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11272012Part3November 19, 2012 TO: City Manager FROM: Finance Director SUBJECT: Ordinance -2013 Budget -2nd Reading Attached is an ordinance which adopts the budget for the 2013 fi scal year. The ordinance is presented for Council consideration. This is the second reading of the ordinance. Respectful y submitted // 4' (A) ~':r w. Robert Taylo() ORDINANCE NO. 2665 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF MOSES LAKE, WASHINGTON FOR THE YEAR OF 2013 THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. The total amounts of said budget for the year 2013 are as follows: 000 102 103 114 116 119 314 315 410 471 477 490 493 495 498 501 503 517 519 528 611 GENERAL FUND TOURISM ACTIVITIES GRANTS AND DONATIONS PATHS & TRAILS STREET FUND STREET REPAIR AND RECONSTRUCTION FUND PARK AND RECREATION IMPROVEMENT FUND PARK MITIGATION CAPITAL PROJ FUND WATER/SEWER FUND (M & 0) WATER RIGHTS WATER/SEWER CONSTRUCTION FUND SANITATION FUND WATER RIGHTS AIRPORT AMBULANCE FUND UNEMPLOYMENT COMPENSATION INSURANCE FUND SELF INSURANCE FUND CENTRAL SERVICES FUND EQUIPMENT RENTAL FUND BUILDING FUND, (M & 0) FIREMEN'S PENSION FUND TOTAL $ 23,198,900 542,500 223,900 225,000 1,995,900 1,316,600 60,000 300,200 13,469,000 832,600 5,839,800 2,805,600 1,752,500 95,600 2,992,800 191,000 1,275,200 781 ,900 3,212,700 1,491,300 485.800 $ 63,088,800 Section 2. The 2013 Budget includes $9 ,727,800 of operating "transfers-out" which are also budgeted at their point of expenditure or are transferred to non-budgeted debt service accounts. The 2013 Budget provides for internal service fund service expenditures of $6,287, 1 00. These funds provide services for the other funds and are supported by rates included in other budgets, as well as being budgeted as internal service funds. Ending fund balances in operating funds excluding internal service, debt service, and fiduciary funds total $4,635,050 and require further appropriation by the City Council before they can be expended. Section 3. The 2013 Comprehensive Budget for the city as a whole is $40,551,950 which includes an estimated $3,388,400 for debt service expense, continuing capital projects, assessment funds and other non- budgeted items. These items are an estimation only and can be changed as necessary without further budget appropriation, unless the total expenditures of a carryover project exceeds the original appropriation. The 2013 Operating Budget including all carry over projects, estimations for debt service and debt service fund balances is $68,695,700. Section 4. The above as an expenditure budget represents estimated expenditures and projected ending fund balances. As a revenue budget they include estimated receipts and estimated beginning fund balances. Expenditure and Revenue Budgets are equal or are in balance in all funds. Section 5. The budget includes a transfer from the Water/Sewer Fund to the General Fund pursuant to RCW 35.37.020. Section 6. Internal service fund rates have been computed for 2013 as directed by the City Manager. The rates by fund and department are spread in the various budgets in the preliminary budget document. The internal service fund rates are hereby confirmed and approved by this ordinance. Section 7. The budget for the 2013 fiscal year is adopted by reference. Section 8. Th is ordinance shall take effect and be in force five (5) days after its passage and publication of its summary as provided by law. Adopted by the City Council and signed by its Mayor on November 27, 2012. ATTEST: Bill Ecret, Mayor W. Robert Taylor, Finance Director APPROVED AS TO FORM: Katherine L. Ken ison, City Attorney November 26 ,2012 Honorable Mayor and Moses Lake City Council Dear Council Members C , T T 0 F HOSES LAKE The City Council previously passed Ordinance No. 2662 fixing the amount to be received for municipal purposes from taxations on assessed valuations on property within the City of Moses Lake, Washington for 2013. Upon presentation of the ordinance to the Assessors office, I was told that in order to preserve the 2011 tax levy amount of $10,222,955, the ordinance needed to be revised . The reduction in the 2012 tax levy amount of $8,681 ,816 came about because of an action of the state in reducing the levy because of the REC appeal of its tax assessment. I have prepared a revised ordinance amending Ordinance No. 2662 reflecting the preservation of the City's 2011 tax le vy amount but still indicating that the 2011 levy amount has been increased by the statutorily allowed 1 %. The proposed ordinance is presented to you for your consideration . This ordinance must be in the hands of the County by November 30 as is required by law. Respectfully submitted JKGjt 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. Box 1579 . Moses Lake, WA 98837-0224 . www.cityofmJ.com ORDINANCE NO. 2666 AN ORDINANCE AMENDING ORDINANCE NO. 2662 FIXING THE AMOUNT TO BE RECEIVED FOR MUNICIPAL PURPOSES FROM TAXATIONS ON ASSESSED VALUATIONS ON PROPERTY W ITHIN THE CITY OF MOSES LAKE, WASHINGTON FOR 2013 THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Preamble: A. RCW 84.52 requires the governing body of the City of Moses Lake to fix the estimated amount to be raised by taxation on assessed valuation on property within the City of Moses Lake B. The City of Moses Lake's highest actual levy amount occurred in 2011 and was S10,222,955. C. The City is allowed by law to increase its tax levy by 1 % over the highest levy amount it has ever received since 1985, which for the City of Moses Lake was $10,222,955 in 2011 . D. The City of Moses Lake's actual levy amount from the previous year, 2012. was $8,681 ,816, which was reduced from the anticipated levy in 2012, because of a pending appeal of a taxpayers assessment before the State of Washingv ton's Board of Tax Appeals. The reduction in levy amount will probably remain in place until a resolution of the appeal. E. The City of Moses Lake has a population of more than 10,000. F. Public hearings were held, with notice duly provided, to consider the city's current expense budget for the 2013 calendar year pursuant to RCW 84.55.120. G. The City Council of the City of Moses Lake, after hearing and duly considering all relevant evidence and testimony presented, determine that the City of Moses Lake requires an increase in property tax revenue from the previous year, in addition to that resulting from the addition of new construction and improvements to property, any increase in the value of state assessed utility property, and any increase due to the annexation of new territory and refunds made, in order to discharge the expected expenses and obligations of the city. Section 2: Tax Levy: The following taxes for general municipal purposes for the City of Moses Lake for the year 2013 be and the same are hereby levied upon all taxable property within the City of Moses Lake. An increase in the regular property tax levy of $1 ,643,369, in addition to the increase resulting from the addition of new construction and improvements to property as authorized by RCW 84.55.010, and any increase in the value of state assessed utility property, is hereby authorized for the 2013 levy in the amount of $15,000,000 which is a percentage increase of 18.9288503% from the previous year, and any increase due to the annexation of new territory, new construction, and refunds made. Included in the levy increase is a 1% percentage increase in the highest levy amount the City has received since 1985 which was $10,222,955 in 2011 , in the dollar amount of $1 02,230. Section 3. Effective Date: The City Council of the City of Moses Lake declares this a public emergency ordinance necessary for the protection of public health, safety, property or peace and has passed this ordinance on a single reading with a majority plus 1 of the whole membership of the council voting in favor of passage with the ordinance taking effect immediately upon passage. Adopted by the City Council and signed by its Mayor on November 27,2012. ATIEST: Bill J. Ecret, Mayor W . Robert Taylor, Finance Director APPROVED AS TO FORM: Katherine L Kenison, City Attorney Joe Gavinski From: Sent: To: Cc : Subject: Attachments: Joseph, Locke, Diann (DOR) [DiannL@DOR.wA.GOVj Wednesday, November 21, 2012 1 :29 PM jgavinski@cityofml.com Gail Smith Property Tax Resolution City of Moses Lake Example.xl sx I am sorry I missed your call earlier today. I will be in a meeting between 2:00pm and 3:00, then I will be leaving the office at 3:00 for the rest of the day. I looked up some levy information for the City of Moses Lake and hopefully can get sta rted with some guidance in this message in case we do not end up talking this afternoon. RCW 84.55.120 requires taxing districts to adopt a resolution/ordinance specifying an increase in the terms of dollars and percentage of change compared to the districts prior year's levy. According to the information available to