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HomeMy WebLinkAbout2116 Limited Tax General Obligtion BondsCITY OF PORT TOWNSEND, WASHINGTON LIMITED TAX GENERAL OBLIGATION BONDS, 1988 $630,000 ORDINANCE NO. 2116 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, PROVIDING FOR THE ISSUANCE AND SALE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE PRINCIPAL SUM OF $630,000 FOR THE PURPOSE OF PROVIDING FUNDS TO FINANCE THE ACQUISI- TION OF FIRE EQUIPMENT; PROVIDING THE DATE, FORM, TERMS AND MATURITIES OF SAID BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF SUCH BONDS; PROVIDING FOR THE ANNUAL LEVY OF TAXES TO PAY THE PRINCIPAL OF AND INTEREST ON SAID B~NDS; AND PROVIDING FOR THE SALE THEREOF. PASSED: June 7, 1988 Prepared by: PRESTON, THORGRIMSON, ELLIS & HOLMAN 5400 COLUMBIA SEAFIRST CENTER 710 FIFTH AVENUE SEATTLE, WASHINGTON 98104-7011 CITY OF PORT TOWNSEND, WASHINGTON ORDINANCE NO. 2116 TABLE OF CONTENTS* Recitals ................................................... SECTION 1. SECTION 2. SECTION 3. SECTION 4. SECTION 5. SECTION 6. SECTION 7. SECTION 8. SECTION 9. SECTION 10. SECTION 11. SECTION 12. SECTION 13. SECTION 14. SECTION 15. SECTION 16. SECTION 17. Definitions ................................. Findings and Authorization of Acquisition of Equipment ................. Authorization of Bonds ...................... Registration, Payment and Transfer .......... Redemption .................................. Creation of Bond Fund and Provision for Tax Levy Payments ....................... Defeasance .................................. Arbitrage Covenant .......................... Bonds Are "Qualified Tax-Exempt Obligations" ................................ Lost or Destroyed Bonds ..................... Form of the Bonds ........................... Execution of the Bonds ...................... Application of Proceeds of Bonds ............ Sale of the Bonds ........................... Assessed Value and Existing Bonded Debt ..... Severability ................................ Effective Date .............................. Page 1 1 2 3 4 5 10 10 10 14 15 15 16 16 16 *Neither this Table of Contents nor the preceding cover paqe is a part of this ordinance. ORDINANCE NO. 2116 AN ORDINANCE of the City Council of the City of Port Townsend, Washington, providing for the issuance and sale of limited tax general obligation bonds of the City in the principal sum of $630,000 for the purpose of providing funds to finance the acquisi- tion of fire equipment; providing the date, form, terms and maturities of said bonds; providing for the disposition of the proceeds 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 (the "Council") of the City of Port Townsend, Washington (the "City"), deems it necessary and in the best interest of the City and its citizens that new fire trucks and related equipment be purchased; and WHEREAS, at a special election held on September 15, 1987, a majority of the electors voted to authorize the City to levy regular property taxes for 10 years in excess of the 106~ limita- tion for the purpose of acquiring new fire trucks and related equipment; and WHEREAS, in order to provide the funds required for the acquisition of such equipment, the City now desires to authorize the issuance of limited tax levy general obligation bonds in the principal amount of $630,000; and WHEREAS, the Council has received and considered an offer from Seattle-Northwest Securities Corporation to purchase such bonds and has determined that it is in the best interest of the City to sell such bonds to such firm at a negotiated sale; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, 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 Townsend Limited Tax General Obligation Bond Redemption Fund, 1988" created by Section 6 of this ordinance. (b) "Bond Register" means the books or records main- tained by the Bond Registrar for the registration and transfer of the Bonds containing the name and mailing address of the owner of each Bond or nominee of such owner and such other information as the Bond Registrar shall determine. (c) "Bond Registrar" means the fiscal agency of the State of Washington, in Seattle, Washington, and New York, New York, designated herein as Bond Registrar to register and authen- ticate the Bonds, maintain the Bond Register, effect transfer of ownership of the Bonds and pay principal of and interest on the Bonds. (d) "Bonds" means the $630,000 principal amount of the City of Port Townsend, Washington, Limited Tax General Obligation Bonds, 1988, issued pursuant to and for the purposes provided in this ordinance. (e) "City" means the City of Port Townsend, Washington, a municipal corporation duly organized and existing under and by virtue of the Constitution and laws of the State of Washington. (f) "Construction Fund" means the "1988 Fire Equipment Construction Fund" created by Section 13 of this ordinance. (g) "Council" means the general legislative authority of the City as the same shall be duly and regularly constituted from time to time. (h) "Treasurer" means the Treasurer of the City of Port Townsend, Washington, or any successor to the functions of such Treasurer. SECTION 2. Findings and Authorization of Acquisition of Equipment. It is hereby found and declared that the public interest', welfare and benefit of the~ inhabitants of the City -2- NMN681 88/06/07 require that the City acquire a new ladder/pumper truck and a new