HomeMy WebLinkAbout3039CITY OF KENT, WASHINGTON
ORDINANCE NO. �I
AN ORDINANCE of the City of Kent, Washington,
relating to contracting indebtedness; providing for the
issuance of $10,575,000 par value of Limited Tax General
Obligation Refunding Bonds, 1992, of the City to provide
funds with which to pay the cost of advance refunding the
callable portions of the City's outstanding Limited Tax
General Obligation Refunding Bonds, 1985, Limited Tax
General Obligation Refunding Bonds, 1986, and Limited Tax
General Obligation Bonds, 1987, and the costs of issuance
and sale of the bonds; fixing the date, form, maturities,
interest rates, terms and covenants of the bonds;
establishing a bond redemption fund; providing for and
authorizing the purchase of certain obligations out of
the proceeds of the sale of the bonds herein authorized
and for the use and application of the money derived from
those investments; authorizing the execution of an
agreement with Puget Sound National Bank, as refunding
trustee; and approving the sale and providing for the
delivery of the bonds to Lehman Brothers Division of
Shearson Lehman Brothers Inc. of Seattle, Washington.
WHEREAS, pursuant to Ordinance No. 2569, passed June 17, 1985,
the City of Kent, Washington (the "City"), heretofore issued its
Limited Tax General Obligation Refunding Bonds, 1985 (the 111985
Bonds"), in the original principal amount of $2,025,000, and by
Section 2 of that ordinance the City reserved the right and option
to redeem the 1985 Bonds maturing on or after May 1, 1996, on
May 1, 1995, and on any interest payment date thereafter, at par
plus accrued interest to the date fixed for redemption; and
WHEREAS, there are presently outstanding $1,035,000 principal
amount of 1985 Bonds maturing on May 1 of the years 1996 through
2001, inclusive, bearing interest at various rates from 8.40% to
9.00% (the "Refunded 1985 Bonds"); and
WHEREAS, pursuant to Ordinance No. 2632, passed May 19, 1986,
the City heretofore issued its Limited Tax General Obligation
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Refunding Bonds, 1986 (the 111986 Bonds"), in the original principal
amount of $9,608,000, and by Section 3 of that ordinance the City
reserved the right and option to redeem the 1986 Bonds maturing on
or after December 1, 1996, on December 1, 1995, and on any interest
payment date thereafter, at par plus accrued interest to the date
fixed for redemption; and
WHEREAS, there are presently outstanding $6,195,000 principal
amount of 1986 Bonds maturing on December 1 of the years 1996
through 2004, inclusive, bearing interest at various rates from
7.20% to 7.70% (the "Refunded 1986 Bonds"); and
WHEREAS, pursuant to Ordinance No. 2739, passed August 18,
1987, the City heretofore issued its Limited Tax General Obligation
Bonds, 1987 (the 111987 Bonds"), in the original principal amount of
$3,440,000, and by Section 4 of that ordinance the City reserved
the right and option to redeem the 1987 Bonds maturing on or after
December 1, 1998, on December 1, 1997, and on any interest payment
date thereafter, at par plus accrued interest to the date fixed for
redemption; and
WHEREAS, there are presently outstanding $2,325,000 principal
amount of 1987 Bonds maturing on December 1 of the years 1998
through 2007, inclusive, bearing interest at various rates from
7.10% to 7.90% (the "Refunded 1987 Bonds"); and
WHEREAS, the City Council has determined that the Refunded
1985 Bonds, Refunded 1986 Bonds and Refunded 1987 Bonds
(collectively, the "Refunded Bonds") may be refunded by the
issuance and sale of the general obligation bonds authorized herein
(the "Bonds") so that a substantial saving will be effected by the
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difference between the principal and interest costs over the life
of the Bonds and the principal and interest costs over the life of
the outstanding Refunded Bonds but for such refunding, which
refunding will be effected by
(a) The issuance of the Bonds;
(b) The payment of the interest on the Refunded
1985 Bonds when due up to and including May 1, 1995, and,
on May 1, 1995, the call, payment and redemption of all
the Refunded 1985 Bonds at a price of par;
(c) The payment of the interest on the Refunded
1986 Bonds when due up to and including December 1, 1995,
and, on December 1, 1995, the call, payment and
redemption of all the Refunded 1986 Bonds at a price of
par; and
(d) The payment of the interest on the Refunded
1987 Bonds when due up to and including December 1, 1997,
and, on December 1, 1997, the call, payment and
redemption of all the Refunded 1987 Bonds at a price of
par;
and
WHEREAS, in order to effect that refunding in the manner that
will be most advantageous to the City and its taxpayers, the City
