1725_00001CITY OF MOSES LAKE,WASHINGTON
Not to Exceed $3,020,000
LIMITED TAX GENERAL OBLIGATION BOND ANTICIPATION NOTE(Main Fire Station Project)
ORDINANCE NO.1725
TABLE OF CONTENTS1
section Title Page
Recitals ..................1
1 The Project ...................2
2 Costs of the Project ...............2
3.Authorization of Bond ...............2
4.Authorization of Bond Anticipation Note ......2
5.Draws Under the Note ................3
6.Early Redemption .................3
7.Construction Fund .................3
8.Note Redemption Fund;Pledge ............4
9.Form of the Note .................4
10.Execution of the Note ...............5
11.Tax Code Covenant .................5
12.Findings and Designation of Bank Eligibility ....6
13.Pledge Regarding Reserves .............6
14.Sale of the Note ..................6
15.Authorization to City officials ..........6
16.Severability ..................6
17.Effective Date ..................7
Signatures ..................7
1 This Table of contentsis provided for reference only and does not constitute a part of the ordinanceforwhichitisprovided.
LIMITEDTAXGOBANOltDINANCE-TABLEOF CONTENTS-PRCJO i
ORDINANCE NO.1725
AN ORDINANCE of the City of Moses Lake ratifying theundertakingoftheconstructionandequippingofa
headquarters fire station and training facility,
declaring the estimated cost of the improvements,
authorizing a certain limited tax general abligation
bond,authorizing the issuancè and sale of its limited
tax general obligation bond anticipation note in the
0 principal amount of not to exceed $3,020,000;specifying
the terms,form and source of payment thereof;and
ratifying acceptance of a proposal for the purchase of
such note.
WHEREAS,the City of Moses Lake,Washington,(the "city")is
in need of a headquarters fire station and training facility in
order to provide adequate fire protection for the City (the"Project");and
WHEREAS,the Project is to be funded in part by a loan from
the United States of America acting by and through its Department
of Agriculture (the "United Statesn);and
WHEREAS,in accordance with Resolution No.1732 of the cityCouncil,the city Manager executed his Declaration of Intent,dated
June 14,1994,to reimburse expenditures for the Project made from
the General Fund,Capital Improvement Fund,Building Fund orFireman's Pension Fund out of proceeds of debt that the City
expected to issue to finance the Project in the amount of
$3,020,300;and
WHEREAS,the City has been authorized by the United States toissue,and has issued,a notice to proceed with construction of theProjectonorbeforeApril17,1996,for completion within 270
days;and
WHEREAS,it is now deemed to be in the best interests of theCitytoborrowmoneyandissueitslimitedtaxgeneralobligation
bond anticipation note as interim financing to finance costs of theProjectpendingtheissuanceandsaleofageneralobligationbond
to the United States evidencing the loan for permanent financing of
the Project;and
WHEREAS,by Ordinance No.1586,adopted August 10,1993,theCityCouncilestablishedcertaindebtservicereservefundsandtransferredtheaggregateamountof$1,574,359 to such debt service
reserve funds (the "Reservesu);and
WHEREAS,the assessed valuation of real property within thecityforregularpropertytaxleviesin1996is$449,389,618,thecity's limitation on general indebtedness incurred without a voteis1.5%of the assessed valuation or at least $6,740,840,theCity's limitation on general purpose voted and all nonvotedindebtednessis2.5%of the assessed valuation or at least$11,234,740.The City has no outstanding voted indebtedness anditsnonvotedgeneralindebtednessoutstandingasofDecember31,1995,after deducting the amount of the reserves therefor,does notexceed$1,803,700,and no significant general obligationindebtednesshasbeenincurredbytheCityin1996priorto thedateofthisordinance;and
WHEREAS,the City has received from Key Bank of Washington,Moses Lake,Washington,a proposal for purchase of such bondanticipationnote,and it is deemed to be in the best interests oftheCitynowtoratifyacceptanceandissuethebondanticipationnoteinaccordancewithsuchproposal;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON,DOORDAINasfollows•
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Section 1.The Project.The City Council hereby authorizes
the undertaking of the acquisition,construction,installatioñ andequippingofanewheadquartersfirestationandtrainingfacility
to be located on City-owned property located on the southeasterly
side of E.Third kvenue between Block and Fig Streets (the"Project").
