HomeMy WebLinkAbout2346CITY OF PORT ANGELES, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BONDS, 1985
$2,400,000
ORDINANCE NO. 49
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT
ANGELES, WASHINGTON, PROVIDING FOR THE ISSUANCE AND
SALE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE
CITY IN THE PRINCIPAL SUM OF $2,400,000, FOR THE
PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF
CONSTRUCTING AND EQUIPPING A NEW CITY HALL: PRO-
VIDING THE DATE, FORM, TERMS AND MATURITIES OF SAID
BONDS; PROVIDING FOR THE DISPOSITION OF THE PRO-
CEEDS OF SALE OF SUCH BONDS; PROVIDING FOR THE
ANNUAL LEVY OF TAXES TO PAY THE PRINCIPAL OF AND
INTEREST ON SAID BONDS; AND PROVIDING FOR THE SALE
THEREOF.
Prepared By:
PASSED: June 18, 1985
PRESTON, THORGRIMSON, ELLIS & HOLMAN
SEATTLE, WASHINGTON
•
CITY OF PORT ANGELES, WASHINGTON
ORDINANCE NO.
TABLE OF CONTENTS*
Page
Recitals 1
SECTION 1. Definitions 1
SECTION 2. Findings and Authorization of Project 2
SECTION 3. Authorization of Bonds 3
SECTION 4. No Right of Prior Redemption 5
SECTION 5. Creation of Bond Fund and Provision for Tax
Levy Payments 6
SECTION 6. Defeasance 8
SECTION 7. Arbitrage Covenant 8
SECTION 8. Lost or Destroyed Bonds 8
SECTION 9. Form of the Bonds 9
SECTION 10. Execution of the Bonds 13
SECTION 11. Bond Registrar 14
SECTION 12. Application of Proceeds of Bonds 14
SECTION 13. Sale of the Bonds 15
SECTION 14. Assessed Value and Existing Bonded Debt 15
SECTION 15. Severability 16
SECTION 16. Effective Date 16
*Neither this Table of Contents nor the preceding cover page is a
part of this ordinance.
•
ORDINANCE NO.
AN ORDINANCE of the City Council of the City of Port
Angeles, Washington, providing for the issuance and
sale of limited tax general obligation bonds of the
City in the principal sum of $2,400,000, for the
purpose of providing funds to pay the cost of
constructing and equipping a new city hall; pro-
viding the date, form, terms and maturities of said
bonds; providing for the disposition of the pro-
ceeds of sale of such bonds; providing for the
annual levy of taxes to pay the principal of and
interest on said bonds; and providing for the sale
thereof.
WHEREAS, the City Council of the City of Port Angeles,
Washington (the "Council "), deems it necessary and in the best
interest of the citizens of the City of Port Angeles, Washington
(the "City "), to construct and equip a new city hall and to
acquire a site therefor; and
WHEREAS, in order to provide the funds required for such
improvements, it is deemed necessary and advisable that the City
issue and sell its limited tax levy general obligation bonds in
the principal amount of $2,400,000;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT
ANGELES, WASHINGTON, DO ORDAIN AS FOLLOWS:
SECTION 1. Definitions. As used in this ordinance, the
following words shall have the following meanings, unless a
different meaning clearly appears from the context:
(a) "Bond Fund" means the "City of Port Angeles
Limited Tax General Obligation Bond Redemption Fund, 1985"
created by Section 5 of this ordinance;
(b) "Bond Register" means the books or records main-
tained by the Bond Registrar containing the name and mailing
address of the owner of each Bond or nominee of such owner and
the principal amount and number of Bonds held by each owner or
nominee;
(c) "Bond Registrar" means the fiscal agencies of the
State of Washington, currently Seattle -First National Bank,
Seattle, Washington, and J. Henry Schroder Bank & Trust Company,
New York, New York, or any fiscal agent of the State of
Washington that may hereafter be designated as successor to such
banks;
(d) "Bonds" means the $2,400,000 principal amount of
the City of Port Angeles, Washington, Limited Tax General
Obligation Bonds, 1985, issued pursuant to this ordinance for the
purpose of paying the costs of the Project;
(e) "City" means the City of Port Angeles, Washington,
a municipal corporation duly organized and existing under and by
virtue of the Constitution and laws of the State of Washington;
(f) "Council" means the general legislative authority
of the City as the same shall be duly and regularly constituted
from time to time;
(g) "Construction Fund" means the City Hall Con-
struction Fund created by Section 12 of this Ordinance.
