HomeMy WebLinkAboutOrd 1938 - $3,500,000 Limited Tax General Obligation Bonds - Foster Golf Course Improvements
Ordinance No. 1938
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, RELATING TO CONTRACTING
INDEBTEDNESS; AUTHORIZING THE ISSUANCE OF LIMITED
TAX GENERAL OBLIGATION BONDS; AUTHORIZING CITY
FINANCE DIRECTOR TO CONTRACT FOR THE ISSUANCE OF A
LIMITED TAX GENERAL OBLIGATION BOND ANTICIPATION
NOTE OR NOTES IN THE AGGREGATE AMOUNT OF NOT TO
EXCEED $3,500,000, TO PROVIDE FUNDS FOR CERTAIN
IMPROVEMENTS AT THE FOSTER GOLF COURSE INCLUDING
A NEW CLUBHOUSE, PARKING, COURSE IMPROVEMENTS,
MAINTENANCE FACILITY, AND OTHER FACILITY UPGRADES;
PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, the City of Tukwila, Washington (the "City "), is in need of making certain
improvements at the Foster Golf Course including a new clubhouse, parking, course
improvements, maintenance facility, and other minor facility upgrades (the "Project "), the
estimated cost of which is $3,500,000, and the City does not have available sufficient funds to
pay the cost; and
WHEREAS, the City Council has determined it to be in the best interest of the City to
provide general authority for the City Finance Director to borrow money by the issuance of
bonds, and pending the issuance of those bonds or the availability of other sources of
repayment, issue short -term obligations in accordance with the provisions of chapter 39.50
RCW for the purpose of providing the funds with which to pay the costs and expenses
associated with the Project;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. 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 2000 is
approximately $2,750,000,000, and the City has outstanding general indebtedness evidenced
by limited tax general obligation notes in the principal amount of $15,200,000 incurred within
the limit of up to 1-1/2% of the value of the taxable property within the City permitted for
general municipal purposes without a vote of the qualified voters therein, and has no
outstanding general indebtedness evidenced by unlimited tax general obligation bonds
incurred within the limit of up to 2 -1/2% of the value of the taxable property within the City
for capital purposes only. The amount of indebtedness for which bonds are authorized herein
to be issued is $3,500,000.
Section 2. Authorization of Bonds. The City authorizes the issuance and sale of limited
tax general obligation bonds of the City in the aggregate principal amount of not to exceed
$3,500,000 for the purpose of financing the Project. Such bonds shall be issued in one or more
series, at such times as the City shall deem advisable, shall be in such denomination and form,
shall be dated, shall bear such interest rate or rates, shall be payable at such time or times, shall
have such option of payment prior to maturity, shall provide for additional funds and
accounts and shall contain and be subject to such provisions and covenants as hereafter shall
be provided by ordinance.
Bond Acq -Golf Rvsd 10 -00 1
Section 3. Authorization of Note and Authority of City Finance Director.
A. For the purpose of providing the funds with which to pay the costs of the Project
pending receipt of the issuance and sale of the bonds authorized herein or other money of the
City legally available therefore, and pay costs of issuing a limited tax general obligation bond
anticipation note or notes "the "Note the City Finance Director is authorized to provide for
the issuance and sale of a Note or Notes in the aggregate principal amount of not to exceed
$3,500,000. Each Note shall be dated the date of issuance, shall be issued only in registered
form, shall be numbered with any additional designation as the Note Registrar deems
necessary for purpose of identification; may bear a fixed or variable rate not to exceed six
percent (6 and shall not be outstanding, together with any other short -term obligations
issued to redeem the same, for longer than three years.
B. The City Council finds and determines that the maximum rate of interest for rates
established in this ordinance are in the best interest of the City.
Section 4. Payment of Note. The Note shall be payable solely out of the redemption
funds created in relation thereto in the office of the City Treasurer. Both principal of and
interest on the Note shall be payable in lawful money of the United States of America solely
from the proceeds of bonds or of other short -term obligations to be deposited in such fund or
from other money legally available and to be used therefor, and the City irrevocably pledges
to pay and redeem the Note from the proceeds of a sufficient amount of bonds or additional
short -term obligations, or from other City funds legally made available for that purpose. The
Note 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 and
such other terms and conditions as the City Finance Director may determine. The final
installment of principal, plus any accrued interest, on the Note at maturity or prior repayment is
payable at the office of the City Treasurer, who is appointed Note Registrar for the Note, in
Tukwila, Washington, upon presentation and surrender of the Note.
Section 5. Pledge of Taxes. For as long as any Note is 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 principal of and interest on the Note, 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 6. Form and Execution.
A. Each Note shall be printed, lithographed, typed or multicopied on good bond paper
in a form consistent with the provisions of this ordinance, shall be signed by the Mayor and
City Clerk, which signatures may be manual or in facsimile, and shall have the seal of the City
or a facsimile reproduction thereof impressed or printed thereon.
B. The Note shall bear thereon a Certificate of Authentication substantially in the
following form, manually signed by the Note Registrar, and only if so executed shall the Note
be valid or obligatory for any purpose or entitled to the benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This Note is the fully registered City of Tukwila, Washington, Limited Tax General
Obligation Bond Anticipation Note, 2000, described in the Note Ordinance.
