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HomeMy WebLinkAbout1989-06 Issuance/Sale of G.O. Bonds RESOLUTION NO. [( Y--c1(, A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION IMPROVEMENT BONDS TO FINANCE CERTAIN PUBLIC IMPROVEMENTS IN THE DOWNTOWN AREA OF THE CITY OF ASHLAND, OREGON. WHEREAS, the City of Ashland, Oregon (the "City") has caused certain improvements in the downtown area of the City to be constructed pursuant to Resolution No. 88-49 passed on November 1, 1988, each at the expense of the abutting property owners, and has duly assessed the costs of such improvements upon the lots, blocks and parts thereof, and parcels of real property being directly benefited by these local improvements, and imposed systems development charges against certain property, in accordance with the provisions of law~ and WHEREAS, applications to pay the assessments and systems development charges in installments, as provided by Oregon Revised Statutes 223.205 to 223.295, have been duly filed by the owners of the benefited properties~ and WHEREAS, each of the applications so filed have been for improvements in the sum of $25.00 or more, and the amoun"t remaining unpaid upon each assessment for which applications have been filed, together with the unpaid balance of any previous assessments for improvements against the same property, does not exceed twice the assessed value of the benefited real property as shown by the last county tax roll~ and WHEREAS, each application provides that the property owner agrees to pay the assessment in equal semi-annual installments over a term of ten years, together with interest at the rate prescribed by law and each application has stated that tbe applicant and property owner does waive all irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the improvements to be constructed for which the a.ssess- ment is levied and in apportionment of the cost thereof; and WHEREAS, such applications have been filed in the principal sum of $812,441.59, of which $812,441.59 remains unpaid on assessments for which applications have been filed~ and WHEREAS, for the purpose of convenience and marketability, the City Council of the City has found and determined that bonds need not be issued for the sum of the unpaid assessments of $2,441.59. RESOLUTION - Page 1. NOW, THEREFORE, BE IT RESOLVED: Section 1. Authorization of Issuance. The City of Ashland, Oregon, a municipal corporation of the State of Oregon, does hereby authorize the issuance and sale of its negotia.ble general obligation improvement bonds in the principal sum of Eight Hundred Ten Thousand Dollars ($810,000) par value, for the purpose of funding obligations in amounts incurred by the City in the making of local improvements in the downtown area of the City which consist of the design, construction, repair and replacement of sidewalks~ design and construction of public restrooms~ design and construction of public areas with street furniture, landscaping and other decorations~ design and construction of municipal parking lots~ design and construction of pedestrian amenities~ purposes related to the foregoing~ and construction of facilities described in ORS 223.208(1)(a). Assessments against the benefited properties for the cost.s of the local improvements have been duly levied upon the rea,l property directly benefited thereby and such assessments and charges have been duly docketed in the lien docket of the City, and are liens against the several pieces of benefited property and the owners of the several parcels of benefited property affected by such assessments and charges have heretofore filed in writing their application to pay assessments in installments as provided by law, all as more fully set forth in Section 2 of this Resolution. Section 2. Projects Being Financed. That the particular improvements to which the applications apply and the amounts remaining unpaid on the aggregate of the applications and the dates of ordinances assessing the same are as follows, to wit: PROJECT NAME ORDINANCE DATE BALANCE Improvement of City of 12/6/88 Ashland by municipal parking lots, pedestrian amenities and purposes related thereto. $812,441.59 Section 3. Maximum Interest Rate. The Bonds shall be serial negotiable general obligation improvement bonds of the City and shall bear a maximum true effective rate of int:erest of not to exceed nine percent (9%) per annum, payable semi- annually. The Bonds shall be payable in any coin or currency which at the time of payment is legal tender for the payment of public and private debts within the United States of America. Section 4. Terms of Bonds. The Bonds shall be entitled "City of Ashland, Oregon General Obligation Improvement Bonds, Series 1989" (the "Bonds") and shall bear the manual or RESOLUTION - Page 2. facsimile signature of the Mayor of the City and the manual or facsimile signature of the City Recorder of the City. In addition, the City does hereby request and authorize the Bond Registrar to execute the Certificate of Authentication as of the date of delivery of the Bonds. The Bonds shall be issued in fully registered form, shall be in denominations of Five Thousand Dollars ($5,000) eac"h, or integral multiples thereof, shall be dated Hay 1, 1989, shall be numbered sequentially beginning with R-l, and shall mature serially in annual installments on the 1st day of May, as follows: YEAR AMOUNT 1990 $ 55,000 1991 60,000 1992 65,000 1993 70,000 1994 75,000 1995 85,000 1996 90,000 1997 95,000 1998 105,000 1999 110,000 