HomeMy WebLinkAbout1384CITY OF KENT, WASHINGTON
ORDINANCE NO. 1-�
AN ORDINANCE providing for the issuance
and sale of $300, 000.00 par value of "General
Obligation Bonds, 1966; fixing the date, form,
terms, and maximum interest rate of such bonds;
establishing a "General Obligation Bond Fund, 1966"
and a South 212th Street Construction Fund" and
providing for the issuance and sale of interest
bearing warrants upon the South 212th Street Con-
struction Fund" pending the issuance and sale
of such "General Obligation Bonds, 1966".
WHEREAS, the City of Kent, by Ordinance No. 1368 passed
by the City Council and approved by the Mayor on August 1, 1966, ordered
the improvement of South 212th Street from the Kent City Limits (Russell Road)
to the West Valley Highway by constructing and installing asphaltic concrete
pavement of a variable width from 60 to 72 feet with concrete curbs and gutters
and drainage facilities, a part of the adopted Arterial Street Program of the
City of Kent, established Local Improvement District No. 251 and provided
(a) that not to exceed $130,000-00 of the cost and expense of the improvement
should be borne by and assessed against the property specially benefited
by such improvement included in Local Improvement District No.25),(b) that
approximately $186,000.00 of the cost and expense of the improvement should
be paid from a grant anticipated to be received from the Economic Development
Administration of the United States Department of Commerce, pursuant to the
Public Works and Economic Development Act of 1965 (P.L. 89-136) Project
07-1-00100, and (c) that the balance of the cost and expense of the improvement
should be paid from the proceeds received from the issuance and sale of general
obligation bonds of the City in an amount not to exceed $ 15 0 , 000.00 , such bonds
to be payable by annual ad valorem taxes to be levied within the City's authorized
millage against all of the taxable property within the City; and
WHEREAS, the City intends to order the continuation of the
improvement of South 212th Street from the West Valley Highway to the East
Valley Freeway (PSH5 or SR 167) by constructing and installing asphaltic
concrete pavement of a variable width from 60 to 72 feet with concrete curbs
and gutters and drainage facilities, such improvement to be financed
similarly be assessing a portion of the cost and expense thereof against
the property specially benefited by such improvement to be included in a local
improvement district to be established and a part of the cost and expense
of the improvement to be paid from the grant anticipated to be received
from the Economic Development Administration of the United Staies Department
of Commerce, pursuant to the Public Works and Economic Development Act of
1966,and the balance of the cost and expense of such improvement to be
paid from the proceeds received from the issuance and sale of general
obligation bonds of the City, such bonds to be payable by ad valorem taxes
to be levied within the City's authorized millage against all of the taxable
property within the City; and
WHEREAS, the City has determined it to be in the best interests
of the City that a general indebtedness be incurred and general obligation
bonds be issued in the amount of $300,000.00 par value to pay a part of
the cost and expense of the improvement of South 212th Street included with
Local Improvement District No. 251 heretofore established and the remaining
portion of the improvement of South 212 th Street to be included in an additional
local improvement district to be established; and
WHEREAS, the assessed valuation of the taxable property in
the City as ascertained by the last preceding assessment for City purposes
for the calendar year 1966 is $25,068,318.00, and at the time of the passage
of this ordinance the outstanding indebtedness of the City is $244,000.00,
all of which is represented by outstanding general obligation bonds issued
within the 5% limit of indebtedness permitted by the Constitution and the
statutes of the State of Washington for general municipal purposes pursuant
to a vote of the electors of the City, and the amount of indebtedness proposed
to be incurred is $300,000.00, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO
ORDAIN as follows:
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Section 1. The City shall borrow money on the credit of
the City in the amount of $300,000.00 to pay a part of the cost and expense
of improving South 212th Street from the Kent City Limits (Russell Road) to
the East Valley Freeway (PSH 5 or SR 167) by constructing and installing
asphaltic concrete pavement of a variable width from 60 to 72 feet with
concrete curbs and gutters and drainage facilities, a part of which has
heretofore been ordered pursuant to Ordinance No. 1368 and included in
Local Improvement District No. 251, and shall issue negotiable general
obligation bonds in evidence of such indebtedness.
