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HomeMy WebLinkAbout4639 Ordinance - 2023-2040 Revenue Bond for LID No. 151 Debt Service ORDINANCE NO. 4639 AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 151; FIXING THE TERMS OF THE LOCAL IMPROVEMENT DISTRICT NO. 151 BOND; PROVIDING FOR THE PURCHASE OF SUCH BOND BY THE CITY FROM FUNDS ON DEPOSIT 1N THE CITY'S EQUIPMENT REPLACEMENT FUND; AND FIXING THE TERM OF AND INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT NO. 151 ASSESSMENT 1NSTALLMENTS. THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON,DO ORDAIN as follows: Section 1. Recitals; LID Formation and Purpose. (a) Pursuant to Ordinance No. 4483, passed on March 2, 2020, and as corrected by Ordinance No. 4483A, the City Council of the City of Pasco, Washington (the "City"), created Local Improvement District No. 151 ("LID No. 151") to finance the cost of constructing a new sanitary sewer trunk line and other improvements in the City's Northwest (Broadmoor) area (the "Project"). (b) The total amount of the assessment roll in LID No. 151 was $3,241,424.12, as confirmed by Ordinance No.4612,passed on October 3,2022.The 30-day period for making cash payments of assessments without interest expired on November 16, 2022, and $3,226 of assessments have been paid. The balance of assessments unpaid on the assessment roll for LID No. 151 is $3,238,198 (rounded to the nearest dollar). (c) The City has determined to issue its Local Improvement District No. 151 Bond(the `Bond") in a total principal amount of$3,238,198 to finance costs of the Project not paid from assessments in LID No. 151 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. FG: 100882096.2 (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 funds available in the City's Equipment Replacement Fund that it otherwise would regularly invest but instead are used to make an interfund loan to LID No. 151, evidenced by the Bond,to finance costs of the Project not paid from assessments in LID No. 151. 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 Equipment Replacement 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. 151 a special local improvement district fund to be known and designated as Local Improvement Fund,District No. 151 (the`Bond Fund"). All money presently on hand representing collections pertaining to installments of assessments and interest thereon in LID No. 151 shall be transferred to and deposited in the Bond Fund, and all collections pertaining to assessments on the assessment roll of LID No. 151 when hereafter received shall be deposited in the Bond Fund to pay principal of and interest on the Bond. Section 3. Authorization and Description of the Bond. The Bond shall be issued in the total principal amount of$3,238,198, being the total amount on the assessment roll of LID No. 151 remaining uncollected as of the date of this ordinance. The Bond shall be dated its date of delivery; shall mature on February 19, 2040; shall be in fully registered form; and shall be numbered R-1. The Bond shall bear interest at the rate of 5.25% [6%estimated in Ordinance No. 4612] per annum computed on the basis of a 360-day year of twelve 30-day months, payable annually on each October 16,beginning October 16, 2023. Section 4. A�pointment of Bond Re„�istrar: Re�istration and Transfer of Bond. The Finance Director of the City is appointed Bond Registrar for the Bond. The Bond shall be issued Page FG: 100882096.2 to the City's Equipment Replacement 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 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. Pavment 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. Prepavment 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 Equipment Replacement 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. Fixin� the Term of and Interest Rate on Assessments. Payments of assessments in LID No. 151 shall be paid in fifteen (15) equal annual installments of principal, together with interest due on the unpaid balance. The interest rate on the installments and Page FG: 100882096.2 delinquent payments of LID No. 151 is fixed at the rate of 5.25% [6%estimated in Ordinance No. 4429]per annum.Each delinquent installment of assessments is subject,at the time of delinquency, to a 5% penalty levied on both principal and 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. Consolidation.For the purpose of issuing bonds only,the City Council may authorize the establishment of a consolidated local improvement district, which local improvements within such consolidated district need not be adjoining,vicinal or neighboring,and provide for the moneys received from the installment payment of the principal of and interest on assessments levied within LID No. 151 to be deposited in such consolidated local improvement district bond redemption fund to be used to redeem outstanding consolidated local improvement district bonds. Section 10. Effective Date of Ordinance. This ardinance 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, of the City of Pasco, Washington, on this 6th day of February, 2023, and signed in authentication of its passage this 6th day of February, 2023. CITY OF �Z'O;WASHINGTON Blanch arajas,Mayor ATTEST: APPROV�-D AS TO )RM: ��o� � � Debra Barham, City Clerk Kerr Fer aw, PLLC, City Attorney Published: �f�I'i o'��� 202 Page FG: 100882096.2