Council finds it necessary and advisable that certain acquired
obligations (hereinafter defined) bearing interest and maturing at
the time or times necessary to accomplish the refunding as
aforesaid be purchased out of the proceeds of the sale of the
Bonds; and
WHEREAS, the City Council has determined that it is necessary
to issue and sell $10,575,000 par value of limited tax general
obligation refunding bonds to provide the funds necessary to
advance refund the Refunded Bonds and to pay the costs of issuance
and sale of the Bonds, and Lehman Brothers Division of Shearson
Lehman Brothers Inc. ("Lehman Brothers") has offered to purchase
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those Bonds under the terms and conditions hereinafter set forth;
NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES ORDAIN
as follows:
Section 1. Debt Capacity. The assessed valuation of the
taxable property within the City as ascertained by the last
preceding assessment for City purposes for the calendar year 1992
is $3,522,510,340, and the City has outstanding general
indebtedness evidenced by (a) limited tax general obligation bonds
and conditional sales contracts in the principal amount of
$6,589,500 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 (b) unlimited tax general obligation bonds in the principal
amount of $17,645,000 incurred within the limit of up to 2-1/2% of
the value of the taxable property within the City for capital
purposes only, and the amount of indebtedness for which the Bonds
are authorized herein to be issued is $10,575,000.
Section 2. Authorization of Bonds. The City shall borrow
money on the credit of the City and issue negotiable limited tax
general obligation refunding bonds evidencing that indebtedness in
the amount of $10,575,000 for the purpose of providing the funds
required to
(a) pay the interest on the Refunded 1985 Bonds
when due up to and including May 1, 1995, and, on May 1,
1995, call, pay and redeem all the Refunded 1985 Bonds at
a price of par;
(b) pay the interest on the Refunded 1986 Bonds
when due up to and including December 1, 1995, and, on
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December 1, 1995, call, pay and redeem all the Refunded
1986 Bonds at a price of par; and
(c) pay the interest on the Refunded 1987 Bonds
when due up to and including December 1, 1997, and, on
December 1, 1997, call, pay and redeem all the Refunded
1987 Bonds at a price of par;
(collectively, the "Refunding Plan"), and to pay the costs of
issuance and sale of the Bonds. The general indebtedness to be
incurred shall be 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.
Section 3. Description of Bonds. The bonds shall be called
Limited Tax General obligation Refunding Bonds, 1992, of the City
(the "Bonds"); shall be in the aggregate principal amount of
$10,575,000; shall be dated May 1, 1992; shall be in the
denomination of $5,000 or any integral multiple thereof within a
single maturity; shall be numbered separately in the manner and
with any additional designation as the Bond Registrar
(collectively, the fiscal agencies of the State of Washington
located in Seattle, Washington, and New York, New York) deems
necessary for purposes of identification; shall bear interest at
the rates set forth below (computed on the basis of a 360 -day year
of twelve 30 -day months), payable on December 1, 1992, and
semiannually thereafter on each succeeding June 1 and December 1;
and shall mature on December 1 in years and amounts and bear
interest at the rates per annum as follows:
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Maturity
Principal
Interest
Years
Amounts
Rates
1992
$ 40,000
3.25%
1993
105,000
3.90
1994
110,000
4.80
1995
115,000
5.10
1996
765,000
5.25
1997
795,000
5.50
1998
1,005,000
5.70
1999
1,065,000
5.80
2000
1,135,000
6.00
2001
1,190,000
6.10
2002
1,055,000
6.20
2003
1,115,000
6.25
2004
1,180,000
6.35
2005
280,000
6.50
2006
300,000
6.50
2007
320,000
6.60
Section 4. Registration and Transfer of Bonds. The Bonds
shall be issued only in registered form as to both principal and
interest and 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 owner of each Bond and the
principal amount and number of each of the Bonds held by each
Bonds surrendered to the Bond Registrar may be exchanged for
Bonds in any authorized denomination of an equal aggregate
principal amount and of the same interest rate and maturity. Bonds
may be transferred only if endorsed in the manner provided thereon
and surrendered to the Bond Registrar. Any exchange or transfer
shall be without cost to the owner or transferee. The Bond
Registrar shall not be obligated to exchange or transfer any Bond
during the fifteen days preceding any principal payment or
redemption date.
