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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