(h) "Project" means the acquisition, construction and
equipping of a new city hall and acquisition of a site therefor
as authorized by and described in Section 2 of this ordinance;
(1) "Treasurer" means the Treasurer of the City of
Port Angeles, Washington, or any successor to the functions of
such Treasurer.
SECTION 2. Findings and Authorization of Project. It is
hereby found and declared that the public interest, health and
-2- FWW:WORK38:13
safety, welfare and benefit of the inhabitants of the City
require the City to acquire and construct the following
improvements:
(a) The City shall acquire, construct, install and
equip a new city hall and acquire such lands and interests in
lands for such purpose, including a site, as shall be determined
to be necessary by the Council. Such city hall shall be complete
with all utilities, parking facilities, landscaping, site
improvements, equipment, furnishings and all other facilities and
appurtenances as are determined to be necessary by the Council.
(b) The estimated cost of the construction and
acquisition of said improvements and of all costs incidental
thereto and to the issuance of the Bonds is hereby declared to be
as nearly as practicable the sum of $2,400,000, which shall be
provided from the proceeds of sale of the Bonds.
In the event sufficient funds are unavailable to acquire,
construct and improve the entire Project, the City reserves the
right to acquire, construct and improve only those portions as
the Council deems necessary and advisable.
SECTION 3. Authorization of Bonds. The City hereby autho-
rizes the issuance and sale of the Bonds in the aggregate prin-
cipal amount of $2,400,000 to provide the funds necessary to pay
part of the cost of the Project and all costs incidental thereto
and to the issuance of the Bonds. The Bonds shall be general
obligations of the City, shall be designated "City of Port
Angeles, Washington, Limited Tax General Obligation Bonds, 1985,"
shall be dated August 1, 1985; shall be issued in fully
registered form in the denomination of $5,000 or an integral
multiple thereof, provided that no Bond shall represent more than
one maturity; shall be numbered separately and in the manner and
with any additional designation as the Bond Registrar deems
-3- FWW :WORK38:13
w
necessary for purposes of identification; shall bear interest
from their date, until the Bonds have been paid or their payment
duly provided for, at such rate or rates per annum as shall be
hereafter fixed by resolution of the Council, payable on June 1,
1986, and semiannually thereafter on the first day of each June
and December; and shall mature on December 1 of each year as
follows:
Maturity Year
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Principal
Amount
$30,000
$115,000
$120,000
$130,000
$140,000
$150,000
$160,000
$170,000
$185,000
$200,000
$220,000
$240,000
$260,000
$280,000
The City hereby specifies and adopts the system of registra-
tion for the Bonds approved by the State Finance Committee, and
the fiscal agencies of the State of Washington in the cities of
Seattle, Washington, and New York, New York, shall act as authen-
ticating trustee, transfer agent, paying agent and registrar for
the Bonds (collectively, the "Bond Registrar "). 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
fiepaid by check or draft of the Bond Registrar mailed (on the date
such interest is due) to the registered owners or nominees at the
addresses appearing on the Bond Register on the fifteenth (15th)
day of the month preceding each interest payment date. Principal
of the Bonds shall be payable upon presentation and surrender of
the Bonds to the Bond Registrar by the registered owners or
-4- FWW:WORK38:13
nominees at the principal offices of either of the fiscal
agencies of the State of Washington in the cities of Seattle,
Washington, or New York, New York.
The Bonds may be transferred only on the Bond Register
maintained by the Bond Registrar for that purpose upon the sur-
render thereof by the registered owner or nominee or his /her duly
authorized agent and only if endorsed in the manner provided
thereon, and thereupon a new fully registered Bond of like prin-
cipal amount, maturity and interest rate shall be issued to the
in exchange therefor. Such transfer shall be without cost to the
registered owner or transferee. The City may deem the person in
whose name each Bond is registered to be the absolute owner
thereof for the purpose of receiving payment of the principal of
and interest on such Bonds and for any and all other purposes
whatsoever.
Upon surrender thereof to the Bond Registrar, the Bonds are
interchangeable for Bonds in any authorized denomination of an
equal aggregate principal amount and of the same interest rates
and maturities.
