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HomeMy WebLinkAboutOrd 1413 - Water and Sewer Revenue Bonds for Waterworks Utility 1V 1908 CITY OF TUKWILA WASHINGTON is 3 g.E Lei) ORDINANCE NO. AN ORDINANCE OF THE CITY OF TUKWILA, WASHINGTON, 57 RELATING TO THE WATERWORKS UTILITY OF THE CITY, INCLUDING THE SYSTEMS OF SEWERAGE AS A PART THEREOF; AMENDING SECTIONS 4, 6 AND 9 OF ORDINANCE NO. 1408, PASSED NOVEMBER 24, 1986, AND SECTION 7 OF ORDINANCE NO. 334. WHEREAS, the City Council, by Ordinance No. 1408, authorized the issuance by the City of $3,600,000 principal amount of Water and Sewer Revenue Bonds, 1986, to be insured by Municipal Bond Insurance Association (MBIA), and WHEREAS, as a condition to such insurance MBIA requires that the City amend Ordinance No. 1408 and Ordinance No. 334. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Section 4 of Ordinance No. 1408 is amended to read as follows: Section 4. For the purpose of providing the funds required to (1) pay the principal of and interest on the Outstanding Note, (2) pay the cost of carrying out a portion of the Plan of Additions and Betterments and (3) pay the costs of issuance of the Bonds, the City shall issue the Bonds in the aggregate principal amount of $3,600,000. The bonds shall be dated December 1, 1986; shall be in the denomination of $5,000 or any integral multiple thereof within a single maturity; shall be numbered separately in the manner and with any additional designation as the Bond Registrar deems necessary for purpose of iden- tification; and shall bear interest at the rates set forth below (computed on the basis of a 360 -day year of twelve 30 -day months), payable on December 1, 1987, and semiannually thereafter on each succeeding June 1 and December 1. The bonds shall be payable solely out of the Bond Fund, and shall be a valid claim of the owner thereof only as against such Bond Fund and the amount of the gross revenues of the waterworks utility of the City pledged to such fund and shall not be general obligations of the City. The Bonds shall bear interest at the rates and mature on December 1 in years and amounts as follows: Maturity Principal Interest Years Amounts Rates 1987 $105,000 3.90% 1988 105,000 4.50 1989 110,000 4.75 1990 115,000 5.00 1991 125,000 5.20 1992 130,000 5.40 1993 135,000 5.60 1994 145,000 -5n-4.55.70 1995 155,000 5.90 1996 160,000 6.10 1997 170,000 6.25 1998 180,000 6.40 1999 195,000 6.50 2000 205,000 6.70 2001 220,000 6.80 2002 235,000 6.90 2003 250,000 6.95 2004 270,000 7.00 2005 285,000 7.00 2006 305,000 7.00 If any Bond is not redeemed upon proper presentment at its maturity or call date, the City shall be obligated to pay interest at the same rate for each such Bond from and after its maturity or call date until such Bond, both principal and interest, shall have been paid in full or until sufficient money for such payment in full is on deposit in the Bond Fund and such Bond has been called for payment. Upon surrender thereof to the Bond Registrar, Bonds 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. Such exchange or transfer shall be 2 without cost to the owner or transferee. The Bond Regis- trar shall not be obligated to transfer or exchange any Bond during the fifteen days preceding any principal or redemption date. The Bonds shall be issued only in registered form as to both principal and interest on the books and records maintained by the Bond Registrar (the "Bond Register The Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amounts and numbers of Bonds held by each owner. 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 mailed to the registered owners at the addresses appearing on the Bond Register on the 15th day of the month preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at either of the principal offices of the Bond Registrar at the option of such owners. Section 2. Section 6 of Ordinance No. 1408 is amended to read as follows: Section 6. The Bond Fund heretofore has been created by Ordinance No. 334 and has been divided into the Prin- cipal and Interest Account and the Reserve Account. So long as any Bonds are outstanding against the Bond Fund, the City Treasurer shall set aside and pay into the Bond Fund out of the gross revenues of the waterworks utility of the City, in addition to the amounts required to be paid and retained therein by Ordinance No. 334 for the 1961 Bonds, Ordinance No. 387 for the 1963 Bonds, Ordinance No. 422 for the 1965 Bonds and Ordinance No. 748 for the 1972 Bonds, certain fixed amounts without regard to any 3 fixed proportion, on or before the 20th day of each month, as follows: (a) Into the Principal and Interest Account, the accrued interest received from the sale of the Bonds and, commencing with the month of December, 1986, an amount equal to at least 1 /12th of the principal and interest to become due and payable on the Bonds on December 1, 1987, and thereafter and continu- ing as long as any of the Bonds are outstand- ing, 1 /6th of the next ensuing requirements for interest and 1 /12th of the principal to become due and payable on the next principal payment date on all of the Bonds then out- standing; and (b) Into the Reserve Account, monthly, beginning with the month of December, 1986, approximately equal deposits until a total additional reserve shall be accumulated therein equal to the average annual debt service of the Bonds, which total additional reserve shall be accumulated by no later than December 1, 1991. The Reserve Account may be accumulated from any other money which the City may have available for such purpose, in addition to using such revenue therefor. The City further agrees that when the required amounts have been paid into the Reserve Account, it will, at all times, except for withdrawals therefrom as authorized herein, maintain those amounts therein until there is a sufficient amount in the Bond Fund, including the Reserve Account therein, to pay the principal