HomeMy WebLinkAbout1179CITY OF KENT, WASHINGTON
ORDINANCE NO. 1179
AN ORDINANCE specifying and adopting a
system or plan of additions to and better-
ments and extensions Of the water supply
and distribution syst`.;'m of the City of
Kent, Washington; declaring the estimated
cost thereof as near as may be; providing
for the issuance and sale of $i,,000,000.00
par value of "Water Revenue Bonds, 1963,
Issue No. 2," for the purpose of obtain-
ing funds to pay the cost of carrying out
the system or plan for making additions
to and betterments and extensions of the
existing water supply and distribution
system of the City, and for the purpose
of refunding all outstanding "Water Re-
venue Bonds, 19+8," "Water Revenue Bonds,
1957," and "Water Revenue Bonds, 1958,"
of the City; fixing the form, date,
maturities, interest rates, covenants
and terms of the "Water Revenue Bonds,
1963, Issue No. 2;" and providing for
the sale thereof to McLean & Company, Inc.,
Tacoma, Washington.
WHEREAS, the City of Kent, Washington, owns and operates
its water supply and distribution system; and
WHEREAS, pursuant to Ordinance No. 802, the City has
heretofore issued, under date of November 1, 1948, its "Water
Revenue Bonds, 19+8," of which issue there are now outstanding
bonds in the total principal sum of $78,000.00, which bonds are
a first and prior charge and lien upon the gross revenues of
the water supply distribution system of the City and are subject
to call for prior redemption on May 1, 1933, at par; and
WHEREAS, pursuant to Ordinance Nos. 949-A, 956, the
City has heretof,?re issued, under date of July 1, 1957, its
"Water Revenue Bonds, 1957," of which issue there are now out-
standing bonds in the total principal sum of $725,000.00, which
bonds are a second charge and lien upon the gross revenues of
the water supply and distribution system of the City; subject
only to the prior charge and lien thereon for the 1948 bonds,and
are subject to call for prior redemption on July 1, 1963, at
$102.00 per $100.00 of par value thereof; and
WHEREAS, pursuant to Ordinance No. 982, the City has
heretofore issued, under date of June 1, 1958, its "Water Re-
venue Bonds, 1958," of which issue there are now outstanding
bonds in the total principal sum of $139,000.00, which bonds
are a third charge and lien upon the gross revenues of the
water supply and distribution system of the City, subject only
to the prior charge and lien thereon for the 1948 bonds and the
1957 bonds,and are subject to call for prior redemption on June
1, 1963, at $102.50 per each $100.00 par value thereof; and
WHEREAS, pursuant to Ordinance No. 1032, the City
has heretofore issued under the date of June 1, 1959, its
"Water Revenue Bonds, 1959," of which issue there are now out-
standing bonds in the total principal sum of $327,000.00, which
bonds are on a parity of lien with the 1958 bonds; and
WHEREAS, pursuant to Ordinance No. 1178, adopted this
lst day of April, 1963, the City has authorized the issuance of
$327,000.00 par value of "Water Revenue Bonds, 1963, Issue No.
for the purpose of refunding the 1959 bonds; and
WHEREAS, the City Council believes that it is in the
best interest of the City to refund the 1948 bonds, 1957 bonds,
and 1958 bonds by issuing its "Water Revenue Bonds, 1963, Issue
No. 2," on a parity of lien with the "Water Revenue Bonds, 1963,
Issue No. 1," on the terms hereinafter set forth whereby an
interest saving may be realized by the.City; and
WHEREAS, the City desires to adopt a plan or system
of additions to and betterments and extensions of the wager
supply and distribution system of the City which shall be paid
for out of part of the proceeds of the "Water Revenue Bonds,
1963, Issue No. 2;" NOW, THEREFORE,
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THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,
DO ORDAIN, as follows:
Section 1. As used in this Ordinance the following
words shall have the following meanings:
(a) "Bonds" shall mean the "Water Revenue Bonds,
1963, Issue No. 2," authorized to be issued by this Ordinance.
(b) "Bond Fund" shall mean the "Water Revenue
Bond Redemption Fund, 1963," created by Ordinance No. 1178,
adopted April 1, 1963.