SECTION 4. Redemption of Bonds. The City reserves the
right to redeem any or all of the outstanding Bonds in inverse
order of maturities (and by lot within a maturity in increments
of $5,000 with the manner of selection to be as chosen by the
Bond Registrar) on any interest payment date on and after
December 1, 1995, at par plus accrued interest to the date of
redemption. Portions of the principal amount of any Bond, in
installments of $5,000 or any integral multiple of $5,000, may be
redeemed. If less than all of the principal amount of any Bond
is redeemed, upon surrender of such Bond at the principal office
of the Bond Registrar there shall be issued to the registered
owner, without charge therefor, for the then unredeemed balance
-5- FWW:WORK38:13
of the principal amount thereof, a new Bond or Bonds, at the
option of the registered owner, of like maturity and interest
rate in any denomination authorized by this resolution.
Notice of any such intended redemption shall 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 regis-
tered owner of any Bond to be redeemed at the address appearing
on the Bond Register. The requirements of this section shall be
deemed to be complied with when notice is mailed as herein
provided, regardless of whether or not it is actually received by
the owner of any Bond. The interest on the Bond so called for
redemption shall cease to accrue on the date fixed for redemption
unless such Bond or Bonds so called are not redeemed upon presen-
tation made pursuant to such call. In addition, such redemption
notice shall also be mailed within the same time period, postage
prepaid, to Standard & Poor's Corporation and Moody's Investors
Service, Inc., at their offices in New York, New York, or to
their business successors, if any. The mailing of such notice
shall not, however, be a condition precedent to the call of any
of the Bonds for redemption, and failure to give such notice
shall not affect the right of the City to redeem the Bonds called
for redemption in the manner set forth in the preceding
paragraph.
SECTION 5. Creation of Bond Fund and Provision for Tax Levy
Payments. A special fund of the City known as the "City of Port
Angeles Tax General Obligation Bond Redemption Fund, 1985" (the
"Bond Fund "), is hereby authorized and directed to be created in
the office of the City Treasurer. The Bond Fund shall be drawn
upon for the sole purpose of paying the principal of and interest
on the Bonds.
-6- FWW :WORK38:13
The City hereby irrevocably covenants and agrees for as long
as any of the Bonds are outstanding and unpaid, that each year it
will include in its budget and levy an ad valorem tax upon all
the property within the City subject to taxation in an amount
which will be sufficient, together with all other revenues and
moneys of the City which may legally be used and which the City
may apply for such purposes, to pay the principal of and interest
on the Bonds as the same shall become due. All of such taxes and
any of such other moneys so collected shall be paid into the Bond
Fund. None of the moneys in the Bond Fund shall be used for any
other purpose than the payment of the principal of and interest
on the Bonds. Moneys in the Bond Fund not needed to pay the
interest or principal next coming due may temporarily be
deposited in such institutions or invested in such obligations as
may be lawful for the investment of City moneys. Any interests
or profit from the investment of such moneys shall be deposited
in the Bond Fund.
The City hereby irrevocably pledges that the annual tax
provided for herein to be levied for the payment of such
principal and interest shall be within and as a part of the tax
millage levy permitted to cities without a vote of the people,
and that a sufficient portion of each annual levy to be levied
and collected by the City prior to the full payment of the
principal of and interest on the Bonds will be and is hereby
irrevocably set aside, pledged and appropriated for the payment
of the principal of and interest on the Bonds.
The full faith, credit and resources of the City are hereby
irrevocably pledged for the annual levy and collection of said
taxes and for the prompt payment of the principal of and interest
on the Bonds as the same shall become due.
•
-7- FWW:WORK38:13
SECTION 6. Defeasance. In the event that money and /or
"Government Obligations," as such Obligations are now or may
hereafter be defined in Ch. 39.53 RCW, maturing at such time or
times and bearing interest to be earned thereon in amounts suffi-
cient to redeem and retire the Bonds in accordance with their
terms, are set aside in a special account to effect such redemp-
tion or retirement and such money and the principal of and inter-
est on such Government Obligations are irrevocably set aside and
pledged for such purpose, then no further payments need be made
into the Bond Fund for the payment of the principal of and
interest on the Bonds so provided for and such Bonds shall cease
to be entitled to any lien, benefit or security of this ordinance
except the right to receive the funds so set aside and pledged,
and such Bonds shall be deemed not to be outstanding hereunder.
