HomeMy WebLinkAbout3380 Resolution RESOLUTION NO. 3 3 o 0
A RESOLUTION AUTHORIZING THE TRANSFER OF LAND, WELLS,
OTHER RELATED INFRASTRUCTURE AND AN OBLIGATION OF FUTURE
DEBT SERVICE PAYMENTS FROM THE WATERWORKS UTILITY TO THE
ECONOMIC DEVELOPMENT AND INFRASTRUCTURE FUND
WHEREAS, the City Council of the City of Pasco has found that it is in the best interest of the
City to transfer land, wells, other related infrastructure and an obligation of debt service from the
Waterworks Utility to the Economic Development and Infrastructure Fund and to provide for the
payment thereof as provided under the terms of the current bond covenants of the Waterworks Utility;
and
WHEREAS, the City covenants and agrees with the owner of each of the Parity Bonds that it
will not sell, lease, mortgage, or in any manner encumber or dispose of all the properties of the
Waterworks Utility unless provision is made for payment into the Bond Fund of an amount sufficient
either to defease all outstanding Parity Bonds or to pay the principal of and interest on all the
outstanding Parity Bonds in accordance with the terms, thereof; and further binds itself irrevocably not
to mortgage, sell, lease or in any way manner dispose of any part of the Waterworks Utility that is
used, useful and material to the operation of such utility unless provision is made for replacement
thereof or for payment into the Bond Fund of an amount which shall bear the same ratio to the amount
of outstanding Parity Bonds as the Net Revenue available for debt service for such bonds for the
twelve months preceding such sale, lease, encumbrance or disposal from the portion of the
Waterworks Utility so leased, encumbered or disposed of bears to the Net Revenue available for debt
service for such bonds from the entire Waterworks Utility for the same period; and, further, any such
money so paid into the Bond Fund shall be used to retire outstanding Parity Bonds at the earliest
possible date; NOW,THEREFORE,
THE CITY OF PASCO,WASHINGTON HEREBY RESOLVES AS FOLLOWS:
1. Transfer of Assets. The Financial Services Manager of the City of Pasco is hereby
authorized and directed to transfer land, wells and related infrastructure relating to the
Farm Facility from the Waterworks Utility to the Economic and Industrial Development
fund in exchange for $1,307,741. The Financial Services Manager is hereby further
authorized and directed to place these proceeds in the Waterworks Utility Bond Fund and
shall expend those funds to retire outstanding Parity Bonds at the earliest possible date.
2. Obligations. The Financial Services Manager of the City of Pasco is hereby authorized
and directed to repay $200,000 per year of debt service for 2012, 2013 and 2014 towards
the total 2010A bond payments as they come due.
PASSED by the City Council of the City of Pasco, Washington, this 19th day of March 2012.
Matt Watkins, Mayor
ATTES : i � APP AS TO FORM: f
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De a lark, City Clerk Leland B. Kerr, City Attorney