In carrying out the Project,the city shall acquire and
install all equipment and appurtenances necessary for its properoperation,and shall acquire by purchase,lease or'condemnation all
O property,both real and personal,or any interest therein,and all
rights-of-way,franchises,and easements necessary to carry out theProject,which is all as more particularly set forth in plans anddrawingspreparedbyTheCochranAssociates,architects,of Mercer
Island,Washington.
The Project shall be subject to such changes as to details as
may be authorized by the city Council either prior to or during theactualcourseofconstruction.
Section 2.Costs of the Project.The estimated cost of theacquisition,construction,installation and equipping of theProjectisherebydeclaredtobe,as near as may be,the amount of$3,120,330 of which $3,020,000 shall be provided by the issuance
and sale of a limited tax general obligation bond of the City and
the balance to be provided from City funds budgeted andappropriatedtherefor..
Section 3.Authorization of the Bond.To provide permanentfinancingfortheProject,City shall issue its limited tax generalobligationbondinanamountnottoexceed$3,020,000 to the United
States in exchange for a loan therefrom.Such bond shall bear .
interest at the rate of 5.25%or such lower rate as may beavailabletotheCityatthetimeofissuance,shall be issued atsuchtimeasshallbemutuallyagreeabletotheCityandtheUnited
O States,shall be dated the date of closing,both principal of andinterestonthebondtobepaidinapproximatelyequalsemiannualinstallmentsofprincipalandinterestoveraperiodnottoexceedthirtyyearsfromthedateofissue.The exact date,form,terms,installment payment dates and maturity date shall be as hereafterfixedbyordinanceoftheCityCouncil.
Section 4.Authorization of Bond-Anticipation Note.For the
purpose of paying costs of the Project prior to issuance of theaforesaidbond,the City shall issue ita "Limited Tax GeneralobligationBondAnticipationNote(Main Fire Station Project)"intheprincipalamountofnottoexceed$3,020,000 (the."Note")toKeyBankofWashington,Moses Lake,Washington,(the "Bank").TheBankwillprovidealineofcreditagainstwhichtheCitymaydrawfromtimetotimetopaycostsoftheProject.The Note shall bedatedthedateoftheinitialdraw,shall be fully registered,andshallbearinterestfromthedateofissue,with full obligation onthepartoftheCitytopayinterestattheadjustableratesetforthhereinuntiltheNote,both principal and interest,is paidinfull.
The Note shall be numbered N-1,shall mature November 1,1997,and shall bear interest from the date of each draw at theadjustablerateof57.5%of the publicly available prime rate oftheBankdeterminedonthedateddateoftheNoteandoneachMay1andNovember1thereafteruntiltheNotewithinterestispaidinfull,said interest to be calculated on the basis of a 360-day yearanda30-day month.
Both principal of and interest on the Note shall be payable inlawfulmoneyoftheUnitedStatesofAmericatotheregistered
owner thereof solely from the Note Redemption Fund created bySection8ofthisordinance.Principal of and interest on the NoteshallbepayableuponpresentationandsurrenderoftheNotebytheregisteredownerattheofficeoftheDirectorofFinanceoftheCity.
LIMITED TAX GENERALOBLIGATIONBONDANTICIPATION NOTEORDINANCE-Page 2
Section 5.Draws Under the Note.Following execution anddeliveryoftheNotertheFinanceDirectoroftheCityshallnotify
the Bank in writing each time that a draw is required to pay costsoftheProjectorcostsofissuanceoftheNote.Prior to makingeachdraw,the City shall obtain the approval of the United States
of the costs to be paid from the draw.The initial draw shallincludeanamountsufficienttoreimbursetheCity's General Fund,Capital Improvement Fund,Building-Fund and/or Fireman's Pension
Fund for Project costs paid from such Funds prior to said initialdrawinaccordancewithapprovalofsuchexpendituresbytheUnited0States.It is anticipated that draws will be made no morefrequentlythanmonthly,and each draw shall be made in an amountsufficienttopaywarrantsapprovedbytheCityCouncilforcostsoftheProjectandcostsofissuanceoftheNote.