SECTION 7. Arbitrage Covenant. The City hereby covenants
and agrees with the owners and holders of the Bonds for as long
as any of the same remain outstanding that it will not make use
of the proceeds of sale of the Bonds or any other funds of the
City which may be deemed to be proceeds of the Bonds pursuant to
Section 103 of the Internal Revenue Code and the applicable
regulations thereunder which would cause the Bonds to be
"arbitrage bonds" within the meaning of said section and said
regulations. The City will comply with the requirements of
subsection (c) of Section 103 of the Internal Revenue Code and
the applicable regulations thereunder throughout the term of the
Bonds.
SECTION 8. Lost or Destroyed Bonds. In case the Bonds or
any of them shall be lost, stolen or destroyed, the Bond
Registrar may execute and deliver a new Bond or Bonds of like
amount, date, and tenor to the registered owner thereof upon the
owner's paying the expenses and charges of the City and the Bond
-8- FWW:WORK38:13
A
1
Registrar in connection therewith and upon his filing with the
Treasurer and the Bond Registrar evidence satisfactory to said
Treasurer and Bond Registrar that such Bond or Bonds were
actually lost, stolen or destroyed and of his /her ownership
thereof, and upon furnishing the City and Bond Registrar with
indemnity satisfactory to the Treasurer and Bond Registrar.
SECTION 9. Form of the Bonds. The Bonds shall be in sub-
stantially the following form:
UNITED STATES OF AMERICA
NO. $
STATE OF WASHINGTON
CITY OF PORT ANGELES
LIMITED TAX GENERAL OBLIGATION BOND, 1985
INTEREST RATE:
MATURITY DATE: CUSIP NO:
SEE REVERSE SIDE FOR CERTAIN DEFINITIONS
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Port Angeles, Washington, a municipal corpo-
ration organized and existing under and by virtue of the laws and
Constitution of the State of Washington (the "City "), hereby
acknowledges itself to owe and for value received promises to pay
to the Registered Owner identified above, or registered assigns,
on the Maturity Date identified above, the Principal Amount
specified above, unless redeemed prior thereto as provided
herein, together with interest on such Principal Amount from the
date hereof or the most recent date to which interest has been
paid or duly provided for at the Interest Rate set forth above
payable June 1, 1985, and semiannually thereafter on each June 1
and December 1 until payment of the principal sum has been made
or duly provided for. Both principal of and interest on this
bond are payable in lawful money of the United States of America.
Interest on this bond is payable by check or draft of the Bond
Registrar mailed (on the date such interest is due) to the
Registered Owner hereof at the address appearing on the records
maintained by the Bond Registrar as of the fifteenth (15th) day
of the month preceding the interest payment date. Principal
shall be paid to the registered owner hereof upon presentation
and surrender of this bond at the principal offices of either of
the fiscal agencies of the State of Washington in Seattle,
Washington or New York, New York (collectively, the "Bond
Registrar ").
-9- FWW:WORK38:13
Reference is hereby made to additional provisions of this
bond set forth on the reverse side hereof and such additional
provisions shall for all purposes have the same effect as if set
forth in this space. Reference also is made to the Bond
Ordinance (hereinafter defined) as more fully describing the
covenants with and the rights of registered owners of the bonds
or registered assigns and the meanings of capitalized terms
appearing on the bonds which are defined in such ordinance.
This bond shall not be valid or become obligatory for any
purpose or be entitled to any security or benefit under the Bond
Ordinance (as hereinafter defined) until the Certificate of
Authentication hereon shall have been manually signed by the Bond
Registrar.
The City hereby irrevocably covenants and agrees with the
owner of this bond that it will include in its annual budget and
levy taxes annually within and as a part of the tax levy
permitted to cities without a vote of the electorate, amounts
sufficient, together with all other moneys legally available
therefor, to pay the principal of and interest on the bond as the
same shall become due. The full faith, credit and resources of
the City are hereby irrevocably pledged for the annual levy and
collection of such taxes and the prompt payment of such principal
and interest.
It is hereby certified and declared that this bond is issued
pursuant to and in strict compliance with the Constitution and
laws of the State of Washington and ordinances of the City, that
all acts, conditions and things required to be done precedent to
and in the issuance of this bond and the bonds of this issue have
happened, been done and performed and that this bond and the
bonds of this issue do not exceed any Constitutional or statutory
limitations.
IN WITNESS WHEREOF, the City of Port Angeles, Washington,
has caused this bond to be signed on behalf of the City with the
facsimile signature of the Mayor, to be attested by the facsimile
signature of the Clerk of the City, and a facsimile of the seal
of the City to be reproduced or impressed hereon, as of this 1st
day of August, 1985.
