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HomeMy WebLinkAboutOrdinance 03-039 Tax & Revenue Anticipation Note K548142100001V CC'UMCO o3e 5 • ORDINANCE NO. 39 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SPOKANE VALLEY, OF SPOKANE COUNTY, WAS_llINGTON,PROVIDING FOR Th E ISSUANCE AND SALE OF A TAX AND REVENUE ANTICIPATION NOTE OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $1,000,000; PROVIDING FOR THE DISPOSITION OF THE PROCEEI)S'OF SALE OF SUCH NOTE; FIXING TIME DATE, FORM, INTEREST RATE, TERMS, MATURITY AND COVENANTS OF SUCH NOTE; CREATING A NOTE ACCOUNT FROM WHICH THE PRINCIPAL OF AND INTEREST ON SUCH NOTE SHALL BE PAID; CONFIRMING THE SALE OF SUCH NOTE TO FARMERS.& MERCHANTS BANK OF ROCKFORD; AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO ' • CITY OF SPOKANE VALLEY Spokane County, Washington TAX AND REVENUE ANTICIPATION NOTE, 2003 Principal Amount of Not to Exceed $1,000,000 • WHEREAS, at a special election the formation of the City of Spokane Valley, Washington (the "City")was approved; and WHEREAS, the City needs money to finance the costs of operating and maintaining the City pending receipt of taxes and other revenues; and WHEREAS, RCW 39.46.050 authorizes local governments to establish lines of credit with any qualified public depository to be drawn upon in exchange for its obligations; and • WHEREAS, pending receipt of taxes and other revenues, it is in the best interests of the residents of the City that the City issue a tax and revenue anticipation note to pay for the City's operation and maintenance expenses; and WHEREAS, Farmers & Merchants Bank of Rockford, of Spokane Valley, Washington, has offered to purchase the note; and WHEREAS, the City Council deems it in the best interest of the City that it sell the note to such purchaser; • NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SPOKANE VALLEY, WASHINGTON, DO ORDAIN AS FOLLOWS: • Section 1. Definitions. As used in this Ordinance, the following terms shall have the following meanings: • "City" means the City of Spokane Valley, Washington. "Clerk" or"City Clerk" shall mean the de facto or de jure City Clerk of the City, or other officer of the City who is the custodian of the seal of the City and of the records of the A proceedings of the City Council, or his/her successor in function, if any. • "Council" means the general legislative body of the City as the same shall be duly constituted from time to time. "Finance Director" shall mean the Finance Director of the City. • "Issuing Officer" means the Mayor of the City, the City Administrator, or City Finance Director or Finance Director, including any interim appointees, when duly appointed by the Mayor. "Mayor" shall mean the Mayor of.the City or any presiding officer or titular head of the • City Council, or his successor in functions, if any. "Note" means the "Spokane Valley, Washington, Tax and Revenue Anticipation Note, 2003" authorized by this Ordinance. • "Note Account" means the "Spokane Valley Tax and Revenue Anticipation Note • Redemption Account, 2003" created by Section 3 of this Ordinance. "Note Proceeds Account" means the "Spokane Valley Note Proceeds Account" created by Section 5 of this Ordinance. 5 "Note Register" shall mean the registration records of the City on which shall appear the • name and address of the Registered Owner of the Note. "Note Registrar" shall mean the Finance Director of the City or his/her successor in functions, if any. "Purchaser" shall mean Farmers &Merchants Bank of Rockford, of Spokane, Washington. "Registered Owner" means the person in whose name the Note is registered on the Note Register. Section 2. Issuance of Note. In anticipation of the receipt of general tax revenues or revenues from other sources, the City shall, for the purpose of funding general operating expenses of the City, issue its Note in the principal amount of not to exceed $1,000,000. Said -2- o • short-term obligation shall be designated the "Spokane Valley, Washington, Tax and Revenue Anticipation Note, 2003," shall be dated March 1, 2003 and shall mature on December 31, 2003. The principal of the Note shall be payable at maturity. The Note shall bear-interest on the unpaid balance at a rate equal to the seven (7) day FHLB Index plus .61% adjusted daily from the date of each draw until paid. Interest shall be payable upon prepayment of the Note or at maturity of the Note. Interest on the Note shall be • calculated on the basis of a 360-day year and the actual number of days elapsed. • The Note shall be issued in registered form. Both principal of and interest on the Note shall be payable in