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ORDINANCE NO. 95 - 0S
AN ORDINANCE of the City of Bainbfidge Island, Wa,~n~ton,
authorizing the issuanco of an installment note payable out of t_b8
Loc~ Improvement Fund, District No. 16; ~ the mount,
form, date, intereg ~ate and mamxity date of the insm]knent note;
authorizing the purchase of the installment nou: with funds from
the City's U~lity Fund; and fixing the intexest rate on Local
Improvement District No. 16 assessment hiSt-a|lme-nts.
WHEREAS, in Ordinance No. 92-21, the City established Local Improvement District
No. 16, ordered the construction and installation of water lines and appxh-tenances in the Valley
Vtw area of the City, provided that payment for d~ improvements be w_~d?- by special
assessments upon tl~ property in ,I.ID No. 16, and establis_h__ed the Local _Improvement Fund,
District No. 16; and
WHEREAS, in Ordinance No. 94-02, the City modifu~l, approved and confirm~ the
assessments and assesstorm roll of LID No. 16, and levied and assessed the cost and expanse
of the improvements against lhe property shown on the assessment roB; and
WHErRY, S, RCW 35.45.150 authorizes the City to issue and sell installment noU:s
payable out of the local improvement disu'~ct fund at any ~_me after ~ thirty day period allowed
by law for the payment of assessments of any district without pen_alty or interest, in a total
amount representing th~ balanr~ of th~ cost and e, xp~nse of the local improvemere district to be
born~ by t~he property owners of the district; and
WHEREAS, RCW 35,45.150 also provides that local improvement installmont notes
which are within th~ protection of th~ local impwvoment guaranty fund law shall be considered
legal investments for any av~Hable surplus funds of the City which are authorized to be invested
in the City's local impwvement district bonds or wan~__nt% and any such in.~mllment notes may
b~ sold or transferred by the City on such w~,_f,s or condi~ong as the City Council may
determine, or tony be issued to anotl~r fund of tl~ City; and
WHEREAS, the City Council has determined that it is in the b~st interests of the City
W issue an insmihnent not~ in t!~ mount of the co~t and expense of _I .rf} No. 16 to be borne
by the property owr~rs within LID No. 16, payable out of th~ Local Impwvement Fund, District
No. 16; and
WHEREAS, the City Council has detennin~i that it is in fl~ best interests of the City
to invest funds from th~ City's UtiliW Fund in the purchaso of m~ installment note issued by the
City payable out of th~ Local Impwvement Fund, District No, 16; now, fl~refore,
THE CITY COUNCIL OF THE C1TY OF BAINB~E ISLAND, WAStt!NGTON,
DO ORDAIN as follows:
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Section 1, Authorization for Iss, ance of Installment Note. Th~ total mount of the
assessment roll in the City's Local l~provanent District No. 16, created under Ordinance No.
92-21, passed July 2, 1992, was $89,418.92. The 30 day period for making cash payments of
assessments without interest in the District expirai on April 21, 1994, and the total amount of
aSseSsmeUgS paid in cash was $21,062.76, leaving a balance of assessaxents unpaid on the
assessment roll in the amOUnt Of $63,782.16. The City Shall therefore pursuant W RCW
35.45.150 issue and sell an Installn~nt Note payable out of th~ Local Improvement Fund,
District No. 16 (the "Note Fu~"), as a single installment note in the total principal S~_~_m_ of
$63,782.16. Application of funds in the Note Fund for the reduction of the principal and
interest amOUlltS du~ on tl~ Insmlkn=nt Note Shall be alade not less ?_han once each year
beginning with tl~ issu~ date of tt~ hstailment Now.
Section 2. Form. Contents and Execution of In.qallment Note. The lnstallw.~nt Note
shall be printed, lithographed, or typed on bond paper in a form consistent with the pwvisions
of this Ordinance alld State laW, _~_hall be signed by tl~ Mayor and the City Clerk, eitl~r or both
of whose signatures may be manual or in facsimile, alld the seal of the City or a facshnile
reproduction there. of shall be impressed or printed thereon. The Installment Note shall be dated
March 1, 1995, and shall mature on Maxx:h 23, 2004. The Installment Note shall bear interest
at the rau: of 6.25 percent per annum (computed on the basis of a 360 day year of twelve 30 day
months), payable annually beginning MaIv~ 23, 1995.
The InStallment Note shall bear on its face; (1) the name of ~__he payee; (2) t_he ntunber
of the Local Improvement District from whose funds tl~ notes are payable, which is number 16;
(3) the date of issue of the installment note; (4) th~ date on which tl~ note, or the ln_,al
installment on the note, S_h_~!! becolll~ dl~; (5) the rate or rates of itlterest, as provid_Cd_ by the
City Co~_n~_il, to be paid on the Hnpald batalice of ths note; aXIal (6) Such lxlallual or fats!mile
signatures and attestations as are requixe, d by state statute to appt~r on the City' s warrants. The
reverse side of the Installment Note s_ha' bear a tubular payment r~,ord which shall indicate at
prescribed installment dates, the receipt of any Local _~mpwvem=nt District funds for ~e purpose
of servicing the debt evidenced by ti~ Installment Note. Any aw, h receipts _~hall fkrSt be applied
toward the interest due on the unpaid balance of th~/nstallment Note, attd any additional i~_mds
shall be applied to reduce the principal amount of ti~ Installment Note. The tabular payment
r~,.ord on the revct'~ side of ~ig IBStallment NOte shall also show file unpaid principal balance
due on the rnstallmcnt Note, together with suffwient space opposite each transaction affecting
the Note for the manual signatth~ of the City Clerk, or of any other regisun'ed paye~ of
prese_ntin~ the ]XlStallment NOte for iIlYalll!~llt paylllellts.
