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HomeMy WebLinkAboutOrd1976-419 r ATTACHED TO AND MADE A PART OF THE MINUTES OF THE SEWARD CITY COUNCIL - VOLill1E 17 0. - PAGE l5/~ ~ ..~ 12~Pf' ( CITY OF SEWARD, ALASKA ORDINANCE NO. 419 AN ORDINANCE OF THE CITY OF SEWARD, ALASKA, PROVIDING FOR THE ISSUANCE AND SALE OF $1,200,000 OF GENERAL PURPOSE GENERAL OBLI- GATION BONDS OF THE CITY OF SEWARD FOR THE PURPOSE OF PLANNING AND CONSTRUCTING IMPROVEMENTS TO THE MUNICIPAL WATER AND SEWER SYSTEMS AND FIXING THE DATE, FORM, TERMS AND MATURITIES OF SUCH BONDS. WHEREAS, at a special municipal election held in the City of Seward, Alaska, on October 5, 1971, pursuant to Reso- lution No. 829, passed and approved August 9, 1971, the provi- sions of the Charter and Code of Ordinances of the City of Seward, and other proceedings of Council duly and regularly had, the qualified electors of the City authorized the issuance of general obligation bonds of the City in the total principal sum of not to exceed $600,000 for the purpose of planning and constructing improvements to its water and sewer systems, and WHEREAS, at a special municipal election held in the City of Seward, Alaska, on October 7, 1975, pursuant to Reso- lution No. 926, passed and approved August 11, 1975, the provi- sions of the Charter and Code of Ordinances of the City of Seward, and other proceedings of Council duly and regularly had, the qualified electors of the City authorized the issuance of general obligation bonds of the City in the total principal sum of not to exceed $600,000 for the purpose of planning and constructing improvements to its water and sewer systems, and WHEREAS, pursuant to Resolution No. 945, passed and approved April 26, 1976, the City Manager is authorized to enter into a Loan Agreement with the Alaska Bond Bank Authority (the "Authority") providing for the purchase of General Obligation r Water and Sewer Bond or Bonds in the aggregate amount of $1,200,000 by said Authority, and WHEREAS, the City has been assured of grants from the State and Federal Governments for the remainder of the funds necessary to construct said improvements, and WHEREAS, it is deemed necessary and ln the best interest of the City and its inhabitants that the City now issue said $1,200,000 of bonds in a single combined issue. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. As used in this ordinance, the following words shall have the following meanings: a. The word "City" means the City of Seward, a municipal corporation duly organized and existing under the laws of the State of Alaska. b. The word "Bond" means the fully registered general obligation bond of the City in the principal amount of $1,200,000, issued pursuant to this ordinance, or the coupon bonds of $5,000 denominations into which such single fully registered bond may be converted pursuant to the provisions of Section 10 hereof. c. The word "Authority" means the Alaska Municipal Bond Bank Authority, a body corporate and politic constituted as an instrumentality of the State of Alaska. d. The words "Government Obligations" mean direct obligations of the United States of America or obligations, the payment of which is guaranteed by the United States of America. Section 2. For the purpose of providing part of the funds necessary to plan and construct improvements to the municipal water and sewer systems, the City shall issue its -2- r'" fully registered general obligation water and sewer bond (the "Bond") in the principal amount of $1,200,000 authorized by the qualified electors of the City at a special municipal election held in the City of Seward, Alaska, on October 5, 1971, pursuant to Resolution No. 829, passed and approved August 9, 1971, and at a special municipal election held in the City of Seward, Alaska, on October 7, 1975, pursuant to Resolution No. 926, passed and approved August 11, 1975. The Bond shall be registered as to both principal and interest, shall be dated June 1, 1976, shall be in the principal amount of $1,200,000 and shall be numbered R-l. The Bond shall be payable in installments on June 1 of each year as follows: Maturity Year Amount 1977 $ 30,000 1978 30,000 1979 35,000 1980 35,000 1981 40,000 1982 40,000 1983 45,000 1984 45,000 1985 50,000 1986 55,000 1987 60,000 1988 60,000 1989 65,000 1990 70,000 1991 75,000 1992 80,000 1993 85,000 1994 90,000 1995 100,000 1996 110,000 Such installments shall bear interest at a rate or rates not greater than 8% per annum, payable on the first day of December, 1976, and semiannually thereafter on the first days of June and December of each year from date of issue. Both principal of and interest on the Bond shall be payable in lawful money of -3- the United States of America to the registered owner at the address appearing on the registration certificate. Section 3. The City hereby reserves the right (subject to any applicable provisions of the agreement with the Authority described In Section 9 hereof) to prepay any or all unpaid installments or portions thereof, In inverse chronological order and in multiples of $5,000 on June 1, 1986, or on any interest payment date thereafter, at a price, calculated with respect to each installment or portion thereof