I ORDINANCE NO. 2-e*3412,
2 AN ORDINANCE relating to local improvement districts and authorizing the
Finance Director to contract for interim financing of costs and
3 expenses of such districts pending the issuance of bonds.
4 WHEREAS it is desirable to provide by general ordinance authority
5 for the Finance Director of the City of Tacoma, Washington (the "City") to
6 contract for interim financing of the costs and expense of local improve-
7 ment districts of the City pending the issuance of bonds, all pursuant to
g Chapter 39.50 RCW; Now, Therefore,
9 BE IT ORDAINED BY THE CITY OF TACOMA:
10 Section 1. That the Finance Director is authorized to negotiate
11 and enter into contracts for the sale of warrants, installment notes, bond
12 anticipation notes, or other short-term obligations &,s authorized by Chap-
13 ter 39.50 RCW, up to the maximum of the then estimated costs and expense
i4 of each local improvement district. Unless otherwise provided by an ordi-
15 nance relating to a specific local improvement district, such obligations
16 may bear a fixed rate or rates or a variable rate or rates of interest
17 which may be based on a bank prime or the most recent prime rate of inter-
18 est published in the Wall Street Journal, but in any event shall not ex-
19 ceed a net effective interest rate of twelve percent (12%) per annum.
20 Such short-term obligations shall be dated as of the date of their issu-
21 ance and shall not be outstanding, together with any other short-term ob-
22 ligations issued to redeem the same, for longer than the time permitted by
23 Chapter 39.50 RCW. Such short-term obligations shall be registered in
24 accordance with Ordinance No. 22999, as it may be amended, if so required
25 in order to exempt the interest thereon from federal income taxation; the
26 Finance Director may designate which short-term obligations are those de-
1, Y
9dtund
I scribed in Section 3(d) of Ordinance No. 22999 as "obligations not usually
2 subject to trading."
3 The short-term obligations may be paid from the proceeds of local
4 improvement district bonds or consolidated local improvement bonds, from
5 assessment payments, from the proceeds of the issuance of other short-term
6 obligations, or from other City funds made available for that purpose.
7 The short-term obligations shall be drawn on the local improvement fund
a created for the applicable local improvement district, and unless other-
9 wise permitted by law, shall be payable solely out of that fund or the
10 Local Improvement Guaranty Fund of the City.
11 The short-term obligations may be subject to prior redemption,
12 may be sold at a discount, at par, or at a premium, and shall be in such
13 denominations and bear such other covenants respecting payment as the
14 Finance Director may determine. Both principal of and interest on the
15 short-term obligations shall be payable in lawful money of the United
16 States of America at the office or officers of the registrar.
17 Section 2. The City Council finds and determines that the maxi-
18 mum rate of interest and the standards for the index for the variable in-
19 terest rates established in this ordinance are in the best interest of the
20 City.
21
22 Passed JUN I 1 1985
23 or
24
25 Att ty C erk
26 Jec
#3671r
2
BLUE egal Department 'Fj) REQUEST for ORDINANCE CITY CLERK'S OFFICE
PINK - - - -Finance Dept.
GOLDENROD -Departmental 01y
of -%CWN or RESOLUTION NO. CIO
INSTRUCTIONS: File request in the City Manager's Office no later than 5:00 p.m. FRIDAY, eleven days prior to the
Council Meeting at which it is to be introduced. List facts necessary for the City Attorney's use in preparation of ordi-
nance or resolution. Attach all material pertinent to the subject. NOTE: All appropriation requests must be cleared
and approved by the Director of Finance or Controller before submitting to City Manager or Director of Public Utilities.
(See Section 2). Departments must complete all paragraphs except 2 and 3. (If necessary, refer to Guide 15.2 (LEG 210)
Subject: Departmental Request for Ordinance or Resolution). 2,474 -f -@,
DATE REQUEST MADE BY DEPARTMENT/DIVISION PROGRAM
(Name and Number)
May 2 2, 1? d H. Dow
Davi -111,12
Approved 7@to rids
,j,v @a.@i I J
2 . __ @of
David d XT Director of Fina# le ty Manager
4. PREPARATION OF AN ORDINANCE 7JD5rgV= (indicate which) is #wESTED FOR THE CITY COUNCIL
MEETING OF TUESDAY June 4, 1985
T 0:
Authorize the Finance Director to issue and sell bond anticipation notesp warrants or
installment notes when those short-term obligations have been otherwise authorized
by an ordinance creating a Local Improvement District (1,ID). Such short-term obliga-
tions shall not be outstanding for longer than permitted by Chapter 39.50 RCW nor
shall they exceed a net effective interest rate of 12% per annum.
5. BACKGROUND INFORMATION (Why is Request necessary?)
Currently, LID construction financing is obtained through.the issuance of interest bearing
warrants. This ordinance will add the additional financing 'Method of bond anticipation
notes (BAN's). BAN's will be competitively bid and the bidder providing the lowest and best
net interest cost will be awarded the BAN. Funds from the issuance of the interim financing
will be used to pay the construction cost of individual LID projects. Each L'ID project must
have the prior approval of the City Council before BAN bids-are solicited and awarded. The
addition of BAN financing is anticipated to reduce the financing costs of LID's and thereby
result in lower property owner LID assessments.
