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Home My WebLink AboutORDINANCE 0243-1974243-74 oP;)i;;/.',(::; .'..f :.,~" Cit'/ nf Kg....- i, Al-.:;k:, . the is:.~u:'-co of $4,,3~>0,000 principal amount of geDer¢.i cbli-,;,+i-,n rnfutdi~¢~ he-.ds of e. ho cJ.t'/ ¢~r tho purl":;,: of Dr-;-/iding p,.%r~. of the fllnds to refund ~.ertain of the city's outst&ndinq obligation bonds; providing and authorizing the purchase of cer{:ain obligations with the proc~.~ds of t/lo sale of such refunding bonds and certain moneys in *~le bond redcmp%io,% funds .of the city securing such bonds to be refunded and for the use and applica- tion of the moneys to be derived from such investments; providing for th~ redemption of tile outstanding bonds to be refunded; providing the ds. to, form, terms, maturities and covenants of said reZunding bonds to be issued and for u.~limited t~x levies to pay the prinoip&l thereof and interest thereon; confirming the sale thereof, and declaring an emergency. the City of Kenai, Alaska (hereinafter c~lled the "City"}, now has outstanding its general obligation bonds in the aggregat~. principal anount of 6320,000 issued under date of April 1, 1970 (hereinafter called the "1970 Bonds"), which bonds mature on ;tprii i in each o~ the ~oliowing years in ~.ne ~oiiowing amounts and bear inter~st as f:!lows~ Years Amounts Rates Years Amounts Rates '1975 $10,000 8.00% 1983 $20,000 7.00% 1976 10,000 8.00% 1984 20,000 7.00% 1977 10,000 8.00% 1985 20,000 7.10% 1978 15,000 8.00% 1986 25,000 7.20% 1979 15,000 8.00% 1987 25,000 7.25% 1980 15,000 7.00% 1988 30,000 7.25% 1981 15,000 7.00% 1990 30,000 7.30% 1982 20,000 7.00% 1991 30,000 7.30% WHEREAS, ~he proceedings of the Council of the City author- £zing the issuance of the 1971 Bonds provide that the City may ¢all such bonds for redemption on April 1, 1980, or on any interest payment date thereafter, at certai~ specified premiums plus accrued interest to the date of redemption; and WIIL'Rf./~g, thc. Cfr-., ~nw has outstay]ding its general obligation bol~ds in the aggregate principal amount of $845,000 issued under date of AUgUSt 1, 1971 (hereinafter called the "1971 Bonds"), which bpr~ds mature August 1 in each of the following years in the following amounts and bear interest as follows~ Interest Interest Years Amounts Rates Year~ Amounts Rates 1974 $85,000 6.25% 1978 $110,000 5.50% 1975 90,000 6.00% 1979 115,000 5.70% 1976 95,000 6.00% 1980 120,000 5.90% 1977 100,000 5.30% 1981 130,000 6.00% WIIEREAS, the City now has outstanding its general obligation bonds in the aggregate principal amount of $1,940,000, i~sued under date of January 1, 1972 (hereinafter called the "1972A Bondm"), which Bonds mature on January 1 in each of the folly;lng years in the following amounts and bear interest as follows= Interest Interest Years Amounts Rates Years Amounts Raee~ 1975 $ 65,000 6.20% 1984 $105,090 5.75% 1976 70,000 6.20% 1985 110,000 5.90% 1977 70,000 6.20% 1986 120,000 6.00% ]978 75,000 6.90% 1997 125,000 1979 80,000 6.20% 1988 135,000 6.20% 1980 85,000 6.20% 1989 140,000 6.25% 1981 90,000 6.20% 1990 150,000 6.25% 1982 95,000 6.~5% 1991 160,000 6.25% 1983 100,000 5.60% 1992 165,000 6.25% WHEP4~AS, the proceedings of the Council of the City author- !zing the !s~u-_nce of ~he 1972A Bonds provide that the City may call such bonds for redemption on January 1, 1982, or on any interest payment date thereafter, at certain specified premiums plus accrued intere~2 to the date of redemption~ and WHEREAS, the City n~; has out~eandtng its g~neral obltg~ion bonds in the aggregate principal amount of $1,000,000 issued under d~te of October 1, 1972 (hereinafter called the "1972B Bonds"), which Bond~ mature October 1 i~ each of the following years in the following amount= and bear interest as follows, -2- Years ]~mo~ts l~t~ Years ]~mounts Rates 1974 $30,000 7.00% 1984 G55,000 5.40% 1975 30,000 7.00% 1985 55,000 5°50% 1976 35,000 7.008 1986 GO,O00 5°75% 1977 35,000 7.00% 1987 65,000 5.75% 1978 40,000 5.50% 1988 65,000 5.75% 1979 40,000 5.00% 1989 70,000 5.75% 1980 40,000 5.00% 1990 75;000 5°80% 1981 45,000 5.25% 1991 80;000 5°875% 1982 45,000 5.25% 1992 85;000 5.875% 1983 50;000 5.40% WHEREAS, the proceedinqs of the Council of the City author- izin9 the issuance of the 1972B Bonds provide that the City may call such bongs for r~demption on October l, 1982, or on any interest payment dato thereafter, at certain specified premiums plus accrued interest to the data of redemption~ and WiI~REAS, after due consideration it appears to this Council that the 1970 Bonds, the 1971 Bonds, the 1972A Bonds and the 1972B Bonds (herein toqether called the 'Outstanding Bonds'] may be refunded by the issuance aid sale of the general obligation re£undin~ bonds of the City authorized herein (hereinafter called the 'Refunding Bonds') so that a substantial saving to the City and its taxpayers will be effected by the issuance of the Re£unding Bonds, the redemption of the 1970 Bonds on October 1, 1984, the defeasance of the 1971 Bonds, the redemption of the 1972A Bonds on ~uly 1~ 1987, and the redemption of the 1972B Bonds on October 1~ 1987! and ~REAS, in orde~ to effect such refunding in the manner that ~lll be most advantageous to the City and its taxpayers, it is hereby £ound necessary and advisable that certain #Acquired Obligations~ (he~etna£~er identilied), bearing interest and maturing at such time or times as necessary to pay the principal of mtd interest on th~ Outstanding Bonds as the same shall become due and to so redeem the Outstanding Bonds, be purchased out of the proceeds of sale of the Refunding Bonds and moneys in certain bond redemption £unds of the City. NON, ~iEREFORE, BE IT ORDAINED by the Cott~cil o£ the City of Eenai, Alaska, as follows~ Section 1. For the purpose of providing part of the mo~eys requireds (1) ~o pay ~e p~incipal of and ink,est on the 1970 Bond~ coming due ~ and including Oc~ber 1, 1984 ~d ~ redeem and retire on Oo~ber 1, 1984 ~he 1970 Bonds maturing after said da~e, and (2) to pay ~e principal of ~d in,rest on the 1971 Bonds c~ing due to and including August 1, 1981, ~d (3) to pay the principal of and in,rest on ~e 1972A Bonds c~ing due ~ ~d including July 1, 1987 and to redeem and retire on July 1, 1987 the 1972A Bonds maturing after said date, and (4). to pay the principal of and interest on the 1972B Bonds coming ~ue to and including October 1, 1987 and to redeem and retire on October 1, 1987 the 1972B Bonds maturing after said date, the City shall issue the Refunding Bonds in the aggregate principal amount of $4,050,000. The Refunding Bonds shall be dated April 1, 1974, shall be in the denomination of $5,000 each, shall be numbered, shall mature and bear interest payable semiannually on the first days of January and July of each year (commencing July 1, 1974) fro~ date of issue as £ollow~ Bond Haturity Interest Bond ~a~urity Interest Nos. Date .~c~nt~ Rates Nos. Date Amounts 1-23 7/1/74 $115,000 5.50% 402-420 1/1/84 $'95,000 5.30% 24-40 1/1/75 85,000 5.50% 421-439 7/1/84 95,000 5.30% 41-58 7/1/75 90,000 5.50% 440-458 1/1/85 95,000 5.35% 59-77 1/1/76 95,000 5.50% 459-478 7/1/85 100,000 78-98 7/1/76 105,000 5.50% 479-499 1/1/86 105,000 5.40% 99-117 1/1/77 95,000 5.50% 500-520 7/1/86 105,000 5.40% 118-138 7/1/77 105,000 5.50% 521-542 1/1/87 110,000 5.50% 139-160 1/1/78 110,000 5.50% 543-564 7/1/87 110,000 5.50% 161-183 7/1/78 115,000 5.50% 565-587 1/1/88 115,000 5.60% 184-206 1/1/79 115,000 5.50% 588-611 7/1/88 120,000 5.~0% 207-229 7/1/79 115,000 5.50% 612-636 1/i/89 125,000 5.70% 230-254 1/1/80 125,000 5.50% 637-660 7/1/89 120,000 5.70% 255-278 7/1/80 120,000 5.50% 661-686 1/1/90 130,000 5.80% 279-304 1/1/81 130,000 5.50% 687-712 7/1/90 130,000 5.80% 305-331 7/1/81 135,000 5.50% 713-736 1/1/91 120,000 5.85% 332-348 1/1/82 85,000 5.10% 737-760 7/1/91 120,000 5.85% 349-365 7/1/82 85,000 5.10% 761-785 1/1/92 125~000 5.90% 366-383 1/i/8~ 90,000 5.20% 786-8!0 7/1/92 125,000 5.90% 384-401 7/1/83 90,000 5.20% -4- be p~yable in lawful mon~-y of tho Unit--d..':~-.~.~..... ~f fo~erfca et the option of th~ hold~r, at Seattle Trust and S0vf~qs Bank, Washington or Chemic8] Bank, New York, Hew York. So~tioD 2. The City hereby res-ryes the right ~ rede~ any or al~ of the ~ef~ding Bonds outst~nding in whole, or in part invezs~ n~erical order, on July 1, 1981, or on s,y interest payment ~te thereafter, at par plus accrued i,~erest ~ the date of Notic~ Of any such intended red~ption shall be gfv,~s by on~ ~he city of l;ew York, New York, not more than 40 nor i~ss ~han 30 days prior to such redemption date and by ~fling a like notice ~ same time to Seattle-First National Bank, at its ~in offic~ Seattle, Washington, or to the successor or successor~ in business said bank, if any, at its or their main office. Int~eo~ on any ~f~dinq Bond or Bonds so called for redem~ion shall cease on such redemption date unless the oa~e are not rede~ed u~n ~on ~de purs~nt to such In addition to such p~lication and m~iling the City shall also mil notic~ of ay ouch intended redemption to Standard i Poor's Cor~ration ~d M~dy's Investor0 S~rvico, Inc., N~w York, New York, or ~ ~eir b~tneso euccoosors, if any. ~e mailing of such no,ice shall no~, however, be a condition precedent ~o the oall ~ any ct the ~f~dln~ Bonds fo~ redemption, and failure to giro ouch notice ~hall not affe=t ~o right of ~e City to redeem tho ~f~ding Bonds ~a11~ {o~ ~9dom~ion in the manner set forth in the precedi~g paragraph. Seot!o~_ 3. The Ref~ding Bonds shall be in substantially ~e following fo~ -5- Tho City of ~ona, i~ Al~mk~ (horoino.