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Home My WebLink About2235 Issuance of a Limited Tax General Obligation Bond for Performance Arts Center at Fort Worden Balloon HangarORDINANCE NO. ~2 3 ~ AN ORDINANCE of the City Council of the City of Port Townsend, Washington, providing for the issuance of a limited tax general obligation bond of the City in the aggregate principal amount of $250,000 to finance the cost of constructing and equipping the balloon hangar at Fort Worden for use as a performing arts center; fixing the date, form, terms, maturities and covenants of said bond; and providing for the sale of the bond herein authorized. WHEREAS, the City of Port Townsend, Washington (the "City") deems it necessary and advisable that the City, in conjunction with Jefferson County, the State and Centrum, renovate and equip the balloon hangar at Fort Worden for use as a performing arts center; and WHEREAS, in order to provide the money for such purpose it is deemed necessary and advisable that the City now issue and sell its limited tax levy general obligation bond in the principal amount of $250,000; and WHEREAS, the United States Department of Agriculture, acting through its Farmers Home Administration, has agreed to purchase the Bond authorized herein under the terms and conditions set forth in this ordinance; NOW, THERE~FORE, THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, DO ORDAIN as follows: Section 1. Findinqs. It is hereby found and declared that the public interest, welfare and benefit require that the City renovate and equip the balloon hangar at Fort Worden for use as a performing arts center. Section 2. Authorization of Bond. For the purpose of providing a portion of the financing for the cost of constructing and equipping the performing arts center, the City shall now issue and sell its limited tax general obligation bond (the "Bond") in the aggregate principal amount of $250,000. The Bond shall be designated "City of Port Townsend, Washington, Limited Tax General Obligation Bond, 1991," shall be dated as of the date of delivery thereof to the Government, as the initial purchaser, shall be numbered R-l, shall be in the denomination of $250,000, shall be fully registered, shall bear interest from the date of its issuance on the unpaid principal balance thereof at the rate of 6.25% per annum and shall be repaid in semiannual installments of principal and interest equal to $11,038 each, payable on the first day of the sixth month following the date of delivery of the Bond to the Government as the initial purchaser, and semiannually thereafter on the first day of each six-month period -until all principal installments of the Bond have been paid or such payment has been duly provided for, provided, however, that the final payment of all principal of and interest on the Bond shall nevertheless be due on November 1, 2009. Payments shall be applied first to interest and then to principal. Both principal of and interest on the Bond shall be payable in lawful money of the United States of America to the owner or owners thereof at the address appearing on the registration books of the City maintained by the City Clerk-Treasurer; provided, however, that as long as the Government is the-owner of the Bond, --2-- NMN057 91/04/05 the City shall make payments directly to the financial office of the Government serving the City of Port Townsend, Washington, area. The Bond shall be registered as to both principal and inter- est as long as any of the installments of the Bond remain unpaid, and the City shall maintain in the office of the Clerk-Treasurer books for the registration and transfer of the Bond. No transfer of the Bond so registered shall be valid unless made on said books upon the written request of the registered owner or his duly authorized agent. Section 3. Prepayment. The City hereby reserves the right to prepay principal installments remaining unpaid at the price of par plus accrued interest in whole or in part in inverse order at any time. No advance notice of intended prepayment or redemption shall be required. Section 4. Construction Fund. There is hereby created a special fund of the City to be known as the "Performing Arts Center Construction Fund.~ The proceeds of ~he sale of the Bond shall be paid into such Construction Fund and shall be used to pay the costs of the performing arts center improvements and of issuing the Bond. Money on hand from time to time in the- Construction Fund which are surplus to the immediate needs of the City may be invested in any investments permitted by law. All proceeds of such investments shall be deposited in the Construction Fund and may be applied~to· the costs of such improvements. Any money on -3- NMN057 9t/04/05 hand in the Construction Fund after completion of such improve- ments and payment of all costs relating thereto shall be paid into the Bond Fund created by Section 5 of this ordinance. The money in such Fund shall be used for the purpose provided in this ordinance and, if necessary, for redeeming and retiring any warrants drawn thereon or for reimbursing any other fund or account of the City which may have been drawn upon to pay any part or all of the costs of renovating the performing arts