Ordinance 2822CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 2822
AN ORDINANCE of the City of Edmonds, Washington,
relating to contracting indebtedness; providing for
the issuance of $2,425,000 par value of Limited Tax
General Obligation Refunding Bonds, 1991, of the City
to provide funds with which to pay part of the cost
of paying and redeeming the City's outstanding
Limited Tax General Obligation Bonds, 1980; fixing
the date, form, maturities, interest rates, terms and
covenants of the bonds; establishing a bond
redemption fund and a refunding fund; and approving
the sale and providing for the delivery of the bonds
to Dain Bosworth Incorporated of Seattle, Washington.
WHEREAS, the City of Edmonds, Washington (the "City"), by
Ordinance No. 2150 passed on June 16, 1980, provided for the
issuance and sale of $3,400,000 par value Limited Tax General
Obligation Bonds, 1980 (the 111980 Bonds"), and by that ordinance
reserved the right to redeem the 1980 Bonds on September 1,
1990, or on any semiannual interest payment date thereafter, at
par plus accrued interest; and
WHEREAS, the City presently has outstanding $2,375,000
principal amount of the 1980 Bonds maturing on September 1 of
each of the years 1991 through 2000, inclusive, and bearing
various interest rates from 7.75% to 9.375% (the 111980 Refunded
Bonds"); and
WHEREAS, after due consideration, it appears to the City
Council that the outstanding 1980 Bonds may be refunded by the
issuance and sale of the limited tax general obligation
refunding bonds authorized herein (the "Bonds") so that /a
substantial saving will be effected by the difference between
the principal and interest costs over the life of the Bonds and
the principal and interest costs over the life of the
outstanding 1980 Bonds but for such refunding, which refunding
will be effected by:
(a) The issuance of the bonds; and
(b) The call payment and redemption on March 1, 1991,
of all of the outstanding 1980 Bonds at a price of par plus
accrued interest;
and
WHEREAS, in order to effect that refunding in the manner
that will be most advantageous to the City and its taxpayers it
is found necessary and advisable that certain direct obligations
of the United States of America bearing interest and maturing at
such time as necessary to accomplish the refunding as aforesaid
be purchased out of the proceeds of the sale of the Bonds
authorized herein; and
WHEREAS, Dain Bosworth, Incorporated, has offered to
purchase those bonds under the terms and conditions hereinafter
set forth in the form of a purchase contract; NOW, THEREFORE
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO
ORDAIN as follows:
Section 1. Debt Capacity. The assessed valuation of the
taxable property within the City as ascertained by the last
preceding assessment for City purposes for the calendar year
1991 is $1,395,797,927, and the City has outstanding general
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indebtedness evidenced by limited tax general obligation bonds
in the principal amount of $2,375,000, irrevocable provision for
the payment and redemption of which is made herein, incurred
within the limit of up to 3/4 of 1% of the value of the taxable
property within the City permitted for general municipal
purposes without a vote of the qualified voters therein and no
unlimited tax general obligation bonds issued pursuant to a vote
of the qualified voters of the City, and the amount of
indebtedness for which bonds are authorized herein to be issued
is $2,425,000.
Section 2. Authorization of Bonds. The City shall borrow
money on the credit of the City and issue negotiable limited tax
general obligation bonds evidencing that indebtedness in the
amount of $2,425,000 for general City purposes to provide the
funds to pay part of the cost of paying, both principal and
interest, and redeeming on March 1, 1991, all of the outstanding
1980 Bonds at a price of par (the "Refunding Plan") and to pay
the costs of issuance and sale of the Bonds (the "costs of
issuance"). The general indebtedness to be incurred shall be
within the limit of up to 3/4 of 1% of the value of the taxable
property within the City permitted for general municipal
purposes without a vote of the qualified voters therein.
Section 3. D;crigtion of Bonds. The bonds shall be
called Limited Tax General Obligation Refunding Bonds, 1991, of
the City (the "Bonds"); shall be in the aggregate principal
me]:
amount of $2,425,000; shall be dated February 1, 1991; shall be
in the denomination of $5,000 or any integral multiple thereof
within a single maturity; shall be numbered separately in the
manner and with any additional designation as the Bond Registrar
(collectively, the fiscal agencies of the State of Washington
located in Seattle, Washington, and New York, New York) deems
necessary for purposes of identification; shall bear interest at
the rates set forth below (computed on the basis of a 360-day
year of twelve 30-day months), payable on September 1, 1991, and
semiannually thereafter on each succeeding March 1 and
September 1; and shall bear interest at the rates and mature on
September 1 in years and amounts as follows:
Maturity Interest
Years Amount Rates
1991 $160,000 5.00%
1992 200,000 5.25
1993 210,000 5.50
1994 220,000 5.75
1995 235,000 5.95
1996 250,000 6.05
1997 265,000 6.15
1998 275,000 6.25
1999 295,000 6.35
2000 315,000 6.45
Section 4. Registration and Transfer f Bones. The
Bonds shall be issued only in registered form as to both
principal and interest and recorded on books or records
maintained by the Bond Registrar (the "Bond Register"). The
Bond Register shall contain the name and mailing address of the
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owner of each Bond and the principal amount and number of each
of the Bonds held by each owner.
Bonds surrendered to the Bond Registrar may be exchanged
for Bonds in any authorized denomination of an equal aggregate
principal amount and of the same interest rate and maturity.
Bonds may be transferred only if endorsed in the manner provided
thereon and surrendered to the Bond Registrar. Any exchange or
transfer shall be without cost to the owner or transferee. The
Bond Registrar shall not be obligated to exchange or transfer
any Bond during the fifteen days preceding any principal payment
or redemption date.