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Section 5. Payment of Bonds. Both principal of and interest
on the Bonds shall be payable in lawful money of the United States
of America. Interest on the Bonds shall be paid by checks or
drafts of the Bond Registrar mailed on the interest payment date to
the registered owners at the addresses appearing on the Bond
Register on the fifteenth day of the month preceding the interest
payment date. Principal of the Bonds shall be payable upon
presentation and surrender of the Bonds by the registered owners at
either of the principal offices of the Bond Registrar at the option
of the owners.
Section 6. Optional Redemption and Open Market Purchase of
Bonds. Bonds maturing in the years 1992 through 2002, inclusive,
shall be issued without the right or option of the City to redeem
those Bonds prior to their stated maturity dates. The City
reserves the right and option to redeem the Bonds maturing on or
after December 1, 2003, prior to their stated maturity dates as a
whole or in part (within those maturities selected by the City and
by lot within a maturity in such manner as the Bond Registrar shall
determine), at any time on or after December 1, 2002, at par plus
accrued interest to the date fixed for redemption.
Portions of the principal amount of any Bond, in installments
of $51000 or any integral multiple thereof, may be redeemed. If
less than all of the principal amount of any Bond is redeemed, upon
surrender of that Bond at either of the principal offices of the
Bond Registrar, there shall be issued to the registered owner,
without charge therefor, a new Bond (or Bonds, at the option of the
registered owner) of the same interest rate and maturity in any of
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the denominations authorized by this ordinance in the aggregate
principal amount remaining unredeemed.
The City further reserves the right and option to purchase any
or all of the Bonds in the open market at any time at any price
plus accrued interest to the date of purchase.
All Bonds purchased or redeemed under this section shall be
cancelled.
Section 7. Notice of Redemption. The City shall cause notice
of any intended redemption of Bonds to be given not less than 30
nor more than 60 days prior to the date fixed for redemption by
first-class mail, postage prepaid, to the registered owner of any
Bond to be redeemed at the address appearing on the Bond Register
at the time the Bond Registrar prepares the notice, and the
requirements of this sentence shall be deemed to have been
fulfilled when notice has been mailed as so provided, whether or
not it is actually received by the owner of any Bond. Interest on
Bonds called for redemption shall cease to accrue on the date fixed
for redemption unless the Bond or Bonds called are not redeemed
when presented pursuant to the call. In addition, the redemption
notice shall be mailed within the same period, postage prepaid, to
Moody's Investors Service, Inc., and Standard & Poor's Corporation
at their offices in New York, New York, or their successors, to
Lehman Brothers at its principal office in Seattle, Washington, or
its successor, and to such other persons and with such additional
information as the Finance Director of the City shall determine,
but these additional mailings shall not be a condition precedent to
the redemption of Bonds.
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Section 8. Failure to Redeem Bonds. If any Bond is not
redeemed when properly presented at its maturity or call date, the
City shall be obligated to pay interest on that Bond at the same
rate provided in the Bond from and after its maturity or call date
until that Bond, both principal and interest, is paid in full or
until sufficient money for its payment in full is on deposit in the
bond redemption fund hereinafter created and the Bond has been
called for payment by giving notice of that call to the registered
owner of that unpaid Bond.
