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05262015 Part 2CITY OF MOSES LAKE, WASHINGTON LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2015 ORDINANCE NO. J:]_ {p ~ AN ORDINANCE OF THE CITY OF MOSES LAKE, WASHINGTON, PROVIDING FOR THE ISSUANCE AND SALE OF LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $4,225,000 TO PROVIDE FUNDS TO REFUND CERTAIN OUTSTANDING LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY; AND DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS. PASSED: MAY 26, 2015 Prepared by: K&LGATES LLP Seattle, Washington CITY OF MOSES LAKE, WASHINGTON ORDINANCE NO. TABLE OF CONTENTS* Page Section 1. Definitions ............................................................................................................... 2 Section 2. Authorization of Bonds and Bond Details .............................................................. 7 Section 3. Registration, Exchange and Payments .................................................................... 7 Section 4. Redemption Prior .to Maturity and Purchase of Bonds ......................................... 12 Section 5. Form of Bonds ...................................................................................................... 16 Section 6. Execution of Bonds ............................................................................................... 18 Section 7. Refunding Plan and Procedures ............................................................................ 19 Section 8. Tax Covenants; Special Designation .................................................................... 21 Section 9. Bond Fund and Provision for Tax Levy Payments ............................................... 24 Section 10. Defeasance ............................................................................................................ 25 Section 11. Sale of the Bonds .................................................................................................. 25 Section 12. Undertaking to Provide Ongoing Disclosure ........................................................ 29 Section 13. Ratification; General Authorization ...................................................................... 33 Section 14. Severability ........................................................................................................... 3 3 Section 15. Effective Date ....................................................................................................... 33 Exhibit A Form of Escrow Deposit Agreement Exhibit B Form of Costs of Issuance Agreement * This Table of Contents and the cover page are not a part of this ordinance; they are included for convenience of the reader only. ORDINANCE NO. AN ORDINANCE OF THE CITY OF MOSES LAKE, WASHINGTON, PROVIDING FOR THE ISSUANCE AND SALE OF LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $4,225,000 TO PROVIDE FUNDS TO REFUND CERTAIN OUTSTANDING LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY; AND DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS. WHEREAS, the City of Moses Lake, Washington (the "City") issued on June 5, 2006, its Limited Tax General Obligation Bonds, 2006 pursuant to Ordinance No. 2256 approved on May 23, 2006 (the "2006 Bond Ordinance"), in the original aggregate principal amount of $6, 100,000 (the "2006 Bonds"), which remain outstanding as follows: ; and Maturity Date (August 1) 2015 2016 2017 2018 2021* 2026* *Term Bonds Principal Amounts $ 280,000 290,000 305,000 315,000 1,030,000 2,020,000 Interest Rates 4.00% 4.05 4.10 4.15 4.15 4.25 WHEREAS, the 2006 Bond Ordinance provides that the City may call the 2006 Bonds maturing on and after August 1, 2017 (the "Refunding Candidates") for redemption in whole or in part on any date on or after August 1, 2016, at a price of par plus accrued interest to the date of redemption; and WHEREAS, after due consideration it appears to the City Council that debt service savings may be obtained by refunding some or all of the Refunding Candidates through the issuance of limited tax general obligation refunding bonds of the City in the aggregate principal amount of not to exceed $4,225,000 (the "Bonds"); and WHEREAS, in order to provide the funds required for such purpose, the City now desires to authorize the issuance of the Bonds; and WHEREAS, D.A. Davidson & Co. (the "Underwriter") has agreed to purchase the Bonds under the terms and conditions set forth in this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON, DO ORDAIN, as follows: Section 1. Definitions. As used in this ordinance, unless a different meaning clearly appears from the context: Acquired Obligations mean the Government Obligations acquired by the City under the terms of this ordinance and the Escrow Agreement to effect the defeasance and refunding of the Refunded Bonds. Beneficial Owner means any person that has or shares the power, directly or indirectly to make investment decisions concerning ownership of any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries). Bond Fund means the City of Moses Lake Limited Tax General Obligation Bond Redemption Fund, 2015 created pursuant to Section 9 of this ordinance. Bond Purchase Agreement means the agreement for the purchase of the Bonds between the Underwriter and the City, executed pursuant to Section 11 of this ordinance. -2-P:\20287_CMW\20287_AY6 5/22/15~ Bond Register means the registration books showing the name, address and tax identification number of each Registered Owner of the Bonds, maintained pursuant to Section 149(a) of the Code. Bond Registrar means, initially, the fiscal agency of the State of Washington for the purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting transfer of ownership of the Bonds and paying interest on and principal of the Bonds. Bond Year means each one-year period that ends on the date selected by the City. The first and last Bond Years may be short periods. If no day is selected by the City before the earlier of the final maturity date of the Bonds or the date that is five years after the date of issuance of the Bonds, Bond Years end on each anniversary of the date of issue and on the final maturity date of the Bonds. Bonds mean the City of Moses Lake, Washington Limited Tax General Obligation Refunding Bonds, 2015 issued pursuant to this ordinance. Call Date means August 1, 2016. City means the City of Moses Lake, Washington, a municipal corporation of the State of Washington. City Representative means the Mayor, the City Manager, the Finance Director, or such other official or employee of the City designated in writing by either of the foregoing. Code means the Internal Revenue Code of 1986, as amended, and shall include all applicable regulations and rulings relating thereto. Cost of Issuance Agreement means the agreement of that name, to be entered into by and between the City and the Escrow Agent, providing for the payment of certain costs of issuance with respect to the issuance of the Bonds, substantially in the form attached hereto as Exhibit B. -3-P:\20287_CMW\20287_AY6 5/22/15~ Council means the City Council as the general legislative authority of the City, as the same shall be duly and regularly constituted from time to time. DTC means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as depository for the Bonds pursuant to Section 3 hereof. Escrow Agent means U.S. Bank National Association, Seattle, Washington. Escrow Agreement means the Escrow Deposit Agreement by and between the City and the Escrow Agent to be dated as of the date of closing and delivery of the Bonds authorized to be executed pursuant to Section 7 substantially in the form attached hereto as Exhibit A. Finance Director means the duly qualified, appointed and acting Finance Director of the City or any other officer who succeeds to the duties now delegated to that office. First Interest Payment Date means the first interest payment date for the Bonds set forth in the Bond Purchase Agreement. Government Obligations mean those obligations now or hereafter defined as such in chapter 39.53 RCW. Letter of Representations means the blanket issuer letter of representations from the City to DTC. MSRB means the Municipal Securities Rulemaking Board or any successor to its functions. Net Proceeds, when used with reference with the Bonds, mean the principal amount of the Bonds, plus accrued interest and original issue premium, if any, and less original issue discount, if any. -4-P:\20287_CMW\20287_AY6 ~~ Private Person means any natural person engaged in a trade or business or any trust, estate, partnership, association, company or corporation. Private Person Use means the use of property in a trade or business by a Private Person if such use is other than as a member of the general public. Private Person Use includes ownership of the property by the Private Person as well as other arrangements that transfer to the Private Person the actual or beneficial use of the property (such as a lease, management or incentive payment contract or other special arrangement) in such a manner as to set the Private Person apart from the general public. Use of property as a member of the general public includes attendance by the Private Person at municipal meetings or business rental of property to the Private Person on a day-to-day basis if the rental paid by such Private Person is the same as the rental paid by any Private Person who desires to rent the property. Use of property by nonprofit community groups or community recreational groups is not treated as Private Person Use if such use is incidental to the governmental uses of property, the property is made available for such use by all such community groups on an equal basis and such community groups are charged only a de minimis fee to cover custodial expenses. Refunded Bonds mean the Refunding Candidates selected by the City Representative pursuant to Section 11 hereof. Refunding Candidates mean the 2006 Bonds maturing after August 1, 2017. Registered Owner means the person named as the registered owner of a Bond in the Bond Register. For so long as the Bonds are held in book-entry only form, DTC shall be deemed to be the sole Registered Owner. Rule means the SEC's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. -5-P:\20287 _ CMW\20287 _AY6 5/22/15~ Savings Target means a dollar amount equal to at least three and one-half percent (3.50 %) of the outstanding principal of the Refunded Bonds. SEC means the United States Securities and Exchange Commission. 2006 Bond Ordinance means Ordinance No. 2256, passed by the City Council on May 23, 2006. 2006 Bonds mean the Limited Tax General Obligation Bonds, 2006, of the City issued under date of June 5, 2006, as more particularly described in the recitals of this ordinance. Underwriter means D.A. Davidson & Co., Seattle, Washington. Interpretation. In this ordinance, unless the context otherwise requires: (a) The terms "hereby," "hereof," "hereto," "herein, "hereunder" and any similar terms, as used in this ordinance, refer to this ordinance as a whole and not to any particular article, section, subdivision or clause hereof, and the term "hereafter" shall mean after, and the term "heretofore" shall mean before, the date of this ordinance; (b) Words of the masculine gender shall mean and include correlative words of the feminine and neuter genders and words importing the singular number shall mean and include the plural number and vice versa; (c) Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (d) Any headings preceding the text of the several articles and sections of this ordinance, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience ofreference and shall not constitute a part of this ordinance, nor shall they affect its meaning, construction or effect; and -6-P:\20287_CMW\20287_AY6 512211 5~ ( e) All references herein to "articles," "sections" and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. Section 2. Authorization of Bonds and Bond Details. For the purpose of refunding the Refunded Bonds and paying the costs of issuance related thereto, and thereby effecting a substantial savings to the City and its taxpayers, the City shall issue its limited tax general obligation refunding bonds in the aggregate principal of not to exceed $4,225,000. The Bonds shall be designated as the "City of Moses Lake, Washington, Limited Tax General Obligation Refunding Bonds, 2015" (the "Bonds"). The Bonds shall be dated as of their date of initial delivery; shall be fully registered as to both principal and interest; shall be in the denomination of $5,000 each, or any integral multiple thereof, provided that no Bond shall represent more than one maturity; shall be numbered separately in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; and shall bear interest from their date of issuance, payable on the First Interest Payment Date and semiannually thereafter on the first days of each February and August and shall mature on August 1 in the years and principal amounts set forth and approved in the Bond Purchase Agreement executed by the City Representative pursuant to Section 11 of this ordinance. The Bonds shall bear interest at the rates set forth in the Bond Purchase Agreement executed by the City Representative pursuant to Section 11 of this ordinance. Section 3. Registration, Exchange and Payments. (a) Bond Registrar/Bond Register. The City hereby specifies and adopts the system of registration approved by the Washington