HomeMy WebLinkAbout2631ORDINANCE NO.
AN ORDINANCE of the City of Kent,
Washington, relating to the Capital Improvement
Fund; providing that savings from the Limited
Tax General Obligation Refunding Bond issue,
1986, be placed in the contingent reserve
portion of the Capital Improvement Fund.
WHEREAS, the City now has outstanding its limited tax
general obligation bonds, 1984 (the "1984 bonds"), dated
November 1, 1984, maturing on December 1 in each of the years 198
through 2004, inclusive, in the principal amount of $7,930,000 an
bearing various interest rates from 9.5 to 11.625 percent per
annum, which 1984 bonds were issued pursuant to Ordinance 2500; a
WHEREAS, pursuant to Ordinance 2500 the City reserves th
right to redeem any or all of the 1984 bonds prior to their state
maturity dates on December 1, 1994, or on any interest payment
date thereafter at par plus accrued interest; and
WHEREAS, after due consideration, it appears to the City
Council that the 1984 bonds may be refunded by the issuance and
sale of bonds so that a substantial savings will be affected by
the difference between the principal and interest costs over the
life of bonds and the principal and interest requirements over the
life of the 1984 bonds but for such refunding which refunding will
be affected by:
(a) the issuance of the bonds; and (b) the
payment of the principal of and interest on the
1984 bonds as the same shall become due up to and
including December 1, 1994, and on December 1,
1994, the call, payment and redemption of all
outstanding 1994 bonds as par plus accrued
interest (the "refunding play"); and
WHEREAS, the City has affected such refunding in a manner
that will be most advantageous to the City and its taxpayers; and
WHEREAS, it is appropriate that the Capital Improvement
Fund be provided with sufficient contingent reserves to provide
for the ongoing and emerging capital needs of the City of Kent; an
WHEREAS, it is appropriate to set aside those savings
from the refunding, above -referenced; 14OW THEREFORE
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. Those savings realized from the Limited Tax
General Obligation Refunding Bond Issue, 1986, shall be credited
to the contingent reserve portion of the Capital Improvement Fund.'
Section 2. Effective Date. This ordinance shall take
effect and be in force five (5) days from and after its passage,
approval and publication as provided by law.
DAN KELLEHER, MAYOR
ATTEST:
MARIE JENSE ITY CLERK
APPROVED AS TO FORM:
P. ST HEN DiJULIrJ, CITY ATTORNEY
PASSED the l day of.- , 1986.
APPROVED the day of , 1986.
PUBLISHED the day of , 1986.
I hereby certify that this is a true copy of Ordinance
passed by the City Council of the City of Kent,
Washington, and approved by the Mayor of the City of Kent as herec
indicated.
3590-140
M4 (SEAL)
ARIEJEN N CITY LERK
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