of and interest on all outstanding bonds payable out of the Bond Fund to the final maturity thereof, at which time need be made into the Bond Fund. In the event that there shall be a deficiency in the Principal and Interest Account in the Bond Fund to meet maturing installments of either principal or interest, as the case may be, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom for that purpose. Any deficiency created in the Reserve 4 no further payments Account by reason of any such withdrawal shall then be made up from the gross revenues of the waterworks utility of the City first available after making necessary provision for the required payments into the Principal and Interest Account. The money in the Reserve Account otherwise shall be held intact and may be applied against the last out- standing bonds payable out of the Bond Fund. All money in the Reserve Account may be kept on deposit in the official bank depository of the City or may be invested and reinvested in Permitted Investments at a fixed price and maturing no later than one month prior to the final maturity date of the last outstanding bonds payable out of the Bond Fund. In no event shall any money in the Bond Fund or any other money reasonably expected to be used to pay principal of and /or interest on the Bonds be invested in other than Permitted Investments or at a yield which would cause the Bonds to be arbitrage bonds within the meaning of Section 148 of the United States Internal Revenue Code of 1986, as amended or replaced and redesig- nated, and applicable regulations thereunder. If the required reserve is deposited in the Reserve Account, interest earned on any such investment or on such bank deposit in the Reserve Account attributable to the Bonds or Future Parity Bonds shall be deposited into the Principal and Interest Account and used to pay the next interest or principal coming due on bonds payable from the Bond Fund. For the purpose of this section, Permitted Investments shall mean legal investments permitted the City which are (1) direct obligations of the United States of America (in the form of obligations issued or held in book -entry form on the books of the Department of the Treasury or obligations the principal of an interest on which are 5 unconditionally guaranteed by the United States of America; (2) unless otherwise specified within this paragraph, bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies (full faith and credit agencies): U. S. Export Import Bank (direct obligations or fully guaranteed certificates of beneficial ownership), Farmers Home Administration (certificates of beneficial ownership), Federal Financing Bank, Federal Housing Administration (debentures), General Services Administration (partici- pation certificates), Government National Mortgage Association (GNMA- guaranteed- mortgage- backed bonds and GNMA- guaranteed -pass- through obligations), U. S. Maritime Administration (guaranteed Title XI financing), New Communities Debentures (U. S. Government guaranteed debentures), and U. S. Public Housing Notes and Bonds (U. S. government guaranteed public housing notes and bonds); (3) unless otherwise specified within this paragraph, bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following U. S. govern- ment agencies (non -full faith and credit agencies): Federal Home Loan Bank System (senior debt obligations), Federal Home Loan Mortgage Association (participation certificates), Federal National Mortgage Association (mortgage backed securities and senior debt obligations), and Student Loan Marketing Association (senior debt obliga- tions); and (4) certificates of deposit, savings accounts or deposit accounts which are fully secured by the FDIC or FSLIC. The City Council declares that in fixing the amounts to be paid into the Bond Fund it has considered and had due regard for operating and maintenance expenses of the waterworks utility of the City and has not set aside into the Bond Fund a greater amount or proportion of the gross revenues of the waterworks utility of the City than in its judgment will be available over and above such operating and maintenance expenses and the debt service and reserve requirements for the presently outstanding Outstanding Parity Bonds. Section 3. Section 9 of Ordinance No. 1408 is amended to read as follows: Section 9. The City reserves the right to issue Future Parity Bonds which will constitute a lien and charge upon the gross revenues of the waterworks utility of the City on a parity with the Outstanding Parity Bonds and the Bonds if the conditions set forth in Section 7 of Ordinance No. 334 are met and complied with at the time of the issuance of such Future Parity Bonds, which section is by this reference incorporated herein and made a part hereof, except that for the Bonds and any Future Parity Bonds, subsection (c) of such Section 7 shall read as follows: (c) The ordinance authorizing the issuance of such additional bonds shall provide that such additional bonds shall provide that an amount equal to the average annual debt service of the additional bonds proposed to be issued shall be accumulated as a reserve in the Bond Fund, said amounts to be accumulated by monthly deposits commencing not later than one month after the date of issu- ance of the additional bonds and to be accumu- lated within five years after the date of issuance of such bonds, and said reserve to be maintained in such amounts so long as any of those additional bonds are outstanding to the last maturity thereof. In the case of parity refunding bonds the ordinance authorizing the issuance of such refunding bonds shall provide that the money in the Reserve Account for the bonds to be refunded shall be transferred to the 'Reserve Account' in the Bond Fund, or that the moneys in the 'Reserve Account' for the bonds to be refunded shall be used to redeem such bonds, in which event an amount equal to the average annual debt service