HomeMy WebLinkAboutReg 2017-11-06 Item 3E - Ordinance - $2,350,000 Limited Tax General Obligation (LTGO) Bond to Refund 2014 LTGO Bond Anticipation NoteCOUNCIL AGENDA SYNOPSIS
1 nitials
Meeting Date
Prepared by
Ma y 1-r review
CouneiI review
10/23/17
PMc„P1-12.
❑ Motion
Mtg Date
❑ Resolution
AItg Date
11/06/17
PMc
I: C
0. P.,
CA'IT(,GORY ►1 Di.;cussion
Mtg Date
SPONSOR ❑Council ❑Mayor HR ❑DCD ►lhinance Fire [ITS P&R 111
Police ❑PIF ❑Court
SPONSOR'S The $2.25 million taxable note, issued in 2014 to help finance the purchase of crime ridden
SUmM.\RY motels for urban renewal purposes, matures December 1, 2017. The Council is being asked
to consider and approve a bond ordinance for issuance of a bond to Cashmere Valley Bank
to refinance the maturing 3 -year note.
REVIEW131D BY E C.O.W. Mtg.
E Trans &Infrastructure
DATE: 10/17/17
E CDN Comm
.1 Finance
ITEM INFORMATION
ITEM No.
3.E.
21
STAFF SPONSOR: PEGGY MCCARTHY
ORIGINAL AGENDA DA ,: 10/23/17
AGENDA IPI!M TITLE
Approve the ordinance for $2.35 million bond issuance to refinance the urban
renewal 3 -year note that matures December 1, 2017.
10/23/17
❑ Motion
Mtg Date
❑ Resolution
AItg Date
® Ordinance
AN Date 11/6/17
E Bid Award
ANDate
E Public Hearing
Mtg Date
C Other
Mtg Date
CA'IT(,GORY ►1 Di.;cussion
Mtg Date
SPONSOR ❑Council ❑Mayor HR ❑DCD ►lhinance Fire [ITS P&R 111
Police ❑PIF ❑Court
SPONSOR'S The $2.25 million taxable note, issued in 2014 to help finance the purchase of crime ridden
SUmM.\RY motels for urban renewal purposes, matures December 1, 2017. The Council is being asked
to consider and approve a bond ordinance for issuance of a bond to Cashmere Valley Bank
to refinance the maturing 3 -year note.
REVIEW131D BY E C.O.W. Mtg.
E Trans &Infrastructure
DATE: 10/17/17
E CDN Comm
.1 Finance
Comm. ❑ Public Safety Comm.
Comm. ❑ Planning Comm.
CHAIR: SEAL
❑ Parks
COMMITTEE
•
Arts Comm.
RECOMMENDATIONS:
SP)NSOR/ADMIN.
CO)cDIi'Yi'r',I',
Finance Department
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDI'I'URI REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source: BOND PROCEEDS
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
10/23/17
Forward to Consent Agenda
11/6/17
MTG. DATE
ATTACHMENTS
10/23/17
Informational Memorandum dated 10/11/17
Ordinance in Draft Form
Presentation from PFM
Minutes from the Finance Committee meeting of 10/17/17
11/6/17
Ordinance in final form
21
22
City of Tukwila
Washington
Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AUTHORIZING THE ISSUANCE
AND SALE OF A LIMITED TAX GENERAL OBLIGATION BOND
OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT TO
EXCEED $2,350,000 TO REFUND THE CITY'S OUTSTANDING
LIMITED TAX GENERAL OBLIGATION BOND ANTICIPATION
NOTE, 2014 (TAXABLE NON -REVOLVING LINE OF CREDIT)
AND TO PAY THE COST OF ISSUING THE BOND; PROVIDING
THE FORM OF THE BOND; AUTHORIZING THE SALE OF THE
BOND TO CASHMERE VALLEY BANK; AND PROVIDING FOR
OTHER MATTERS RELATING THERETO; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Tukwila, Washington (the "City"), has outstanding its
Limited Tax General Obligation Bond Anticipation Note, 2014 (Taxable Non -Revolving
Line of Credit), issued on December 9, 2014 pursuant to Ordinance No. 2464 passed
by the City Council (the "Council") on December 1, 2014, as amended by Ordinance
No. 2472 passed by the Council on March 16, 2015 (as amended, the "Note
Ordinance"), in the original principal amount of $2,250,000 (the "Note"); and
WHEREAS, the Note is scheduled to mature on December 1, 2017; and
WHEREAS, the Note Ordinance authorizes the City to prepay all or a portion of the
outstanding principal on the Note in advance of its maturity date at any time; and
WHEREAS, after due consideration it appears that it is in the best interest of the
City to pay at maturity or prepay the Note from proceeds of a limited tax general