me, the city's prior year's levy amount was $8,681,816. Your district could have levied as much as $10,222,955 last year. This is referred to as your highest lawful levy since 1985. If your district adopts a resolution/ordinance compliant with RCW 84.55.120, the highest lawful levy will automatically be increased by 1%. That one percent increase will result in a levy capacity, before additional funds for new construction, etc., of $10,325,184. I have attached an incomplete levy limit worksheet to help illustrate the two limits. As yo u will see the 1% increase over the highest lawful levy on page 1 bala nces with the "actual levy limit", based on an adopted resolution/ordinance with an increase of 18.9288503% compared to the districts prior year's levy amount. I estimated an increase of $200,000 for new construction. Gail will be able to provide you with a more accurate number here than I can. If your council members want to levy this amount, they must adopt a resolution/ordinance authorizing an increase of $1,643,368 which is a percentage increase of 18.9288503 as compared to your prior year's levy of $8,681,816. If your council members adopt a resolution/ordinance with a lesser dollar and percentage change they will not be levying at their highest lawful levy amount, which is okay. I hope this helps! Diann Locke Levies and Appeals Specialist Washington State Department of Revenue Property Tax Division 360-534-1427 -phone 360-534-1380 -fax 1 HIGHEST LAWFUL LEVY CALCULATION TAXING DISTRICT City of Moses Lake Example 2012 Levy for 2013 Taxes A. Highest regular tax which could have been lawfully levied beginning with the 1985 levy (refund levy not included). Year 2012 $10,222,955.00 x 101 .000% = $10,325,184 .55 Highest Lawful Levy Maximum Increase 101% B. Current year's assessed value of new construction, improvements and wind turbines in original districts before annexation occurred times last year's levy rate (if an error occurred or an error correction was made in the previous year, use the rate that would have been levied had no error occurred). x + $1,000 = $200,000.00 A.v. Last Year's Levy Rate C. Current year's state assessed property value less last year's state assessed property value. The remainder is to be multiplied by last year's regular levy rate (or the rate that should have been levied). -= $ - Current Year's. AV. Previous Year's. A.V. Remainder x ~ $1 ,000 = Remainder from Line C Last Year's Levy Rate D. Regular property tax limit: ..... ........... ............... ........ .... .. ..... A+B+C = $10,525,184.55 Parts E through G are used in calculating the additional levy limit due to annexation. E. To find the rate to be used in F, take the levy limit as shown in Line 0 above and divide it by the current assessed value of the district, excluding the annexed area. $10,525,184.55 x $1,000 = #DIV/O! Total In Line D Current Assessed Value F. Annexed area's current assessed value including new construction and improvements, times the rate in Line E. x #DIV/O! + $1 ,000 = #DIV/O! Annexed Area's A.v. Rate in Line E G. Regular property tax limit including annexation ....................................... D+F = #DIVlO! H. Statutory maximum rate times the assessed value of the district. x + $1 ,000 = A.V. of District Statutory Rate Limit Statutory Amount I. Highest Lawful Levy (Lesser of G and H) . . . . . . . . . , . ........... ............•.... = #D IV/O! J. Tax Base For Regular Levy 1. Total district taxable value (including state-assessed property, and excluding boats, timber assessed value, and the senior citizen exemption for the regular levy) K. Tax Base for Excess and Voted Bond Levies 2. Less assessed value of the senior citizen exemption of less than $35,000 income difference between the lower of the frozen or market value and the exempt value) 3. Plus Timber Assessed Value (TAV) ........... ..... . ....... ....................... 4. Tax base for excess and voted bond levies .............. . ................. . ..... , (1 -2+3) Excess Levy Rate Computation Excess levy amount divided by the assessed value in Line K4 above. + x $1 ,000 = #DIV/O! Levy Amount AV. from Une K4 above Bond Levy Rate Computation Bond levy amount divided by the assessed value in Line K4 above. ~ x $1,000 = #DIV/O! Levy Amount A.V. from Line K4 above Page 1 REV 64 0007e (x) (12/23/09) ACTUAL LEVY CALCULATION TAXING DISTRICT City of Moses Lake Example 2012 Levy For 2013 Taxes Population: r Less than 10,000 10,000 or more Was a resolution/ordinance adopted authorizing an increase over the previous year's levy? r Yes r No If so, what was the percentage increase? Was a second resolution/ordinance adopted authorizing an increase over the IPO? r Yes r No r N/A If so, what was the percentage increase? A. Previous year's actual levy times the increase as stated in ordinance or resolution (RCW 84.55.120). If the taxi ng district did not provide an ordinance or resolution use 100% in the field increasing the previous year's actual levy. Year 2012 $8,681 ,816.00 x 118.928850300000% = $10,325,183.95 Previous Year's ACluallevy 100% Plus the Percentage Increase B. Amount for new construction, improvements, and newly constructed wind turbines (Line B, page 1) ......................... . -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $200,000.00 C. Amount for increase in value of state-assessed property (Line C, page 1) = O. Regular property tax limit: . ....... . . . . . . . . . . . . . . . ................ " ... . , . . . . . . A+B+C = $10,525,183.95 Parts E through G are used in calculating the additional levy amounts due to annexation. E. To find the rate to be used in F, divide the levy amount as shown in 0 (page 1) by the current assessed value of the district, excluding the annexed area. $10,525,184.55 ~ x $1 ,000 = #OIV/O! Total in Line D on page 1 Assessed Value F. Annexed area's current assessed value including new construction and improvements, multiplied by the rate in E. x #OIV/O! .;-$1,000 = #OIV/O! Annexed Area's A.v. Rate in Line E G. Total levy amount authorized, including the annexation ..... ................. ... ..... O+F = #OIV/O! H. Total levy amount authorized by resolution (G) plus amount refunded or to be refunded (RCW 84.55.070). #OIV/O! + = #OIV/O! Total from Line G Amount to be Refunded Amount allowable per Resolution/Ordinance I. Total amount certified by county legislative authority or taxing district as applicable. (RCW 84.52.020 and RCW 84.52.070) .......................................... .......... = J. Levy limit from line G on page 1, plus amount refunded or to be refunded (RCW 84.55.070). #OIV/O! + = #OIV/O! Line G, Page 1 Amount to be Refunded Total K. Amount of taxes recovered due to a settlement of highly valued disputed property (RCW 84.52.018). #OIVlO! -= #OIV/O! lesser of H, I, or J Amount Held in Abeyance Total L. Statutory limit from line H on page 1 (dollar amount, not the rate) ...... ..... ........ = M. Lesser of K and L . ...... ... ............................. ............ ........... .. ........ #OIV/O! N. Levy Corrections Year of Error: 1. Minus amount over levied (if applicable) ....................................... ....... .. 2. Plus amount under levied (if applicable) . ....... ..... ....................... .. ....... O. Total: M +/-N ................... ....... .......... ...... . . . . . . . . . . . . . . . . . . . , . , . . . . . . . . #OIVlO! Regular Levy Rate Computation: Lesser of Land 0 divided by the assessed value in line J1 on page 1. #OIV/O! ~ x $1 ,000 = #OIV/O! Lesser of L and 0 Amount on line J1 on page 1 REV 64 0007e (x) (12123/09) Page 2 November 2,2012 Honorable Mayor and Moses Lake City Council Dear Council Membeffi (ITT O F HOSES LAKE An ordinance authorizing the issuance and sale of limited tax general obligation bonds in the amount of $1 ,705,000 will be presented to the City Council on November 27, 2012. A ccording to City ordinance, this ordinance is considered for passage on a single reading. The monies ra ised by the issuance of the bonds will be used to refund outstanding limited tax general obligation bonds issued in 2003. The proposed draft of the ordinance is presented for the City Council's review. Respectfully J :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. • 1'0. Box 1579 . Moses Lake. WA 98837-0224 . www.cilyofml.com CITY OF MOSES LAKE, WASHINGTON LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2012 ORDINANCE NO. 2664 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 $[1,705,000) to provide funds to refund certain outstanding limited tax general obligation bonds of the City; authorizing the appointment of an escrow agent and the execution of an escrow agreement; providing the temlS of the bonds; providing for the annual levy of taxes to pay the Plincipal of and interest on the bonds; authOJizing a preliminary official statement; and authorizing the sale of such bonds. APPROVED ON NOVEMBER l3, 2012 PREPARED BY: K&L GATES LLP Seattle, Washington Section I. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Section 9. Section 10. Section II. Section 12. Section 13. Section 14. Section 15 . Section 16. EXHIBlT A EXHIBIT B CITY OF MOSES LAKE, WASHINGTON ORDINANCE NO. TABLE OF CONTENTS* Definitions ................................................................................................................ 2 Authorization of Bonds and Bond Details ............................................................... 6 Registration, Exchange and Payments ..................................................................... 7 Redemption and Purchase ...................................................................................... 12 Form of Bonds ...... """" ......................................................................................... 16 Execution of Bonds ................................................................................................ 18 Tax Covenants; Special Designation ..................................................................... 19 Bond Fund and Provision for Tax Levy Payments ................................................ 21 Defeasance ............................................................................................................. 22 Sale of Bonds; Official Statement. ......................................................................... 22 Refunding Plan and Procedures ............................................................................. 23 Undertaking to Provide Ongoing Disclosure ......................................................... 25 Lost, Stolen or Destroyed Bonds ........................................................................... 29 General Authorization ............................................................................................ 30 Severability ............................................................................................................ 30 Effective Date ........................................................................................................ 31 Fonn of Escrow Agreement Fonn of Costs ofIssuance 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. -1- ORDINANCE NO. 2664 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 $[1,705,000] to provide funds to refund certain outstanding limited tax general obligation bonds of the City; authorizing the appointment of an escrow agent and the execution of an escrow agreement; providing the terms of the bonds; providing for the annual levy of taxes to pay the principal of and interest on the bonds; authorizing a preliminary official statement; and authorizing the sale of such bonds. WHEREAS, the City of Moses Lake, Washington (the "City") issued its Limited Tax General Obligation Refunding Bonds, 2003 pursuant to Ordinance No. 2142 adopted on December 9, 2003 (the "2003 Bond Ordinance") under date of December 30, 2003 , in the original aggregate principal amount of $2,725 ,000 (the "2003 Bonds"), which remain outstanding as follows: MatUlity Year (September 1) Plincipal Amount Interest Rate 2013 $ 130,000 3.75% 2014 130,000 3.90 2015 140,000 4.00 2016 145,000 4.00 2017 150,000 4.10 2018 155,000 4.20 2023 890,000 4.60 ; and WHEREAS, the 2003 Bonds maturing on and after September 1, 2014 (the "Refunded Bonds") are callable for redemption on any interest payment date on or after September 1, 2013, 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 the Refunded Bonds through the issuance of limited tax general obligation refunding bonds of the City in the aggregate principal amount of$[1,705,000) (the "Bonds"); and WHEREAS, in order to provide the funds required for such purpose, the City now desires to authorize the issuance and sale of the Bonds; and WHEREAS, the City has received the offer from Martin Nelson & Company, Inc., Seattle, Washington to underwrite the Bonds at terms acceptable to this City Council; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON DO ORDAIN as follows: Section 1. Definitions. As used in this ordinance, the following words shall have the following meanings: Acquired Obligations means 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 intern1ediaries). BOl1d FUlld means the "Limited Tax General Obligation Bond Redemption Fund, 2012" established pursuant to Section 8 hereof. BOl1d Register means the registration books showing the name, address and tax identification number of each Registered Owner of the Bonds, maintained pursuant to Section 1 49(a) of the Code. Bonds means the $[1,705,000) principal amount of the City of Moses Lake, Washington Limited Tax General Obligation Refunding Bonds, 2012 issued pursuant to this ordinance. -2-P:\20287 _CMW\20287 _9V9 10/15112 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. Call Date means September 1, 2013. City means the City of Moses Lake, Washington, a municipal corporation of the State of Washington. Code means the Internal Revenue Code of 1986, as amended, and shall include all applicable regulations and rulings relating thereto. Commission means the Securities and Exchange Commission. Cost of Issuance Agreement means the agreement of that name, to be entered into by 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 fonn attached hereto as Exhibit B. 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 [The Bank of New York Mellon, New York, New York]. Escrow Agreement means the Escrow Deposit Agreement between the Escrow Agent and the City substantially in the forn1 of Exhibit A hereto. -3-P:\20287_CMW\20287_9V9 10/1511 2 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. Govemment Obligations means 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, means the principal amount of the Bonds, plus accrued interest and original issue premium, if any, and less original issue discount. Private Person means any natural person engaged in a trade or business or any trust, estate, pminership, association, company or corporation. Private Person Use means the use of property in a trade or business by a Plivate 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 propeliy (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 SaIne 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 -4- 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 means the 2003 Bonds maturing on or after September 1, 2014. 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. 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. Rule means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. 2003 Bonds means the Limited Tax General Obligation Refunding Bonds, 2003 of the City issued under date of December 30, 2003, of which as more particularly desclibed in the recitals of this ordinance. 2003 Bond Ordinance means Ordinance No. 2142 adopted by the City Council on December 9, 2003. Underwriter means Martin Nelson & Company, Inc., Seattle, Washington. Rules of 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; -5 - (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 of reference and shall not constitute a part of this ordinance, nor shaH they affect its meaning, construction or effect; and (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 thereby effecting a savings to the City, the City shall issue its limited tax general obligation refunding in the aggregate principal amount of $[1,705,000). The bonds shall be general obligations of the City, shall be designated "City of Moses Lake, Washington Limited Tax General Obligation Refunding Bonds, 2012" (the "Bonds"); shall be dated as of the date of their 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 Registrar deems necessary for purposes of identification, and shall bear interest from their date payable on the first days of each March and September, commencing -6- on March 1,2013. The Bonds shall mature in the following years and in the following amounts, bearing interest at the following rates: Maturity Dates (September I) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Principal Amounts $ Section 3. Registration, Exchange and Payments. Interest Rates % (a) 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 the Registrar. So long as any Bonds remain outstanding, the Registrar shall make all necessary provisions to pem1it the exchange or registration or transfer of Bonds at its principal corporate trust office. The Registrar may be removed at any time at the option of the Finance Director upon prior notice to the Registrar and a successor Registrar appointed by the Finance Director. No resignation or removal of the Registrar shall be effective until a successor shall have been appointed and until the successor Registrar shall have accepted the duties of the Registrar hereunder. The 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 Registrar's powers and duties under this ordinance. The Registrar shall be responsible for its representations contained in the Certificate of Authentication of the Bonds. -7- (b) Registered Ownership. The City