(c) 111948 Bonds," shall mean the "Water Revenue
Bonds, 1948," of the City issued pursuant to Ordinance No. 802.
(d) 111948 Bond Fund" shall mean the "Kent 1948
Water Revenue Bond Redemption Fund," created by section 6 of
Ordinance No. 802 for the payment of the principal of and
interest on the 1948 bonds.
(e) "1957 Bonds" shall mean the "Water Revenue
Bonds, 1957," of the City issued pursuant to Ordinances Nos.
949-2 and 956.
(f) "1957 Bond Fund" shall mean the "Kent 1957
Water Revenue Bond Redemption Fund," created by section 8 of
Ordinance No. 956.
(g) "1958 Bonds" shall mean the "Water Revenue
Bonds, 1958," of the City issued pursuant to Ordinance No. 982.
(h) "1958 Bond Fund" shall mean the "Kent 1958
Water Revenue Bond Redemption Fund," created by section 6 of
Ordinance No. 982.
(1) "1959 Bonds" shall mean the "Water Revenue
Bonds, 1959.," issued -,:pursuant to Ordinance No. 1032.
(j) "1963 Bonds, Issue No. 1" shall mean the
"Water Revenue Bonds, 1963, Issue No. l," authorized to be
issued by Ordinance No. 1178, adopted April 1, 1963.
(k) "Parity Revenue Bonds," shall mean any revenue
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bonds of the City hereafter issued in accordance with the pro-
visions of section 9 of Ordinance No. 1178, where the City has
pledged to pay the principal of and interest on such bonds out
of the gross revenue of the Water System on a parity with the
payments required by Ordinance No. 1178 to be made out of those
revenues for the 1963 Bonds, Issue No. 11 and by this Ordinance
for the Bonds.
(1) "Term Bond Year" shall mean any calendar year
or years in which the 1963 Bonds, Issue No. 1, the Bonds, or
any Parity Revenue Bonds of any one issue or series mature
(regardless of reservation of prior redemption rights) in an
amount which is more than 1.25 times the average annual matur-
ities of the outstanding bonds of that issue or series for
three calendar years immediately preceding such calendar year
or years.
(m) "Water System" shall mean the existing water
supply and distribution system of the City as the same may be
added to, improved and extended at any time for as long as the
1963 Bonds, Issue No. 11 the Bonds and any Parity Revenue Bonds
are outstanding, and which additions, improvements and exten-
sions shall include the sanitary sewerage system of the City,
should that ever be combined with the water supply and distri-
bution system in the manner authorized by law.
Section 2. It is found and declared that it is neces-
sary and in the best interest of the City to refund the 19+8
bonds, 1957 bonds, and 1958 bonds, and that the rates of interest
on the Bonds authorized by this Ordinance will not exceed the
rates of interest on the 1948 bonds, 1957 bonds, and 1958 bonds.
Section 3. The City of Kent, Washington, specifies
and adopts a system or plan for making additions to and better-
ments and extensions of the existing Water System which shall
consist of the following:
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(a) There shall be constructed and installed an
extension of the intake facilities at Clark Springs (also known
as Rock Creek) in the South 1/2 of Section 26, Township n N.,
Range 6 East, W.M., by the installation of additional infiltra-
tion pipe.
(b) There shall be acquired a reservoir and ele-
vated tank site at appropriate locations within and outside the
City.
There shall be included in the foregoing construction
and installation all necessary valves, fittings, couplings, con-
nections, equipment and appurtenances and the acquisition of
any easements, rights-of-way, water rights, and land that may
be required; and there shall be Iftaluded the performance of
such work as may be incidental and necessary to the foregoing
construction and installation.
The above described additions to and betterment's and
extensions of the Water System shall be connected to the.exist-
ing Water System wherever necessary with the installation of
all necessary appurtenances therefor.
The City Council may modify the details of the fore-
going system or plan where in its judgment it appears advisable
if such modifications do not substantially alter the purposes
herein set forth.
Section 4. The life of the additions, betterments and
extensions set forth in section 3 of this Ordinance is declared
to be at least thirty years.
