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HomeMy WebLinkAboutOrd1965-347 ~ ORDINANCE NO. 347 AN ORDINANCE of the City of Seward, Alaska, repealing Ordinance No. 330, passed and approved February 3, 1964; confirming the result of a special election held within the city on November 19, 1963; providing for the issuance and sale of general obligation bonds of the city in the principal amount of $135,000 for the purpose of providing part of the money necessary to improve certain streets and avenues within the city as provided in Ordinance No. 327, passed and approved October 21, 1963 and authorized by the qualified electors of the city at such special election; creating a Construction Account and a Bond and Interest Sinking Fund Account, providing the date, form, terms, maturities and covenants of said bonds; and providing for the annual levy of taxes without limitation as to rate or amount to pay the principal of and interest on said bonds; and declaring an emergency. WHEREAS, at a special election held in the City of Seward, Alaska (hereinafter called the "City"), on the 19th day of November, 1963, the proportion of the qualified electors of the City required by law for the adoption thereof voted in favor of a proposition au- thorizing the issuance of unlimited tax levy general obligation bonds in the amount of not to exceed $135,000 for the purpose of providing part of the funds to make capital improvements to certain streets and avenues within the City as more particularly provided in Ordinance No. 327 of the City, passed and approved October 21, 1963; and WHEREAS, it is now found necessary and to the best interest of the City and its inhabitants that it sell and issue all of said bonds so authorized in order to provide the City's share of the money necessary for such purposes; NOW, THEREFORE, THE CITY OF SEWARD ORDAINS: Section 1. Ordinance No. 330 of the City, passed and ap- proved February 3, 1964, and entitled r- "AN ORDINANCE of the City of Seward, Alaska, providing for the issuance of general obligation bonds of the city in the total principal sum of $135,000 for the purpose of providing part of the money necessary to improve certain streets and avenues within the city as provided in Ordinance No. 327, passed and approved October 21, 1963, and authorized by the qualified electors of the city at a special election held therein on November 19, 1963; creating a Construction Fund and a Bond Redemption Fund; providing the date, form, terms and maturities of said bonds, and for unlimited tax levies to pay the principal thereof and interest thereon; confirming the sale of said bonds; and declaring an emergency." is hereby in all respects repealed. Section 2. The result of the special election held within the City on November 19, 1963, at which the proportion of the qualified electors of the City required by law for the adoption thereof voted in favor of a proposition authorizing the issuance of unlimited tax levy general obligation bonds in the amount of not to exceed $135,000 for the purpose of providing part of the funds needed to make capital improvements to certain streets and avenues within the City, is hereby in all respects confirmed. Section 3. There shall now be issued and sold the $135,000 principal amount of general obligation bonds of the City authorized by the qualified electors thereof at the above-mentioned special election, for the purpose of providing part of the funds necessary to make capital improvements to certain streets and avenues within the City as provided for in its Ordinance No. 327, passed and approved October 21, 1963. Said $135,000 of bonds (hereinafter called the "Bonds") shall be dated September 1, 1965, shall be in the denomination of $1,000 each, shall be registrable as to principal only, and shall bear interest at a rate of not to exceed 3 3/4% per annum payable on the first days of March and September of each year from date of issue as evidenced by coupons to be attached thereto. The Bonds shall be numbered as follows and mature on September first of each of the following years in the following amounts: 2. r- Bond Nos. Year Amount Bond Nos. Year Amount 1-5 1967 $ 5,000 60-66 1977 $ 7,000 6-10 1968 5,000 67-74 1-978 8,000 11-15 1969 5,000 75-82 1979 8,000 16-21 1970 6,000 83-90 1980 8,000 22-27 1971 6,000 91-98 1981 8,000 28-33 1972 6,000 99-107 1982 9,000 34-39 1973 6,000 108-116 1983 9,000 40-45 1974 6,000 117-125 1984 9,000 46-52 1975 7,000 126-135 1985 10,000. 