~er called tho deceived promioo~ ~ p/~y ~ boa~or on ~l~o ~ir~ day o~ . ,, ~;j~tho~ v~ith intere~ thereon at ~he rate o~ _ . ,% per annum date of i~ouO (~o~inq ~uXy 1~ 1974) upon pto~enta~ion and outtondot of tho attached in~re~ cou~nn ~s th~ severaXly b~come d~. Both principal of and ].n~oroot on ~hi~ bond are payable in ~e~toal Bank~ tl~ Yo~k, t~o~ York. ~o Ci[y hao ro~ervod ~he riqht [o rede~ any or all of the outstandinq hondo of thi~ ia~ue in ~olo, or in part in invcroe numerical order, on ~uZy 1, 1981 or on any into~oo~ payment date ~ho~o~E~e~ al par pluo accrued in, erect ~ tho da~e o~ redemption. t~o~/oo o~ ~y ou~h intended r~ption shall bo qiven by ~o p~ioa~ion ~hereof in a financial ~ournal o~ ~enoral circula- ~ion tn ~ho ci~y o~ l;o~; Yor~, No~ York, not moro than 40 nor less ~an 30 days prior to ~uoh redemption de~o and by mailt~q a like ot~too tn ~oat~le, t'tanhing~n, ct ~ ~he oucce~or in bu~ine~ of said bank~ if any~ a~ t~, main office. Interest on any bond or bonds no -6- ~ia bond ts one of an issue of 810 bondn of like ~te and tenor except aa ~ numbe~, rate of interest and date o~ maturity tn the aggregate prtncpal amount of $4,050,000, which are issued for the purpose of providing part of tho mon~ ~ refund outs~nding general oblfq~tfon bo~ds of the~ City f~ tho principal amo~t of $4,095,000. aoaoNdan~e wi~h ~ho p~ovisions of the Con~g~u~ion and applicable statu~ of the ~tate of Alaska and ordinan~e~ duly pa~ed by Cit~ Council. ~e City hereby ir~ovoc~bly ~ov~na~tz that it will ~xes ~n~lly u~n all ~e ~xable property in the City withou~ limitation as ~ rate or amoun~ and ~n amounef~ ~u~ficient, with other ~ ~o bo~8 of thi~ tssua as the ~amo s~11 bo~omo 4u~. ~e faith, credit ~d resourceo of th. City are hereby irrevocably pledqed fez ~he ~nual levy ~d collection of nuch taxeo and tho prompg payment of such ~rinci~l and l~ is he~y certified that all acts, conditions and ~hings required to be done precedent to and in the isouance of ~io bond have happened~ b~en done and porformsd and that ~e ~tal indebt~dnoas of the City, includin~ ~io bond and ~he bond~ of thio issue, does no~ exceed any conotitutional or otatutory limitation. IN WI~ES~ WIlE~OP, the City of Konai, Alas~k~, hao cau~ ~is bond to be signed with the faeoimilo ~ignaturo of the Mayor of the City, to be attested by itc Finance Director, the ~eal of th~ City to bo Impressed hereon and the interest coughs attached hereto ~ be oiqned with the facsimile siqnature~ of $aid offioial~ thi~ -7- first ¢l~y of ;..[,ri]., 1974 AT%~ST ~ CITY OF Ki::U~I, ALA:{KA By, I~yor ~ina~ce' b'£rector The interest coupons attached to ~he Refunding Bonds ~hall be in substantially the following forms NO. On the first day of · 19 _ , the City of Kenai, Alaska, will pay to bearer at the main office of the National Bank of Alaska, Anchorage, Alaska, or at {:he option of the holder, at Seattle Trust and Savings Bank, amour shown hereon in lawful money of the United S~s of ~ori~a~ sa~d ~o~t being the ~nterest due tha~ date on its general obliga~ion ref~ding bond dated April 1, 1974, and ~u~e=ed CITY OF KENAI~ A~KA ATTEST " S_og.t!on 4. The Refunding Bo~ds shall be signed in the corporate name of the City by the facsimile signature of the Mayor o£ ~le City holding such o£ficc on the date of passage of this -8- ordinance~ and the manual signature of the Finunce Director. Each of the interest coupons attached thereto shall be siqned with the facsimilQ signatures of said officials. Section 5. The City hereby irrevoc~bly covenants that for as long as any of the Refunding Bonds are outst~ndinq it will make annual levies of ad valorem taxes without limitation ss to rate or amo%~nt upon all the property within the City subject to taxation which, with other moneys legally available therefor, will be suf- £icient in amount to pay the principal of and interest on the Refunding Bonds as the same shall become due. The full faith, credit and resources of th~ City are hereby irrevocably pledged for the annual levy and collection of such taxes and for the prompt payment of such principal and interest. Section 6. There is hereby created a special account of the City known as the "1974 Refunded Bond Redemption Account" (here- inafter called the "1974 Refunded Bond Account"), which Account is to be drawn upon for the sole purpose of paying the principal of and interest on the Outstanding Bonds. The proceeds of sale of the Refunding Bonds (exclusive of accrued interest thereon, if any, which shall be paid into the 1974 General Obligation Bond Redemption Fund hereinafter created), shall be credited to such Account and used immediately upon the =ece~pt thereof to discharge the obligations of the City under Orainances 179-70, 201-71, 205-71, 207-72, and 243-74 of the City authorizing the issuance of the Outstanding Bonds by providing for the payment as hereinafter set forth in this section of the principal of and interest on the Outstanding Bonds. The City shall discharge such obligations by the use of such proceeds and of moneys now held in the bond redemption funds of the City created by said ordinances (in an amount not greater than the interest accruing on the Outstanding Bonds from their respective last interest payment dates to une date of delivery of the Refunding Bonds to the initial purchaser thereof), and by the purchase of certain general obligations of the United States government ("Acquired Obligations"), bearing such interest and maturing as to principal and interest in such amounts and at such times so as to provide for the payment of~ (a) Interest on the 1970 Bonds which will become due and payable on or before October 1, 1984. (b) The principal of the 1970 Bonds which will mature on or before October 1, 1984. (c) The redemption price payable on October 1, 1984 for the principal of the 1970 Bonds maturing after that date. (d) Interest on the 1971,Bonds which will become due and payable on or before August 1, 1981. (e) The principal of the 1971 Bonds which will mature on or before August 1, 1981. (f) Interest on the 1972A Bonds which will become due and payable on or before July 1, 1987. Cg) The principal of the 1972A Bonds Which will mature on or before July 1, 1987. (h) The redemption price payable on July 1, 1987 for the principal of the 1972A Bonds maturing after that date. (i) Interest on ~he 1972B Bonds which will become due and payable on or before October 1, 1987. (J) The principal of the 1972B Bonds which will mature on or before October 1, 1987. (k) The redemption price payable on October 1, 1987 for the principal of the 1972B Bonds maturing after that date° Such Acquired Obligations are set forth in Schedule A-1 attached to this Ordinance and incorporated by ~-eference herein. Such Acquired Obligations shall be purchased at a yield not greater than 5.575% per annum! provided, however, that a sum not greater than $645,416.46 may be used to acquire Acquired Obligations at the current market price. Such .money and Acquired Obligations shall be irrevocably -10- deposited with Seattle-First National Bank, Seattle, Washington (hereinafter called the "Refunding Agent"). Any amounts described in subparagraphs (a) through (k) of this section which are not provided for in full by such money and the purchase and deposit of the Acquired Obligations described in this section shall be provided for in full by such money and the purchase and deposit of the A~quired Obligations described in this section shall be provided for by the irrevocable deposit of the necessary amount out of the proceeds of sale of the Refunding Bonds or any other moneys of the City legally available therefor with the aforesaid Refunding Agent. . Section_7. The City hereby irrevocably calls for redemption on October 1, 1984 ~e outstanding 1970 Bonds maturing after such date in accordance with the provisions of Ordinance No. 179-70 of the City authorizing the redemption and retirement of the 197~ Bonds prior to ~h¢ir fixed maturiti~s. The City hereby irrevocably calls for redemption on July 1, 1987 the outstanding 1972A Bonds maturing after such date in accordance with the provisions of Ordinance No. 205-71 of the City authorizin9 ~e &edemption and retirement of the 1972A Bonds prior to their fixed maturities. The City hereby irrevocably calls for redemption on October 1, 1987 the outstanding 1972B Bonds maturing after such date in accordance with the provisions of Ordinance No. 207-72 of the City authorizing the redemption and retirement of the 1972B Bonds prior to their fixed maturities. Said calls for redemption shali be irrevocable after the delivery of the Refunding Bonds to the initial purchasers there~ f. The Refunding Agent, aotin~in concert with the City Clerk, is hereby authorized and directed to provide for the giving of -11- 1 III1~ I notice of the redemption of the Outstanding Bonds in accordance with the applicable provisions of said ordinances. The Refunding Agent is hereby authorized and directed to pay the City Clerk, or, at the direction of the Clerk, to the paying agents for the Outstanding Bonds, sums sufficient to pay, when due, the sums specified in subparagraphs (a) through (k) of Section 6 of this Ordinance. All such sums shall be paid from the moneys and Acquired Obligations deposited with said Refunding Agent pursuant to the previous section of this ordinance, and the income therefrom and proceeds thereof. All moneys and Acquired Obligations deposited with said Refunding Agent and any income therefrom shall be deemed assets of the 1974 Refunded Bond Account and shall be held, invested (but only at the direction of the City Clerk) and applied for the benefit of the City and holders of Outstanding Bonds in accordance with the provisions of this ordinance and with the laws of the State of Alaska. All moneys held by the Refunding Agent pursuant to this Ordinance, after October 1, 1987, shall be paid to the City. The City will take such actions as are found necessary to see that all necessary and proper fees, co~0ensation and expenses of the Refunding Agent for the Outstanding Bonds shall be paid when due. The proper officers and agents of the City are directed to obtain from the Refunding Agent an agreement setting forth the duties, obligations and responsibilities of the Refunding Agent in connection with the redemption and retire- ment of the Outstanding Bonds as provided herein and stating that such provisions for the payment of the fees, compensation, and expenses of such Refunding Agent are satisfactory to it. In order to carry out the pur~Dses of the preceding section of this ordinance and this section, the Mayor and Clerk are -12- authorized and directed to execute and deliver to Seattle- First II~tJ.onal Berth, £r-.sttl,:, ,.;.~.~:~i,.