pumper truck for the Port Townsend Fire Department as authorized by Ordinance No. 2075 passed on July 21, 1987. The estimated cost of the above improvements and all costs incidental thereto and to the issuance of the Bonds is hereby declared to be as nearly as practicable the sum of $630,000, which shall be provided from the proceeds of sale of the Bonds. SECTION 3. Authorization of Bonds. The City hereby autho- rizes the issuance and sale of the Bonds in the aggregate prin- cipal amount of $630,000 to provide financing of the cost of the equipment described in Section 2 hereof 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 Townsend, Washington, Limited Tax General Obligation Bonds, 1988"; shall be dated June 1, 1988; shall be issued in fully registered form in the denomination of $5,000 or any integral multiple thereof, provided that no Bond shall represent more than one maturity; shall be numbered separately and in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification and control; shall bear interest at the following rates from their date, until the Bonds have been paid or their payment duly provided for, payable on December 1, 1988, 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 Principal Interest Amount Rate 1988 $70,000 5.20% 1989 60,000 5.70 1990 65,000 6.00 1991 70,000 6.20 1992 70,000 6.40 1993 75,000 6.60 1994 80,000 6.80 1995 85,000 6.90 I996 55,000 7.00 -3- NMN681 88/06/07 Interest shall be computed on the basis of a year of 360 days consisting of twelve 30-day months. SECTION 4. Registration, Payment and Transfer. The City hereby specifies and adopts the system of registration 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 authenticating trustee, transfer agent, paying agent and registrar for the Bonds (collectively, the "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 authenticate and deliver Bonds transferred or exchanged in accor- dance 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 Bondowners. 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 paid 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 -4- NMN681 88/06/07 date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds to the Bond Registrar by the registered owners or nominees at the principal offices of the Bond Registrar 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 transferee in exchange therefor. 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. Such transfer or exchange shall be without cost to the registered owner or trans- feree. 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. SECTION 5. Redemption. The City hereby reserves the right to redeem the outstanding Bonds on or after December 1, 1995, in whole at any time, or in part on any interest payment date (matur- ities to be selected by the City and by lot within a maturity in such manner as the Bond Registrar shall determine), 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 in accordance with this section. 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 -5- NMN681 88/06/07 unredeemed balance 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 of the denominations authorized by this ordinance. Notice of any such intended redemption shall be given not less than thirty (30) nor more than sixty (60) days prior to the date fixed for redemption 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 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. Each official notice of redemption shall be dated and shall state: (i) the title of the Bonds to be redeemed, the redemption date, the place or places of redemption and the redemption price or redemption premium, if any, payable upon such redemption; (ii) if less than all the Bonds of a particular series are to be redeemed, the distinctive numbers of the Bonds to be redeemed; (iii) that the interest on the Bonds, or on the principal amount thereof to be redeemed, designated for redemption in such notice shall cease to accrue from and after such redemption date; and (iv) that on such date there will become due and payable on each such Bond the principal amount thereof to be redeemed and the interest accrued on such principal amount to the redemption date. If less than the entire principal amount of a Bond is to be redeemed, the notice of redemption shall also state the principal amount thereof to be redeemed and that such Bond must be surrendered to the Bond Registrar in exchange for the payment of the principal amount thereof to be redeemed and the issuance of a new Bond or Bonds equal in principal amount to that portion of the principal amount not to be redeemed of the Bond to be surrendered. -6- NMN681 88/06/07 In addition to the foregoing official notice, further notice shall be given as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed above. 1. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (i) the CUSIP numbers of all Bonds being redeemed; (ii) the date of issue of the Bonds as originally issued; (iii) the rate of interest borne by each Bond being redeemed; (iv) the maturity date of each Bond being redeemed; and (v) any other descriptive information needed to identify accurately the Bonds being redeemed. 2. Each further notice of redemption may be sent at least thirty-five (35) days before the redemption date by registered or certified mail or overnight delivery service to Standard & Poor's Corporation or Moody's Investors Service in New York, New York, or their business successors, to all registered securities deposi- tories then in the business of holding substantial amounts of obligations of types comprising the Bonds and to one or more national information services that disseminate notices of redemp- tion of obligations such as the Bonds. 