Section 5. Payment of Bonds. 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 paid
by checks or drafts mailed on the interest payment date to the
registered owners at the addresses appearing on the Bond
Register on the fifteenth day of the month preceding the
interest payment date. Principal of the Bonds shall be payable
upon presentation and surrender of the Bonds by the registered
owners at either of the principal offices of the Bond Registrar
at the option of the owners.
Section 6. t-tional Redemption P h
Bonds. Bonds maturing in the years 1991 through 1995,
inclusive, shall be issued without the right or option of the
City to redeem those Bonds prior to their stated maturity
Q•M
dates. The City reserves the right and option to redeem Bonds
maturing on or after September 1, 1996, prior to their stated
maturity dates, as a whole, or in part within one or more
maturities selected by the City (and by lot within a maturity in
such manner as the Bond Registrar shall determine), on March 1,
1996, or on any interest payment date thereafter, at par plus
accrued interest to the date fixed for redemption.
Portions of the principal amount of any Bond, in
installments of $5,000 or any integral multiple thereof, may be
redeemed. If less than all of the principal amount of any Bond
is redeemed, upon surrender of that Bond at either of the
principal offices of the Bond Registrar, there shall be issued
to the registered owner, without charge therefor, a new Bond (or
Bonds, at the option of the registered owner) of the same
maturity and interest rate in any of the denominations
authorized by this ordinance in the aggregate principal amount
remaining unredeemed.
The City further reserves the right and option to purchase
any or all of the Bonds in the open market at any time at a
price not in excess of par plus accrued interest to the date of
purchase.
All Bonds purchased or redeemed under this section shall be
cancelled.
Section 7. Notice of R demption. The City shall cause
notice of any intended redemption of Bonds to be given not less
than 30 nor more than 60 days prior to the date fixed for
redemption by first-class mail, postage prepaid, to the
registered owner of any Bond to be redeemed at the address
appearing on the Bond Register at the time the Bond Registrar
prepares the notice, and the requirements of this sentence shall
be deemed to have been fulfilled when notice has been mailed as
so provided, whether or not it is actually received by the owner
of any Bond. Interest on Bonds called for redemption shall
cease to accrue on the date fixed for redemption unless the Bond
or Bonds called are not redeemed when presented pursuant to the
call. In addition, the redemption notice shall be mailed within
the same period, postage prepaid, to Moody's Investors Service,
Inc., and Standard & Poor's Corporation at their offices in New
York, New York, or their successors, to Dain Bosworth
Incorporated, at its principal office in Seattle, Washington, or
its successor, and to such other persons and with such
additional information as the City Finance Director shall
determine, but these additional mailings shall not be a
condition precedent to the redemption of Bonds.
Section Ja. Failure to Redeem Bonds. If any Bond is not
redeemed when properly presented at its maturity or call date,
the City shall be obligated to pay interest on that Bond at the
same rate provided in the Bond from and after its maturity or
call date until that Bond, both principal and interest, is paid
in full or until sufficient money for its payment in full is on
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deposit in the bond redemption fund hereinafter created and the
Bond has been called for payment by giving notice of that call
to the registered owner of each of those unpaid Bonds.
Section _ 1. P_l._e Q Q Tax -es. For as long as any of the
Bonds are outstanding, the City irrevocably pledges to include
in its budget and levy taxes annually within the constitutional
and statutory tax limitations provided by law without a vote of
the electors of the City on all of the taxable property within
the City in an amount sufficient, together with other money
legally available and to be used therefor, to pay when due the
principal of and interest on the Bonds, and the full faith,
credit and resources of the City are pledged irrevocably for the
annual levy and collection of those taxes and the prompt payment
of that principal and interest.
5ecti4�1�.. Form and Execution of Bids. The Bonds shall
be printed or lithographed on good bond paper in a form
consistent with the provisions of this ordinance and state law,
shall be signed by the Mayor and City Clerk, either or both of
whose signatures may be manual or in facsimile, and the seal of
the City or a facsimile reproduction thereof shall be impressed
or printed thereon.
Only Bonds bearing a Certificate of Authentication in the
following form, manually signed by the Bond Registrar, shall be
valid or obligatory for any purpose or entitled to the benefits
of this ordinance:
ME
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered City of
Edmonds, Washington, Limited Tax General Obligation
Refunding Bonds, 1991, described in the Bond
Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By --
Authorized Officer
The authorized signing of a Certificate of Authentication shall
be conclusive evidence that the Bonds so authenticated have been
duly executed, authenticated and delivered and are entitled to
the benefits of this ordinance.
If any officer whose facsimile signature appears on the
Bonds ceases to be an officer of the City authorized to sign
bonds before the Bonds bearing his or her facsimile signature
are authenticated or delivered by the Bond Registrar or issued
by the City, those Bonds nevertheless may be authenticated,
delivered and issued and, when authenticated, issued and
delivered, shall be as binding on the City as though that person
had continued to be an officer of the City authorized to sign
bonds. Any Bond also may be signed on behalf of the City by any
person who, on the actual date of signing of the Bond, is an
officer of the City authorized to sign bonds, although he or she
did not hold the required office on the date of issuance of the
Bonds.
Section 11. Bond Registrar. The Bond Registrar shall
keep, or cause to be kept, at its principal corporate trust
ME
office, sufficient books for the registration and transfer of
the Bonds which shall be open to inspection by the City at all
times. The Bond Registrar is authorized, on behalf of the City,
to authenticate and deliver Bonds transferred or exchanged in
accordance with the provisions of the Bonds and this ordinance,
to serve as the City's paying agent for the Bonds and to carry
out all of the Bond Registrar's powers and duties under this
ordinance and City Ordinance No. 2451 establishing a system of
registration for the City's bonds and obligations.
The Bond Registrar shall be responsible for its
representations contained in the Bond Registrar's Certificate of
Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not
the Bond Registrar and, to the extent permitted by law, may act
as depository for and permit any of its officers or directors to
act as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners.