~on, a copy of such merit when the provi, sions .of it h~ve been ifF. ecl end determimed. Such agreement, when fin-.':.lly executo, d, shall b~; marked "Exhibit A", shall be attached to e~is ordim~nce and by this reference thereto hereby made a part of thi~ ordinance. Section 8. There is hereby created a special fund of the City to be known as the "1974 General Obliqation Bo~d Redemption Fund," which fund shall be drawn upon for th, sole purpose of paying the principal of and interest on the Refunding BoDds as the same shall become due. All accrued interest received from the sale of the Refunding Bonds shall be paid into the 1974 General Obligation Bond Redemption Fund. Section 9. In the event that money and/or direct obligation~ of the United States of America, and/or obligations guaranteed by ~e United Stzt~ of ~.~rica, maturing at ~uch time er time~ and bearing interest to be earned thereon in amounts (together with such money, if necessary) sufficient to redeem and retire the Refunding Bonds in accordance with their terms, are set aside in the 1974 General Obligation Bond Redemption Fund of the City to effect such redemption and retirement, and such moneys and the principal of and interest on such obligations are iwrevocably set aside and pledged for such purpose, then no further payments need'be made into the 1974 General Obligation Bond Redemption Fund for the payment of the principal of and interest on the Refunding Bonds, and the Refunding Bonds and the coupons appurtenant thereto shall =ease to be entitled to any lien, benefit or security of this ordinance except the right to receive the moneys so aside and pledged~ and the Refunding Bonds and ~ueh coupons shall be deemed not to be outstandiDg hereunder. ~e=tlon 10. The City hereby covenants that it will not -13- i any other f~ds of the City which may br deemed Revenue Code and the epplic~ble requlatJ, o,:s thereunder which, such use h~d been reasonabl~ ezpected on the date of delivery of the Refunding Bonds to the initial purchasers thereof, would have ~used the Ref~ding Bonds to be "arbitrage bonds" withi~ the mean~.ng of said section and said regulations. ~e City will comply with the requirements of subsection (d) of Section 103 of th~ Internal Revenue Code and the applicable Regulations thereunder ~roughout ~e term of the Refunding Bonds. This Council hereby finds and determines that the issuance and sale of the Ref~ding Bonds at this time will effect a saving to the City and its taxpayers. In making such finding and determination this Council has given consideration to the interest to the fixed maturities of the Refunding Bonds and the Outstanding Bonds being refunded, the costs of the issuance of the Refunding Bonds and the known earn.d income from the invest- ment of the proceeds of sale of th~ Refunding Bonds pendinq redemption of the Outstanding Bonds. This Council hereby further finds and determines that the moneys and Acquired Obligations to be deposited with the Refunding Agent for the Outstanding Bonds in accordance with Section 6 of thi~ Ordinance will discharge and satisfy the obligations of the City under the ordinances authorizing the issuance of the Outstanding Bond~ and the pledges, charges, trust, covenants and agreoments of tho City ~erein made or provided for as to said Outstanding Bonds, and that said Outstanding Bonds shall no longer be deemed to be outstanding under said ordinances i~m~ediately upon ~he deposit of such moneys and the Acquired Obligatio, s with the Refunding Agent. Section 11. The written offer of Seattle-First National -14- Bank dated March 6, 1974, to purchase the Refunding Bonds at the price specified in such offer, and under the terms and conditions thereof as provided in said offer anti in this nrdin?nce is hereby in all respects accepted and confirmed. The proper City officials are hereby authorized and directed to do everything necessary for the prompt execution and delivery of the Refunding Bonds to said purchaser and for the proper application and use of ~;~ proceeds of male ~hereof. Section 12. If any one or more of the covenantz or agree- men~s provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements in this Ordinance and shall in no way affect the validity of the other provlGions of ~is ordinance cz of th~ Bonds. Section 13. In the judgment of ~his Council, this ordinance iS one necessary for the immediate preservation of the public peace, health and safety, and shall become effective immediately upon its passage. PASSED by the Council of the City of Kena~, Alaska~ at a regular meeting thereof held ~/liS ~ day of ~~. _ , 1974. CITY OF KENAI, ALASKA Mayor -15- ;{ gCh~;DUJ,E A-1 $1,190,000 136,000 261,000 344,009 421,000 144,000 148t000 99,000 163,000 .%1,000 92,000 36,000 130,000 91,000 30,000 128,000 3.10,000 112,000 83,000 23,000 105,000 82,000 18,000 100,000 20,000 55,000 20,000 100,000 COD~ 1 GN~4A PC BONDS t:OTES })! LLS 5. 105 GNI~A PC 4/06/07 6. ] 25% BONDS 3.25% UO;~ ~)'; 5/15/~5 6. 375% J~O:IJ4; 8/15/8( 6.375 % DONI):; 2/15/S2 7.0t BO;~D~: 8/15/8 7.0: NO'i'EJ; 2/15/81 3.5 % D O:: J:,f; 11/15/80 6. ~'l 5 ~ NO'~'~ S 5/15/80 4.0~ BO:.~DS 2/15/80 7.0~ NO~'~.:S 6.25 % NOT]';S 7.0% EX Iq 3/7/79 6.0 % No'~nn Z ~/15/78 8.35% ~X ];d 8/28/7~ 6.25~ NO'r'~:r; 2/15/78 6.25% EX J./,l 8/0~/71 6. ~ 75% NOT2:S 6.25 ~ NOTi.:S 11/1 7.50 % NO'~; ~ ~/~ 5/76 6.50 % ~O'~'E S 7.0 % NO'I';~S 12/31/75 8. 375% ' NOTES 9/30/75 6.0 % NO~'J~S 5/15/75 -'- ~ L],S 1/14/75 -- B~ LLS --. BILLS 9/24/74 -- BILLS 7/30/74 - Government N.:ttJ. onnl Mortqaa. e Association Par~icJ.}:,a t.J. ou Cert:ifJ cares - Unit~.d Starer; Treasury Donds - Unitqd State:: Treasury i~otc~ - United St~tm: Trcasur9 Bills ' Export-Import Bank of [JnJted States z,..~3_ .-,~_~_~ .~c~._~ , Clerk of Alaksa, DO }IE~BY CERTIFY that the foreqoing is a true and correct copy of Ordinance No~3.~W of said City, duly passed by its Council and approved by its Mayor at a regular 1974. Clerk. EXIIIf~IT A A G R E E M E N T ~IIS AG~.:E~.~NT, made and entered into as of ~he first day of April, 1974 by ,nd beew~en the City of Kena~, Al~sk~ (ehe "City"), and Seattle-First NatioDa]. Bank, Seattle, Washington (~he "Refun~l~q Agent"); W ! T N ~ S S E T Ils Section 1. Recitals. The City has issued a~d sold the fol~owing general obligation bondss Date of Issue Authorizin~ Ordinance ~rein Called April 1, 1970 179-70 1970 Bonds August 1, 1971 201-71 1971 Bonds January 1, 1972 205-71 1972A Bonds Oottober 1, 1972 207-72 1972B Bonds S. id 9~ts~nding genera! obligation bond~ arc h~r:in together c=11ad th~ "Outstanding Bonds". The City may provide for the red,mpeion of the Outstanding Bonds prior to their final maturieies, including amounts to pay principal and interest through ~he date fixed for such redemption. The City by Ordinance No. 243-74 '" / 19)~._, (herein called adopted by the City Council on .m-~,~ ~. , the "Ordinance") has determined to refund the Outstanding Bonds in aocordance with th~ terms of said Ordinance. Section 2. Provisions for RefundiDg ~he Ou~standing Bonds.. To a~complisb the ref~nding of the Outstanding Bonds ~he City, simultaneously with the delivery of the Refunding Bonds issued pursuant to the Ordinance, does h~reby a~ree to irrevocsbly deposit with ~he Refunding Agen~ in ~rus~ for ~h~ security and benefit of ~he holders and owDers of the Ou~tanding Bonds suff~cie,~ obliga- tions or evidence thereof '"A ~ cqulred Obligations") an descr£bed in Schedule A-1 attached hereto, and any money, if necessary, to provide for thc payment of~ (a) Interest on the 1970 Bonds which will become due and payable on or before October 1, 1984. (b) The pr~ncipal of the 1970 Bonds which will mature on or before'October 1, 1984. (c) The redemption price payable on October i, 1984 for the principal of the 1970 Bonds maturing after that date. (d) Interest on the 1971 Bonds which will become due and payable on or before August 1, 1981. (e) The principal of the 1971 Bonds which will mature on or before August 1, 1981. (f) Interest on the 1972~ Bonds which will become due and payable on or before July 1, 1987. (g) The principal of the 1972A Bonds which will mature on or before July 1, 1987. (h) The redemption price payable on July 1, 1987 for the principal of the 1972A Bonds maturing after that date. (i) Interest on the 1972B Bonds which will become due and payable on or before October l, 1987. (J) The principal of the 1972B Bonds which will mature on or before October 1, 1987. (k) The redemption price payable on October 1, 1987 for the principal of the 1972B Bonds maturing after that date. Such Acquired Obligations shall be paid for out of the pro- oeeds of sale of the Refunding Bonds, and out of other monies now on hand in the bond redemption funds of the City specified in the Ordinance. On or before ~he delivery of the Rtfunding Bonds to the initial purchasers thereof the City agrees that it will cause robe delivered to the Refunding Agent statements setting forth the maturity schedules of the Outstanding Bonds by number, amount, date of maturity and interest rates, the amount of interest to be -2- paid on each semiannual interest payment date, the amount of principal to be paid on each annual principal payment date and the amount of the principal to be pa~d on the date~ chat the remaining Outstanding Bonds are to be redeemed. The City by the Ordinance has irrevocably called the 1970 Bonds for redemption and prepayment on October. l, 1984. The City by the Ordinance has irrevocably called the 1972A Bonds for redemption and prepayment on July 1, 1987. The City by the Ordinance has irrevocably called the 1972B Bonds for redemption and prepayment on October 1, 1987. Said calls for redemption and prepayment shall be irrevocable upon the delivery of ~he Refunding Bonds to the initial purchasers thereof. The Refunding Agent, in concert with the City Clerk (the "Clerk"), shall provide for publication and mailing of the proper notices of such redemption and prepayment 'i~ accordange with the provisions of the Ordinance. Section 3. Disbursements by Refunding Agent. The Refunding Agent shall present for payment on the due dates thereof any Acquired Obligations so deposited with it and shall apply the proceeds derived therefrom and the interest paid thereon in accordance with the provisions of the Ordinance and this agreement. Moneys shall, in a timely manner, be transferred by the Refunding Agent to the Clerk or, at the direction of the Clerk, to the paying agents for the Outstanding Bonds, in amounts sufficient for the payments specified in subsection (a) through (k) of Section 2 of this agreement. Section 4. C_ustody ~nd Safekeeping 9~ Obligations. For as long as any of the Outstanding Bonds are outstanding, on or before the 20th day of each January and July commencing with the month of July, 1974, the Refunding Agent shall render a statement as of the last day of the preceding month to the Clerk, which statement shall set for~h.