3. Each such further notice may be published one time in the Bond Buyer of New York, New York, or, if such publication is impractical or unlikely to reach a substantial number of the owners of the Bonds, in some other financial newspaper or journal that regularly carries notices of redemption of other obligations similar to the Bonds, such publication to be made at least thirty (30) days prior to the date fixed for redemption. 4. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and -7- NMN681 88/06/07 maturity, the Bonds being redeemed with the proceeds of such check or other transfer. SECTION 6. Creation of Bond Fund and Provision for Tax Levy Payments. A special fund of the City known as the "City of Port Townsend Limited Tax General Obligation Bond Redemption Fund, 1988" (the "Bond Fund"), is hereby authorized and directed to be created in the office of the Treasurer. The Bond Fund shall be drawn upon for the sole purpose of paying the principal of and interest on the Bonds. 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, within and as a part of the tax millage levy permitted to cities without a vote of 60% of qualified electors voting on the proposition to levy such tax, upon all the property within the City subject to taxation in an amount which will be sufficient, together with all other revenues and money 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 money so collected shall be paid into the Bond Fund. None of the money in the Bond Fund shall be used for any other purpose than the payment of the principal of and interest on the Bonds. Money 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 money. Any interests or profit from the investment of such money shall be deposited in the Bond Fund. The City hereby irrevocably pledges 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 -8- NMN681 88/06/07 will be and is hereby irrevocably set aside, pledged and appro- priated 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. SECTION 7. 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 or a portion of the Bonds in accordance with their terms, are set aside in a special account to effect such redemption or retirement and such money and the principal of and interest on such 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 8. Arbitrage Covenant. The City hereby covenants and agrees with the owners 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 or obligations of the City which may be deemed to be proceeds of the Bonds pursuant to Section 148 of the Internal Revenue Code of 1986 and the appli- cable regulations thereunder which, if such use had reasonably been expected on the date of delivery of the Bonds to the initial purchaser thereof, would have caused the Bonds to be "arbitrage bonds" within the meaning of said section and said regulations_ The City will comply with the requirements of Section 148 of the Internal Revenue Code of 1986 (or any successor provision thereof -9- NMN681 88/06/07 applicable to the Bonds) and the applicable regulations thereunder throughout the term of the Bonds. SECTION 9. Bonds Are "Qualified Tax-Exempt Obligations." The City hereby designates the Bonds as "qualified tax-exempt obligations" as defined in Section 265(b) of the Internal Revenue Code of 1986. SECTION 10. 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 Registrar in connection therewith and upon his/her 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 11. 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 TOWNSEND LIMITED TAX GENERAL OBLIGATION BOND, 1988 INTEREST RATE: SEE REVERSE SIDE FOR ADDITIONAL PROVISIONS REGISTERED OWNER: MATURITY DATE: CUSIP NO: PRINCIPAL AMOUNT: DOLLARS The City of Port Townsend, Washington, a municipal corpora- tion organized and existing under and by virtue of the laws and Constitution of the State of Washington (the "City"), hereby -10- NMN681 88/06/07 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 December 1, 1988, 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 Regis- tered Owner hereof at the address appearing on the records main- tained 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 surren- der of this bond at the principal offices of the fiscal agency of the State of Washington in Seattle, Washington or New York, New York (collectively, the "Bond Registrar"). 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 this bond 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 permit- ted to cities without a vote of 60~ of qualified electors voting on the proposition to levy such tax, upon all the property subject to taxation in amounts sufficient, together with all other money legally available therefor, to pay the principal of and interest on the bonds 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 Townsend, 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 -11- NMN681 88/06/07 the City to be reproduced or impressed hereon, as of this 1st day of June, 1988. CITY OF PORT TOWNSEND, WASHINGTON [SEAL] ATTEST: By Mayor Clerk of the City The Certificate of Authentication for the Bonds shall be in substantially the following form and shall appear on the front of each Bond: CERTIFICATE OF AUTHENTICATION