley M. Kerslake, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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SUMMARY OF REFUNDING RESULTS
City of Tukwila, Washington
Proposed Refunding of 2003A LTGO Bonds
Dated Date
Delivery Date
Arbitrage yield
Escrow yield
Bond Par Amount
True Interest Cost
Net Interest Cost
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV of prior debt to 1 1/01/201 1 2.311447%
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
Sep 21, 2011 9:39 am Prepared by Seattle- Northwest Securities Corp.
11/01/2011
11/01/2011
2.311447%
0.147864°%
7.215.000.00
2.464629°%
2.620866°%
3.861175°%
7.869
7,270,000.00
4.465144°%
7.929
8,515,876.18
354,651.95
4.878294%
4.915481
(Finance 6.021 Tukwila :TUKWILA- R03ALTGO,R03ALTGO) Page I
W e
SAVINGS
SavinL Summate
i
9.976,728.75 159,31 1.25
PV of savings from cash flow
Plus: Refunding funds on hand
Net PV Savings
Sep 21, 2011 9:39 am Prepared by Seattle Northwest Securities Corp.
City of Tukwila, Washington
Prior Prior
Date
Debt Service
Receipts
1 1/01/201 1
Bonds
159,31 1.25
12/01/2011
159,31 1.25
06/01/2012
159,31 1.25
Present Value
12/01/2012
159,31 1.25
06/01/2013
159,31 1.25
Net Cash Flow
12/01/2013
159,31 1.25
Savings
06/01/2014
159,31 1.25
12/01/2014
759,311.25
159,31 1.25
06/01/2015
147,461.25
159,31 1.25
12/01/2015
772.461.25
159,311.25
06/01/2010
134.805.00
12/01/2016
784,805.00
134,625.00
06/01/2017
121.317.50
24,079.22
12/01/2017
796,317.50
24,686.25
06/01/2018
106,973.75
159,311.25
12/01/2018
811,973.75
34,372.50
06/01/2019
91,640.00
134,475.00
12/01/2019
826,640.00
23,404.64
06/01/2020
75,286.25
9,836.25
12/01/2020
840,286.25
147,461.25
06/01/2021
58,073.75
12/01/2021
858,073.75
760,250.00
06/01/2022
39,873.75
11,117.44
12/01/2022
879,873.75
19,080.00
06/01/2023
20,343.75
784,805.00
12/01/2023
895,343.75
33,160.00
9.976,728.75 159,31 1.25
PV of savings from cash flow
Plus: Refunding funds on hand
Net PV Savings
Sep 21, 2011 9:39 am Prepared by Seattle Northwest Securities Corp.
City of Tukwila, Washington
Proposed Refunding
of 2003A LTGO
Bonds
Present Value
Prior
Refunding
Annual
to 11/01/2011
Net Cash Flow
Debt Service
Savings
Savings
ab 2.3114466%
-159,311.25
-159,311.25
159,31 1.25
159,31 1.25
159,31 1.25
159,006.44
159,311.25
157,062.50
2,248.75
2,218.80
159,311.25
134,625.00
24,686.25
26,935.00
24,079.22
159,311.25
134,625.00
24,686.25
23,804.11
159,311.25
149,625.00
9,686.25
34,372.50
9,233.41
159,311.25
134,475.00
24,836.25
23,404.64
759,311.25
749,475.00
9,836.25
34,672.50
9,163.37
147,461.25
125,250.00
22,211.25
20,455.40
772,461.25
760,250.00
12,211.25
34,422.50
11,117.44
134,805.00
115,725.00
19,080.00
17,172.46
784,805.00
770,725.00
14,080.00
33,160.00
12,527.55
121,317.50
105,900.00
15,417.50
13,560.86
796,31750
775,900.00
20,417.50
35,835.00
17,753.55
106,973.75
92,500.00
14,473.75
12.441.52
811,973.75
792,500.00
19,473 75
33,947.50
16.548.22
91,640.00
78,500.00
13,140.00
11,038.42
826,640.00
803,500.00
23,140.00
36,280.00
19,216.94
75,286.25
64,000.00
11,286.25
9,265.74
840,286.25
814,000.00
26,286.25
37,572.50
21,333.82
58,073.75
49,000.00
9,073.75
7,280.08
858,073.75
834,000.00
24,073.75
33,147.50
19,094.26
39,873.75
33,300.00
6,573.75
5,154.44
879,873.75
853,300.00
26.573.75
33,147.50
20,598.28
20,343.75
16,900.00
3,443.75
2,638.88
895,343.75
861,900.00
33,443.75
36,887.50
25,334.49
9,817,417.50
9,407,037.50
410,380.00
410,380.00
354,131.10
354,131.10
520.85
354,651.95
(Finance 6.021 TLtkwi la:TUKWILA- R03AL"I'GO,R03ALTGO) Page 2
SOURCES AND USES OF FUNDS
City of Tukwila, Washington
Proposed Refunding of 2003A LTGO Bonds
Dated Date 11/01/2011
Delivery Date 11/01/2011
Sources:
Bond Proceeds:
Par Amount
Premium
Other Sources of Funds:
Bond Fund Contribution
Uses:
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Delivery Date Expenses:
Cost of Issuance
Underwriter's Discount
Other Uses of Funds:
Additional Proceeds
Sep 21, 2011 9:39 am Prepared by Seattle Northwest Securities Coil).