53-59 1976 7,000 Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America at the branch of the First National Bank of Anchorage in Seward, Alaska, or, at the option of the holder, at The Chase Manhattan Bank in New York, New York. Section 4. The City hereby reserves the right to redeem Bonds numbered 91 through 135, maturing September 1, 1981 through September 1, 1985, in whole, or in part in inverse numerical order, on any interest payment date from date of issue at par plus accrued interest to the date of redemption. The City hereby further reserves the right to redeem Bonds numbered 53 through 90, maturing September 1, 1976 through September 1, 1980, in whole, or in part in inverse numerical order, on the following interest payment dates after September 1, 1975 at the following rates expressed as a percentage of the principal amount, plus accrued interest to the date of redemption: At 103% if redeemed March 1, 1976 through September 1, 1977 At 102% if redeemed March 1, 1978 through September 1, 1979 At 101% if redeemed after September 1, 1979. None of the Bonds numbered 53 through 90, maturing September 1, 1976 through September 1, 1980, shall be redeemed ahead of their fixed maturities, however, until all of the Bonds numbered 91 through 135, maturing September 1, 1981 through September 1, 1985, shall have been redeemed. 3. r' The agreement of the City with the United States Government relative to the sale of the Bonds provides that if and as long as the Government holds any of the Bonds it has waived and will waive (1) the noncallable provisions applicable to the Bonds so held, (2) the right to collect the specified premiums for the redemption of the Bonds so held, (3) the publication of notice of redemption of the Bonds to be redeemed. Notice of any such intended redemption shall be given by registered mail sent to the registered owners of the Bonds to be re- deemed at their addresses appearing on the registry book at least thirty days prior to the redemption date and, unless all of the Bonds to be redeemed are registered Bonds, by publication once in a financial journal printed in the English language and of general circulation in the City of New York, New York, such pUblication to be not more than forty-five nor less than thirty days prior to said redemption date. The redemption notice shall state the serial numbers of the Bonds called for redemption and that interest thereon will cease on the redemption date, and shall direct that such Bonds, together with all coupons, if any, maturing on or after the redemption date, shall be presented by the holders for payment and cancellation at the Seward Branch of the First National Bank of Anchorage. Section 5. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO. $1,000 STATE OF ALASKA CITY OF SEWARD GENERAL OBLIGATION STREET IMPROVEMENT BOND, 1965 The City of Seward, Alaska, for value received hereby promises to pay to bearer or if this bond be registered, to 4 . r--- - the registered holder hereof, on the first day of September, 19 , the principal sum of ONE THOUSAND DOLLARS together with interest thereon at the rate of % per annum payable semiannually on the first days of March and September of each year from date hereof as evidenced by and upon pre- sentation and surrender of the attached interest coupons as they severally become due, or until such principal sum shall have been paid or duly provided for. Both principal of and interest on this bond are payable in lawful money of the United States of America at the branch of the First National Bank of Anchorage in Seward, Alaska, or, at the option of the holder, at The Chase Manhattan Bank in New York, New York. Both such principal and interest are pay- able in accordance with the provisions of Ordinance No. 347 adopted by the Council of the City of Seward (herein called the on the 7th day of September, 1965 "City" )/, out of the 1965 General Obligation Street Improvement Bond and Interest Sinking Fund Account (hereinafter called the "Sinking Fund Account") of the City created by such ordinance. The city has reserved the right to redeem bonds of this issue numbered 91 through 135, maturing September 1, 1981 through September 1, 1985, in whole, or in part in inverse numerical order, on any interest payment date from date thereof at par plus accrued interest to the date of redemption. The city has further reserved the right to redeem bonds of this issue numbered 53 through 90, maturing September 1, 1976 through September 1, 1980, in whole, or in part in inverse numerical order, on the following interest payment dates after September 1, 1975 at the following rates expressed as a per- centage of the principal amount, plus accrued interest to the date of redemption: 5 . At 103% if redeemed March 1, 1976 through September 1, 1977 At 102% if redeemed March 1, 1978 through September 1, 1979 At 101% if redeemed after September 1, 1979. None of the bonds numbered 53 through 90, maturing September 1, 1976 through September 1, 1980, shall be redeemed a~ead of their fixed maturities, however, until all of the bonds numbered 91 through 135, maturing September 1, 1981 through September 1, 1985, shall