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ORD 75-15 GENERAL OBLIGATION BONDS, 1975CITY OF WINSLOW, WASHINGTON o NANc . NO. 7,f AN ORDINANCE of the City of Winslow, Washington, providing for the issuance, specifying the matu- rities and maximum effective interest rate, and fixing the form of $150,000.00 par value of "General Obligation Bonds, 1975" authorized by the qualified voters of the City, at a special election held on February 5, 1974, pursuant to Ordinance No. 73-20 of the City Council passed November 19, 1973, creating a special bond redemp- tion fund; and providing for the sale of such bonds. THE CITY COUNCIL OF THE CITY OF WINSLOW, WASHINGTON, DO ORDAIN, as follows: Section 1. The City of Winslow shall presently issue and sell $150,000.00 par value, being the total par value of negotiable general obligation bonds authorized by the qualified voters of the City at a special election held on February 5, 1974, pursuant to Ordinance No. 73-20 of the City Council, passed November 19, 1973, for the purpose of providing part of the funds to acquire certain real property within the Ctiy and the development thereof as a park, including picnic area, a child's playground, tennis courts, public rest rooms, a community beach area and shelter. The bonds shall be dated September 1, 1975, shall be in denominations of $5,000.00 each, shall be numbered from 1 to 30, inclusive, and shall bear interest at a rate or rates not to exceed an effective rate of 8% per annum, as evidenced by interest coupons to be attached to the bonds representing interest to maturity, with full obligation on the part of the City to pay interest at the bond rate or rates from and after maturity until said bonds, both principal and interest, are paid in full. Both principal and interest are to be paid in lawful money of the United States of America at the office of the Clerk/Treasurer of the City, and the bonds shall be payable serially over a period of from two to fifteen years from the date of issue and mature in order of their numbers as follows: Bond Numbers (Inclusive) Amounts 1 $ 5,000 2 5,000 3 to 4 10,000 5 to 6 10,000 7 to 8 10,000 9 to 10 10,000 11 to 12 10,000 13 to 14 10,000 15 to 16 10,000 17 to 18 10,000 19 to 21 15,000 22 to 24 15,000 25 to 27 15,000 28 to 30 15,000 Maturities September 1, 1977 September 1, 1978 September 1, 1979 September 1, 1980 September 1, 1981 September 1, 1982 September 1, 1983 September 1, 1984 September 1, 1985 September 1, 1986 September 1, 1987 September 1, 1988 September 1, 1989 September 1, 1990 Section 2. The City reserves the right to redeem any or all of the outstanding bonds of this issue at par, plus accrued interest, on any semiannual interest payment date, on or after September 1, 1985, in inverse numerical order, highest numbers first, by publishing notice of such intended redemption in the official newspaper of the City at least once not less than thirty nor more than forty-five days prior to the call date, and by mailing a copy of such notice within the same period to the original purchaser or the account manager of the under- writer who purchases the bonds. In addition, such redemption notice -2- shall also be sent to Moody's Investors Service, Inc., and Stan- dard & Poor's Corporation, at their offices in New York, New York, but the mailing of such notice to such corporations shall not be a condition precedent to the redemption of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund for such bonds. Section 3. The City hereby irrevocably pledges itself to levy taxes annually, without limitation as to rate or amount, on all pro- perty in the City subject to taxation in an amount sufficient to pay the principal of and interest on the bonds as the same shall become due, and the full faith, credit and resources of the City are hereby irrevocably pledged for the payment of the principal of and interest on such bonds. Section 4. No. The bonds shall be in substantially the following form: $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF WINSLOW GENERAL OBLIGATION BOND, 1975 % KNOW ALL MEN BY THESE PRESENTS: That the City of Winslow (the "City"), State of Washington, for value received, promises to pay to bearer on the FIRST DAY OF SEPTEMBER, 19 , the principal sum of -3- FIVE THOUSAND DOLLARS together with interest thereon at the rate of % per annum, until fully paid, payable semiannually on the first days of March and Sep- tember of each year, with interest to maturity being evidenced by and payable upon the presen- tation and surrender of the attached interest coupons as they severally become due, with full obligation on the