Only the Ins~a'-~nt Note b~dng a Certifw. ate of Authentica~on in axe following form,
manually signed by the Note l~gister, shall be valid or obligatory for any puxpose or earlfled
to the beuefits of this ordinan~:
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CERTIFICATE OF A~CATION
This Not= is al~ fully registered City of Bainbrklge Island, W"ehingtOl3, LOC~
ImproveAnent District No. 16 Installment Note d~scribed in the Note Ordinance.
Director of Department of Finance
Non: Register
Section 3. Appointment of Note Registrar; RegistratioV and Transfer of Note. The
City's Director of the D~'paranent of Finance is appointed Note Regiswar for the Installment
NoU:. The Non: sh~n be issued to the City's Utility Fund (the "Registered Owner") only in
registered form as to both principal and interest and s_h_nll be recorded on books or records
~ by the Non: Registrar (the "Note Register"). The Note Register shall co_-_t_nin the
name and rn_~iling address of the Regisn:red Owner. The Installment Note may not be assigned
or u-an~ferr~ by the Registered Owner. When the Installment Note has been paid in full, both
principal and interest, it shall be surrcndt~red by the RegisU:red Owner to the Note Registrar,
who shall cancel the !naailment Note.
The Note Registrar shall keep, or cause to be kept, at the Note l~giswar's office,
sufficient books for al~ regLstration of th~ ]p_$f~llment Note. The Note Registrar is alxthorized,
on behafff of the City, to au~cate and deliver the ln-qa]ln~nt Note in accordance with the
provisions of the Ynstalklleut Note aild this ordi!~luce, tO serve as the City' s payin~ agent for the
Installment Note and to cany out all of the Note Regis~ar's powers and duties under alis
Ordlnnnee alld t__h_e City'S Ordinance establishing a system of regisWation for the City's bonds and
obligations. The Note Regiswar shall be responsible for the representations contained in the
Note Registrar's Certificate of Authentication on tl~ lnqallment Note.
Section 4. Payment of bt~adlment Note. Both principal of and irarest on the
Installment Note S_hnll be payable solely out of the Note Fund, and from the City's Local
Improvement Guaranty Fund, and shall be payable in hwful money of the United States of
America. Interest on th~ Installment NoW, and any prepaid principal on the Instnllmen~ Note,
shall be paid by check, draft or interfund tr~n.~fer on tl~ interest paymere date W the Registered
Owner at the address appearing on the Note Register. Th~ final installment of prlx~ipal nnd
inn:rest on the In.~[alhllent Note at roaBlrlty or prior repayment is payable at t_i~ office of the
Note Registrar, upon presentation and surrender of the Installment Note.
Section 5. Prepayrnent Provisions. The City reserves the tight to prcpay principal on
the Installment Non: prior to its stated maturity date on any interest payment date, at par plus
accrued interest to the date fixed for pr~ayment, whenever there shall be sufficient money in
the Non: F~_n_d w p~pay the principal of the Insta!!_me_nt Note over and above ale mount
required for t_ha payment of the interest then du~ on the Installment Note. No notice of
prepayment to the Registered Owner is required. Inn:rest on the principal of the In-~ta]hnent
Note prepaid shall cea.~ w accrue on the da~ of such pr~payment.
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S~ction 6. Failure m R~leem Installment NOte. If the Installment Note is not redeemed
when properly pres~nte~l at its _maturity da~, the City shall be obligated to pay interest in the
l_n~tsllmcnt Note at the s~_me rate provided therein from and after its maturity date until the
_l~stalknent Note. both principal and interest, is paid in full or until sufficient money for its
payment in full is on dq3osit in tho Note Fund _n_na the ln-~taliment Note has been called for
payment by giving notice of that call to the Registered Owner.
Section 7. Purchase of lnstalhnent Note by Utility F, nd. Pursuant to RCW 35.45.150.
the City will purchase the In.~t~llment Note from funds available for investment on doposit in the
City's Utility Fund, at a price of par plus any accrued interest from the date of the Installment
Note to the date of its transfer to the City, The City is authorized m invest funds from the
City's Utility Fund in the purchase of the In~mllmen~ Note. The proper City officials arc
authorized and directed to tske all actions necessary for the prompt delivery of the Installment
Note and for the proper application and use of the proceeds of the sale of tl~ Installmere Note,
Section 8. Fixhlg Interest Ihte on Assessments. The intet~st raU: on the in~tnllments
and de, linquont payments of the special nsse~sment~ in Local Improvement District No. 16 is
revised and fixed at tl~ rate of 6.25 percent per annum.
Section 9. F. ffective Date. This ordinance shall be effecdvc five days from and after its
passage, approval, and publication as required by hw.
pASSED by the City Council thi.~ 16th day Of February, 1995.
APPROVED by the Mayor this 17th day of February, 1995.
Janet K. West, Mayor
ATTEST/ALrrHENTICATE:
~P. I<~per, City Clerk
APPROVED AS TO FORM:
Rod P. Kaseguma, City AtWrncy
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FIL~ V~r~T[I ~ ~ CT,F,I~: February 3, 1995
PASSED BY THE CITY COUNCIL: February 16, 1995
pLIBLICATIO]~I: February 22, t995
~FFBCTIVEDATE: February 27, 1995
ORDINANCE NO.: 95-05
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