Section 5. The estimated cost of the acquisition,
construction and installation of the additions, betterments and
extensions set forth in section 3 of this Ordinance is fixed
as nearly as may be.at the sum of $58,000.00.
Section 6. The cost of acquiring, constructing and
installing the additions, betterments and extensions described
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in section 3 of this Ordinance and the cost of refunding the
bonds described in section 2 of this Ordinance shall be paid
from the proceeds received from the issuance and sale of the
Bonds. It is the intention of the City to acquire, construct,
install and complete such portions of the foregoing system or
plan of additions, betterments and extensions as from time
to time the City Council shall deem advisable.
Section 7. For the purposes set forth in section 6
of this Ordinance, there shall be issued and sold $1,000,000.00
par value of the Bonds. The Bonds shall be in denominations
of $1,000.00 each; shall be numbered from 1 to 1000, inclusive;
shall be dated May 1, 1963; shall bear interest payable semi-
annually on June 1 and December 1 of each year, with the first
interest coupon being payable on December 10 1963, coveftng the
seven months' period from May 1, 1963, through November 30, 1963,
interest to maturity to be evidenced by coupons to be attached
to the Bonds with full obligation on the part of the City to pay
interest at the same rate or rates from and after the Bond
maturity dates until the Bonds with interest are paid in full.
Both principal of and interest on the Bonds shall be paid in
lawful money of the United States of America at the office of
the City Treasurer of Kent, Washington, solely out of the Bond
Fund.
M
The Bonds
shall mature and bear interest in accordance
with
the
following
schedule,
to -wit:
Bond
Numbers
Interest
Inclusive
Amounts
Rates
Maturities
1
to
18
18,000
3
%
December
1,
1963
19
to
37
19,000
3
%
December
1,
1964
38
to
57
20,000
3
%
December
1,
1965
58
to
89
32,000
3
%
December
1,
1966
90
to
118
29,000
3
1/2%
December
1,
1967
119
to
148
30-,000
132,000
3
1/2%
December
1,
1968
149
to
173
25,000
3
1/2%
December
1,
1969
174
to
203
30,000
3
1/2,%
December
1,
1970
204
to
234
31,000,
3
1/2%
December
1,
1971
235
to
266
3
1/2%
December
1,
1972
M
Bond Numbers
(Inclusive
Amounts
Interest
Rates
Maturities
267
to
299
33,000
36,000
3
3
1/2%
3/4%
December
December
1,
1,
1973
1974
300
336
to
to
335
371
3 6 000
�
3
3
3/ 4%
�,
December
December
1,
1,
1975
1976
410
to
to
442 9
4o,000
3
38000
/4%
December
1,
1,
1977
450
to
490
41,000
42,000
3
3
3/4%
3/4%.
December
December
1,
.197
1979
491
533
to
to
532
576
44,000
47,000
3
3
3/4%
3/4%
December
December
1,
1,
1980
1981
577
624
to
to
623
671
48,000
3
3/4%
December
1,
1,
1982
1983
672
to
720
49,000
51,000
3
3
3/4%
3/49
December
December
1,
1984
721
774
to
to
773
838
65,000
67,000
3
3
3/4%
3/4%
December
December
1,
1,
1985
1986
839
896
to
to
905
974
69,000
3
3/4%
_--_
December
December
1,
1,
1987
1988
-_--_
_
___
____
December
1,
1989
975
to
1000
$26,000
3
3/4%
December
1,
1990
The City of Kent reserves the right to redeem the Bonds,
as a whole or in part, in inverse numerical order, on December 1,
1973, or on any interest payment date thereafter at par, plus
accrued interest to date of redemption. Notice of any call for
redemption of any of the Bonds prior to their stated maturity
dates shall be published at least once in the official newspaper
of the City not less than thirty nor more than forty-five days
prior to the call date. Notice of the intended redemption shall
also be mailed to McLean & Company Inc., 772 Commerce Street,
Tacoma, Washington, or its successor, not less than thirty nor
more than forty-five days prior to the call date. Interest on
any bonds so called for redemption shall cease on the date fixed
for such redemption upon payment of the redemption price into
the Bond Fund.