~he cash and Acquired Obligations held by the Refunding Agent, any of such Auuu{red Obligations which {lave matured and the amounts received by the Refunding Agent by reason of such ~aturi%y, the interest earned on any of such Acquired Obligations, a list of any investm~nts or roinvestments made by the Refunding Agent in other obligations and the interest and/or principal derived therefrom, the amounts of cash delivered to the Clerk and the dates of the use thereof for the payment of the principal of and interest on the Outstanding BondN as the same shall become due and payable, and any other transactions of the Refunding Agent pertaining to its duties and obligations as set forth herein. All Acquired Obligations, moneys and investment income defaulted with or received by the Refunding Agent pursuan~ to this agreemen~ uhall be subject to the trust created by this agreement, and the Refunding Agent shall be liable for the preservation and safekeeping thereof; provided, however, it shall not be responsible Section 5. Duties and 0b.ltgations of ~h~ .R~funding Agent. The duties and obligations of the ~efunding Agent shall be as prescribed by the provisions of this agreement and the Ordinance and the Refunding Agent shall not be liable except for the performance of its duties and obligations as so specifically set forth and to act in good faith in the performance thereof, a~d no implied duties or obligat~ons shall be ~ncurred by the Refunding Agent other than those specified herein. The Refunding Agent may consult with counsel of its choice, and the opinion of such counsel shall be full and complete authorization aha protection in respect of any action taken or not taken or suffered by it hereunder in good faith and in accordance with the opinion of such counsel. Section .6. Compens~ion of Refundin~ Ag~. The arrange- ments heretofore made for the payment of the fees, compemsation --4-- and exp~nse~ of the Refunding Agent for servioes rendered by it pursuant to the provisions of this agreement are s~isfactory to it. ATTEST ~ ' C~tY Clerk' - CITY OF KENAI, ALASKA -7 Mayor / SEATTLE-FIRST NATIONAL BANK -,%- 190,000 5.10% GNIIA ]'C 4/06/fl7 136,00o 6. 125% BOi:DS 13./1B/f:$ 261 ~ 000 3.23% BONi)f; 5/19/85 344 t 000 6. 375% 421,000 6.3~ 5% BO:~I)S 2/15/82 144,000 7.0% BO:'H~: 8/15/81 148,000 7.0% NO'I'E~; 2/15/81 99,000 3.5~ BONI.,S 11/15/80 163,000 6.875% NOTES 5/15/~ 0 92,000 7.0% NOT]:S 11/15/79 36,000 6.25% NOT]:S 8/15/79 130,000 7.0% EX 1M 3/7/79 91,000 6.0% 30,000 8.35% EX 128,000 6.25% 110,00O 6.25% EX 112,000 6. ~75% NeY)IS 5/15/77 g3,0O 0 6.25~ NO'fi.IS 11/]. 5/76 23,000 7.50% NOTES 8/15/76 105,000 6.50% NOTES 5/15/76 8~, 000 7.0% HO'I']~ S 12/31/75 18,000 8.3'~59 ' NOT]:S 9/30/75 100,000 6.0~ NO'~'I~ S 5/~ 5/75 20,000 -- BI LLS 1/14/75 55,000 -- BILI,S 12/17/74 20,000 --, BILLS 9/24/74 100,000 -- BILLS 7/30/74 G~.IA PC - Government National l.lortfla~.e Association CeE tx .. }'ar tlci}'~::t~.c,:~ - ""' ' BONDS - United i:tat'::; Treasury l:onds ~:OTDS - U~ii',':d Stat<':; Treasury ])ILLS United Stat.n: "' - 1 ~.casury Bills EX I~1 Export-Import - Bank of United Slates EXHIHIT A A G R E E M E N T TIIIS AG~]EI~NT, made and entered into as of the first day of April, 1974 by and between the City of Ken,i, Alask~ (the "City"), and Seattle-First National Bank, Seattle, Washinqton (the "Refundi~q Agent"); Date of Issue April 1, 1970 August 1, 1971 January 1, 1972 Octtober 1, 1972 W I T N E S S E T I1~ Section 1. Recitals. following qeneral obligation bonds~ A~thortzing Ordinance 179-70 201-71 205-71 207-72 The City has issued and sold th~ llerein Called 1970 Bonds 1971 Bonds 1972A Bonds 1972B Bonds Said outstanding genera! eblipation bond= are h~rctn tc~:~hcr call:d tho "Outstanding Bonds". The City may provide for the red-mption Of the Outstanding Bonds prior to their final maturi~ies, including amoun.~s to pay principal and interest throuqh the date fixed for such redemption. The City by Ordina~ce No. 243-74 adopted by the City Council on ..... , 19__, (herein called ~he "Ordinance") has dete~mined to refund the Outstanding Bonds in accordance with the terms of said Ordinance. S~eg~ioD 2. Pr_o~isions for Refundi~g thee OuesPa.ndin~ BpDds. TO accomplish the refunding of the Ou~standing Bo~ds the City, simultaneously with the delivery of the Refunding Bonds issued pursuant to the Ordinance, does hereby a~ree to irrevocably dec, sit with the Refunding Agent. in trust for 9he ~ecurity and benefit of the holders and owners of th~ Outstanding Bonds sufficien% obliga- tions or evidence thereof ("Acquired Obligations") as described in ~chcHule A-1 . tt'chr, d hereto, ~d a~y money, if necessary, to provid, for the payment of: (8) Interest om the 1970 Bonds which will become due and payable on or before April 1, 1984. (b) The principal of the 1970 Bonds which will mature on or before April 1, 1984. [c) The redemption price payable on April 1, 1984 for the principal of the 1970 Bonds maturing after that date. (d) Interest on the 1971 Bonds which will become due and payable on or before August 1, 1981 (e) The principal of the 1971 Bonds which will mature on or before August 1, 1981. (f) Interest on the 1972A Bonds which will become due and payable on or before July 1, 1987. (g} The principal of the 1972A Bends which will mature On or before July 1, 1987. (h) The redemption price payable on July 1, 1987 for the principal of the 1972A Bonds maturing after that (i) Interest on the 1972B Bonds which will become due and payable on or before October 1, 1987. (j) The principal of the 1972B Bonds which will mature on or before October 1, 1987. (k) The redemption price payable on October 1, 1987 for the principal of the 1972B Bonds maturing after that date. Suoh Acquired Obligations shall be paid for out of the pro- ceeds of sale of the Refunding Bonds, and out of other monies now on hand in the bond redemption funds of the City specified in the Ordinance. On or before the delivery of the Refunding Bonds ~.o the initial purchasers thereof the City agrees that it will cause to be delivered to the Refunding Agent statements setting forth the maturity schedules of e~e Outstanding Bonds by number, amount, date of maturity and interest rat~s, the amount of interest to be "2"" paid on each semiannual interest payment d~te, the amount of principal ~ be ~aid ,)r, e~ch an~uol principal payment d~te ond the amount of th~ principal to be paid on the dates that the remaining Outstanding Bonds are to be redeemed. The C~ty by the Ordinance has irrevocably called the 1970 Bonds for redemption and prepayment on April 1, 1984. The City by the Ordinance has i~'revocably called the 1972A Bonds for redemption and prepayment ¢, July 1, 1987. The City by the Ordinance has irrevocably called the 1972B Bonds for redemption and prepayment on October 1, 1987. Said calls for redemption and prepayment shall be irrevocable upon the deltvery of the Refunding Bonds to the initial purchasers thereof. The Refunding Agent, in concert with the City Clerk (the "Clerk"), shall provide for publication and mailing of the proper notices of such redemption and prepayment in accordance with the provisions of the Ordinance. Section 3. Disbursements by Refundi~g..Ag.en.t. The R~funding Agent shall present for payment on the due dates thereof any Acquired Obligations so deposited with it and shall aDply the proceeds derived ~erefrom and the interest paid thereon in accordance with the provisions of the Ordinance and this agr~em-nt. Moneys shall, in a timely manner, be transferred by the Refunding Agent to the Clerk or, at the direction of the Clerk, to the paying agents for the Outstanding Bonds, in amounts sufficient, for the payments specified in subsection (a) through (k) of Section 2 of this agreement. Section 4. Custody and Safekeepi~ 9f Obli~ations. For as long as any of the Outstanding Bond~ are outstanding, on or before the 20th day of each January and July commencing with the month of July, 1974, the Refunding Agent shall render a statement as of the last day of the preceding month to the Clerk, which statement shall set forth the cash and Acquired Obligations held by the --3-- Refunding Agent, any of such Acquired obliqa~ioms which have matured and the amounts received by '..~ RefundiDg Agent by reason of ~uch maturity, the interest earned on any of such Acquired Obligation~, a list of any inve~tmcmtm or reinvestment~ made by the Refu~dlng Agent in other obligations ~od the inter,st and/or principal derived therefrom, the amounts of cash delivered to the Clerk and the of the use thereof for the payment of the principal of and inter,st on the Outstanding Bonds as the same shall become duo and payable, and any other transactions of the Refunding Agent pertaining to its dutie~ a~d obligations as set forth hersln. All Acquired Obligation~, moneys and inve~tm~nt deposited with or received by the Refunding Agent pursuant to this agreement shall be subject to the trust created by this agreement, and the Refunding Agent shall be liable for the preserva~ion and safekeeping thereof; provided, however, it shall not be respon~ible for any depre~iation t~ value of any of ~he ~cquired Obliga~o,~. ~,e~io~,,5,. D_uties and p~,l.i~t,~ns of the The duties and obligations of the Refundimg Agent shall be as prescribed by the provisions of th~ agreement and the Ordinance and the Refunding Agent shall not be liable except for the performa-cm of its duties and obligations as so specifically set forth and to aot in good faith in the performance thereof, and no implied 4uties or obligations shall be incurred by the Refunding Agent other than those speoified here{n= The Refunding Agent may consult with counsel of its oheicg, and the opinion of such counsel shall be full and =ampler. authorization and protection in