lawful money of the United States of America at the office of the Finance Director of the City in Spokane Valley, Washington, and shall be a general obligation of the City to the extent provided herein. The Finance Director shall act as the Note Registrar and the - Registered Owner of the Note shall not be entitled to the benefits of this Ordinance or the Note until the Note Registrar has executed the Registrar's Certificate. Section 3. Note Redemption Account. A special account of the City to be known as the "Spokane Valley Tax and Revenue Anticipation Note Redemption Account, 2003" (the "Note Account") is hereby authorized to be created by the City. The Note Account shall be a trust account and shall be drawn upon for the sole purpose of paying the principal of and interest on the Note. Money on deposit in the Note Account not immediately needed to pay such interest or principal may temporarily be deposited in such institutions or invested in such obligations which are legal investments for City funds. Any interest or profit from the investment of such money shall be deposited in the Note Account. Any money remaining in the Note Account after payment in full of the principal of and interest on the Note may be transferred to the general • . operating fund of the City(the "General Fund"), and the Note Account shall be closed. • The City covenants and agrees that on or before the maturity date of the.Note, it will deposit in the Note Account, out of all taxes levied by the City within and as a part of the levy 'permitted by law without a vote of the electors and when permitted to be levied by State law, and out of other revenues received by the City, such tax receipts and other revenue in an amount • which, together with other money of the City, if any, legally available for such purposes, will be sufficient to pay the principal of and interest on the Note. The City hereby irrevocably pledges that a sufficient portion of such tax receipts and other revenues to be collected by the City prior to the full payment of the principal of and interest • on the Note will be and is hereby irrevocably set aside,pledged and appropriated for the payment of the principal of and interest on the Note. Such taxes and other revenue so pledged shall be paid directly into the Note Account in amounts sufficient to pay the principal of and interest on the Note at maturity, and none of the money in such Account shall be used for any other purpose • than the payment of the principal of and interest on the Note as the same shall become due. Section 4. Redemption Prior to Maturity. The Note may be pre-paid prior to its maturity in whole or in part at any time. . -3 - • • n � 1 Section 5. Application of the Proceeds of the Note. All draws upon the Note under this Ordinance shall be deposited into a special account designated the "Note Proceeds Account" that is hereby created in the City's General Fund, and may be used by the City to pay the general operating and maintenance expenses of the City. . Following the execution and delivery of the Note, the City shall notify the Purchaser in • writing on the form entitled "Disbursement Request and Authorization", attached hereto as Exhibit"A", each time that a draw is required to pay the general operating and maintenance expenses of the City. The Council hereby designates the Finance Director as the person or persons'authorized to make a request for a draw against this Note. The Finance Director may invest all or part of the proceeds of the Note temporarily in or with such institutions or in such obligations as may now or hereafter be permitted for cities in the State of Washington by law and which will mature prior to the date on which such money shall be needed. Earnings on such investments shall accrue to the benefit of the General Fund. _ Section 6. Form of the Note. The Note shall be in substantially the form shown in . Exhibit`13" attached hereto and incorporated herein by this reference. Section 7. Execution of the Note. The Note shall be executed on behalf of the City by the manual signature of the Mayor and City Clerk. Section 8. Note Registrar. The Finance Director is hereby appointed as Registrar, paying agent, and transfer agent with respect to the Note, subject to the following terms and conditions: A. The Registrar shall keep, or cause to bekept, at his/her principal office, sufficient books for the registration and transfer of the Note(the "Note Register"), in which shall be maintained the name and address of the Registered Owner of the Note. B. The Registrar is authorized, on behalf of the City, to register and deliver any Note