The city council hereby finds and determines that theprojecteddrawschedulefortheProjectduringcalendaryear1996islessthan$2,500,000 and hereby directs the Finance Director tolimitdrawsmadeundertheNoteincalendaryear1996tonomorethan$2,500,000.In the event that the Project proceeds morequicklythanprojected,any payment of Project costs in 1996 in
excess of said amount shall be advanced as interfund loans from theCity's Funds identified in the preceding paragraph to theconstructionFundandthattheamountnecessarytorepayanysuchinterfundloansshallbeincludedinthefirstdrawundertheNotefollowingJanuary1,1997.
Except such proceeds as are deposited as reimbursements to theabove-identified Funds,the proceeds of the Note shall be paid intotheConstructionFundidentifiedinSection7ofthisordinancetoprovideforthepaymentofthecostofundertakingtheProjectandthepaymentofexpensesincidentalthereto.
Section 6.Early Redemption.The Note shall be callable,atOtheoptionofthecity,at any time in whole,or in part,upon five(5)business days notice addressed to:
Key Bank of Washington
Business Banking Center
ATTN:Bruce Baerlocher,Manager
314 E.Third Avenue
Moses Lake,WA 98837FacsimileNo.(509)765-3382
(or such other address as the Bank may advise from time to time)orbytelephonetotheBank's Moses Lake Business Banking Center,Attn:Bruce Baerlocher,Manager,(Telephone:(509)765-4533)andconfirmationbyfacsimiletotheforegoingfacsimilenumber,orsuchothertelephoneandfacsimilenumbersastheBankshalldirect.
Section 7..Construction Fund.A special account hasheretoforebeenestablishedintheBuildingFundoftheCitydesignatedthe.nFire Station Construction Account"(the"Construction Fund")for the purpose of accounting for the proceedsoftheNotesandanyothermoniesavailabletopaycostsoftheProjectandofpaymentofcostsoftheProject.
Any part of the proceeds of the Note remaining in theconstructionFundafterallcostsoftheProject;including costsofissuanceoftheNote,have been paid,shall be transferred tothebondredemptionfundhereinafterestablishedforpaymentofthebondauthorizedbySection3ofthisordinance.
In accordance with section 2.12.040 of the Moses LakeMunicipalCode,part or all of any investment earnings on the NoteproceedsorothermoniesintheConstructionFundmaybedepositedintheCurrentExpenseFundoftheCityandexpendedforthepurposesoftheCurrentExpenseFund.
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Section 8.Note Redemption Fund;Pledge.There is herebycreatedandestablishedintheofficeoftheFinanceDirectoroftheCityaspecialfundtobeknownanddesignatedasthenCityofMosesLake,Washington,Limited Tax General obligation BondRedemptionFund,1996"(the "Note Redemption Fund")for the solepurposeofpaymentoftheprincipalofandinterestontheNoteuntiltheNoteispaidinfull.Thereafter,the Note RedemptionFundshallbeusedforthesolepurposeofpayingtheprincipal ofandinterestonthebondauthorizedbySection3ofthisordinance.
O The City hereby covenants that it will in good faith make
every reasonable effort to issue and sell a sufficient amount ofitslimitedtaxgeneralobligationbonds,together with othermonieslegallyavailabletherefor,to pay the principal of andinterestonthisnotewhendueandtodepositallsuchmoniesintheNoteRedemptionFundonorbefore-the maturity or priorredemptiondateoftheNote.The full faith,credit and resourcesoftheCityareherebyirrevocablypledgedforthepaymentoftheprincipalofandinterestontheNote.
Section 9.Form of the Note.The Note shall be printed,lithographed,or typewritten on good bond paper in substantiallythefollowingform:
UNITED STATES OF AMERICA
NO.N-1 Not to Exceed $3,020,000
CITY OF MOSES LAKE,WASHINGTON
LIMITED TAX GENERAL OBLIGATION
BOND ANTICIPATION NOTE(Main Fire Station Project)
The City of Moses Lake,Washington,(the "city"),for valueOreceivedherebypromisestopaytoKeyBankofWashington,MosesLake,Washington,or registered assigns,on Noyember 1,1997,anamountequaltotheaggregateprincipalamountdrawnpursuanttothisnotebutnottoexceedtheamountof«.
