HomeMy WebLinkAbout95-013
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Resolution No. 95- 13
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT
TOWNSEND CONFIRMING APPROPRIATION OF 1956 WATER
REVENUE BOND RESERVE ACCOUNT TO 1995 BUDGET
The City Council of the City of Port Townsend, Washington, does resolve as follows:
WHEREAS, by Ordinance No. 1319, in 1956 the City of Port Townsend accepted
Crown Zellerbach's bid to lease a portion of the City's waterworks and system, whereby the
City obligated itself to make significant system improvements pursuant to the Crown Zellerbach
Lease Agreement; and
WHEREAS, pursuant to Ordinance No. 1321, the City of Port Townsend authorized the
issuance of $2.2 Millon in revenue bonds, to make system improvements required by the Crown
Zellerbach Lease; and
WHEREAS, Ordinance No. 1321 ("the Bond Ordinance") contained certain covenants
and conditions for the purpose of protecting the interest of all bond holders; and
WHEREAS, Section 10 of the Bond Ordinance required that a sum in the amount of
$114,496.50 be set aside in a ;'reserve account," for as long as the revenue bonds were
outstanding; and
WHEREAS, pursuant to the covenants with the Bond Ordinance, the purpose for the
reserve account was to provide assurance to the bond holders that adequate funds were available
for the redemption of the last outstanding bonds, and to fund any deficiency in the 1956 bond
redemption fund to meet maturing bond installments of either interest or principal; and
WHEREAS, pursuant to the Bond Ordinance, the funds set forth in the reserve account
were to have been utilized to pay the principal and interest on, and premium if any, on any
outstanding bonds, with no further payments required to be made into the bond redemption fund
at such time as adequate funds were available to be used to redeem and retire all of the bonds
outstanding; and
WHEREAS, despite the covenants of the Bond Ordinance, after adequate funds were
available within the bond redemption fund account and the reserve account, the City continued
to make payments into the bond redemption fund, causing the continuation of the reserve account
after redemption and retirement of the revenue bonds; and
WHEREAS, all revenue bonds created pursuant to the Bond Ordinance were fully
redeemed and retired on or before April 1, 1986, with all contractual obligations created in favor
of the bond holders fully satisfied on that date, and no "parity" bonds having been issued,
governed by the terms of Ordinance No. 1321; and
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WHEREAS, the reserve account created by the 1956 Bond Ordinance has remained with
the Bond Trustee at First Interstate Bank, accumulating interest thereon, with a balance as of
January 31, 1995 in the amount of $966,451.06; and
WHEREAS, all covenants and obligations within the Bond Ordinance in favor of all
bond holders and any other persons have been fully satisfied, including any obligations and
covenants governing the use and expenditure of the reserve account; and
WHEREAS, in the 1995 City of Port Townsend Budget, established by Ordinance No.
2435, adopted December 19, 1994, the City Council appropriated the 1956 bond reserve account
in Fund No. 416, appropriated in page 121 of Ordinance No. 2435 for Water Capital
Improvements, Water Land Acquisition, Water Quality Control Facilities, and other water
infrastructure related uses; and
WHEREAS, the City Council intends, by this Resolution, to formally confirm the
appropriation of the 1956 bond reserve fund (Fund No. 416) for all expenditures described
within the 1995 Budget,
NOW, THEREFOR, BE IT RESOLVED, by the City Council for the City of Port
Townsend that the Water Revenue Bond Reserve Account established pursuant to Ordinance No.
1321 is hereby appropriated for a11 uses described in the 1995 Budget, and such appropriation
is hereby confirmed by the Council. The City Council directs the First Interstate Bank Bond
Trustee to transfer such funds as directed by the Mayor, in conformance with the 1995 Budget.
Attest:
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Michael Hildt, ~~y Ckrk
ADOPTED by the City Council of the City
on this 6 -rN day of February, 1995.
Oft T°'iiend and signed by the Mayor
(J1/(J1/95 {Res\BonJ95-doç}
Anve i ~s to or'rl:
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-_-Imo" CMahaZ City Attorney
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