have been redeemed. Notice of any such intended redemption shall be given in the manner provided in Section 4 of said Ordinance No. 347. This bond is one of an authorized issue of negotiable general obligation bonds of the city of like amount, date and tenor except as to number and date of maturity, in the aggregate principal amount of $135,000, and is issued pursuant to a vote of the qualified electors of the city and Ordinances No. 327 and No. 347, for the purpose of providing part of the money necessary to make capital improvements to certain streets and avenues within the city as more specifically provided in said Ordinance No. 327. The city has irrevocably covenanted by said Ordinance No. 347 that it will levy taxes annually upon all the taxable property within the city without limitation as to rate or amount and in amounts sufficient to pay the principal of and interest on the bonds of this issue as the same shall become due. The full faith, credit and resources of the city are hereby ir- revocably pledged for the annual levy and collection of such taxes and for the prompt payment of such principal and interest. It is hereby certified t~at all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed, and that the total indebtedness of the city, including this bond and the 6 . r bonds of this issue, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the City of Seward, Alaska, has caused this bond to be signed by its Mayor, to be atteste~ by its Clerk, the official seal of the city to be impresse~ hereon, and the interest coupons attached hereto to be signed with the facsimile signatures of said officials as of the first day of September, 1965. CITY OF SEWARD, ALASKA By Mayor ATTEST: City Clerk The interest coupons to be attached to the Bonds shall be in substantially the following form: NO. $ On the first day of , 19 the City of Seward, Alaska, will pay to bearer at the br8nch of the First National Bank of Anchorage in Seward, Alask8, or, at the option of the holder, at The Chase Manhattan Bank in New York, New York, the amount shown hereon in lawful money of the United States of America, said amount being the semiannual interest due that day on its General Obligation Street Improvement Bond, 1965 dated as of September 1, 1965 and numbered CITY OF SEWARD, ALASKA By Mayor ATTEST: City Clerk 7 . r- The Bonds shall have endorsed thereon the following registra- tion certificate: This bond may be registered as to principal only on the bond registry book of the city maintained at the branch of the First National Bank of Anchorage in Seward, Alaska, such registration to be noted hereon, and thereafter the principal of this bond shall be payable only to the registered holder, his legal repre- sentative or assigns. This bond, if registered, shall be transferable to another registered holder or back to bearer only upon presentation to said bank with the legal assignment duly acknowledged or proved. Registration of this bond shall not affect the negotia- bility of the co~pons attached hereto, which shall at all times be transferable by delivery. Date of Registration Name and Address of Registered Ownerr Signature of Authorized Officer Section 6. The Bonds shall be signed on behalf of the City by its Mayor, shall be attested by the City Clerk, and shall have the official seal of the City impressed thereon. Each of the interest coupons attached thereto shall be signed with the facsimile signa- tures of said officials. Section 7. Any purchaser of any block or blocks of the Bonds as advertised for sale by the City may elect to accept a non-negotia- bIe bond registered as to both principal and interest with a face value in the amount of such purchase in lieu of individual coupon bonds. 8 . r- Any such fully registered bond shall be executed in the manner pro- vided for the Bonds and shall be of type composition on paper of sufficient weight and strength to prevent deterioration throughout the life of the loan represented by such fully registered bond. FUlly registered bonds shall be dated as of September 1, 1965, shall bear such rate or rates of interest from such date as may be fixed upon the sale or sales thereof, shall mature in installments in the years and amounts set forth in Section 3 of this ordinance, and shall be in substantially the following form, with such variations, omissions and insertions as may be necessary under the circumstances: UNITED STATES OF AMERICA NO. R- $ STATE OF ALASKA CITY OF SEWARD GENERAL OBLIGATION STREET IMPROVEf.lENT BOND, 1965 THE CITY OF SEWARD, ALASKA (hereinafter called the "City"), acknowledges itself indebted and for value received promises to pay to (herein sometimes called the "Payee") or its registered assigns (herein sometimes called the "Alternate Payee"), the principal sum of DOLLARS on the first day of September in