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1171_00001ORDINANCE No.1171 AN ORDINANCE of the City of Moses Lake, Washington,authorizing the issuance and sale of alimitedtaxgeneralobligationbondanticipation note in the principal amount of $500,000;specify- ing the terms,date,maturity,and form thereof; creating a special redemption fund and a building and equipment fund;pledging to issue limited taxgeneralobligationbondstopaytheprincipalof and interest on the note;accepting a proposal forthepurchaseofsuchbondanticipationnote;andrepealingOrdinanceNo.1170. WHEREAS,by Ordinance No.1170,passed by the City Council of the City of Moses Lake,Washington,(the "City")on April 23, 1985,the City Council authorized the issuance of $500,000 prin- cipal amount of short term obligations in anticipation of thereceiptoftaxandotherrevenuestoprovidefundsforacapitalconstructionproject(remodeling of the City Hall)and purchaseofequipment(computer equipment and software and vehicles);and WHEREAS,it is now deemed to be in the best interests of theCitytoborrowmoneyandissueshorttermobligationsinaccord- ance with the provisions of Chapter 39.50 RCW in anticipation oftheissuanceandsaleoflimitedtaxgeneralobligatonbondsforthepurposeofprovidingfundsfortheaforesaidpurposesandtomakecertaincovenantsrelatingtothesecuritythereforand payment thereof;and WHEREAS,the City has received a proposal for purchase of abondanticipationnotefromRainierNationalBank,acceptance ofwhichisdeemedtobeinthebestinterestsoftheCity;NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON,DO ORDAIN AS FOLLOWS: Section 1.Purpose and Estimated Cost.The City Councilhasdeterminedthatitis¯ñecessary and in the best interests oftheCitytoborrowmoneyundertheauthorityofChapter39.50RevisedCodeofWashingtontoprovidefundstopaythecosts ofremodelingoftheCityHallandtopurchasevehicles,computerequipmentandsoftwareforuseinadminstrationoftheCity andbyitsvariousdepartments.The cost and expense of the fore-going improvements (the "Improvements")is estimated to be atleast$500,000,of which approximately $300,000 is expected to beappliedtotheCityHallremodeling,approximately $100,000 tovehiclepurchaseandapproximately$100,000 to purchase ofcomputerequipmentandsoftware.The City Manager is herebyauthorizedtoallocatetheproceedsoftheborrowingamong theelementsoftheImprovementsinsuchamountsandatsuchtimes ashedeemsnecessaryanddesirabletocarryouttheImprovements. Section 2.Authorization and Terms of Note.For the purposeofpayingpartofthecostandexpenseoftheImprovements,theCityshallissueandsellitsLimitedTaxGeneralObligationBondAnticipationNoteintheprincipalamountof$500,000 (the"Note").The Note shall be dated the date of its delivery,shallmatureJune1,1986,shall bear interest at a rate or rates whichwillbesixty-five percent (65%)of the publicly announced primerateofRainierNationalBank,Seattle,Washington,a nationalbankingassociation,adjusted daily and computed on the basis of CITY OF MOSES LAKE -BAN Ordinance -1 a 360 day year and actual number of days elapsed payable quar-terly commencing September 1,1985,and shall be in the denomina-tion of $500,000.&Principal of and interest on the Note shall be payable solely from the "Limited Tax General Obligation Bond and Note Redemption Fund,1985"(the "Note Redemption Fund")created by Section 6 of this ordinance,from the proceeds of additional bondanticipationnotesorlimitedtaxgeneralobligationbondsand other monies legally available therefor,and shall be payable in lawful money of the United States of America.Interest shall be paid by check or draft mailed to Rainier National Bank,Seattle,Washington,at such address as said bank shall notify the City inwriting.Principal of and interest due at maturity on the Note shall be payable upon presentation and surrender of the Note totheCityTreasurer. The City has reserved the right to redeem the Note in whole or in part on any date upon written notice delivered at least five (5)business days prior to the date of redemption to Rainier National Bank at the address provided for payment of interest ontheNote.If less than