for the refunding bonds proposed to be issued 7 shall be accumulated as a reserve in the same manner and within the same times as set forth herein for additional revenue bonds. and there shall be added a new subsection (d) as follows: (d) The ordinance authorizing the issuance of such Future Parity Bonds shall provide for the creation of a sinking fund account in the Bond Fund for any Term Bonds to be issued and for regular payments to be made into such account for the payment of principal of such Term Bonds on or before their maturity, or, as an alternative, for the mandatory redemption of such Term Bonds prior to their maturity date from money on deposit in the Principal and Interest Account. Section 4. Section 7, subparagraph (b) of Ordinance No. 334 is amended to read as follows, except that this amend- ment shall be effective only upon the payment and redemption of all Outstanding Parity Bonds: (b) The historical gross revenues of the waterworks utility of the Town, including any water and sanitary sewage disposal service surcharge payable under any Agreement between the Town and any third party, for any twelve consecutive months out of the immediately preceding fifteen months' period adjusted to reflect (1) a year's net income from each customer of the waterworks utility of the Town connected to such utility at the end of that twelve -month period who has not been a customer for the entire twelve -month period, (2) the additional revenue, from whatever source and of whatever nature, anticipated to be received from the improvement in connection with which additional water and sewer revenue bonds are to be issued, (3) revenue to be derived from any customer under any xecuted contract for water and /or sewer service which revenue was not included in the historical gross revenues of the waterworks utility, and (4) the engineer's estimate of the gross revenues to be derived by the City from customers within improved property available to commit to any additions to and improvements and extensions of the City's waterworks utility to be paid out of the proceeds of the sale of the Future Parity Bonds (as defined in Ordinance No. 1408) or other additions to and improvements and betterments of City's water- works utility then under construction and not fully connected to that waterworks utility when such additions, improvements and betterments are com- pleted and connected, shall be deemed sufficient, after the payment of normal operation and main- tenance costs (adjusted to reflect actual or reasonably anticipated changes in those operation vnd maintenance costs subsequent to that twelve- month period) and state and federal taxes, to equal at least 1.35 times the average annual principal and interest requirements of all then outstanding 8 water and sewer revenue bonds, including the Bonds and of the addi- tional or refunding bonds proposed to be so issued, but except the principal requirements of any term bond maturity year or years, as defined in Section 8 of this Ordinance No. 334 of any bonds payable out of the Bond Fund, such determination of the sufficiency of the revenues shall be made and certified to by an independent pro- fessional registered engineer experienced in municipal utilities and licensed to practice in the State of Washington; except, that if such additional bonds proposed to be so issued are for the sole purpose of refunding water and sewer revenue bonds, such certification of coverage shall not be required if the amount required for payment of the principal and interest in each year for the refunding bonds is not increased over the amount required for the bonds to be refunded thereby and the maturities of said refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby; and Section 5. All actions taken, including, the issuance of the Water and Sewer Revenue Bonds, 1986, prior to the effective date of this ordinance are ratified, confirmed and approved, and the provisions of this ordinance shall be binding on the City with respect to those bonds. Section 6. This ordinance shall be in full force and effect five (5) 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 /.6 day of 1986. Appro ed as to For Offi e of the Cit y FILED WITH THE C.YY CLERK: /7 PASSED BY THE CITY COUNCIL: /_,2 /5 P PUBLISHED RECORD CHRONICLE: EFFECTIVE DATE: ORDINANCE NO. /4/3 9 APPROVED: 13a' y %L Van Dusen, Mayor" Attest /Authenticated "Maxine Anderson, City Clerk 12/15/86 JEH /naa SUMMARY OF ORDINANCE NO. AN ORDINANCE OF THE CITY OF TUKWILA, WASHINGTON, RELATING TO THE WATERWORKS UTILITY OF THE CITY, INCLUDING THE SYSTEMS OF SEWERAGE AS A PART THEREOF; AMENDING SECTIONS 4, 6 AND 9 OF ORDINANCE NO. 1408, PASSED NOVEMBER 24, 1986, AND SECTION 7 OF ORDINANCE NO. 334. On �'s�c/`- 1986, the City Council of the City of Tukwila passed Ordinance No. /4/4g which provides as follows: Section 1. Amends Section 4 of Ordinance No. 1408 to change the interest rate for 1994 on the bonds issued under that ordinance from 5.75% to 5.70%. Section 2. Amends Section 6 of Ordinance No. 1408 to clarify those items which constitute permitted investments from the reserve account. Section 3. Amends Section 9 of Ordinance 1408 to set forth conditions for future parity bonds and to require a sinking fund account. Section 4. Amends Section 7(b) of Ordinance No. 334 to set forth adjustments in historical gross revenues of the waterworks utility to become effective upon payment and redemption of outstanding parity bonds. Section 5. Ratifies prior actions with respect to Water and Sewer Revenue Bonds, 1986, and makes such bonds subject to the terms of this ordinance. Section 6. Establishes an effective date. The full text of this ordinance will be mailed without charge to anyone who submits a written request to the City Clerk of the City of Tukwila for a copy of the text. APPROVED by the City Council at their meeting of ti 1986 Publish: Valley Daily News December 19, 1986 7 CITY CLERK, MAXINE ANDERSON