CITY OF TUKWILA, WASHINGTON
Ce y l °tiJ/JLe
City Treasurer, Note Registrar
C. The authorized signing of a Certificate of Authentication shall be conclusive evidence
that the Note so authenticated has been duly executed, authenticated and delivered and is
entitled to the benefits of this ordinance.
Bond Acq -Golf Rvsd 10 -00 2
Section 7. Registration and Transfer of Note; Note Register.
A. Each Note shall be issued only in registered form as to both principal and interest
and recorded on the books or records maintained by the Note Registrar (the "Note Register
The Note Register shall contain the name and mailing address of the owner of the Note. When
the Note has been paid in full, both principal and interest, the Note shall be surrendered to the
Note Registrar, who shall cancel the Note.
B. The Note Registrar shall keep, or cause to be kept, at her office, sufficient books for the
registration of the Note. The Note Registrar shall serve as the City's authenticating trustee,
transfer agent, registrar and paying agent for the Note and shall comply fully with all applicable
federal and state laws and regulations respecting the carrying out of those duties. The Note
Registrar is authorized, on behalf of the City, to authenticate and deliver the Note in accordance
with the provisions of the Note and this ordinance, to serve as the City's paying agent for the
Note and to carry out all of the Note Registrar's powers and duties under this ordinance and
Ordinance No. 1338. No assignment or transfer of the Note shall be effective until the name of
the new owner and the new owner's mailing address, together with such other information
deemed appropriate by the Note Registrar, shall be recorded on the Note Register.
C. The Note shall state on its face that the principal of and interest on the Note shall be
paid only to the owner thereof registered as such on the Note Register as of the record date set
forth therein and to no other person or entity, and that the Note may not be assigned except on
the Note Register.
Section 8. Designation of Note as "Qualified Tax Exempt Obligation."
A. The City finds and declares that:
1. it is a duly organized and existing governmental unit of the State of Washington
and has general taxing power;
2. the Note is not a "private activity bond" within the meaning of Section 141 of the
United States Internal Revenue Code of 1986, as amended (the "Code
3. at least 95% of the net proceeds of the Note will be used for local governmental
activities of the City (or of a governmental unit the jurisdiction of which is entirely within the
jurisdiction of the City);
4. the aggregate face amount of all tax exempt obligations (other than private
activity bonds and other obligations not required to be included in such calculation) issued by
the City and all entities 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) during the calendar year in which the Note is
issued is not reasonably expected to exceed $5,000,000; and
5. the amount of tax exempt obligations, including the Note, 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 Note is issued does not exceed $10,000,000.
B. The City therefore certifies that the Note is eligible for the arbitrage rebate exception
under Section 148(f)(4)(D) of the Code and designates the Note as "qualified tax exempt
obligation" for the purposes of Section 265(b)(3) of the Code.
Section 9. Ratification and Confirmation. Any actions of the City or its officers prior to
the date thereof and consistent with the terms of this ordinance are ratified and confirmed.
Section 10. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity
or unconstitutionality shall not affect the validity or constitutionality of the remaining portions
of this ordinance or its application to any other person or situation.
Bond Acq -Golf Rvsd 10 -00 3
Section 11. 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 and effect five (5)
days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CI Y OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this MP day of 2000.
ATTEST /AUTHENTICATED:
c i n d_ACk_
e E. Cantu, CMC, City Clerk
APPROVED AS TO FORM:
By
Office of f Cit Attorney
FILED WITH THE CITY CLERK: AO- /Z' LO
PASSED BY THE CITY COUNCIL: /a 0
PUBLISHED: /p -20-#
EFFECTIVE DATE: !O- Z
ORDINANCE NO.: 982
Steven M. Mullet, Mayor
Bond Acq -Golf Rvsd 10 -00 4
Published Seattle Times: /O /"U /O`a
CITY OF TUKWILA
SUMMARY OF ORDINANCE NO. /930
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, RELATING TO CONTRACTING
INDEBTEDNESS; AUTHORIZING THE ISSUANCE OF LIMITED
TAX GENERAL OBLIGATION BONDS; AUTHORIZING CITY
FINANCE DIRECTOR TO CONTRACT FOR THE ISSUANCE OF
A LIMITED TAX GENERAL OBLIGATION BOND
ANTICIPATION NOTE OR NOTES IN THE AGGREGATE
AMOUNT OF NOT TO EXCEED $3,500,000, TO PROVIDE
FUNDS FOR CERTAIN IMPROVEMENTS AT THE FOSTER
GOLF COURSE INCLUDING A NEW CLUBHOUSE, PARKING,
COURSE IMPROVEMENTS, MEANTENANCE FACILITY, AND
OTHER FACILITY UPGRADES; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
On la. the City Council of the City of Tukwila passed
Ordinance No. 1938 authorizing the issuance and sale of limited tax general
obligation bonds of the City in the aggregate principal amount of not to exceed
$3,500,000 for the purpose of financing certain improvements at the Foster Golf Course;
providing for severability; and establishing 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 its meeting of /4/ ei /D-
th_ (74
Ja0 E. Cantu, CMC, City Clerk