center. Section 5. Bond Fund and Pledqe of Taxes. There is hereby created a special fund of the City known as the #Limited Tax General Obligation Bond Redemption Fund, 1991,# which fund shall be drawn upon for the sole purpose of paying the principal of and interest on the Bond. The City covenants and agrees for as long as the Bond is outstanding and unpaid that each year it will include in its budget and cause to be levied annually a tax upon all the property within the City subject to taxation in an amount which, with other money of the City which may be legally used and which the City applies for such purposes, will be sufficient to pay the principal of and interest on the Bond as the same shall become due. All of such taxes so collected and any of such other money shall be paid into the Bond Redemption Fund, and none of the money therein shall be used for any other purpose that the payment of the principal of and interest on the Bond. -4- NMN057 91/04/05 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 levy permitted the City without 'a vote of the people and that a sufficient portion of each such annual tax to be levied and collected by the City prior to the full payment of the principal of and interest on the Bond will be and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of and interest on the Bond as aforesaid. The full faith, credit and resources of the City are hereby pledged for the annual levy and collection of such taxes and for the prompt payment of the principal of and interest on the Bond as the same shall become due. Section 6. Transfer. The Bond may be transferred by the registered owner thereof, provided that such transfer relates to the entire unpaid principal amount of the Bond, and any such transfer shall be noted on the bond registration books of the City. Section 7. Lost or Destroyed Bond. In case the Bond shall be lost, stolen or destroyed, the City may execute and deliver a new bond of like date, number and tenor to the registered owner thereof in the manner provided by law and upon the owner's paying the expenses and charges of the City in connection therewith. Section 8. Form of Bond. The Bond shall be in substan- tially the following form: --5-- HMH057 91/04/05 NO. R-1 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PORT TOWNSEND LIMITED TAX GENERAL OBLIGATION BOND 1991 $250,000 The City of Port Townsend, Washington (hereinafter called the "City"), a municipal corporation of the State of Washington, acknowledges itself indebted and for value received promises to pay to the Farmers Home Administration, United States Department of Agriculture, or its successor (herein sometimes called the #Payee#), or its registered assigns (herein sometimes called the "Alternate Payee"), the principal sum of TWO HUNDRED AND FIFTY THOUSAND DOLLARS in any coin or currency which is legally acceptable on the respective dates of payments for debts due the United States of America, and to pay interest, from the date hereof, on the balance of said principal from time to time remaining unpaid in like coin or currency at the rate of 6.25% per annum payable in semiannual installments of principal and interest, equal to $11,038, payable on the first day of the sixth month following the date of delivery of this bond and on the first day of each sixth-month period thereafter, until all of such principal installments have been paid or such payment has been duly provided for, provided that the final payment of principal on and interest on this bond shall nevertheless be due on November 1, 2009. As long as the Payee is the registered owner of this bond, payments of principal and interest shall be made by the City Clerk-Treasurer directly to the Payee at the office of the Payee serving the City of Port Townsend, Washington. As long as the Alternate Payee is the registered owner of this bond, said payment shall be made at the office of the City Clerk-Treasurer. Upon final payment of the principal of and interest on this bond, it shall be submitted to the City for cancellation and surrender. Both principal of and interest on this bond are payable solely out of the special fund of the City known as the "Limited Tax General Obligation Bond Redemption Fund, 1991# (herein called the "Bond Fund") created by Ordinance No. of'the City. In addition to the installments of principal required to be · paid by 'the City las hereinabove set 'forth, the City, at its -6- NMN05? 91/0/~/05 option, shall have the right to prepay any or all unpaid principal installments in the inverse order of such installments at any time. No advance notice need be given of any prepayment hereunder. This bond is issued for the purpose of providing a portion of the financing for the renoVation of a performing arts center for the City. The City hereby irrevocably covenants that it will include in its annual budgets and levy taxes annually within and as a part of the tax revenue permitted the City without a vote of the people amounts which, with other moneys of the City legally available therefor, will be sufficient to pay the principal of and interest on this bond as the same shall become due. The full faith, credit and resources of the city are hereby irrevocably pledged for the annual levy of such