and the 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 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 DTC to accept the Bonds as eligible for deposit at DTC, the City has executed and delivered to DTC a Letter of Representations. Neither the City nor the Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees (or any successor depository) with respect to the Bonds in respect of the accuracy of any records maintained by DTC (or any successor depositOly) or any DTC paJiicipant, the payment by DTC (or any successor depository) or any DTC paliicipant of any amount in respect of the principal of or interest on Bonds, any notice which is pe1111itted 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 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 f01111 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. -8-P:\20287_CMW\20281_9V9 10/15112 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. (I) 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 depositOly appointed by the Finance Director pursuant to subsection (2) below or such substitute depository's successor; or (C) to any person as provided in subsection (4) 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 Finance Director to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the Finance Director 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 Registrar shall, upon receipt of all outstanding Bonds, together with a written request of the Finance Director, issue a single new Bond for each maturity then outstanding, registered in -9-P:\20287_CMW\20287 _9V9 10/15112 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 Finance Director. (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 Finance Director determines that it is in the best interest of the beneficial owners of the Bonds that such owners be able to obtain the Bonds in the form of 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 Finance Director shall deliver a written request to the Registrar, together with a supply of definitive Bonds, to issue Bonds as herein provided in any authorized denomination. Upon receipt by the Registrar of all then outstanding Bonds together with a written request of the Finance Director to the Registrar, new Bonds shall be issued in the appropliate 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 Registrar with the assignment fonn appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Registrar. Upon such surrender, the 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 sanle 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 -10- exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the 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 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) Registrar 's Ownership of Bonds. The Registrar may become the Registered Owner of any Bond with the same rights it would have if it were not the Registrar, and to the extent pemlitted 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. (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 plincipal 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 Registrar at least 15 days prior to the applicable -11-P:\20287 _CMW\20287 _9V9 10115112 payment date), such payment shall be made by the Registrar by wire transfer to the account within !be continental United States designated by the Registered Owner. Principal of !be Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Registrar. Section 4. Redemption and Purchase. (a) Optional Redemption. The Bonds maturing on and after September 1, 2022 are subject to redemption at the option of the City in whole or in part on any date on and after March I, 2022 at a price or par plus accrued interest, if any, to the date of redemption. [(b) Mandatory Redemption. Unless previously redeemed pursuant to the foregoing optional redemption provisions, the Bonds maturing on September I, __ are subject to mandatory redemption at a price of par plus accrued interest to the date of redemption on September I of the following years in the following principal amounts: Redemption Years * Final Maturity.) Redemption Amounts (c) Purchase of Bonds for Retirement. The City reserves the right to purchase any of the Bonds offered to the City at any price deemed reasonable to the Finance Director. (d) Selection of Bonds for Redemption. For as long as the Bonds are held in book-entry only form, the selection of particular Bonds within a maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. If!be Bonds are no longer held in uncertificated form, the selection of such Bonds to be redeemed and the surrender and reissuance thereof, as applicable, shall be made as provided in the following provisions of -12- this subsection (d). If the City redeems at anyone 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 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 the 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. In the event that only a portion of the principal sum of a 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 sum thereof, at the option of the Registered Owner, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. (e) Notice a/Redemption. (I) 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 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 shall be conditioned by the Registrar on the receipt of sufficient funds for redemption) 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 -13- the address shown on the Register or at such other address as is furnished in writing by such Registered Owner to the Registrar. All official notices of redemption 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 maturity (and, in the case of partial redemption, the respective plincipal amounts) of the Bonds to be redeemed, (D) that 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 sUiTendered for payment of the redemption price, which place of payment shall be the principal office of the Regish'ar. Unless the redemption was conditional and the conditions to such redemption have not been met, on or plior to any redemption date, the City shall deposit with the Registrar an amount of money sufficient to pay the redemption price of all the Bonds or pOJ1ions of Bonds which are to be redeemed on that date, (2) Effect of Notice; Bonds Due, 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 -14-P:\20287 _CMW\20287 _9V9 10/15/12 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 fuliher notice of redemption may be sent at least 25 days before the redemption date to each paJiy entitled to receive notice pursuant to Section 12, and to such persons (including securities repositories who customarily at the time receive notices of redemption in accordance with rules promulgated by the Commission) and with such additional infonnation as the City shall deem appropliate, but such mailings shall not be a condition precedent to the redemption of such Bonds. (4) 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. -15-P:\20287_CMW\20287_9V9 10115112 Section 5. Fonn of Bonds. The Bonds shall be in substantially the following fonn: UNITED STATES OF AMERICA NO. $_-- STATE OF WASHINGTON CITY OF MOSES LAKE, WASHINGTON LIMITED TAX GENERAL OBLIGATION REFUNDING BOND, 2012 INTEREST RATE: % REGISTERED OWNER: PRINCIPAL AMOUNT: MATURITY DATE: CUSIPNO.: CEDE&CO. The City of Moses Lake, 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 Amount indicated above and to pay interest thereon from December _, 2012, 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 March 1, 2013 , and semiannually thereafter on the first days of each succeeding September and March. Both principal of and interest on this bond are payable in lawful money of the United States of Amelica. The fiscal agency of the State of Washington has been appointed by the City as the authenticating agent, paying agent and registrar for the bonds of this issue (the "Registrar"). For so long as the bonds of this issue are held in fully immobilized fOlm, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of The Depository Trust Company ("DTC") referred to in the Blanket Issuer Letter of Representations (the "Letter of Representations") from the City to DTC. The bonds of this issue are issued under and in accordance with the provisions of the Constitution and applicable statutes of the State of Washington and Ordinance No. __ duly passed by the City Council on November 13, 2012 (the "Bond Ordinance"). Capitalized telms used in this bond have the meanings given such tenns in the Bond Ordinance. 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 or on behalf of the Registrar or its duly designated agent. This bond is one of an authorized issue of bonds of like date, tenor, rate of interest and date of maturity, except as to number and amount in the aggregate principal amount of $[1,705,000] and is issued pursuant to the Bond Ordinance for providing funds to refund certain outstanding limited tax general obligation bonds of the City, and to pay costs of issuance. -16-P:120287 _CMWI20287_9V9 10'15112 The bonds of this issue are subject to redemption prior to their stated maturities as stated in the Bond Ordinance. 