obligation bond issued in the principal amount of not to exceed $2,350,000 (the
"Bond"); and
WHEREAS, the City has received the offer of Cashmere Valley Bank (the
"Purchaser") set forth in Exhibit A attached hereto (the "Proposal"), to purchase the
Bond; and
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WHEREAS, it is deemed necessary and advisable that the City accept the
Purchaser's offer and issue the Bond as set forth herein;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Definitions and Interpretation of Terms.
(a) Definitions. As used in this ordinance, the following words shall have the
following meanings, unless the context or use indicates otherwise, words importing the
singular number shall include the plural number and vice versa.
Adjustment Date means the First Interest Rate Adjustment Date and the
Second Interest Rate Adjustment Date.
Bond means the City's Limited Tax General Obligation Bond, 2017 (Taxable),
authorized to be issued pursuant to the terms of this ordinance.
Bond Counsel means Pacifica Law Group LLP, or an attorney at law or a firm
of attorneys, selected by the City.
Bond Register means the registration records for the Bond maintained by the
Bond Registrar.
Bond Registrar means the City Finance Director, whose duties include
registering and authenticating the Bond, maintaining the Bond Register, transferring
ownership of the Bond, and paying the principal of and interest on the Bond.
City means the City of Tukwila, Washington, a municipal corporation duly
organized and existing under the laws of the State of Washington.
City Administrator means the duly appointed and acting City Administrator,
including anyone acting in such capacity for the position, or the successor to the duties
of that office.
City Attorney means the duly appointed and acting City Attorney, including
anyone acting in such capacity for the position, or the successor to the duties of that
office.
City Clerk means the duly appointed and acting City Clerk of the City or the
successor to the duties of that office.
Commission means the United States Securities and Exchange Commission.
Council or City Council means the Tukwila City Council, as the general
legislative body of the City as the same is duly and regularly constituted from time to
time.
Debt Service Fund means the fund or account created pursuant to this
ordinance for the purpose of paying debt service on the Bond.
Finance Director means the duly appointed and acting Finance Director of the
City or the successor to such officer.
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First Interest Rate Adjustment Date means December 1, 2020.
Interest Rate means: (a) from the date of issuance to (but not including) the
First Interest Rate Adjustment Date, a fixed rate of interest of 2.6% per annum; (b) from
the First Interest Rate Adjustment Date to (but not including) the Second Interest Rate
Adjustment Date, a fixed rate of interest of 2.8% per annum; and (c) from the Second
Interest Rate Adjustment Date to the Maturity Date, a fixed rate of interest of 3.0% per
annum.
Maturity Date means the final date of maturity stated in the Bond, which shall
be approximately five years from the date of issuance of the Bond.
Mayor or City Mayor means the elected Mayor of the City, or the successor to
the duties of that office.
Note means the City's Limited Tax General Obligation Bond Anticipation Note,
2014 (Taxable Non -Revolving Line of Credit), issued on December 9, 2014 pursuant to
the Note Ordinance.
Note Ordinance means Ordinance No. 2464 passed by the Council (on
December 1, 2014, as amended by Ordinance No. 2472 passed by the Council on
March 16, 2015.
Proposal means the proposal letter submitted by the Purchaser substantially
in the form attached hereto as Exhibit A.