CITY OF PORT ANGELES, WASHINGTON
By
Mayor
i
ATTEST:
Clerk of the City
FWW :WORK38 :13
e
•
CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This bond is one of the bonds described in the within -
referenced Ordinance No. of the City of Port Angeles,
Washington, and is one of the Limited Tax General Obligation
Bonds, 1985, dated August 1, of such city.
WASHINGTON STATE FISCAL AGENCY As
Bond Registrar
By
Authorized Officer
ADDITIONAL BOND PROVISIONS
This bond is one of an issue of limited tax general
obligation bonds of the City of like date and tenor, except as to
number, interest rate and date of maturity, in the aggregate
principal amount of $2,400,000, issued pursuant to Ordinance No.
of the City, passed June 18, 1985 (the "Bond Ordinance "),
to provide funds to pay for the construction, equipping and
acquisition of a new City Hall.
The City has reserved the right to redeem any or all of the
outstanding bonds of this issue in inverse order of maturities
(and by lot within a maturity in increments of $5,000 with the
manner of selection to be as chosen by the Bond Registrar) on
December 1, 1995, or on any interest payment date thereafter, at
par plus accrued interest to the date of redemption.
Notice of any such intended redemption shall be given not
less than 30 nor more than 60 days prior to the redemption date
by first class mail, postage prepaid, to the registered owner of
any bond to be redeemed at the address appearing on the Bond
Register. The requirements of the Bond Resolution shall be
deemed to be complied with when notice is mailed as herein
provided, regardless of whether or not it is actually received by
the owner of any bond. Interest on all of such bonds so called
for redemption shall cease to accrue on the date fixed for
redemption unless such bond or bonds so called for redemption are
not redeemed upon presentation made pursuant to such call. In
addition, such redemption notice shall be mailed within the same
time period to Moody's Investors Service, Inc., and Standard &
Poor's Corporation at their offices in New York, New York, or
their successors, if any. Such mailing of notice shall not,
however, be a condition precedent to the redemption of such
bonds.
Portions of the principal sum of this bond in installments
of $5,000 or any integral multiple thereof may also be redeemed
in accordance with the provisions set forth above, and if less
than all of the principal sum hereof is to be redeemed, upon the
surrender of this bond at the principal office of the Bond Regis-
trar there shall be issued to the registered owner, without
charge therefor, for the then unredeemed balance of the principal
sum hereof, at the option of the owner, a bond or bonds of like
-11- FWW:WORK38:13
maturity and interest rate in any of the denominations authorized
by the Bond Resolution.
The pledge of tax levies for payment of principal of and
interest on the bonds may be discharged prior to maturity of the
bonds by making provision for the payment thereof on the terms
and conditions set forth in the ordinance authorizing their
issuance.
The bonds of this issue are issued in fully registered form
in the denomination of $5,000 each or any integral multiple
thereof, provided that no bond shall represent more than one
maturity. Upon surrender to the Bond Registrar, bonds are inter-
changeable for bonds in any authorized denomination of an equal
aggregate principal amount and of the same interest rate and
maturity. This bond is transferable only on the records main-
tained by the Bond Registrar for that purpose upon the surrender
of this bond by the registered owner hereof or his /her duly
authorized agent and only if endorsed in the manner provided
hereon, and thereupon a new fully registered bond of like prin-
cipal amount, maturity and interest rate shall be issued to the
transferee in exchange therefor. Such exchange or transfer shall
be without cost to the registered owner or transferee. The City
may deem the person in whose name this bond is registered to be
the absolute owner hereof for the purpose of receiving payment of
the principal of and interest on the bond and for any and all
other purposes whatsoever.
The following abbreviations, when used in the inscription on
the face of the within Bond, shall be construed as though they
were written out in full according to applicable laws or regu-
lations.
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with
right of survivorship and not as tenants in common
UNIF GIFT MIN ACT - Custodian
(Cust) (Minor)
under Uniform Gifts to Minors
Act
(State)
Additional abbreviations may also be used although not
listed above.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns
and transfers unto
PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER
OF TRANSFEREE
-12- FWW :WORK38:13
(Please print or typewrite name and address, including zip code
of Transferee)
lit the within bond and all rights thereunder and does hereby irrevo-
cably constitute and appoint of
, or its successor, as Agent to
transfer said bond on the books kept by the Bond Register for
registration thereof, with full power of substitution in the
premises.