7,215,000.00
754,644.35
7,969,644.35
159,31 1.25
8,128,955.60
0.75
8,042,929.00
8,042,929.75
35,000.00
50,505.00
85,505.00
520.85
8,128,955.60
(Finance 6.021 Tukwila :TUKWILA- R03ALTGO,R03ALTGO) Page 3
i
i
Sep 21, 2011 9:39 am Prepared by Seattle- Northwest Securities Corp.
(Finance 6.021 Tukwila :TUKWILA- R03ALTGO,R03ALTGO) Page 20
UNREFUNDED BOND DEIST SERVICE
City of Tukwila, Washington
Proposed Refiinding of 2003A LTGO
Bonds
Period
Annual
Ending
Principal
Coupon Interest
Debt Service
Debt Service
12/01/2011
530,000
4.250% 34,556.25
564,556.25
564,556.25
06/01/2012
23,293.75
23,293.75
12/01/2012
555,000
4.250'% 23,293.75
578,293.75
601,587.50
06/01/2013
11,500.00
11,500.00
12/01/2013
575,000
4.000' 11,500.00
586,500.00
598,000.00
1,660,000
104,143.75
1,764,143.75
1,764,143.75
i
Sep 21, 2011 9:39 am Prepared by Seattle- Northwest Securities Corp.
(Finance 6.021 Tukwila :TUKWILA- R03ALTGO,R03ALTGO) Page 20
SUMMARY OF REFUNDING RESULTS
City of Tukwila, Washington
Proposed Refunding of 2003A LTGO Bonds
Refunds Street portion only
Dated Date
Delivery Date
Arbitrage yield
Escrow yield
Bond Par Amount
True Interest Cost
Net Interest Cost
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV ofprior debt to 11/01/2011 cr72.310972%
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
Sep 21, 201 1 9:52 am Prepared by Seattle- Northwest Securities Corp.
11/01/2011
11/01/2011
2.310972%
0.147863%
4.605,000.00
2.464155%
2.620393%
3.861317%
7.865
4,633,241.13
4.465144%
7.929
5,427,422.14
218,442.17
4.714673%
4.743587%
(Finance 6.021 Tukwila :TUKWILA- R03ALT_2,R03ALTGO) Page I
i
SAVINGS
City of Tukwila, Washington
Proposed Refunding of 2003A LTGO Bonds
Refunds Street portion only
6,358.265.51 101,530.60
Prior Refunding
Net Cash Flow Debt Service
101,530.60
101,530.60
101.530.60
101,530.60
101,530.60
101,530.60
101,530.60
483,916.39
93,978.48
492,297.01
85,912.53
500,163.80
77,316.81
507,500.82
68,175.40
517,478.70
58.403.06
526,825.65
47,980.65
535,522.53
37,010.96
546,858.68
25,41 1.93
560.752.03
12,965.27
570,61 1.21
100,245.83
85,925.00
85,925.00
95,925.00
85,825.00
480,825.00
79,900.00
484,900.00
73,825.00
488,825.00
67,600.00
497,600.00
59,000.00
504,000.00
50,100.00
515,100.00
40,800.00
520,800.00
31,200.00
531,200.00
21,200.00
541,200.00
10,800.00
550,800.00
6,256,734.91
6,003,520.83
Savings Summary
PV of savings from cash flow
Plus: Refunding funds on hand
Net PV Savings
Sep 21, 2011 9:52 am Prepared by Seattle- Northwest Securities Corp.