6. FUNDING SOURCE: (Enter Amount of Funding from each source)
Federal $State $City $Other Total Amount $
Funding for the proposed legislation is found in the -budget, Division
Page Fund Number & Name LID Property Assessments El N/A
L
ADM 019 (4/78) (OVER)
act Compliance Approved Not Approved Delay Recommended N%)t Applicable
(b) Contr Fx
COMMENTS:
(If needed, see Guide No. 3.1 (LEG 210), Subject: Affirmative Action and Contract Compliance.)
8. STATUS: Fx@ NEW LEGISLATION AMENDING LEGISLATION
Legislation amends Res/Ord. Section Chapter
9. SALIENT COMMENTS: List or identify significant information or exceptions that could be meaningful in processing
this legislation.
Authorize the Finance Director to issue Bond Anticipation Notes (BAN's) or other short-term
obligations as authorized by Chapter 39.50 RCW in addition to current interest bearing
warrants for the purpose of financing the construction costs of Council approved Local
Improvement District projects.
10. ESTIMATED TIME REQUIRED, AFTER LEGISLATION, TO IMPLEMENT PROJECT Three month,-, F1 N/A
11. ENVIRONMENTAL ASSESSMENT:
F-1 Non-Action F-1 Exempt r_1 Declaration of Non-Significance EIS
COMMENTS:
(If needed, see Guide No. 43 (ADM 1600), Subject: Environmental (SEPA) Public Information Center.)
12. SOURCE DOCUMENTS: (List all material filed in the City Clerk's Office as backup information for the request, and
attach said backup information.)
A. RCW 39.50,
B.
C.
D.
13, SUMMARY TITLE: (A brief sentence, not to exceed fifty words, as it will appear on the Council Agenda.)
Authorize the Finance Director to issue Bond Anticipation Notea(BAN's) or other short-term
obligations as authorized by Chapter 39.50 RCW in addition to current interest bearing
warrants. for the purpose of financing the construction costs of Council approved Local
Tmp-rnin-mont T)iQl-rinf- p;:Qj @@i-
14. INDEX DATA: (Provide a minimum ot three cross reference key words or phrases other than department or program.)
A- LID BAN Financing
B. Interim Financing of LID's
C. Bond Anticipation Notes
IS. Ordinance 234-112 First Read M85 Passed JUN 1 1 1985
Resolution Adopted
Comments or Other Action Taken:
ORDINANCE NO. 23412
AN ORDINANCE relating to local cmprove@
ment districts and authorizing the Finance
Director to contract for interim financing
Of costs and expenses Of such districts
pending the issuance of bonds.
WHEREAS it is desirable to provide by
general ordinance authority for the Finance
Director of the city of Tacoma, Washington
(the "City") to contract for interim financ-
ing Of the costs and expense of local im-
Provement districts Of the City pending the
issuance of bonds, all pursuant to Chapter
I 39.50 RCW; Now, Therefore,
BE IT ORDAINED 13Y THE CITY OF TA-
COMA:
Section 1. That the Finance Director is
authorized to negotiate and enter into con-
tracts for the sale Of warrants, installment
notes, bond anticipation notes or other
short-term obligations as authorized by Cha.
pter 39.550 ROW, up to the maximum of the
then estimated costs and expense of each
local district. Unless other-
wise provided by an ordinance relating to a
sP8cific local improvement district, such
obligations may bear a fixed rate or rates
or a variable rate or rates of interest which
may be based on a bank prime or the most
recent prime rate of interest published in
Ithe Wall Street Journal, but in any event
,shall not exceed a net effective interest
rate of twelve percent (12%) per annum.
I Such short-term obligations shall be dated
;as of the date of their issuance and shall
not be outstanding, together with any other
:Short-term obligations issued to redeem
the same, for longer than the time ort-
,imitted by Chapter 39.50 RCW. Such shper-
term obligations shall be registered in ac-
cordance with Ordinance No. 22999, as it
may be amended, if so required in order to
exempt the interest thereon from federal
income taxation- the Finance Director may
designate which short-term obligations are
those described in Section 3(d) of Ordinance
No. 22999 as "obligations not usually sub-
ject to trading."
The short-term obligations may be paid
from the proceeds of local improvement
district bonds or consolidated local improve-
ment bonds, from assessment payments,
from the proceeds of the issuance of other
short-term obligations, or from other City
funds made available for that purpose. The
short-term obligations shal'i be drawn on
the local improvement fund created for the
apFlicable local improvement district, and
un ess th. perrrfitted by law, shall
out of that fund or the
t Guaranty Fund of the
obligations may be sub-
emption, may be sold at a
r, or at a premi'trmi, and
h denominations and bear
nants respecting payment
irector may determine; Both
pri rest @on the short-term
obl' lawful money
of ca at the of-
fice
and de-
interest
for the
in this
of the
Passed June 11, 1985.
- DOUG SUTHERLAND, Mayor
Attest: GENELLE BIRK, City Clerk
June 13