installments as follows: Year Principal Amount Year Principal Amount (Here insert maturity schedule of Bonds purchased) in lawful money of the United States of America, and to pay interest on the balance of said principal from time to time remaining in like lawful money at the rate of % per annum on the first days of March and September of each year 9. r-d from date ~~reof_until the principal amount hereof has been paid or such payment has been duly provided for. Both principal of and interest on this bond are payable in lawful money of the United States at the branch of the First National Bank of Anchorage in Seward Alaska, or, at the option of the holder, at The Chase Manhattan Bank in New York, New York. Payments of principal and interest, including prepayments of installments of principal as hereinafter provided, shall be noted on the Payment Record made a part of this bond. Upon final payment of principal and interest this bond shall be sub- mitted to the City for cancellation and surrender. Both principal of and interest on this bond are payable solely out of the special account of the City known as the "1965 General Obligation Street Improvement Bond and Interest Sinking Fund Account" (herein called the "Sinking Fund Account") created by Ordinance No. 347 of the City, adopted September 7, 1965 (herein called the "Ordinance"). In addition to the installments of principal required to be paid by the City as hereinabove set forth, the City at its option shall have the right to prepay installments due after September 1, 1980 on any interest payment date, in whole or in part, in multiples of $1,000, in the inverse chronological order of such installments, at the principal amount thereof plus accrued interest to the date of prepayment and, at its option, provided all of such installments maturing after September 1, 1980 shall have been paid or duly provided for, shall have the right to prepay on any interest payment date after September 1, 1975 installments due September 1, 1976 through September 1, 1980 in the inverse chronological order 10. r- of the aforesaid installments, in multiples of $1,000, as it may determine, at the following prices expressed in terms of a percentage of the principal amount thereof, plus accrued interest to the date of such prepayment: At 103% if paid on or prior to September 1, 1977 At 102% if paid after September 1, 1977 but on or prior to September 1, 1979 At 101% if paid after September 1, 1979. As long as the registered owner hereof shall be the Payee, the City may prepay on any interest payment date the entire unpaid principal amount hereof, or from time to time, in the inverse chronological order of said installments, may prepay such lesser portion thereof, in multiples of $1,000, as the City may determine, at the principal amount thereof plus accrued in- terest to the date of such prepayment. Notice of any such optional prepayment shall be given at least thirty days prior to the prepayment date by mailing to the registered owner of this bond a notice fixing such pre- payment date, the amount of the principal, and the premium if any, to be prepaid. As provided in the Ordinance, this bond is exchangeable, at the sole expense of the City, at any time upon ninety days' notice at the request of the registered owner hereof, and upon surrender of this bond to the City, for definitive bonds payable to bearer, registrable as to principal only, of the denomination of $1,000 each, bearing interest at the same rate as this bond, with the same rights of redemption as provided for definitive bonds in Section 4 of the Ordinance, in an aggregate principal amount equal to the unpaid principal amount of this bond and in the form of such coupon Bonds as provided for in Section 5 of the Ordinance. This bond is a general obligation bond of the City and has been duly issued by it pursuant to Ordinance No. 327 of 11. r the City, to a vote of the qualified electors thereof, and to the Ordinance> for the purpose of providing part of the funds to make capital improvements to certain streets and avenues within the City. The City has irrevocably covenanted by the Ordinance that it will levy taxes annually upon all the taxable property within the City without limitation as to rate or amount in amounts which will be sufficient to pay the principal of and interest on this bond as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and for the prompt payment of such principal and interest. This bond may be assigned, and upon such assignment the assignor shall promptly notify the City at the branch of the First National Bank of Anchorage in Seward, Alaska by regis- tered mail. The City may require presentation of this bond for verification of the Payment Record or, at its option, for exchange for a new fully registered bond. It is hereby certified