Section1.2. BQnd Fund; Retunding_F n . There is created in
the Office of the Finance Director of the City a special fund to
be known as the Limited Tax General Obligation Refunding Bond
Fund, 1991, into which fund shall be deposited any accrued
interest received from the sale and delivery of the Bonds.
There also is created in the Office of the Finance Director of
the City a special fund to be known and designated as the
Refunding Fund, into which fund shall be deposited the proceeds
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of the issuance and sale of the Bonds to pay part of the cost of
carrying out the Refunding Plan and to pay the cost of issuance
and sale of the Bonds.
Section U. The efunding. Immediately on receipt of the
proceeds of the Bonds, the Finance Director of the City is
authorized and directed to purchase direct obligations of the
United States of America (the "Acquired Obligations"). The
Acquired Obligations and any cash remaining on deposit in the
Refunding Fund after the purchase of those obligations and the
payment of the costs of issuance shall be held in trust for the
benefit of the holders of the 1980 Bonds. The principal of and
interest on those Acquired Obligations at maturity and any cash
on deposit in the Refunding Fund shall be used for the payment,
both principal and interest, and redemption of the 1980 Bonds on
March 1, 1991, and Dain Bosworth Incorporated shall provide a
certificate confirming that such proceeds of the Acquired
Obligations, if paid when due, and cash on deposit in the
Refunding Fund will be sufficient to carry out the Refunding
Plan. Any money remaining on deposit in the Refunding Fund
after making the payments required to be made by the Refunding
Plan shall be transferred to the General Fund of the City and
used for any lawful City purpose.
The City reserves the right to substitute other direct,
noncallable obligations of the United States of America
("Government Obligations") for any of the Acquired Obligations
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and to use any savings created thereby for any lawful City
purpose if such substitution shall not impair the timely payment
of the amounts required to be paid by the Refunding Plan as so
verified by Dain Bosworth Incorporated. Any surplus money
resulting from the sale, transfer, other disposition or
redemption of the Acquired Obligations and the substitutions
therefor shall be released from the trust estate and transferred
to the City to be used for any lawful City purpose.
Section 14. Call f r Redemption Qf the OutsLanding1980
Bonds. The City calls for redemption on March 1, 1991, all of
the outstanding 1980 Bonds at par plus accrued interest. Such
call for redemption shall be irrevocable after the delivery of
the Bonds to the initial purchaser thereof.
The proper City officials are authorized and directed to
give or cause to be given such notices as required, at the times
and in the manner required, pursuant to Ordinance No. 2150 in
order to effect the redemption prior to their maturity of the
1980 Bonds.
Section 15. Findings with Respect tg Refunding. The City
Council finds and determines that the issuance and sale of the
Bonds at this time will effect a saving to the City and its
taxpayers and is in the best interest of the City and in the
public interest. In making such finding and determination, the
City Council has given consideration to the fixed maturities of
the Bonds and the 1980 Bonds, the costs of issuance of the Bonds
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and the known earned income from the investment of the proceeds
of the issuance and sale of the Bonds and other money of the
City used in the Refunding Plan pending payment and redemption
of the 1980 Bonds.
The City Council further finds and determines that the
money to be deposited in the Refunding Fund for the 1980 Bonds
in accordance with Sections 12 and 13 of this ordinance will
discharge and satisfy the obligations of the City under
Ordinance No. 2150 with respect to the 1980 Bonds, and the
pledges, charges, trusts, covenants and agreements of the City
therein made or provided for as to the 1980 Bonds and that the
1980 Bonds no longer shall be deemed to be outstanding under
such ordinance immediately upon the deposit of such money in the
Refunding Fund.
Section 16. Preservation of TaxExemrpti.on for Interest on
Bonds. The City covenants that it will take all actions
necessary to prevent interest on the Bonds from being included
in gross income for federal income tax purposes, and it will
neither take any action nor make or permit any use of proceeds
of the Bonds or other funds of the City treated as proceeds of
the Bonds at any time during the term of the Bonds which will
cause interest on the Bonds to be included in gross income for
federal income tax purposes. The City certifies that it has not
been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that it is a bond issuer whose
arbitrage certifications may not be relied upon.
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SectionL7. -mall Governmental Issuer Arbitrage Rebate
Exemption and Designation Qf Bond "Qualified Tax -Exempt
Obligation ." The City finds and declares that (a) it is a duly
organized and existing governmental unit of the State of
Washington and has general taxing power; (b) no Bond which is
part of this issue of Bonds is a "private activity bond" within
the meaning of Section 141 of the United States Internal Revenue
Code of 1986, as amended (the "Code"); (c) at least 95% of the
net proceeds of the Bonds will be used for local governmental
activities of the City (or of a governmental unit the
jurisdiction of which is entirely within the jurisdiction of the
City); (d) the aggregate face amount of all tax-exempt
obligations (other than private activity bonds) issued by the
City and all entities subordinate to the City (including any
entity which the City controls, which derives its authority to
issue tax-exempt obligations from the City or which issues
tax-exempt obligations on behalf of the City) during the
calendar year in which the Bonds are issued is not reasonably
expected to exceed $5,000,000; and (e) the amount of tax-exempt
obligations, including the Bonds, designated by the City as
"qualified tax-exempt obligations" for the purposes of Section
265(b)(3) of the Code during the calendar year in which the
Bonds are issued does not exceed $10,000,000. The City
therefore certifies that the Bonds are eligible for the
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arbitrage rebate exemption under Section 148(f)(4)(C) of the
Code and designates the Bonds as "qualified tax-exempt
obligations" for the purposes of Section 265(b)(3) of the Code.
,section --U. Bonds Negotiable. The Bonds shall be
negotiable instruments to the extent provided by RCW 62A.8-102
and 62A.8-105.