issued or transferred in accordance with the provisions of such Note and this Resolution, and to carry out all of the Registrar's powers and duties under this Resolution. C. The Registrar shall be responsible for his/her representations contained in • the Registration Certificate on the Note. Section 9. Lost. Destroyed or Mutilated Note. In the event the Note is lost, destroyed, or mutilated, the City will cause to be issued a new Note, substantially similar to the original, to replace the same, in such manner and upon such reasonable terms and conditions as the Council may determine. Section 10: Sale of Note: Authorization to Officials and Agents., Ratification of Prior Actions. The Council hereby authorizes the sale of the Note to the Purchaser pursuant to the Purchaser's offer attached hereto as Exhibit "C" and incorporated herein by reference. The -4- • • • appropriate City officials, agents and representatives are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Note and for the proper use and application of the proceeds of the sale thereof as provided in this Ordinance. All actions heretofore taken by the City's officials, agents and representatives in connection with the issuance and sale of the Note are hereby ratified, approved and confirmed. Section 11. Note Not Arbitrage Bond or Private Activity Bond; Special Designation. The City covenants and agrees that throughout the term of the Note,no part of the proceeds of the Note or any other moneys or obligations held under this Ordinance shall at any time be used for any purpose or invested in such a manner, nor shall the City take any other action, which would cause the Note to be (i) an "arbitrage bond" under the Internal Revenue Code of 1986, as amended, and applicable regulations (the "Code") or(ii) a "private activity bond" under the Code. • The City hereby designates the Note as a "qualified tax-exempt obligation" under Section 265(b) of the Code. The City does not expect to issue tax-exempt obligations in an aggregate principal amount in excess of ten million dollars during calendar year 2003. Section 12. No Continuing Disclosure. The City is exempt from providing continuing disclosure pursuant to the Securities and Exchange Commission's Rule 15c 2-12, as amended, • because it has less than $10 million in outstanding debt and because the Note is issued in a denomination larger than $100,000. Section 13. Ordinance a Contract. This Ordinance shall constitute a contract between the City and the Purchaser. _ Section 14. Effective Date. This Ordinance shall become effective five days after its • passage and publication as required by law. The Ordinance shall be published by Title only, in the form attached as Exhibit "D". • • ADOPTED under a suspension of rules by the City Council of the City of Spokane Valley at a meeting held this 25t day of February, 2003. CITY OF SPOKANE VALLEY, WASHINGTON Y Mayor ATTEST: I /� - City Clerk •( SF\A•L) .r • -5 - • i r i c • * * * * * * * * * * * * * * * • 1, the undersigned, City Clerk of the City of Spokane Valley, of Spokane County, Washington, hereby certify that the foregoing Ordinance is a full, true, and correct copy of an Ordinance duly adopted at a regular meeting of the City-Council, duly and regularly held at the . regular meeting place thereof on February 25, 2003, of which meeting all members of said Council had due notice and at which a majority,thereof were present; and that at said meeting said Ordinance was adopted by the following vote: • • AYES, and in favor thereof, Councilmembers: • NAYS, Councilmembers: O ABSENT, Councilmembers: — 0 ABSTAIN, Councilmembers:. -' 0 I further certify that I have carefully compared the same with the original Ordinance on file and of record in my office; that said Ordinance is a full, true, and correct copy of the original Ordinance adopted at said meeting; and that said Ordinance has not been amended, modified, or rescinded since the date of its adoption, and is now in full force and effect. IN WITNESS WHEREOF, I have set my hand and affixed the official seal of the City on February 25, 2003. IIIP City lerk • ( SEAL) • • •• 'C;1 ,1` -6 - 03/19/03 WED 11:25 FAX 509 456 0146 PRESTON SPOKANE el 002 CERTIFICATION OF BOND COUNSEL I,the undersigned Bond Counsel for the City of Spokane Valley, of Spokane County, Washington,hereby certify that I have read the attached Summary of Ordinance No. 39 of said City and that the same is true and complete and provides adequate notice to the public of the contents of said Ordinance. Dated this 25th day of February,2003. PRESTON GATES&ELLIS LLP Michael C. Ormsb Lon ounsel • Page 2