taxes and for the prompt payment of such principal and interest. Reference is made to the Bond Ordinance for a more complete description of the covenants with and the rights of the owner of this bond. The City hereby covenants and agrees with the owner of this bond that it will keep and perform all the covenants of this bond and of the Bond Ordinance to be by it kept and performed. This bond assignor shall registered mail. may be assigned, and upon promptly notify the City such assignment the Clerk-Treasurer by 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, 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. IN WITNESS WHEREOF, the 'City of Port Townsend, Washington, has caused this bond to be signed on behalf of the City with the manual signature of its Mayor, to be attested by the manual signature of its Clerk, and the seal of the City to be impressed hereon, as of this day of , 1991. CITY OF PORT TOWNSEND, WASHINGTON Mayor -7- NMN057 91/04105 ATTEST: [CITY SEAL] Clerk of the City REGISTRATION CERTIFICATE This bond is registered in the name of the owner on the books of the City in the office of the city Clerk-Treasurer as to both principal and interest as noted in the registration blank below. No transfer hereof shall be valid unless made by the registered owner or his duly authorized agent in writing, and similarly noted hereon and on the bond registration books of the City. All pay~aents of principal of and interest on this bond shall be made by the City with full acquittance by City Clerk- Treasurer's check, or by warrant of the City drawn on the Treasurer, made payable to the last registered owner shown hereon and delivered to such owner or mailed to him at his address noted hereon. Date of Registration Name and Address of Registered Owner Signature of Registrar The Bond shall have endorsed thereon the following forln of assignment: ASSIGNMENT FOR VALUE P~ECEIVED, the undersigned registered owner thereof hereby sells, assigns and transfers the within bond unto DATED . In the presence of: (Repeat this 'forth of assignment) -8- NMN057 91/04/05 Section 9. Execution of the Bond. The Bond shall be signed on behalf of the City with the manual signature of the Mayor, shall be attested by the manual signature of its Clerk, and shall have the corporate seal of the City impressed or imprinted thereon. Section 10. Sale of Bond. The Bond shall be sold to the Government at a price of par on the terms and conditions set forth herein. Section 11. Defeasance. So long as the Bond is not owned by the Government, in the event that money and/or #Government Obligations,# as such Obligations are defined in Ch. 39.53 RCW, as now or hereafter amended, maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money, if necessary) sufficient to pay, redeem and retire the Bond in accordance with its terms, are set aside in a special account to effect such payment, redemption and retirement, and such money and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Redemption Fund for the payment of the principal of and interest on the Bond, and the Bond shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive the money so set aside and pledged, and the Bond shall be deemed not to be.outstanding hereunder.~ -9- NMN057 91/04/05 Section 12. Assessed Valuation. The actual value of the taxable property within the City as ascertained by the last assessment for City purposes is $2&~ q~ W~0 . The City has an existing nonvoted general obligation indebtedness in of $ q7% . Section 13. 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 in this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bond. Section 14. General Authorization. The Mayor and the Clerk and all other appropriate officers of the City are each hereby authorized and directed to take such steps, to do such other acts and things, and to execute such letters, certificates, agreements, papers, financing statements, assignments or instruments as in their judgment may be necessary, appropriate or desirable in order to carry out the terms and provisions of, and complete the transactions contemplated by, this ordinance. Section 15. Prior Acts. All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby ratified and confirmed. -10- NMN057 91/04/05 Section 16. Effective Date. This ordinance shall become effective five days from and after its passage and publication as required by law. PASSED by the Council of the City of Port Townsend, Washington, at a regular meeting thereof held this /~ ~ day of ~1~ , 1991. Clerk CITY OF PORT TOWNSEND, WASHINGTON Mayor Approved as to form: City Attorney -11- NMN057 91/04/05 CERTIFICATE I, the undersigned, Clerk of the City of Port Townsend, Washington (herein called the "City"), DO HEREBY CERTIFY: 1. That the attached ordinance numbered (herein called the "Ordinance") is a true and correct copy of an ordinance of the City as finally passed at a regular meeting of the Council of the City held on the day of , 1991, 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 legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of the Ordinance; that all other requirements and proceedings incident to the proper passage of the 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 , 1991. Clerk [City Seal]