respect of any action taken or not taken or suffered by it hereunder in good faith and in accordance with the opinion of ~uch couns el. ~eotion ,6. Com~ensation of Refunding, Agent. The arrange- ments heretofore made for the payment of the fees, compensation '4-- and expenses of the f~.;fund£ng l~gent for services rendered by it p~rsuant to the provisions of this agreement are st, tisfaotory CITY OF ]~I~NAI, ALASKA A~TEST ~ Mayor SEATTLE-FI]{ST NATIOn,AL BANK p -5- r---/- 7 1 SCIIEDULE A- 1 ACQUI RED OBLIGATIONS CITY OF KENAI, ALASKA SECURITIES USED TO FU/{D ESCROW Amount Interest ~.te ~ I~turl~ Date $1,190,000 5.10% (~HA PC 4/06/87 136,000 6.125% BONDS 11/i~/86 261,000 3.25% BONDS 5/15/85 344,000 6.375% BONDS 8/15/84 421,000 6.375% BONDS 2/15/82 144,000 7.0% BONDS 8/15/01 148,000 7.0% NOTES 2/15/81 99,000 3.5% BONDS 11/15/80 163,000 6.875% NOTZS 5/15/80 11,000 4.0% BONDS 2/15/80 92,000 7.0% NOTES 11/15/79 36,000 6.25% NOTES 8/15/79 130,000 7.0% GNMA PC 3/7/79 91,000 6.0% NOTES 11/15/78 30,000 0.35% ~;Y~ PC 8/28/78 128,000 6.25% NOT~S 2/15/78 110,000 6.25% ~MA PC 8/02/77 112,000 6.875% NOTES 5/15/77 83,000 6.25% NOTES 11/15/76 23,000 7.50% NOTES 8/15/76 105,000 6.50% NOTES 5/15/76 $2,000 7.0% NOTES 12/31/75 18,000 8.375% NOTES 9/30/75 100,000 6.0% NOTES 5/15/75 20,000 -- BILLS 1/14/75 55,000 -- BILLS 12/17/74 20,000 -- BILLS 9/24/74 100,000 -- BILLS 7/30/74 ~N14APC - Government National Mortqaqe Association Participation Certificates BONDS - United States Treasury Bonds NOT~S - United States Treasury Notes BILLS - United States Treasury Bills Z' AIA TI NA L P, BANK INVESTMENT DIVISION Kenai, Alaska AC ~he present ~ime, the City of Kena£ has outs~audin$: ~,095,000 General Ob[~gacLon Bo~, ~he composition o~ ~tch ts described ~n ~eacer acc~pany~n& "Pl~ ~ Proposal fo~ ~fu~ng". ~e CL~y C~nc~l ~s ~ered ~o re[u~ ex~s~n~ b~ds ~Lch re~u~n$ ~e ~ eligible [or prior red~ion. Such a re[u~ing ~s acc~lis~d t~ th~ purc~oe si a cash /lo~ secured by U. S. Treas~y a~/~ FeStal ~cy sec~i~i~s ~ich are ~-callable. ~is cash ~1o~ is pu:c~oed fr~ ~he ~iundins ~nds ~d ir~ other available funds, acc~dins to a pre-~er~d schedule, ~ s~//lcient ~unts ~o pay principal and interest on t~ bo~s refunded. ~e have rode a detailed studt of your outstandins deb~. and ~e believe tM~ the Bo~s da~ed 4-I-~0, 8-1-70, 1-1-72, and 10-I-72, can be refunded ac ~he present efi~c~ins a ~b~an~ial oavi~is ~o the City. ~ereiore, ye of/er the iolloving pro- posal f~ your coui~r~a ~cept~ce: 1. For ~d~d~ ~?ar value si the Cit~ of ~nai, Alas~, C. O. Bonds, dated 4-1-~4, ~e ~ill pay you ~he [ull par value t~reo[, plus accr~d interest ir~ ~-1-7~. ~e reigns bo~o viii m~ure and bear inCeresc as set forth on Proposal~-.~oi the acco~anyin~ Plan a~ Proposal for lelu~ing' vhich by reference is ~de an in:e~al part hereof. ~e re/undin~ bonds vii1 be in $5,000 denominations and ~he first in~eres~ coupon vi11 be due FOURTH AVENUE / P. O. SOX 3586 / SEATTLE, WASHINGTON 981 24 / TELEPHONE [206) 68~.3~72 l~e will pay all of the out-of-pocket costs of the City related to th£s re~un~ing includin.$, but ~. limit, ed to: A. Attotney~; eees paid to ~nd Co~ retained by you. Bond prin~!ng costs. C, Fee paid to the Escr~ Trustee. ~ition ye ~ill at o~ e~ense ensa~e a cetti~ied public account~ to veri~y all proposed transactions o~ t~ Escrow, ~ sel~ to t~ City the cash ~1~ secured by U. ~. Treasu~ and/~ ~edera! ~ency securities establish the refunding eacr~ account ~tch interest ~ t~ b~s beths refunded fo~a~un~ equa~ to the p~ pro- ce~ds o~ t~ ~ffundin8 Bonds (~~ plus accured interest on the ~nds beths te~un~fr~ their last interest paint dates to t~ date of closin8~ -_~: ~s~u8 a closin8 ~ ~-1-7~, the City ~ill pay to Seattle-~irst Natio~l ~a~ fo~ the cash ~1~ sec~e~ by U. 5. T~easugy and/or ~ederal ~ency sec~ities ~d begiuning cas~ balance the ~ollo~tug amount: ~a~ p~oceeds o~ the ~un~in8 Issue Iuterest acc~iu8 fg~ the ~ce of closing on the b~ds beiu8 ~e~uude~ (assuming a ~-1-7~ closes) 37,916.~S Bond ~uud Cash used Total ~uuds pard by the City ~o~ the U. ~, Treasury and/or gederal ~ency securities and bestuntu8 cash balance (assuming a 3-15-7~ closing) The total estimated cost to Seatt[e-Fip. st Natio.-~[ Bank for the U. S. Treasury and/or Federal agency securities, beginning cash balance, and the expenses incident to the refunding, assum£n$ a clos£ng on 4-1-74, is ~4,002,826.20o lc is e~ressly undersco~ b~ ~he C~y ~ ~ above esc~=ed costs ~d e~e~es to Seattle-~irst Natio~I B~k are for tn~o~tion p~poses only and t~t the re~ired obligations ad e~ses incident to the ~[undin~ ~y cost us~re or less t~ t~ above stated ~unt and such ~ain or loss s~ll be absorbed by Seattle-First Na~o~l Ba~. It is also ~tually a~eed t~t Seattle-~st ~ati~l B~k is sctin~ as principal (not a~ent) on the purc~se ~f the re[~din~ ~nds and on the sale of t~ U. S. Treasu~ and/or Federal ~ency securities. (At the t~ ~r proposals were presented to the City. our re-of[erin8 scale included a I-~int ~oss opera~in~ profit.) 5. ~is proposal is subject to: At the closin~ we s~lt receive (i) a n~-liti~ation certi[ica~ to the effect t~t there is no liti~ti~ or other proceedin~ pendin~ or t~eate~d to restrict or ~Join the is~ance, sale or delivery of the ~undin8 Bongs or in any way questionin~ or affect~ validity oi any provisio~ o[ the said ~in8 B~d~. ~d (ii) the opinion of ~tio~lly reco~ized ~icipal ~d At~ney~approvin~ the legality o~ the ~fundin~ B~ds and the validity o[ their issu~ce ~d statin~ t~t interest t~re~ is exert fr~ Federal income ta~tion under existin~ laws and re,latins, and establishin~ that the bonds are n~t arb~ra~e bo~s. Respectful ly submitted, SEATTLe-FIrST NATIONAL BANK E, A. Edmunds Investment Banking Officer This proposal ts hereby accepted ~or and on behalf of the City of Kenai, Alaska · pursuant to author£za~£on by frs governing body th~s day o£ t i The City reserves the rights of rejecting '.t, it there are any computation errors or legal objections from the Bond Counc i 1. Ir.' YEAR ENDING 12-30 CITY OF KENAI KENAI, ALASKA PLAN ~ PROPOSAL FOR REFUNDING REFUNDING BONDS DATED 4-1-74 PRINCIPAL i(DUE 7-1 q 1-1) 1NTEREST 1974 115,000 55,998.12 1975 175,000 215,330.00 1976 200,000 205,430.00 1977 200,000 194,430.00 1978 225,000 183,017.50 1979 230,000 170,505.00 1980 245,000 157,580.00 1981 265,000 145,967.50 1982 170,000 130,800.00 1983 180,000 121,957.50 1984 lg0,000 112,420.00 1985 195,000 102,326.25 1986 210,000 91,600.00 1987 220,000 80,070.00 1988 235,000 67,775.00 1989 245,000 54,272.50 1990 260,000 40,100.00 1991 240,000 25,280.00 1992 250 ~0 11~062 50 ~2',165','921~87 ~4,U~O,OOO TOTAL REFUNDING REQUIREMENTS 170,998.12 390,330.00 405,430.00 394,430.00 408,017.50 400,505.00 402,580.00 408,967.50 300,800.00 301,957.50 302,420.00 297,324.25 301,600.00 300,070o00 302,775.00 299,272.50 300,100.00 265,280.00 261~062.50 EXISTING DEBT REQU I REMENTS 201,316.66 433,638.75 436.153.75 427,863.75 439,618.75 435,363.75 430,568.75 435,013.75 297,867,S0 298,336.25 298,417.50 292,773.75 301,293.75 298,625.00 299,896.25 295,416.25 295,138.75 265,006.25 260~150.00 $6,~42,459.16 INCREASE (DECREASE) (30,318 54) _ (43,30S:TS)r (30,723.75) (33,433.75) (31,601.25) (34,858.75) (27,988.75) (26,046.25) 2,932.50 3,621.25 4,002.50 4,552.50 306.25 1,445.00 2,878.75 3,856.25 4,961.25 273.79 .~' 912.50 r7 7/ 1/lo7~ 11~000 9.5000 ';',9'~. 12 5~998.12 170998.12 1/ 1/1975 8~900 5,9000 7/ ,~q~c 9ddO0.- 5.Snno lncl196.25 ~15,330.0u .'. 390330,00 I/ 1/1976 95000 5,5009 10/1021.25 7/ 1/I976 105000. 5,5000 10]~{08.75 205430,00 7~. ~05430,00 Z/ 1/1978 110000 5.5000 7/ 1/1978 115000. 5.5000 RPq9~.25 ]/ Z/lq'/9 115o~0 5.5000 8C833.75 7/ 1/1979 115000- 5.5000 83671.25 170505.00 ~' ~00505.00 ~/ ~/z9~o ~asooo 5.5000 ~050~.75 7/ 1/19s0 l~oooo 5,5000 77071.25 157580.00 1/ 1/1981 13oooo 5.5000 73771.25 T/ 1/1981 135000 5.5000 7o196.25 143967.50 ~o896T.50 l/ 111982 85000 5,1o00 gCqq3.75 7/ 1/1~82 ~500o~ 5,1nO0 61i316,25 130800,00 92 300800,00 7/ 1/1981 90000 5,2000 5980fl,7~ 121957,50 ~ 301957,~0 1/ 1/19H1~ 95000 5.3000 57~g8.75 7/ 1/1984 95000-- 5,3000 5/~951,25 I1~0,00 ..~ 302420.00 1! ~ 11985 95000 5.350o 52/433.75 T/ 1/1985 10o000. 5.3508 49892.50 I0~326.25 1/ 1/1986 105000 5,/looo 7/ 1/I~86 105000 5,4o0o ;~h382,50 916oo,00 :/. 301600,00 1l 1/19~7 ~10000 5,5000 1415~7,50 7/ 1/1987 110000 5,5000 38522.50 80070,00 / 1/ 1/2988 115000 ~,dO00 35;~97,50 ' 7/ 111988 120000. 5,6000 32277.50 6777~.00 , A 302775.00 1/ 1/198~ 129000 5.7000 2~917.50 ~/ ~/1989 120000- ~.70OO 2~3~,00 ~272.~d i~ 299272.~0 1/ 1/1~90 ~30000 ~.~OOO 21935.00 T/ 1/1990 130000 5,8000 Z8~65.00 40100.00 .r- 300100.00 ~/ 1/~991 ~20OO0 5,a~nO 1~395,o0 T/ 111991 ~2nooo. 5,n5oo Zo~SS,00 25~8o,oo ~t 2~5~8o.00 ~/ 1/199~ 125000 F,9ooo T/ Z11992 ~25000. 5.9000 3687.50 11062.50" 261062.50 ............. .iii -~-;~ O~~ J'"' ~--tr'"~ "-~'--'~"~ UNITED STATES OF AMERICA ,~.c~',~'~"- '~' SO00 SO00 NO,. STATE Olr ALASKA d CITY OF KENA! General Obligation Refunding Bond, 1974 The City of Kenai. Alaska (hereinafter oiled the "City"J. hereby acknowledges itself to owe and for value received promises to pay to bearer on the first day of January. 1979, the principal ~mount of FIVE THOUSAND DOLLARS ogetfler with intereit ,'hereon at the rate of .