Purchaser means Cashmere Valley Bank, Cashmere, Washington, and its
successors and assigns.
Registered Owner means the person named whose name the Bond is
registered on the Bond Register.
Rule means the Securities and Exchange Commission's Rule 15c2-12 under
the Securities Exchange Act of 1934, as the same may be amended from time to time.
Second Interest Rate Adjustment Date means December 1, 2021.
State means the State of Washington.
(b) Interpretation. In this ordinance, unless the context otherwise requires:
(1) The terms "hereby," "hereof," "hereto," "herein," "hereunder" and any
similar terms, as used in this ordinance, refer to this ordinance as a whole and not to
any particular article, section, subdivision or clause hereof, and the term "hereafter"
shall mean after, and the term "heretofore" shall mean before, the date of this
ordinance;
(2) Words of the masculine or feminine gender shall mean and include
correlative words of any gender and words importing the singular number shall mean
and include the plural number and vice versa;
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(3) Words importing persons shall include firms, associations, partnerships
(including limited partnerships), trusts, corporations and other legal entities, including
public bodies, as well as natural persons;
(4) Any headings preceding the text of the several articles and sections of this
ordinance, and any table of contents or marginal notes appended to copies hereof,
shall be solely for convenience of reference and shall not constitute a part of this
ordinance, nor shall they affect its meaning, construction or effect; and
(5) All references herein to "articles," "sections" and other subdivisions or
clauses are to the corresponding articles, sections, subdivisions or clauses hereof.
Section 2. Authorization of the Bond.
(a) For the purpose of paying at maturity or prepaying the Note and paying costs of
issuance of the Bond, the City is hereby authorized to issue and sell a limited tax
general obligation bond in the principal amount not to exceed $2,350,000 (the "Bond").
(b) The Bond shall be a general obligation of the City and shall be designated "City
of Tukwila, Washington, Limited Tax General Obligation Bond, 2017 (Taxable)" or other
such designation as set forth in the Bond and approved by the Finance Director. The
Bond shall be dated as of its date of delivery to the Purchaser, shall be fully registered
as to both principal and interest, shall be in one denomination, and shall mature on the
Maturity Date. The Bond shall bear interest from its dated date or the most recent date
to which interest has been paid at the Interest Rate then in effect, as the same may be
adjusted pursuant to the Proposal and set forth herein. The Interest Rate shall reset on
each Adjustment Date, and shall remain in effect until but not including the next
Adjustment Date. Interest on the principal amount of the Bond shall be calculated per
annum on a 30/360 basis, or as otherwise provided in the Bond. Principal of the Bond
shall be payable on the Maturity Date and interest on the Bond shall be paid semi-
annually on June 1 and December 1, beginning June 1, 2018, to the Maturity Date or
prior prepayment.
Section 3. Registration, Exchange and Payments.
(a) Registrar/Bond Registrar. The Finance Director shall act as Bond Registrar.
The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the
Bond if transferred or exchanged in accordance with the provisions of the Bond and this
ordinance and to carry out all of the Bond Registrar's powers and duties under this
ordinance.
(b) Registered Ownership. The City and the Bond Registrar may deem and treat
the Registered Owner of the Bond as the absolute owner for all purposes, and neither
the City nor the Bond Registrar shall be affected by any notice to the contrary.
Payment of the Bond shall be made only as described in subsection (d) below. All such
payments made as described in subsection (d) below shall be valid and shall satisfy the
liability of the City upon the Bond to the extent of the amount so paid.
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(c) Transfer or Exchange of Registered Ownership. The Purchaser shall have
the right at any time to assign, transfer or convey the Bond in whole but no such
assignment, transfer or conveyance shall be effective as against the City unless and
until the Purchaser has delivered to the City prior written notice thereof that discloses
the name and address of the assignee and such assignment, transfer or conveyance
shall be made only to (i) an affiliate of the Purchaser or (ii) banks, wholly-owned direct
or indirect subsidiaries of banks or bank holding companies, insurance companies or
other financial institutions or their affiliates that signs a qualified purchaser letter in
substantially the same form as provided by the Purchaser in connection with the
issuance of the Bond and otherwise satisfactory to Bond Counsel. Nothing herein shall
limit the right of the Purchaser or its assignees to sell or assign participation interests in
the Bond to one or more entities listed in (i) or (ii).
