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HomeMy WebLinkAbout1229RT HF 6 -8 -50 6 ORDINANCE NO. l229 AN ORDINANCE of the City of Port Angeles, Washington, providing for the issuance and sale of water revenue refunding bonds of the city in the total principal sum of $405,000 for the purpose of refunding and retiring all of the outstanding bonds of the water revenue refunding bond issue of 1944, creating a special fund for the payment of the principal and interest of the refunding bonds herein authorized, fixing the date, form, terms and maturities thereof, confirming the sale thereof and the call for redemption of said outstanding bonds heretofore made, and declar- ing an emergency. WHEREAS, the City of Port Angeles now has outstanding and unpaid its water revenue refunding bonds in the total principal sum of $405,000 issued under date of July 1, 1944, bearing interest at the rate of 2% per annum, maturing serially each year in varying amounts on January 1, 1951 through January 1, 1960, and numbered 166 to 570, inclusive; and WHEREAS, the terms and covenants of said outstanding bonds provide that they may be called for redemption on any interest payment date on and after July 1, 1949 by giving thirty days' notice of such intended redemption by publication thereof once a week for three successive weeks in the official newspaper of said city, which notice of call has been heretofore authorized and published; and WHEREAS, The First National Bank in Port Angeles and associates have agreed to purchase from the city the refunding bonds authorized herein, $282,000 of the same to bear interest at the rate of 1 5/8$ per annum and the remaining $123,000 to bear interest at the rate of 2% per annum, thus effecting a substantial savings in interest cost to the city over the life of said bonds; NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of Port Angeles, Washington, as follows: 1. • • Section 1. That for the purpose of providing funds to refund the outstanding water revenue refunding bonds of the city in the principal sum of $405,000 issued under date of July 1, 1944, bearing interest at the rate of 2% per annum, maturing serially each year in varying amounts on January 1, 1951 through January 1, 1960, and num- bered 166 to 570 inclusive, the city shall now issue and sell its water revenue refunding bonds in the principal amount of $405,000. Said refunding bonds shall be dated July 1, 1950, shall be in denominations of $1,000 each, and shall be numbered from 1 to 405 inclusive. Bonds numbered 1 to 282 inclusive, maturing from July 1, 1951 through July 1, 1957, shall bear interest at the rate of 1 5/8% per annum, and bonds numbered 283 to 405 inclusive, maturing from July 1, 1958 through July 1, 1960, shall bear interest at the rate of 2% per annum, all of said interest being payable semiannually on the first days of January and July of each year. Said bonds shall mature in order of their number as follows: July 1, 1951 $40,000 July 1, 1952 40,000 July 1, 1953 40,000 July 1, 1954 40,000 July 1, 1955 40,000 July 1, 1956 $41,000 July 1, 1957 41,000 July 1, 1958 41,000 July 1, 1959 41,000 July 1, 1960 41,000 Both principal and interest of said bonds shall be payable in lawful money of the United States of America at the office of the City Treasurer in Port Angeles, Washington, solely out of the special Bond Redemption Fund created Tg this ordinance. The City of Port Angeles hereby reserves the right to redeem any or all of the outstanding bonds of this issue at par in inverse numerical order on any interest payment date on and after five years from date thereof by giving thirty days' notice of such intended redemption by one publication thereof in the official newspaper of the city not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to 2• • The First National Bank in Port Angeles, Port Angeles, Washington. Interest on any bond or bonds so called for redemption shall cease on such redemption date. form: Section 2. Said bonds shall be in substantially the following NO. UNITED STATES OF AMERICA 1,000 STATE OF WASHINGTON, CITY OF PORT ANGELES WATER REVENUE REFUNDING BOND, 1950 KNOW ALL MEN BY THESE PRESENTS: That the City of Port Angeles, a municipal corporation of the State of Washington, hereby acknowledges itself to owe and for value received promises to pay to bearer on the first day of July, 19, the principal sum of ONE THOUSAND DOLLARS with interest thereon at the rate of % per annum payable semiannually on the first days of January and July of each year as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become due. Both principal and interest are payable in lawful money of the United States of America at the office of the City Treasurer in Port Angeles, Washington, solely out of the special fund of the city known as "Port Angeles 1950 Water Revenue Refunding Bond Redemption Fund" created by Ordinance No. /..2.t7 of the city. The City of Port Angeles has reserved the right to redeem any or all of the outstanding bonds of this issue at par in inverse numerical order on any interest payment date on and after five years from date hereof by giving thirty days' notice of such intended redemption by one publication thereof in the official newspaper of the city not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to The First National Bank in Port Angeles, Port Angeles, Washington. This bond is one of an issue of water revenue refunding bonds of the City of Port Angeles in the total principal sum of $Ll05,000, and is issued for the purpose of providing funds to refund and retire water revenue refunding bonds of the city issued under date of July 1, 1944, in a like principal amount, and is payable solely out of the gross revenue of the water system of the city. 3 The City of Port Angeles hereby covenants and agrees with the holder of this bond that it will keep and perform all the covenants of this bond and of said Ordinance No. fa 2.1 to be by it kept and performed. The city does hereby pledge and bind itself to set aside from the gross revenue of said water system and all additions and im- provements thereto, and to pay into said Bond Redemption Fund, the various amounts required by said ordinance to be paid into and maintained in said Fund, all within the times provided by said ordinance. Said amounts so pledged are hereby declared to be a prior lien and charge upon the gross revenue of said water system and all additions and improvements thereto, superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of said system. The City of Port Angeles has further bound itself to maintain said system in good condition and repair, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect rates and charges for water that will provide sufficient revenue to pay the necessary cost of maintenance and operation of said system and to pay into said Bond Redemption Fund the amounts which the city has pledged to be set aside therein. It is hereby certified and declared that said bonds are issued pursuant to and in strict compliance with the Constitution and Laws of the State of Washington and Ordi- nances of the City of Port Angeles, and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed as required by law. IN WITNESS WHEREOF, the City of Port Angeles has caused this bond to be signed by its Mayor and attested by its Clerk under the corporate seal of the city, and the in- terest coupons attached hereto to be signed with the facsimile signatures of said officials this first day of July, 1950. ATTEST: CITY OF P RT ANGELES, W HINGTON By . 