~% per annum payable on the first days of January and July of each year from date of issue (comm.encincj July I, 197;,) upon presentation end surrender of the attached interest coupons as they severejiy become due. Both princlpe_ I of and interest on this bond er.epeyable in lawful money of the United States of America at the main of- rice of the National Bank of Alaska, Anchorage, Alaska, or, et the option of the holder, et Scene Trust and Savings Bank, Seeffle, Washington or Chemlcel Bank, New York, How York. The City has reserved the right to redeem any or ell of the outstendlng ben'Is of this issue in whole, or in pert in inverse numerical order, · July I, 1981 or on any interest payment date ~ereafter, et per 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 40 nor less than 30 days prior to such redemption date .and .by ma~ling e like notice at the same time to ~eaJfle- first National Bank, et its main off, ce in Seeff!e. Washington, or to the successor in business of sold bank, if any, of its meln office. Interest on any bond or bonds so called for redemption shall cease on such redemption dote unless the same ere not redeemed upon presentation mede pur- suant to such call. This bond is one of an issue ~.f 810 bund~ c~f llke amount, date end tenor except es to number, rate of interest and date of maturity in the grecjate principal amount of $4,050,000, which ATTEST: Finance Director bonds are issued for the purpose of providing peri of the moneys necessary to refund outstand- ~'ng general obligation bonds of the City in the principal amount of $4,095,000. The bonds of this refunding issue ere issued under and ;. accordance with the provisions of the Constitution end applicable statutes of the State of Alaska and ordinances duly passed by the City Council. The City hereby irrevocably covermnts that Jt will levy taxes annually upon all the taxable prop- arty in the City wlthouf llmitetion as to rate or amount end in amounts sufficient, with other moneys legally available therefor, to pay the principal of and interest on the bonds of this issue a~ the same shell become due. The fuji faith, credit end resources of the City are hereby irre- vocably pledged for the ennua! levy and non of such taxes and the prompt payment of such principal and interest. It i.. hereby certified that ell acts, conditions ~qnd thlngs required fo be done precedent to end in ~e issuance of this bond have happened, been done and performed and that the total in- debtedness of the City, including this bond and the bonds of this issue, does not exceed any con- stitutlonal or statutory limitation. IN WITNESS WHEREOF, the City of Konel, Alaska, has caused thb bond to be slqned with the. facsimile signature of the h4.a~.or ortho City, to be affested by it~ Finance Dfrector, the seal of the City to bo impressed F, ere,on end the in- terest coupons nffached hereto to De signed .'ith the fe¢,;,'nile signatures of said officials this first day of April, 1974. CITY OF KENAI~ By Mayor the N~oneJ [~' ~ AI~, ~o~e~o Alike o~ et Ih~ op~;~ ~ JAN, I~ ~lfOn O~ ~emJ~l 14flk, N~ Yo~k, N~ York tho amou~ sh~ here. [-~t~ or ~m;~l ~nk. New Yott, tt~ York. fha 4~ s~ her~ T~ ~ of Keno|. Almsta. will per to ~rer et the me;~ ~ ~ ~ ~A~. I, :~ ~ ~ ~ ~;. AIm$~. ~;ll ~my to ~m,er et ~ mil, ~i~.~ ~ ~y 1, ~ ~ hofde~, et ~e T~t m~d ~vi~s ~n~, ~mffle, W4~;~- ~ d ~e ~fde~ it ~ffle T~t end ~i~l Im~k, ~ Wm~s~ ~'~' lo~ o? ~m;~l knk g~ Yo~, tiff York, the emou~ in~ ner~ toff or ~em~l le~. N~w Y~E, N~ Yor~. the e~u~ ~ here. ~ ~.~_ __ ......... ~.~ ~ "" $137.50~ ~.~.~ ~~~ ~-.-- ~, o~, ef fha o~ion ~ ~e holder, M SenSe ~usf e~ Savings Ben~, ~e, Washln~on or The Ci~ hereby lrrev~blv ~ve~nts that will I~ fe~= annually u~n ell the feeble prop- C~t~! Bank, New Yo~. New Yo~. e~ in ~e Ci~ without llmitation as to rate or ~ ~ has rmew~ ~ dg~ to red~m any amount end in emounh s~flcienf, with or ell d ~ ~andln9 ~nds ~ ~i* issue in mon~s legally available ~er~or, to ~y the ~ole, or in ~ff in inve~ numeri~l order, on prlnci~l of end infer~t ~ the ~nds ~ July I, i~i or on any i~ermt payment d~Je Isle e~ the s.me shall ~me due. The full faith, ~ereaffer, et per plus e~med interest to the cr~f end remur~s of the Ci~ em hereby ire- dote d red~lon, v~bly pledged for the annual I~ end ~Jlec: N~i~ d any such intended redemption shall fion ~ su~ taxes and ~e prom~ payment ~ 9~ ~ one ~bli~tlon ~ereof in a financial such prlnclpel and interest. iour~l ~ eeneral circulation in the ci~ d N~ It is hereby ~ffified that ell ach, ~ndltions YorE, N~ YorE, not ~re ~an ~ nor Ires than and things required to be done pre.dent to and 30 days prior to lu~ ~em~i~ date and by in ~e iiiua.~ o~ this bo~d have hoping, mailing a like n~ at the ~me time to ~affle- ~en done end ~Hormed and ~af the total ln- Fl~t Notional ~nk, et ifs main offi~ in ~eftle, debtedness of t~ Ci~, including this ~nd and Washlngfon~ or to ~e ,u~smr in bus,ness ~ the ~nds of this issue, d~s n~ e~ed any con- m~ bank, If any, ~ its main ~i~. Intermt on ~itutlonal or ~afuto~ limitation. any ~nd or ~nd, so ~lled for redemption shell IN WITN~S WH~F. the Ci~ ~ Kenel, cflm on su~ r~empfion dote unlms the ~me Alaska, Fa, ~umd this bond to be slqned wl~ ere n~ r~eem~ u~n prment~fion made put- the fecdmile signature of ~e ~or o[fhe suent to ,uch ~11. to ~ eftett~ by ih Finance D~rector, the Th~, ~nd is one of en issue ~ BI0 bends ~ of the City to ~ impres~d hereon and the in- llke amount, date end tenor ex~ as to number, forest cou~n, affached hereto fo ~ dgned with rata ~ intere~ end date of maturi~ in the ag- the facsimile signatures of said offldals thl~ 9r~ate ~nclpal amount of ~,050,~, ~lch ~y ~ April, 1974. A~T: a~ OF KENAI~ By ~.en~ Differ Mayor RECEIPT I, DAVID T. CHEN, the duly chosen, qualified and acting Finance Director of the City of Kenai, Alasha, DO ~EREBY CERTIFY that I have received from Seattle-First National Bank, Seattle, Washington, the full purchase price of $4,050,000 of Ge~leral Obligation Refunding Bonds, 1974 of said city. Said Bond~ are dated Apr~l 1, 1974, are numbered from i through 810, incl~sive, and'mature in the years 1974 through 1992. Said purohase price was, Pr£noipal of bonds Amount received this let day of April, 1974 $4,050,000.00 $4,050,000.00 I FURT~E~ C~RTIFY that I have ~¢~£ved f~o~ 3eattle-F£rat National Bank, Seattle, Washington, the obligations set forth in Finance Director Schedule A-l, at~aohed hereto. SCHEDULE A-1 CITY OF KENAI, ALASKA .Amgunt Interest ~ate Description _Maturity Da~ $1,190,000 5.10% GNMA PC 4/06/87 136,000 6.125% BONDS 11/15/86 261,000 3.25% BONDS 5/15/85 344,000 6.375% BONDS 8/15/84 421,000 6.375% BONDS 2/15/82 144,000 7.0% BONDS 8/15/81 148,000 7.0% NOTES 2/15/81 99,000 3.5% BONDS 11/15/80 163,000 6.875% NOTES 5/15/80 11,000 4.0% BONDS 2/15/80 92,000 7.0% NOI'ES 11/15/79 36,000 6.25% NOTES 8/15/79 130,000. 7.0% EX-IN 3/7/79 .91,000 6g0% NOTES 11/15/78 30,000 8.35% EX-IM 8/28/78 128,000 6.25% NOTES 2/15/78 110,000 6.25% EX-IM 8/02/77 112,000 6.875% NOTES 5/15/77 83,000 6.25% NOTES 11/15/76 23,000 7.50% NOTES 8/15/76 105,000 6.50% NOTES 5/15/76 82,000 7.0% NOTES 12/31/75 18,000 8,375% NOTES 9/30/75 100,000 6,0% NOTES 5/15/75 20,000 -- BILLS 1/14/75 55~000 -- BILLS 12/17/74 20,000 -- BILLS 9/24/74 100,000 -- BILLS 7/30/74 CODE GNMA PC BO~DS NOTES BILLS EX-IM - Government ~ational Nortgaqe Association Participation Ce=tl£icates - United States Treasury Bonds - United States Treasury Notes - United States Treasury Bills - Export-Import Bank CITY OF KENAI, ALASKA GEN~-RAL OBLIGATiOI~ REFUNDING BONDS, 1974 $4,050,000 The undersigned certify and reasonably expect that ~he ~ollowing will occur with respect to the above bonds of the City of Kenai, Alaska, dated April 1, 1974. (1) The city will sell the bonds as of April 1, 1974 for an aggregate purchase price o4 $4,050,000. (2) The city will add the sum o~ $37,916.46 Erom its Bond Redemption Fund to said purchase price. (31 The oi~y will purchase as of April 1, 1974, certain securities ('Acquired Obligations') ~or an aggregate purchase price of $4,081,592.72. (4I The Aoquired Obligations, together with $6,323.74 in oash~ will bo held in escrow and interest and principal there- £romwill be used to pay the principal of and interest on oertai~ outstanding general obl£gation bonds of the city and to call the outstanding bonds of said issue. (5) The yield on the refunding bonds to be issued is computed to be 5.5?5% and the yield on the Acquired Obligations acquired wi~h a ma~or portion of the proceeds of the issue (dis~egarding yield applicable to the ~irst 90 days after settle- meat and yield applicable to the last three years prior to redemption of tho outstandin~ bonds to be rstunded) is computed ~obe not greater than 5.575%. (6) The yield applicable to the first 90 days after settlement does not exceed the yield on a comparable 90 day Treasury Note for the same period and the yield applicable to the last throe years prior to the redemption of the out- standing bonds does not exceed 5.575% by more than 1/8 of 1%. On the basis o~ the foregoing it is not expected that the proceeds o£ the refunding bonds will be used in a manner that would cause such bonds to be arbitrage bonds under Section 103(d) of the Internal Revenue Coda and the Regulations prescribed under that seo~lon. To the bes~ of our knowledge and bolief~ there are no other fao~a, estimates or circumstances that would materially change the foregoin~ conclusion. Dated this 1st day of April, 1974. SEATTLE-FIRST NATIONAL BANK SEATTLE; WASHINGTON CITY OP K~.NAI ~ ALASKA rDavid ~o Chen, Finance Director RSCE~P? ~OR $4~08i~592072 Receipt o~ the e~ o~ $4,081~592.72~ represented by a oheck in that amount from ~le City of Kensi, Alaska, in full payment,of ~he p~rchase price of the obligations listed on Sohedule A-l, attmohed hereto, whioh obligations are being purchased for t. he purpose of providing part of ~he funds to redeem and retire outstanding general obligation bonds of the city in ~he aggregate principal amount of $4,050,000, is hereby acknowledged f. his let day of April, 1974. SEATTLE-FIRST NATIONAL BANK INVESTMENT DIVISION SCHEDULE A-1 ACQUIRED OBLIGATIONS CITY OF KENAI ~ ALASKA SECURITIES USED TO FUND ESCROW Amount Interest Rate $1,190,000 5.10% 136,000 6.125% 261,000 3.25% 344~000 6.375% 421,000 6.375% 144,000 7.0% 148,000 7.0% 99,000 3.5% 163,000 6.875% 11,000 4.0% 92,000 7.0% 36,000 6.25% 130,000. 