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 cities 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. The City has designated the bonds of this issue as "qualified tax-exempt obligations" for investment by financial institutions under Section 265(b) of the Code. The pledge of tax levies for payment of principal of and interest on the bonds may be discharged prior to maturity of the bonds by making provision for the payment thereof on the terms and conditions set forth in the Bond Ordinance. 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 pelformed 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 has caused this bond to be signed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its Finance Director, and the seal of the City to be impressed, imprinted or otherwise reproduced hereon, as of this 3rd day of December, 2012. CITY OF MOSES LAKE, WASHINGTON (SEAL) /s/ facsimile or manual signature Mayor Attest: /s/ facsimile or manual signature Finance Director -17-P:\20287_CMW\20287_9V9 10f15112 The Registrar's Certificate of Authentication on the Bonds shall be in substantially the following fonn: CERTIFICATE OF AUTHENTICATION Date of Authentication: ______ _ This bond is one of the bonds described in the within-mentioned Bond Ordinance and is one of the Limited Tax General Obligation Refunding Bonds, 2012 of the City of Moses Lake, Washington, dated December 3,2012. Section 6. WASHINGTON STATE FISCAL AGENCY, as Registrar By ______________________ __ 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 fonn hereinbefore recited, manually executed by the Regi strar, 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 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 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. -18- 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. Tax Covenants; Special Designation. (a) Arbitrage Covenant. The City hereby covenants that it will not make any use of the proceeds of sale of the Bonds or any other funds of the City which may be deemed to be proceeds of such Bonds pursuant to Section 148 of the Code and applicable regulations thereunder which will cause the Bonds to be "arbitrage bonds" within the meaning of said section and regulations. The City will comply with the requirements of Section 148 of the Code (or any successor provision thereof applicable to the Bonds) and the applicable regulations thereunder throughout the term of the Bonds. (b) Private Person Use Limitation/or Bonds. The City covenants that for as long as the Bonds are outstanding, it will not permit: (I) 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 -19-P:\20287 _CMW\20287_9V9 10/15112 (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: (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 projects 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 project refinanced with Bond proceeds, and (ii) any Private Person Use will not exceed the amount of Net Proceeds of the Bonds used for the state or local governmental use portion of the project to which the Private Person Use of such portion of such project relates. The City further covenants that it will comply with any limitations on the use of the project 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) 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 2012 (excluding obligations permitted by the Code to be excluded for purposes of the City's qualification as a qualified small issuer). -20- Section 8. Bond Fund and Provision for Tax Levy Payments. There is hereby authorized to be created in the office of the Finance Director a fund to be drawn upon for the purpose of paying the principal of and interest on the Bonds to be known as the "Limited Tax General Obligation Bond, 2012 Redemption Fund" (the "Bond Fund"). 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 pati of the tax levy permitted to cities without a vote of the people, and that a sufficient portion of each annual levy 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. -21-P:\20287_CMW\20287_9V9 10/15/12 Section 9. 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 fllliher 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 pmiy entitled to receive notice in accordance with Section 12 of this ordinance. Section 10. Sale of Bonds; Official Statement. The City hereby accepts the offer of Ma11in Nelson & Company, Inc., Seattle, Washington (the "Underwriter") to purchase the Bonds on the tenTIS and conditions set forth in its purchase agreement dated as of this date and presented to the Council on this date, and in this ordinance (the "Purchase Contract"). The Mayor and/or City Manager are hereby authorized to execute the Purchase Contract on behalf of the City. The proper City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bonds to the Underwriter and for the proper use and application of the proceeds of such sale. In furtherance of the foregoing, the proper City officials are authorized to approve and enter into agreements for the payment of costs -22- of issuance, including Underwriter's discount, the fees and expenses specified in the Purchase Contract, including fees and expenses of Underwriter and other retained services, including Bond Counsel, rating agencies, 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. The City hereby approves the Preliminary Official Statement presented herewith to the Council and authorizes the Underwriter's distribution of the Preliminary Official Statement in connection with the offering of the Bonds. Pursuant to Securities and Exchange Commission Rule 15c2-12 (the "Rule"), the City hereby deems the Preliminary Official Statement as final as of its date except for the omission of infonnation dependent upon the pricing of the issue and the completion of the Purchase Contract, such as offering prices, interest rates, selling compensation, aggregate principal amount, Plincipal amount per maturity, delivery dates, and other terms of the Bonds dependent on the foregoing matters. The City Manager and/or Finance Director are hereby authorized to review and approve on behalf of the City the final official statement relative to the Bonds with such additions and changes as may be deemed necessary or advisable to either of them. Section II. Refunding Plan and Procedures. (a) Refunding Plan. The proceeds of sale of the Bonds, together with other funds, if any, provided by the City shall be used immediately upon receipt to defease the Refunded Bonds as authorized by the 2003 Bond Ordinance and to pay costs of issuance. 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 -23- 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: (i) the principal of and interest on the Refunded Bonds as such becomes due and payable on the Call Date; and (ii) the redemption pnce (100% of the principal amount) of the Refunded Bonds payable on the Call Date. (b) Escrow Agent/Escrow Agreement. The City hereby appoints [The Bank of New York Mellon, New York, New York] to perfonn 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 Manager and/or the Finance Director is authorized and directed to execute and deliver to the Escrow Agent, an Escrow Deposit Agreement, substantially in the fOlm attached hereto as Exhibit A and a Costs of Issuance Agreement, substantially in the fonn attached hereto as Exhibit B. (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 2003 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. -24-P:\20287 _CMW\20287 _9V9 10115/12 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 2003 Bond Ordinance. The Finance Director 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 of 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 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 infom1ation and operating data for the prior fiscal year (commencing in 2013 for the fiscal year ended December 31, 2012): 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 -25-P:\20287_CMW\20287 _9V9 10115/12 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 percentage of taxes 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 infonnation and operating data, the City may cross-reference to other documents available to the public on the MSRB's internet website or filed with the Commission and, if such document is a final official statement within the meaning of the Rule, available from the MSRB or Commission. If not provided as part of the annual financial inforn1ation 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; -26-P:\20287 _ CMW\20287 _9V9 10/15112 • 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 statu s 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; • 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 defmitive 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. -27- Solely for purposes of infonnation, 