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HomeMy WebLinkAbout3201 Providing for the Issuance and Sale of a Limited Tax General Obligation Bond in the Principal Amount of not to Exceed $834,000 to Provide Funding for the Homeward Bound Housing ProjectOrdinance 3201 Page 1 of 6 ORDINANCE NO. 3201 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, PROVIDING FOR THE ISSUANCE AND SALE OF A LIMITED TAX GENERAL OBLIGATION BOND IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $834,000 TO PROVIDE FUNDING FOR THE HOMEWARD BOUND HOUSING PROJECT; FIXING OR SETTING PARAMETERS WITH RESPECT TO CERTAIN TERMS AND COVENANTS OF THE BOND; APPOINTING THE CITY'S DESIGNATED REPRESENTATIVE TO APPROVE THE FINAL TERMS OF THE SALE OF THE BOND; AND PROVIDING FOR OTHER RELATED MATTERS NOW THEREFORE, the City Council of the City of Port Townsend do ordain as follows: Section 1. Definitions. As used in this ordinance, the following capitalized terms shall have the following meanings: "Bond" means the "City of Port Townsend, Washington Limited Tax General Obligation Bond, 2018 (Taxable)" authorized by this ordinance. "Bond Fund" means the debt service fund of the City created for the payment of the principal of and interest on the Bond. "Bond Register" means the registration records for the Bond maintained by the Bond Registrar. "Bond Registrar" means the City Finance Director, whose duties include registering and authenticating the Bond, maintaining the Bond Register, transferring ownership of the Bond, and paying the principal of and interest on the Bond. "City" means the City of Port Townsend, Washington, a municipal corporation duly organized and existing under the laws of the State. "City Council" means the legislative authority of the City, as duly and regularly constituted from time to time. "Designated Representative " means the officer of the City appointed in Section 4 of this ordinance to serve as the City's designated representative in accordance with RCW 39.46.040(2). "Issue Date" means the date of delivery of the Bond to the Purchaser. "Proposal" means the Purchaser's proposal to purchase the Bond. "Purchaser" means Kitsap Bank, or its permitted assigns. Section 2. Debt C qjV. The maximum amount of indebtedness authorized by this ordinance is $834,000. Based on the following facts, this amount is to be issued within the amount permitted to be issued by the City for general municipal purposes. (1) The assessed valuation of the taxable property within the City as ascertained by the last preceding assessment for City purposes for collection in the calendar year 2018 is $1,528,558,379. (2) As of May 1, 2018, the City had limited tax general obligation indebtedness, consisting of bonds outstanding in the principal amount of $19,460,000, Ordinance 3201 Page 2 of 6 which is incurred within the limit of up to 1'/z% of the value of the taxable property within the City permitted for general municipal purposes without a vote. (3) As of May 1, 2018, the City has unlimited tax general obligation indebtedness for capital purposes only outstanding in the principal amount of $1,700,000 for general municipal purposes; $-0- for City -owned water, artificial light, and sewers; and $ -0- for acquiring or developing open space, park facilities, and capital facilities associated with economic development. Section 3. Authorization of the Bond. The City is authorized to borrow money on the credit of the City and issue a limited tax general obligation bond evidencing indebtedness in the aggregate principal amount not to exceed $834,000 to provide funds necessary to finance eight low income rental housing units to be owned and operated by Homeward Bound CLT the Homeward Bound CLT and to pay the costs of issuance and sale of the Bond. Section 4. Description of the Bond; Appointment of Designated Representative. The Finance Director, or the City Manager in the absence of the Finance Director, is appointed as the Designated Representative of the City and is authorized and directed to approve the final terms of the Bond, with such additional terms and covenants as the Designated Representative deems advisable, within the following parameters: (a) Principal Amount. The Bond shall not exceed the aggregate principal amount of $834,000. (b) Date or Dates. The Bond shall be dated as of the Issue Date, which date shall not be later than December 31, 2018. (c) Interest Rate. The Bond shall bear interest at a fixed interest rate of 4.85%, calculated on a 360 -day year consisting of 12 30 -day months from its date or from the most recent interest payment date for which interest has been paid or duly provided for, whichever is later. (d) Payment Dates. Interest will be payable semiannually on each June 1 and December 1 beginning December 1, 2018, followed by semiannual interest and principal payments due on each June 1 and December 1 beginning June 1, 2020. (e) Final Maturity. The Bond shall mature 22 years from the Issue Date. (f) Other Terms and Conditions. (1) The Bond may not be issued if it would cause the indebtedness of the City to exceed the City's legal debt capacity on the Issue Date. (2) The Bond may be sold in accordance with Section 12 of this ordinance. (3) The Designated Representative may accept such additional terms, conditions and covenants as he or she may determine are in the best interests of the City, consistent with this ordinance. Section 5. Bond Registrar; Registration and Transfer of Bonds. Pursuant to RCW 39.46.030(4) the City's Finance Director shall serve as initial fiscal agent for the City (the "Bond Registrar") with respect to the Bond and is authorized, on behalf of the City, to authenticate and deliver the Bond in accordance with the provisions of the Bond Ordinance 3201 Page 3 of 6 and this ordinance. The Bond shall be issued only in registered form as to both principal and interest and shall be recorded on books or records maintained by the Bond Registrar (the "Bond Register"). The Bond Register shall contain the name and mailing address of the owner of the Bond. Upon a determination by the Finance Director that maintenance of the duties of the Bond Registrar is no longer convenient, the fiscal agent of the State of Washington shall act as Bond Registrar. The Bond Registrar shall keep, or cause to be kept, at its office, sufficient books for the registration, assignment or transfer of the Bond, which books shall be open to inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Bond transferred or exchanged in accordance with the provisions of the Bond and this ordinance, to serve as the City's paying agent for the Bond and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificate of Authentication on the Bond. The Bond may be assigned or transferred only in whole by the Purchaser to a single investor that is a financial institution or an entity that is a qualified institutional buyer within the meaning of the applicable federal