RES 94-34 ISSUANCE OF AN INSTALLMENT NOTE PAYABLE OUT OF THE LID FUND, DISTRICT 1412/08/94 15:58 FAX 206 635 7750 INSLEE-BEST ~003
ORDINANCE NO. 94 - 3 4
AN ORDINANCE of the City of Bainbridge Island, WashinEton,
authorlzlnE the issuance of an installwent note payable out of the
Local huprovement Fund, Dh~xlct No. 14; fhxing the amount,
form, date, interest ~_re and maturity claw of the instsllment note;
authorizing the purch~ge of the installment now with funds from
the City's Ufi~y Fund; and fixing the interest rate on Local
Improvement Dis~c[ No. 14 assessment in-~r~llments.
WHEI~FAS, in Ordina~-e No. 91-12, the City established Local lmprovcmcnt District
No. 14, ordered the construction and installation of water ~ and appurtenances in the Ycomalt
Point ar~a of the City, provided that payment for the improvcments be macl~ by special
asses~mems upon the property in LID No. 14, and established the Local Improvement F. nd,
Dish-let No. 14; and
WHEREAS, in Ordinan~ No. 92-13, the City modified, approved and confirmed the
assessments anti assessment roll of l I13 No. 14, and levied and assessed the cost and expense
of the improvements again-q the property shown on the assessment roll; and
WHEREAS, RCW 35.45.150 authorizes the City to issue and sell instaurrtent notes
payable out of the local improvement district fund at any time after the thirty day period flowed
by hw for th_~ payment of assessments of any district without penalty or interest, in a Wtal
amount representi~ the balau~ of the cost and cxp~nse of the local improvement district to be
borne by the property owners of the district; and
WHEREAS, RCW 35.45.150 also provides mat local improvement installment notes
which am within the pwtecfion of the local improvement guaranty fund law shall be considered
legal inveshaents for any available surplus funds of the City which are authorized to be invested
in the City's local improvement district bonds or warrants, and any such insrnl]ment notes may
be sold or transferred by the City on such terms or conditions as the City Council may
det~l'n~ina, or may be issued to another ~lnd of the City; and
WI-I~-RYAS, the City Council ha_S deteVminnd ~_~t it iS in the best interests of the City
to issue an instalhnent note in the amom of me cost and e, xpe, n~ of LID No. 14 to be borne
by the property owners within LrD No. 14, payable out of the Local Improv~r~nt Fund, District
NO. 1~; and
WHEREAS, th~ City Council ban detenninsd that it is in ,__he_ best interests of the City
to invest funds from the City's Utility Pund in the pure, hl~ of t!~ inam!lmant
City payable out of the Local Improvement Fund, District No. 14; now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON,
DO ORDAIN as follows:
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Section 1. Authorization for Iss-a~ee of lr~llment Note. The total mount of the
assessment roll in th~ City's Local Improvemere District No. 14, created -n,~er Ordimmee No.
91-12, passed February 28, 1991, was $221,994.50. The 30 day period for making cash
payments of assessments without interest in the Di--uict expired on lune 29, 1992, and the total
amount of asses--_-;uents paid in cash was $53,565, leaving a balance of assessments -n.~d on
the assessnient roll in the amount of $168,429.50. The City Shall therefore pllrSuant to
35.45.150 issue and sell an Tn~tallmenl Note payable out of the Local Improvement Fund,
District No, 14 (the "Note Fund"), as a single installment note in the total prit~_ipal sum of
$168,429.50. Application of funds in the Note Fund for the reduction of the principal and
interest mounts due on the Installment Note shall be mnd~ not less than once each year
beginning With the islBe date of the ln~tallmellI Note.
Section 2. Fox~x. Contents and Execution of Installment Note. The Ins~llment Note
shall be printed, lithographed, or typed on bond paper in a form consistent with the provisions
of this ordillalice and stale law, ~hall be $iglled by the Mayor and the City Clerk, either or both
of whose signatures may be manila] Or in faC~mila, alld the seal of th~ City or a facsimile
reproduction thereof shall be impr~ssed or printed thereon. The Installment Note shall be dated
December 31, 1994, and shah mature on July 1, 2002. The Installment Note shall bear interest
at the rate of 6.5 percent per annum (computed on the basis of a 360 day year of twelve 30 day
months), payablc artfinally bi~gi_nninlg July 1, 1995.
The Installment Note shall bear on its face: (1) the mm__e of the payee; (2) the n-robe[
of the Local Improvement Disuict from whose funds the notes are payable, which is number 14;
(3) th~ date of issue of the installment note; (4) the date on which tha not~, or the final
installment on the note, shall become due; (5) th~ rate or rates of interest, as provided by the
City Council, to be paid on the unpaid balance of the note; ~nd (6) SUch manual or facsimile
signatures and attestations as are required by state statute to appear on the City's watiants. The
reverse side of the Installment Note shall bear a tabular payment record which shall indicate at
prescribed ~nt dates, the receipt of any Local Improvement District fimct~ for ths ptLtpOse
of servicing the debt evidenced by the ~llment Note. Any such receipts shall first be applied
toward the interest due on the unpaid balance of the Installment No[e, and any additional funds
shall be applied to reduce the principal amount Of the Installment Note. The tabular payment
record on the reverse side of the Installment Note .~hall alSO Show the unpaid principal balance
due on the ln-qalllnent Note, together with sufficient space opposite each tran~e~on affecting
the Note for the manual signature of the City Clerk, or of any other registered payee of
presenting the Installment Note for installment paymems.