(d) Place and Medium of Payment. Both principal of and interest on the Bond
shall be payable in lawful money of the United States of America. Principal and interest
on the Bond shall be payable by check, warrant, ACH transfer or by other means
mutually acceptable to the Purchaser and the City. Upon final payment of principal and
interest of the Bond, the Registered Owner shall surrender the Bond for cancellation at
the office of the Bond Registrar in accordance with this ordinance.
Section 4. Prepayment. The outstanding principal amount of the Bond may be
prepaid in whole or in part at any time prior to the Maturity Date at a price of par plus
accrued interest to the date of prepayment. The City shall provide at least 15 calendar
days prior written notice of any intended prepayment. If the Bond is prepaid in full in
accordance with this Section 4, interest shall cease to accrue on the date the Bank
receives such prepayment.
Section 5. Form of Bond. The Bond shall be in substantially the form set forth in
Exhibit B, which is incorporated herein by this reference.
Section 6. Execution of Bond.
(a) The Bond shall be executed on behalf of the City with the manual or facsimile
signature of the Mayor, and shall be attested by the manual or facsimile signature of the
Clerk.
(b) Only such Bond as shall bear thereon a Certificate of Authentication in the form
set forth in Exhibit B, 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 Bond so authenticated has been
duly executed, authenticated and delivered hereunder and is entitled to the benefits of
this ordinance.
(c) In case either of the officers who shall have executed the Bond shall cease to
be an officer or officers of the City before the Bond so signed shall have been
authenticated or delivered by the Bond Registrar, or issued by the City, such Bond 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
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the same had continued to be such officers of the City. The Bond may also be signed
and attested on behalf of the City by such persons who at the date of the actual
execution of the Bond, are the proper officers of the City, although at the original date
of such Bond any such person shall not have been such officer of the City.
Section 7. Application of Bond Proceeds. Proceeds of the Bond shall be
distributed as follows:
(a) The amount necessary to pay or prepay the outstanding principal of and
interest on the Note on the date of maturity or prepayment, respectively, plus any
prepayment penalties or related fees, shall be deposited into the Note Account (as
defined in the Note Ordinance) and shall be used within 30 days of the issuance of the
Bond to redeem the Note in accordance with its terms. After the Note is paid in full, the
Note shall be cancelled and delivered to the City.
(b) The remaining proceeds of the Bond shall be used by the City to pay costs of
issuance of the Bond or shall be deposited into the Debt Service Fund.
(c) The Finance Director is hereby authorized to select the date of prepayment (if
any) and to call the Note for prepayment prior to maturity on such date in accordance
with the terms of the Note Ordinance. The Finance Director and the appropriate City
officials are further authorized to execute such documents and to take such actions as
necessary to pay or prepay the Note in accordance with its terms and this ordinance.
Section 8. Pledge of Funds and Credit; General Obligation.
(a) The City hereby authorizes the creation of a fund or account to be used for the
payment of debt service on the Bond (the "Debt Service Fund"). No later than the date
each payment of principal of or interest on the Bond becomes due, the City shall
transmit sufficient funds, from the Debt Service Fund or from other legally available
sources, to the Registered Owner for the payment of such principal or interest. Money
in the Debt Service Fund may be invested in legal investments for City funds.
(b) The City hereby irrevocably covenants and agrees for as long as the Bond is
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 that
will be sufficient, together with other revenues and money of the City legally available
for such purposes, to pay the principal of and interest on the Bond when due.
(c) The City hereby irrevocably pledges that the annual tax provided for herein to
be levied for the payment of such principal and interest shall be within and as a part of
the tax levy permitted to cities without a vote of the people, and that a sufficient portion
of each annual levy to be levied and collected by the City prior to the full payment of the
principal of and interest on the Bond will be and is hereby irrevocably set aside, pledged
and appropriated for the payment of the principal of and interest on the Bond. 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 Bond when due.
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Section 9. Sale of the Bond.
(a) The Bond shall be sold to the Purchaser pursuant to the terms of this
ordinance and the Proposal. The City hereby accepts the Proposal, which is attached
as Exhibit A and incorporated herein by this reference. The Finance Director is hereby
authorized: (a) to approve the principal amount of the Bond; (b) to execute a bond
purchase agreement with the Purchaser; and (c) to agree to any other terms, conditions
and covenants that are in the best interest of the City and in accordance with the
Proposal, so long as the principal amount of the Bond does not exceed $2,350,000 and
the terms of the Bond are otherwise consistent with the terms of this ordinance.
(b) The appropriate City officials, including but not limited to the City Mayor, City
Administrator and the Finance Director, are hereby authorized and directed to do
everything necessary for the prompt issuance, execution and delivery of the Bond and
for the proper application and use of the proceeds thereof.
Section 10. Ongoing Disclosure; Covenants.
(a) Ongoing Disclosure. The Bond is exempt from ongoing disclosure
requirements of the Rule.
(b) Covenants. So long as the Bond is outstanding, the City hereby covenants
and agrees to provide the Registered Owner:
(1) Copies of the City's audited financial statements within a reasonable time
after such statements become available; and
(2) Financial or other information as may be reasonably requested from time
to time.
Section 11. Lost, Stolen or Destroyed Bond. In case the Bond shall be lost,
stolen or destroyed while in the Registered Owner's possession, the Bond Registrar
may at the request of the Registered Owner execute and deliver a new Bond of like
date, number and tenor to the Registered Owner thereof upon the Registered Owner's
paying the expenses and charges of the City and the Bond Registrar in connection
therewith and upon its filing with the City written certification that such Bond was
actually lost, stolen or destroyed and of its ownership thereof. In the case the Bond
shall be lost, stolen, or destroyed while in the Registered Owner's possession, the
Registered Owner may elect upon final payment of principal and interest of the Bond to
surrender a photocopy of the Bond for cancellation at the office of the Bond Registrar
together with written certification that such Bond was actually lost, stolen or destroyed
and of its ownership thereof.
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Section 12. Severability; Ratification. If any one or more of the covenants 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 covenants, 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
Bond. All acts taken pursuant to the authority granted in this ordinance but prior to its
effective date are hereby ratified and confirmed.
Section 13. Payments Due on Holidays. If an interest and/or principal payment
date for the Bond is not a business day, then payment shall be made on the next
business day and no interest shall accrue for the intervening period.
Section 14. Corrections by City Clerk. Upon approval of the City Attorney and
Bond Counsel, the City Clerk is hereby authorized to make necessary corrections to
this ordinance, including but not limited to the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; ordinance numbering and
section/subsection numbering; and other similar necessary corrections.
Section 15. Effective Date. 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 , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Pacifica Law Group LLP, Bond Counsel
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Attachments:
Exhibit A — Proposal — Cashmere Valley Bank
Exhibit B — Form of Bond / Certificate of Authentication and Registration
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Exhibit A
Copy of Purchaser's Proposal
[attached]
A-1
31
City of Tukwila
Limited Tax General Obligation Bond, 2017 (Taxable)
Term Sheet
(Subject to Bank underwriting and credit approval)
September 25, 2017
1. Issuer: City of Tukwila, King County Washington (the "City")
2. Amount: $2,350,000
3. Form: Registered Limited Tax General Obligation Bond, 2017 (Taxable)
(the "Bond") issued by the City and purchased by Cashmere
Valley Bank at private sale.
4. Purpose: Proceeds would be used to refund the City's LTGO Bond
Anticipation Note, 2014 (Taxable) which was used to acquire
certain improved property on Tukwila International Boulevard for
the purpose of redevelopment, and to pay certain costs of Bond
issuance.
