1395_00001ORDINANCE NO.1395
AN ORDINANCE of the City of Moses Lake,
Washington,authorizing the issuance of itsUtilityLocalImprovementDistrictNo.4 waterandsewerrevenueloanandgrantanticipationnotesintheprincipalamountof$758,600;providing for the security and source ofpaymenttherefor;and by reference toOrdinanceNo.1393 providing the terms thereofandforthesalethereof.
WHEREAS,by Ordinance No.1342,passed by the City Council oftheCityofMosesLake,Washington,(the "City")on October 25,
1988,Utility Local Improvement District No.4 was formed,theimprovementsconsistingofasanitarysewersystem,sewer sidelateralsandappurtenancesforconnectiontotheexistingsystem,(the "Improvements")were ordered,and provision for payment of thecostsoftheImprovementsbyspecialassessmentagainstthepropertyspeciallybenefigedwasmadeandtheissuanceofwaterand
sewer revenue bonds was authorized;and
WHEREAS,the City Council at its meeting on November 22,1988,
approved the terms of a Community Development Block Grant from theUnitedStatesintheamountof$431,619 (the "Block Grant")to paytheassessmentstobeleviedagainstpropertyownedbypersonsmeetingcertainfederallowandmoderateincomerequirements,butproceedsoftheBlockGrantwillnotbereceivedbythecityprior
to completion of the Improvements and confirmation of the final
assessment roll;and
WHEREAS,pursuant to Resolution No.1465,adopted by the City
i Council on May 9,1989,the City approved the terms of a loan fromtheStateofWashingtonWaterControlRevolvingFund(the "StateLoann)to finance that portion of the costs of the suchimprovementstobeincludedinthespecialassessmentstobeleviedinUtilityLocalImprovementDistrictNo.4 to the extent that such
assessments are not paid by the Block Grant or during the 30-dayperiodforprepaymentofassessmentswithoutpenaltyorinterest,the proceeds of which will not be received by the City until theImprovementsarecompleted,the final assessment roll is confirmedandtheprepaymentperiodhaselapsed;and
NHEREAS,it is now deemed to be in the best interest of theCitytoborrowmoneyandtoissueshorttermobligations(the nULID4Notes")for the aforesaid improvements in anticipation of thereceiptofthegrantandloanproceedsforthepurposeofprovidingpartofthefundsnecesagrytopaythecostofcarryingouttheimprovements;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON,DO
ORDAIN AS FOLLOWS:
Section 1.Authorization of the Notes.The cost and expenseoftheImprovementsorderedbyOrdinanceNo.1342 of the city isestimatedtobe$757,000.00,all of which is to be assessed againstthepropertyspeciallybenefitedbysuchimprovements.For thepurposeofpayingthecostandexpenseoftheImprovementsandcostsofissuingthenotesauthorizedherein,the city will issueitsWaterandSewerUtilityRevenueLoanandGrantAnticipationNotes(Utility Local Improvement District No.4)in the principalamountof$758,600 (the "ULID 4 Notes").The ULID 4 Notes shallbedated,shall mature,shall bear interest at the rate,and shallbepayableassetforthinordinanceNo.1393 and by this referenceincorporatedasiffullysetforthherein(the "Master ordinance").
Section 2.Source of Pavment of and Security for the Notes.Both principal of an interest on the ULID 4 Notes shall be payable
City of Moses Lake -ULID No.4 BAN Ordinance -1
solely from the ULID 4 Note Redemption Fund described in Section 3ofthisordinance,from special assessments collected in UtilityLocalImprovementDistrictNo.4 prior to receipt of the proceedsfromtheStateLoantopaycostsoftheImprovementsandfromtheproceedsoftheStateLoan,the Block Grant and any water and sewer
revenue bonds hereafter issued for any of such costs and/oradditionalshorttermobligations.
The City covenants that it will,in good faith,make everyreasonableefforttosellasufficientamountofwaterandsewerrevenuebondsoradditionalbondanticipationnotesorothershorttermobligationssothat,on or before the maturity date of theULID4Notes,monies will be accumulated in the ULID 4 NoteRedemptionFundinanamountsufficienttopay,on such maturity
date,the principal of and interest on the ULIÖ 4 Notes.
Section 3.Note Redemption Fund.There has been establishedintheofficeoftheCityTreasureraspecialfundwithintheWater
and Sewer Fund of the City known as the "Utility Local ImprovementDistrict4Fund,"Treasurer's Account No.462,(the "ULID 4 NoteRedemptionFund")solely for the purposes of paying the costs ofcarryingouttheImprovementsandpaymentoftheprincipalofandinterestontheULID4Notesandanyadditionalshort-termobligationshereafterissuedtopaycostsoftheImprovements,ortopayandredeemanyoftheULID4Notes.The City herebycovenantstodepositintheULID4NoteRedemptionFundonorbeforethematuritydateoftheULID4Notesamountssufficient,together with other monies otherwise available therein for such
purpose,to pay the principal of and interest on the ULID 4 Notes
when due.
Section 4.Apolication and Use of Note Proceeds.All of theproceedsoftheULID4Notesshallbedeposited.in the ULID 4 NoteRedemptionFundandappliedtopaycostsoftheImprovementsand/ortorepayinterfundloansheretoforemadetosuchFund,including
a pro rata portion of the costs of issuing all of the notes issuedsimultaneouslywiththeULID4NotespursuanttotheMasterOrdinance.
Section 5.Declaration of Emergency and Effective Date.TheCityCouncildeclaresthattheproceedsoftheULID4Notesareimmediatelyrequiredand,therefore,that an emergency exists;andthisordinanceshalltakeeffectandbeinforcefive(5)days
after passage and publication as provided by law upon one readingiftwo-thirds (2/3)of the entire city council present vote in
favor of passage.
PASSED by the City Council and signed by its Mayor at aregularopenpublicmeetingonNovember14,1989.
M OR '
A
CITY CLERK
AP AS
CfTY ATTÒRNEĊ¸
PUBLISHED:NOVEMBER 20,1989
City of Moses Lake -ULID No.4 BAN Ordinance -2
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