Section 19. Advance Refunding or Defeasance of thg•
The City may issue advance refunding bonds pursuant to the laws
of the State of Washington or use money available from any other
lawful source to pay when due the principal of and interest on
the Bonds, or any portion thereof included in a refunding or
defeasance plan, and to redeem and retire, refund or defease all
such then -outstanding Bonds (hereinafter collectively called the
"defeased Bonds") and to pay the costs of the refunding or
defeasance. If money and/or "government obligations" (as
defined in Chapter 39.53 RCW, as now or hereafter amended)
maturing at a time or times and bearing interest in amounts
(together with money, if necessary) sufficient to redeem and
retire, refund or defease the defeased Bonds in accordance with
their terms are set aside in a special trust fund or escrow
account irrevocably pledged to that redemption and retirement of
defeased Bonds (hereinafter called the "trust account"), then
all right and interest of the owners of the defeased Bonds in
the covenants of this ordinance and in the funds and accounts
obligated to the payment of the defeased Bonds shall cease and
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become void. The owners of defeased Bonds shall have the right
to receive payment of the principal of and interest on the
defeased Bonds from the trust account. The defeased Bonds shall
be deemed no longer outstanding, and the City may apply any
money in any other fund or account established for the payment
or redemption of the defeased Bonds to any lawful purposes as it
shall determine.
S c i n 2D. Dain
Bosworth Incorporated of Seattle, Washington has presented a
purchase contract (the "Bond Purchase Contract") to the City
offering to purchase the Bonds under the terms and conditions
provided in the Bond Purchase Contract, which written Bond
Purchase Contract is on file with the City Clerk and is
incorporated herein by this reference. The City Council finds
that entering into the Bond Purchase Contract is in the City's
best interest and therefore accepts the offer contained therein
and authorizes its execution by City officials.
The Bonds will be printed at City expense and will be
delivered to the purchaser in accordance with the Bond Purchase
Contract, with the approving legal opinion of Foster Pepper &
Shefelman, municipal bond counsel of Seattle, Washington,
regarding the Bonds printed on each Bond. Bond counsel shall
not be required to review and shall express no opinion
concerning the completeness or accuracy of any official
statement, offering circular or other sales material issued or
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used in connection with the Bonds, and bond counsel's opinion
shall so state.
The City Council has been provided with copies of a
preliminary official statement dated January 22, 1991 (the
"Preliminary Official Statement"), prepared in connection with
the sale of the Bonds. For the sole purposes of the purchaser's
compliance with Securities and Exchange Commission Rule
15c2-12(b)(1), the City "deems final" that Preliminary Official
Statement as of its date, except for the omission of information
as to offering prices, interest rates, selling compensation,
aggregate principal amount, principal amount per maturity,
maturity dates, options of redemption, delivery dates, ratings
and other terms of the Bonds dependent on such matters.
The proper City officials are authorized and directed to do
everything necessary for the prompt delivery of the Bonds to the
purchaser and for the proper application and use of the proceeds
of the sale thereof.
Section 21. Temporary_-nd. Pending the printing,
execution and delivery to the purchaser of definitive Bonds, the
City may cause to be executed and delivered to the purchaser a
single temporary Bond in the total principal amount of the
Bonds. The temporary Bond shall bear the same date of issuance,
interest rates, principal payment dates and terms and covenants
as the definitive Bonds, shall be issued as a fully registered
Bond in the name of the purchaser, and otherwise shall be in a
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form acceptable to the purchaser. The temporary Bond shall be
exchanged for definitive Bonds as soon as they are printed,
executed and available for delivery.
Section 22. Effective Date of Ordinance. This ordinance
is a legislative act not subject to referendum and shall take
effect and be in force from and after its passage and five days
following its publication as required by law.
PASSED by the City Council of the City of Edmonds,
Washington, at a regular open public meeting thereof, this
29th day of January, 1991.
Mayor
ATTEST:
VCit Clerk
APPROVED AS TO FORM:
�)Sna&
City Attorney
Filed with the City Clerk: January 29, 1991
Passed by the City Council: January 29, 1991
Published: February 1, 1991
Effective date: February 6, 1991
Ordinance No.: 2822
MLC-925*
vaeu to mr hrrtunahng rtan
11"V1 p moot and Yede-flan d�the nllo Bonds,
7!!e CtpfyayGpllACil 111ri}1n Tl�yds, pryd delnfnry 1hM }fye mprleY 1O
i>c depostted in the Refunding Fuld far the 198o B0,Ms In atcpr-
ponCe hrrth SecifOns 12 ond. I3 of this ordlnonce win discWge and
sourly the obllgptony of the City under Ordinance No. 215A with
respect fO 1h - 14A0 Bonds, and the ppledprs, charges, trusts,
covenants and agreements of Ctjtey tf+ere rt mace or provltl
for a5 to The 148o Bonds and that the 1980 Bonds no Ionpper shall be
dcerned to be vlrtstonding under Wth ordlnorke immetlEpteIV upon
the deposTt of such money in the Refunding Fund.
Section Tb, Pr S mation of Tax Cxem Ion gar IMe�reiibn sdnd5.
The Luy �FW1IP TORe ry PrEV fi
7nferesl an The Bonds from being includetl In pras5 Income for
federal Incafir lax purposes, arW If will neither coke dnv ac}ian nor
make orp� rmll any use pt proceeds of Me Bonds or ether funds of
the CI.V treated os prOc of the Bonds of any time during the
term of the Bonds which vet}I cause Interest an the Bond$ to be
included in gross income far federal income tax purposes. The City
ccrfifies that It has not been nofifled of any listing or proposed
!I}Hrtg bV the InTerrld Revenue Service TO The offact that It Is a
6antl 1-suer whose arbtfrpge terhtkahons may oat tie retied upon.