part of the City to pay interest at the same rate from and after the maturity date, in the absence of coupons, until this bond with interest is paid in full. This bond is payable, both principal and interest, in lawful money of the United States of America at the office of the Clerk/Treasurer of the City. This bond is one of an issue of $150,000.00 of bonds of like date, tenor and effect, except as to maturities [and interest rates if more than one interest rate is bid], and is issued by the City pursuant to a special election authorizing the same for strictly municipal capital purposes, other than the replacement of equipment, to-wit, for the purpose of providing part of the funds to acquire certain real property within the City and the development thereof as a park, including picnic area, a child's playground, tennis courts, public rest rooms, a community beach area and shelter, all as provided in Ordinance No. of the City Council, passed July 21, 1975, and is issued in full compliance with the ordinances of the City and the laws and constitution of the State of Washington. The City reserves the right to redeem any or all of the outstanding bonds of this issue at par, plus accrued interest, on any semiannual interest payment date, on or after September 1, 1985, in inverse numerical order, highest numbers first, by publishing notice of such intended redemption in the official newspaper of the City at least once not less than thirty nor more than forty- five days prior to the call date, and by mailing a copy of such notice within the same period to [the original purchaser or the account manager of the underwriter who purchases the bonds]. In addition, such redemption notice shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation, at their offices -4- in New York, New York, but the mailing of such notice to such corporations shall not be a con- dition precedent to the redemption of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund. The City hereby irrevocably pledges itself to levy taxes annually, without limitation as to rate or amount, on all property in the City subject to taxation in an amount sufficient to pay the principal of and interest on the bonds. It is hereby certified that all acts, conditions, and things required to be done precedent to and in the issuance of this bond have been done, have happened, and have been performed as required by law, and that the total indebtedness of the City, including this bond issue, does not exceed any constitutional or statutory limitations. IN WITNESS WHEREOF, the City has caused this bond to be signed by the facsimile signature of its Mayor and attested by the manual signature of its Clerk/Treasurer and its corporate seal to be hereto affixed and the interest coupons attached to be signed with the facsimile signatures of said officials this first day of September, 1975. CITY OF WINSLOW, WASHINGTON ATTEST: By (facsimile signature) Mayor City Clerk/Treasurer The form of the interest coupons shall be substantially as follows: -5- Coupon No. ON THE FIRST DAY OF (MARCH)(SEPTEMBER), 19 , THE CITY OF WINSLOW, WASHINGTON, upon presentation and surrender of this coupon will pay to the bearer at the office of the City Clerk/Treasurer the amount shown hereon in lawful money of the United States of America, said sum being the semiannual interest due that date on its "General Obligation Bond, 1975" dated September 1, 1975, and numbered . CITY OF WINSLOW, WASHINGTON ATTEST: By (facsimile signature) Mayor (facsimile signature) City Clerk/Treasurer Section 5. The bonds shall be printed or lithographed on good bond paper and shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk/ Treasurer under the seal of the City, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk/Treasurer. Section 6. There is hereby created and established in the office of the City Clerk/Treasurer a special fund to be known and designated as the "General Obligation Bond Fund, 1975" for the payment of the principal and interest on the bonds, into which fund shall be paid the accrued interest received from the sale of the bonds, together with all taxes collected for the payment of the principal of and interest on the bonds. -6- Section 7. The principal proceeds received from the sale of the bonds shall be deposited in the "Park Development Fund, 1974" created and established pursuant to Ordinance No. 74-14 of the City Council, passed June 20, 1974, as amended by Ordi- nance No. 74-~ of the City Council passed December 16, 1974, and expended to pay part of the cost of park land acquisition and development authorized by Ordinance No. 73-20, and to