to be prepaid, equal to the par amount thereof plus a premium of 1/4 of 1% of such amount for each year, or fraction thereof, from the date of redemption to the due date of the installment to be prepaid, plus accrued interest to the date of prepayment. Notice of any such intended prepayment shall be given by mailing notice thereof to the registered owner of the Bond, not more than sixty nor less than fifty days prior to said prepayment date. Interest on any installment or portion thereof so prepaid shall cease on such prepayment date. Section 4. The Bond and the Registration Certificate shall be In substantially the following form: UNITED STATES OF AMERICA NO. R-l $1,200,000 STATE OF ALASKA CITY OF SEWARD GENERAL OBLIGATION BOND, 1976 The City of Seward, a municipal corporation of the State of Alaska (hereinafter called the "City"), hereby acknowledges itself to owe and for value re- ceived promises to pay to the registered owner hereof, the principal sum of -4- r- ONE MILLION TWO HUNDRED THOUSAND DOLLARS ln the fOllowing installments on June 1 of each of the following years, together with interest on such install- ments, payable December 1, 1976, and semiannually thereafter on the first days of June and December of each year from the date hereof until such installments become due or have been prepaid, as follows: Maturity Year Amount 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 $ 30,000 30,000 35,000 35,000 40,000 40,000 45,000 45,000 50,000 55,000 60,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000 100,000 110,000 Both principal of and interest on this bond are payable in lawful money of the United States of America to the registered owner hereof at the address appearing in the registration certificate. Upon final payment of all installments and interest thereon, this bond shall be submitted to the City for cancellation and surrender. The City has reserved the right to prepay any or all unpaid installments, or portions thereof, in inverse chronological order and in multiples of $5,000, on June 1, 1986, or on any interest payment date thereafter, at a price, calculated with respect to each installment or -5- r portion thereof to be prepaid, equal to the par amount thereof plus a premium of 1/4 of 1% of such amount for each year, or fraction thereof, from the date of redemption to the due date of the installment to be prepaid, plus accrued interest to the date of prepay- ment. Notice of any such intended prepayment shall be given by mailing notice thereof to the registered owner, not more than sixty nor less than fifty days prior to said prepayment. This bond is issued pursuant to the Constitution and laws of the State of Alaska, the City Charter, a vote of the qualified electors of the City, and duly adopted ordinances and resolutions thereof, for the purpose of providing funds to pay part of the cost of planning and constructing improvements to the municipal water and sewer systems. This bond is payable both principal and interest out of the special fund of the City entitled "1976 General Obligation Bond Redemption Fund" created by Ordinance No. of the Council of the City (the "Bond Ordinance"). The City has obligated and bound itself to make annual levies of ad valorem taxes upon all the taxable property within the City without limitation as to rate or amount and in amounts sufficient, with such other moneys of the City available for such purposes as the Council may, from time to time, appropriate and order transferred to such Bond Redemption Fund, to pay the principal of and interest on this bond and the bonds -6- r-' of this issue as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy of such taxes and the prompt payment of such principal and interest. As provided in the Bond Ordinance, this bond is exchangeable, at the request and sole expense of the registered owner and upon ninety days' written notice thereof, for definitive bonds in a total principal amount equal to the unpaid principal amount of the bond, payable to bearer, in the denomination of $5,000 each, maturing and bearing interest at the same time and the same rate as the respective unpaid install- ments of principal of this bond, and with rights of redemption and in the form provided in the Bond Ordinance. It is hereby certified and declared 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, statutory or Charter limitation. IN WITNESS WHEREOF, the City of Seward, Alaska, has caused this bond to be signed by its Mayor, to be attested by its Clerk, and the official seal of the City to be impressed hereon, this first day of June, 1976. CITY OF SEWARD, ALASKA By Mayor -7- r ATTEST: City Clerk REGISTRATION CERTIFICATE This bond is registered in the name of the holder on the books of the City in the office of the City Clerk as to both principal and interest as noted in the registration blank below. No transfer hereof shall be valid unless made by the registered owner or his duly authorized agent in writing, and similarly noted hereon. All payments of principal and interest on this bond shall be made by the City with full acquittance by the City Comptroller's check, or by warrant of the City drawn on the Comptroller, made payable to the last registered