that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed, and that the total indebtedness of the City including this bond does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the City of Seward, Alaskao has caused this bond to be signed on behalf of the City by its Mayoro to be attested by the City Clerk, and the seal of the City to be impressed hereon, as of the first day of September, 1965. ATTEST: CITY OF SEWARD, ALASKA By Mayor City Clerk 12. r=-- A fully registered bond shall have endorsed thereon the following form of assignment: ASSIGNMENT FOR VALUE RECEIVED, the undersigned registered owner thereof hereby sells, assigns and transfers the within bond unto DATED: In the presence of: (Repeat this form of Assignment) (As provided in the within bond, notice of any assignment thereof shall be given by the assignor by registered mail to the City at the branch of the First National Bank of Anchorage in Seward, Alaska, and upon receipt of such notice the bond shall be registered as to both principal and interest on the registration books in the name of the assignee named above, but the City shall have the right to require surrender of said bond for verification of the Payment Record or, at the option of the City, in exchange for a new fully registered bond.) PAYMENT RECORD Due Date Principal Principal Interest Date Name of Paying Agent Payment Balance Payment Paid Authorized Official Due C3 3/4%) and Title (enter amounts) $ (enter dates (leave for principal blank) (blank) (blank) and interest) ( due dates--leave one-half inch space between each due date, etc., for manual interlining, if necessary; also half a page at end for any explanation which might be required) Section 8. Any fully registered bond or bonds shall be signed on behalf of the City by its Mayor, shall be attested by the 13. r.- City Clerk, and shall have the seal of the City impressed thereon. Section 9. Any fully registered bond or bonds shall be re- deemable, in whole or in part, to the extent, at the time, in the manner and at the prices set forth in Section 4 hereof, except that there need be no publication of notice of redemption" provided, however, that as long as the United States of America or any agency or administrator of any agency thereof owns any such fully registered bond, the United States of America agency or administrator has waived and will waive the non-negotiable provisions applicable and the specified premiums for redemption set forth in said Section 4. Any fully registered bond or bonds may also be transferred by the registered owner thereof, provided that such transfer relates to the entire principal amount of the fully registered bond transferred, by proper execution of the assignment endorsed on such bond, and any such transfer shall be noted on the bond registration book of the City. Upon ninety days' written notice by the holder of any fully registered bond, the City shall cause to be prepared and shall deliver to such holder, at its sole cost and expense, definitive coupon bonds of type composition and on bond paper of weight and strength that is customarily used for serial bonds of an issue comparable to this issue of Bonds. Such definitive bonds shall be in the denomination of $1,000 each, shall have coupons attached bearing dates representing all in- stallments of interest due on each of said bonds, shall be in the total principal sum of the unpaid balance due on such fully registered bond, shall be numbered and mature as provided in Section 3 hereof on those dates of maturity which have not yet occurred on the date of such ex- change, except that if any prepayment authorized herein shall have been ef:ected, such prepayment shall be deemed to have redeemed such defini- tive bonds in inverse numerical order. Such definitive bonds and the 14. rr coupons attached thereto shall be executed and authenticated as herein provided for the Bonds. Section 10. The Bonds shall be sold after advertisement on sealed proposals to the highest and best private bidder or bidders sub- mitting a bid or bids with an effective rate over the life of the Bonds bid for of 3 3/4% or less, plus accrued interest to the date of delivery. Such bidders may submit bids on each of the following: a. Bonds maturing in the years 1967 through 1975 b. Bonds maturing in the years 1976 through 1980 c. Bonds maturing in the years 1981 through 1985 d. The entire issue. If no such bid is received from a bidder other than the United States of America or any agency thereof for part or all of the Bonds, the Bonds shall be sold to the United States of America or any agency thereof submitting a sealed bid at the rate agreed upon for the Bonds in the Offer of the Community Facilities Administration of the Housing and Home Finance Agency of the Government to purchase said Bonds, dated July 25, 1965. The