Section 5. Payment of Bonds. The principal of the Bonds shall be payable upon delivery of the Bonds at maturity at the principal corporate trust office of the Paying Agent in Portland, Oregon. Payment of each installment of interest due on May 1 and November 1 of each year shall be made by check or draft of the Paying Agent mailed to the registered owner thereof whose name and address appears on the registration books of the City maintained by the Paying Agent as of the close of business on the 15th day of the month next preceding the interest payment date. Section 6. Optional Redemption. The Bonds of this issue maturing after May 1, 1995 are redeemable at the option of the City on May 1, 1995 and on any interest payment date thereafter at par together with accrued interest to the date fixed for redemption. The Bonds are redeemable, in whole or in part, in integral multiples of $5,000 in inverse order of maturii:y and by lot within a maturity. Notice of redemption shall be published as provided by law and shall be given by registered or certified mail not less than thirty (30) days prior to the date fixed for redemption to the registered owners of each Bond to be :redeemed at the address shown on the registration books of the City. In addition, notice of redemption shall be mailed to Standard & Poor's Corporation and Moody's Investors Service, Inc., New York City, New York. Bonds are redeemable at the office of the Paying Agent. RESOLUTION - Page 3. Section 7. Form of Bonds. The Bonds shall be issued substantially in the form set forth in Exhibit "A II attachE~d hereto and incorporated herein by this reference. Section 8. Appointment of Paying Agent and Registrar. The City does appoint and designate United States National Bank of Oregon of Portland, Oregon, as the Paying Agent and Regis"trar of the Bonds. The Finance Director is authorized to negotiate and execute on behalf of the City a Paying Agent and Registrar Agreement, as approved as to form by the city attorney. The Agreement shall provide for compliance with Oregon Administrative Rule 170-61-010. Section 9. Transfer of Bonds. The Bonds are transferable, or subject to exchange, for fully registered Bonds in the denomination of $5,000, or integral multiples thereof, by the registered owner thereof in person, or by the owner I s att.orney, duly authorized in writing, at the office of the Bond Re9istrar. The Paying Agent shall maintain a record of the names and addresses of the registered owners of the Bonds. The records of registered bond ownership are not public records within t~e meaning of Oregon Revised Statutes 192.410(4). All bonds issued upon transfer, or in exchange, for Bonds shall be valid general obligations of the City evidencinq the same debt and entitled to the same benefits as the Bonds surrendered for such exchange or transfer. All fees, expenses and charges of the Paying Agent and Registrar shall be payable by the City. The Registrar shall not be required to transfer or exchange any Bond after the close of business on the l5~1 day of the month next preceding any interest payment date. Section 10. Printing of Bonds. The Finance Director is authorized to contract for the printing of the Bonds. The Finance Director may provide for the printing of, in addition to the original issue of Bonds, additional bonds to be printed in blank form as to registration and to be designated by appropriate number for the Registrar for delivery to the registered owner upon transfer or exchange of Bonds. The additional bonds shall be dated as of May 1, 1989, shall be signed by the facsimile signature of the present Mayor of the City and the present City Recorder of the City and the Registrar shall manually sign the Certificate of Authentication as of the date of the transfer of the Bonds. Section 11. Security for Bonds. The Bonds are secured in part by the payments received by the City from the owners of the benefited property who have filed applications to pay the amount of the assessments in installments, by the lien of the assessment upon the real property directly benefited as docketed in the records of the City and the Bonds are payable from unlimited RESOLUTION - Page 4. ad valorem taxes levied upon all taxable property within t~e City. The City Council each year shall levy a direct property tax in such amount as will be sufficient to pay in full tile principal of and the interest upon the Bonds at the respective due dates thereof after first taking into consideration o1:her sources and revenues available for the payment thereof. Section 12. Designation as Qualified Tax-Exempt Obligation. The City hereby designates the Bonds for purposes of paral::lTaph (3) of Section 265(b) of the Internal Revenue Code of 1986, as amended, (the "Code") as "quali fied tax-exempt obligations" and covenants that the Bonds do not constitute private activity bonds as defined in Section 141 of the Code, and that not more than $10,000,000 aggregate principal amount of obligations, the interest on which is excludable under Section 103(a) of the Code from gross income for federal income tax purposes (excluding, however, private activity bonds other than qualified 501(c)(3) bonds) including the Bonds, have been or shall be issued by the City, including all subordinate entities of the City, if any, during the calendar year 1989. Section 13. Covenant as to Arbitrage. The proceeds: of the Bonds shall be used and invested in such manner that the Bonds shall not become "arbitrage bonds" within the meaning of Section 148 of