5. Bond Terms:
a) Interest Rate and Terms:
The Bond would be structured as a taxable non -amortizing bond
with a final maturity of either 3, 4 or 5 years. The rate of interest for the
first 3 years would be 2.6%. The rate of interest for year 4 would be 2.8%,
and for year 5, 3.0%. Interest would be computed on the basis of a 360 -
day year consisting of twelve 30 -day months. The Bond would be dated
the Date of Delivery and would bear interest from its date. The City may
choose if interest is paid monthly, quarterly or semi-annually.
b) Transferability
Cashmere Valley Bank would hold the Bond with no intent to sell or
transfer. The Bond may be transferred only in whole to a qualified
investor.
32
City of Tukwila
Limited Tax General Obligation Bond 2017 (Taxable)
Page 2
c) Security
The Bond would be a limited tax general obligation supported by the full
faith and credit of the City.
6. Prepayment:
The outstanding principal amount of the Bond may be prepaid in whole or in part
at any time prior to the Maturity Date at par plus accrued interest to the date of
prepayment. The City would provide the Bank with written notice of any
intended prepayment at least 15 days prior to such prepayment date.
7. Fees: The Bank would not charge any fees for the Bond, and does not expect
any legal costs.
8. Additional Terms: The Bond documents would be in the standard forms
customarily required by the Bank for municipal funding and would include
additional terms and conditions not discussed above. The City would provide its
annual financial report to the Bank during the period the Bond is outstanding and
held by the Bank. At the date of closing the Bond, the financial condition and
credit of the City and all other features of this transaction would be as represented
to the Bank without material adverse change.
Please note that this term sheet is for discussion purposes only and does not represent a
commitment on the part of the Bank to lend funds. The Bank agrees to the proposed
schedule of events presented in the Request for Proposals.
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND
CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE
NOT ENFORCEABLE UNDER WASHINGTON LAW.
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34
Exhibit B
Form of Bond
UNITED STATES OF AMERICA
NO. R-1 $
STATE OF WASHINGTON
CITY OF TUKWILA
LIMITED TAX GENERAL OBLIGATION BOND, 2017 (TAXABLE)
DATE OF ISSUANCE: [ , 2017]
MATURITY DATE: ( , 2022]
REGISTERED OWNER: CASHMERE VALLEY BANK, CASHMERE WASHINGTON
PRINCIPAL AMOUNT: MILLION AND DOLLARS
The City of Tukwila, Washington, a municipal corporation organized and existing
under and by virtue of the laws 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, on or before the Maturity Date identified above, the Principal
Amount identified above. This bond shall bear interest on the outstanding principal
balance at the interest rate then in effect (the "Interest Rate"), as follows:
(a) from the Date of Issuance identified above to (but not including) the First
Interest Rate Adjustment Date (December 1, 2020), a fixed rate of interest of
2.6% per annum,
(b) from the First Interest Rate Adjustment Date to (but not including) the Second
Interest Rate Adjustment Date (December 1, 2021), a fixed rate of interest of
2.8% per annum, and
(c) from the Second Interest Rate Adjustment Date to the Maturity Date, a fixed
rate of interest of 3.0% per annum.
Interest on this bond shall accrue from the Date of Issuance until paid and shall be
computed per annum on the principal amount outstanding on a 30/360 basis. The
Interest Rate shall reset on each Adjustment Date as described above, and shall remain
in effect until but not including the next Adjustment Date. Principal of this bond shall be
payable on the Maturity Date and interest on this bond shall be paid semi-annually on
June 1 and December 1, beginning June 1, 2018, to the Maturity Date or prior
prepayment.
B-1
35
36
Both principal of and interest on this bond shall be payable in lawful money of the
United States of America. Principal and interest on this bond shall be payable by check
or warrant or by other means mutually acceptable to the Registered Owner and the City.