State Finance Committee from time to time through the appointment of state fiscal agencies. The City shall cause a bond register to be maintained by -7-P:\20287 _CMW\20287 _AY6 ~~ the Bond Registrar. So long as any Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of Bonds at its principal corporate trust office. The Bond Registrar may be removed at any time at the option of the City Representative upon prior notice to the Bond Registrar and a successor Bond Registrar appointed by the City Representative. No resignation or removal of the Bond Registrar shall be effective until a successor shall have been appointed and until the successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication of the Bonds. (b) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 3(h) hereof, but such Bond may be transferred as herein provided. All such payments made as described in Section 3(h) shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. (c) DTC Acceptance/Letters of Representations. The Bonds initially shall be held in fully immobilized form by DTC acting as depository. To induce OTC to accept the Bonds as eligible for deposit at DTC, the City has executed and delivered to OTC a Blanket Issuer Letter of Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to OTC participants or the persons for whom they act as nominees (or any successor -8-P:\20287_CMW\20287_AY6 512211~ depository) with respect to the Bonds in respect of the accuracy of any records maintained by DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor depository) or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice which is permitted or required to be given to Registered Owners under this ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC (or any successor depository)), or any consent given or other action taken by DTC (or any successor depository) as the Registered Owner. For so long as any Bonds are held in fully-immobilized form hereunder, DTC or its successor depository shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the owners of any beneficial interest in such Bonds. If any Bond shall be duly presented for payment and funds have not been duly provided by the City on such applicable date, then interest shall continue to accrue thereafter on the unpaid principal thereof at the rate stated on such Bond until it is paid. (d) Use of Depository. (1) The Bonds shall be registered initially in the name of "Cede & Co.", as nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such immobilized Bonds, or any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the City Representative pursuant to subsection (ii) -9-P:\20287_CMW\20287_AY6 5122115~ below or such substitute depository's successor; or (C) to any person as provided m subsection (iv) below. (2) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the City Representative to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the City Representative may hereafter appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (3) In the case of any transfer pursuant to clause (A) or (B) of subsection (1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request of the City Representative, issue a single new Bond for each maturity then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the City Representative. ( 4) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (B) the City Representative determines that it is in the best interest of the beneficial owners of the Bonds that such owners be able to obtain such bonds in the form of Bond certificates, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held in fully-immobilized form . The City Representative shall deliver a written request to the Bond Registrar, together with a supply of definitive Bonds, to issue Bonds as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request of the City Representative to the Bond -10-P:\20287 _CMW\20287_AY6 5/22/15~ Registrar, new Bonds shall be issued in the appropriate denominations and registered in the names of such persons as are requested in such written request. (e) Registration of Transfer of Ownership or Exchange; Change in Denominations. The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to register the transfer or to exchange any Bond during the 15 days preceding any interest payment or principal payment date any such Bond is to be redeemed. (f) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners of Bonds. -11-P:\20287_CMW\20287_AY6 512211~ (g) Registration Covenant. The City covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. (h) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all Bonds are in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Bonds are no longer in fully immobilized form, interest on the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date, or upon the written request of a Registered Owner of more than $1,000,000 of Bonds (received by the Bond Registrar at least 15 days prior to the applicable payment date), such payment shall be made by the Bond Registrar by wire transfer to the account within the continental United States designated by the Registered Owner. Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar. Section 4. Redemption Prior to Maturity and Purchase of Bonds. (a) Mandatory Redemption of Term Bonds and Optional Redemption, if any. The Bonds may be called for redemption at any time prior to scheduled maturity under terms approved by the City Representative in the Bond Purchase Agreement pursuant to Section 11 of this ordinance. -12-P:\20287 _CMW\20287 _AY6 ~~ (b) Purchase of Bonds. The City reserves the right to purchase any of the Bonds offered to City at any price deemed reasonable to the City Representative. (c) Selection of Bonds for Redemption. As long as the Bonds are held in book-entry only form, the selection of Bonds to be redeemed shall be made in accordance with the operational arrangements in effect at DTC. If the Bonds are no longer held in uncertificated form, the selection of such Bonds to be redeemed shall be made as provided in this subsection ( c ). If the City redeems at any one time fewer than all of the Bonds having the same maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot (or in such other manner determined by the Registrar) in increments of $5,000. In the case of a Bond of a denomination greater than $5,000, the City and Registrar shall treat each Bond as representing such number of separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. If Bonds are called for optional redemption, portions of the principal amount of such Bonds, in installments of $5,000 or any integral multiple of $5,000, may be redeemed. If less than all of the principal amount of any Bond is redeemed, upon surrender of such Bond at the principal office of the Registrar, there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal amount thereof, a new Bond or Bonds, at the option of the Registered Owner, of like maturity and interest rate in any denomination authorized by this ordinance. ( d) Notice of Redemption. (1) Official Notice. For so long as the Bonds are held in uncertificated form, notice of redemption (which notice may be conditional) shall be given in accordance with the operational arrangements of DTC as then in effect, and neither the City nor the Registrar will -13-P:\20287_CMWl20287_AY6 ~~ provide any notice of redemption to any Beneficial Owners. Thereafter (if the Bonds are no longer held in uncertificated form), notice of redemption shall be given in the manner hereinafter provided. Unless waived by any owner of Bonds to be redeemed, official notice of any such redemption (which redemption may be conditioned by the Registrar on the receipt of sufficient funds for redemption or otherwise) shall be given by the Registrar on behalf of the City by mailing a copy of an official redemption notice by first class mail at least 20 days and not more than 60 days prior to the date fixed for redemption to the Registered Owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such Registered Owner to the Registrar. All official notices ofredemption shall be dated and shall state: (A) the redemption date, (B) the redemption price, (C) if fewer than all outstanding Bonds are to be redeemed, the identification by series and maturity (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (D) that (unless the notice of redemption is a conditional notice, in which case the notice shall state that interest shall cease to accrue from the redemption date if and to the extent that funds have been provided to the Registrar for the redemption of Bonds) on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (E) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Registrar. -14-P:\20287 _CMW\20287_AY6 5122115~ On or prior to any redemption date, unless the conditions for redemption have not been satisfied, the City shall deposit with the Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. (2) Effect of Notice; Bonds Due. If conditional notice of redemption has been given, the redemption shall be subject to satisfaction of the terms set forth in the conditional notice of redemption. If a conditional notice of redemption has been given and the conditions set forth therein have been satisfied or if an unconditional notice of redemption has been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. All Bonds which have been redeemed shall be canceled and destroyed by the Registrar and shall not be reissued. (3) Additional Notice. In addition to the foregoing notice, further notice shall be given by the City as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (A) the CUSIP numbers of all Bonds being redeemed; (B) the date of issue of the Bonds as originally issued; (C) the rate of interest borne by each Bond being redeemed; (D) the maturity date of each Bond being redeemed; and (E) any other descriptive information needed to identify accurately the Bonds being redeemed. Each further notice of redemption may be sent at least -15-P:\20287_CMW\20287_AY6 5/22/15~ 25 days before the redemption date to each party entitled to receive notice pursuant to Section 12 and to the Underwriter and with such additional information as the City shall deem appropriate, but such mailings shall not be a condition precedent to the redemption of such Bonds. (4) CUSIP Number. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. (5) Amendment of Notice Provisions. The foregoing notice provisions of this Section 4, including but not limited to the information to be included in redemption notices and the persons designated to receive notices, may be amended by additions, deletions and changes in order to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. Section 5. Form of Bonds. The Bonds shall be in substantially the following form: NO. ---- UNITED ST ATES OF AMERICA STATE OF WASHINGTON CITY OF MOSES LAKE $ ___ _ LIMITED TAX GENERAL OBLIGATION REFUNDING BOND, 2015 INTEREST RA TE: MATURITY DATE: CUSIPNO: REGISTERED OWNER: CEDE&CO. PRINCIPAL AMOUNT: The City of Moses Lake, Washington, a municipal corporation organized and existing under and by virtue of the laws and Constitution of the State of Washington (the "City"), hereby acknowledges itself to owe, and for value received promises to pay, to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal -16-P:\20287 _ CMW\20287 _AY6 5/22/15~ Amount indicated above and to pay interest thereon from , 20 , or the most recent date to which interest has been paid or duly provided for until payment of this bond at the Interest Rate set forth above, payable on , 20 , and semiannually thereafter on the first days of each succeeding and . Both principal of and interest on this bond are payable in lawful money of the United States of America. Interest shall be paid as provided in the Blanket Issuer Letter of Representations (the "Letter of Representations") from the City to The Depository Trust Company ("DTC"). Initially, the City has specified and adopted the registration system for the bonds of this issue specified by the State Finance Committee, and the fiscal agency of the State will act as registrar, paying agent and authenticating agent (the "Bond Registrar"). This bond is one of an issue of limited tax general obligation bonds of the City of like date and tenor, except as to number, interest rate and date of maturity, in the aggregate principal amount of $ , issued pursuant to Ordinance No. __ of the City, passed on May 26, 2015 (the "Bond Ordinance"), to provide funds to pay the cost of refunding a portion of its outstanding Limited Tax General Obligation Bonds, 2006. Capitalized terms used in this bond and not otherwise defined shall have the meanings given them in the Bond Ordinance. The bonds of this issue are subject to redemption as stated in the Bond Purchase Agreement. The City has designated the bonds of this issue as "qualified tax-exempt obligations" for purchase by financial institutions pursuant to Section 265(b) of the Internal Revenue Code. The bonds of this issue are not private activity bonds. The City hereby irrevocably covenants and agrees with the owner of this bond that it will include in its annual budget and levy taxes annually, within and as a part of the tax levy permitted to the City without a vote of the electorate, upon all the property subject to taxation in amounts sufficient, together with other money legally available therefor, to pay the principal of and interest on this bond as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by the Bond Registrar. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened, been done and performed precedent to and in the issuance of this bond have happened, been done and performed and that the issuance of this bond and the bonds of this issue does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. IN WITNESS WHEREOF, the City of Moses Lake, Washington, has caused this bond to be signed on behalf of the City with the manual or facsimile signature of the Mayor, to be attested by the manual or facsimile signature of the Finance Director of the City, and a facsimile -17-P:\20287 _ CMW\20287 _A Y6 5/22/1 S~ of the seal of the City to be impressed, imprinted or otherwise reproduced hereon, as of this __ day of , 2015. [SEAL] CITY OF MOSES LAKE, WASHINGTON By Isl manual or facsimile signature Mayor ATTEST: Isl manual or facsimile signature Finance Director The Certificate of Authentication for the Bonds shall be in substantially the following form : CERTIFICATE OF AUTHENTICATION Date of Authentication: ------- This is one of the Limited Tax General Obligation Bonds, 2015, of the City of Moses Lake, Washington, dated _, 2015, as described in the Bond Ordinance. Section 6. WASHINGTON ST A TE FISCAL AGENCY, Bond Registrar By ____________ _ Authorized Signer Execution of Bonds. The Bonds shall be executed on behalf of the City with the manual or facsimile signatures of the Mayor and Finance Director, and the seal of the City shall be impressed, imprinted or otherwise reproduced thereon. Only such Bonds as shall bear thereon a Certificate of Authentication in the form hereinbefore recited, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so -18-P:\20287 _ CMW\2028 7 _AY6 5122115~ authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. In case either of the officers who shall have executed the Bonds shall cease to be an officer or officers of the City before the Bonds so signed shall have been authenticated or delivered by the Bond Registrar, or issued by the City, such Bonds may nevertheless be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the City as though those who signed the same had continued to be such officers of the City. Any Bond may be signed and attested on behalf of the City by such persons who at the date of the actual execution of such Bond, are the proper officers of the City, although at the original date of such Bond any such person shall not have been such officer of the City. Section 7. Refunding Plan and Procedures. (a) Refunding Plan. A portion of the proceeds of sale of the Bonds, together with other funds, if any, provided by the City shall be delivered to the Escrow Agent for the purpose of defeasing the Refunded Bonds and paying related costs of issuance. Money received by the Escrow Agent from Bond proceeds and other money provided by the City shall be used immediately by the Escrow Agent upon receipt thereof in accordance with the terms of the Escrow Agreement to defease the Refunded Bonds as authorized by the 2006 Bond Ordinance, and pay costs of issuance of the Bonds. The City shall defease the Refunded Bonds and discharge such obligations to purchase certain Government Obligations (which obligations so purchased, are herein called "Acquired Obligations"), bearing such interest and maturing as to principal and interest in such amounts and at such times which, together with any necessary beginning cash balance, will provide for the payment of: -19-P:\20287_CMWl20287_AY6 ~~ (1) Interest on the Refunded Bonds as such becomes due on and prior to Call Date; and (2) The redemption price (100% of the principal amount) of the Refunded Bonds payable on Call Date. Such Acquired Obligations shall be purchased at a yield not greater than the yield permitted by the Code and regulations relating to acquired obligations in connection with refunding bond issues. (b) Escrow Agent/Escrow Agreement. The City hereby appoints U.S. Bank National Association, Seattle, Washington, to perform the duties described herein (the "Escrow Agent"). A beginning cash balance, if any, and Acquired Obligations shall be deposited irrevocably with the Escrow Agent in an amount sufficient to defease the Refunded Bonds. The proceeds of the Bonds after acquisition of the Acquired Obligations and provision for the necessary beginning cash balance shall be utilized to pay expenses of the acquisition and safekeeping of the Acquired Obligations and expenses of the issuance of the Bonds. In order to carry out the purposes of this section, the City Representative is authorized and directed to execute and deliver to the Escrow Agent, an Escrow Deposit Agreement and a Cost of Issuance Agreement, each substantially in the forms attached hereto as Exhibit A and Exhibit B, respectively. (c) Implementation of Refunding Plan. The City hereby irrevocably calls the Refunded Bonds for redemption on the Call Date in accordance with the provisions of the 2006 Bond Ordinance. Said defeasance and call for redemption of the Refunded Bonds shall be irrevocable after the final establishment of the escrow account and delivery of the Acquired Obligations to the Escrow Agent. -20-P:\20287 _CMW\20287 _AY6 ~~ The Escrow Agent is hereby authorized and directed to provide for the giving of notices of the redemption of the Refunded Bonds in accordance with the applicable provisions of the 2006 Bond Ordinance. The City Representative is authorized and requested to provide whatever assistance is necessary to accomplish such redemption and the giving of notices therefor. The costs of publication of such notices shall be an expense of the City. The Escrow Agent is hereby authorized and directed to pay to the paying agent for the Refunded Bonds, sums sufficient to pay, when due, the payments specified in subsection (a) above. All such sums shall be paid from the money and Acquired Obligations deposited with said Escrow Agent pursuant to this section, and the income therefrom and proceeds thereof. The City will take such actions as are found necessary to ensure that all necessary and proper fees, compensation and expenses of the Escrow Agent shall be paid when due. Section 8. Tax Covenants; Special Designation. The City covenants that it will not take or permit to be taken on its behalf any action that would adversely affect the exemption from federal income taxation of the interest on the Bonds and will take or require to be taken such acts as may reasonably be within its ability and as may from time to time be required under applicable law to continue the exemption from federal income taxation of the interest on the Bonds. (a) Arbitrage Covenant. Without limiting the generality of the foregoing, the City covenants that it will not take any action or fail to take any action with respect to the proceeds of sale of the Bonds or any other funds of the City which may be deemed to be proceeds of the Bonds pursuant to Section 148 of the Code and the regulations promulgated thereunder which, if such use had been reasonably expected on the dates of delivery of the Bonds to the initial -21-P:\20287_CMW\20287_AY6 ~ purchasers thereof, would have caused the Bonds to be treated as "arbitrage bonds" within the meaning of such term as used in Section 148 of the Code. The City represents that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is an issuer whose arbitrage certifications may not be relied upon. The City will comply with the requirements of Section 148 of the Code and the applicable regulations thereunder throughout the term of the Bonds. (b) Private Person Us e Limitation for Bonds. The City covenants that for as long as the Bonds are outstanding, it will not permit: (1) More than 10% of the Net Proceeds of the Bonds to be allocated to any Private Person Use; and (2) More than 10% of the principal or interest payments on the Bonds in a Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the City) in respect of property, or borrowed money, used or to be used for any Private Person Use. The City further covenants that, if: (3) More than five percent of the Net Proceeds of the Bonds are allocable to any Private Person Use; and (4) More than five percent of the principal or interest payments on the Bonds in a Bond Year are (under the terms of this ordinance or any underlying arrangement) directly or indirectly: -22-P:\20287_CMW\20287_AY6 5/22/15~ (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the City) in respect of property, or borrowed money, used or to be used for any Private Person Use, then, (i) any Private Person Use of the project described in subsection (3) hereof or Private Person Use payments described in subsection ( 4) hereof that is in excess of the five percent limitations described in such subsections (3) or (4) will be for a Private Person Use that is related to the state or local governmental use of the projects financed or refinanced with the proceeds of the Bonds (including the Refunded Bonds), and (ii) any Private Person Use will not exceed the amount of Net Proceeds of the Bonds allocable to the state or local governmental use portion of the project(s) to which the Private Person Use of such portion of the projects financed or refinanced with the proceeds of the Bonds (including the 2006 Bonds) relate. The City further covenants that it will comply with any limitations on the use of the projects financed or refinanced with the proceeds of the Bonds by other than state and local governmental users that are necessary, in the opinion of its bond counsel, to preserve the tax exemption of the interest on the Bonds. The covenants of this section are specified solely to assure the continued exemption from regular income taxation of the interest on the Bonds. (c) Modification of Tax Covenants. The covenants of this section are specified solely to assure the continued exemption from regular income taxation of the interest on the Bonds. To that end, the provisions of this section may be modified or eliminated without any requirement for formal amendment thereof upon receipt of an opinion of the City's bond counsel that such modification or elimination will not adversely affect the tax exemption of interest on any Bonds. -23-P:\20287_CMW\20287_AY6 5/22/1~ (d) Designation. The City hereby designates the Bonds as "qualified tax-exempt obligations" for investment by financial institutions under Section 265(b )(3) of the Code. The City does not anticipate that it will issue more than $10,000,000 in qualified tax-exempt obligations during 2015 (excluding obligations permitted by the Code to be excluded for purposes of the City's qualification as a qualified small issuer). Section 9. Bond Fund and Provision for Tax Levy Payments. A special fund of the City known as the "Limited Tax General Obligation Bond Redemption Fund, 2015" (the "Bond Fund"), is hereby authorized to be established and maintained in the office of the Finance Director of the City. The taxes hereafter levied for the purpose of paying principal of and interest on the Bonds and other funds to be used to pay the Bonds shall be deposited in the Bond Fund no later than the date such funds are required for the payment of principal of and interest on the Bonds. Money in the Bond Fund not needed to pay the interest or principal next coming due may temporarily be deposited in such institutions or invested in such obligations as may be lawful for the investment of City funds . The City hereby irrevocably covenants and agrees for as long as any of the Bonds are outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax upon all the property within the City subject to taxation in an amount that will be sufficient, together with all other revenues and money of the City legally available for such purposes, to pay the principal of and interest on the Bonds as the same shall become due. All of such taxes so collected and any other money to be used for such purposes shall be paid into the Bond Fund. The City hereby irrevocably pledges that the annual tax provided for herein to be levied for the payment of such principal and interest shall be within and as a part of the tax levy permitted to cities without a vote of the people, and that a sufficient portion of each annual levy -24-P:\20287 _ CMW\20287 _AY6 5122115~ to be levied and collected by the City prior to the full payment of the principal of and interest on the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of and interest on the Bonds. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of said taxes and for the prompt payment of the principal of and interest on the Bonds as the same shall become due. Section 10. Defeasance. In the event that the City, in order to effect the payment, retirement or redemption of any Bond, sets aside in the Bond Fund or in another special account, cash or noncallable Government Obligations, or any combination of cash and/or noncallable Government Obligations, in amounts and maturities which, together with the known earned income therefrom, are sufficient to redeem or pay and retire such Bond in accordance with its terms and to pay when due the interest and redemption premium, if any, thereon, and such cash and/or noncallable Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on such Bond. The owner of a Bond so provided for shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive payment of principal, premium, if any, and interest from such special account, and such Bond shall be deemed to be not outstanding under this ordinance. The City shall give written notice of defeasance to the owners of all Bonds so provided and to each party entitled to receive notice in accordance with Section 12 of this ordinance. Section 11. Sale of the Bonds. (a) Designation of Refunded Bonds. The Refunding Candidates may be called for redemption prior to their scheduled maturities. All or some of the Refunding Candidates may be refunded with the proceeds of the Bonds authorized by this ordinance. The City Representative -25-P:\20287_CMW\20287_AY6 5/22/15~ may select some or all of the Refunding Candidates and designate those Refunding Candidates as the "Refunded Bonds" in the Bond Purchase Agreement if and to the extent that that the net present value aggregate savings with respect to the Bonds to be realized as a result of the refunding after payment of all allocable costs of issuance is at least equal to the Savings Target. (b) Bond Sale. The Bonds shall be sold at negotiated sale to the Underwriter pursuant to the terms of the Bond Purchase Agreement. The City Representative is hereby authorized to negotiate terms for the purchase of the Bonds and to execute the Bond Purchase Agreement, with such terms as are approved by the City Representative pursuant to this section (including the designation of the Refunded Bonds) and consistent with this ordinance. The Council has been advised by the Underwriter that market conditions are fluctuating and, as a result, the most favorable market conditions may occur on a day other than a regular meeting date of the Council. The Council has determined that it would be in the best interest of the City to delegate to the City Representative for a limited time the authority to approve the final interest rates, maturity dates (not later than the final maturity of the Refunded Bonds), aggregate principal amount, principal amounts and prices of each maturity (within the parameters required to achieve the Savings Target), redemption rights (provided that the Bonds shall be subject to optional redemption not earlier than five years from date of issue) and other terms and conditions of the Bonds. The City Representative is hereby authorized to approve the final interest rates, maturity dates (not later than the final maturity of the Refunded Bonds), aggregate principal amount, principal amounts and prices of each maturity (within the parameters required to achieve the Savings Target) and redemption rights (provided that Bonds shall be subject to optional redemption not earlier than five years from date of issue) for the Bonds in the manner provided hereafter so long as (i) the -26-P:\20287_CMW\20287_AY6 5/22115~ aggregate principal amount of the Bonds does not exceed $4,225,000 and (ii) so long as the Savings Target is met (as described in subsection (a) of this Section 11). In determining the final interest rates, maturity dates (not later than the final maturity of the Refunded Bonds), aggregate principal amount, principal amounts and prices of each maturity (within the parameters required to achieve the Savings Target) and redemption rights, the City Representative, in consultation with City staff and the Underwriter, shall take into account those factors that, in his or her judgment, will result in the lowest true interest ·cost on the Bonds to their maturity, including, but not limited to current financial market conditions and current interest rates for obligations comparable in tenor and quality to the Bonds. Subject to the terms and conditions set forth in this section, the City Representative is hereby authorized to execute the final form of the Bond Purchase Agreement. Following the execution of the Bond Purchase Agreement, the City Representative shall provide a report to the Council, describing the final terms of the Bonds approved pursuant to the authority delegated in this section. The authority granted to the City Representative by this section shall expire on December 1, 2015. If a Bond Purchase Agreement for the Bonds has not been executed by December 1, 2015, the authorization for the issuance of such Bonds shall be rescinded, and such Bonds shall not be issued nor their sale approved unless such Bonds shall have been re-authorized by ordinance of the Council. The ordinance reauthorizing the issuance and sale of the Bonds may be in the form of a new ordinance repealing this ordinance in whole or in part or may be in the form of an amendatory ordinance approving a Bond Purchase Agreement or establishing terms and conditions for the authority delegated under this section. ( c) Delivery; Documentation. Upon the passage of this ordinance, the proper officials of the City, including the City Representative, are authorized and directed to undertake -27- all other actions necessary for the prompt execution and delivery of the Bonds to the Underwriter and further to execute all closing certificates and documents required to effect the closing and delivery of the Bonds in accordance with the terms of the Bond Purchase Agreement. The City Representative and other City officials, agents, and representatives are hereby au thorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bonds to the Underwriter and for the proper application and use of the proceeds of sale of the Bonds. In furtherance of the foregoing, the City Representative is authorized to approve and enter into agreements for the payment of costs of issuance, including Underwriter's discount, the fees and expenses specified in the Bond Purchase Agreement, including fees and expenses of Underwriter and other retained services, including Bond Counsel, rating agency, fiscal agency, Escrow Agent, and other expenses customarily incurred in connection with issuance and sale of bonds. The disbursement of Bond proceeds to pay certain costs of issuance shall be made by the Escrow Agent under the terms set forth in the Cost of Issuance Agreement. ( d) Preliminary and Final Official Statements. The City Representative is authorized to ratify and to approve for purposes of the Rule, on behalf of the City, the Official Statement (and any Preliminary Official Statement) and any supplement thereto relating to the issuance and sale of the Bonds and the distribution of the Bonds pursuant thereto with such changes, if any, as may be deemed by him/her to be appropriate. The City Representative is authorized to ratify, execute, deliver and approve for purposes of the Rule, on behalf of the City, the Official Statement (and to approve, deem final and deliver any Preliminary Official Statement) and any supplement thereto relating to the issuance and sale of the Bonds and the distribution of the Bonds pursuant thereto with such changes, if any, as may be deemed by him/her to be appropriate. -28-P:\20287_CMW\20287_AY6 5/22/15~ Section 12. Undertaking to Provide Ongoing Disclosure. (a) Contract/Undertaking. This section constitutes the City's written undertaking for the benefit of the owners of the Bonds as required by Section (b)(5) of the Rule. (b) Financial Statements/Operating Data. The City agrees to provide or cause to be provided to the Municipal Securities Rulemaking Board ("MSRB"), the following annual financial information and operating data for the prior fiscal year (commencing in 2016 for the fiscal year ended December 31 , 2015): 1. Annual financial statements, which statements maybe or may not be audited, showing ending fund balances for the City's general fund prepared in accordance with the Budgeting Accounting and Reporting System prescribed by the Washington State Auditor under RCW 43.09.200 (or any successor statutes) and generally of the type included in the official statement for the Bonds under the heading "Fund Resources and Uses Arising from Cash Transactions for the Current Expense Fund"; 2. The assessed valuation of taxable property in the City; 3. Ad valorem taxes due and collected; 4. Property tax rates per $1,000 of assessed valuation; and 5. Outstanding general obligation debt of the City. Items 2-5 shall be required only to the extent that such information is not included in the annual financial statements. Such annual information and operating data described above shall be so provided on or before the expiration of nine months after the end of the City's fiscal year. The City's current fiscal year ends December 31. The City may adjust such date if the City changes its fiscal year by providing written notice of the change of fiscal year and the new reporting date to the MSRB. In lieu of providing such annual financial information and operating -29-P:\20287_CMW\20287_AY6 5122/15~ data, the City may cross-reference to other documents available to the public on the MSRB's internet website or filed with the SEC and, if such document is a final official statement within the meaning of the Rule, available from the MSRB or SEC. If not provided as part of the annual financial information discussed above, the City shall provide the City's audited annual financial statement prepared in accordance with regulations prescribed by the State Auditor pursuant to RCW 43.09.200 (or any successor statutes), when and if available, to the MSRB. (c) Material Events. The City agrees to provide notice of the following material events not in excess of ten business days after the occurrence of the event: • Principal and interest payment delinquencies; • Non-payment related defaults, if material; • Unscheduled draws on debt service reserves reflecting financial difficulties; • Unscheduled draws on credit enhancements reflecting financial difficulties; • Substitution of credit or liquidity providers, or their failure to perform; • Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; • Modifications to the rights of Bondholders, if material; • Bond calls, if material, and tender offers; • Defeasances; -3 0-P:\20287_CMW\20287_AY6 5/22/15~ • Release, substitution, or sale of property securing repayment of the Bonds, if material; • Rating changes; • Bankruptcy, insolvency, receivership or similar event of the City; • The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and • Appointment of a successor or additional trustee or the change of name of a trustee, if material. Solely for purposes of information, and not intending to modify this undertaking, the City advises that there is no property securing repayment of the Bonds. (d) Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause to be provided, in a timely manner to the MSRB, notice of its failure to provide the annual financial information described in subsection (b) above on or prior to the date set forth in subsection (b) above. (e) Emma; Format for Filings with the MSRB. Until otherwise designated by the MSRB or the SEC, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB's Electronic Municipal Market Access system ("EMMA"), currently located at www.emma.msrb.org (which is not incorporated into this Official Statement by reference). All notices, financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by -3 1-P:\20287_CMW\20287_AY6 5/22/15~ the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. (f) Termination/Modification. The City's obligations to provide annual financial information and notices of material events shall terminate upon the defeasance, prior redemption or payment in full of all of the Bonds. This section, or any provision hereof, shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this section, or any such provision, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds; and (2) notifies the MSRB of such opinion and the cancellation of this section. Notwithstanding any other provision of this ordinance, the City may amend this section and any provision of this section may be waived with an approving opinion of nationally recognized bond counsel. In the event of any amendment of or waiver of a provision of this section, the City shall describe such amendment in the next annual report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (I) notice of such change shall be given in the same manner as for a material event under Subsection ( c), and (II) the annual report for the year in which the change is made should present a comparison (in narrative form and also, if practical, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. -32-P:\20287_CMW\20287_AY6 5/22/15~ (g) Bond Owner's Remedies Under This Section. A Bond owner's right to enforce the provisions of this section shall be limited to a right to obtain specific enforcement of the City's obligations hereunder, and any failure by the City to comply with the provisions of this undertaking shall not be an event of default with respect to the Bonds under this ordinance. For purposes of this section, "beneficial owner" means any person who has the power, directly or indirectly, to vote or consent with respect to , or to dispose of ownership of, any Bonds, including persons holding the Bonds through nominees or depositories. Section 13. Ratification; General Authorization. The appropriate officials, agents and representatives of the City are authorized to take any actions and to execute any certificates, agreements or other documents as in their judgment may be necessary or desirable in order to carry out the terms of, and complete the transactions contemplated by, this ordinance. All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby ratified and confirmed. Section 14. Severability. If one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements in this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds. Section 15. Effective Date. This ordinance shall take effect from and after its passage and publication as required by law -33-P:\20287 _CMW\20287 _AY6 5/22/15512-\M Adopted by the City Council and signed by its Mayor on May 26, 2015. Mayor ATTEST: Finance Director APPROVED AS TO FORM: City Attorney -34-P:\20287 _ CMW\20287 _AY6 5/22115~ EXHIBIT A ESCROW DEPOSIT AGREEMENT CITY OF MOSES LAKE, WASHINGTON LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2015 THIS ESCROW AGREEMENT, dated as of , 2015 (herein, together with any amendments or supplements hereto, called the "Agreement") is entered into by and between the City of Moses Lake, Washington (herein called the "City"), and U.S. Bank National Association, Seattle, Washington, as Escrow Agent (herein, together with any successor in such capacity, called the "Escrow Agent"). The notice addresses of the City and the Escrow Agent are shown on Exhibit A attached hereto and made a part hereof. WITNESSETH: WHEREAS, the City heretofore has issued and there presently remain outstanding the obligations described in Exhibit B attached hereto (the "Refunded Bonds"); and WHEREAS, pursuant to Ordinance No. __ passed on May 26, 2015 (the "Bond Ordinance"), the City has determined to issue its Limited Tax General Obligation Refunding Bonds, 2015 (the "Bonds"); and WHEREAS, the proceeds of the Bonds are being used for the purpose of providing funds to pay the costs of refunding the Refunded Bonds; and WHEREAS, Grant Thornton LLP has prepared a verification report which is dated July _, 2015 (the "Verification Report") relating to the source and use of funds available to accomplish the refunding of the Refunded Bonds, the investment of such funds and the adequacy of such funds and investments to provide for the payment of the debt service due on the Refunded Bonds; and WHEREAS, simultaneously herewith, the City is entering into a Cost of Issuance Agreement with the Escrow Agent to provide for the payment of costs of issuance relating to the Bonds; and WHEREAS, pursuant to the Bond Ordinance, the Refunded Bonds have been designated for redemption prior to their scheduled maturity dates and, after provision is made for such redemption, the Refunded Bonds will come due in such years, bear interest at such rates, and be payable at such times and in such amounts as are set forth in Exhibit C attached hereto and made a part hereof; and WHEREAS, when Escrowed Securities have been deposited with the Escrow Agent for the payment of all principal and interest of the Refunded Bonds when due, then the Refunded Bonds shall no longer be regarded as outstanding except for the purpose of receiving payment from the funds provided for such purpose; and A-1 P:\20287_CMW\20287_AY6 ~~ WHEREAS, the issuance, sale, and delivery of the Bonds have been duly authorized to be issued, sold, and delivered for the purpose of obtaining the funds required to provide for the payment of the principal of, interest on and redemption premium (if any) on the Refunded Bonds when due as shown on Exhibit C attached hereto; NOW, THEREFORE, in consideration of the mutual undertakings, promises and agreements herein contained, the sufficiency of which hereby are acknowledged, and to secure the full and timely payment of principal of and the interest on the Refunded Bonds, the City and the Escrow Agent mutually undertake, promise and agree for themselves and their respective representatives and successors, as follows: Article 1. Definitions Section 1.1. Definitions. Unless the context clearly indicates otherwise, the following terms shall have the meanings assigned to them below when they are used in this Agreement: Escrow Fund means the fund created by this Agreement to be established, held and administered by the Escrow Agent pursuant to the provisions of this Agreement. Escrowed Securities mean the noncallable Government Obligations described in Exhibit D attached to this Agreement, or cash or other noncallable obligations substituted therefor pursuant to Section 4.2 of this Agreement. Government Obligations mean direct, noncallable (a) United States Treasury Obligations, (b) United States Treasury Obligations -State and Local Government Series, (c) non-prepayable obligations which are unconditionally guaranteed as to full and timely payment of principal and interest by the United States of America or (d) REFCORP debt obligations unconditionally guaranteed by the United States. Paying Agent means the fiscal agency of the State of Washington, as the paying agent for the Refunded Bonds. Section 1.2. Other Definitions. The terms "Agreement" "City " "Escrow Agent" "Bond Ordinance" "Verification ' ' ' ' Report," "Refunded Bonds," and "Bonds" when they are used in this Agreement, shall have the meanings assigned to them in the preamble to this Agreement. Section 1.3. Interpretations. The titles and headings of the articles and sections of this Agreement have been inserted for convenience and reference only and are not to be considered a part hereof and shall not in any way modify or restrict the terms hereof. This Agreement and all of the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to achieve the A-2 P:\20287 _ CMW\20287 _AY6 5/22/15~ intended purpose of providing for the refunding of the Refunded Bonds in accordance with applicable law. Article 2. Deposit of Funds and Escrowed Securities Section 2.1. Deposits in the Escrow Fund. Concurrently with the sale and delivery of the Bonds the City shall deposit, or cause to be deposited, with the Escrow Agent, for deposit in the Escrow Fund, the funds (from the proceeds of the Bonds and a cash contribution by the City) sufficient to purchase the Escrowed Securities described in Exhibit D attached hereto, and the Escrow Agent shall, upon the receipt thereof, acknowledge such receipt to the City in writing. Article 3. Creation and Operation of Escrow Fund Section 3.1. Escrow Fund. The Escrow Agent has created on its books a special trust fund and irrevocable escrow to be known as the Refunding Account (the "Escrow Fund"). The Escrow Agent hereby agrees that upon receipt thereof it will deposit to the credit of the Escrow Fund the funds and the Escrowed Securities described in Exhibit D attached hereto. Such deposit, all proceeds therefrom, and all cash balances from time to time on deposit therein (a) shall be the property of the Escrow Fund, (b) shall be applied only in strict conformity with the terms and conditions of this Agreement, and (c) are hereby irrevocably pledged to the payment of the principal of and interest on the Refunded Bonds, which payment shall be made by timely transfers of such amounts at such times as are provided for in Section 3 .2 hereof. When the final transfers have been made for the payment of such principal of and interest on the Refunded Bonds, any balance then remaining in the Escrow Fund shall be transferred to the City, and the Escrow Agent shall thereupon be discharged from any further duties hereunder. Section 3.2. Payment of Principal and Interest. The Escrow Agent is hereby irrevocably instructed to transfer to the Paying Agent from the cash balances from time to time on deposit in the Escrow Fund, the amounts required to pay the principal of the Refunded Bonds at their respective redemption dates and interest thereon to such redemption dates in the amounts and at the times shown in Exhibit C attached hereto. A-3 P:\20287_CMW\20287_AY6 5122115~ Section 3.3. Sufficiency of Escrow Fund. The City represents that, based upon the information provided in the Verification Report, the successive receipts of the principal of and interest on the Escrowed Securities will assure that the cash balance on deposit from time to time in the Escrow Fund will be at all times sufficient to provide moneys for transfer to the Paying Agent at the times and in the amounts required to pay the interest on the Refunded Bonds as such interest comes due and the principal of the Refunded Bonds as the Refunded Bonds are paid on an optional redemption date prior to maturity, all as more fully set forth in Exhibit E attached hereto. If, for any reason, at any time, the cash balances on deposit or scheduled to be on deposit in the Escrow Fund shall be insufficient to transfer the amounts required by the Paying Agent to make the payments set forth in Section 3.2. hereof, the City shall timely deposit in the Escrow Fund, from any funds that are lawfully available therefor, additional funds in the amounts required to make such payments. Notice of any such insufficiency shall be given promptly as hereinafter provided, but the Escrow Agent shall not in any manner be responsible for any insufficiency of funds in the Escrow Fund or the City's failure to make additional deposits thereto. Section 3.4. Trust Fund. The Escrow Agent or its affiliate, shall hold at all times the Escrow Fund, the Escrowed Securities and all other assets of the Escrow Fund, wholly segregated from all other funds and securities on deposit with the Escrow Agent; it shall never allow the Escrowed Securities or any other assets of the Escrow Fund to be commingled with any other funds or securities of the Escrow Agent; and it shall hold and dispose of the assets of the Escrow Fund only as set forth herein. The Escrowed Securities and other assets of the Escrow Fund shall always be maintained by the Escrow Agent as trust funds for the benefit of the owners of the Refunded Bonds; and a special account thereof shall at all times be maintained on the books of the Escrow Agent. The owners of the Refunded Bonds shall be entitled to the same preferred claim and first lien upon the Escrowed Securities, the proceeds thereof, and all other assets of the Escrow Fund to which they are entitled as owners of the Refunded Bonds. The amounts received by the Escrow Agent under this Agreement shall not be considered as a banking deposit by the City, and the Escrow Agent shall have no right to title with respect thereto except as a trustee and Escrow Agent under the terms of this Agreement. The amounts received by the Escrow Agent under this Agreement shall not be subject to warrants, drafts or checks drawn by the City or, except to the extent expressly herein provided, by the Paying Agent. Article 4. Limitation on Investments Section 4.1. Investments. Except for the initial investment in the Escrowed Securities, and except as provided in Section 4.2 hereof, the Escrow Agent shall not have any power or duty to invest or reinvest any money held hereunder, or to make substitutions of the Escrowed Securities, or to sell, transfer, or otherwise dispose of the Escrowed Securities. A-4 P:\20287 _ CMW\20287 _AY6 5/22/15~ Section 4.2. Substitution of Securities. At the written request of the City, and upon compliance with the conditions hereinafter stated, the Escrow Agent shall utilize cash balances in the Escrow Fund, or sell, transfer, otherwise dispose of or request the redemption of the Escrowed Securities and apply the proceeds therefrom to purchase Refunded Bonds or Government Obligations which do not permit the redemption thereof at the option of the obligor. Any such transaction may be effected by the Escrow Agent only if (a) the Escrow Agent shall have received a written opinion from a firm of certified public accountants that such transaction will not cause the amount of money and securities in the Escrow Fund to be reduced below an amount sufficient to provide for the full and timely payment of principal of and interest on all of the remaining Refunded Bonds as they become due, taking into account any optional redemption thereof exercised by the City in connection with such transaction; and (b) the Escrow Agent shall have received the unqualified written legal opinion of its bond counsel or tax counsel to the effect that such transaction will not cause any of the Bonds or Refunded Bonds to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended. Article 5. Application of Cash Balances Section 5.1. In General. Except as provided in Section 2.1, 3.2 and 4.2 hereof, no withdrawals, transfers or reinvestment shall be made of cash balances in the Escrow Fund. Cash balances shall be held by the as cash balances as shown on the books and records of the Escrow Agent and, except as provided herein, shall not be reinvested by the Escrow Agent; provided, however, a conversion to currency shall not be required (i) for so long as the Escrow Agent's internal rate of return does not exceed 20%, or (ii) if the Escrow Agent's internal rate of return exceeds 20%, the Escrow Agent receives a letter of instructions, accompanied by the opinion of nationally recognized bond counsel, approving the assumed reinvestment of such proceeds at such higher yield. Article 6. Redemption of Refunded Bonds Section 6.1. Call for Redemption. The City hereby irrevocably calls the Refunded Bonds for redemption on their earliest redemption dates, as shown in the Verification Report and on Appendix A attached hereto. Section 6.2. Notice of Redemption/Notice of Defeasance. The Escrow Agent agrees to give a notice of defeasance and a notice of the redemption of the Refunded Bonds pursuant to the terms of the Refunded Bonds and in substantially the forms attached hereto as Appendices A and B attached hereto and as described on said Appendices A and B to the Paying Agent for distribution as described therein. The notice of defeasance shall be given immediately following the