Clerk of the City is hereby authorized and directed to cause a short form of the official notice of sale of the Bonds to be p'lhlished at least once in The Bond Buyer, at least fifteen days prior to the date when such bids will be received, publicly opened, considered "nd acted upon. Section 11. That there be and is hereby created a special account of the City to be known as the i'Street Improvement Construction Account" (herein called the "Construction Account;') at the Seward Branch of the First National Bank of Anchorage. The proceeds of the sale of the Bonds (except for accrued interest, which shall be paid into the Sinking Fund Account hereinafter created) and any and all other moneys which will be used to pay the cost of making the capital improvements to the streets 15. r and avenues within the City authorized in its Ordinance No. 327 and as provided herein and to pay all costs incidental thereto, shall be paid into the Construction Account and shall be expended solely for the purpose of paying the cost of such capital improvements and incidental costs. Moneys in the Construction Account shall be secured by such bank in the manner prescribed by statutes relating to the securing of public funds. Where the moneys on deposit in the Construction Account exceed the estimated disbursements needed therefrom for the next ninety days, the City may direct such bank to invest such excess funds in direct obligations of, or obligations the principal of and interest on which are secured by, the United States Government, which obligations shall mature at least ten days prior to the date or dates upon which such money is needed. The earnings from any such investments shall be de- posited in the Construction Account. Any moneys remaining in the Construction Account after all of the above-mentioned costs have been paid shall be promptly used to the extent possible for the redemption of Bonds, and any residue shall be deposited in such Sinking Fund Account for the uses and purposes herein provided. Section 12. That there be and is hereby created another spe- cial account of the City to be known as the 1965 General Obligation Interest Street Improvement Bond an..:}' Sinking Fund Account" (herein called the "Sinking Fund Account"), which shall be at all times completely segregated and set apart from all other funds of the City and shall be a trust fund for the security and payment of the principal of and interest on the Bonds as the same shall become due. The City shall deposit into the Sinking Fund Account (1) all accrued interest received from the sale and delivery of the Bonds, and (2) an additional amount from the proceer1s of the sale of the Bonds equal to the interest thereon to accrue From the date of delivery thereof to March 1, 1966. 16. r- The City hereby irrevocably covenants that it will make annual levies of ad valorem taxes upon all the taxable property within the City without limitation as to rate or amount in amounts which will be suffi- cient to pay the principal of and interest on the Bonds as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest as aforesaid. In the event that money and/or direct obligations of the United States of America maturing at such time or times and bearing interest to be earned thereon in amounts sufficient to redeem and retire the Bonds in accordance with their terms are set aside in a special ac- count in the Sinking Fund Account to effect such redemption or retirement, and such money and the principal of and interest on such obligations are irrevocably set aside and pledged for such purpose> then no further pay- ments need be made into the Sinking Fund Account for the payment of the principal of and interest on the Bonds, and the Bonds and the appurtenant coupons shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive the funds so set aside and pledged, and the Bonds and/or such coupons shall be deemed not to be out- standing hereunder. Section 13. Due to the necessity of obtaining the proceeds of the sale of the Bonds at an early date, an emergency is hereby declared to exist. The rules governing the introduction, reading, passage and approval of ordinances are hereby suspended, and thir ordinance shall become effective immediately upon its passage, approval, posting and publication as required by the City Charter. Publication of this ordinance shall be made by posting a copy ~hereof on the City Council bulleti:1 board and by publishing a notice of the place of posting and a brief statement of the purpose of this ordi- nance in a newspaper of general circulation in the City within a reasonable 17. time. PASSED by the Council of the City of Seward, Alaska, and approved by its Mayor this 7th day of September, 1965. CITY OF SEWARD, ALASKA By K~J't0, ~i;:<-~/; , . tic/~ Mayor ATTEST: ~~ ~. {:'L/c?& City Clerk 18.