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HomeMy WebLinkAbout2294 Local Improvement Guaranty FundORDINANCE NO. 2~ AN ORDINANCE of the City of Port Townsend providing for the creation and maintenance of a Local Improvement Guaranty Fund; authorizing an interfund loan to fund the Guaranty Fund; and providing for payment into and drawing of warrants against such Fund and withdrawal of money from such fund. WHEREAS, the welfare and best interest of the inhabitants of the City of Port Townsend (the "city") and public necessity and convenience require that local improvement districts be established from time to time in the city; and WHEREAS, Chapter 35.54 of the Revised Code of Washington authorizes the issuance of bonds and warrants for the payment of all or part of the cost of improvements in such districts, and also authorizes the establishment of a guaranty fund to guarantee, to the extent of such fund, payment of local improvement district bonds and warrants of the City. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Port Townsend, Washington, as follows: Section 1. Pursuant to Chapter 35.54 of the Revised Code of Washington, there is hereby created a fund of the City to be known and designated as the "Port Townsend Local Improvement Guaranty Fund" (the "Guaranty Fund") for the purpose of guaranteeing, to the extent of such Guaranty Fund in the manner provided by law and this ordinance, the payment of local improvement bonds and warrants (and to the extent permitted by law any other obligations) hereafter issued to pay the cost of improvements constructed in all local improvement districts of the City. Section 2. In order to maintain said Guaranty Fund, the Council hereby authorizes an interfund loan from the SF~gU~ ~~Fund to the Guaranty Fund in the amount of $10,000. Such loan shall be made on April 15, 1992 and shall be repaid from tax levy payments authorized to be levied to fund the Guaranty Fund. Such loan shall be repaid no later than ~~3 and shall bear interest at a rate of ~ % per annum. It is the goal of the Council to levy taxes and make two additional deposits into the Guaranty Fund so that within three years the amount in the Guaranty Fund will equal at least 8% of the outstanding obligations which are guaranteed by the Fund. The tax levy for payment into the Guaranty Fund in any one year shall not exceed the greater of (1) 12% of the outstanding obligations guaranteed by the Fund, or (2) the total amount of delinquent assessments and interest accumulated on the delinquent assessments before the levy as of September 1. Section 3. The money held in the Guaranty Fund may be invested in any investments that are permitted for the investment of the City's money, and the interest received from such investments and any surplus remaining in any local improvement district fund after payment of all bonds, notes and warrants payable from said fund and guaranteed by the Guaranty Fund shall be paid into the Guaranty Fund. -2- Whenever any sum is paid out of the Guaranty FUnd on account of the principal or interest on a local improvement bond, note or warrant, the City, as trustee of the Guaranty Fund, shall be subrogated to all the rights of the owner of the bond, note or warrant so paid and the proceeds thereof or of the underlying assessment shall become part of the Guaranty Fund. Section 4. Warrants drawing interest at a rate established by the issuing officer under the direction of the City Council shall be issued against the Guaranty Fund to meet any liability accruing against it. The warrants so issued shall at no time exceed 5% of the outstanding obligations guaranteed by the Guaranty Fund. As among the several issues of bonds, notes or warrants guaranteed by the Guaranty Fund, no preference shall exist, and defaulted bonds and warrants against local improvement district funds of the City shall be purchased out of the Guaranty Fund in the order of their presentation. Section 5. The City shall not be liable to any holder or owner of any bond, note or warrant guaranteed by the Guaranty Fund for any loss to the Guaranty Fund occurring in the lawful operation thereof. Section 6. So much of the money of the Guaranty Fund as is necessary for the purpose of protecting the Guaranty Fund may be used to purchase bonds, notes or warrants guaranteed by the Guaranty Fund, or to purchase certificates of delinquency for g~neral taxes on property subject to local improvement assessments which underlie the bonds or warrants guaranteed by -3- the Guaranty Fund, or to purchase such property at tax foreclosures. The Guaranty Fund shall be subrogated to the rights of the City, and the City, acting on behalf of the Guaranty Fund, may foreclose the lien of general tax certificates of delinquency and purchase the property at the foreclosure sale for the account of the Guaranty fund. Whenever the Council shall so cause a lien of general tax certificates of delinquency to be foreclosed and the property to be so purchased at a foreclosure sale, the court costs and costs of publication and expenses for clerical work and/or other expenses incidental thereto shall be chargeable to and payable from the Guaranty Fund. After so acquiring title to real property, the City may lease or sell and convey the same at public or private sale for such price and on such terms as may be determined by the City Council and all proceeds resulting from such sales shall belong to and be paid into the Guaranty Fund. Section 7. By December 31st of each year, the Treasurer shall transfer to the general fund the amount in the Guaranty Fund that exceeds 10% of the amount of the outstanding obligations secured by such fund. Section 8. This ordinance shall be effective from and after its passage and publication as required by law. -4- PASSED by the Council of the City of Port Townsend, Washington, and approved by its Mayor at a regular meeting of the Council this ~ day of April, 1992. Attest: . Clerk f Port Townsend, -5- CLERK'S CERTIFICATE I, the undersigned, the duly chosen, qualified and acting Clerk of the City of Port Townsend, Washington (the "City"), and keeper of the records of the City Council (herein called the "Council"), DO HEREBY CERTIFY: 1. That the attached Ordinance No. (herein called the "Ordinance") is a true and correct copy of an ordinance of the City as finally adopted at a meeting of the Council held on the day of April, 1992, 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 was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the adoption of said Ordinance; that all other requirements and proceedings incident to the proper adoption 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'this day of April, 1992. Clerk J: \N~N\22566-87. O02\C, UAR