Section 8. The Bond Fund has, by Ordinance No. 1178;
been divided into a Principal and Interest Account and a Reserve
Account. So long as any of the Bonds are outstanding against
the Bond Fund, the City Treasurer of the City of Kent shall
set aside and pay into the Principal and Interest Account of
the Bond Fund out of the gross revenues of the Water System a
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fixed amount without regard to any fixed proportion, on or
before the twentieth day of each month, as follows.-
(a)
ollows:(a) An amount equal to at least 1/6th of the interest
to become due and payable on the next interest payment date on
all of the Bonds outstanding except that from May through
November, 1963, inclusive, the amount shall be equal to at
least 1/7th of the interest to become due and payable on December
1, 1963,
(b) An amount equal to at least 1/12th of the principal
of the Bonds to become due and payable on the next principal
payment date, except that from May through November, 1963,
inclusive, the amount shall be eoual to at least 1/7th of the
principal of the Bonds to become due and payable on December 1,
1963.
Section 9. The City shall pay into the Reserve Account
of the Bond Fund by no later than May 1, 1968, an amount which
will be at least equal to the next year's debt service on all
outstanding Bonds and outstanding 1963 Bonds, Issue No. 11 and
will maintain that Reserve Account so that there will be on
deposit within that account at all times, except for withdrawals
therefrom as authorized herein, an amount at least equal to the
next succeeding year's debt service on the Bonds, the outstanding
1963 Bonds, Issue No. 1, and any Parity Revenue Bonds hereafter
issued.
In addition to using the gross revenues therefor, the
Reserve Account may be accumulated from any monies which the
City of Kent may have available for such purpose.
The City further agrees that when the required amounts
have been paid into the Reserve Account, it will at all times,
except for withdrawals therefrom as authorized herein, maintain
those amounts therein until there is a sufficient amount in the
Principal and Interest Account and the Reserve Account to pay
the principal of, call premium, if any, and interest on all
bonds payable out of the Bond Fund outstanding, at which time
the money in the Reserve Account may be used to pay such principal,
call premium, if any, and interest.
In the event that there shall be a deficiency in the
Principal and Interest Account to meet maturing installments of
either principal or interest, as the case may be, on any bonds
payable out of the Bond Fund, such deficiency shall be made up
from the Reserve Account by withdrawal of cash therefrom for
that purpose. Any deficiency created in the Reserve Account by
reason of any such withdrawals shall then be made up from the
monies from the revenues of the Water System first available
after making necessary provisions for the required payments into
the Principal and Interest Account.
All monies in the Reserve Account may be kept on deposit
in the official bank depository of the City of Kent, or may be
invested in direct obligations of the United States Government,
having a guaranteed redemption price prior to maturity or
maturing not later than twelve years from the day of purchase,
and, in no event, maturing later than the last maturity of any
bonds payable out of the Bond Fund outstanding at the time of
such purchase. Interest earned on any such investment or on
such bank deposit shall be deposited and become part of the
Reserve Account until the total required reserve amount shall
have been accumulated, therein, after which such interest shall
be deposited in the Principal and Interest Account.
Section 10. The gross revenues from the Water System
of the City are pledged to such payments as are required by
this Ordinance, and the bonds shall constitute a charge or lien
upon such revenues prior and superior to any other charge
WE
whatsoever, excluding charges for maintenance and operation,
except that the charge or lien upon such gross revenues for the
bonds shall be on a parity with the charge or lien upon such
gross revenues for the 1963 Bonds, Issue No. 1, and for any Parity
Revenue Bonds.
Section 11. The City of Kent covenants and agrees with
the owner and holder of each bond at any time outstanding, as follows:
(a) It will establish, maintain and collect such rates
and charges for water service (and for sanitary sewage disposal
service should the sanitary sewage system of the City ever be
combined with the Water System) so long as any of the bonds,
any 1963 Bonds, Issue No. 1, and any Parity Revenue Bonds, are out-
standing, as will make available for the payment of the principal
of and interest on all such bonds as the same shall become due,
an amount equal to at least 1.35 times the average annual amount
required for the payment of all principal of and interest on
such bonds, exclusive of the principal requirement in any Term
Bond Year, after necessary costs of maintenance and operation
of the Water System shall have been paid, but before depreciation.