Section 9. Pledge of Taxes. For as long as any of the Bonds
are outstanding, the City irrevocably pledges to include in its
budget and to levy taxes annually within the constitutional and
statutory tax limitations provided by law without a vote of the
electors of the City on all of the taxable property within the City
in an amount sufficient, together with other money legally
available and to be used therefor, to pay when due the principal of
and interest on the Bonds, and the full faith, credit and resources
of the City are pledged irrevocably for the annual levy and
collection of those taxes and the prompt payment of that principal
and interest.
Section 10. Form and Execution of Bonds. The Bonds shall be
printed or lithographed on good bond paper in a form consistent
with the provisions of this ordinance and state law, shall be
signed by the Mayor and 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.
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Only Bonds bearing a Certificate of Authentication in the
following form, manually signed by the Bond Registrar, shall be
valid or obligatory for any purpose or entitled to the benefits of
this ordinance:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered City of
Kent, Washington, Limited Tax General Obligation
Refunding Bonds, 1992, described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Officer
The authorized signing of a Certificate of Authentication shall be
conclusive evidence that the Bonds so authenticated have been duly
executed, authenticated and delivered and are entitled to the
benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds
ceases to be an officer of the City authorized to sign bonds before
the Bonds bearing his or her facsimile signature are authenticated
or delivered by the Bond Registrar or issued by the City, those
Bonds nevertheless may be authenticated, delivered and issued and,
when authenticated, issued and delivered, shall be as binding on
the City as though that person had continued to be an officer of
the City authorized to sign bonds. Any Bond also may be signed on
behalf of the City by any person who, on the actual date of signing
of the Bond, is an officer of the City authorized to sign bonds,
although he or she did not hold the required office on the date of
issuance of the Bonds.
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Section 11. Bond Registrar. The Bond Registrar shall keep,
or cause to be kept, at its principal corporate trust office,
sufficient books for the registration and transfer of the Bonds
which shall be open to inspection by the City at all times. The
Bond Registrar is authorized, on behalf of the City, to
authenticate and deliver Bonds transferred or exchanged in
accordance with the provisions of the Bonds and this ordinance, to
serve as the City's paying agent for the Bonds and to carry out all
of the Bond Registrar's powers and duties under this ordinance and
City Ordinance No. 2418 establishing a system of registration for
the City's bonds and obligations.
The Bond Registrar shall be responsible for its
representations contained in the Bond Registrar's Certificate of
Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not
the Bond Registrar and, to the extent permitted by law, may act as
depository for and permit any of its officers or directors to act
as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners.
Section 12. Preservation of Tax Exemption for Interest on
Bonds. The City covenants that it will take all actions necessary
to prevent interest on the Bonds from being included in gross
income for federal income tax purposes, and it will neither take
any action nor make or permit any use of proceeds of the Bonds or
other funds of the City treated as proceeds of the Bonds at any
time during the term of the Bonds which will cause interest on the
Bonds to be included in gross income for federal income tax
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purposes. The City also covenants that it will, to the extent
arbitrage rebate requirements of Section 148 of the Internal
Revenue Code of 1986, as amended (the "Code"), are applicable to
the Bonds, take all actions necessary to comply (or to be treated
as having complied) with those requirements in connection with the
Bonds, including the calculation and payment of any penalties that
the City has elected to pay as an alternative to calculating
rebatable arbitrage, and the payment of any other penalties if
required under Section 148 of the Code to prevent interest on the
Bonds from being included in gross income for federal income tax
purposes. The City certifies 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 certifications may
not be relied upon.
Section 13. Bonds Negotiable. The Bonds shall be negotiable
instruments to the extent provided by RCW 62A.8-102 and 62A.8-105.
Section 14. Advance Refunding or Defeasance of the Bonds.