Section 2. The bonds shall be designated "General
Obligation Bonds, 1966" of the City of Kent, Washington; shall be dated
December 1, 1966; shall be in denominations of $5,000.00 each; shall be
numbered from 1 to 60, inclusive; shall bear interest at a maximum effective
rate not to exceed 6% per annum which, except for the first coupon, shall
be payable semiannually on June 1 and December 1 of each year as evidenced
by coupons to be attached to the bonds representing interest to maturity
with full obligation on the part of the City to pay interest at the bond rates
from and after maturity until the bonds, both principal and interest, are
paid in full and shall mature in accordance with the following schedule:
Bond Numbers
(Inclusive)
Amounts
Maturities
1 to 2
$10,000
December 1 ,
1968
3 to 4
10,000
December 1,
1969
5 to 6
10,000
December 1,
1970
7 to 8
10,000
December 1,
1971
9 to 10
10,000
December 1,
1972
11 to .13
15,000
December 1,
1973
14 to 16
15,000
December 1,
1974
17 to 19
15,000
December 1,
1975
20 to 22
15,000
December 1,
1976
23 to 25
15,000
December 1,
1977
26 to 28
15,000
December 1,
1978
29 to 31
15,000
December 1,
1979
32 to 35
20,000
December 1,
1980
36 to 39
20,000
December 1,
1981
40 to 43
20,000
December 1,
1982
44 to 47
20,000
December 1,
1983
48 to 51
20,000
December 1,
1984
52 to 55
20,000
December 1,
1965
56 to 60
25,000
December 1,
1986
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Both principal of and interest on the bonds shall be payable in lawful money
of the United States of America at the office of the City Treasurer of the City
of Kent, Washington.
Section 3. The City of Kent reserves the right to redeem
any or all of the outstanding bonds of such issue at par plus accrued interest
on December 1, 1976, or on any semiannual interest payment date thereafter,
in inverse numerical order, highest numbers first, by publishing notice of
such intended redemption in the official newspaper of the City at least once,
not less than 30 days, not more that 40 days prior to the call date, and interest
on any bonds so called for redemption shall cease on such call date. Notice
of such intended redemption shall also be mailed within the same period ID
the principal underwriter or manager of the account which originally purchases
the bonds and also shall be mailed to Standard & Poor's Corporation and Moody's
Investor Service at their main offices in New York, New York.
Section 4. The City of Kent hereby irrevocably pledges itself
to levy taxes annually, within the constitutional and statutory tax limitations
provided by law, upon all property in the City subject to taxation in an amount
sufficient to pay to the principal of and interest on the bonds as the same
shall accrue, and the full faith, credit and resources of the City are hereby
irrevocably pledged for the payment of the principal of and interest on the
bonds; provided, that the City may, pursuant to RCW 82.36.020, as amended
by Chapter 113 of the 1963 Session Laws of the State of Washington, use toward
the payment of the principal and interest accruing on the bonds, the proceeds
of the one-half cent of additional motor vehicle fuel and use fuel excise
taxes allocated to the City for the construction, improvement and repairing
of arterial highways and matching funds provided the City for such purposes.
form:
No.
Section 5. The bonds shall be in substantially the following
UNITED STATES OF AMERICA
STATE OF WASHINGTON
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$5,000.00
CITY OF KENT
GENERAL OBLIGATION BOND, 1966
°
KNOW ALL MEN BY THESE PRESENTS: That the City
of Kent, Washington, for value received, promises to pay
the bearer on the FIRST DAY OF DECEMBER, 19_,, the principal
sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of
PERCENT (_-%) per annum, until fully paid, payable semi-
annually on the first days of June and December of each year,
interest to maturity being evidenced by and payable upon the
presentation and surrender of the attached interest coupons as
they severally become due up to the bond maturity date with
full obligation on the part of the City to pay interest at the
same rate from and after the bond maturity date in the absence
of coupons until this bond with interest is paid in full. This
bond is payable, both principal and interest, in lawful money
of the United States of America at the office of the Treasurer
of Kent, Washinton.
This bond is one of an issue of $300,000.00 of bonds of like
date, tenor and effect, (except as to interest rates if more than one
interest is bid ) , and is issued by the City of Kent for strictly
municipal purposes, to -wit, to pay a part of the cost and expense
of improving South 212th Street from the Kent City Limits (Russell
Road) to the East Valley Freeway (PSH5 or SR 167) , by constructing
and installing asphaltic concrete pavement of a variable width
from 60 to 72 feet with concrete curbs and gutters and drainage
facilities, as a part of the adopted Arterial Street Program of the
City, all as provided in Ordinances No. 1368 and 13!7and is
issued in full compliance with the ordinances of the City of
Kent and the laws and constitution of the State of Washington.
The City of Kent reserves the right to redeem any or all of
the outstanding bonds of this issue at par plus accrued interest
on December 1, 1976, or on any semiannual interest payment
date thereafter, in inverse numerical order, highest numbers
first, by publishing notice of such intended redemption in the
official newspaper of the City at least once, not less than 30
days, not more than 40 days prior to the call date, and interest
on any bonds so called for redemption shall cease on such call
date. Notice of such intended redemption shall also be mailed
within the same period to[the principal underwriter or manager
of the account which originally purchasesthe bonds] and also
shall be mailed to Standard & Poor's Corporation and Moody's
Investor Service at their main offices in New York, New York.