DATED: , 19
SIGNATURE GUARANTEED:
NOTE: The signature of this
Assignment must correspond with the
name of the registered owner as it
appears upon the face of the within
bond in every particular, without
alteration or enlargement or any
change whatever.
SECTION 10. Execution of the Bonds. The Bonds shall be
signed on behalf of the City by the facsimile signature of the
Mayor, shall be attested by the facsimile signature of the City
Clerk, and shall have the official corporate seal of the City
impressed or imprinted thereon.
Only such Bonds as shall bear thereon a Certificate of
Authentication in the form hereinbefore recited, manually
executed by the Bond Registrar, shall be valid or obligatory for
any purpose or entitled to the benefits of this ordinance. Such
Certificate of Authentication shall be conclusive evidence that
the Bonds so authenticated have been duly executed, authenticated
and delivered hereunder and are entitled to the benefits of this
ordinance.
In case either of the officers of the City who shall have
executed the Bonds shall cease to be such officer or officers of
the City before the Bonds so signed shall have been authenticated
-13- FWW:WORK38:13
i
or delivered by the Bond Registrar, or issued by the City, such
Bonds may nevertheless be authenticated, delivered and issued and
upon such authentication, delivery and issuance, shall be as
binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Bond may also be
signed and attested on behalf of the City by such persons as at
the actual date of execution of such Bond shall be the proper
officers of the City although at the original date of such Bond
any such person shall not have been such officer.
SECTION 11. Bond Registrar. The Bond Registrar shall keep,
or cause to be kept, at its principal corporate trust office,
sufficient records for the registration and transfer of the Bonds
which shall at all times be open to inspection by the City. The
Bond Registrar is authorized, on behalf of the City, to authenti-
cate and deliver Bonds transferred or exchanged in accordance
with the provisions of such Bonds and this ordinance and to carry
out all of the Bond Registrar's powers and duties under this
ordinance.
The Bond Registrar shall be responsible for its representa-
tions contained in the Certificate of Authentication on the
Bonds. The Bond Registrar may become the owner of any 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 depositary for and
permit any of its officers or directors to act as a member of, or
in any other capacity with respect to, any committee formed to
protect the rights of Bond owners.
SECTION 12. Application of Proceeds of Bonds. The City
Hall Construction Fund is hereby created as a special fund of the
City. At the time of delivery of the Bonds, the proceeds of the
Bonds shall be deposited as follows:
-14- FWW :WORK38:13
(a) The accrued interest to the date of delivery shall
be deposited to the Bond Fund and used to pay a portion of the
interest on the Bonds coming due on June 1, 1986.
(b) The balance of the proceeds shall be deposited in
the Construction Fund and used to pay the costs of the Project,
all costs incidental thereto, and to the issuance of the Bonds.
Moneys remaining in the Construction Fund after all of
the costs of the Project have been paid or reimbursed may be used
to pay costs of other legally authorized expenditures of the City
or shall be deposited in the Bond Fund. Moneys in the Con-
struction Fund may be invested as permitted by law. All interest
earned and profits derived from such investments shall be
retained in and become a part of the Construction Fund.
SECTION 13. Sale of the Bonds. The bonds shall be sold at
such time, in such manner, and at such price as shall hereafter
be determined by resolution of the Council.
The appropriate City officials, agents and representatives
are hereby authorized and directed to do everything necessary for
the execution and delivery of the Bonds, and for the proper use
and application of the proceeds of the sale thereof. The City
Director of Administration and Finance is hereby authorized and
directed to review and approve on behalf of the City an official
statement for the issuance of the Bonds, to make such changes as
he deems appropriate, and to execute and deliver such official
statement on behalf of the City.
SECTION 14. Assessed Value and Existing Bonded Debt. The
actual value of the taxable property within the City as ascer-
tained by the last preceding assessment for City purposes is
$561,637,214. The principal amount of the outstanding nonvoted
general obligation indebtedness of the City adjusted to include
the amount of the Bonds is $3,140,092 as of June 18, 1985. The
-15- FWW :WORK38:13
.1
total amount of outstanding general obligation bonded
indebtedness of the City, whether voted or nonvoted, including
the principal amount of the Bonds, as of June 18, 1985, is
$4,730,092.
