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HomeMy WebLinkAbout4140 OrdinanceORDINANCE NO. q114D AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 148 FIXING THE AMOUNT, FORM, DATE, INTEREST RATE AND MATURITY OF THE LOCAL IMPROVEMENT DISTRICT NO. 148 INSTALLMENT NOTE; PROVIDING FOR THE PURCHASE OF SUCH NOTE BY THE CITY FROM FUNDS ON DEPOSIT IN THE BOULEVARD MAINTENANCE FUND AND FIXING THE INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT NO. 148 ASSESSMENT INSTALLMENTS WHEREAS, pursuant to RCW 35.45.150, the City Council of the City of Pasco, Washington (the "City "), has determined to issue its Local Improvement District No. 148 Installment Note in the aggregate principal amount of $177,964.32 and finds it is in the best interest of the City that such note be purchased by the City from funds on deposit in the Boulevard Maintenance Fund of the City and available for investment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. AUTHORIZATION AND DESCRIPTION OF NOTE. The total amount of the assessment roll in Local Improvement District No. 148 in the City of Pasco, Washington (the "City "), created under Ordinance No. 4125 which passed November 4, 2013 was $258,437.48. The 30 -day period for making cash payments of assessments without interest in the District expired on December 31, 2013 and the total amount of assessments paid to date is $80,470.16 leaving a balance of assessments unpaid on the assessment roll in the sum of $177,964.32. The Local Improvement District No. 148 Installment Note (the "Note ") shall, therefore, be issued pursuant to RCW 35.45.150 as a single installment note in the total principal sum of $177,964.32. The Note shall be dated February 1, 2014 shall mature on February 1, 2024 shall be in fully registered form; and shall be numbered R -2. The Note shall bear interest at the rate of 4.0% per annum (computed on the basis of a 360 -day year of twelve 30 -day months), payable annually on each February 1, beginning February 1, 2015. Section 2. APPOINTMENT OF NOTE REGISTRAR; REGISTRATION AND TRANSFER OF NOTE. The Financial Services Manager of the City is appointed Note Registrar for the Note. The Note shall be issued to the City's Boulevard Maintenance Fund (the "Registered Owner ") only in the registered form as to both principal and interest and shall be recorded on books or records maintained by the Note Registrar (the "Note Register "). The Note Register shall contain the name and mailing address of the Registered Owner. The Note may not be assigned or transferred by the Registered Owner. When the note has been paid in full, both principal and interest, it shall be surrendered by the Registered Owner to the Note Registrar, who shall cancel the Note. The Note Registrar shall keep, or cause to be kept, at her office, sufficient books for the registration of the Note. The Note Registrar is authorized, on behalf of the City, to authenticate and deliver the note in accordance with the provisions of the Note and this ordinance, to serve as the City's paying agent for the Note and to carry out all of the Note Registrar's powers and duties under this ordinance. The Note Registrar shall be responsible for the representations contained in the note registrar's Certificate of Authentication on the Note. Section 3. PAYMENT OF NOTE. Both principal of and interest on the Note shall be payable solely out of the Local Improvement Fund, District No. 148 (the "Note Fund "), and from the Local Improvement Guaranty Fund of the City, and shall be payable in lawful money of the United States of America. Interest on the Note, and any prepaid principal thereof, shall be paid by check, draft or interfund transfer on the interest payment date to the Registered Owner at the address appearing on the Note Register. The final installment of principal of and interest on the Note at maturity or prior repayment is payable at the office of the Note Registrar in Pasco, Washington, upon presentation and surrender of the Note. Section 4. PREPAYMENT PROVISIONS. The City reserves the right to prepay principal of the Note prior to its stated maturity on any interest payment date, at par plus accrued interest to the date fixed for prepayment, whenever there shall be sufficient money in the Note Fund to prepay the principal of the Note over and above the amount required for the payment of the interest then due on the Note. No notice of prepayment to the Registered owner is required. Interest on the principal of the Note so prepaid shall cease to accrue on the date of such prepayment. Section 5. PLEDGE OF ASSESSMENT PAYMENTS. Assessments collected in Local Improvement District No. 148 together with interest and penalties, if any, are pledged to the payment of the Note, and shall be deposited in the Note Fund. The Note is payable solely out of the Note Fund and the Local Improvement Guaranty Fund of the City in the manner provided by law and constitutes a lien and charge upon such Note Fund and Local Improvement Guaranty Fund. The Note is not a general obligation of the City. Section 6. FAILURE TO REDEEM NOTE. If the Note is not redeemed when properly presented at its maturity or prepayment date, the City shall be obligated to pay interest on the Note at the same rate provided therein from and after its maturity or prepayment date until the Note, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Note Fund and the note has been called for payment by giving notice of that call to the Registered Owner. Section 7. FORM AND EXECUTION OF NOTE. The Note shall be printed, lithographed or typed on good bond paper in a form consistent with the provisions of this ordinance and state law, shall be signed by the Mayor and the 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 the Note bearing a Certificate of Authentication in the following form, manually signed by the Note Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. CERTIFICATE OF AUTHENTICATION This Note is the fully registered City of Pasco, Washington, Local Improvement District No. 148 Installment Note described in the Note Ordinance. 4xv, Financial S rvices Manager Note Registrar The authorized signing of the Certificate of Authentication shall be conclusive evidence that the Note has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. Section 8. PURCHASE AND SALE OF NOTE. The City will purchase the Note from funds available for investment on deposit in the Boulevard Maintenance Fund of the City at a price of par plus accrued interest from the date of the Note to the date of its transfer to the City. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Note and for the proper application and use of the proceeds of the sale thereof. Section 9. FIXING INTEREST RATE ON ASSESSMENTS. The interest rate on the installments and delinquent payments of the special assessments in Local Improvement District No. 148 are revised and fixed at the rates of 4.5% per annum and 8.00% per annum, respectively. Section 10. EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect February 1, 2014. Adopted by the City Council of the City of Pasco, on this 21 st day of January, 2014. City of Pasco: Matt Watkins, Mayor Attest: App r ved s To Form: City Clerk Leland B. Kerr, City Attorney ��v No. R -2 $177,964.32 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PASCO LOCAL IMPROVEMENT DISTRICT NO. 148 INSTALLMENT NOTE Interest Rate: 4.0% Maturity Date: 2/1/2024 Registered Owner: CITY OF PASCO BOULEVARD MAINTENANCE FUND Principal Amount: $177,964.32 N.B. The laws of the State of Washington under which this Note is issued contain the following section (RCW 35.45.070): "Neither the holder nor owner of any bond, interest coupon, warrant, or other short -term obligation issued against a local improvement fund shall have any claim therefore against the city or town by which it is issued, except for payment from the special assessments made for the improvement for which the bond or warrant was issued and except also for payment from the local improvement guaranty fund of the city or town as to bonds issued after the creation of a local improvement guaranty fund of that city or town. The city or town shall not be liable to the holder or owner of any bond, interest coupon, warrant, or other short -term obligation for any loss to the local improvement guaranty fund occurring in the lawful operation thereof. A copy of the foregoing part of this section shall be plainly written, printed or en graved on each bond. " The CITY OF PASCO, WASHINGTON (the "City "), a municipal corporation of the State of Washington, promises to pay to the Registered Owner identified above on the Maturity Date indentified above the Principal Amount identified above and to pay interest (computed on the basis of a 360 -day year of twelve 30 -day months) thereon from the date of this Note or from the most recent interest payment date to which interest has been paid at the Interest Rate per annum identified above, payable annually beginning September 25, 2014 to the maturity or earlier prepayment of this Note. If this Note is not redeemed when property presented at its maturity date, then interest shall continue to accrue at the Interest Rate identified above until this Note, both principal and interest, is paid in full or until sufficient money for its payment in full has been deposited in Local Improvement Fund, District No. 148 (the "Note Fund "), and this Note has been called for payment. This Note, designated the Local Improvement District No. 148 Installment Note, is issued by the City in fully registered form pursuant to and in full compliance with the Constitution and laws of the State of Washington and ordinances of the City, including Ordinance No. y q (the "Note Ordinance "). This Note is issued for the purpose of providing the funds necessary to pay the costs of constructing the improvements within Local Improvement District No. 148 of the City as ordered to be carried out by Ordinance No- of the City. The City has reserved the right to prepay principal of this Note prior to its stated maturity date on any interest payment date, at par plus accrued interest to the date fixed for prepayment, whenever there is sufficient money in the Note Fund to prepay the principal of the Note over and above the amount required for the payment of the interest then due on the unpaid Note. No notice of prepayment to the Registered Owner is required. Interest on the principal of this Note so prepaid shall cease to accrue on the date of such prepayment. Both principal of and interest on this Note are payable in lawful money of the United States of America. Interest on this Note, and any prepaid principal thereon, shall be paid by check, draft or interfund transfer on the interest payment date to the Registered Owner at the address appearing on the registration books of the City (the "Note Register ") maintained by the Finance Services Manager of the City (the "Note Registrar "). The final installment of principal and interest on the Note at maturity or prior repayment is payable at the office of the Note Registrar in Pasco, Washington, upon presentation and surrender of this Note. The funds deposited in the Note Fund and the Local Improvement Guaranty Fund of the City have been and are pledged irrevocably to the payment of the principal of and interest on this Note. This note is not a general obligation of the City. This Note shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon has been signed by the Note Registrar. The principal of and interest on this note shall be paid only to the Registered Owner and to no other person or entity, and this Note may not be assigned or transferred. The City and the Note Registrar may deem and treat the Registered Owner of this Note as its absolute owner for the purpose of receiving payment of principal and interest and for all other purposes, and neither the City nor the Note registrar shall be affected by any notice to the contrary. As used herein, Registered Owner means the person or entity named as Registered Owner of this Note on the first page hereof and on the Note Register. It is certified, recited and declared that all acts, conditions and things required to be done precedent to and in the levying of any assessments and the issuance of this Note have been done properly, have happened and have been performed in regular and due form, as required by law, and that this Note has not been issued in an amount in excess of the cost of improvements in Local Improvement District No. 148. IN WITNESS WHEREOF, the City has caused this Note effective February 1, 2014 to be executed on behalf of the City by its Mayor and City Clerk, and the seal of the City to be impressed hereon, this 21St day of January, 2014. CITY OFF�PASCO, WASHINGTON By �ZlkleOV5;�' Mayor (SEAL) B Y r] City Clerk Date of Authentication: CERTIFICATE OF AUTHENTICATION This Note is the fully registered City of Pasco, Washington, Local Improvement District No. 148 Installment Note described in the Note Ordinance. By Financial Services Manager, Note Registrar