Ordinance 2449CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 2449
AN ORDINANCE of the City of Edmonds, Washington,
relating to financing the purchase of a computer;
providing for the issuance of a $100,425 par value
"Limited Tax General Obligation Bond, 1984," of the
City; and providing for the sale and delivery of such
bond to Rainier National Bank, Everett, Washington.
WHEREAS, the City of Edmonds, Washington (the "City"),
finds and declares that the City is in need of acquiring a
computer for general City use and the use of the City's combined
waterworks utility, and the estimated cost of acquiring a
computer capable of serving both the City and the combined
waterworks utility is $154,500; and
WHEREAS, the City's combined waterworks utility is to pay
$54,075 of such estimated cost, and the City does not have
available sufficient general funds to pay the balance of such
cost; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS. WASHINGTON, DO
ORDAIN as follows:
Section 1. The assessed valuation of the taxable property
of the City as ascertained by the last preceding assessment for
City purposes for the year 1983 for tax collection in the year
1984 is $1,039,876,856, and the City has outstanding general
indebtedness evidenced by limited tax general obligation bonds
of $3,430,000 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 has no outstanding unlimited tax general
obligation bonds, and the amount of indebtedness for which bonds
are herein authorized to be issued is $100,425.
Section 2. The City shall borrow money on the credit of
the City and issue a negotiable limited tax general obligation
bond evidencing such indebtedness in the amount of $100,425 to
provide funds to pay a part of the cost of acquiring a computer
and to pay the cost of issuing the bond. Such general indebted-
ness 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. The bond shall be called the "Limited Tax
General Obligation Bond, 1984," of the City (the "Bond"); shall,
be dated as of the date of its delivery to the purchaser
thereof; shall be in the denomination of $100,425; shall bear
interest payable annually on August 1 beginning August 1, 1985,
to maturity or earlier redemption of the Bond. Interest shall
accrue at a rate equal to 67% of Rainier National Bank's
announced prime rate, adjusted quarterly on November 1, 1984,
and thereafter on the first business day of each calendar
quarter (i.e. November 1, February 1, May 1 and November 1),
with any changes in that prime rate, computed on the basis of a
360-day year of twelve 30-day months. Principal shall be
payable in three annual installments of. $33,475 each, payable on
- 2 -
August 1, 1985, August 1, 1986, and August 1, 1.987. The City
Council declares and finds that the fixing of the above interest
rate index is in the best interests of the City. The last
installment will be paid only upon presentment of the Bond for
payment.
If any installment is not paid when due, the City shall be
obligated to pay interest at the then applicable percentage of
prime rate from and after that installment date until such
installment with interest is paid in full or until sufficient
money for such payment in full is on deposit in the "Limited Tax
General Obligation Equipment Bond Fund, 1984," of the City (the
"Bond Fund"), which is created and established in the office of
the City Finance Director, and the Bond has been called for
redemption. If the Bond is not paid in full on the last
installment date upon proper presentment, the City shall be
obligated to pay interest at Rainier National Bank's prime rate
until the Bond is paid in full or sufficient money for such
payment in full. is on deposit in the Bond Fund and the Bond has
been called for redemption in the manner set forth in Section 4.
The Bond shall be issued only in registered form as to both
principal and interest on books or records (the "Bond Register")
maintained by the City Finance Director., the Bond Registrar for
the Bond. Such Bond Register shall contain the name and mailing
address of the owner of the Bond. The Bond shall not be assign-
able or transferable by the registered purchaser.
- 3 -
Both principal of and interest on the Bond shall be payable
in lawful money of the United States of America at the Everett
Office of Rainier National Bank, the registered purchaser,
solely out of the Bond Fund. The Bond is a general obligation
of the City.
Section 4. The City reserves the right to prepay the
remaining principal of the Bond in whole or in part in inverse
order of installments at any time, at par plus accrued interest
on the principal being prepaid to the date of such prepayment.
Notice of any prepayment shall be given by registered or
certified mail deposited in the United States mail not less than
15 days prior to the date fixed for such prepayment to the
Everett Office of Rainier National Bank, or its successor.
Interest on any installment so prepaid shall cease on such
prepayment date upon payment of the prepayment amount into the
Bond Fund and, if a partial prepayment, mailing the same to the
owner of the Bond in the manner of interest payments.
Section 5. The Bond shall be typed on a lithographed form
In a form consistent with the provisions of this ordinance,
shall contain a payment schedule, shall be signed by the Mayor
and by the City Clerk, and shall have an impression of the seal
of the City thereon.
Only when such Bond shall bear thereon a Certificate of
Authentication in the following form, manually executed by the
Bond Registrar, shall it be valid or obligatory for any purpose
or entitled to the benefits of this ordinance:
- 4 -
CERTIFICATE OF AUTHENTICATION
This bond is the fully registered City of
Edmonds, Washington, Limited Tax General Obligation
Bond, 1984, described in the within mentioned
ordinance.
M
City Finance Director
Bond Registrar
Such Certificate of Authentication shall be conclusive evidence
that the Bond so authenticated has been duly executed, authen-
ticated and delivered hereunder and is entitled to the benefits
of this ordinance.
The Bond shall be a negotiable instrument to the extent
provided by RCW 62A.8-102 and 62A.8-105.
When payment has been made in full, the Bond shall be
surrendered by the registered owner to the Bond Registrar who
shall destroy the same one month after the date of receipt of
such Bond. Upon destruction, the Bond Registrar shall furnish
to the City a Certificate of Destruction and no further Bond
shall be executed or authenticated or issued in exchange or
substitution therefor.