7.0% .91,000 6~0% 30,000 8.35% 128,000 6.25% 110,000 6.25% 112,000 6.875% 83,000 6.25% 23,000 7.50% 105,000 6.50% 82,000 7.0% 18,000 8.375% 100,000 6.0% 20,000 -- 55,000 -- 20,000 -- 100,000 -- Description ~Maturit7 Dat.e GNMA PC 4/06/87 BONDS 11/15/86 BONDS 5/15/85 BONDS 8/15/84 BONDS 2/15/82 BONDS 8/15/81 NOTES 2/15/81 BONDS 11/15/80 NOTES 5/15/80 BONDS 2/15/80 NOTES 11/15/79 NOTES 8/15/79 EX-IM 3/7/79 NOTES 11/15/78 EX-IM 8/28/78 NOTES 2/15/78 EX-IM 8/02/77 NOTES 5/15/77 NOTES 11/15~76 NOTES 8/15/76 NOTES 5/15/76 NOTES 12/31/75 NOTES 9/30/75 NOTES 5/15/75 BILLS 1/14/75 BILLS 12/17/74 BILLS ~/24/74 BILLS 7~30/74 CODE GNMA PC BONDS NOTES BILLS EX-IM - Government National Mortgage Association Participation Certificates - United States Treasury Bonds - United Sea,es Treasury Notes - United States Treasury Bills - Export-Import Bank RECEIPT OF THE OBLIGATIONS SET FORTH ~N SCItEDULF.... A-I ATTACHED HERETO PLUS THE SUM OF $6,323.74 FROM THE CITY OF KENAI, ALASKA Receipt of the obligations set forth in Schedule A-1 attached hereto, plus the sum of $6,323.74, from the City of Kenai, Alaska, which obligations and cash are to be used to redeem and retire the outstanding general obligation bonds of the city in the principal amount of $4,095,000 issued under dates of April 1, 1970, August 1, 1971, January 1, 1972, and October 1, 1972, is hereby acknowledged this 1st day of April, 1974. SEATTLE-FIRST NATIONAL BANK SEATTLE, WASHINGTON TRUST DEPARTM~,NT SCHEDULE A-1 ACQUIRED OBLIGATIONS CITY OF KENAI, ALASKA SECURITIES USED TO FUND ESCROW .Amoun___t Interest Rate De,script!0- _Maturity Date $1,190,000 5.10% GNMA PC 4/06/87 136,000 6.125% BONDS 11/15/86 261,000 3.25% BONDS 5/15/85 344,000 6.375% BONDS 8/15/84 421,000 6.375% BONDS 2/15/82 144,000 7.0% BONDS 8/15/81 148,000 7.0% NOTES 2/15/81 99,000 3.5% BONDS 11/15/80 163,000 6.875% NOTES 5/15/80 11,000 4.0% BONDS 2/15/80 92,000 7.0% NOTES 11/15/79 36,000 6.25% NOTES 8/15/79 130,000. 7.0% EX-IM 3/7/79 .91,000 6~0% NOTES 11/15/78 30,000 8.35% EX-IM 8/28/78 128,090 6.25% NOTES 2/15/78 110,000 6.25% EX-IM 8/02/77 112,000 6.875% NOTES 5/15/77 83,000 6.25% NOTES 11/15~76 23,000 7.50% NOTES 8/15/76 105,000 6.50% NOTES 5/15/76 82,000 7.0% NOTES 12/31/75 18,000 8.375% NOTES 9/30/75 100,000 6.0% NOTES 5/15/75 20,000 -- BILLS 1/14/75 55,000 -- BILLS 12/17/74 20,000 -- BILLS 9/24/74 100,000 -- BILLS 7~30/74 CODE GNMA PC BONDS NOTES BILLS EX-IM Government National Mortgage Association Participation Certificates United States Treasury Bonds United States Treasury Notes United State~ Treasury Bills Export-Import Bank NONARBITRAGE CERTIFICATION OF UNDERWRITER THE UNDERSIGNED, BEING THE DULY CHOSEN, QUALIFIED AND ACTING OFFICER HEREINAFTER INDICATED, DOES CERTIFY IN THE N~dE AND ON BEHALF OF SEATTLE-FIRST NATIONAL BANK, AS 1. The undersigned is an officer of Seattle-First National Bank (Purchaser), charged with the responsibility of purchasing the General Obligation Refunding Bonds, 1974 (1974 Bonds) from the City of Kenai, Alaska (Issuer), and selling certain securities to ~he Issuer under the proposal of Seattle-First National Bank dated March 6, 1974 (Proposal). 2. The price for the 1974 Bonds to be paid by the Purchaser to the Issuer under the Proposal reflects a reasonable price for bonds bearing interest rates from their date to their respective maturities and of the character, quality and term of the 1974 bonds under the municipal bond market existing at the time. 3. The Purchaser contemplated, at such time, as municipal bond underwriters, reselling the 1974 bonds within a reasonable period of time at normal profits under such existing market conditions. The not bonds were __purchased from the Issuer by the Purchaser at a higher price than~et, resulting in lower interest costs (including any premium for the purchase of the 1974 Bonds) to the Issuer than such costs resulting from a sale at market and in effect rebating to the Issuer a portion of the Purchaser's profits from the sale of securities to the Issuer under the Proposal. (A substantial portion of such securities are sold to the Issuer by the Purchaser at a price sub- stantially above the market price existing when the Purchaser became obligated under the Proposal so as to lower the yield from the Issuer's investment in such securities of moneys constituting not less than a major portion of the proceeds of the 1974 Bonds so such yield from such investments does not exceed the net effective rate of the 1974 Bonds.) 4. The securities purchased from the Purchaser by the Issuer under the Proposal with moneys other than the proceeds of the 1974 Bonds and with moneys constituting less than a major not portion of such bond proceeds are__purchased at a lower price than the market existing when the P-~chaser acquired from time to time the securities for resale to the Issuer under the Proposal, resulting in a higher investment yield (including any dlscounts on the purchase of the securities) to the Issuer than such yield resulting from a purchase at market and in effect rebating to the Issuer a portion of the Purchaser's profits from the sale of those securities thereby to the Issuer under the Proposal; but, rather, such securities are purchased for a price at such market so that the investment yield therefrom (adjusted effective interest rate) is neither substantially above nor substantially below such market and such yield reasonably reflects the market existing when the Purchaser so acquired such securities. The Purchaser is not contributing any moneys, directly or indirectly, to the Issuer for the purchase of any securities under the Prop~_sal, or otherwise, other than the purchase price for the 1974 Bonds and other than the expenses defrayed by the Issuer in connection therewith as hereinabove stated. 5. The securities purchased from the Purchaser by the Issuer under the Proposal with moneys constituting not less than not a malJor portion of the bond proceeds are __ purchased at a price (includinq any discounts on the purc-h-~ss of such federal securities) resulting, directly or indirectly, in an investment yield (adjusted effective interest rate) exceeding the adjusted effective interest rats of the 1974 Bonds~ but, rather, such securities are purchased for a price above market so that the ~nvestment yield therefrom, (adjusted effective interest rate) is lower than market and does not exceed, directly or indirectly, the adjusted effective interes~-~ate of the bonds. IN WITNESS WHEREOF, on the behalf and in the name of the Purchaser, the undersigned officer of Seattle-First National Baulk hereunto sets his hand this 1st day of April, 1974, the date of ~he delivery of and payment for the 1974 Bonds. SEATTLE-FIRST NATIONAL BANK (Title~ it '.'" RECEIPT FOR BONDS SEATTLE-FIRST NATIONAL BANK, Seattle, Washington, hereby aoknowledg.es r~ceipt in Seattle, Washington, this 1st day of A~ril, 1974 of $4,0§0,000 par value of General Obligation Refunding Bonds, 1974 of the City of Kenai, Alaska. The bonds a=e dated April 1, 1974, are in the denom- ina~ion of $5,000 each, bear interest payable semiannually on the first days of January and July of ~ach year, and mature in the years 1974 through 1992. Upon receipt of the above issue of bonds, this day there was paid to the Finance Director of the City of Kenai, Alask~v the sum of $4,050,000, which is the full purchase price of the above issue of bonds. DATED ~his 1st day of April, 1974. SEATTLE-FIRST NATIONAL BANK (TLtle~ NJc.,~.. ?.oN~)nwso. PRE:STON. THORORIMSON, F'LLIS, [']OLMAH & FLETCHER DONA~ L. ~O~NAN ~DWA~ ~J~ ~ n ~L~CHt~ 8~W~HI~4GTON ~810l -- ~..~.. April 1, 1974 City of Kenai Kenai, Alaska Seattle-First National Bank Seattle, Washington Re g Gentlemen: City of Kenai, Alaska GeDeral Obligation Refunding Bomds, 1974 - $4,050,000 We have examined a certified transcript of all of the proceedings taken in the matter of the issuance by the City of Kenai, Alaska (hereinafter called the "City"), of its general obligation bonds in the principal amount of $4,050,000, issued for the purpose of providi~g part of the funds necessary to refund certain of the City's outs~anding general obligation bonds. we have also examined Bond No. I of this issue and have found the same to have been executed in the manner required by law. Said bonds are dated April 1, 1974, are in the denomination of $5,000 each, and are numbered, mature and bear interest payable em~-.u~ua~y on ~.e ~xs~ days of Jar, ua~-f and ~"~" ...~ of cach year (=o~enoing July 1, 1974) from date of issue a~ follows~ Bond Maturity Interest Bond No~.. _ .~.t~... Am0.U~' Rates ~.~ ~ NOS. Maturity Interest Date Amounts Rag-es_ 1-23 7/1/74 $115,000 5.50% 402-420 1/1/84 $ 95,000 24-40 1/1/75 85,000 5.50% 421-439 7/1/84 95,000 41-58 7/1/75 90,000 5.50% 440-458 1/1/85 95,000 59-77 1/1/76 95,000 5.50% 459-478 7/1/85 100,000 78-98 7/1/76 105,000 5.50% 479-499 1/1/86 105,000 99-117 1/1/77 95,000 5.50% 500-520 7/1/86 105,000 118-138 7/1/77 105,000 5.50% 521-542 1/1/87 110,000 139-160 1/1/78 110,000 5.50% 543-564 7/1/87 110,000 161-183 7/1/78 115,000 5.50% 565-587 1/1/88 115,000 184-206 1/1/79 115,000 5.50% 588-611 7/1/88 120,000 207~229 7/1/79 115,000 5.50% 612-636 1/1/89 125,000 230-254 1/1/80 125,000 5.50% 637-660 7/1/89 120,000 255-278 7/1/80 120,000 5.50% 661-686 1/1/90 130,008 279-304 1/1/81 130,000 5.50% 687-712 7/1/90 130,000 305-331 7/1/81 135,000 5.50% 713-736 1/1/91 120,000 332-348 1/1/82 85,000 5.10% 737-760 7/1/91 120,000 349-365 7/1/82 85,000 5.10%. 761-785 1/1/92 125,000 366-383 1/1/83 90,000 5.20% 786-810 7/1/92 125,000 384-401 7/1/83 90,000 5.20% 5.30% 5.30% 5.35% 5.35% 5.40% 5.40% 5.50% 5.50% 5.60% 5.60% 5.70% 5.70% 5.~0% 5.80% 5.85% 5.85% 5.90% 5.90% The City has reserved the right to r,deem any or all of the outstanding bonds An whole, or An part in xnvers~ numerical order, on July 1, 1901, or on any interest payment da~e ~her~afeer, a~ par plus accrued est tO ~he da~e of redemption. City of Kenai, Alaska Seattle-First National Bank Page Two From such examination it is our opinion that said bonds have been legally issued and constitute valid general City, both principal thereof and interest thereon beinq payable OUt of annual levies of ad valorem taxes to be made upon all of the taxable property within the City without 1imf+etlon as to rate or a~ount and in amounts t.~hich, together with other available fund~, will be sufficient to pay such principal and interest as the same shall become due. It-is our further opinion that the interese, on these bonds is exe~pe from federal income tax under present statutes, court decisions and =egula~£ons. Very truly yours, PRESTON, THORGRIMSON, ELLIS, HOLMAN & FLETCHER Forrest W. Walls oo MOODY'S INVESTORS SERVICE, INC. 99 CitURCH SIRtET, NEW YORK. N. Y, lOOO/ (2121 267- 8809 March 20, 1974 Mrs. 1.