4e - City Clerk Mayor The interest coupons to be attached to said bonds shall be in substantially the following form: 4. NO. On the first day of , 19_, the City of Port Angeles, Washington, will pay to bearer at the office of the City Treasurer in Port Angeles the sum of DOLLARS in lawful money of the United States of America out of a special fund of the city known as "Port Angeles 1950 Water Revenue Refunding Bond Redemption Fund ", said sum being the semiannual interest due that day on its Water Revenue Refunding Bond dated July 1, 1950, and numbered ATTEST: CITY OF RT ANGELES, ij(ASHINGTON By Cr ecr City Clerk Section 3. Said bonds shall be signed on behalf of the city by its Mayor and attested by the City Clerk under the corporate seal of the city, and the interest coupons attached to said bonds shall be signed with the facsimile signatures of said officials. Section 4. That there be and is hereby created in the office of the City Treasurer a special fund to be known as "Port Angeles 1950 Water Revenue Refunding Bond Redemption Fund ", which fund is to be drawn upon for the sole purpose of paying the principal and interest of the water revenue refunding bonds authorized herein. The City of Port Angeles hereby obligates and binds itself to set aside and pay into said Bond Redemption Fund out of the gross revenue of its water system and all additions and improvements thereto, certain fixed amounts necessary to pay the principal of and interest on all of the outstanding bonds authorized herein as the same respectively become due and payable. Such payments shall be made into said Bond Redemption Fund on or before the twentieth day of each month in the amounts hereinafter speci- fied: 5 (a) Beginning with July, 1950, and continuing as long as any of the bonds authorized herein are outstanding and unpaid, an amount equal to at least one -sixth of the interest to become due and payable at the end of the next ensuing 6- months period on all of the said outstanding bonds; (b) Beginning with July, 1950, and continuing as long as any of the bonds authorized herein are outstanding and unpaid, an amount equal to at least one - twelfth of the principal of said bonds to become due and payable on the next principal payment date. Said amounts so pledged are hereby declared to be a prior lien and charge upon the gross revenue of said water system and all addi- tions and improvements thereto, superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of said system. Section S. The corporate authorities of the City of Port Angeles hereby declare that in creating such Bond Redemption Fund and fixing the amounts to be paid therein, they have exercised due regard to the cost of operation and maintenance of said water system and have not obligated the city to set aside into said Bond Redemption Fund a greater amount of the revenue of such system than in their judgment will be available over and above such cost of maintenance and operation. Section 6. The City of Port Angeles covenants with the owner and holder of each of said bonds as follows: (a) That it will establish, maintain and collect rates and charges for water for as long as any of the bonds authorized herein are outstanding that will be adequate to provide sufficient revenue to meet all obligations of the city as herein set forth, including the cost of the maintenance and o peration of said water system and 6. 1 • the payment of the amounts necessary to pay the principal of and interest on said bonds. (b) That it will at all times maintain and keep said water system and all additions and improvements thereto in good repair, working order and condition, and that it will at all times operate such properties and the business in connection therewith in an ef- ficient manner and at a reasonable cost. (c) That it will not sell or otherwise dispose of the properties of such water system unless provision is made for payment into the Bond Redemption Fund of a sum sufficient to pay the principal and interest of all the outstanding bonds authorized herein in accordance with the terms thereof. Section 7. The sale of the bonds authorized herein to The First National Bank in Port Angeles and associates, under the terms of said bonds as herein provided, is hereby in all respects ratified and confirmed. The money received from the sale of the bonds authorized herein shall be paid into the special fund of the city known as "Port Angeles Water Revenue Refunding Bond Fund of 1944 ", created by Ordinance No. 1127 of the city, and shall be used solely for the purpose of refunding and retiring the outstanding water revenue refunding bonds of the city issued under date of July 1, 1944, as heretofore provided in Section 1 of this ordinance. The proper officials of the city are hereby authorized and directed to do everything necessary for the prompt execution, issuance and delivery of these bonds and for the proper use and application of the funds derived from such sale. Section 8. The action of the city officials in heretofore 7. publishing a notice calling said outstanding water revenue refunding bonds for redemption on July 1, 1950, as required by the terms and covenants of said outstanding bonds, is hereby in all respects ratified 11 and confirmed. Section _9. This ordinance is declared to be one necessary for the immediate preservation of the public peace, property, health and safety of tine people Of the City of Port Angeles, Washington. An emergency is hereby declared to exist, and this ordinance is hereby declared to be in full force and effect from and after its passage, approval and pub- lication as provided by law. PASSED by the City Commission of the City of Port Angeles and approved by its Mayor this 0+4 day of June, 1950. CITY OF P T AELES, SW HINGTON By NG/���' Mayor ATTEST: VED AS TO FORM: City Attorney �zc b l is/ d 3uh e 2 3 /? 8.