The City may issue advance refunding bonds pursuant to the laws of
the State of Washington or use money available from any other
lawful source to pay when due the principal of and interest on the
Bonds, or any portion thereof included in a refunding or defeasance
plan, and to redeem and retire, refund or defease all such
then -outstanding Bonds (hereinafter collectively called the
"defeased Bonds") and to pay the costs of the refunding or
defeasance. If money and/or "government obligations" (as defined
in Chapter 39.53 RCW, as now or hereafter amended) maturing at a
time or times and bearing interest in amounts (together with money,
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if necessary) sufficient to redeem and retire, refund or defease
the defeased Bonds in accordance with their terms are set aside in
a special trust fund irrevocably pledged to that redemption and
retirement of defeased Bonds (hereinafter called the "trust
account"), then all right and interest of the owners of the
defeased Bonds in the covenants of this ordinance and in the funds
and accounts obligated to the payment of the defeased Bonds shall
cease and become void. The owners of defeased Bonds shall have the
right to receive payment of the principal of and interest on the
defeased Bonds from the trust account. The defeased Bonds shall be
deemed no longer outstanding, and the City may apply any money in
any other fund or account established for the payment or redemption
of the defeased Bonds to any lawful purposes as it shall determine.
Section 15. Bond Fund and Deposit of Bond Proceeds. There is
created and established in the office of the Finance Director of
the City a special fund designated as the Limited Tax General
Obligation Refunding Bond Fund, 1992 (the "Bond Fund"). Accrued
interest on the Bonds, if any, received from the sale and delivery
of the Bonds shall be paid into the Bond Fund. All principal
proceeds of the Bonds shall be deposited in accordance with the
provisions of Section 16 of this ordinance. All taxes collected
for and allocated to the payment of the principal of and interest
on the Bonds shall be deposited in the Bond Fund.
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Section 16. Refunding of the Refunded Bonds.
(a) Appointment of Refunding Trustee. Puget Sound National
Bank is appointed the Refunding Trustee.
(b) Acquisition of Acquired Obligations. All of the proceeds
of the sale of the Bonds, except for the accrued interest received,
if any, which shall be deposited in the Bond Fund, shall be
deposited immediately upon the receipt thereof with the Refunding
Trustee to discharge the obligation of the City to carry out the
Refunding Plan by providing for the payment of the amounts required
to be paid by the Refunding Plan. To the extent practicable, such
obligations shall be discharged fully by the Refunding Trustee's
simultaneous purchase of United States Treasury Certificates of
Indebtedness and/or Notes --State and Local Government Series or
other direct, noncallable obligations of the United States of
America (the "Acquired Obligations"), bearing such interest rates
and maturing as to principal and interest in such amounts and at
such times so as to provide for the payment of the amounts required
to be paid by the Refunding Plan. The Acquired Obligations are
listed and more particularly described in Schedule A attached to
the Refunding Trust Agreement between the City and the Refunding
Trustee, but are subject to substitution as set forth below.
(c) Substitution of Acquired Obligations. Prior to the
purchase of any such Acquired Obligations, the City reserves the
right to substitute other direct, noncallable obligations of the
United States of America ("Government Obligations") for any of the
Acquired Obligations and to use any savings created thereby for any
lawful City purpose if, (a) in the opinion of Foster Pepper &
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Shefelman, the City's bond counsel, the interest on the Bonds will
remain excluded from gross income for federal income tax purposes
under Sections 103, 148 and 149(d) of the Code, and (b) such
substitution shall not impair the timely payment of the amounts
required to be paid by the Refunding Plan as so verified by an
independent nationally recognized firm of certified public
accountants.
After the purchase of the Acquired Obligations by the
Refunding Trustee, the City reserves the right to substitute
therefor cash or Government Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall
be sufficient to carry out the Refunding Plan, that such
substitution will not cause the Bonds to be arbitrage bonds within
the meaning of Section 148 of the Code and regulations thereunder
in effect on the date of such substitution and applicable to
obligations issued on the issue date of the Bonds, and that the
City obtain, at its expense: (1) verification by an independent
nationally recognized firm of certified public accountants
acceptable to the Refunding Trustee confirming that the payments of
principal of and interest on the substitute Acquired Obligations,
if paid when due, and any other money held by the Refunding Trustee
will be sufficient to carry out the Refunding Plan; and (2) an
opinion from Foster Pepper & Shefelman, bond counsel to the City,
its successor, or other nationally recognized bond counsel to the
City, to the effect that the disposition and substitution or
purchase of such securities, under the statutes, rules and
regulations then in force and applicable to the Bonds, will not
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cause the interest on the Bonds or the Refunded Bonds to be
included in gross income for federal income tax purposes and that
such disposition and substitution or purchase is in compliance with
the statutes and regulations applicable to the Bonds. Any surplus
money resulting from the sale, transfer, other disposition or
redemption of the Acquired Obligations and the substitution
therefor shall be released from the trust estate and transferred to
the City to be used for any City purpose.