Date of Authentication: This bond is one of the bonds described in the within- referenced Ordinance No. 2116 of the City of Port Townsend, Washington, and is one of the Limited Tax General Obligation Bonds, 1988, dated June 1, 1988, 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 obliga- tion 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 $630,000, issued pursuant to Ordinance No. 2116 of the City, passed June 7, 1988 (the "Bond Ordinance"), to provide financing for the acquisition of fire equipment. The outstanding bonds of this issue are subject to redemption prior to their maturity on or after December 1, 1995, in whole at any time or in part on any interest payment date, maturities to be selected by the City and by lot within a maturity in such manner as the Bond Registrar shall determine, at par plus accrued inter- est 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 in accordance with the foregoing paragraph. If less than all of the principal amount of any bond is redeemed, upon surre~nder 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 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 of the denominations authorized by this ordinance. -12- NMN681 88/06/07 Notice of any such intended redemption shall be given not less than thirty (30) nor more than sixty (60) days prior to the date fixed for redemption 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 for such notice 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 any bonds 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 presentation made pursuant to such call. 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 Bond Ordinance. The Bonds have been designated as "qualified tax-exempt obligations" for banks, thrift institutions and other financial institutions. 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 this bond and for any and all other purposes whatsoever. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF TRANSFEREE / / (Please print or typewrite name and address, including zip code of Transferee) the within bond and all rights thereunder and does hereby irrevoc- ably constitute and appoint of , or its successor, as agent to transfer said bond on the books kept by the Bond Register for -13 - NMN681 88/06/07 registration thereof, premises. DATED: with full power of substitution in the NOTE: The signature of this Assign- ment 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. SIGNATURE GUARANTEED: SECTION 12. Execution of the Bonds. The Bonds shall be signed on behalf of the City by the facsimile or manual signature of the Mayor, shall be attested by the facsimile or manual signa- ture of the City Clerk, and shall have a facsimile of 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 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 -14- NMN681 88/06/07 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 13. Application of Proceeds of Bonds. There is hereby created a special fund of the City to be known as the "1988 Fire Equipment Construction Fund" (the "Construction Fund"). At the time of delivery of the Bonds, the proceeds of the Bonds shall be deposited as follows: (a) The accrued interest, if any, to the date of delivery shall be deposited to the Bond Fund and used to pay a portion of interest on the Bonds on December 1, 1988. (b) The remaining proceeds shall be deposited in the Construction Fund and used to pay costs of the equipment described in Section 2 hereof and all costs incidental thereto and to the issuance of the Bonds. Money remaining in the Construction Fund after all of such costs 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. Money in the Construction 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 14. Sale of the Bonds. The City hereby accepts the offer of Seattle-Northwest Securities Corporation, Seattle, Washington, dated June 7, 1988, to purchase the Bonds at the terms and under the conditions contained herein and in said offer. The City officials, their agents and representatives are hereby authorized and directed to do everything necessary for the prompt issuance and delivery of the Bonds and for the proper use and application of the proceeds of such sale. -15- NMN681 88/06/07 SECTION 15. Assessed Value and Existing Bonded Debt. The actual value of the taxable property within the City as ascer- tained by the last assessment for City purposes is $235,585,125. The total amount of outstanding general obligation bonded indebt- edness of the City, whether voted or nonvoted, including the principal amount of the Bonds, is $630,000. SECTION 16. 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 17. Effective Date. This ordinance shall take effect and be in force after its passage, approval and publication as required by law. PASSED by the City Council of the City of Port Townsend, Washington, at a regular open public meeting thereof, this 7th day of June, 1988. City Clerk CITY OF PORT TOWNSEND, WASHINGTON Mayor ~ -16- NMN681 88/06/07 CERTIFICATE I, the undersigned, Clerk of the City of Port Townsend, Washington (herein called the "City") and keeper of the records 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. 2116 of the City (herein called the "Ordinance"), as finally passed at a meeting of the City Council of the City held on the 7th day of June, 1988, 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 7th day of June, 1988. Clerk, City of Port Townsend [City Seal] NMN681 88/06/07