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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