The City of Kent hereby irrevocably pledges itself to levy
taxes annually, within the constitutional and statutory tax limitations
provided by law, upon all property in the City subject to taxation
in an amount sufficient to pay the principal of and interest on the
bonds of this issue as the same shall accrue, and the full faith,
credit and resources of the City are hereby irrevocably pledged
for the payment of the principal of and interest on the bonds; provided,
that the City may, pursuant to RCW 82.36.020, as amended by
-5-
Chapter 113 of the 1963 Session Laws of the State of Washington,
use toward the payment of the principal and interest accruing
on the bonds of this issue the proceeds of the one-half cent
of additional motor vehicle fuel and use fuel excise taxes allocated
to the City for the construction, improvement and repairing of
arterial highways and matching funds provided the City for such
purposes.
It is hereby certified that all acts, conditions, and things
required to be done precedent to and in the issuance of this
bond have been done, have happened and have been performed
as required by law and that the total indebtedness of the City ,
including this bond issue, does not exceed any constitutional
or statutory limitations.
IN WITNESS WHEREOF, the City of Kent, Washington has
caused this bond to be signed by the facsimile signature of
its Mayor, and attested by the manual signature of its City
Clerk and its corporate seal to be hereto affixed and the interest
coupons attached hereto to be signed by the facsimile signatures
of said officials this first day of December, 1966.
ATTEST:
City Clerk
CITY OF KENT, WASHINGTON
By
Mayor
The form of the interest coupons shall be substantially as follows:
Coupon No.
On the 1st 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, such sum being the
semiannual interest due that day upon its "General Obligation
Bond, 1966" dated December 1, 1966, and numbered
ATTEST:
CITY OF KENT, WASHINGTON
0
City Clerk
Mayor
Section 6. The boncbshall be printed or lithographed on
good bond paper and shall be signed by the facsimile signature of the Mayor
and attested by the manual signature of the Clerk of the City of Kent, Wash-
ington, under the seal of the City and the coupons shall bear the facsimile
Q16C
signatures of the Mayor and the Clerk.
Section 7. There are hereby created and established in
the office of the City Treasurer two special funds to be known and
designated as the "General Obligation Bond Fund, 1966" and the "South
212th Street Construction Fund. " The accrued interest received, if any,
from the sale of the bonds shall be paid into the "General Obligation
Bond Fund, 1966" and the principal proceeds received from the sale of the
bonds, together with the proceeds from the sale of Local Improvement
Bonds of Local Improvement District No. 251 heretofore created and from
the local improvement bonds of a local improvement district contemplated
to be created in connection with the carrying out of the remaining improvement
of South 212th Street, together with the monies received by way of a grant
from the Economic Development Administration of the United States Department
of Commerce pursuant to the Public Works and Economic Development Act
of 1965, (P.L. 89-136) Project No. 07-1-00100, shall be paid into the "South
212th Street Construction Fund" of the City and expended for the purpose of
improving South 212th Street from the Kent City Limits (Russell Road) to the
East Valley Freeway (PSH 5 or SR 167) , by constructing and installing asphaltic
concrete pavements of a variable width from 60 to 72 feet with concrete curbs
and gutters and drainage facilities, as a part of the adopted Arterial Street
Program of the City, and to pay the cost of the issuance and sale of the bonds
authorized herein . All taxes collected for the payment of the principal of
and interest on the bonds and such amount of the proceeds of motor vehicle
fuel and use fuel excise taxes allocated to the City as the City Council
shall provide for deposit into such fund, in amounts sufficient to pay the
principal of and interest on the bonds herein authorized to be issued, shall
be paid into the "General Obligation Bond Fund, 1966". Pending the sale
of the "General Obligation Bonds, 1966",the City may issue warrants upon
the "South 212th Street Construction Fund", to bear interest at the rate of
5 AN % per annum and to be sold to McLean & Co . , Inc. of Tacoma, Washington,
pursuant to its offer to purchase such warrants, which offer is hereby accepted.
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Such warrants shall be paid out of the proceeds from the sale of the "General
Obligation Bonds, 1966, " or any other monies becoming available therefor in
the "South 212 th Street Construction Fund. "
Section 8. The "General Obligation Bonds, 1966" shall be
sold for cash at public sale for not less than par plus accrued interest
upon sealed bids to be received at the office of the City Clerk up to the
day and hour hereafter determined by the City Council and to be included
in a Notice of Bond Sale which the Council shall hereafter direct to be given.
PASSED by the City Council and APPROVED by the Mayor of
the City of Kent, Washington at a regular meeting thereof this 19th day
of September, 1966. ZA
ayor
ATTEST:
=I SIR - M El
W,
FORM APPROVED:
Q'et-07 a, !��
City Attorney