(b) It will at all times maintain and keep the Water
System and all additions thereto and betterments, replacements
and extensions thereof in good repair, working order and condition
and also will at all times operate the Water System and the
business in connection therewith in an efficient manner and at
a reasonable cost.
(c) It will not sell, lease, mortgage, or in
any manner encumber or dispose of all of the property of the
Water System unless,provision is made for payment into the Bond
Fund of a sum sufficient to pay the principal of and interest
on all Bonds and Parity Revenue Bonds at that time out-
standing, and it will not sell, lease, mortgage, or in
any manner encumber or dispose of any part of the property of
the Water System unless provision is made for replacement thereof
or for payment into the Bond Fund of the total amount
of revenue received, which shall not be less
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than an amount which shall bear the same ratio to the amount
of outstanding bonds payable from the Bond Fund revenue available
for debt service for those outstanding bonds for the twelve
months preceding such sale, lease, mortgage, encumbrance, or
disposal from the portion of the Water System sold, leased,
mortgaged, encumbered, or disposed of bears to the revenue
available for debt service for such bonds from the entire Water
System for the same period. Any money so paid into the Bond Fund
shall be used to retire such outstanding bonds at the earliest
possible date.
(d) It will while any of the Bonds remain outstanding,
keep proper and separate accounts and records in which complete
and separate entries shall be made of all transactions relating
to its Water System and it will furnish the original purchaser
or purchasers of the Bonds or any subsequent holder or holders
thereof at the written request of such holder or holders,
complete operating and income statements of the Water System in
reasonable detail covering any calendar year not more than ninety
days after the close of such calendar year. It will grant any
holder or holders of at least twenty-five percent of the out-
standing Bonds the right at all reasonable times to inspect the
Water'System and all records, accounts and data of the City
relating thereto. Upon the request of any holder of any of
the Bonds, it will furnish such holder a copy of the most
recently completed audit of the City accounts by the State
Auditor of Washington.
(e) It will not furnish any water, (or any sanitary
sewage disposal service should the sanitary sewerage system
ever be combined with the Water System) to any customer what-
soever free of charge, and it will promptly take legal action to
enforce the collection of all delinquent accounts.
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M It will carry the types of insurance on its
Water System properties in the amounts normally carried by
private water companies engaged in the operation of Water Systems,
and the cost of such insurance shall be considered a part of
operating and maintaining the Water System. If, as, and when
the United States of America of some agency thereof shall
provide for war risk and insurance, the City further agrees to
take out and maintain such insurance on all or such portions
of the Water System on which such war risk insurance may be
written in an amount or amounts to cover adequately the value
thereof.
(g) It will pay all costs of maintenance and
operation of the Water System and the debt service requirements
for the outstanding Bonds, 1963 Bonds, Issue No. 1, and Parity
Revenue Bonds, and otherwise meet the obligations of the City,
as herein set forth.
Section 12. The City of Kent covenants and agrees
with the holder and holders of each Bond at any time outstanding
that it will not issue any Parity Revenue Bonds unless it shall
first satisfy the conditions set forth for the issuance of
such Parity Revenue Bonds in Section 9 of Ordinance No. 1178,
which section is by this reference incorporated herein and
made a part hereof and shall be applicable so long as any Bonds
are outstanding.
Nothing contained in this section 12 shall prevent
the City from issuing revenue bonds or warrants, the payment
of the principal of and interest on which is a charge upon the
gross revenue of the Water System junior and inferior to the
payments required to be made out of that gross revenue into the
Bond Fund.