holder as shown hereon and on the registration books of the City and delivered to such holder or mailed to him at his address noted hereon and on the registration books of the City. Date of Registration Name and Address of Registered Holder Signature of Registrar A fully registered bond shall have endorsed thereon the following form of assignment: -8- ~ 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) Section 5. The Bond shall be signed on behalf of the City by its Mayor, shall be attested by its City Clerk, and shall have the official seal of the City impressed thereon. Section 6. There is hereby created another special fund of the City to be known as the "1976 General Obligation Bond Redemption Fund" which Fund is created for the sole purpose of paying the principal of and interest on the Bond. The City hereby irrevocably covenants and pledges for as long as the Bond is outstanding that it will include in its annual budgets and make annual levies of ad valorem taxes upon all the property within the City subject to taxation, without limitation as to rate or amount, and in amounts sufficient, together with such other moneys available for such purposes as the Council may from time to time appropriate and order trans- ferred to such Bond Redemption Fund, to pay the principal of and interest on the Bond as the same shall become due. All of such ad valorem property taxes so collected and such other moneys as may be so appropriated shall be -9- r All of such ad valorem property taxes so collected and such other moneys as may be so appropriated shall be deposited to the credit of such Bond Redemption Fund and shall be used solely for the payment of the principal of and interest on the Bond as the same shall become due, and such moneys are hereby irrevocably pledged, set aside and appropriated for such purpose. 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 as the same shall become due. Section 7. The City Manager is hereby authorized and directed to negotiate with the Authority and to enter into an agreement with the Authority for the sale of the Bond to the Authority, provided that the interest rate to be borne by any installment of the Bond shall not exceed the interest rate on any corresponding bond or bonds of the Authority sold to provide funds for the purchase of the Bond by the Authority and provided that the Bond is purchased by the Authority at a price equal to par plus accrued interest. Said agreement shall be substantially in the form attached hereto, designated "Exhibit A" and incorporated by reference herein. The provisions of said agreement shall be applicable to the Bonds as if set forth herein in full. No rate of interest specified by said agree- ment for the Bond shall exceed 8%. Section 8. In the event that money and/or Government Obligations, maturing at such time or times and bearing interest to be earned thereon in amounts sufficient to redeem and retire the Bond in accordance with its terms are set aside in a special account to effect such redemption or retirement and such money -10- and the principal of and interest on such Government Obliga- tions are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bond and it shall cease to be entitled to any lien, benefit or security of this ordinance except that right to receive the funds so set aside and pledged, and shall be deemed not to be outstanding hereunder. Section 9. The Bond may be transferred by the registered owner thereof, provided that such transfer relates to the entire principal amount of the Bond, and such transfer is noted on the bond registration book of the City. Section 10. Upon ninety days' written notice by the holder of the Bond, the City shall cause to be prepared and shall deliver to such holder, at the sole cost and expense of the holder, 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 the principal amount of the Bond. Such definitive bonds shall be in the denomination of $5,000 each, shall be numbered in inverse chronological order, and shall be in the total principal sum of the unpaid install- ments of principal of the Bond. Coupon bonds shall correspond to $5,000 increments of the unpaid installments of the Bond and shall bear interest at the rates borne by the respective installments which they represent and shall mature at the time the respective install- ments become due and payable. Coupon bonds shall be callable in inverse numerical order at the same times and the same prices at which installments of the Bond may be prepaid. -11- r Notice of any such intended redemption shall be given by one publication thereof in a financial journal of general circu- lation in the City of New York, New York, not more than sixty nor less than fifty days prior to said redemption date, and by mailing a like notice at the same time to the holder of the Bond at the time of its conversion into coupon bonds at its last address as it appeared on the registration books of the City. Interest on any coupon bond so called for redemption shall cease on such redemption date unless the same is not redeemed upon presentation made pursuant to such call. Coupon bonds shall be in substantially the following form: UNITED STATES OF AMERICA No. $5,000 STATE OF