execution of this Agreement, and the notice of redemption shall be given in accordance with the ordinance authorizing the Refunded Bonds. The Escrow Agent hereby certifies that provision satisfactory and acceptable to the Escrow Agent has been made for the giving of notice of redemption of the Refunded Bonds. A-5 P:\20287_CMW\20287_AY6 ~~ Article 7. Records and Reports Section 7.1. Records. The Escrow Agent will keep books of record and account in which complete and accurate entries shall be made of all transactions relating to the receipts, disbursements, allocations and application of the money and Escrowed Securities deposited to the Escrow Fund and all proceeds thereof, and such books shall be available for inspection during business hours and after reasonable notice. Section 7 .2. Reports. While this Agreement remains in effect, the Escrow Agent quarterly shall prepare and send to the City a written report summarizing all transactions relating to the Escrow Fund during the preceding financial quarter, including, without limitation, credits to the Escrow Fund as a result of interest payments on or maturities of the Escrowed Securities and transfers from the Escrow Fund for payments on the Refunded Bonds or otherwise, together with a detailed statement of all Escrowed Securities and the cash balance on deposit in the Escrow Fund as of the end of such period. Article 8. Concerning the Paying Agent and Escrow Agent Section 8.1. Representations. The Escrow Agent hereby represents that it has all necessary power and authority to enter into this Agreement and undertake the obligations and responsibilities imposed upon it herein, and that it will carry out all of its obligations hereunder. Section 8.2. Limitation on Liability. The liability of the Escrow Agent to transfer funds for the payment of the principal of and interest on the Refunded Bonds shall be limited to the proceeds of the Escrowed Securities and the cash balances from time to time on deposit in the Escrow Fund. Notwithstanding any provision contained herein to the contrary, the Escrow Agent shall have no liability whatsoever for the insufficiency of funds from time to time in the Escrow Fund or any failure of the obligors of the Escrowed Securities to make timely payment thereon, except for the obligation to notify the City promptly of any such occurrence. The recitals herein and in the proceedings authorizing the Bonds shall be taken as the statements of the City and shall not be considered as made by, or imposing any obligation or liability upon, the Escrow Agent. The Escrow Agent is not a party to the proceedings authorizing the Bonds or the Refunded Bonds and is not responsible for nor bound by any of the provisions thereof (except to the extent that the Escrow Agent may be a place of payment and paying agent and/or a paying A-6 P:\20287 _ CMW\20287 _AY6 5/22/15~ agent/registrar therefor). In its capacity as Escrow Agent, it is agreed that the Escrow Agent need look only to the terms and provisions of this Agreement. The Escrow Agent makes no representations as to the value, conditions or sufficiency of the Escrow Fund, or any part thereof, or as to the title of the City thereto, or as to the security afforded thereby or hereby, and the Escrow Agent shall not incur any liability or responsibility in respect to any of such matters. It is the intention of the parties hereto that the Escrow Agent shall never be required to use or advance its own funds or otherwise incur personal financial liability in the performance of any of its duties or the exercise of any of its rights and powers hereunder. The Escrow Agent shall not be liable for any action taken or neglected to be taken by it in good faith in any exercise of reasonable care and believed by it to be within the discretion or power conferred upon it by this Agreement, nor shall the Escrow Agent be responsible for the consequences of any error of judgment; and the Escrow Agent shall not be answerable except for its own neglect or willful misconduct, nor for any loss unless the same shall have been through its negligence or bad faith. Unless it is specifically otherwise provided herein, the Escrow Agent has no duty to determine or inquire into the happening or occurrence of any event or contingency or the performance or failure of performance of the City with respect to arrangements or contracts with others, with the Escrow Agent's sole duty hereunder being to safeguard the Escrow Fund, to dispose of and deliver the same in accordance with this Agreement. If, however, the Escrow Agent is called upon by the terms of this Agreement to determine the occurrence of any event or contingency, the Escrow Agent shall be obligated, in making such determination, only to exercise reasonable care and diligence, and in event of error in making such determination the Escrow Agent shall be liable only for its own willful misconduct or its negligence. In determining the occurrence of any such event or contingency the Escrow Agent may request from the City or any other person such reasonable additional evidence as the Escrow Agent in its discretion may deem necessary to determine any fact relating to the occurrence of such event or contingency, and in this connection may make inquiries of, and consult with, among others, the City at any time. Section 8.3. Successor Escrow Agents. Any corporation, association or other entity into which the Escrow Agent may be converted or merged, or with which it may be consolidated, or to which it may sell or otherwise transfer all or substantially all of its corporate trust assets and business or any corporation, association or other entity resulting from any such conversion, sale, merger, consolidation or other transfer to which it is a party, ipso facto, shall be and become successor Escrow Agent hereunder, vested with all other matters as was its predecessor, without the execution or filing of any instrument or any further act on the part of the parties hereto, notwithstanding anything herein to the contrary. If at any time the Escrow Agent or its legal successor or successors should become unable, through operation or law or otherwise, to act as Escrow Agent hereunder, or if its A-7 P:\20287 _ CMW\20287 _AY6 5/22/15~ property and affairs shall be taken under the control of any state or federal court or administrative body because of insolvency or bankruptcy or for any other reason, a vacancy shall forthwith exist in the office of Escrow Agent hereunder. In such event the City, by appropriate action, promptly shall appoint a Escrow Agent to fill such vacancy. If no successor Escrow Agent shall have been appointed by the City within 60 days, a successor may be appointed by the owners of a majority in principal amount of the Refunded Bonds then outstanding by an instrument or instruments in writing filed with the City, signed by such owners or by their duly authorized attorneys-in-fact. If, in a proper case, no appointment of a successor Escrow Agent shall be made pursuant to the foregoing provisions of this section within three months after a vacancy shall have occurred, the owner of any Refunded Bond may apply to any court of competent jurisdiction to appoint a successor Escrow Agent. Such court may thereupon, after such notice, if any, as it may deem proper, prescribe and appoint a successor Escrow Agent. Any successor Escrow Agent shall be a corporation organized and doing business under the laws of the United States or the State of Washington, authorized under such laws to exercise corporate trust powers, having its principal office and place of business in the State of Washington, having a combined capital and surplus of at least $100,000,000 and subject to the supervision or examination by federal or state authority. Any successor Escrow Agent shall execute, acknowledge and deliver to the City and the Escrow Agent an instrument accepting such appointment hereunder, and the Escrow Agent shall execute and deliver an instrument transferring to such successor Escrow Agent, subject to the terms of this Agreement, all the rights, powers and trusts of the Escrow Agent hereunder. Upon the request of any such successor Escrow Agent, the City shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor Escrow Agent all such rights, powers and duties. The obligations assumed by the Escrow Agent pursuant to this Agreement may be transferred by the Escrow Agent to a successor Escrow Agent if (a) the requirements of this Section 8.3 are satisfied; (b) the successor Escrow Agent has assumed all the obligations of the Escrow Agent under this Agreement; and (c) all of the Escrowed Securities and money held by the Escrow Agent pursuant to this Agreement have been duly transferred to such successor Escrow Agent. Article 9. Miscellaneous Section 9.1. Notice. Any notice, authorization, request, or demand required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when mailed by registered or certified mail, postage prepaid addressed to the City or the Escrow Agent at the address shown on Exhibit A attached hereto. The United States Post Office registered or certified mail receipt showing delivery of the aforesaid shall be conclusive evidence of the date - and fact of delivery. Any party hereto may change the address to which notices are to be delivered by giving to the other parties not less than ten days prior notice thereof. A-8 P:\20287 _CMW\20287 _AY6 ~~ Section 9.2. Termination of Responsibilities. Upon the taking of all the actions as described herein by the Escrow Agent, the Escrow Agent shall have no further obligations or responsibilities hereunder to the City, the owners of the Refunded Bonds or to any other person or persons in connection with this Agreement. Section 9.3. Binding Agreement. This Agreement shall be binding upon the City and the Escrow Agent and their respective successors and legal representatives, and shall inure solely to the benefit of the owners of the Refunded Bonds, the City, the Escrow Agent and their respective successors and legal representatives. Section 9.4. Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein. Section 9.5. Washington Law Governs. This Agreement shall be governed exclusively by the provisions hereof and by the applicable laws of the State of Washington. Section 9.6. Time of the Essence. Time shall be of the essence in the performance of obligations from time to time imposed upon the Escrow Agent by this Agreement. Section 9.7. Notice to Standard &Poor's. In the event that this Agreement or any provision thereof is severed, amended or revoked, the City shall provide written notice of such severance, amendment or revocation to Standard & Poor's Ratings Services, 55 Water Street, New York, New York 10041, Attention: Refunded Bonds Municipal Bond Department. Section 9.8. Amendments. This Agreement shall not be amended except to cure any ambiguity or formal defect or omission in this Agreement. No amendment shall be effective unless the same shall be in writing and signed by the parties thereto. No such amendment shall adversely affect the rights of the holders of the Refunded Bonds. No such amendment shall be made without first receiving written confirmation from the rating agencies (if any) which have rated the Refunded Bonds that such administrative changes will not result in a withdrawal or reduction of its rating then assigned to the Refunded Bonds. If this Agreement is amended, prior written notice and copies A-9 P:\20287_CMW\20287_AY6 5/2211™ of the proposed changes shall be given to the rating agencies which have rated the Refunded Bonds. EXECUTED as of the date first written above. Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Appendix A Appendix B CITY OF MOSES LAKE, WASHINGTON Finance Director U.S. BANK NATIONAL ASSOCIATION as Authorized Signer Addresses of the City and the Escrow Agent Description of the Refunded Bonds Schedule of Debt Service on Refunded Bonds Description of Beginning Cash Deposit (if any) and Escrowed Securities Escrow Fund Cash Flow Notice of Redemption for the 2006 Bonds Notice of Defeasance for the 2006 Bonds A-10 P:\20287_CMW\20287 _AY6 5/22/15~ City: Escrow Agent: EXHIBIT A Addresses of the City and Escrow Agent City of Moses Lake 401 S. Balsam Moses Lake, WA 98356 Attention: Finance Director U.S. Bank National Association Corporate Trust Services PD-W A-T7CT 1420 Fifth A venue, 7th Floor Seattle, WA 98101 Attention: Vice President A-A-1 P:\20287_CMW\20287_AY6 ~~ *Term Bonds EXHIBITB Description of the Refunded Bonds City of Moses Lake, Washington Limited Tax General Obligation Bonds, 2006 (Dated June 5, 2006) Maturity Date Principal Interest (August 1) Amounts Rates 2017 $ 305,000 4.10% 2018 315,000 4.15 2021* 1,030,000 4.15 2026* 2,020,000 4.25 A-B-1 P:\20287 _ CMW\20287 _AY6 5122115~ Date Total EXHIBITC Schedule of Debt Service on the Refunded Bonds Interest $ $ A-C-1 Principal/ Redemption Price $ $ Total $ $ P:120287_CMW\20287_AY6 ~ I. Cash $ --- II. Other Obligations Description Maturity Date Total EXHIBITD Escrow Deposit $ $ Principal Amount A -D-1 Yield Total Cost % $ $ P:\20287_CMWl20287_AY6 5/22/15~ Date EXHIBITE Escrow Fund Cash Flow Escrow Requirement $ $ $ $ Net Escrow Receipts A-E-1 $ $ Excess Receipts $ Cash Balance P:\20287_CMW\20287_AY6 ~~ APPENDIX A NOTICE OF REDEMPTION* City of Moses Lake, Washington Limited Tax General Obligation Bonds, 2006 NOTICE IS HEREBY GIVEN that the City of Moses Lake, Washington has called for redemption on August 1, 2016, the outstanding Limited Tax General Obligation Bonds, 2006 (the "Bonds") described below. The Bonds will be redeemed at a price of one hundred percent (100%) of their principal amount, plus interest accrued to August 1, 2016. The redemption price of the Bonds is payable on presentation and surrender of the Bonds at the office of: By Mail, Hand or Overnight Mail to: U.S. Bank National Association Global Corporate Trust Services 111 Fillmore Ave E St. Paul, MN 55107 Interest on all Bonds or portions thereof which are redeemed shall cease to accrue on August 1, 2016. The following Bonds are being redeemed: Maturity Years Principal Interest CUSIP (August 1) Amounts Rates Nos. 2017 $ 305,000 4.10% 619551HW7 2018 315,000 4.15 619551HX5 2021 * 1,030,000 4.15 619551JA3 2026* 2,020,000 4.25 619551JB1 *Term Bonds * This notice shall be given not more than 60 nor less than 30 days prior to August 1, 2016 by first class mail to each registered owner of the Refunded Bonds. In addition notice shall be mailed at least 30 days prior to August 1, 2016 to The Depository Trust Company of New York, New York; Martin Nelson & Company, Inc., Standard & Poor's Ratings Services, National Public Finance Guarantee (formerly MBIA Insurance Corporation), and to the Municipal Securities Rulemaking Board. Page I-Appendix A P:\20287_CMW\20287_AY6 5/22/15~ By Order of the City of Moses Lake, Washington U.S. Bank National Association, as Paying Agent Withholding of 28% of gross redemption proceeds of any payment made within the United States may be required by the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the "Act") unless the Paying Agent has the correct taxpayer identification number (social security or employer identification number) or exemption certificate of the payee. Please furnish a properly completed Form W-9 or exemption certificate or equivalent when presenting your Bonds. Page 2-Appendix A P:\20287_CMW\20287_AY6 5/22/15~ APPENDIXB Notice of Defeasance* City of Moses Lake, Washington Limited Tax General Obligation Bonds, 2006 NOTICE IS HEREBY GIVEN to the owners of that portion of the above-captioned bonds with respect to which, pursuant to an Escrow Agreement dated , 2015, by and between City of Moses Lake, Washington (the "City"), and U.S. Bank National Association, Seattle, Washington (the "Escrow Agent"), the City has deposited into an escrow account, held by the Escrow Agent, cash and non-callable direct obligations of the United States of America, the principal of and interest on which, when due, will provide money sufficient to pay each year, to and including the respective maturity or redemption date of such bonds so provided for, the principal thereof and interest thereon (the "Defeased Bonds"). Such Defeased Bonds are therefore deemed to be no longer outstanding pursuant to the provisions of Ordinance No. 2256 of the City, authorizing the issuance of the Defeased Bonds, but will be paid by application of the assets of such escrow account. The Defeased Bonds are described as follows: Limited Tax General Obligation Bonds, 2006 (Dated June 5, 2006) Maturity Years Principal CU SIP Call Date (August 1) Amounts Interest Rates Nos. (at 100%) 2017 $ 305,000 4.10% 619551HW7 08/01/2016 2018 315,000 4.15 619551HX5 08/01/2016 2021 * 1,030,000 4.15 619551JA3 08/01/2016 2026* 2,020,000 4.25 619551JB1 08/01/2016 *Term Bonds Information for Individual Registered Owner The addressee of this notice is the registered owner of Bond Certificate No. __ of the Defeased Bonds described above, which certificate is in the principal amount of $ ___ _ All of which has been defeased as described above. * This notice shall be given immediately by first class mail to each registered owner of the Defeased Bonds. In addition notice shall be mailed to The Depository Trust Company of New York, New York; U.S. Bank National Association, as Fiscal Agent; Standard & Poor's Ratings Services, New York, New York, Martin Nelson & Company, Inc ., National Public Finance Guarantee (formerly MBIA Insurance Corporation), and to the Municipal Securities Rulemaking Board. Appendix B P:\2028 7 _ CMW\20287 _AY6 5/2211 5~ EXHIBITB COSTS OF ISSUANCE AGREEMENT CITY OF MOSES LAKE, WASHINGTON LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2015 THIS COSTS OF ISSUANCE AGREEMENT, dated as of June _, 2015 (herein, together with any amendments or supplements hereto, called the "Agreement"), is entered into by and between the City of Moses Lake, Washington, (herein called the "City") and U.S. Bank National Association, Seattle, Washington, as Escrow Agent (herein, together with any successor in such capacity, called the "Escrow Agent"). WITNESSETH: WHEREAS, pursuant to Ordinance No. __ passed on May 26, 2015 (the "Bond Ordinance"), the City has determined to issue its Limited Tax General Obligation Refunding Bonds, 2015 (the "Bonds"); and WHEREAS, simultaneously herewith, the City is entering into an Escrow Deposit Agreement, dated June _, 2015 under which the Escrow Agent will hold invested proceeds of the Bonds in order to pay and redeem the refunded bonds under the terms set forth therein; and WHEREAS, certain proceeds of the Bonds will be delivered to the Escrow Agent on the date of issuance of the Bonds that are required to be disbursed to pay costs of issuance of the Bonds; and WHEREAS, the Escrow Agent has agreed, without additional compensation to disburse the Bond proceeds received to pay costs of issuance under the terms of this Agreement; Section 1. Deposit in the Costs of Issuance Fund. The Escrow Agent has created on its books a special trust fund and escrow fund to be known as the Costs of Issuance Fund. The Escrow Agent agrees that upon receipt it will deposit to the credit of the Costs of Issuance Fund Account the sum of$ to pay those costs of issuance set forth on Exhibit A. Such deposit, all proceeds therefrom, and all cash balances on deposit therein shall be the property of the Costs of Issuance Fund to pay those costs of issuance set forth on Exhibit A upon receipt of invoices. If any of the $ deposit allocated for costs of issuance for the Bonds remains unspent on August _, 2015, the Escrow Agent shall transfer such unspent amount to the City, and this Agreement shall be deemed fully performed and terminated. Section 2. Investments. The Escrow Agent shall not have any power or duty to invest or reinvest any money held hereunder. Section 3. Limitation on Liability. The liability of the Escrow Agent to transfer funds for the payment of the costs of issuance identified herein shall be limited to the proceeds of the Bonds delivered to the Escrow Agent. Section 4. Compensation. The City shall pay to the Escrow Agent fees for performing the services hereunder and under the Escrow Agreement for the expenses incurred or to be incurred by the Escrow Agent in the administration of this Agreement and the Escrow Agreement pursuant to the terms of the Fee Schedule attached as Exhibit B. The Escrow Agent hereby agrees that in no event shall it ever assert any claim or lien against funds held under the Escrow Agreement for any fees for its services, whether regular or extraordinary, as Escrow Agent, or in any other capacity, or for reimbursement for any of its expenses as Escrow Agent or in any other capacity. Section 5. Notice. Any notice, authorization, request, or demand required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when mailed by registered or certified mail, postage prepaid addressed to the City or the Escrow Agent at the address shown on Exhibit A to the Escrow Agreement. Section 6. Washington Law Governs. This Agreement shall be governed exclusively by the provisions hereof and by the applicable laws of the state of Washington. B-2 P:\20287 _ CMN\20287 _AY6 ~51W44; EXECUTED as of the date first written above. Exhibit A -Costs of Issuance Schedule Exhibit B -Fee Schedule CITY OF MOSES LAKE, WASHINGTON Finance Director U.S. BANK NATIONAL ASSOCIATION Authorized Signatory B-3 P:\20287 _CMW\20287 _AY6 5/22/15~ EXHIBIT A Costs of Issuance Bond Counsel Fee (K&L Gates LLP) ................. $ Escrow Agent Fee (U.S. Bank National Association) ................................................... . Verification Agent Fee ( ) ................ .. Rating Agency Fee (Standard & Poor's) ........... . Total: .............................................................. $ B-A-1 P:\20287_CMW\20287_AY6 5/22/15~ EXHIBITB FEE SCHEDULE See Attached B-B-1 P:\20287_CMW\20287_AY6 ~§l.'W% CERTIFICATE OF FINANCE DIRECTOR I DO HEREBY CERTIFY that I am the duly qualified, appointed and acting Finance Director of the City of Moses Lake, Washington (the "City"), and keeper of the records of the City Council; and I HEREBY CERTIFY: 1. That the attached ordinance is a true and correct copy of Ordinance No. __ of the City (the "Ordinance"), as finally passed at a regular meeting of the City Council held on the 26th day of May, 2015 and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a quorum was present throughout the meeting and a legally sufficient number of members of the City Council voted in the proper manner for the passage of the Ordinance; that all other requirements and proceedings incident to the proper passage of the Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this 26th day of May, 2015. Finance Director P:\20287 _ CMW\20287 _AY6 5122/15~ May 12, 2015 CIT Y O F MOSES LAKE TO: City Manager for Council Consideration FROM : Chief of Police SUBJECT: Acceptance of Donation from the Dean Mitchell Family Attached for Council approval is a resolution accepting donation from Mitchell Fam ily in the amount of $500.00. These monies are to be used to enhance the department's honor guard program. The Moses Lake Police Department would like to thank Dean Mitchell and his family for their donation and support. Respectively submitted, in Attachment: Resolution / City Manager 764-3701 ·City Attorney 764-3 703 ·Community Development 764-3750 ·Finance 764-3717 ·Fire 765-2204 Municipal Senices 764-3783 ·Municipal Court 764-3701 ·Parks & Recreation 764-3805 ·Police 764-3887 ·Fax 764-3739 40 1 S Balsam St .. P.O. Drawer 1579 ·Moses Lake, WA 98837-0244 . www.cityofml.com RESOLUTION NO. ? 5 l q A RESOLUTION ACCEPTING A CASH DONATION OF $500 FROM THE DEAN MITCHELL FAMILY RECITALS: 1. The Dean Mitchell family has donated five hundred dollars ($500) to the City of Moses Lake Police Department to be used to enhance the honor guard program. RESOLVED: 1. The $500 donation is accepted. 2. The City of Moses Lake wishes to express its sincere appreciation to the Dean Mitchell family. Adopted by the City Council on May 26, 2015. Dick Deane, Mayor ATTEST: W. Robert Taylor. Finance Director Memorandum To: From: Date: Re: City Manager for Council Consideration Parks & Recreation Director May 15, 2015 Recommendation from Parks & Recreation Commission -Boat Race At the regular May meeting of the Moses Lake Parks & Recreation Commission, a re~uest seeking authorization to hold a boat race at Cascade Park on September 12th & 13t by Kyle Bahl representing the Seattle Outboard Association was reviewed. After significant discussion, the group voted unanimously to recommend that the City Council approve the request. Th;;:m w~~on Spencer Grigg Parks & Recreation Director c ---· PARKS AND REO,~EATION COMMISSION MINUTES MAY 13, 2015 Members present: Members absent: Staff present: Guests present: ;tarry Dennis, Bette Lang, Tiffany Quilter, Char Rios and Connor Lange 1"¢harles Maynard and David Enquist ·.·~pencer Grigg, Lori Moholt-Phillips and I<Serri Smoot ··_Mayor Dick Deane, Don Myers and Kayla Fulbright ·,· 2015 MEETING ATIENDANCE RECORD [N;m~---·· -~~-' r-1a.n--· n;~b--: r-Mar . fAp~---r··May -f"-j~~e---· 11~1Y-r·A~g··-· rs·e-pt· f"oct-r-i~ov·--roec-·-1 Dennis, L . rc-rxrx-rc-r-x-r--·--r-·---· r ----r--1--r---r- I Quilter,T -~·rc-1·-x-rx-i-cr--x-1--i--r-r-1-1-~ f"Lang,B f_C_f_X_f_X-rc-·rx·~i --i-·--·f ·r--r--1-r- [ Maynard:c-r-c-r--x-rx-·rc-n --r--r--·--1---· i---r-r·---r- r··ruos;c-···-··--· r·--c----r··-x-··-i---x-r-c -r-·--:ir--· r· .. ·----· r· --·· 1----·---r···-·--··----r·---···--· r----·· · 1- 1 Enquist,D rc-1x-i""E"IC!_E_f_ ·-f--r-i---r--r --·-r- 1 Lange, c rc-rE-IE re-:-·r-x--1-·r--,----r--. 1-1--r- C=Meeting Cancelled X=Present O=Absent E=Excused R=Resigned :, Call Meeting to Orde?