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Section 13. The Bond shall be in substantially
the following form:
No. $ 1,000.00
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF KENT
WATER REVENUE BOND, 1963,
ISSUE NO. 2
(3) (3-1/2) (3-3/4)%
KNOW ALL MEN BY THESE PRESENTS: That the
City of Kent, a municipal corporation of the
State of Washington, for value received promises
to pay to bearer on the 1ST DAY OF DECEMBER, 191
ONE THOUSAND DOLLARS
together with interest thereon at the rate of
(three) (three and one-half) (three and three-
fourths) percent per annum payable on December 11
1963, and semiannually thereafter on the
lst days of June and December of each year
upon the presentation and surrender of the attached
interest coupons as they severally mature up
to the bond maturity date and with full obligation
on the part of the City to pay interest at
the same rate from and after the bond maturity
date until this bond, with interest, is paid in
full. Both principal and interest are payable
in lawful money of the United States of America
at the office of the City Treasurer of Kent, Wash-
ington, solely out of the special fund of the City
known as the "Water Revenue Bond Redemption Fund,
1963," created by Ordinance No. 1178 of the City,
and hereinafter called the "Bond Fund."
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This bond is one of a total issue of
$1,000,000.00 par value of bonds, all of like date,
tenor and effect, except as to maturities and
interest rates, all payable from the Bond Fund and
all issued by the City of Kent under and pursuant
to the laws of the State of Washington and Ordinance
No. 1179 of the City for the purpose of paying the
cost of acquisition, construction and installation
of certain additions td and betterments and
extensions bf the watar supply and distribution
system of the City, and for the purpose of refunding
the outstanding "Water Revenue Bonds, 1948,"
"Water Revenue Bonds, 1957," and "Water Revenue
Bonds, 1958," of the City. Reference is made to
that Ordinance as more fully describing the covenants
with and rights of the bonds of this issue.
The City of Kent reserves the right to redeem
the bonds of this issue, as a whole or in part, in
inverse numerical order, on December 1, 1973, or
on any subsequent interest payment date, at par,
plus accrued interest to date of redemption.
Notice of any cAll for redemption of any of
the bonds of this issue prior to their stated
maturity dates shall be published at least once in
the official newspaper of the City not less than
thirty nor more than forty-five days prior to the
call date. Notice of such intended redemption
shall also be mailed to McLean & Company, Inc.,
772 Commerce Street, Tacoma 2, Washington, or its
successors, not less than thirty nor more than
forty-five days prior to the call date. Interest
on any bonds so called for redemption shall cease
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on the date fixed for such redemption upon pay-
ment of the redemption price into the Bond Fund.
The bonds of this issue constitute a charge
or lien upon the gross revenues of the water
supply and distribution system of the City prior
and superior to any other charges whatsoever,
excluding charges for maintenance and operation of
the water system, except that the charge or lien
upon such gross revenues for the bonds of this
issue shall be on a parity with the charge or
lien upon such gross revenues for the outstanding
"Water Revenue Bonds, 1963, Issue No. 1," and
any additional and/or refunding bonds of the City
hereafter issued on a parity of lien with the
bonds in accordance with the provision of Section
9 of Ordinance No. 1178 and section 12 of
Ordinance No. 1179.
The City of Kent has covenanted to establish,
maintain and collect such rates and charges for
water (and for sanitary sewage disposal service
should the sanitary sewerage system of the City
ever be combined with the water supply and
distribution system of the City) for so long as
any -bonds of this issue, any "Water Revenue Bonds,
1963, Issue No. 1," and any revenue bonds which
may hereafter be issued on a parity therewith are
outstanding, as will make available for the payment
of the principal of and interest on such out-
standing bonds as the same shall become due, an
amount equal to at least 1.35 times the average
annual amount required (exclusive of the principal
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requirement in any "Term Bond Year" as such words
are defined in Ordinance No. 1179) for the payment
of all such principal and interest, after necessary'
costs of maintenance and operation of such system
have been paid, but before depreciation.