(d) Administration of Refunding Plan. The Refunding Trustee
is authorized and directed to purchase the Acquired Obligations (or
substitute obligations) and to make the payments required to be
made by the Refunding Plan from the Acquired Obligations (or
substitute obligations) and money deposited with the Refunding
Trustee pursuant to this ordinance. All Acquired Obligations (or
substitute obligations) and the money deposited with the Refunding
Trustee and any income therefrom shall be held irrevocably,
invested and applied in accordance with the provisions of
Ordinances Nos. 2569, 2632 and 2739, this ordinance, Chapter 39.53
RCW and other applicable statutes of the State of Washington, and
the Refunding Trust Agreement. All necessary and proper fees,
compensation and expenses of the Refunding Trustee for the Bonds
and all other costs incidental to establishing the escrow to
accomplish the refunding of the Refunded Bonds and costs related to
the issuance and delivery of the Bonds, including bond printing,
rating service fees, verification fees, bond counsel's fees and
other related expenses, shall be paid out of the proceeds of the
Bonds.
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(e) Authorization for Refunding Trust Agreement. In order to
carry out the Refunding Plan provided for by this ordinance, the
Mayor or Finance Director is authorized and directed to execute and
deliver to the Refunding Trustee a Refunding Trust Agreement
substantially in the form on file with the City Clerk and by this
reference made a part hereof, setting forth the duties, obligations
and responsibilities of the Refunding Trustee in connection with
the payment, redemption and retirement of the Refunded Bonds as
provided herein and stating that the provisions for payment of the
fees, compensation and expenses of the Refunding Trustee set forth
therein are satisfactory to it. Prior to executing the Refunding
Trust Agreement, the Mayor or Finance Director is authorized to
make such changes therein which do not change the substance and
purpose thereof or which assure that the escrow provided therein
and the Bonds are in compliance with the requirements of federal
law governing the exclusion of interest on the Bonds from gross
income for federal income tax purposes.
Section 17. Call for Redemption of the Refunded Bonds. The
City calls for redemption on May 1, 1995, all of the Refunded 1985
Bonds at par plus accrued interest. Such call for redemption shall
be irrevocable after the delivery of the Bonds to the initial
purchaser thereof. The date on which the Refunded 1985 Bonds are
called for redemption is the next date on which those bonds may be
called at a premium of 3% or less.
The City calls for redemption on December 1, 1995, all of the
Refunded 1986 Bonds at par plus accrued interest. Such call for
redemption shall be irrevocable after the delivery of the Bonds to
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the initial purchaser thereof. The date on which the Refunded 1986
Bonds are called for redemption is the next date on which those
bonds may be called at a premium of 3% or less.
The City calls for redemption on December 1, 1997, all of the
Refunded 1987 Bonds at par plus accrued interest. Such call for
redemption shall be irrevocable after the delivery of the Bonds to
the initial purchaser thereof. The date on which the Refunded 1987
Bonds are called for redemption is the next date on which those
bonds may be called at a premium of 3% or less.
The proper City officials are authorized and directed to cause
the fiscal agencies to give such notices as required, at the times
and in the manner required by Ordinances Nos. 2569, 2632 and 2739
in order to effect the redemption prior to their maturities of the
Refunded 1985 Bonds, the Refunded 1986 Bonds and the Refunded 1987
Bonds, respectively.
Section 18. City Findings with Respect to Refunding. The
City Council finds and determines that the issuance and sale of the
Bonds at this time will effect a saving to the City and its
taxpayers and is in the best interest of the City and in the public
interest. In making such finding and determination, the City
Council has given consideration to the fixed maturities of the
Bonds and the Refunded Bonds, the costs of issuance of the Bonds
and the known earned income from the investment of the proceeds of
the issuance and sale of the Bonds and other money of the City used
in the Refunding Plan pending payment and redemption of the
Refunded Bonds.