ALASKA CITY OF SEWARD GENERAL OBLIGATION BOND, 1976 The City of Seward, a municipal corporation of the State of Alaska (hereinafter called the "City"), hereby acknowledges itself to owe and for value received promises to pay to bearer on the first day of June, 197 , the principal sum of FIVE THOUSAND DOLLARS together with interest thereon payable December 1, 1976, and semiannually thereafter on the first days of May and November of each year from date hereof at the rate of ____% per annum to date of maturity as evidenced by coupons attached hereto, upon presenta- tion and surrender of such interest coupons as they severally become due, or until such principal amount shall have been paid or duly provided for. -12- r Both principal of and interest on this bond are payable in lawful money of the United States of America at the office of the Comptroller, Seward, Alaska. The City has reserved the right to redeem any or all of the outstanding bonds of this issue in whole, or in part in inverse numerical order, on June 1, 1986, or on any interest payment date thereafter, at a price calculated with respect to each bond to be redeemed, equal to the part amount thereof plus a premium of 1/4 of 1% of such amount for each year, or portion thereof, from the date of redemption to the maturity date of the bond to be redeemed, plus accrued interest to the date of redemption. Notice of any such intended redemption shall be given by one publication thereof in a financial journal of general circulation in the City of New York, New York, not more than sixty nor less than fifty days prior to said redemption date, and by mailing a like notice at the same time to This bond is one of an issue of 240 general obligation bonds of the City of like amount, date and tenor except as to number, interest rate and date of maturity and is issued pursuant to the Constitution and laws of the State of Alaska, the City Charter, a vote of the qualified electors of the City, and duly adopted ordinances and resolutions thereof, for the purpose of providing funds to pay part of the cost of -13- r planning and constructing improvements to the muni- cipal water and sewer systems. This bond and the bonds of the issue of which it is one are payable both principal and interest out of the special fund of the City entitled "1976 General Obligation Bond Redemption Fund" created by Ordinance No. of the Council of the City (the "Bond Ordinance") . The City has obligated and bound itself to make annual levies of ad valorem taxes upon all the taxable property within the City without limitation as to rate or amount and in amounts sufficient, with such other moneys of the City available for such purposes as the Council may, from time to time appropriate and order transferred to such Bond Redemption Fund, to pay the principal of and interest on this bond and the bonds of this issue as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy of such taxes and the prompt payment of such principal and interest. It is hereby certified and declared 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 and the bonds of this issue, does not exceed any constitutional, statutory or Charter limitation. IN WITNESS WHEREOF, the City of Seward, Alaska, has caused this bond to be signed with the facsimile -14- r- signature of its Mayor, to be attested by its Clerk, the official seal of the City to be impressed hereon, and the interest coupons pertaining hereto to be signed with the facsimile signature of said City Clerk this first day of June, 1976. CITY OF SEWARD, ALASKA By ~layor ATTEST: City Clerk The interest coupons attached to the coupon bonds shall be in substantially the following form: No. $ ON THE FIRST DAY OF , the City of Seward, Alaska, will pay to bearer at the office of the Comptroller of the City of Seward, Alaska, the amount shown hereon in lawful money of the United States of America, said amount being the semiannual interest due that date on its general obligation bond, Series 1976, dated June 1, 1976, and numbered CITY OF SEWARD, ALASKA By City Clerk The coupon bonds shall be signed on behalf of the City with the signature of its Mayor, shall be attested by its City Clerk, and shall have the official seal of the City -15- r'-- impressed thereon. Each of the attached interest coupons shall be signed with the facsimile signature of said City Clerk. Section 13. The City covenants to the purchaser of the Bond that it will make no use of the proceeds of the Bond at any time during the term thereof which, if such use had been reasonably expected at the date of the Bond is issued, would have caused the Bond to be an arbitrage bond within the meaning of Section 103(d) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations thereunder. PASSED by the Council of the City of Seward, Alaska, and approved by its Mayor at a Special meeting of said council held this ~ day of }fay , 1976. CITY OF SEWARD, ALASKA ._~, C /-;~..(.' .:.,'; , . 7:--'. /- . ~. - 1 : ;..: -' . - i-.' ~ ",. . ,It:::.:-~' . .'. ' C~ty Cl rk' C ' " - . FIRST:R~~-I~G /' J 0 ~ ~>~ CI_-J //. /i/~~ By /s/ Richard A. Neve' Mayor M:'lY 1, lCJ7r; SECOND READING AND PASSAGE DATE May 10, 1976 EFFECTIVE DATE and final reading Hay 17, 1976 -16-