THREE MILLION TWENTY THOUSAND DOLLARS
with interest thereon from the date of each respective draw at theadjustablerateof57.5%of the publicly available prime rate ofKeyBankofWashingtondeterminedonthedateddateofthisnoteandoneachMay1andNovember1thereafteruntilthisnotewithinterestispaidinfull,said interest to be calculated on thebasisofa360-day year and a 30-day month and shall be payable atmaturityoruntiltheprincipalamountshallhavebeenpaidormoniesdulyprovidedintheLimitedTaxGeneralObligationBondRedemptionFund,1996 of the city created by Ordinance No.1725,adopted June 11,1996,(the "Note Redemption Fund")for paymentthereof.Both principal and interest shall be payable in lawfulmoneyoftheUnitedStatesofAmericaandshallbepayableuponpresentationandsurrenderofthisnotetotheFinanceDirectoroftheCity.
This note is issued pursuant to Ordinance No.1725 of the City(the "Note ordinance").The principal of and interest on this notearepayablesolelyfromtheNoteRedemptionFundoutoftheproceedsoflimitedtaxgeneralobligationbondsandothermonieslegallyavailablethereforasprovidedintheNoteOrdinance.
The City has reserved the right to redeem this note at anytimepriortoitsmaturitybygivingwrittennoticethereofatleastfive(5)business days prior to the date fixed for redemptioninthemannersetforthintheNoteOrdinance.
By the Note Ordinance,the City has covenanted that it will ingoodfaithmakeeveryreasonableefforttoissueandsellasufficientamountofitslimitedtaxgeneralobligationbonds,
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together with other monies legally available therefor,to pay theprincipalofandinterestonthisnotewhendueandtodepositallsuchmoniesintheNoteRedemptionFund.The full faith,creditandresourcesoftheCityareherebyirrevocablypledgedfortheissuanceofsuchbondsandthepaymentoftheprincipalofandinterestonthisnote.
It is hereby certified that all acts,conditions and thingsrequiredbytheconstitutionandíàwsoftheStateofWashingtonandordinancesoftheCitytobedone,to happen or to be performedasconditionsprecedenttotheissuanceofthisnotehavebeendone,have happened and have been performed and that the totalindebtednessoftheCity,including this noter does not exceed anyconstitutionalorstatutorylimitations.
IN WITNESS WHEREOF,the city has caused this note to be signedbythemanualsignatureofitsmayorandattestedbythemanualsignatureofitscityclerkanditscorporatesealtobeimpressedhereonthis12thdayofJune,1996.
CITY OF MOSES LAKE,WASHINGTON
Attest:BY
Mayor
City Clerk
ASSIGNMENT
FOR VALUE RECEIVED,the undersigned hereby sells,assigns andtransfersunto
O
PLEASE INSERT SOCIAL SECURITY ORTAXPAYERIDENTIFICATIONNUMBER
(Please print or typeurite name and adciress including 2ip code of Transferee.)
the within note and does hereby irrevocably constitute and appointtheFinanceDirectoroftheCityofMosesLake,Washington,as noteregistrar,to transfer said note on the books kept for registrationthereofwithfullpowerofsubstitutioninthepremises.
DATED:
SIGNATURE GUARANTEED:
NOTE:The signature on this Assigruent mustcorrespondwiththenameoftheregisteredownerasitappearsuponthefaceofthewithinnoteineveryparticular,without alteration or enlargement
.or any change whatever.
Section 10.Execution of the Note.The Note shall be signedonbehalfoftheCitywiththemanualsignatureoftheMayor,shallbeattestedbythemanualsignatureofthecityClerkandshallhavethecorporatesealoftheCityimpressedthereon.
Section 11.Tax Code Covenant.The City covenants that itwillnotmakeanyuseoftheproceedsfromthesaleoftheNoteoranyotherfundsofthecitywhichmaybedeemedtobeproceedsoftheNotepursuanttoSection148oftheUnitedStatesInternalRevenueCodeof1986,and applicable regulations promulgatedthereunderwhichwouldcausetheNotetobecomean"arbitragebond"
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within the meaning of said section and said regulations.The CitywillcomplywiththerequirementsofSection148ofsaidCode(oranysupersedingCodesection)and applicable regulations so long astheNoteisoutstanding.
