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JEFFERSON COUNTY, WASHINGTON
RESOLUTION NO. 49-91
A RESOLUTION of the Board of County
Commissioners, Jefferson County, Washington, relating
to contracting indebtedness; providing for the
issuance of a $789,000 par value Limited Tax General
Obligation Bond, 1991 (Community Center), Series A,
and a $251,000 par value Limited Tax General
Obligation Bond, 1991 (Community Center), Series B,
of the County for general County purposes to provide
funds with which to pay part of the cost of
renovating the Port Townsend, Washington, community
center; fixing the date, form, maturity, interest
rate, terms and covenants of the bonds; establishing
a bond redemption fund; and approving the sale and
providing for the delivery of the bonds to the United
States of America, Department of Agriculture, Farmers
Home Administration,
WHEREAS, it is deemed necessary and in the best interests
of
Jefferson
County,
Washington
(the
"County") ,
and
its
inhabitants that the County assist in the renovation of the
communi ty center
located in Port Townsend,
Washington (the
"City"), the cost of which is $1,475,683, that cost to be paid
from the proceeds of a grant received from the State of
Washington in the
amount
of
approximately
$350,000
and
approximately $85,683 of other funds and services of the County
legally available therefor, leaving a balance of approximately
$1,040,000,
and the County does not now have
available
sufficient money to pay that portion of the cost; and
WHEREAS, the Board of County Commissioners of the County
has determined that it is in the best interests of the County to
issue its limited tax general obligation bonds in the amount of
$1,040,000 to pay a portion of the cost of renovating the
community center located in the City; and
WHEREAS,
the County heretofore entered
into
a
Loan
Agreement with the United States of America, Department of
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Agriculture, Farmers Home Administration, providing for a loan
in the amount of $789,000 under the conditions, terms and
specifications set forth in that Loan Agreement, such loan to be
evidenced by the issuance and sale of limited tax general
obligation bonds or a single bond in the principal amount of
$789,000; and
WHEREAS,
the County heretofore
entered
into
a
Loan
Agreement with the United States of America, Department of
Agriculture,
Farmers Home Administration,
providing
for
an
additional loan in the amount of $251,000 under the terms and
specifications set forth in that Loan Agreement, such loan to be
evidenced by the issuance and sale of limited tax general
obligation bonds or a single bond in the principal amount of
$251,000; NOW, THEREFORE,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
JEFFERSON COUNTY, WASHINGTON, as follows:
Section 1,
Authorization of Bonds.
The County shall
borrow money on the credit of the County and issue its
negotiable limited tax general obligation bonds evidencing that
indebtedness in the aggregate principal amount of $1,040,000
consisting of one bond in the amount of $789,000 and one bond in
the amount of $251,000 for general County purposes to provide
part of the funds required to pay the cost of renovating the
cormnunity center in the City (the "Project") and to pay the cost
of issuance and sale of the bonds (the "costs of issuance").
The general indebtedness to be incurred shall be within the
limit of up to 3/4 of 1% of the value of the taxable property
within the County permitted for general County purposes without
a vote of the qualified voters therein.
Section 2,
Description of Bonds,
The bonds shall be
called Limited Tax General Obligation Bond,
1991
(Cormnunity
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Center), Series A (the "Series A Bond"), and Limited Tax General
Obligation
Bond,
1991
(Community Center),
Series B
(the
"Series B Bond") (collectively, "the Bonds").
The Series A Bond
shall be in the principal amount of $789,000, and the Series B
Bond shall be in the denomination of $251,000.
The Bonds shall
be dated May 30, 1991; and shall bear interest at the rate of
5,875% per annum (computed on the basis of a 365-day year for
actual number of days elapsed),
Both principal and interest
shall be payable in 40 equal semiannual installments payable on
November 1, 1991, and semiannually thereafter on each succeeding
May 1 and November 1.
The Series A Bond shall be payable in
installments of $33,793 each, except that the last payment due
on May 1, 2011, shall be in an amount equal to the remaining
principal and interest due on the Series A Bond,
The Series B
Bond shall be payable in installments of $10,751 each, except
that the last payment due on May 1,2011, shall be in an amount
equal to the remaining principal and interest due on the
Series B Bond.
The life of the capital improvements to be
acquired with the proceeds of the Bonds exceeds twenty years,
Section 3,
Appointment of Bond Registrar, Registration and
Transfer of Bonds,
The County Treasurer is appointed Bond
Registrar for the Bonds.