Savings
101,530.60
101,530.60
1,284.77
15,605.60
15,605.60
5,605.60
15,705.60
3,091.39
14,078.48
7,397.01
12,087.53
11,338.80
9,716.81
9,900.82
9,175.40
1 3,478.70
5,303.06
11,725.65
7,180.65
14,722.53
5,810.96
15,658.68
4,211.93
19,552.03
2,165.27
19,81 1.21
253,214.08
218,301.17
141.00
218,442.17
Present Value
Annual to 11/01/2011
Savings L 2.3109724%
16,890.37
21,211.20
18,796.99
21,475.49
23,426.33
19,617.63
22,654.10
20.028.71
21.903.18
21,469.64
23,76396
21 ,976.48
253,214.08
101,530.60
101,336.38
1,267.66
15,221.94
15,048.06
5,343.59
14,800.48
2,879.95
12,965.76
6,734.56
10,879.30
10,088.84
8,546.89
8,609.27
7,887.34
11,454.19
6,975.33
9,738.10
5,895.38
11,949.26
4,662.48
12,420.38
3,302.72
15,156.28
1,659.29
15,008.35
218.301.17
(Finance 6.021 1 R03ALT 2,R03ALTGO) Page 2
Prior Prior
Date
Debt Service Receipts
11/01/201 1
101,530.60
12/01/201 1
101,530.60
06/01/2012
101,530.60
12/01/2012
101,530.60
06/01/2013
101,530.60
12/01/2013
101,530.60
06/01/2014
101,530.60
12/01/2014
483,916.39
06/01/2015
93,978.48
12/01/2015
492,297.01
06/01/2016
85,912.53
12/01/2016
500,163.80
06/01/2017
77,316.81
12/01/2017
507,500.82
06/01/2018
68.175.40
12/01/2018
517.478.70
06/01/2019
58,403.06
12/01/2019
526,825.65
06/01/2020
47,980.65
12/01/2020
535,522.53
06/01/2021
37,010.96
12/01/2021
546,858.68
06/01/2022
25,411.93
12/01 /2022
560,752.03
06/01/2023
12,965.27
12/01/2023
570,611.21
6,358.265.51 101,530.60
Prior Refunding
Net Cash Flow Debt Service
101,530.60
101,530.60
101.530.60
101,530.60
101,530.60
101,530.60
101,530.60
483,916.39
93,978.48
492,297.01
85,912.53
500,163.80
77,316.81
507,500.82
68,175.40
517,478.70
58.403.06
526,825.65
47,980.65
535,522.53
37,010.96
546,858.68
25,41 1.93
560.752.03
12,965.27
570,61 1.21
100,245.83
85,925.00
85,925.00
95,925.00
85,825.00
480,825.00
79,900.00
484,900.00
73,825.00
488,825.00
67,600.00
497,600.00
59,000.00
504,000.00
50,100.00
515,100.00
40,800.00
520,800.00
31,200.00
531,200.00
21,200.00
541,200.00
10,800.00
550,800.00
6,256,734.91
6,003,520.83
Savings Summary
PV of savings from cash flow
Plus: Refunding funds on hand
Net PV Savings
Sep 21, 2011 9:52 am Prepared by Seattle- Northwest Securities Corp.