The City further covenants that it will not take any action orpermitanyactiontobetakenthatwouldcausetheNotetoconstitute"privateactivity bonds"sunder Section 141 of said Code.
The City Council hereby finds and determines that the City has6issueditsJuniorLienWaterandSewerRevenueBonds,Series 1996,dated March 15,1996,in the aggregate principal amount of $520,000andexpectstoissueitsLocalImprovementDistrictNo.58 Bonds intheaggregateprincipalamountof$1,883,189.58 to finance certainstreetimprovementsmadeandtobemadethereininadditiontotheNote,but,as provided in Section 5 of this ordinance,the City
does not expect to draw more than $2,500,000 against the Note in1996sothat,during calendar year 1996,it is expected that alltax-exempt obligations (including the Note)will not exceed,intotalaggregateprincipalamount,$5,000,000.
Section 12.Findings and Designation of Bank Eligibility.
The City Council hereby finds and determines that the city does notexpecttoissuemorethan$10,000,000 aggregate principal amount ofobligationstheinterestonwhichisorwillbeexcludedfromgrossincomeundertheInternalRevenueCodeof1986,including but notlimitedtogeneralobligationbondsandnotes,revenue bonds andnotes,local improvement district bonds and note,revenueanticipationnotes,and lease purchase or installment purchasecontractsincalendaryear1996;and,therefore,the City CouncilherebyfindsanddeterminesthattheNoteis,and is herebydesignatedtobe,a qualified tax-exempt obligation pursuant toSection265(b)(3)of said Code relating to financial institutions.
Section 13.Pledge Regarding Reserves.The City is relyingOonthoseamountsinCityFundsNo.216,No.220 and No.229 (the"Reserves")to offset the outstanding nonvoted general obligationbondsandnotesoftheCityinordertoenabletheCitytoissuetheNotewithinthedebtlimitationsestablishedbyRCW39.36.020,although such Reserves are not pledged to the payment of anyparticularissueofgeneralobligationbondsortheNote.The CityherebypledgesthatitwillnotadoptanycapitalimprovementoracquisitionprogramorexpenditureplanwhichwillobligatetheCitytoreducetheamountoftheReservesbelowthatamountwhichisnecessarytoassurethattheaggregateprincipalamountofsaidlimitedtaxgeneralobligationbondsortheNoteatanytimeoutstandingnetofthethenbalanceoftheReservesshallbewithintheaforesaidstatutorydebtlimitations.
Section 14.Sale of the Note.The proposal of Key Bank ofWashington,Moses Lake,Washington,dated August 11,1994,asamendedinawritingdatedOctober4,1994,to purchase the Note onthetermssetforthinsaidproposal,as amended,and thisordinanceisherebyaccepted.
Section 15.Authorization to City officials.The proper Cityofficialsareherebyauthorizedtoenterintosuchagreements,toexecutesuchinstruments,to provide certifications,and to takeallactionstheydeemreasonable,necessary and proper to carry outtheProjectandissuanceoftheNoteinconformancewiththeprovisionsofthisordinance.
Section 16.Severability.If any one or more of thecovenantsoragreementsprovidedinthisordinancetobeperformedonthepartofthecityshallbedeclaredbyanycourtofcompetentjurisdictiontobecontrarytolaw,then such covenant orcovenants,agreement or agreements shall be null and void and shallbedeemedseparablefromtheremainingcovenantsandagreementsofthisordinanceandshallinnowayaffectthevalidityoftheotherprovisionsofthisordinanceoroftheNote.
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Section 17.Effective Date.This ordinance shall take effectfivedaysafteritsadoptionandpublicationinthemannerprovidedbylaw.
PASSED by the City Council of the City of Moses Lake,Washington at a regular open public meeting thereof held on the11thdayofJune,1996.
T NGTON
ATTEST:
City Cle
APP VED AS TO
ty Attorney
PUBLISHED•June 12,1996
O
O
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