The Bonds shall be issued only in
registered form as to both principal and interest and recorded
on books or records maintained by the Bond Registrar (the "Bond
Register" ) ,
The Bond Register shall contain the name and
mailing address of the owner of the Bond.
The Bonds shall be transferable only in whole and only if
endorsed in the manner provided thereon and surrendered to the
or transferee,
Any transfer shall be without cost to the owner
The Bond Registrar shall not be obligated to
Bond Registrar,
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transfer the Bonds during the fifteen days preceding any
principal and interest payment or redemption date,
Section 4,
Payment of Bonds,
Installments of principal
and interest on the Bonds shall be payable in lawful money of
the United States of America and shall be paid by checks or
drafts mailed on the installment payment date to the registered
owner at the address appearing on the Bond Register, except that
the last installments due on May 1, 2011, shall be paid on
presentation and surrender of the Bonds at the office of the
Bond Registrar in Port Townsend, Washington,
On surrender of
the Bonds at their maturity, the Bond Registrar shall cancel the
Bonds and, within thirty days, destroy the Bonds and furnish the
County a Certificate of Destruction,
Section 5,
Optional Redemption,
The County reserves the
right and option to prepay on any installment payment date on
thirty days' written notice to the registered owner all or a
portion of the principal amount of the Series A Bond and the
Series B Bond at par.
Upon any partial prepayment of either
Bond, the amount of the semiannual installment of principal and
interest on that Bond shall remain unchanged but shall be
recalculated to reflect the reduction in the principal amount
remaining unpaid and the resulting increase in the portion of
each installment payment credited to the principal of that
Bond.
The final installment payment date shall be adjusted to
reflect the prepayment and increased amount applied to principal
from each semiannual installment payment,
Section 6,
Failure
to
Pay
Installments,
If
any
installment of principal and interest is not paid when due, the
County shall be obligated to pay interest on that installment at
the same rate provided in the Bond until that installment is
paid in full,
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Section 7,
Pledge of Taxes.
For as long as any portion of
the Bonds is unpaid, the County irrevocably pledges to include
in its budget and levy taxes annually within the constitutional
and statutory tax limitations provided by law without a vote of
the electors of the County on all of the taxable property within
the County in an amount sufficient, together with other money
legally available and to be used therefor, to pay when due the
installments of principal and interest on the Bonds, and the
full faith,
credi t and resources of the County are pledged
irrevocably for the annual levy and collection of those taxes
and the prompt payment of those installments of principal and
interest.
Section 8.
Form and Execution of Bonds,
The Bonds shall
be typewritten on good bond paper in a form consistent with the
provisions of this resolution and state law, shall be signed by
the Chairman and Clerk of the Board of County Commissioners, and
the seal of the County shall be impressed thereon.
Only a Bond bearing a Certificate of Authentication in the
following form, manually signed by the Bond Registrar, shall be
valid or obligatory for any purpose or entitled to the benefits
of this resolution:
CERTIFICATE OF AUTHENTICATION
This bond is the fully registered Jefferson
County, Washington, Limited Tax General Obligation
Bond, 1991 (Community Center) (Series A) (Series B),
described in the Bond Resolution.
Jefferson County Treasurer,
Bond Registrar
The authorized signing of the Certificate of Authentication
shall be conclusive evidence that the Bond so authenticated has
been duly executed, authenticated and delivered and is entitled
to the benefits of this resolution.
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Section 9,
Bond Registrar.
The Bond Registrar shall keep,
or cause to be kept, at his/her office, sufficient books for the
registration of the Bonds which shall be open to inspection by
the County at all times.
The Bond Registrar is authorized, on
behalf of the County, to serve as the County's paying agent for
the Bonds and to carry out all of the Bond Registrar's powers
and duties under this resolution and County Resolution No.
establishing a system of registration for the County's bond and
obligations,
The
Bond
Registrar
shall
be
responsible
for
its
representations contained in the Bond Registrar's Certificate of
Authentication on the Bonds,
Section 10.
Preservation of Tax Exemption for Interest on
Bond.
The County covenants that it will take all actions
necessary to prevent interest on the Bonds from being included
in gross income for federal income tax purposes, and it will
neither take any action nor make or permit any use of proceeds
of the Bonds or other funds of the County treated as proceeds of
the Bonds at any time during the term of the Bonds which will
cause interest on the Bonds to be included in gross income for
federal income tax purposes.