9 9"mmenfol UnR of Ile State Of Wash Ington and has
King power; (b}�nO Bout{ wnl[h.15 port Of 15 Issue of
"prlvpto dCtiVRy bend" within the meaning of Section
United a�tales Inferno! Revenue Code of }988 as
the "Code i[i of IlCr;f ,A of the net proceeds W the
be used for local governmental ocfivftles of the C�Wh(flfM
i on of T Iunit the C}tvey I{O)I the ICNpagn cgaie fate f which 15, entirely
ylt aT Oil
t pbllpotEons {rot(idr than prlVdte activity bpntlsl Issued
and ell emtles subordinale to the City flnclud€ arty
h the City controls which derives its authority to iSiut
I oMigaRons from the City or whlcn issues fox -exempt
on behalf of. the City during the calendar year In whkh
Inc snare or wosrhirgtoo or us
lawful source f6 Po when due
!sands, er Cx7y thereof
lance plan, to redeem am
them,outsfonding Bonds (het
'defeased Bonds" y and to pay
Sance. If money amejor "aaye
ChoMer 39.5S RCW as now or
Irma or tlnles and betIrinq It
money, If heCppsWry) suffltieri
01cose the do eased Bonds In
aside In a spgrloi trust fun
pledged to that reStemltfion
fhereimoffer calk ttln7ee Mys} a
of the owner of ft+e dot
ordinance and In the funds and
of the delpass,eed� Bonds shall
deleased H�atTds shall have
princlpooI Co InterKl On
ottourA, !fie defeossd Bones
help, and the r�1ay apply
aGt OUAt a;tabfl !er the
defeased BarhdS t9 any Iarvfut p
on
The Bands will be Pi
to the purchaser In at
with the approving lei
munidpar bond court:
Bonds printed on each
review and 5ho11 exprh
or aCCaratY at any e'
Sales materlol ISSUld
ed does not exceed
4ail0meon (fC
I�eemet ogeCo• shoe be nrgplyab
42A.8.102 and E2A.a
cr of the Bonds. The
uucal To me lows of
%$o from any other
f and IMerost on the
refunding or defea.
Affidavit of Publication
The undersigned, being first duly sworn on oath deposes and says
that she is Principal Clerk of THE HERALD, a daily newspaper
printed and published in the City of Everett, County of Snohomish,
and State of Washington; that said newspaper is a newspaper of
general circulation in said County and State; that said newspaper
has been approved as a legal newspaper by order of the Superior
Court of Snohomish County and that the notice ........................................
----------- ---Q-rdi.n-ant-e..N-o-,.... U2.2............ ................-..•.:...: .......
t
f to redeem and retire; refund or
redeem
and
lased
etrse
ithe
the
shall
for ovateThalr terms Ore set
.....................................................................
................................................................. .
d or escrow ac aunt Irrevocably
rel€renlenl a� defeased Bonds
a printed copy of which is hereunto attached, was published in said
tcouiol' then all right and Interest
130a. In fK0 COVenanfy at this
accoums obligated To "a payment
become the
newspaper proper and not in supplement form, in the regular and
and vole owners Of
rlp ht to receive payment at the
defectsed fronds from Ise trust
entire edition of said paper on the following days and times, namely:
be doomed rid bnger auTStand. .IMoneY In
fund
any bMxr ar
". file ar redernptldn of
Ses as t Sh011 defernnfrb.
P°-GGhOxc pnhftrra`.balmBoswoth
February1 1991
R58F2f3� resinT'ed a purchase
.......z.............-......•..-..,....._.................,.......•....••._...•............-..-
lyhlcih wrfttcn Bond pLfChaSe Contra[! l5 '
and is 1nCDrlsalated herein by this refer.
ds iliac eMMItSg Into the BMtd PWsfTdsr
(best interns! end Ihercfpro acaepl5 t5e
ana outnarlres iK execullvn oy City
rd al City expense and will be delivered
dance With the Rend Purchase C,entrad,
OPlnlon of Foster Peeper A shownwin-
srafemern, onerin circular a other
ed in torrkcttan th the Bonds, and
sv state.
Provided wth coeds of a brellminary
' rhrn .four rremm�nary tmtcnot simemem as ar Its aaht, except Tar
'he vmisslan of fnforrnaton as to dffering prkel, Interest roPos
teillty compensation, ogare9afe prkcipW amount, printlpal
rY dates VONA 'sraannd other terms n( Bone'sdecentl M Ilwth
ihaTfers.
The proper C"Y Officials are authorized ond dlretted to do
tveryl 17 n TI,ry far the prompt dellvery of the Burros fe the
turchaser and Tor the proper appikation and use Oi the ,.ds
If the sale thereat.
Soot rh 21. UnICS Or Bond. Pending fhe prinNnO axaeutlon and
ioTiV ry -- lffdS' Tinitve Bands, the Ny may cause
o be executed and delivered ter the purchaser a smote famWory
Bondi the total print€pal amoumf of the Bonds. The temporary
Bond all bear the same date Of Issawxe, Inferesli rates. princlgal
+ay m dales and terms and covenants as the definitive Bonds,
hall be Issued as a fully registered Bond In the name of the
:ur naser, and otherwise shall be In a form occepTable tp the !
�ur'hoser. The temporary Bond slaill be exchanged for deffnitive
s as soon as they are printed, executed and avoliabte ter
lelivery.
Section 27, Ettecihre Date of Ordinance. This ordinance is a
short take otfecf and
e in force from and offer Its passage and five days Tollowtmo fts
ubllcatfan as repulred by low.
PASSED toy the City Council of theCfy of Edmond; wasthinahm,
t a reguW a", goblin: mltthtg thereof, this 29Th day of January,
991.
TTF-5T-. LARRY S. NAUGHTEN, Mayor
ACZoftfit: Cw PARRM City CWk
PPR `0 AS TO FORM:
I.
ublisheSCpTd:T F$.N Y SNYpER, cHY Athsrgey
C T491.
I
and that said newspaper was regularly distributed to its subscribers
during all of said period.
Principal Clerk
Subscribed and sworn to before me this ......
day of ....................:... :mob eb ruary.. :.,.......... 19.....91
_
Notary blic in And for the State of Washington,
resid' g Everett, Snohomish County.
B-2-1
��AII�Bonsfs p�wchrtsed or redeemed Vnd'er"this sectloWshgll be
cancelled.
Section 7. Notic R. m lio den. The City shall cause rsohce of
a o be given not tees then 30 liar
more than 60 das meys prior to the dote fixed Tor redemption
yyby first.
be rodeeirnad o1 thep=.Iss appeorfto the �riglstered owntf am the Bond Regiisterr at the
'time the Bond Re
gistPrepares 1f+e nO}Ice, and the reQQulrcmeph
of this sentence shali be deemed to have been full lied When notice
has been mailed M so provided, whettMr or rat h .Is ochtptly
received by the owner aT any Hand. interest on Bands coiled far
nedemtNlon shall cause to accrue on the date fixed for redemption
unless the Sand or Bonds called are not redeemed when presented
pursuant to the call, in addition, the redemption notice shall be
mulled within the some period, postage prepaid, to Moody's Inver -
tors Service, Ind,, and Standard 6 -Poor s Carboratton aT their
affltes In hNw Vor%, New York, or their suCCK s, to bald
Bosworth incorporoted, of its of Incipal of m In Seaffle, Walhlnq.
Son a 11f ssyyaoccessor, end to such afher persons and wrm such
ad�hsorual IriTarnotlon as The City Finance drec at Noll deter.
mine, but thee! additional molflngs linen net be a caMW4m
precedent to the redemption of Solids,
coon I.Ulm toR eem Bands. If any Band is hot redeemed
be obi to plid fromay !mee. rest onn- aat thefsome�to rift theProviddeeidl
in file one oiler Its maturity or Call date until thal Bond,
both principal and Interest, is gold In full or unit[ sullicieM money
for Its paymenl In full Is on deposit In the bond redemption fund
hereinafter created and the Bond has been called for payment by
Alvin? notice at that call to the registered owner o1 eoch of those
unpaid Bondi.
Section 9. Pledge of Taxes. For as long as any of the Bands are
puTirE3ZnbW pledges to include In tts budget
and levy taxes annually within the canstihAlonal and statutory tax
lim{Wllom provided by tow without a vote of the eleclors at the
Clryy on oil of the taxable aroperty within the Citfyy in on amount
suf}Iclent, together with athrr money legally available and to be
used lherefor TP goy when due the grind upal of and interest on the
ponds, and fHe (full folth credit onel resewces of the City ore
pkedged IrrayOCably for fhe annual levWy ON callel���on of the"
tDxes aid the prompt payment Of that princfpol and lrrtere3l.
19, Form and FxecuftA at uands.. Tile Bards Shall oe
pr to a form consistent
Pr. fhe.provisFprrs of thl ardinatce and state law shall be signed
by the mayor and CiIY +, effher a both oT w�tose sigynatures
nay be manual or in focSimlie, and the seal u1 the City a o
facsimile reoroducflps [[+anew Shalf be Impressed or Printed
thereon,
Only Bands tsearlAQ a Ca+YRleate'of AuthemlcaHon !n The letlaw•
Inp Tofu, manually signed by. the Bond Registrar, shall be volid or
ardinonCe:
oref any purpose or. enli•fied to the benefits of this
ding
CERTIFICATE OF. AVTHENTICATION
This fond Is one of the fully registered City of Edmands,
Washington Llmtled Tax General Obligation Refunding Bonds,
Ml, doscrIed In the Band Ordinance.
WASHINGTON STATE
FISCAL AGENCY
Bond Registrar
By
Authorized oq 5h r
The ouSholied s}pnlr�p at a Certificate of Aufhenficatfan strait be
Conclusive evidence that the Bonds so authenticated hove been
du}v arecut.4 mdt*Mk ftd and delivered and are eMhlod to the
benefits of this ordinonce.
if env officer whose facsimile sionoNra appears on The Bands
teases to be on officer of the City outharl=ed to sign bonds before
1 the fronds bear" his or her facsimlle signature are oumonfir-ated
' ar delivered by the Bond Registrar or issued by the City, thoso
Bonds nevertheless maybe au ncrnl[arEd; delivered and lssunega
on tti+eClty ahen s though "lotlspewr5on had [Oird and del v7}Inuetlshall
fo Ise an eflkeas dr of
the City authorized to sign bands. Any Bond also nov be signed on
behalf of the by any person who on The actual date of Signing
at the Bong en officer of -The Ch; authorised fo sign bends
although he or she did not hold the required office an the dote of
Issuance
O1 the Bonds,
SeCItOO 1l. Dwid Reglslrer. The Bond Registrar shalt keep or
caul C ppddI taipor[te trust Office, sllttlRont
t hooks forhe rcgstration and fron5fer of The Bonds whkh shall be
open to Inspection by the CITY of all tlmos. The Bond Registrar Is
outhorlice, on behalf of the City, to authenticate and deliver Bonds
transfe"00 or exchanged In accordance with the provisions of the
Bonds and This ordinance, to serve as the City's paying agent for
the Bond& and to carry out all of me Bond Registrar s powers and
dunes under this ordinance and city Ordinance No. NS1 ei biish.
Ingo system o1 registration for.the City's bonds and oblipotfons.
The Bond !Registrar shall be responsible for Its represork"lons
contained In the Bond Registrar's Certtf Ecate of Authentication on !
the Bonds. The Bond Registrar may become Hoc owner of Bonds
with the same rights it would have If R were not the Bond Registrar
and, to the extent permlifed py krw, may ant as depestory for and
aof, or In
ny othemtt err capoCH7 w3h respect to, of its ofters of any COMMIttee lto act as SorTied to !