~; The regular meeting wa.s called to order by Chair Larry Dennis at 7:03 p.m . . !:: Introduction of Guest~Nisitors Mayor Dick Deane, D6.n Myers and Kayla Fulbright present. ~ Approval of Minutes of Prior Meeting ,. Ms. Rios moved the dtaft minutes of March 11, 2015, be approved as submitted, seconded by Ms. Lang. Unanimously approve~ and passed. , CommunicationJCorrespondence Connie Cervantes -Setzhawk Event - Ms. Cervantes not present. Mr. Grigg gave a summary of what she is requesting, as far as he understands it from her letter and her appearance at two City Council meetings. Discussion held. At this time we don't have any money to assist her, b~t her ideas are good. She is welcome to attend one of our meetings. Because she wants her events to occur Qn Meµiorial Day weekend, so may want to consider contacting Moses Lake Spring Festival to coordinate something With them for next year since there isn't really enough time this year. I Kyle Bahl -Septembef.'10utboard Race - The Seattle Outboard Association is requesting to hold their boat race at Cascade Park the weekend of September 12'11• They would like~.fo rent the entire park for the weekend. Brief discussion held regarding the event. Mr. Grigg doesn't feel the'y::need to rent the entire park because we aren't that busy in September. We would however need to let any other c~;tnpers know about the boat race in case they want to choose another weekend to stay. Ms. Lang made a motion tq~recommend that the City Council approve Mr. Bahl's request. Ms. Quilter seconded the motion. Motion passeCl unanimously. Mr. Grigg will forward the Commission's request to City Council. .. ; .; Plat Reviews/Dedication, or Fee in Lieu of Land-Monthly Update Crossroads North Phases II-VI Major Plats -" We have been in meetings with the Hayden Corporation on Crossroads North phases Il-VI. They will be doing one phase per year. We met with them on the possibility of waiving two years of fee-in-lieu and having them build the park up front and dedicate and donate it to the City after it's completed. Mr. Grigg explained why this would be a benefit to b9th the City and Hayden. We have preliminary approval from Hayden and they may be able to complete the p~k by the end of this summer. Discussion held regarding the park location and amenities. ", ,:i ~ t;:·. :'t Memorandum To: From: Date: Re: City Manager for Council Consideration Parks & Recreation Director May 15, 2015 Mount Rainier Professional Baseball League Request to Sell Alcohol Keith Marshall representing the Mount Rainier Professional Baseball League is requesting authorization to sell alcohol during their games at Larson Playfield and Lauzier Athletic Complex. We have met with representatives of the league and advised them of the requirements with the City Council and the Liquor Control Board. T/;om ~ation. Spencer Grigg Parks & Recreation Director To the Moses Lake City Council: The Mount Ranier Professional Baseball League thanks you for welcoming the Rattlesnakes to Moses Lake, we are putting together a fun summer of professional baseball! As General Manager, I respectfully request the opportunity to discuss with you the possibility of providing beer for our fans at Lauzier and Larson ballparks during the season beginning May 21st through August 11th, during your session on May 26th. Sincerely Keith Marshall 509-91 0-1460 K_danson8787@yahoo.com City Council Members: Deck Deane, Mayor Karen Liebrecht, Deputy Mayor Jon Lane Dr. David Curnel Bil l Ecret Jason Avila Todd Voth We write to support the request that the main activity path which runs through the heart of Moses Lake be named the "Joseph K. Gavinski Trail" in honor of our former City Manager, Joe Gavinski. Mr. Gavinski has been a dedicated supporter of Moses Lake's trail system since the Trail Planning Team committee's beginning over ten years ago. The TPT began with a Healthy Community's grant obtained by former city council members and Mr. Gavinski, as a way to create a better, healthier place to live. He has always encouraged our efforts and given his wisdom to our decisions. The Trail Planning Team is a committee of volunteers, but Joe has encouraged and supported city staff participation. None of the many th ings the TPT has accomplished would have been possible without the able and enthusiastic help of City staff in Public Works, Planning and Park and Recreation Departments. The TPT recognizes that many other city facilities and activities owe their origin to Mr. Gavinski, including the Surf and Slide Aqua Center, and the new city Museum and Art building, and we would be proud to have our activity trail named after Joe Gavinski. Tra il Planning Team Co-Chairs Joe Rogers Richard Teals I ; Proposed Name Joseph K. Gavinski Trail City of Moses Lake Project Update, May 2015 R Iv C d p . Name Address Description Date Completed SGL Building #3 8781 Ra ndolph Rd NE 3rd building for the carbon fiber manufacturing plant for BMW 5-18-15 American Legion 538 W. Broadway Expanded building for additional tables & seating, and upgraded restrooms 5-12-15 Maria's 212 S. Division Remodeled former computer repair shop into restaurant 5-5-15 Dragon Express 1790 E. Kittelson #A Tenant improvement for take out Chinese food 5-5-15 Mason's Place 102 E. Third #101 Coffee shop in Sm ith-Martin building with sidewalk seating available 5-4-15 Tacos El Rey 1571 E. Yonezawa Remodeled old Family Auto building into second location, to replace the 5-1-15 food truck thev have been usina at this c;ite Permits Under Review -Name Address Notes Date permit applied for Pita Pit 322 W. Broadway Remodeling former real estate office into restaurant. Same owners as Ephrata 5-18-19 Pita Pit. Party City 1020 N. Stratford Party supply store. Tenant improvement at Moses Lake Town Center divide 5-14-15 building to add a retail space next to Jo-Ann Fabrics. Review letter sent 5-1 8-15. Moses Lake School District Garden Heights, Knolls Adding 1 portable to each of 3 schools. Missing information was provided 5-18-5-8-15 Vista, & Lakeview 15. Key Bank 314 E. Third Interior remodel. Has been ready to issue as soon as fees are paid since 5-8-15 5-4-15 Panda Express 1029 N. Stratford New stand-alone restaurant with drive-thru at Penn Plaza, near Starbucks, Blue 5-1 -15 Palm, etc. Review letters sent 5-6 & 5-1 1. Michael's Bistro 221 W . Broadway Addition. Review letters sent 5-6 & 5~8. More information submitted 5-14 & 5-18. 4-23-15 Granco Federal Credit 401 E. Fifth Next to Rite Aid. Previous permit was ready to issue 8-17-14 but applicant never 4-21-15 Union picked it up. Submitted new plans 4-21-15. Review letters sent 4-27 & 4-28. Commerce Park Building 5 8394 Doolittle 100,000 SF warehouse. Review letter sent 4-20-15. As of 5-20, still waiting for 4-8-15 proponent to submit review fees, corrected plans, & environmental review. ComTech Building 5855 Patton 30,000 SF building. Building review letter sent 4-21-15. As of 5-20, still waiting 4-8-15 Page 1 of 3 5-21-15 Name Address Notes Date permit applied for for proponent to submit review fees, corrected plans, & environmental review. Americold 3245 Road N Fire pump building and water line installation. Review letter sent 4-15-15. 4-7-15 Chelsea Park Apartments NW corner of Valley & 180 market rate apartments in 12 buildings+ leasing office. 1, 2, & 3 bedroom. 7 3-4-15 Evergreen Housing Grape buildings will have 12 units, 4 buildings will have 24 units. Future permits for Develooment LLC swimmina oool r~roorts & retainina wall. Review letters sent 3-10 3-20 & 3-23. Proiects Under Construct" Name Address Date Notes Last inspection or status permit issued Sonico 6464 N. Stratford 5-19-15 New building for aircraft repair. SGL 8781 Randolph Rd 4-27-15 Concrete pad for nitrogen tanks coffee stand 955 W . Broadway 4-14-15 Water/sewer service to coffee hut Applicant may be reconsidering Ag West 950 E. Broadway 3-17-15 Add a workshop/storage warehouse behind 4-27-1 5. Framing the existing building Smith-Martin Building 102 E. Third 2-23-15 Former JC Penney building. Remodeling for Work is progressing on tenant 7-8-14 Ag World offices & other office space to rent. improvements 11 -13-13 10 different permits applied for and issued. New businesses include photographer, barber shop, attorney, and offices GESA Credit Union 721 Pioneer 2-13-15 New 4463 SF building 5-18-15. Insulation & framing Pro Touch Auto Detail 1028 W. Broadway 1-20-15 Repair of fire damage plus adding shop space 2-12-15. Insulation Moses Lake Veterinary Clinic 3918 E. Broadway 11 -20-14 1283 SF addition 3-23-15 final inspection. Some corrections needed REC Silicon Fluid Bed 3322 Rd N NE 11-18-14 Adding 2 more reactors to increase 4-7-15 Slab inspection Reactor addition production capacity Grant County Mall 601 S. Pioneer Way 10-27-14 2270 SF addition on south side of building. No Permit picked up but work not tenant named yet. started yet Bud Clary/Discovery Ford 1140 S. Pioneer 10-21-14 Renovating dealership, adding larger 5-20-15. Stormwater inspection showroom & service garage Page 2 of 3 5-21-15 -Name Address Date Notes Last inspection or status permit issued The Inn at Moses Lake 17 41 E. Kittelson 10-16-14 Adding 43 rooms to existing building 5-19-15 Final inspection. A few corrections needed Retail marijuana shop 1037 W. Marina Dr 10-15-14 Interior remodel 10-21-14 Framing inspection Burger King 713 N. Stratford 10-14-14 Inside renovation & exterior update Should be requesting final inspection soon Grant Transit Authority 420 S. Division 10-8-14 Demolition of previous buildings to make way Demolition finaled 3-6-15. Permit for planned transit center for transit center has not been applied for yet. DSHS 1651 S. Pilgrim St. 8-26-14 Dept. of Health & Social Services large new Almost complete. Need to finish building to consolidate existing offices landscaping, parking, etc. scattered throughout the area Kid's Zone Daycare 619 N. Stratford #B 6-24-14 Day care center next to Anytime Fitness 2-12-15 Drywall/Firewall CannaCola 3426 Citation 6-14-14 Remodeling existing building into processing 3-5-15 Drywall inspection. Some facility for marijuana-infused soda changes to the plans. Pacific Northwest Mechanical 6171 S. Frontage Rd 5-12-14 New building for metal fabrication business. Complications with proposed water storage system for fire suppression, due to work completed without a permit Benny's Tires 124 N. Block 4-14-14 Moving from existing location on Wheeler 12-19-14. Drywall inspection. As Road to new building on Block of 5-20, staff recently confirmed with proponent that project is still in progress. Guild Mortgage 506 E. Hill 8-21-13 Remodel and expand existing office Should be requesting final inspection soon Boys & Girls Club 425 N. Paxson Dr 5-16-13 After school care facility on the grounds of 2-24-15 Gas piping inspection Park Orchard Elementarv Page 3 of 3 5-21-15 May 21, 2015 TO: City Manager FROM: Utility Service Supervisor ~ SUBJECT: Investment Report Attached is the Investment Report for the month of April, 2015. cc: Finance Director Investment Report April 2015 Investment Investment Amount Interest Purchase Maturity Interest With Type Rate Date Date Earned Investments Outstanding Total Outstanding: Investment Maturities Grant County Invest Pool Invest Acct 11,276,894.75 1.96 04/01/2015 04/30/2015 18,166.88 Wa. State Invest Pool Invest Acct 1,690,266.19 0.14 04/01/2015 04/30/2015 200.55 Total Maturities: 12,967, 160.94 Investment Purchases Grant County Invest Pool Invest Acct 11,295,061.63 Wa. State Invest Pool Invest Acct 2, 183,011.57 Total Purchases: 13,478,073.20 Investment Totals Beginning Balance * 12,967, 160.94 Total Maturities 12,967,160.94 Total Purchases 13,478,073.20 Endina Balance * 13,478 073.20 I Monthly Interest Earned 18 367.43 * Beginning Balance =Total Outstanding +Total Maturities *Ending Balance= Beginning Balance -Total Maturities+ Total Purchases May21 ,2015 Honorable Mayor and Moses Lake City Council Dear Council Members C I TY OF MOSES LAKE Attached 1s sales tax information for February 2015 sales which the City received on April 30, 2015. Th is report indicates the City received $368,481 .78. The $368,481 .78 in receipts for February compares with February 2014 receipts of $402,265 .84. For the year, the 2015 receipts are approximately 6.093% lower than the 2014 receipts for the same period . Also provided is the transient rental income report for income the City re ceived on April 30, 2015. This report indicates April 30 , 2015 income (for February sales) of $32,320.66. This compares with $31,468.50 for the same period in 2014. For the year. transient rental income receipts are approximately 9% higher than the 2014 receipts for the same period. Respectfully submitted Gilbert ~ Interim City Manager GA:jt City Manager 764-3701 ·City Attorney 764-3703 ·Community Development 764-3750 . Finance 764-3717 . Fire 765-2204 Municipal Services 764-3783 ·Municipal Court 764-3701 ·Parks & Recreation 764-3805 . Police 764-3887 . Fax 764-3739 401 S Balsam St .. P.O. Drawer 1579 . Moses Lake, WA 98837-0244 . www.cityofml.com Sales Tax Receipts -Monthly Month Sales YTD Received Period 2011 2012 2013 2014 2015 Change Jan Nov 367,830.83 403,504.15 401,499.05 430,110.34 437,747.56 1.78% Feb Dec 488,453.72 459,218.16 491,341.62 537,941.54 499,833.67 -3.15% Mar Jan 324,247.20 331,644.01 373,707.66 443,309.81 397, 122.95 -5.43% Apr Feb 368,305.65 350,818.56 364, 137.97 402,265.84 368,481.78 -6.09% May Mar 456,738.86 405,657.25 475,345.89 476,064.44 June Apr 439,396.45 399,414.06 437,909.92 475,371.67 . July May 431,750.56 419,629.64 478,822.77 454,949.89 Aug June 453,961 .67 432,420.11 460,309.61 512,038.78 Sept July 411,796.14 407,813.31 457,908.37 510,845.79 Oct Aug 446,905.90 455,185.85 511,513.84 475,742.68 Nov Sept 411,689.43 422, 198.39 465,603.85 493,879.14 Dec Oct 406,648.97 424,167.87 441,278.01 437,266.10 Totals 5,007,725.38 4,911,671.36 5,359,378.56 5,649,786.02 1,703, 185.96 TRANSIENT RENTAL INCOME -MONTHLY TOTAL RECEIVED MONTH SALES YTD RECEIVED PERIOD 2012 2013 2014 2015 Change JAN NOV 25,073.90 37,239.62 33,221.58 45,363.54 37% FEB DEC 26,277.18 19,145.26 28,737.22 22,720.1 8 10% MAR JAN 28,091.94 32,692.16 26,058.10 29,287.72 11% APRIL FEB 22,286.68 22,967.86 31,468.50 32,320.66 9% MAY MAR 25,787.06 36,755.64 34,621.22 JUNE APRIL 35,334.86 38,830.04 41,151.98 JULY MAY 45,674.12 64,910.04 53,058.98 AUGUST JUNE 55,497.56 49,135.32 70,246.58 SEPT JULY 53,987.68 62,363.32 67,348.68 OCT AUGUST 57,117.62 68,846.76 63,268.00 NOV SEPT 46,866.78 57,668.74 56,268.68 DEC OCT 34,675.70 41 ,957.82 39,460.80 TOTALS 456 671.08 532 512.58 544 910.32 129 692.10