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HomeMy WebLinkAbout4099 ORDINANCE NO. ~ AN ORDINANCE of the City of Bremerton, Washington, authorizing the issuance of tax antici- pation notes for the purpose of paying City expenses pending the receipt of general City taxes; creating a note redemption fund; and providing for the sale of those notes to Prudential-Bache Securities Inc. of Seattle, Washington. WHEREAS, the City Council of the City of Bremerton, Washington (the "City"), finds that the periodic collections of sales, excise and general ad valorem taxes and other revenues in 1987 will not be sufficient to meet necessary City expenses as they are incurred in 1987, and that it is in the best interest of the City to contract short-term debt pursuant to Chapter 39.50 RCW to pay those expenses, such debt to be paid on February 26, 1988, from taxes and other revenue collected by the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BREMERTON, WASHINGTON, 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 1986 for tax collection in the year 1987 is $873,737,016, and the City has $205,000 of outstanding general indebtedness evidenced by limited tax general obligation bonds and installment purchase contracts 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 unlimited tax gen- eral obligation bonds in the principal amount of $2,125,000 within the limit of up to 2-1/2% of the value of the taxable property within the City for general capital purposes issued pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which the notes are herein authorized to be issued is $1,500,000. Section 2. There is created in the office of the City Treasurer a special fund called the Tax Anticipation Note Fund, 1987 (the "Note Fund"). Pending the collection of sales, excise and general ad valorem property taxes to be levied for collec- tion in 1987 and other revenues anticipated to be received in 1987, the City shall issue and sell its $1,500,000 tax antici- pation notes to be designated Tax Anticipation Notes, 1987 (the "Notes"). The Notes shall be numbered from 1 upwards consecu- tively; shall be in the denomination of $5,000 or any integral multiple thereof; shall be dated February 27, 1987; shall mature on February 26, 1988; and shall bear interest at the rate of 4.3% per annum (computed on the basis of twelve 30-day months), payable at maturity, with full obligation on the part of the City to pay interest at the Note rate from and after maturity until the Notes with interest are paid in full or until suffi- cient money for such payment in full is on deposit in the Note Fund and the Notes have been called for redemption. The City Council declares and finds that the fixing of the above interest rate is in the best interests of the City. The Notes shall be general obligations of the City. The Notes are not subject to redemption prior to their maturity date. Both principal of and interest on the Notes shall be pay- able in lawful money of the United States of America at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. Section 3. The City irrevocably pledges to budget and levy taxes within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City on all of the property in the City subject to taxation in an amount sufficient, together with other money legally available and to be used therefor, to pay the principal of and interest on the - 2 - Notes at maturity. The City further irrevocably pledges to set aside and deposit into the Note Fund from such taxes and other money on or before February 26, 1988, an amount sufficient to redeem the Notes in full, both principal and interest, on February 26, 1988. The full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on the Notes. Section 4. The Notes shall be typed or multicopied on good bond paper in a form consistent with the provisions of this ordinance and State law, shall be signed by the manual signature of the City Treasurer, and shall have the seal of the City impressed thereon. Section 5. The Notes shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 6. The principal proceeds received from the sale of the Notes shall be deposited in the General Fund of the City heretofore created and used solely for the purpose of paying the cash flow deficits in the City's General Fund and Street Fund resulting from budgeted expenditures, and any interest received from the deposit or investment of such proceeds shall be applied and used solely for such purposes or for deposit in the Note Fund. Any proceeds resulting from authorized temporary invest- ments of the Note Fund or such investment proceeds of any of the taxes hereafter levied for payment of the Notes and placed in the Note Fund shall be used for the sole purpose of retiring the Notes or paying the interest thereon. Section 7. The City Council finds that the principal amount of the Notes does not exceed the City's maximum antici- pated cumulative cash flow deficit in the General and Street Funds (as that concept is defined in Income Tax Regulations Section 1.103-14(c) promulgated under the Internal Revenue Code -- 3 -- of 1986 (the "1986 Code") to be financed in 1987 from the City's sales, excise and general ad valorem property taxes and other revenues to be collected in 1987. Section 8. The City covenants that it will neither make nor permit any use of proceeds of the Notes or other funds of the City at any time during the term of the Notes to be arbi- trage bonds within the meaning of Section 148 of the 1986 Code and applicable regulations promulgated thereunder. The City further covenants that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifi- cations may not be relied upon. Section 9. The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power; (b) no Note which is part of this issue of Notes is a "private activity bond" within the meaning of Section 141 of the 1986 Code; (c) at least 95 percent of the net proceeds of the Notes will be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); (d) the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all entities subordinate to the City (including any entity which the City controls or which derives its authority to issue tax-exempt obligations from the City) during the current calendar year is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt obligations, including the Notes, designated as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the 1986 Code or any prede- cessor provision of federal law by the City during the calendar year in which the Notes are issued does not exceed $10,000,000. The City therefore certifies that it is an issuer which qualifies for the small governmental issuer arbitrage rebate exemption under Section 148(f)(4)(C) of the 1986 Code and desig- nates the Notes as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the 1986 Code. Section 10. Prudential-Bache Securities Inc. of Seattle, Washington, has submitted a written offer to purchase the Notes at a price of $99.55 per each $100.00 par value, the City to furnish the typewritten Notes and the approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle, Washington. Bond counsel shall not be required to review or express any opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material relating to the issuance of the Notes or otherwise used in connection with the Notes and bond counsel's opinion shall so state. The City Council, being of the opinion that it is in the best interests of the City to accept such offer, accepts the same. The Notes, therefore, immediately upon their execution shall be delivered to the purchaser thereof upon payment for the Notes in accordance with such offer. APPROVED by the City Council on the first reading this llth day of February, 1987. PASSED by the City Council of the City of Bremerton, signed by the Mayor and attested by the City Clerk in authentication of such passage this 24th day of February, 1987, at a special meeting thereof, notice having been given as required by law. City Clerk APPRO~rE~AS~FORM:~, City Attorney 1352b I, KATHLEEN McCLUSKEY, City Clerk of the City of Bremerton, Washington, certify that the attached copy of Ordinance No. ~ . is a true and correct copy of the original ordinance passed on the 24th day of February, 1987, as that ordinance appears on the Minute Book of the City. DATED this ~q day of ~~ _, 1987. ~THLEEN McCLUSKEY] City Clerk 1352b