Protect the rights at Hop.d owners.
Section 12. Hand Fund• Refundfrw Fund. There Is created in the
01fICe"9f-Me Finance Mrecroe of'flfe My a special fuhd to be
known M the Limbed Tax General Obilpetion Refunding Bond
Fund, 1991, Into whlch Turd Shall be deposited any ataued Interest
retefved from the sale and delivery e1 the Bond-. There also is
;rented in the Office at the FInonce Director of }tie C!ty a special
Vnd to be known and deslPnaled as the Refunding Fund, Into
whkh fad shall tie •dePoSitea the proceeds of the Issuanc! andSafe of the Bonds -to pay part of the cast of carrying aul.Hfe
Refundlnq plan and'ta goy the .Cast Df Issuance and sale at the
Bands.
SCCtiOn lf, The+ Refundln Immedlotely on receipt of the
prL�1�3+.�8FTFr-13JS�IIf,Tritr" once Director of fhe Cho Is outhar-
rzed and direcled to purchase direct ablIgpOatflons of the United
States of America fthe "Acquired Oblfpallom"The Acquired
Obligations and any cash retnolelfng an deposit 1. n The Refunding
Fund Aker the purchase of those Wigaflons and the po ment of
the casts of Issuance shall be held In trust for the bent 11 of the
holders of the 1"0 Bands. The principal of and interest on those
Acquired Obflooffoms 0 rrto}urlty and any cash on Omit In the
Refunding Fund hall be used for the payment, bath principal and
interest, and eegemplion of the 1990 Bonds on Morch 1, 1991,.ond
that such proceeds of the Acquired Otll}patfohs, It-goldwhen due,
and cash on aepdsli In thefu Rending Funs will be Sufflclent to
carry out the Refunding Plon. Arty money remaining on Omit In
the Refunding Fund otter moklnnq the payments required to be
mode by the Refunding Plan shDll be transferred to the General
Fyne of theCMv nd used for any lawful City purpose,
The City- s the rigQht to substitute other Direct, noncallable
' abl}pdtlon5 at.the United Staes of Amerka ("Oovernment Obltga-
�enfed theeebyfor anawfutt City purpose i errlthe y l��tCCiitpuand t on Such 5ubshhhtio
crn
shall not Impair the tienety payment of the omauMs required to be
paid by the Refunding Plan as so verified by Gain Bosworth Incor-
porated. ARV surplus money resulting from the sale, transfer, ether
ciSFX)010n or redemption of Inc Acquired Oblloatlo s; and the
subsPhuNans Therefor shah be released from Me trust estate and
trgnsferred,to the CIN to be used for any lawful Clty purpose,
Seth.. 14 Coli for Redem ton of the Q&andlno 1980 Bonds.
Thpflun on mar n
,no I98 Bonds of par pplus accrued Interest. 5uCh call for reOemp.
lion shall be Irreva[atrl0 attar the delivery a! the Bonds to the
initial purchaser thereof.
The proPer City officials are ourhorized and directed fo give or
cause to be given such notices as required, of fhE times and in the
manner req given
Drlrsuanf to Ordinance No. 2150 in or to atlact
the redemption prior to their enolurity of the 198o Hor/ds,
Se 15. Flndi wRe_sect to Refundlna. The Clfy Council
finny$ b 1�T7r'iTin lfiBith F-S a Il ua of the Bands of
INS "me will effect a S0iring to fYre City and Its texpeyars and Iy in
...n [.suet r............. r... mow....... , -- -
CITY OF EDMOHdS WASHINGT0I
ORDINANCE 1410. 28"
AN ORDINANCE p} the City of Edmonds, WashlnW", refaf-
Ina to canhypo�ccfflnq lndeWedrhess• provldlna for the issuance of
Rtfundlno msyp991, of tt lue at a CffYdta Provide funds wlrhaj yatorl
to ony Pori of Rice rA f of peon&q and redeeming the Cty's
OvhtorhdfPsQ Limited Tax General Oalfoaton Pihn,fe lulrn• n.r,...
fund and o refunding fund ondrooporrsrnnPrOvinap a pond redemption
Inp for the delivery of the ban 10 Dean Bosworth the sale jcape,
roied of Seattle, Washingfon.