the Code and the regulations issued thereunder. ,]~he City covenants that, within its lawful powers, it will not do, and will refrain from doing, anything in the issuance of the Bonds and in the investment and expenditure of the proceeds thereof which would result in the interest on the Bonds becoming taxable for federal income tax purposes. Section 14. Exception for Small Governmental Units. The City Council finds and determines that the Bonds of the City comply with the statutory requirements of Section 148(f)(4)(C) of the Code in that the City is a governmental unit having general taxing powers, the Bonds are not being issued for a private activity purpose, more than 95% of the net proceeds of the Bonds will be used for local governmental activities of the City, and the aggregate face amount of all tax-exempt obligations which will be issued by the City during the calendar year 1989 is not reasonably expected to exceed $5,000,000. Section 15. Sale of Bonds. The Finance Director is authorized to establish a date of sale and to advertise the Bonds for public sale at a price not less than 100% of par value thereof and accrued interest to date of delivery. The Notice of Sale shall be published as provided by law. The Notice of Sale shall specify that the City reserves the right to reject~ any and all bids, and in other respects the Notice shall comply with the provisions of Chapter 287 of Oregon Revised Statutes, as amended. All rates bid must be in integral multiples of one- RESOLUTION - Page 5. eighth or one-twentieth of one percent. All Bonds of the same maturity must bear a single rate from the date of issue to maturity. Section 16. Appointment of Bond Counsel. Messrs. Rankin VavRosky Doherty MacColl & Mersereau of Portland, Oregon are hereby appointed Bond Counsel for the issuance of the Bonds. Section 17. Preliminary and Final Official Statement. The City shall prepare a preliminary official statement for ~~e Bonds, which shall be available for distribution to prospective bidders not later than the date on which the notice of bond sale is first published. When advised by staff that the final official statement does not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained in the official statement not misleading in the light of the circumstances under which they are made, the Finance Director is authorized to certify the accuracy of the official statement on behalf of the City. Section 18. Execution of Documents. The Finance Director is authorized to execute the Certificate as to Arbitrage and any and all additional documents which may be reasonably required to issue, sell and deliver the Bonds. PASSED by the City Council in open session this ~A day of Apri 1, 1989. --//;;. /___ .~__._~. ,J" ,;' . ;/ /,/' /" '"/ L" _, ;L"'( '" C Catherine Golden, Mayor ATTEST: /' ----, 1/ ----,/-7d>.:<:/' -i:;?d -x--A&~~~ Nan Franklin, City Recorder RESOLUTION - Page 6. I- :>' 0 I- ...oP '" I- ... &J +> '" III 1\1 eq. ::> e '" '" -0 r. Q. 0..'" 0 01 1\1 er. '0 '" OIl :>,oP '" .... 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U 0.... llJ<to:: 0 <l: 0..1- 3 .... llJ.... .0 I:.t:: 0 .... ol/l C!l EXHIBIT A ADDITIONAL PROVISIONS This Bond is one of an authorized series of General Obligation Improvement Bonds, Series 1989, aggregating $810,000 in principal amount and is authorized by the laws of the State of Oregon, particularly by Oregon Revised Statutes Section 223.205 to 223.295, inclusive, the Charter of the City and Resolution No. <;J9-()6 (the "Resolution") adopted by the Ci-ty Council of the City on April L/, 1989. The Bonds of this issue maturing on and after May 1, 1995 are redeemable at the option of the City on May 1, 1995 and on any interest payment date thereafter at par value together with accrued interest to the date fixed for redemption. The Bonds are redeemable, in whole or in part, in integral multiples of $5,000 in inverse order of maturity and by lot within a maturity. Notice of redemption shall be published as provided by law and shall be given by registered or certified mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owners of each Bond to be redeemed at the address shown on the registra- tion books of the City. In addition, notice of redemption shall be mailed to Standard & Poor's Corporation and Moody's Investors Service, Inc., New York City, New York. Bonds are redeemable at the office of the Paying Agent. This Bond is transferable by the registered owner hereof in person or by the owner's attorney duly authorized in wri t.ing at the principal corporate trust office of the Bond Registrar in Portland, Oregon, but only in the manner and subject to -the limitations provided in the authorizing Resolution, and upon surrender and cancellation of this Bond. Upon such transfer, a new Bond or Bonds of authorized denominations of the same maturity and for the same aggregate principal amount will be issued to the transferee. The Bonds are issued in fully registered form and in the denomination of $5,000 each or any integral multiple thereof. This Bond may be exchanged at the principal corporate trust office of the Registrar for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations, upon the terms set forth in the Resolution. The City and the Registrar may deem and treat the registered owner hereof as the absolute owner hereof for the purpose of receiving payment of the principal hereof and interest due hereon and for all other purposes and neither the ci ty nor the Registrar shall be affected by any notice "1:0 the contrary.