all the principal of the Note then out-standing is to be redeemed,a substitute Note for the unpaid principal will be delivered with the redemption payment. Section 3.Security.The City hereby irrevocably pledgesitselftoissuelimitedtaxgeneralobligationbondsinanamountsufficient,with other monies legally available therefor,to payandredeemtheNote,together with accrued interest,at maturity. The City hereby irrevocably pledges itself to budget and appro-priate from annual tax levies available to the City without avoteofthepeopleamountssufficient,together with other monieslegallyavailabletherefor,to pay the principal of and interest on such bonds as the same shall become due.The full faith, credit and resources of the City are hereby irrevocably pledged for the issuance of such bonds and the payment of the principalofandinterestontheNote.The City,in the discretion of theCityCouncil,may issue additional bond anticipation notes pay-able from the Note Redemption Fund to pay costs of the Improve- ments and/or to pay principal of and interest on the Note as the same become due. Section 4.Arbitrage Covenant.The City covenants that itwillexpendtheprincipalproceedsoftheNotewithduediligencetothecompletionoftheImprovementsspecifiedinthisordinanceandwillmakenouseoftheproceedsoftheNoteatanytimeduringthetermoftheNotewhichwillcausetheNotetobean"arbitrage bond"within the meaning of Section 103(c)of theUnitedStatesInternalRevenueCodeof1954,as amended,andapplicableregulationspromulgatedthereunder. Section 5.Form and Execution of the Note.The Note shallbetypewritten,printed or lithographed on good bond paper informandsubstanceconsistentwiththisordinanceandapproved by the City Manager of the City and shall be signed by the manual signature of the City Manager,attested by the manual signatureoftheCityClerkandshallhavethesealoftheCityimpressedthereon. Section 6.Note Redemption Fund.There is hereby createdandestablishedintheofficeoftheCityTreasureraspecialfundtobeknownanddesignatedasthe"City of Moses LakeLimitedTaxGeneralObligationBondandNoteRedemptionFund, CITY OF MOSES LAKE -BAN Ordinance -2 1985"(the "Note Redemption Fund")for the sole purpose of pay-ment of the principal of and interest on the Note and the limitedtaxgeneralobligationbondsandanyadditionalshorttermobli-gations hereafter issued in accordance with this ordinance.Accrued interest,if any,received from the sale of the NoteshallbedepositedintheNoteRedemptionFund.The City herebycovenantstodepositintheNoteRedemptionFundonorbeforeeachinterestpaymentdateandthematuritydateoftheNote,respectively,amounts sufficient,together with monies otherwiseavailabletherein,to pay the principal of and interest on theNotewhendue. Section 7.Building and Equipment Fund.There is herebycreatedandestablishedintheofficeoftheCityTreasureraspecialfundtobeknownanddesignatedasthe"City of MosesLakeCapitalProjectsFund,#310"(the "Building and Equipment Fund")into which the principal proceeds received from the saleoftheNoteshallbedepositedandshallbeusedforthepurposesspecifiedinSection1ofthisordinanceandtopaythecostsofissuanceoftheNote.Pending the expenditure of such principalproceeds,the City may temporarily invest such proceeds in anylegalinvestment,and the investment earnings may be retained intheBuildingandEquipmentFundandexpendedforthepurposesofsuchfund. Section 8.Sale of the Note.The proposal of Rainier National Bank of Seattle,Washington,to purchase the Note at apriceofparandonthetermssetforthinthisordinanceisherebyaccepted. Section 9.Repealer.Ordinance No.1170 of the City isherebyrepealedinitsentirety. Section 10.Declaration of Emergency and Effective Date.The City Council declares that an emergency exists and thisordinanceshalltakeeffectandbeinforcefive(5)days after passage and publication as provided by law upon one reading iftwo-thirds (2/3)of the entire City Council present vote in favorofpassage. PASSED by the City Council and signed by its Mayor at aregularopenpublicmeetingonMay28,1985. CITY CLERK APPROVED AS TO FORM: CITY TORNEY PUBLISHED:June 3,1985 CITY OF MOSES LAKE -BAN Ordinance -3