securities laws and who signs a purchaser certificate substantially in the form signed by the Purchaser. When the Bond has been paid in full, both principal and interest, the Bond shall be surrendered to the Bond Registrar, who shall cancel the Bond. Section 6. Form and Execution of the Bond. (a) Form of the Bond; Signatures and Seal. The Bond shall be prepared in a form consistent with the provisions of this ordinance and Washington law. The Bond shall be signed by the Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If any officer whose manual or facsimile signature appears on the Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is authenticated by the Bond Registrar, or issued or delivered by the City, the Bond nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. The Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on its Issue Date. (b) Authentication. Only the Bond bearing a Certificate of Authentication in substantially the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: "Certificate of Authentication. This Bond is the fully registered City of Port Townsend, Washington, Limited Tax General Obligation Bond, 2018 (Taxable)." Ordinance 3201 Page 4 of 6 The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. Section 7. Payment or the 1:Ion'd. Principal of and interest on the Bond shall be payable in lawful money of the United States of America. Principal of and interest on the Bond is payable by electronic transfer on the payment date, or by check or draft of the Bond Registrar mailed on the payment date to the Purchaser at the address appearing on the Bond Register on the record date. The Bond is not subject to acceleration under any circumstances. Section 8. Bond Fund. The debt service fund (the "Bond Fund") of the City is created for the sole purpose of paying principal of and interest on the Bond. All amounts allocated to the payment of the principal of and interest on the Bond shall be accounted for separately and shall be deposited in the Bond Fund as necessary for the timely payment of amounts due with respect to the Bond. The principal of and interest on the Bond shall be paid out of the Bond Fund. Until needed for that purpose, the City may invest money in the Bond Fund temporarily in any legal investment, and the investment earnings shall be retained in the Bond Fund and used for the purposes of that fund. Section 9. Prepayment. The Bond shall be subject to prepayment at the option of the City, in whole or in part, on any business day, upon 15 days' notice to the Purchaser, at a prepayment price equal to 100% of the principal amount prepaid plus accrued interest to the date of prepayment. Partial prepayments shall be applied to the amount due on the next payment date and on each successive payment date thereafter until all principal of and interest on the Bond is prepaid in full. Section 10. Failure to Pay the Bond. If the principal of the Bond is not paid when the Bond is properly presented at its maturity or date fixed for prepayment, the City shall be obligated to pay interest on the Bond at the same rate provided in the Bond from and after its maturity or date fixed for prepayment until the Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust account established to refund or defease the Bond, and the Bond has been called for payment by giving notice of that call to the Purchaser. Section 111. Pledge of Taxes. The Bond constitutes a general indebtedness of the City and is payable from tax revenues of the City and such other money as is lawfully available and pledged by the City for the payment of principal of and interest on the Bond. For as long as the Bond is outstanding, the City irrevocably pledges that it shall, in the manner provided by law within the constitutional and statutory limitations provided by law without the assent of the voters, include in its annual property tax levy amounts sufficient, together with other money that is lawfully available, to pay principal of and interest on the Bond as the same become due. The full faith, credit and resources of the City are pledged irrevocably for the prompt payment of the principal of and interest on the Bond and such pledge shall be enforceable in mandamus against the City. Ordinance 3201 Page 5 of 6 Section 12. e Sale of the Bond. The sale of the Bond to the Purchaser, under or within the terms of this ordinance and the Proposal to purchase the Bond, is hereby approved. A pricing certificate shall set forth the final terms of the Bond. The Designated Representative is authorized to execute the pricing certificate on behalf of the City, so long as the terms provided therein are consistent with the terms of this ordinance. Section 13. Reporting, Requirements.. While the Bond is outstanding, the City shall submit to the Purchaser (a) its annual financial reports within 30 days after receipt of such annual financial report from the Washington State Auditor, (b) its budget for each fiscal year after it is adopted by the City Council and (c) such additional information as the Purchaser may reasonably request. Submission by the City by posting items (a) and (b) on the City's website is acceptable. Section 14. Governirt& LqA. The Bond shall be governed and interpreted according to the laws of Washington. Section 15. General Authorization and Ratirication. The City Manager, Finance Director, City Clerk and other appropriate officers of the City are severally authorized to take such actions and to execute such documents as in their judgment may be necessary or desirable to carry out the transactions contemplated in connection with this ordinance, and to do everything necessary for the prompt delivery of the Bond to the Purchaser thereof and for the proper application, use and investment of the proceeds of the Bond. All actions taken prior to the effective date of this ordinance in furtherance of the purposes described in this ordinance and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects. Section 16. Sever abil�mt . The provisions of this ordinance are declared to be separate and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any person or circumstance, such offending provision shall, if feasible, be deemed to be modified to be within the limits of enforceability or validity. However, if the offending provision cannot be so modified, it shall be null and void with respect to the particular person or circumstance, and all other provisions of this ordinance in all other respects, and the offending provision with respect to all other persons and all other circumstances, shall remain valid and enforceable. Section 17. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five days following its publication as required by laws Ordinance 3201 Page 6 of 6 ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 7th day of May, 2018. Attest: Joanna Sanders, MMC City Clerk eboral S. Sti ri n Mayor Approved as to Form: Steven L. Gross City Attorney