~rnaK. Corbett Bond Research Officer Seattle-First IMtional Bank 1001 4th Ave. P.O. ~ox 3586 Seattle, Wash. 98124 Dear t~'s. Corbett: We wish to inform you that our Rating Committee has assigned the rating of Baa to th, $h,050,000 Kenai, Alaska general obligation refunding bonds scheduled for sale on March 20, 197k. ~hank you for your cooperation with our rating service. FSA/pd Et~closttre Vice President Municipal Bond Research Division :f PRESTON, THORGRIMSON. I:'LLl$, HOLMAN & FL£TCHER ~.E. ATTLE, W~HINGTOI'~I ~SJOJ March 25, 1974 Mr. David T. Chert Finance Director City o£ ~enai P. O, Box 580 Kenai, ALaska 99611 City of Kenai, Alaska General Obligation Refunding Bon~s - $4,500,000 Dave, Would you please bring with you to the closing of the above issue the following documents. L. Three additional signed copies of the Refunding Agent Agreement. 2. Two additional certified copies of the bond OrC~lJ~ance. 3. Certified excerpts from the minutes of the council meeting showing the introduction and adoption of the bond ordLnanoe, certified by the City Clerk. 4. Certifica~e of the City Clerk s~attng ~he names an~ ~erms of offices of the members of ~he City Council, the Mayor and the Finance Director as of March 20, 1974. 5. Publisher's affidavit of publication or affidavit of posting of the bond ordinance. 6. Certificate of the City Clerk stating the time, date and place of ~he regular meetings of the City Council. 7. Certified copies of the ordinances authorizing the issuance and sale of the bonds to be refunded (Ordinances 179-70, 201-71, 205-71 and 207-72. You should also bring with you several cheeks and several deposit slips in order to make the transactions necessary at the closing. 1 ] . ii. David To Chert PaqeT~o Seattle-First National Bank should provide you shortly wigh a olosinq memorandum detailing the closinq transact£OnSo if any questions arise, please give me a call. Very truly yours, PRESTON, THORGRI~ON, ELLI~MAN & FLETCHER Forrest W. Walls FWW sm~ City of Kenai Forrest Walls~ Bond Counsel Alan Reed~ Trustee HaTch 28~ 1974 BANK INVESTMENT DIVISION RE~ Closing details on City of Kenai, Alaska, C. 0o P~fund£n$ Bonds dated 4-1-74. 1. Date and Time of Closing: April 1, 1974, at 10:00 AoMo 2. Place of Closing~ loth Floor Seattle-First National Bank, Head Office 3. The folloving palnnents are to be made at the closing: Seattle°First National Bank~ Investment Division pays to City of Kenai, Alaska, for $4,050~000 par value C. O. Refundin8 Bonds of the City of Kenai dated 4-1o74, the amount of $4,050,000, computed as follows: Par ~knount $4,050,000.00 Pr~lum - 0 - Accrued interest on Refunding Bonds from 4-1-74 to 4-1-74 - 0 - $4,050,000.00 Ce The City of Ke~i will pay to Seattle-First National Bank, Investment Division, the amount of $4,081,592.72, representing the cost of the cash flow secured by Federal securities, less the be~inning cash balance, computed as folio~sI Proceeds of Refunding Bonds Pr~ium Accrued interest on bonds being refunded from ~heir last interest payment dated to 4-1-71 Less Beginnin8 Cash Balance $4,0~0,000.00 - 0 - 37~.9.1~.46 $4,087,916.&6 6~323.74 $4,081,592~7.2 The City of Kens1 will additionally pay to Seattle-First National Bank, Corporate Trust Department, the beginning cash balance necessary co fund the escro~account in the amount ~6~323.74. The City of Kenai's total payments will thereby be as follows: Payable to Seattle-First National Bank, Investment Division Payable to iea~tle-Fi~st National Bank, Corporate Trust Div. Total cos~ v~ ~he City for cash flow $4,081,592.72 6~,32~.7,4 5. In order to close at 10:00 A.~.~ appropriate parties should meet at 9:00 A.H. at ch° place of closin§ to allow enough time for the signing and checking of the bonds. $incerely~ Investmen~ Banking Officer 901 FOURTH AVENUE / P.O. 80X 3586 / SEATTLE, WASHINGTON 98124 / TELEPHONE (208) F,33-3472 OND' EPARTMENT { SEA. 't'LE'F/R$1' IVA TIOItIA L BA IVl i Preliminary Circular Moody's Rating: Applied for Previous Rating: Baa $4,050,000 CITY OF KENAI, ALASKA GENERAL OBLIGATION REFUNDING BONDS, 1974 DATED: April 1, 1974 ~E: January 1 ann July 1, as sho~m below Principal and semi-annual interest (January 1 and July 1) payable at the Kenai Branch of National Bank of Alaska, or at the option of the holder at Seattle Trust & Savings Bank, Seattle, Nashington, or at Chemical BanE, New York, New York. First coupon payable July 1, 1974. INTEREST EXEHPT, IN THE OPINION OF COUNSEL, FROHALL PRESENT I~DERAL INCOI~ TAXES Coupon Bonds in Denominations of $5,000 A~ount ,~upon Haturity Yield Amount Coupon Naturity Yield $115,000 5.$0~ 7-1-74 $ 95,000 5.35~ 1-1-85 85,000 5.50 1-1-75 100,000 5.35 7-1-85 90,000 5.50 7-1-75 105,000 5.40 1-1-86 95,000 5.50 1-1-76 105,000 5.40 7-1-86 105,000 5 · 50 7-1-76 110,000 5 · 50 1-1-87 95,000 5.50 1-1-77 110,000 5.50 7-1-87 105,000 5.50 7-1-77 115,000 5.60 1-1-88 110,000 5.50 1-i-78 120,000 5.60 7-1-88 115,000 5.50 7-1-78 125,000 5.70 1-1-89 115,000 5.50 1-1-79 120,000 5.70 7-1-89 115,000 5.50 7-1-79 130,000 5.80 1-1-90 125,000 5.50 1-1-80 130,000 5.80 7-1-90 120,000 5.50 7-1-80 120,000 5.85 1-1-91 130,000 5.50 1-1-81 120,000 5.85 7-1-91 135,000 5.50 7-1-81 125,000 5.90 1-1-92 85,000 5.10 1-1-82 125,000 5.90 7-1-92 85,000 5.10 7-1-82 90,000 5.10 1-1-83 90,000 5.20 7-1-83 95,000 5.30 1-1-84 95,000 5.30 7-1-8& CALLABLE: The City has reserved the risht to redeem the bonds in inverse numerical order, in whole or in parC, on any interest payment dace, on or after July 1, 1981, at par. LEGAL OPINION: The Bonds are offered when, as, and if issued and received by us subject to approval of lesality by Hessrs. Preston, Thorgrimson, Stalin, Ellis and Hol._,m~, bond counsel, of Seattle, Washington. The lesal opinion will be printed on the bonds. SES~RITY: The 1974 refundin$ bonds constitute, in the opinion of bond counsel, valid and binding 8eneral oblisacions o£ the City payable from ad valorem taxes levied without limitation as to race or amount. PURPOSE: The pz~¢~eds of Chis 1974 issue will be used to effect an advance refunding of the City*s 1970, 1971 and 1972 general oblisation bonds. Additional debt for the City is hoc creaced by the 1974 re£undin$ issue. Direct obligations of 'the United States Government and/or oblisations of agencies of the United States Government sufficient to satisfy all principal and interest requirements of the 1970, 1971 and 1972 refunded issues will be purchased wi~h the proceeds of this 197~ issue and held in an irrevocable trust un~il the call dace of the 1970, 1971 and 1972 refunded issues, at which time the remainin$ bonds will be retired. No further taxes will be levied to support the refunded bonds. -Continued- ¥1NANGI. AL I:~-eOItddA'IION: /msessed Valuation, 1974 (100X of Actual Value) ' Direct ~bt, including thl~ Issue $ 5,455,000 *Net Direct Debt, including this issue $ 4,1a5,550 Estt~ted Overlapping Debt $ 2,025,145 Net Direct & ~erlapping Debt $ 6,170,695 Net Direct to ~seased Valuation 8.69g Net D~rect & Overlapping Debt to ~sessed Valuation 12.90~ Per Capita ~sessed Valuation $ 11:919 Per Capita Net Direct Debt $ 1,036 Per Capita Net Direct & Overlapping Debt $ 1,543 Est/~ted Population 4,000 * Net of $60,000 ~neral 0bligation Water and Sewer Bonds, 196~. ~ese bonds are fully secured by special assessments and cash in the bond fund. ~erefore, the ~bt ration does not apply to those bonds. In addition, the re~inin~ debt (5,395,000) partially offset, by special assesa~nts of $1,132,450 and $117,000 cash in the b~d T~ COLLECTION ~ of June 30~ 1973 Year ~sessed Valuation Tax ~ g ~llected (Esti~ted) 1974 $46,000,000 $482,87? 93.9 1973 ~7,677,487 324,290 100.4* 1972 47,532,627 313,116 101.8* 1971 47,373,457 358,501 97.0 1970 29,600,100 296,001 99.9 1969 18,293,100 182,931 99.9 * T~es are payable in two installments on August 15 and Nov~er 15. If the first '- ins~all~nt is not paid on or before ~gust 15, the entire tax beco~s delinq~n~. ~ENE~ INFO~TIO~: laai is cbs second-oldest per~nent secti~nt In ~las~. Ori8- i~lly a s~ll ~ssian fur train~ post and fishing comity, developed into ~he "Oil Capital of ~as~" after :he 1957 discovery of otl. ~i located on Cook Inlet ac :he mouth of the ~nai ~ver, 65 ~les south of ~chorase. ~e Kenai Peninsula Borough, co~risin8 the Ke~i Peninsula of s~ChcenCral ~, surrounds ~he City of ~ith the oil and 8~ industry expanding, the growth of the City has also s~abilized, and current population is estimated co be approxi~Cely 4,000. Year Population EsCimCed 1974 4,000 U.S. Census 1970 3,533 " " 1960 " " 1950 321 Accompanyin8 the develop~nc of the oil and sas resources has been the construction of pipe- lines, ~rine terminals, and other extensive facilities necessary co h~dle the oil and 8as. ~sC of the crude oil produced is shipped by Canker~ co West Coast refineries. ~ere are Cwo refineries vhtch have been built near [enai. Standard Oil operates a 23,000-barrel- per-day refinery at Sikiski. ~e second refinery, Tesoro-~askan Pecrole~ Company, produces 17,500 barrels'per day. Further oil discoveries have been ~de offshore in ~ok Inlet. Pour additional oil fields are in production--Middle Ground Shoal, Granite Point, Tradin8 Bay and Mc~Chur ~ver. Oilier off-shore discoveries, ~doubC Shoal and Nikolai Creek, are yeC to be developed. Pourteen per~nenC offshore drilling plaCfo~,, each capable of drillin8 32 Co 48 wells, have been constructed. Combined oll production from the Sw~son River ~ield and Inlet Placfor~ exceeds 200,000 barrels per day. The cecal oil reserve in the Cook InleC-~enai Peninsula region is esCimced a~ 1.5 billion barrels. Natural Sas is the basis for cwo larse indus~rial developments completed in 1969. Carbon and ~emical Corporation, a subsidiary of Union Oil Comply, has built a $50 million petrochemical facility which includes the larsest a~onia plant on the West Coast. ~oCher major 8as-based indus~rial development is the $57 million Sas liquefaction plant of Phillips Petrole~ Company and ~rathon Oil Company. ~thoush the oil industry has taken the lead in Kenat's economic 8rowch, comrcial has been a vital segment of the City's econo~. Cook Inlet is an important 8almon-producin8 area, and the Kenai River is kno~ for the larsest salmon run in the world. ~e ~ok InleC's production of frozen and cured salmon exceeds 4.2 million pounds per year. Approxi~Cely 8Z of Alaska's canned salmon is produced in Cook Inlet's fisheries. Ocean-~oing baries provide heaw freisht service ~o Kenai, as well as the lenai ~unicipal Airport which will eventually serve as an alternate airport to ~chorase International Air- port. Special foc!ltttan have also been built for t},~ tnnk~r~ ~.rving the p-tro!eum and gas industry,