pay one or more warrants heretofore drawn upon said fund for the same purpose. Section 8. The bonds shall be sold for cash at public sale for not less than par, plus accrued interest, upon sealed bids to be received at the office of the City Clerk/Treasurer up to the day and hour stated in the Notice of Bond Sale hereinafter directed to be given. Notice calling for bids to purchase the bonds shall be published once a week for four consecutive weeks in the official newspaper of the City and such notice shall also be published once in the Daily Journal of Commerce of Seattle, Washington, at least ten days before the bid opening date. Such notice shall specify that the bids for the purchase of the bonds shall be received by the City Clerk/ Treasurer of the City in the Council Chambers of the City Hall on September 2, 1975, up to 7:30 o'clock p.m. (PDST), at.which time all bids will be publicly opened for the purchase of the bonds and considered by the City Council at a meeting thereof then to be held. Such notice shall be in the form attached hereto, made a -7- part hereof, and marked "Exhibit A", to which reference is made for the terms and conditions of bid for and sale of the bonds. A copy of the notice shall, at least three weeks prior to the date fixed for the sale, be mailed to the State Finance Committee, Olympia, Washington. The Clerk/Treasurer of the City shall be and is hereby authorized and directed to publish notice for the purchase of the bonds in the manner required by law in accordance with the provisions of this section. PASSED by the City Council of the City of Winslow, Washington, at a regular open public meeting thereof, and APPROVED by the Mayor this 21st day of July, 1975. ATTEST: Mayor APPROVED AS TO FORM: City Attorney Published: -8- NOTICE OF BOND SALE CITY OF WINSLOW, WASHINGTON GENERAL OBLIGATION BONDS, 1975 $150,000.00 SEALED PROPOSALS will be received at the office of the City Clerk/Treasurer at the City Hall, Winslow, Washington, until 7:30 o'clock p.m. (PDST) on SEPTEMBER 2, 1975 at which time the bids will be publicly opened and considered by the City Council at a meeting to be held at such time in the Council Chambers in the City Hall for the purchase of $150,000 par value of "General Obligation Bonds, 1975" of the City of Winslow, Washington, authorized to be issued pursuant to a special election and Ordinance No. 73-20, for strictly municipal capital purposes, other than the replacement of equipment, to-wit, for the purpose of providing part of the funds to acquire certain real property within the City and the development thereof as a park, including picnic area, a child's playground, tennis courts, public rest rooms, a community beach area and shelter. The bonds will be dated September 1, 1975, will be in denominations of $5,000 each, will be numbered from 1 to 30, inclusive, will bear interest at an effective rate not exceeding 8% per annum, payable semi- annually on March 1 and September 1 of each year, interest to maturity to be evidenced by coupons to be attached to the bonds, EXHIBIT A will be payable, both principal and interest, at the office of the Clerk/Treasurer of the City of Winslow, Washington, and will mature serially as follows: Bond Numbers (Inclusive) Amounts 1 $ 5,000 2 5,000 3 to 4 10,000 5 to 6 10,000 7 to 8 10,000 9 to 10 10,000 11 to 12 10,000 13 to 14 10,000 15 to 16 10,000 17 to 18 10,000 19 to 21 15,000 22 to 24 15,000 25 to 27 15,000 28 to 30 15,000 Maturities September 1, 1977 September 1, 1978 September 1, 1979 September 1, 1980 September 1, 1981 September 1, 1982 September 1, 1983 September 1, 1984 September 1, 1985 September 1, 1986 September 1, 1987 September 1, 1988 September 1, 1989 September 1, 1990 The City has reserved the right to redeem any or all of the outstanding bonds of this issue at par, plus accrued interest, on any semiannual interest payment date, on or after September 1, 1985, in inverse numberical order, highest numbers first, by publishing notice of such intended redemption in the official newspaper of the City at least once not less than thrity nor more than forty- five days prior to the call date, and by mailing a copy of such notice within the same period to the original pruchaser or the account manager of the underwirter who pruchases the bonds. In addition, such redemption notice shall also be sent to Moody's -2- Investors Service, Inc., and Standard & Poor's Corporation, at their offices in New York, New York but the mailing of such notice to such corporations shall not be a condition precedent to the re- demption of such bonds. Interest on any bonds so called for redemp- tion