WHEREAS, the Cty of Edmonds. Washlrrclon ft}Pc '.CHy"1, by
Ordinance No. 2150 passed on June 16, 1960 pprraVfded or She
Issuance and sale of $34O0rp00 par value Llmited Tox General
Obligahon $ends, 1980 ``t}le 1980 Bands"), and by Won ordinance
reserved the right to redecrn the 1"0 Bonds on September 1, 199o,
or on an semiannual Interest PovmenI date thcreofter, of par pQ
accrued Interest, and
WAS, the City PF"entry has outstanding 12,375,000 princf-
,,.WHEREAS
,. HEREHERE of the 1180 Sends maturing err September T. of each -
fhc years 1941 lhrauyh ?000 lncfusive, OrW bearing varlous Inler-
osl rates from 7.M% to 9.37N Ithe "1980 Refunded Bands" y; and
WHEREAS after due consideration. It dPP*or5 to the Clfy
Council that ['the outstanding logo Bonds mor be refunded by the
Issuance and sole of the Iimtcd tax general abligorlon refunding -
bonds outlorireci herein line "Bonds") so that a substonfial swng
will be affected by !ha dl erente between The rlmiPol a^d Inter-
est costs aver the life Of the [lands and the principal mho Interest
costs over the life a1 the outstanding 1980 fiends but for such
refundhl , which eefundfna wltl be effected by:
[[a The Issuance of the borKX, and
(b� The call payment and redemption on March 1 1991,aof all:'
of the outstording f980 6011d$ at a prlCc
Interest; of par plus oeued
anWHEREAS, in order to effect "hot refunding i, the morther that
will be most OdyonTageous to the City end its Tax0overs It Is fond
necessary and advisable that certain direet a�bloigtaorfrons of -the
time 0`5 nneceisaiv to cKcOrka mAl4hh. Rhea refunad�p as aforesaid
be
purchased out of the procoeds of Hhg sole of the Bonds gVthorlred
Herein• and
WHEREAS, In Bosworth, Incorporated, has offered to
purchase those bonds under the terms drnd candfllons herelnafTer
saT In the form at a ppurchase contract, NOW THEREFORE
THHEE CITY COUNCIL of THE CITY of LDMOWS, WASHING•
TON, DO DRDAIN as faflows:
sectlpn I. Deaf CapoclT The assessed valuation of the. taxable
❑r37 y w ps ascertained by the lost preceding
assessment for Lily purposes for the calendar year t9" is
sl,395,797 927, and the ON has outstanding general indebtedness
evidenced by Elmlfed fax general ohllWI" bonds in the principol -
amount of 37175000 irrevpcobte prevision far The payment end
redamatbn off which is mode Mervin, Incurred within the limit p} up
fa ;itteof i% of the vague of the taxable Property within the C.Ihy
permd far general munkipal Tarrrposes withatd a vote al e
qualified voters therein and no Vynilmned fax gcnergl peilpatlon
bonds issued pursuant to a vote of the qualified vo}erg et the Coy
and the amount of Indebtedness for which bands are gutharfeed
herein to be Issued is S21175 000.
Sedlorh 2. Auhharlietlen o{ Bonds. the Cfry shall borrow money
oopbff gmg�}-�Ullaarl-O��^eeiospTflob Ilmfkd tax general
9RRT, . S.0 on of r psenpaevidencing ,�raas�i top sine lfhett'i nods Wnaa4
lno orl nMarcthe h19 1,ya1iyofihe auhro^dlnQ� PEflterpyands of d ond redeem
oi
Per (}he "Refunding Pion") and to pay the costs Of Issuance ON
sole of the Bonds [}he "cash of Issuance' }}. The generoi fndebMd.
ness to be Incorr shall be within the IlmlT of uP M 5+� of 1 h of The
"lue of the taxable aroaerty within the rnv
be u
of the
navan of ssNIJ or any Infoprol mu"I re'}hg,Cg} wltthl^ a
mvfur�ry sholl be numbered seporofely in, the manner an
any additional desli nation as the Bond rRepp'151rar [caileeftyc
li5e01-0Qencles Of The Sfffe Of Washlnofnn b.r,nM Pn h
on me Pails at a
on Wlmber 1,
',ceding Match 1 t
mrcresr Or sne
followcas;fes ofia mature on Sapterhber 1 in vows and I
omountaturity as
Years Amount fnfere
RotesiT
153099� 2000,M 52S"3 710000 .s12kgo V
f
1995 235,000 S.95
food 250,0" 6.05
1997 - 265,000 6.15
1998 275,00ri &25
29S 00
logo 6.r
0 313,Opa 45
240
5ecfl 4,lsfrOtIon and Transfer of Bonds. The Bonds shall
be ,ss ffylPt�igiT3i€7E'dT3ir�dsTeL31f�p7TTc i and Interest
and recorded on books or records mainfOlned aY The Bond RegIS-
lrpr jibe "BOnd Register" ]. The Bond Register sholl cardaln the
name ono mafling dddress of the owner of each no and 'he
principal ampUfd and number of epCh of the Bonds had by each
Owner.
Bonds skwrehdered to the Bond Reglst-ar may be exchanged for
Bonds to Gov ouftwilled denofhsinafton of an equal aggregate
pile ,rl Wna1� pod of the %acne IMeresf rate and mafhl"
Bonds may De trmUnlTi+red Only if endorsed In the manner prov6ie
ft hereon and Hlrrbrldered Po the Bond Registrar. Af V exchange or
bander shall be W�y"wo cost to the owner or kgnsferee. The Bond
Registrar 0MI rq} be Obligated to exchange or transfer any Band
ffurin4 the Milled dogs preceding any principal pawnerrt or
redemption doh.-
l lotions. Po f Bands. 13o1N princitwf of and Interest an
snoflrt I Marley of the United States of
America. Inlst on a Bonds sho
fesll be ppaOid by thecks or shafts
malled On file interest payment date to ttr0 registered owned at
I
he addresses PPpearing on the Bond Register on the fghlenth dog .
Of the month fWecedlnpp the Ir1 rest payment date, Principe[ of the
Bonds shall be poyable upon presentation and surrender of the
Bonds b ,hhe reyisfi red owners at either of the prfntipgf offices of
the Bon Registrar at The option of the owners,
Sec l h b Rion l Redemption and Open Market Purchase of
a m ur no n a yy�eor1 uRinclusive,
s e Issued without the rlghT Or option of the ally To redeem
tthhe rla t affsd�ppiflrarroi ttheir
regcs�t me8onds mofuHY �lnfl on ore aMefrSepferyeis
bet 1, 1096, prior !a their stated Maturity drne5, as pa whole, or in
Part within one or rare mufurites selected by O
Iho City {and y laT
Wfthin a Imfhlrty I^ such manner as the Band Replstror shall'
di" M net, on ch 1, 1996, Or on any lnfpresf pgvm*nt Qp}e
fhoreofter, at pat plus accrued IMEresf to the date l xod &
rodemyyrf
Parts^ of ffllf princlW OITW. ^t of day Bond, in installments of
SS op0 pr oily I 1 multiple thereof, may 6e redeemed. it less
ihon ell a} yfk pr fltfppl arrhouM of qrW Bond IS redeemed upon
surcefldgr of 1f1r1f Band of ether nT tv n, "4-- ..«h...... �. —..