The City has further covenanted and agreed to
maintain in good condition and to operate the
water distribution and supply system and all
additions thereto and betterments, replacements
and extensions thereof and to establish, maintain
and collect such rates for water as will produce
such gross revenues from the water system sufficient
to permit payment into the Bond Fund of the amounts
required for payment of principal of and interest
on all bonds payable out of the Bond Fund as the
same shall become due and the amounts required to
be paid into the "Reserve Account" in the Bond
Fund, and in addition thereto to pay all costs
of maintenance and operation and the debt service
requirements of all outstanding revenue bonds,
and otherwise to meet the obligations of the
City as herein set forth.
it is hereby certified and declared that
the bonds of this issue are issued pursuant to
and in strict compliance with the Constitution
and laws of the State of Washington and the
Ordinances of the City of Kent, and all acts,
conditions, and things required to be done pre-
cedent to and in the issuance of this bond have
happened, have been done, and have been performed
as required by law.
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IN WITNESS WHEREOF, the City of Kent, Washing-
ton, has caused this bond to be signed by its
Mayor and attested by its Clerk and its corporate
seal to be hereto affixed and the interest coupons
attached to be signed with the facsimile signatures
of those officials, this first day of May, 1963•
CITY OF KENT, WASHINGTON
B
MAYOR
ATTEST:
CITY CLERK
The interest coupons attached to the Bonds shall
be in substantially the following form:
Coupon No.
On the First DAY OF (JUNE) (DECEMBER), 19_,
the City of Kent, Washington, upon presentation
and surrender of this coupon, will pay to the
bearer at the office of the City Treasurer, the
sum of DOLLARS
( ) in lawful money of the United
States of America from the special fund of the
City known as the "Water Revenue Bond Redemption
Fund, 1963," that sum being six months' (seven
months' on Coupon No. 1) interest then due on
its "Water Revenue Bond, 1963, Issue No. 2,"
dated May 1, 1963, and numbered
CITY OF KENT, WASHINGTON
By(LLL...... �'' -�' • . - �� _
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ATTEST:
CLERK
The bonds shall be printed on lithographed forms,
shall be signed by the Mayor and attested by the Clerk, and
shall have the seal of the City of Kent affixed thereto. The
coupons shall bear the facsimile signatures of the Mayor and
the Clerk.
Section 14. McLean & Company, Inc., of Tacoma,
Washington, heretofore offered to purchase the Bonds at the price
of par, plus accrued interest from the date of issuance to the
date of delivery of the Bonds, the City to furnish at its expense
the Bonds, together with the approving legal opinion of Messrs.
Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel
of Seattle, Washington. The City Council, deeming that no better
offer could be received for the Bonds, and that it was in the best
interests of the City to accept that offer, duly accepted the
same on March 4, 1963, and such acceptance is now ratified and
confirmed. The Bonds shall, therefore, immediately upon their
execution be delivered to McLean & Company, Inc., upon payment
therefor in accordance with that offer. The accrued interest
received shall be deposited in the Principal and Interest Account
of the Bond Fund, and the principal proceeds shall be deposited
in the following manner:
$58,000.00 shall be deposited into the "Water
Construction Fund" of the City, and there shall be
deposited in the 19+8 Bond Fund, the 1957 Bond Fund
and the 1958 Bond Fund such sums which, together with
the monies in those respective funds on May 1, 1963,
will be sufficient to fully redeem all of the
outstanding 1948 Bonds, 1957 Bonds and 1958 Bonds,
and to pay fully the interest and any call premiums
on the earliest dates on which those bonds may
respectively be redeemed. Any remaining principal
proceeds of the Bonds and any remaining monies in
the 1948 Bond Fund, 1957 Bond Fund and 1958 Bond
Fund, after the redemption of the 1948 Bonds, 1957
Bonds and 1958 Bonds, shall be deposited in or
transferred to, as the case may be, the Reserve
Account of the Bond Fund.
The City Treasurer, pursuant to City Council direction
has heretofore issued a call for redemption of all outstanding
1948 Bonds, such redemption to occur on May 1, 1963, and such
action is now ratified and confirmed. The City Treasurer is
directed to issue a call for redemption of all outstanding 1957
Bonds and 1958 Bonds to be redeemed at the earliest dates on
which those respective bonds may be so redeemed.
PASSED by the City Council of the City of Kent,
Washington, and APPROVED by its Mayor at a regular meeting
held on the 1st day of April, 1963.
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MAYOR
ATTEST:
ERK
FORM APPROVED: