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HomeMy WebLinkAboutOrd 1683 - $6,000,000 Limited Tax General Obligation Bonds - Tukwila Community Center / Fire Station #53 CITY OF TUKWILA, WAS HINGTON ORDINANCE NO. 16 AN ORDINANCE of the City of Tukwila, Washington, relating to contracting indebtedness; authorizing the issuance of limited tax general obligation bonds of the City for general City purposes to provide funds with which to pay a part of the cost of acquiring and constructing a community center and replacing Fire Station No. 53 and the financing thereof; authorizing the issuance and sale of bond anticipation notes or temporary loans from available City funds pending the issuance of those bonds; and providing for the establishment of a note redemption fund and a construction fund. WHEREAS, the City of Tukwila, Washington (the "City is in need of acquiring and constructing a community center at the Allentown site and replacing Fire Station No. 53 (collectively the "Project the combined estimated cost of which is $9,300,000, and the City does not have available sufficient funds to pay all of that cost; and WHEREAS, the City Council deems it to be in the best interests of the City to borrow money by the issuance of limited tax general obligation bonds and, pending the issuance of those bonds, issue short -term obligations in accordance with the provisions of Chapter 39.40 RCW or make temporary loans from available City funds for the purpose of providing a part of the funds with which to pay the costs of carrying out the Project; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN as follows: 0109541.01 Section 1. Debt Capacity. The assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the calendar year 1994 is $2,524,980,907, and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds in the principal amount of $450,000 incurred within the limit of up to 3/4 of 1% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein, unlimited tax general obligation bonds in the principal amount of -0- incurred within the limit of up to 2 -1/2% of the value of the taxable property within the City for capital purposes only, unlimited tax general obligation bonds in the principal amount of -0- incurred within the additional limit of up to 2 -1/2% of the value of the taxable property within the City for utility purposes and unlimited tax general obligation bonds in the principal amount of $680,000 incurred within the additional limit of up to 2 -1/2% of the value of the taxable property within the City for parks and open space purposes issued pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which bonds are authorized herein to be issued is $6,000,000. Section 2. Authorization of Bonds. The City shall borrow money on the credit of the City and issue limited tax general obligation bonds evidencing that indebtedness in the amount of $6,000,000 for general City purposes to provide the funds to pay a part of the cost of acquiring and constructing the community center and replacing Fire Station No. 53 (the "Project and to pay the 0109541.01 2 costs of issuance and sale of the bonds and Notes authorized by this ordinance "costs of financing The general indebtedness to be incurred shall be within the limit of up to 3/4 of 1% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. Section 3. Description of Notes. There is created in the office of the City Finance Director a special fund designated as the Limited Tax General Obligation Bond Anticipation Note Fund (the "Note Fund For the purposes of providing a part of the funds with which to pay the costs of the Project pending the receipt of the proceeds of the issuance and sale of the limited tax general obligation bonds authorized herein, the City Finance Director is authorized on behalf of the City to issue and sell the City's Limited Tax General Obligation Bond Anticipation Notes (the "Notes in the principal amount of not to exceed $6,000,000. The Notes may bear a fixed rate or rates or a variable rate or rates of interest which may be based on a bank prime or the most recent prime rate of interest published in the Wall Street Journal, but in any event shall not exceed a net effective interest rate of 10% per annum. The Notes shall be dated as of the date of their issuance and shall not be outstanding, together with any other notes issued to redeem the same, for longer than the time permitted by Chapter 39.50 RCW. The Notes shall be registered if so required in order to exempt the interest thereon from federal income taxation, and the Finance Director may designate the registrar depending on the volume of 0109541.01 3 certificates required. The Notes may be paid from the proceeds of limited tax general obligation bonds from the proceeds of the issuance of other short term obligations, or from other City funds made available for that purpose. The Notes shall be general obligations of the City and shall be drawn on a special note redemption fund created for that purpose by the Finance Director. The Notes may be subject to prior redemption, may be sold at a discount, at par, or at a premium and shall be in such denominations and bear such other covenants respecting payment as the Finance Director may determine. The Notes shall be executed by the Mayor and City Clerk, either or both of whose signatures may be in facsimile. Both principal of and interest on the Notes shall be payable in lawful money of the United States of America at the office or offices of the registrar. The City Council finds and determines that the maximum rate of interest and the standards for the index for the variable interest rates established in this ordinance are in the best interest of the City. Section 4. Pledge of Taxes. For as long as any of the limited tax general obligation bonds and Notes 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 qualified voters of the City on all of the taxable property within the City in an amount sufficient, together with the proceeds of such bonds (in the case 0109541.01 4 of payment of the Notes) and other money legally available and to be used therefor, to pay when due the principal of and interest on those bonds and Notes, and 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 5. Form and Execution of Notes. The Notes shall be printed, lithographed or typed on good bond paper 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. In the case of registered Notes, only Notes bearing a Certificate of Authentication substantially in the following form, manually signed by the note registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Notes so authenticated have been duly 0109541.01 This Note is one of the fully registered City of Tukwila, Washington, Limited Tax General Obligation Bond Anticipation Notes 19 authorized by Ordinance No. Bond Registrar By 5 executed, authenticated and delivered and are entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Notes ceases to be an officer of the City authorized to sign bonds or Notes before the Notes bearing his or her facsimile signature are authenticated or delivered by the note registrar or issued by the City, those Notes nevertheless may be authenticated, delivered and issued 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 or Notes. Any Note also may be signed on behalf of the City by any person who, on the actual date of signing of the Note, is an officer of the City authorized to sign bonds or Notes, although he or she did not hold the required office on the date of issuance of the Notes. Section 6. Preservation of Tax Exemption for Interest on Notes. The City covenants that it will take all actions necessary to prevent interest on the Notes 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 Notes or other funds of the City treated as proceeds of the Notes at any time during the term of the Notes which will cause interest on the Notes to be included in gross income for federal income tax purposes. The City also covenants that it will, to the extent the arbitrage rebate requirement of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code'), is applicable to the Notes, take all actions necessary to comply (or to be treated as having 0109541.01 6 complied) with that requirement in connection with the Notes, 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. The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section 7. Designation of Bonds as "Oualified Tax Exempt Obligations." The Finance Director is authorized to determine and certify if such is the case, that (a) the Notes will not be "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) which the City and any entity subordinate to the City (including any entity which the City controls, which derives its authority to issue tax exempt obligations from the City or which issues tax exempt obligations on behalf of the City) will issue during the calendar year in which the Notes are issued will not exceed $10,000,000; and (c) the amount of tax exempt obligations, including the Notes, 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 Notes are issued does not exceed $10,000,000 and, if so, designate the Notes as "qualified tax exempt obligations" for the purposes of Section 265(b) (3) of the Code. 0109541.01 7 Section 8. Debosit of Note Proceeds. The City Finance Director may establish in his office a special fund designated as the Community Center and Fire Station Construction Fund, (the "Construction Fund with such accounts as he may deem appropriate. The principal proceeds and premium, if any, received from the sale and delivery of the Notes shall be paid into the Construction Fund and used for the purposes specified in Section 2 of this ordinance. Until needed to pay the costs of the Project and costs of financing of the Notes, the City may invest principal proceeds temporarily in any legal investment, and the investment earnings may be retained in the Construction Fund and be spent for the purposes of that fund except that earnings subject to a federal tax or rebate requirement may be withdrawn from the Construction Fund and used for those tax or rebate purposes. All taxes collected for and allocated to the payment of the principal of and interest on the Notes shall be deposited in the Note Fund. Section 9. Preliminary Official Statement. For the sole purpose of the Note purchaser's compliance with Securities and Exchange Commission Rule 15c2- 12(b)(1), the Finance Director, if so satisfied may "deem final" the Preliminary Official Statement prepared in connection with the sale of the Notes as of its date, except for the omission of information as to offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, maturity dates, options of redemption, delivery dates, ratings and other terms of the Notes dependent on such matters. 0109541.01 8 and selling the Notes, the Finance Director is authorized to provide for temporary loans to the Construction Fund from other available funds of the City pending the issuance of the bonds authorized by this ordinance. The Finance Director is authorized and designated to declare on behalf of the City its reasonable official intent to reimburse the expenditures of those loan proceeds on the Project from the proceeds of such bonds. All such declarations must comply with the applicable federal reimbursement regulations. Section 11. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five days following its publication as required by law. PASSED by the City Council and APPROVED by the Mayor of the City of Tukwila, Washington, at a regular open public meeting thereof, this /j day of December, 1993. ATTEST: Pieu.c_e• Cl Clerk APPROVED AS TO FORM: /T �///7 City Attorney 0109541.01 Section 10. Interfund Loans. As an alternative to issuing 9 -4 /I Mayor 1, M7o /E i z/ City of Tukwila, Washington, certify that the attached copy of Ordinance No. /6_13 is a true and correct copy of the original ordinance passed on the e; day of December, 1993, as such ordinance appears on the Minute Book of the City. DATED this -day of December, 1993. 0109541.01 City Clerk City Clerk of the SUMMARY OF ORDINANCE NO.. AN ORDINANCE OF THE CITY OF TUKWILA, WASHINGTON, RELATING TO CONTRACTING INDEBTEDNESS; AUTHORIZING THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY FOR GENERAL CITY PURPOSES TO PROVIDE FUNDS WITH WHICH TO PAY A PART OF THE COST OF ACQUIRING AND CONSTRUCTING A COMMUNITY CENTER AND REPLACING FIRE STATION NO. 53 AND THE FINANCING THEREOF; AUTHORIZING THE ISSUANCE AND SALE OF BOND ANTICIPATION NOTES OR TEMPORARY LOANS FROM AVAILABLE CITY FUNDS PENDING THE ISSUANCE OF THOSE BONDS; AND PROVIDING FOR THE ESTABLISHMENT OF A NOTE REDEMPTION FUND AND A CONSTRUCTION FUND. 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 its meeting of /2 Jane E. Cantu, City Clerk