Only the Installment Note bearing a Ceztific, ate of Authemication in the following form,
nmnnally signed by the Note Register, shall be valid or obligatory for any purpose or en__tjtied
to the benefits of this ordinance:
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CERTIFICATE OF AUTHENTICATION
This Now is the fully registered City of Bsinbridge Island, Washin~Wn, Local
Improvement District No. 14 Installment Note 'desc'nbe~ Note Ordinance.
Director of lX'paxtment of Finance
Note Register
Section 3. Appolnrment of Note Registrar: Registration 3rid Transfer of Note. The
City's Director of the Depamnemt of Finsnee is appointed Note Rcgistrax for th_a k~rsllment
Note. The Note shall be issued to tl~ City's U,~mty Fund (+h~ "Registered Owner") only in
registered foau as to both principal and interest and shall be recorded on books or records
malnt~int~d by the Note Registrar (the "Note Register"). TI~ Note Register shall contain the
,am~ and mailing address of the Registea*col Owner. The Installment Note may not be assigned
or transferred by the Registered Owner. Vifhen the Instant Note has been paid in full, both
principal and interest, it shall be surrendered by the Registered Owner to the Note RcgisU-ar,
who shall callgel the Installment Note.
The Note Registrar shall keep, or cansc to be kept, at the Note Regisuar's office,
sufficient books for the registration of the h.~mllment NoW. The Note l~gistrar is authorized,
on behalf of the City, to authentir'ate and deliver the ln~allment Note in accordance with the
provisions of the ln.qallm~nt Note and thi.~ ordinance, W s~rvc as thc City's paying agent for tlw
Installment Note and to carry out all of the Note Registrar's powers and duties under this
ordinance and the City's ordi_n_~_n~ establishing a system of registration for the City's bonds and
obligations. The Note RegisWar shall be responsible for the representations contained in the
Note Registrar's CertificaU~ of Authentication on the Installment Note.
Section 4. Payment of Installment Note. Both principal of and interest on the
!n.qallment Note shall be payable solely out of the Note Fund, and from the City's Local
Improvemere Guaran~ Fund, and ghnll be payable in lawful money of the United States of
America. Interest on the Installment Note, and any prepaid principal on the Installment Note,
shall be paid by check, draft or interfund transfer on the interest payment date to the Registered
Owacr at the address appearing on the Note Register. The final installmere of principal and
interest on the IlBrallmant Note at m~ah-ity or prior repaymen/is payable at the_- office of the
Note Registrar, upon presa~on and surrender of the Insrn!Imant Note.
Section 5. Prepayment Provisions. The City reserves the right to prepay principal on
the Installment Note prior to its stated maturity date on any interest payment date, at par plus
accrued interest to th~ date fixed for prepayment, whenever there shMl b~ sufficient money in
thc Note Fund to prepay the principal of the Installment Note over and above the mount
required for the payment of r_b_a !_-__r_arest then due on the Installment Note. No notice of
prepaym~nt to tic Registered Owner is requirod. ~,texest on the principal of thc Instalknent
Note prepaid shall cease to accrue on the date of such prepaymcnt.
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Section 6. Faihr~ to Redeem I. usmllment Note. If the Installment Note is not redeemed'
when properly presented at its maturity dat~, th~ City shall b~ obligated to pay interest in the
Lustailment Note at the same rate provided therein from and after its maturity date until the
Installment Note, both principal and intorest, is paid in full or until sufficient money for its
payment in full is on deposit in the Note Fund and the Inqallment Note has been called for
payment by giving notice of that call to the Registered Owner.
Section 7. Purchase of Tn,~fRllme-Ut Note by Utility Fund. Pursuant to RCW 35.45.150,
the City will purchase the Installment Note from funds avalhble for investment on deposit in the
City's Utility Fund, at a price of par plus any accrued interest fwm the date of the Installment
Note to the date of its transfer to the City. The City is authorize~l to invest funds from the
City's Utility Fund in the purchase of the Installment Note. The proper City officials are
authorized and directed to take all actions n~c~ssary for the prompt delivery of tlx: Instalkncnt
Note and_ for the proper application and use of the proceeds of the sale of the Inst~ll,~ent Note.
Section 8. Fixiqff Interest Rate on Assessments. The interest rate on the in-~rallments
and delinquent payments of the special ass~s,~ments in Local Improvement District No. 14 is
revised and fixed at the rate of 6.5 perce~ per annum
Section 9. Effective Dare. Thi.~ ordinance shall be effective five days from ~_n_d af~
passage, approval, and publication as required by hw.
PASSED by the City Council this 15 th day of D e c emb e r , 1994.
APPROVED by the Mayor thls 16tldayof December , 1994.
Janet K. West, Mayor
ATFEST/AUTHI~-NTICATE:
APPROVED AS TO FORM:
Rod P. Ka~g~mn, City AtEn'ney
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FILEDV~ITHTHBCITYCI.RRK: December 9, 1994
PASSED BY THE CITYCOUNCIL: December 15, 1994
PUBLICATION: December 21, 1994
EFFECTIVE DATE: December26, 1994
ORDINANCE NO.: 94 - 34
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