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 infonnation described in subsection (b) above on or prior to the date set forth in subsection (b) above. (e) Emma; Format for Filings with th e MSRB. Until otherwise designated by the MSRB or the Commission, any infonnation 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"), cunently located at www.emma.msrb.org (which is not incorporated into this Official Statement by reference). All notices, financial infonnation and operating data required by this undertaking to be provided to the MSRB must be in an electronic fonnat as presclibed by the MSRB. All documents provided to the MSRB pursuant to this undeliaking must be accompanied by identifying infOimation as prescribed by the MSRB. (f) Termination/Modification. The City'S obligations to provide annual financial infom13tion and notices of material events shall tem1inate upon the defeasance, plior redemption or payment in full of all of the Bonds. This section, or any provision hereof, shall be null and void if the City (J) 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 ilie 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. -28-P:\20287_CMW\20287_9V9 10/15112 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 fonner accounting principles. (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. (h) No Default. The City is not and has not been in default in the performance of its obligations of any prior undertaking for ongoing disclosure with respect to its obligations. Section 13. Lost, Stolen or Destroyed Bonds. In case any Bond or Bonds shall be lost, stolen or destroyed, the Registrar may execute and deliver a new Bond or Bonds of like date, number and tenor to the Registered Owner thereof upon the Registered Owner's paying the expenses and charges of the City in connection therewith and upon hislher filing with the City -29- evidence satisfactory to the City that such Bond was actually lost, stolen or destroyed and of hislher ownership thereof, and upon furnishing the City with indemnity satisfactory to the City. Section 14. 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 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 confinned. Section 15. Severability. If anyone 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 jUl1sdiction 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 of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds. -30-P:120287_CMW\20287_9V9 10/15112 Section 16. Effective Date. The City Council declares that this ordinance shall take effect immediately as provided by law upon one reading if two-thirds (2/3) of the entire City Council present vote in favor of passage. Adopted by the City Council and signed by its Mayor on November 13 ,2012. Mayor ATTEST: Finance Director APPROVED AS TO FORM: City Attorney -31- EXHIBIT A ESCROW DEPOSIT AGREEMENT CITY OF MOSES LAKE, WASHINGTON LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2012 THIS ESCROW AGREEMENT, dated as of December 3, 2012 (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 [The Bank of New York Mellon, New York, New York) 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 November 13,2012 (the "Bond Ordinance"), the City has detennined to issue its Limited Tax General Obligation Refunding Bonds, 2012 (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 Thomton LLP has prepared a velification report which is dated December 3, 2012 (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-I P:\20281_CMW\20287 _9V9 10/15112 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. Governmellt Obligatiolls 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 Amelica or (d) REF CORP 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 tenllS "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 ternlS 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 _9V9 10/15112 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 plincipal 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 transfen'ed 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 fi-om 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 Section 3.3. Sufficiency of Escrow Fund. The City represents that, based upon the infonnation 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 fOJih herein. The Escrowed SecU\;ties and other assets of the Escrow Fund shall always be maintained by the Escrow Agent as Ilust 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 temlS 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 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 counselor 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 Escrow Agent 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 A-5 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. 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 undeliake the obligations and responsibilities imposed upon it herein, and that it will can)' 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 £i'om 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. A-6 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 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 detennine or inquire into the happening or occurrence of any event or contingency or the performance or failure of perfonnance 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 thi s Agreement. If, however, the Escrow Agent is called upon by the telms of this Agreement to determine the occurrence of any event or contingency, the Escrow Agent shall be obligated, in making such detennination, only to exercise reasonable care and diligence, and in event of en·or in making such detennination the Escrow Agent shall be liable only for its own willful misconduct or its negligence. In detennining 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. A-7 P:\20287_CMW\20287_9V9 10/15/12 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 jacto, 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 property and affairs shall be taken under the conh'ol 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 an 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 comi may thereupon, after such notice, if any, as it may deem proper, presclibe 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 telms of this Agreement, all the lights, 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 8.4 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. A-8 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. 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 anyone 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 ofthe Essence. Time shall be of the essence in the perfOlmance of obligations from time to time imposed upon the Escrow Agent by this Agreement. A-9 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 confinnation 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 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 ITHE BANK OF NEW YORK MELLON) as AuthOJized 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 2003 Bonds Notice of Defeasance for the 2003 Bonds A-IO City: Escrow Agent: EXHIBIT A Addresses of the City and Escrow Agent City of Moses Lake 401 S. Balsam Street (PO Box 1579) Moses Lake, WA 98837 Attention: Finance Director The Bank of New York Mellon Attention: ______ _ A-A-l EXHIBITB Description of the Refunded Bonds City of Moses Lake, Washington Limited Tax General Obligation Refunding Bonds, 2003 (Dated December 30,2003) Maturity Year (September 1) Principal Amount Interest Rate 2013 $ 130,000 3.75% 2014 130,000 3.90 2015 140,000 4.00 2016 145,000 4.00 2017 150,000 4.10 2018 155,000 4.20 2023 890,000 4.60 A-B -l EXHIBITC Schedule of Debt Service on the Refunded Bonds Principal! Date Interest Redemption Price Total $ $ $ Total $ $ $ A-C-l I. Cash $ __ _ II. Other Obligations Description Maturity Date Total EXHIBITD Escrow Deposit $ $ Principal Amount A-D-J Yield Total Cost % $ $ Date EXHIBIT E Escrow Fund Cash Flow Escrow Requirement $_-- $ $ Net Escrow Receipts $_-- $ A-E-J $ Excess Receipts $._-- $ $ Cash Balance P:\20287_CMW\20287_9V9 10(15/12 APPENDIX A NOTICE OF REDEMPTION' City of Moses Lake, Washington Limited Tax General Obligation Refunding Bonds, 2003 NOTICE IS HEREBY GIVEN that the City of Moses Lake, Washington has called for redemption on September I, 2013, its outstanding Limited Tax General Obligation Refunding Bonds, 2003 (the "Bonds"). The Bonds will be redeemed at a price of one hundred percent (100%) of their principal amount, plus interest accrued to September I, 2013. The redemption price of the Bonds is payable on presentation and surrender of the Bonds at the office of: Wells Fargo Bank, National Association Corporate Trust Department The Bank of New York Mellon Worldwide Securities Processing 200 I Bryan Street, 9th Floor Dall as, TX 75201 -or-14th Floor 999 Third Avenue Seattle, W A 98 104 Interest on all Bonds or portions thereof which are redeemed shall cease to accrue on September I, 2013. The following Bonds are being redeemed: Maturity Year CUSIP (September 