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HomeMy WebLinkAbout4452 OrdinanceORDINANCE NO. 4ll s~ AN ORDINANCE of the City of Pasco, Washington, relating to Local Improvement District No. 150; fixing the terms of the Local Improvement District No. 150 Bond; providing for the purchase of such Bond by the City from funds on deposit in the City's General Fund; and fixing the term of and interest rate on Local Improvement District No. 150 assessment installments. THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN as follows: Section 1. Recitals ; LID Formation and Purp ose. (a) Pursuant to Ordinance No. 4393 passed on August 20, 2018, the City Council of the City of Pasco, Washington (the "City"), created Local Improvement District No. 150 ("LID No. 150") to finance the cost of constructing Chapel Hill Boulevard roadway improvements (the "Project"). (b) The total amount of the assessment roll in LID No. 150 was $5,254,801, as confirmed by Ordinance No. 4429 (April 1, 2019). The 30-day period for making cash payments of assessments without interest expired on May 28, 2019, and $3,187,211 of assessments have been paid. The balance of assessments unpaid on the assessment roll for LID No. 150 is $2,067,590 (rounded to the nearest dollar). ( c) The City has determined to issue its Local Improvement District No. 150 Bond (the "Bond") in a total principal amount of $2,067,590 to finance costs of the Project not paid from assessments in LID No. 150 that have been paid. (d) RCW 39.59.040(1) provides that any local government in the state of Washington may invest in bonds of any local government in the state of Washington. (e) The City desires to obtain an investment return, comparable to the tax-exempt interest rate that the Bond would bear if sold in the municipal bond market, on the portion of the 53495391 .2 -1- funds available in the City's General Fund that it otherwise would regularly invest but instead are used to make an interfund loan to LID No. 150, evidenced by the Bond, to finance costs of the Project not paid from assessments in LID No. 150. The City finds it in the best interest of the City that the Bond be purchased by the City from funds on deposit in the City's General Fund and available for investment. Section 2. Bond Fund. There is established in the office of the Finance Director (the "Finance Director") for Local Improvement District No. 150 a special local improvement district fund to be known and designated as Local Improvement Fund, District No. 150 (the "Bond Fund"). All money presently on hand representing collections pertaining to installments of assessments and interest thereon in LID No. 150 shall be transferred to and deposited in the Bond Fund, and all collections pertaining to assessments on the assessment roll of LID No. 150 when hereafter received shall be deposited in the Bond Fund to pay principal of and interest on the Bond. Section 3. Authorization and Descri ption of the Bond. The Bond shall be issued in the total principal amount of$2,067,590, being the total amount on the assessment roll of LID No. 150 remaining uncollected as of the date of this ordinance. The Bond shall be dated its date of delivery; shall mature on September 15, 2031; shall be in fully registered form; and shall be numbered R-1. The Bond shall bear interest at the rate of 3.9% per annum computed on the basis of a 360-day year of twelve 30-day months, payable annually on each April 28, beginning April 28, 2020. Section 4. Appointment of Bond Regi strar; Registration and Transfer of Bond. The Finance Director of the City is appointed Bond Registrar for the Bond. The Bond shall be issued to the City's General Fund (the "Registered Owner") only in registered form as to both principal and interest and shall be 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 Registered 53495391.2 -2- Owner. The Bond may not be assigned or transferred by the Registered Owner. When the Bond has been paid in full, both principal and interest, it shall be surrendered by the Registered Owner to the Bond Registrar, who shall cancel the Bond. Section 5. Paym ent of the Bond. Both principal of and interest on the Bond shall be payable solely out of the Bond Fund, and from the Local Improvement Guaranty Fund of the City, consistent with chapter 35.54 RCW. Section 6. Prepa ym ent Provisions. The City reserves the right to prepay principal of the Bond prior to its stated maturity on any date, at par plus accrued interest to the date fixed for prepayment, whenever there shall be sufficient money in the Bond Fund to prepay the principal of the Bond over and above the amount required for the payment of the interest then due on the Bond. Interest on the principal of the Bond so prepaid shall cease to accrue on the date of such prepayment. Section 7. Purchase and Sale of the Bond. The City shall purchase the Bond at a price of par with funds on deposit in the City's General Fund that the Finance Director determines are available for that purpose. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Bond and for the proper application and use of the proceeds of the sale thereof. Section 8. Fixing the Term of and Interest Rate on Assessments. Payments of assessments in LID No. 150 maybe paid in ten (10) equal annual installments of principal, together with interest due on the unpaid balance. The interest rate on the installments and delinquent payments of LID No. 150 is fjxed at the rate of3.9% per annum. Each delinquent installment of assessments is subject, at the time of delinquency, to a 5% penalty levied on both principal and 53495391.2 -3- interest due on that installment, and all delinquent installments also will be charged interest at the rate of 8% per annum as set forth in Pasco City Code 14.05.050. · Section 9. Effective Date of Ordinance. This ordinance shall be in full force and effect from and after five days from the date of its passage and publication as provided by law. Passed by the City Council this 3rd day of September, 2019, and signed in authentication of its passage this 3rd day of September, 2019. CITY OF PASCO, WASHINGTON ~~~ By ___________ _ Matt Watkins, Mayor ATTEST: =~tyClerk APPROVED AS TO FORM: ~--- Published: 'f /~/ 2ol~ 53495391.2 -4- CERTIFICATE I, the undersigned, the duly appointed, qualified and acting Clerk of the City of Pasco, Washington, and keeper of the records of the City Council (herein called the "Council"), DO HEREBY CERTIFY: 1. That the attached Ordinance No. t/ 4 52-(herein called the "Ordinance") is a true and correct copy of an ordinance of the Council, as finally passed at a regular meeting of the Council held on the 3rd day of September, 2019, 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 legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pasco, Washington, as ofthis 3rd day of September, 2019. City Clerk (SEAL) 53495391.2