shall cease on such call date upon payment of the redemption price into the bond redemption fund for such bonds. The interest rate or rates for the bonds shall be fixed by the City Council after the bonds have been sold. The City, by Ordinance No. 73-20, has irrevocably pledged itself to levy taxes annually, without limitation as to rate or amount, upon all property in the City subject to taxation in an amount suf- ficient to pay the principal of and interest on the bonds as the same shall accrue, and the full faith, credit and resources of the City have been irrevocably pledged for the payment of the principal of and interest on said bonds. Bidders are invited to name the rate or rates of interest which the bonds are to bear, not exceeding an effective rate of 8% per annum. Bidders shall submit a bid specifying: (a) the lowest rate or rates of interest and premium, if any, above par at which the bidder will purchase the bonds; or (b) the lowest rate or rates of interest at which the bidder will purchase the bonds at par. No bid will be considered for the bonds for less than par and accrued interest. The purchaser must pay accrued interest to date of delivery of the bonds. -3- Coupon rates shall be in multiples of 1/8 or 1/20 of 1%, or both. No more than one rate of interest may be fixed for any one maturity. Only one coupon will be attached to each bond for each installment of interest thereon, and bids providing for additional or supplemental coupons will be rejected. The maximum differential between the lowest and highest coupon rates named in any bid shall not exceed 2%. For the purpose of comparing the bids only, the coupon rates bid being controlling, each bid shall state the total interest cost over the life of the bonds and the net effective interest rate of the bid. The bonds shall be sold to the bidder making the best bid, subject to the right of the City Council of the City to reject any and all bids and to readvertise the bonds for sale in the manner provided by law and no bid for less than all of the bonds will be considered. All bids shall be sealed and, except the bid of the State of Washington, if one is received, shall be accompanied by a deposit of $7,500.00. The deposit shall be either cash or certified or cashier's check made payable to the Clerk/Treasurer of the City, which shall be promptly returned if the bid is not accepted. If the bonds are ready for delivery and the successful bidder shall fail and neglect to complete the purchase of the bonds within forty days following the acceptance of its bid, the amount of its deposit shall be forfeited to the City and in that event the City Council -4- may accept the bid of the one making the next best bid. If there be two or more equal bids for the bonds for not less than par plus accrued interest and such bids are the best bids received, the City Council will determine by lot which bid will be accepted. The bonds will be delivered to the successful bidder at the office of the Clerk/Treasurer of the City of Winslow or in the City of Seattle at the expense of the City, or at such other place as the Clerk/ Treasurer of the City and the successful bidder may mutually agree upon at the purchaser's expense. Any bid presented after the hour specified for the receipt of bids will not be received and any bid not accompanied by the required bid deposit at the time of opening such bid will not be read or con- sidered. It is understood that if, prior to the delivery of the bonds, the income receivable by the holders thereof shall become taxable, directly or indirectly, by the terms of any federal income tax law, the successful bidder may at its option be relieved of its obliga- tion to purchase the bonds, and in such case the deposit accompanying its bid will be returned, without interest. The City will cause the bonds to be printed or lithographed and signed without expense to the successful bidder. The approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay & Moch, attorneys, Seattle~ Washington, will be fur- nished to the purchaser of the bonds without cost to the purchaser, which legal opinion will be printed on each bond, and a no-litigation -5- certificate will be included in the closing papers. Information concerning the bonds may be received upon request made to the undersigned, or to Wm. P. Harper & Son & Company, the City's financial consultant, at Harper Building, Seattle, Washington. DATED at Winslow, Washington, this ~/~+ day of July, 1975. Publication Dates: Journal of Commerce Bainbridge Review time times August 15, 1975 July 23, 1975 July 30, 1975 August 6, ]975 August 13, 1975 -6-