SECTION 15. Severability. If any one or more of the cove-
nants or agreements provided in this ordinance to be performed on
the part of the City shall be declared by any court of competent
jurisdiction to be contrary to law, then such covenant or cove-
nants, agreement or agreements, shall be null and void and shall
be deemed separable from the remaining covenants and agreements
of this ordinance and shall in no way affect the validity of the
other provisions of this ordinance or of the Bonds.
SECTION 16. Effective Date. This ordinance is immediately
necessary for the support of City government and its existing
public institutions and shall take effect and be in force five
days from and after its passage, approval and publication as
required by law.
PASSED by the City Council of the City of Port Angeles,
Washington, at a regular open public meeting thereof, this 18th
day of June, 1985.
ATTEST:
CITY OF PORT ANGELES, WASHINGTON
rafeti itlighe.4,
Gr oea-n
City Clerk
CERTIFICATE
Mayor
flu„u-L41,._ • pu,..3 A, 9Z5-
I, the undersigned, Clerk of the City of Port Angeles,
Washington (herein called the "City ") and keeper of the records
-16- FWW:WORK38:13
1
of the City Council of the City (herein called the "Council "), DO
HEREBY CERTIFY:
1. That the attached ordinance is a true and correct copy
of Ordinance No. of the City (herein called the "Ordi-
nance"), as finally passed at a meeting of the City Council of
the City held on the 18th day of June, 1985, and duly recorded in
my office.
2. That said meeting was duly convened and held in all
respects in accordance with law, and to the extent required by
law, due and proper notice of such meeting was given; that a
quorum of the Council was present throughout the meeting and a
legally sufficient number of members of the City Council voted in
the proper manner for the passage of said Ordinance; that all
other requirements and proceedings incident to the proper
adoption or passage of said Ordinance have been duly fulfilled,
carried out and otherwise observed, and that I am authorized to
execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of the City this day of June, 1985.
[City Seal]
Clerk, City of Port Angeles
-17- FWW:WORK38:13
i
MEMORANDUM
June 13, 1985
iiiTO: Dave Flodstrom, Mayor Whidden and Councilmembers
FROM: Rob Orton, Director, Finance & Administrjjy Services
RE: Consideration of Gambling Tax Amendment
ISSUE: Shall the City reduce present municipal gambling taxes?
BACKGROUND: At the last regular meeting, the City Council directed staff
to meet with members of the Trade Stimulant Association (who had earlier
petitioned the Council for repeal of the tax) and attempt to arrive at a
mutually agreeable means of reforming present City gambling tax rates.
ANALYSIS: The City Manager and I have met with members of the Associa-
tion on two occasions and arrived at what we believe to be a suitable
compromise. It is as follows:
A. Reduce the gross tax on punchboard and pulltab revenue to 3% from 5%
(we have eliminated the possibility of basing the tax on net re_
ceipts; this is prohibited by State statute).
B. Reduce the net tax on bingo activities to 5% from 10 %.
C. Exempt charitable organizations and not - for - profit organizations
from a tax on raffles for the first two raffle events held each
year.
D. Leave the fees and taxes on cardrooms and amusement devices
unchanged.
E. Provide that the City has a guaranteed minimum revenue base of
$50,000 per year. In any year in which gambling receipts fall below
the $50,000 revenue limit, the Council would increase the gambling
and bingo taxes to a level that would restore the guaranteed revenue
base, up to the statutorily permitted gambling tax rates.
1984 marks the year of the highest receipt level since the tax was
established in 1975. The first quarter experience in 1985 suggests that
we may well repeat 1984 experience this year. Consequently, we have
based our impacts on 1984 experience.
IPReducing the tax on punchboards and pulltabs by 2% would represent a loss
of about $15,000 against 1984 experience. The 5% reduction on bingo
would amount to approximately $11,000. However, because the City would
be guaranteed a base of $50,000 annually, we would expect to lose access
to revenues in the range of $8,000 to $10,000, changes in the economy
notwithstanding.
In discussions with the State Gambling Commission, recent legislation
affecting the price for punchboards and pulltabs may have a positive
effect on State -wide gambling tax sales. If so, we would hope that the
economy would respond sufficiently to off -set revenue which the City
would lose in the short run.
`We believe this to be an acceptable and workable compromise, benefitting
both the City's interests and those organizations and businesses in the
City which host gambling activities.
RECOMMENDATION: We recommend that the City Council act favorably upon
the attached ordinance which would implement the new tax rates discussed
above.
REO:LF
Attachment
cc: Merri Lannoye
Duane Wolfe