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The City Council further finds and determines that the money
to be deposited with the Refunding Trustee for the Refunded Bonds
in accordance with Section 16 of this ordinance, together with
known earned income from the investments thereof, will be
sufficient to carry out the Refunding Plan and discharge and
satisfy the obligations of the City under Ordinance No. 2569 with
respect to the Refunded 1985 Bonds, Ordinance No. 2632 with respect
to the Refunded 1986 Bonds, and Ordinance No. 2739 with respect to
the Refunded 1987 Bonds, and the pledges, charges, trusts,
covenants and agreements of the City therein made or provided for
as to the Refunded Bonds and that the Refunded Bonds shall no
longer be deemed to be outstanding under such ordinances
immediately upon the deposit of such money with the Refunding
Trustee.
Section 19. Approval of Bond Purchase Contract. Lehman
Brothers of Seattle, Washington, has presented a purchase contract
dated April 21, 1992 (the "Bond Purchase Contract"), to the City
offering to purchase the Bonds under the terms and conditions
provided in the Bond Purchase Contract, which written Bond Purchase
Contract is on file with the City Clerk and is incorporated herein
by this reference. The City Council finds that entering into the
Bond Purchase Contract is in the City's best interest and therefore
accepts the offer contained therein and authorizes its execution by
City officials.
The Bonds will be printed at City expense and will be
delivered to the purchaser in accordance with the Bond Purchase
Contract, with the approving legal opinion of Foster Pepper &
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Shefelman, municipal bond counsel of Seattle, Washington, regarding
the Bonds printed on each Bond. Except as provided in the Bond
Purchase Contract, bond counsel shall not be required to review and
shall express no opinion concerning the completeness or accuracy of
any official statement, offering circular or other sales material
issued or used in connection with the Bonds, and bond counsel's
opinion shall so state.
The proper City officials are authorized and directed to do
everything necessary, including reviewing and executing the final
official statement, for the prompt delivery of the Bonds to the
purchaser and for the proper application and use of the proceeds of
the sale thereof.
Section 20. Preliminary Official Statement Deemed "Final".
The City Council has been provided with copies of a preliminary
official statement dated April 14, 1992 (the "Preliminary Official
Statement"), prepared in connection with the sale of the Bonds.
For the sole purpose of the purchaser's compliance with Securities
and Exchange Commission Rule 15c2 -12(b)(1), the City "deems final"
that Preliminary Official Statement as of its date, except for the
omission of information as to offering prices, interest rates,
selling compensation, aggregate principal amount, principal amount
per maturity, maturity dates, options of redemption, delivery
dates, ratings, and other terms of the Bonds dependent on such
matters.
Section 21. Temporary Bond. Pending the printing, execution
and delivery to the purchaser of definitive Bonds, the City may
cause to be executed and delivered to the purchaser a single
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temporary Bond in the total principal amount of the Bonds. The
temporary Bond shall bear the same date of issuance, interest
rates, principal payment dates and terms and covenants as the
definitive Bonds, shall be issued as a fully registered Bond in the
name of the purchaser, and otherwise shall be in a form acceptable
to the purchaser. The temporary Bond shall be exchanged for
definitive Bonds as soon as they are printed, executed and
available for delivery.
Section 22. Effective Date of Ordinance. This ordinance
shall take effect and be in force five (5) days from and after its
passage, approval and publication, as provided by law.
By
DAN KELLEHER, Mayor
ATTEST:
�`� " lit_ 2 t c.�_ ��./ C c f -" l-•
BRENDA JACOBER
City Clerk
APPROVED AS TO FORM:
rsel
A if . sty a"
Spe Counsel an and
for the City
Passed the �2- 1 day of __'!?- -`V 1992.
Approved the .-� "- day of 1992.
Published the 2 day of c" _. I- .<_ 1992.
I certify that this is a true copy of Ordinance No.
passed by the City Council of the City of Kent, Washington, and
approved by the Mayor of the City of Kent as hereon indicated.
(SEAL)
•BRENDA JACOBER, City Clerk
Y
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