Upon final payment of principal and interest of this bond, the Registered Owner shall
surrender this bond for cancellation at the office of the Bond Registrar in accordance
with Ordinance No. of the City (the "Bond Ordinance").
This bond is issued pursuant to the Bond Ordinance to redeem the City's Limited
Tax General Obligation Bond Anticipation Note, 2014 (Taxable Non -Revolving Line of
Credit) and to pay costs of issuance for this bond. Capitalized terms used in this bond
have the meanings given such terms in the Bond Ordinance.
The City may prepay this bond on any date upon providing at least 15 calendar
days prior written notice to the Registered Owner, as further provided in the Bond
Ordinance.
The City has in the Bond Ordinance authorized the creation of a fund to be used for
the payment of debt service on this bond, designated as the Debt Service Fund. The
Debt Service Fund shall be drawn upon for the sole purpose of paying the principal of
and interest on this bond.
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 the City without a vote of the electorate, upon all the property subject
to taxation in amounts sufficient, together with other money legally available therefor, to
pay the principal of and interest on this bond as the same shall become due. The full
faith, credit and resources of the City are hereby irrevocably pledged for the annual levy
and collection of such taxes and the prompt payment of such principal and interest.
Owners of this bond do not have a security interest in particular revenues or assets
of the City. This bond is not a debt or indebtedness of the State of Washington, or any
political subdivision thereof other than the City.
This bond shall not be valid or become obligatory for any purpose or be entitled to
any security or benefit under the Bond Ordinance until the Certificate of Authentication
hereon shall have been manually signed by or on behalf of the Bond Registrar or its
duly designated agent.
This bond is issued pursuant to the Constitution and laws of the State of
Washington, and duly adopted ordinances of the City. This bond is transferable upon
compliance with the conditions set forth in the Bond Ordinance.
It is hereby certified that all acts, conditions and things required by the Constitution
and statutes of the State of Washington to exist, to have happened, been done and
performed precedent to and in the issuance of this bond exist, have happened, been
done and performed and that the issuance of this bond does not violate any
constitutional, statutory or other limitation upon the amount of bonded indebtedness that
the City may incur.
B-2
IN WITNESS WHEREOF, the City of Tukwila, Washington, has caused this bond to
be executed by the manual or facsimile signature of the Mayor of the City Council and
attested by the manual or facsimile signature of the Clerk, as of this day of
, 2017.
[SEAL] CITY OF TUKWILA, WASHINGTON
By
Allan Ekberg, Mayor
ATTEST:
Christy O'Flaherty, MMC, City Clerk
CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This bond is the City of Tukwila, Limited Tax General Obligation Bond, 2017
(Taxable) described in the within mentioned Bond Ordinance and is registered in the
name of the Registered Owner on the books of the City, in the office of the City Finance
Director (the "Bond Registrar"), as to both principal and interest, as noted in the
registration blank below. All payments of principal of and interest on this bond shall be
made by the City to the Registered Owner from the Debt Service Fund.
Date of Name and Address of Signature of
Registration Registered Owner Bond Registrar
, 2017
B-3
Finance Director
37
CERTIFICATE
I, the undersigned, the Clerk of the City of Tukwila, Washington (the "City"), DO
HEREBY CERTIFY:
1. That the attached Ordinance No. (the "Ordinance") is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the
City held at the regular meeting place thereof on November 6, 2017 as that ordinance
appears in the minute book of the City; and the Ordinance will be in full force and effect
five (5) days after its passage and publication as provided by law; and
2. That the meeting was duly convened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was
given; that a legal quorum was present throughout the meeting and a legally sufficient
number of members of the Council voted in the proper manner for the passage of said
Ordinance; that all other requirements and proceedings incident to the proper passage
of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that
I am authorized to execute this certificate.
3. That Ordinance No. has not been amended, supplemented or
rescinded since its passage and is in full force and effect and that I am authorized to
execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand this day
of , 2017.
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CITY OF TUKWILA, WASHINGTON
Christy O'Flaherty, MMC, City Clerk