1) Principal Amount Interest Rate Nos. 2013 $ 130,000 3.75% 61955 1HD9 2014 130,000 3.90 619551HE7 2015 140,000 4.00 619551HF4 2016 145,000 4.00 619551HG2 2017 150,000 4.10 61955 1HHO 2018 155,000 4.20 619551HJ6 2023 890,000 4.60 619551HK3 By Order of the City of Moses Lake, Washington * This notice shall be given not more than 60 nor less than 30 days prior to September I, 2013 by first class mail to each registered owner of the Refunded Bonds. In addition notice shall be mailed at least 35 days prior to September 1,2013 to The Depository Trust Company of New York, New York; Martin Nelson & Company, Inc., Ambac Assurance Corporation; Standard & Poor's Rating Agency and to the Municipal Securities Rulemaking Board. Page I-Appendix A The Bank of New York Mellon, as Paying Agent Dated: ____________ _ 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 _9V9 10/15112 APPENDIXB Notice of Defeasance' City of Moses Lake, Washington Limited Tax General Obligation Refunding Bonds, 2003 NOTICE IS HEREBY GNEN to the owners of that portion of the above-captioned bonds with respect to which, pursuant to an Escrow Agreement dated December 3, 2012, by and between City of Moses Lake, Washington (the "City") and [The Bank of New York Mellon, New York, New York] (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 dates 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. 2142 of the City, authOlizing 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 Refunding Bonds, 2003 (Dated December 30, 2003) Maturity Year CUSIP Call Date (September I) Principal Amount Interest Rate Nos. (@ 100%) 2013 $ 130,000 3.75% 619551HD9 0910112013 2014 130,000 3.90 619551HE7 0910112013 2015 140,000 4.00 619551HF4 0910112013 2016 145,000 4.00 619551HG2 09101 /2013 2017 150,000 4.10 619551HHO 0910112013 2018 155,000 4.20 619551HJ6 0910112013 2023 890,000 4.60 619551HK3 09101 /2013 Infonnation 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; The Bank of New York Mellon, as Fiscal Agent; Standard & Poor's Ratings Services, New York, New York, Martin Nelson & Company, Inc., Ambac Assurance Corporation and to the Municipal Securities Rulemaking Board. Appendix B EXHIBITB COSTS OF ISSUANCE AGREEMENT CITY OF MOSES LAKE, WASHINGTON LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2012 THIS COSTS OF ISSUANCE AGREEMENT, dated as of December 3, 2012 (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 [The Bank of New York Mellon, New York, New York], as Escrow Agent (herein, together with any successor in such capacity, called the "Escrow Agent"). WITNESSETH: WHEREAS, pursuant to Ordinance No. __ passed on November 13, 2012 (the "Bond Ordinance"), the City has determined to issue its Limited Tax General Obligation Refunding Bonds, 2012 (the "Bonds"); and WHEREAS, simultaneously herewith, the City is entering into an Escrow Deposit Agreement, dated December 3, 2012 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 ofissuance 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 February 3, 2013, the Escrow Agent shall transfer such unspent amount to the City, and this Agreement shall be deemed fully performed and terminated. B-1 P:\20287_CMW120267_9V9 10/15112 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 provlslOns hereof and by the applicable laws of the state of Washington. B-2 EXECUTED as of the date first written above. Exhibit A Exhibit B CITY OF MOSES LAKE, WASHINGTON Finance Director [THE BANK OF NEW YORK MELLON] Costs oflssuance Schedule Fee Schedule B-3 Authorized Signatory EXHIBIT A Costs of Issuance Bond Counsel Fee (K&L Gates LLP) ............... .. Escrow Agent Fee (The Bank of New York Mellon) .......................................................... , Rating Agency Fee (Standard & Poor's) ........... .. Total: ............................................................. , $ B-A-l P:\20287 _CMW\20287_9V9 10115/12 EXHIBITB FEE SCHEDULE See Attached B-B-l 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 13th day of November, 2012 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 authOIized to execute this celiificate. IN WITNESS WHEREOF, I have hereunto set my hand this 13th day of December, 2012. Finance Director November 21, 2012 TO: City Manager for Council Consideration FROM: Finance Director SUBJECT: Ordinance -Amend 2012 Budget -1 st Reading Attached is an ordinance which amends the 2012 Budget. he ordinance is present for Council consideration. This is the first reading of the ordinance. Respectf y submitted ~bert Tayl ,CGFM Finance Director ORDINANCE NO. AN ORDINANCE AMENDING THE 2012 BUDGET FOR THE CITY OF MOSES LAKE, WASHINGTON THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON DO ORDAIN AS FOLLOWS: SECTION 1. GENERAL FUND 000: Revenue: Additions: 1. $257,400 to Transfers in from Capital Fund 2. $581,000 to Transfers in from Contingency Fund 3. $1,900,000 to Transfers in from Water Billing 4. $964,000 To Beginning Fund Balance Deductions: 1. $1,800,000 from Property Taxes Expenditures: Additions: Miscellaneous Services: 1. $2,774,200 Ending Fund Balance Deductions: Legislative I. $66,200 to Transfer to Building Maintenance -Civic Center Executive I. $54, I 00 to Transfer to Building Maintenance -Civic Center Finance 1. $90,600 to Transfer to Building Maintenance -Civic Center Legal I. $3,800 to Transfer to Building Maintenance -Civic Center Miscellaneous Services: 1. $400,000 to Transfers to Street Repair & Reconstruction Parks 1. $257,100 to Transfer to Building Maintenance -Civic Center Expenditure Budget $23,046,700 Additions $2,774,200 Deductions $871,800 Amended Budget $24,949,100 SECTION 2. CONTINGENCY RESERVE FUND 101: Expenditures: Additions: 1. $581,000 to Transfers to Misc Services Deductions: 1. $581 ,000 to Ending fund Balance Expenditure Budget $581,000 Additions $581,000 Deductions $581,000 SECTION 3. CONTINGENCY RESERVE FUND 102 Revenues: Additions: 1. $128,000 to Beginning Fund Balance Expenditures: Additions: 1. $128,000 to Ending Fund Balance Expenditure Budget $550,100 Additions $128,000 SECTION 4. STREET FUND 116: Revenue: Additions: 1. $186,000 to Beginning Fund Balance Expenditures: Additions: 1. $186,000 to Ending Fund Balance Expenditure Budget $1,974,300 Additions $186,000 Deductions $ -0- Deductions $ -0- Amended Budget $581 ,000 Amended Budget $678,100 Amended Budget $2,160,300 SECTION 5. STREET REPAIR AND RECONSTRUCTION FUND 119: Revenue: Additions: 1. $149,000 to Operating Grants Deductions 1. $400,000 to Transfers in from Misc Services 2. $200,000 to Beginning Fund Balance Expenditures: Additions: I. $257,000 to Ending Fund Balance 2. $552,000 to Lights, Signs, Signals Deductions: I. $1,260,000 to Repair & Maintenance-Major Projects Expenditure Budget $1,581,500 Additions $809,000 SECTION 6. CAPITAL FUND 308: Expenditures: Additions: I. $ 257,400 to transfers to Misc Services Deductions: 1. $ 257,400 from Ending Fund Balance Expenditure Budget $257,400 Additions $257,400 SECTION 7. WATER/SEWER FUND 410: Revenue: Additions: 1. $1,395,000 To Beginning Fund Balance Deductions: 1. $500 to lnterfund Facilities Lease Expenditures: Additions: Water Billing 1. $300,000 to Interfund Debt Issue 2. $1,900,000 to Transfers to Misc Services Deductions $1,260,000 Deductions $257,400 Amended Budget $1 ,130,500 Amended Budget $257,400 Deductions: Water Billing I. $3 ,570,900 to Ending Fund Balance 2. $1 1,800 to Transfer to Building Maintenance -Civic Center Sewer Billing I. $ I I ,800 to Transfer to Building Maintenance -Civic Center Expenditure Budget $13,464,200 Additions $2,200,000 Deductions $3 ,594,500 SECTION 8. 1996 BOND REDEMPTION ACCOUNT 450: Amended Budget $12,069,700 This is an unbudgeted debt service account and is included as an estimation for reference only. Expenditures: Additions: 1. $600 to Other Debt Service Deductions: I. $600 to Ending Fund Balance Expenditure Budget $633,600 Additions $600 Deductions $600 SECTION 9. WATER/SEWER CONSTRUCTION ACCOUNT 477: Revenue: Additions: I. $507,000 to Beginning Fund Balance Expenditures: Additions: I. $507,000 to Ending Fund Balance Expenditure Budget $5,809,600 Additions $507,000 Deductions $ -0- Amended Budget $633,600 Amended Budget $6,316,600 SECTION 10. WATER/SEWER CONSTRUCTION ACCOUNT 490: Revenues: Deductions: 1. $335,000 to Beginning Fund Balance Expenditures: Additions 1. $72,700 to Land Fill Dumping Fees Deductions: 1. $395,900 to Ending Fund Balance 2. $11,800 to Transfer to Building Maintenance -Civic Center Expenditure Budget $3,095,800 Additions $72,700 SECTION 11. STORM WATER FUND 493: Revenue: Additions: 1. $128,000 to Beginning Fund Balance Expenditures: Additions: 1. $128,000 to Ending Fund Balance Expenditure Budget $849,100 Additions $128,000 SECTION 12. AIRPORT FUND 495: Expenditures: Additions: 1. $8,100 to improvements other than buildings 2. $7,700 to other improvements 3. $ 600 to small equipment 4. $1,400 to utility expense Deductions: 1. $17,800 to ending Fund Balance Expenditure Budget $106,700 Additions $17,800 Deductions $407,700 Deductions $ -0- Deductions $17,800 Amended Budget $2,760,800 Amended Budget $977,100 Amended Budget $106,700 SECTION 13. AMBULANCE SERVICE FUND 498: Revenue: Additions: I. $300,000 to Interfund Loan Proceeds 2. $48,000 to Beginning Fund Balance Expenditures: Additions: I. $348,000 to Ending Fund Balance Expenditure Budget Additions Deductions $2,700,200 $348,000 $ -0- SECTION 14. CENTRAL SERVICES FUND 517: Revenue: Additions: 1. $63,000 to Beginning Fund Balance Expenditures: Additions: 1. $16,000 to Machinery & Equipment 2. $5,000 to Professional Services 3. $42,000 to Ending Fund Balance Expenditure Budget Additions Deductions $578,900 $63,000 $ -0- SECTION 15. EOUIPMENT RENTAL FUND 519: Revenue: Additions: 1. $274,000 to Beginning Fund Balance Expenditures: Additions: 1. $274,000 to Ending Fund Balance Expenditure Budget $3,991,800 Additions $274,000 Deductions $ -0- Amended Budget $3,048,200 Amended Budget $641,000 Amended Budget $4,265,800 SECTION 16. BUILDING MAINTENANCE FUND 528: Revenue: Additions: 1. $269,000 to Beginning Fund Balance Deductions: 1. $498,200 to Transfer from Civic Center occupants Expenditures: Deductions: I. $229,200 Ending Fund Balance Expenditure Budget $3,079,400 Additions $ -0- Deductions $229,200 Amended Budget $2,850,200 SECTION 17. All Ending Fund Balances which are included in the preceding budgets which require appropriation by the City Council are appropriated to specific expenditure categories by the City Council as set fortb in this ordinance. As Ending Fund Balances are appropriated for expenditures they are shown as both additions and deductions to the respective budgets. However, in this ordinance they may be shown as a net change to the Ending Fund Balance. SECTION 18. This ordinance shall take effect and be in force five (5) days after its passage and publication as provided by law. Adopted by the City Council and signed by its Mayor on _______ _ Bill J. Ecret, Mayor ATTEST: W. Robert Taylor, Finance Director APPROVED AS TO FORM: Katherine L. Kennison, City Attorney November 19, 2012 TO: City Manager for Council Consideration FROM: Parks and Recreation Director SUBJECT: Donation of Thirty (30) Blue and Green Spruce Trees from Willi Schulz of Superior Building Manufacturing Please find attached a resolution accepting a donation of thirty (30) blue and green spruce trees from Willi Schulz of Superior Building Manufacturing to be planted at Blue Heron Park. The Moses Lake Parks and Recreation Department would like to thank Willi Schulz of Superior Building Manufacturing for his donation and continued support of recreational programs and facilities for Moses Lake citizens and visitors. R;r;:;b "; Spencer Grigg Parks and Recreation Director Attachment: Resolution SG:kf RESOLUTION NO .-'3""3""33"----__ A RESOLUTION ACCEPTING A DONATION OF THIRTY (30) BLUE AND GREEN SPRUCE TREES FROM WILLI SCHULZ OF SUPERIOR BUILDING MANUFACTURING RECITALS: 1. Willi Schulz of Superior Building Manufacturing has donated thirty (30) blue and green spruce trees to be planted at Blue Heron Park. RESOLVED: 1. The thirty (30) trees and shrubs donation is accepted. 2. The City of Moses Lake wishes to express its sincere appreciation to Willi Schulz of Superior Building Manufacturing. Adopted by the City Council on _______ _ Bill Ecret, Mayor ATTEST: W. Robert Taylor, Finance Director November 19,2012 TO: City Manager for Council Consideration FROM: Parks and Recreation Director SUBJECT: Donation of Trees and Shrubs from Home Depot Please find attached a resolution accepting a donation of numerous trees and shrubs from our local Home Depot. These trees and shrubs were a gift for the community to help beautify our various city parks and facilities. The Moses Lake Parks and Recreation Department would like to thank Home Depot for their donation and continued support ofrecreational programs and facilities for Moses Lake citizens and visitors. ~~bm~ Spencer Grigg Parks and Recreation Director Attachment: Resolution SG:kf RESOLUTION NO.----=-=33:c:3cc.4 __ _ A RESOLUTION ACCEPTING A DONATION OF NUMEROUS TREES AND SHRUBS FROM HOME DEPOT RECITALS: 1. Our local Home Depot has donated numerous trees and shrubs to the City of Moses Lake as a gift for the community to help beautify our various city parks and facilities. RESOLVED: 1. The trees and shrubs donation is accepted. 2. The City of Moses Lake wishes to express its sincere appreciation to Home Depot. Adopted by the City Council on. ________ _ Bill Ecret, Mayor ATTEST: W. Robert Taylor, Finance Director November 20, 2012 TO: FROM: SUBJECT: City Manager For City Council Consideration Municipal Services Director Request Deviation -Driveway Width Ernies Fuel Stop John Sugg, representing Ernies Fuel Stop, requests to retain the width of two driveways when Emies' contractor removes and replaces the driveways. The existing widths of the driveways are approximately 42 feet and 82 feet. The widest driveway allowed in the Community Street and Utility Standards is 40 feet. For comparison, the width of Broadway Avenue is approximately 78 feet, which is five traffic lanes and two parking lanes. The reasons for restricting the widths of driveways include a shorter distance for pedestrians to cross, causes vehicles to enter and exit the street perpendicular instead of at a skew, and causes vehicles to enter and exit the street in an orderly fashion. These driveways were installed by a city contractor in 1986 before the driveway standards existed. Respectfully Submitted, G;::.1~\\~ Municipal Services Director November 14,2012 Mr. Gary Harer City of Moses Lake PO Box 1579 Moses Lake, WA 98837 Dear Mr. Harer: Fuel Stops This letter is pertaining to our fuel stop location at 1810 E. Kittleson Rd. in Moses Lake, Washington. As you know from our discussions and meetings, our company has agreed to spend a substantial sum of money to help support the standing water issue on Kittleson Road. As part of that project, we are electing to repair our existing driveways for the betterment of our customers and overall general aesthetics. We are respectfully requesting that in the ' repair of the two driveways, that we are able to keep the lengths of the driveways unchanged and in tact as they currently stand. We have a pre- existing condition with our existing business operation. Our building, fuel pumps and driveways are located dependant on large trucks that need long approaches to properly and safely reach our pumps. I understand that the city has a code for the building of new dirveways of a certain length for new construction; however, we believe that this code should not be applied in this circumstance because of our pre-existing business operation that has functioned safely for many years. We are willing participants in the improvement of our location to support our responsibilities and to support the City in improving the condition of the Kittleson Road for us and our neighbors; however, reducing the width of our driveways would adversely effect our business operations and something that we cannot agree to accommodate. My understanding is that the procedure to resolve this issue is for us to attend the City Council meeting to present this request for deviation. Kevin Richards from Western Pacific Engineering will be representing our interest at the appropriate City Council meeting to resolve thls matter. Please let me know if you have any questions or if you need anything else from our end. Sincerely, ~u John Sugg Controller NOV 1 9 2012 Ernie's Fuel Stops, LLC 28727 Pacific Hwy. S. • Federal Way, WA 98003-9227 (253) 946-1110 • FAX: (253) 946-6649 November 21,2012 TO: City Manager For City Council Consideration FROM: Municipal Services Director SUBJECT: Library Assessable Restrooms Staff has reviewed the options to acquire an assessable restroom in the Library. The most economical solution is to convert the existing janitor closet to an assessable restroom, and convert janitorial closet to a unisex assessable restroom. The library staff would be required to also use this restroom. The work would require moving a wall approximately one foot, moving a built-in desk approximately one foot, and installing 4-foot tall wall to define the corridor to the restroom. Other options are to covert the Librarian office into a restroom and partitioning off anther space for her office, or installing a restroom in the conference room. Both of the options would cost approximately $40,000 -$50,000. Staff can make the modifications to convert the janitorial closet into a restroom. The cost of materials is estimated to be $6,000. If this plan is approved, the Building Division would like to start work in the next week since the end of November and the first part of December are not quite so busy for them. Staff is requesting direction for the improvements. Respectfully Submitted, lA. ~ GaryHare~S Municipal Services Director c.onterenc.e Room "'----, 1 ns ~ C1 \\ Loll 1"Q t\ WOo \ \