Section 6. The City irrevocably pledges to include in its
budget and to levy taxes annually, within and as a part of the
tax levy permitted to cities without a vote of the people, on
all of the property in the City subject to taxation in an amount
sufficient, together with any other money available therefor, to
pay the principal of and interest on the Bond as the same shall
come due, and the full faith, credit and resources of the City
- 5 -
are pledged irrevocably for the annual levy and collection of
those taxes and the prompt payment of that principal and
interest.
Section 7. The City covenants that it will spend the
principal proceeds of the Bond with due diligence to completion
of the purposes specified in this ordinance and will make no use
of the proceeds of the Bond or other funds of. the City at any
time during the term of the Bond which will cause the Bond to be
an arbitrage bond within the meaning of Section 103(c) of the
United States Internal Revenue Code of 1954, as amended, and the
applicable regulations promulgated thereunder.
Section 8. The accrued interest received, if any, upon the
sale and delivery of the Bond shall be paid into the Bond Fund.
The principal proceeds received from the sale and delivery of
the Bond shall be paid into the appropriate fund of the City
established and used for the purposes specified in Section 2 of
this ordinance and to pay the costs of issuance and sale of the
Bond. Pending the expenditure of such principal proceeds, the
City may invest such proceeds temporarily in any legal invest-
ment and the investment earnings may be retained In that fund
and expended for the purpose of the Bonds. All taxes collected
for and allocated to the payment of the principal of and inter-
est on the Bond hereafter shall be deposited in the Bond Fund.
Section 10. In the event the City shall issue advance
refunding bonds pursuant to the laws of. the State of Washington,
- 6 -
or have money available from any other lawful source, to pay the
principal of and interest on the Bond or such portion thereof
included in the refunding plan as the same become due and pay-
able and to refund the then outstanding Bond and to pay the
costs of refunding, and shall have set aside irrevocably in a
special fund for and pledged to such payment and refunding,
money and/or direct obligations of the United States of America
or other legal investments sufficient in amount, together with
known earned income from the investments thereof, to make such
payments and to accomplish the refunding as scheduled (herein-
after called the "trust account"), and shall make irrevocable
provision for redemption of the Bond, then in that case all
right and interest of the owner of the Bond to be so retired or
refunded (hereafter called the "defeased Bond") in the covenants
of this ordinance and, except as hereinafter provided, in the
funds and accounts obligated to the payment of such Bond shall
thereafter cease and become void. Such owner shall have the
right thereafter to receive payment of the principal of and
interest on the defeased Bond from the trust account and, in the
event the funds in the trust account are not available for such
payment, shall have the right to receive payment of the princi-
pal of and interest on the defeased Bond from the funds and
accounts obligated to the payment of such Bond. Anything herein
to the contrary notwithstanding, the pledge of the full faith
and credit of the City to the payment of the Bond shall remain
- 7 -
in full force and effect after the establishing and full funding
of such trust account. Subject to the rights of the owner of
the Bond, the City may then apply any money in any other fund
or account established for the payment or redemption of the
defeased Bond to any lawful purposes as it shall determine.
Section 11. Rainier National Bank of Everett, Washington,
has submitted an offer to purchase the Bond at a price of par
plus accrued interest from the date of the Bond to the date of
its delivery to the purchaser, if there is a difference of such
dates, the City to furnish the printed or typed bond and the
approving legal opinion of Roberts & Shefelman, municipal bond
counsel of Seattle, Washington, at the City's expense. Bond
counsel shall not be required to review or express any opinion
concerning the completeness or accuracy of any official state-
ment, offering circular or other sales material issued or used
in connection with the Bond, and bond counsel's opinion shall
so state. The City Council, deeming that it is in the best
interest of the City that such offer be accepted, accepts the
same. The Bond shall be delivered to Rainier National Bank of
Seattle, Washington, immediately upon its execution and authen-
tication upon payment therefor in accordance with such offer.
Section 12. This ordinance shall take effect after its
passage and five days following its publication as required by
law.
- 8 -
PASSED by the City Council and APPROVED by the Mayor of the
City of Edmonds, Washington, at a regular open public meeting
thereof, this 7th day of August, 1984.
ATTEST:
City Clerk
FORM APPROVED:
City Atto n y
0313e
CITY OF EDMONDS, WASHINGTON
By
MayTr Pro Tem
FILED WITH THE CITY CLERK: August 3, 1984
PASSED BY THE CITY COUNCIL: August 7, 1984
POSTED: August 8, 1984
EFFECTIVE DATE: August 12, 1984
ORDINANCE: 2449
- 9 -
AFFIDAVIT OF POSTING ORDINANCE
STATE OF WASHINGTON )
) ss:
COUNTY OF SNOHOMISH )
JACQUELINE G. PARRETT
, being first duly sworn
on oath deposes and says that the is over the age of eighteen (18)
years and is competent to testify as to the matter stated herein.
There is no official newspaper or other newspaper printed and
published within the City. In accordance with RCW 35A.12.160, on
the 8th day of August , 1984, affiant posted true and
correct copies of the attached Ordinance No.2449 , passed by the
City Council on
the 7th day of
August
, 1984, at the
official posting
places for City
notices which
are the public
bulletin boards at the following locations:
Edmonds Civic Center
250 Fifth Avenue North
Edmonds, Washington 98020
Edmonds Public Library
Civic Center, 250 Fifth Avenue North
Edmonds, Washington 98020
Edmonds Branch of United States Post Office
201 Main Street
Edmonds, Washington 98020
DATED this 9th day of August' , 1984.
SUBSCRIBED AND SWORN to before me this 9th day of
August 19 84.
Qt�,�ry�l,bliK—c in and for the
State of Washington, residing
at ' Aa=4y\ z