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HomeMy WebLinkAboutOrd 0772 - Bond Fund Reserve Account 1 CITY QF TUK WASHINGTON ORDINANCE NO. 772 AN ORDINANCE AMENDING ORDINANCE NO. 748 SECTION 7(b) CLARIFYING PAYMENTS TO THE BOND FUND RESERVE ACCOUNT. THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: That Section 7 of Ordinance No. 748 be and it is hereby amended to read as follows: Section 7. The Bond Fund has heretofore been divided into two accounts, namely, a "Principal and Interest Account" and a "Reserve Account." There is hereby also created and es- tablished in the Bond Fund a third account to be known as the "1972 Refunding Bonds Account." Immediately upon receipt of payment in full for the Bonds, $480,000.00 of such principal proceeds received shall be deposited in the "1972 Refunding Bonds Account" and a sufficient amount shall be transferred from the "Principal and Interest Account" and "Reserve Account" to the "1972 Refunding Bonds Account" which, together with such $480,000.00, shall be used immediately to purchase the followings described direct obligations of the United States Government at the following prices plus accrued interest: Description Price Principal 10,000 Treasury Bills Due 6/30/73 9,655.88 16,000 Treasury Notes 7 -1/4% Due 5/15/74 102 -1/2 16,400.00 19,000 Treasury Notes 5 -3/4% Due 5/15/76 99 -5/8 18,928.75 20,000 Treasury Notes 6 -1/4% Due 2/15/78 100 -3/4 20,150.00 30,000 Treasury Bonds 4% Due 2/15/80 88 -1/4 26,475.00 44,000 Treasury Bonds 6 -3/8% Due 2/15/82 100 -7/8 44,385.00 360,000 Treasury Bonds 6-3/8% Due 8/15/84 99 -3/4 359,100.00 The United States Treasury obligations to be purchased as above provided shall be registered as to principal and interest in the name of the "Treasurer of the City of Tukwila, Washington, Trustee for the Water and Sewer Revenue Bond Fund, 1961, 1972 -1- Refunding Bonds Account." All of such United States Treasury obligations shall be held in the custody of the Treasurer for such refunding bonds account in the Bond Fund, and shall he placed in safekeeping with any bank normally used by such Treasurer for safekeeping of City securities. All the moneys received as principal of or interest on such government obligations shall be held by the Treasurer for the credit of the City for the "1972 Refunding Bonds Account" in the Bond Fund, and shall be held in trust and shall be used for the sole purpose of meeting the debt service on the out- standing 1970 Bonds (with the exception that the January 1, 1973, interest accruing on the outstanding 1970 Bonds shall he paid from moneys on deposit in the "Principal and Interest Account" in the Bond Fund) until the outstanding 1970 Bonds shall have been called, retired and paid out of such "1972 Refunding Bonds Account" on July 1, 1985. All interest on and principal of the above described government obligations received prior to the date such money is needed to meet debt service on the outstanding 1970 Bonds, until such bonds are called and retired on July 1, 1985, as provided herein, may be invested and reinvested in United States government obligations maturing prior to the date or dates such moneys will be needed for such payment. Any moneys remaining in the "1972 Refunding Bonds Account" in the Bond Fund after the payment and retirement in full of the 1970 Bonds on July 1, 1985, shall be transferred and paid into the "Principal and Interest Account" in the Bond Fund. So long as Bonds are outstanding against the Bond Fund, the Treasurer of the City 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 into the Bond Fund for the oustanding 1961 Bonds, the outstanding 1963 Bonds and the outstanding 1965 Bonds, a fixed amount, without regard to any fixed proportion, on or before the 20th day of each month, namely, (a) Into the "Principal and Interest Account," beginning with the month of December, 1972, 1 /12th of the next ensuing requirements for both principal and interest on the Bonds and continu- ing thereafter until the Bonds, both principal and interest, are paid in full; and (b) Into the "Reserve Account," monthly, beginning with the month of December, 1972, not less than the sum of 1 /60th of an amount equal to the average annual debt service requirement (both principal and interest) for the Bonds until a total reserve shall be accumulated therein, along with other funds on deposit in an amount equal to the average annual debt service on the Bonds by no later than December 1, 1977. The "Reserve Account" may be accumulated from any other moneys which the City may have available for such purpose in addition to using such revenues therefor. The "Reserve Account" shall be maintained in such total required reserve amount, except for withdrawals therefrom as authorized herein, at all times so long as any of the 1961 Bonds, the 1963 Bonds, the 1965 Bonds and the MP Bonds are outstanding. When the total amount in the Bond Fund shall equal the total amount of princi- pal and interestfor all outstanding 1961 Bonds, 1963 Bonds, 1965 Bonds, and the outstanding Bonds to the last maturity thereof, no further payment need be made into the Bond Fund. In the event that there should 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 Account" by reason of any such withdrawal shall then be made up from the moneys from the revenues of the waterworks utility of the City first available after making necessary provision for the required payments onto the "Principal and Interest Account." The moneys in the "Reserve Account" shall otherwise be held intact and may be applied against the last outstanding bonds payable out of the Bond Fund. All moneys in the "Reserve Account" above provided for may be kept on deposit in the official bank depository of the City, or may be invested in United States government oblicga- tions redeemable at a fixed price and maturing not later than August 1, 2001. Interest earned on any such investments or on such bank deposit shall be deposited in and become a part of the "Reserve Account" until the total required reserve amount shall have been accumulated therein, after which such interest shall be deposited in the "Principal and Interest Account." The gross revenues from the waterworks utility of the City are hereby pledged to the payment of the Bonds, and the Bonds shall constitute a lien and charge upon such revenues prior and superior to any other charges whatsoever, excluding charges for maintenance and operation, except that the lien and charge upon those revenues for the Bonds shall be on a parity with the lien and charge upon such gross revenues for the 1961 Bonds, the 1963 Bonds, the 1965 Bonds (the 1970 Bonds until such bonds are paid and retired on July 1, 1985) and any additional water and sewer revenue bonds which may be hereafter issued on a parity of lien with the 1961 Bonds, the 1963 Bonds, the 1965 Bonds (the 1970 Bonds until such bonds are paid and retired on July 1, 1985) and the Bonds in accordance with the provisions of Section 7 of Ordinance No. 334. PASSED BY THE CITY COUNCIL of the City of Tukwila, Washington, and approved by the Mayor this day of May, 1973. Approved as to Form: City Attorney Published: Attest: Mayor /ty Clerk