Savings
101,530.60
101,530.60
1,284.77
15,605.60
15,605.60
5,605.60
15,705.60
3,091.39
14,078.48
7,397.01
12,087.53
11,338.80
9,716.81
9,900.82
9,175.40
1 3,478.70
5,303.06
11,725.65
7,180.65
14,722.53
5,810.96
15,658.68
4,211.93
19,552.03
2,165.27
19,81 1.21
253,214.08
218,301.17
141.00
218,442.17
Present Value
Annual to 11/01/2011
Savings L 2.3109724%
16,890.37
21,211.20
18,796.99
21,475.49
23,426.33
19,617.63
22,654.10
20.028.71
21.903.18
21,469.64
23,76396
21 ,976.48
253,214.08
101,530.60
101,336.38
1,267.66
15,221.94
15,048.06
5,343.59
14,800.48
2,879.95
12,965.76
6,734.56
10,879.30
10,088.84
8,546.89
8,609.27
7,887.34
11,454.19
6,975.33
9,738.10
5,895.38
11,949.26
4,662.48
12,420.38
3,302.72
15,156.28
1,659.29
15,008.35
218.301.17
(Finance 6.021 1 R03ALT 2,R03ALTGO) Page 2
SOURCES AND USES OF FUNDS
City of Tukwila, Washington
Proposed Refunding of 2003A LTGO Bonds
Refunds Street portion only
Dated Date 11/01 /2011
Delivery Date 11/01/2011
Sources:
Bond Proceeds:
Par Amount
Premium
Other Sources of Funds:
Bond Fund Contribution
Uses:
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Delivery Date Expenses:
Cost of Issuance
Underwriter's Discount
Other Uses of Funds:
Additional Proceeds
Sep 21. 2011 9:52 am Prepared by Seattle- Northwest Securities Corp.
4,605,000.00
481,682.15
5,086,682.15
101,530.60
5,188,212.75
0.75
5,125,836.00
5,125,836.75
30,000.00
32,235.00
62,235.00
141.00
5,188,212.75
(Finance 6.021 Tukwila :TUKWILA- R03ALT_2,R03ALTGO) Page 3
MR
L 2e'
M
Sep 21, 2011 9:52 am Prepared by Seattle Northwest Securities Corp.
(Finance 6.021 Tukwila :TUKWILA- R03ALT_2,R03ALTGO) Page 20
UNREFUNDED BOND DEBT SERVICE
City of Tukwila,
Washington
Proposed Refunding
of 2003A LTGO
Bonds
Refunds
Street portion only
Period
Annual
Ending
Principal
Coupon
Interest
Debt Service
Debt Service
12/01/2011
530,000.00
4.250%
92,336.90
622,336.90
622,336.90
06/01/2012
81,074.40
81.074.40
12/01/2012
555_,000.00
4.250%
81,074.40
636,074.40
717,148.80
06/01/2013
69,280.65
69,280.65
12/01/2013
575,000.00
4.000%
69,280.65
644,280.65
713,561.30
06/01/2014
57,780.65
57,780.65
12/01/2014
217,614.21
3.950%
57,780.65
275,394.86
333,175.51
06/01/2015
53,482.77
53,48277
12/01/2015
226,681.47
4.050%
53,482.77
280,164.24
333,647.01
06/01/2016
48,892.47
48,892.47
12/01/2016
235,748.73
4.150`Yo
48,892.47
284,641.20
333,533.67
06/01/2017
44,000.69
44,000.69
12/01/2017
244,815.99
4.250'%
44,000.69
288,816.68
332,817.37
06/01/2018
38,798.35
38,798.35
12/01/2018
255,696.70
4.350%
38,798.35
294,495.05
333,293.40
06/01/2019
33,236.94
33,236.94
12/01/2019
266,577.41
4.450%
33,236.94
299,814.35
333,051.29
06/01/2020
27,305.60
27,305.60
12/01/2020
277,458.12
4.500%
27,305.60
304,763.72
332,069.32
06/01/2021
21,062.79
21,062.79
12/01/2021
290,152.28
4.550%
21,062.79
311,215.07
332,277.86
06/01/2022
14,461.82
14,461.82
12/01/2022
304,659.90
4.650`%n
14,461.82
319,121.72
333,583.54
06/01 /2023
7,378.48
7,378.48
12/01/2023
317,354.06
4.650%
7,378.48
324,732.54
332,111.02
4,296,758.87
1,085,848.12
5,382,606.99
5,382,606.99
M
Sep 21, 2011 9:52 am Prepared by Seattle Northwest Securities Corp.
(Finance 6.021 Tukwila :TUKWILA- R03ALT_2,R03ALTGO) Page 20