The County certifies that it has
not been notified of any listing or proposed listing by the
Internal Revenue Service to the effect that it is a bond issuer
whose arbitrage certifications may not be relied upon.
Section 11.
Small Governmental Issuer Arbitrage Rebate
Exemption and Designation of Bonds as
"Qualified Tax-Exempt
Obligations."
The County finds and declares that (a) it is a
duly organized and existing governmental unit of the State of
Washington and has general taxing power; (b) the Bonds are not
"private activity bonds" within the meaning of Section 141 of
the United States Internal Revenue Code of 1986, as amended (the
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"Code"); (c) at least 95% of the net proceeds of the Bonds will
be used for local governmental activities of the County (or of a
governmental unit the jurisdiction of which is entirely within
the jurisdiction of the County); (d) the aggregate face amount
of all tax-exempt obligations (other than private activity
bonds) issued by the County and all entities subordinate to the
County (including any entity which the County controls, which
derives its authority to issue tax-exempt obligations from the
County or which issues tax-exempt obligations on behalf of the
County) during the calendar year in which the Bonds are issued
is not reasonably expected to exceed $5,000,000; and (e) the
amount
of
tax-exempt
obligations,
including
the
Bonds,
designated by the County as "qualified tax-exempt obligations"
for the purposes of Section 265(b) (3) of the Code during the
calendar year in which the Bonds are issued does not exceed
$10,000,000.
The County therefore certifies that the Bonds are
eligible
for
the
arbitrage
rebate
exemption
under
Section 148(f)(4)(D) of the Code and designates the Bonds as
"qualified
tax-exempt
obligations"
for
the
purposes
of
Section 265(b)(3) of the Code.
Section
12,
Bonds Negotiable,
The Bonds
shall be
negotiable instruments to the extent provided by RCW 62A,8-102
and 62A,8-105.
Section 13.
Bond Fund; Deposit of Bond Proceeds.
There is
created and established in the office of the County Treasurer a
special fund designated as the Limited Tax General Obligation
Bond Fund, 1991 (Community Center) (the "Bond Fund").
Accrued
interest on the Bonds, if any, received from the sale and
delivery of the Bonds shall be paid into the Bond Fund.
There
previously has been created and established in the office of the
County Treasurer a special fund designated as the Port Townsend
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Community Center Construction Fund (the "Construction Fund").
The principal proceeds received from the sale and delivery of
the Bonds shall be paid into the Construction Fund and used for
the purposes specified in Section 1 of this resolution.
Until
needed to pay the costs of the Project and costs of issuance,
the County may invest principal proceeds temporarily in any
legal investment, and the investment earnings may be retained in
the Construction Fund and spent for the purposes of that fund,
All taxes collected for and allocated to the payment of the
principal of and interest on the Bonds shall be deposited in the
Bond Fund.
Section 14,
Loan Resolutions.
The County covenants and
agrees with the United States
of America,
Department of
Agriculture, Farmers Home Administration, as the owner of the
Bonds,
to abide by the conditions of the loan resolutions
executed and dated August 14,
1989, and April 24,
1989, with
respect to each Bond for so long as that agency is the owner of
that Bond.
Section 15.
Approval of Bond Purchase Offers.
The United
States of America,
Department of Agriculture, Farmers Home
Administration, has offered to purchase the Bonds at a price of
par,
The Board of County Commissioners finds that acceptance of
such of f er
is in the County I s best interest and therefore
accepts the same,
The Bonds will
be typewritten
and delivered to the
purchaser in accordance with its offer, with the approving legal
opinion of Foster Pepper & Shefelman, municipal bond counsel of
Seattle, Washington, at the expense of the County.
Bond counsel
shall not be required to review and shall express no opinion
concerning the completeness
or
accuracy of
any
official
statement, offering circular or other sales material issued or
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used in connection with the Bonds, and bond counsel's opinion
shall so state,
The proper County officials are authorized and directed to
do everything necessary for the prompt delivery of the Bonds to
the purchaser and for the proper application and use of the
proceeds of the sale thereof.
ADOPTED by the Board of County Commissioners of Jefferson
County, Washington, this 20th day of May, 1991, at a regular
open public meeting thereof.
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BOARD OF COUNTY COMMISSIONERS
JEFFERSON COUNTY, WASHINGTON
ATTEST:
~~Li. ~~Oard
APPROVED AS TO FORM:
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Prosecuting Attorney (~~.:.~ )
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