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HomeMy WebLinkAboutORDINANCE 0071-1964ORDINANCE NO. 71 AN 0RD~L~NCE of the City of Kenai, Alaska, provid- Lug f~ the issuance of $80,000 of general ob- ligation bonds of the city for the purpose of providing part of the funds to pay the cost of constructing and equipping a new high school building within the city, all as more specif- ically provided in Resolution NO. 58 of the Council of the city adopted September 26, 1962, and as authorized by the qualified electors of the City at a special election held therein on November 6, 1962; fixing the date, form, terms, maturities and covenants of such bonds to be issued; pledging the city's share of state tobacco tax funds and the levy of ad valorem taxes without limitation as to rate or amount to pay the principal thereof and interest there- on; providing for the payment of such principal and interest out of a bond redemption fund here- tofore created; confirming the sale of said bonds; and declaring an emergency. W~MREAS, at a special election held in the City of Kenai, Alaska (hereinafter called the "City"), on November 6, 1962 pursuant to Resolution No. 58 and other resolutions and ordinances of the Council of the City, the qualified electors thereof authorized the issuance of general obligation bonds of the City in a sum of not to exceed $1,~50,000 (hereinafter called the '~uthorized Bonds") for the purpose of providing funds for the construction of a new high school building within the City including the acquisition of necessary lands and the purchase and installation of all necessary equipment, appliances, fixtures and all other appurtenances, all as more specifically provided in said Resolution No. 38; and WttEREAS, pursuant to Ordinance No. 47 of the City passed and approved June 12, 1965, $1,115,000 of such bonds were sold for such purposes; and WHEREAS, it now appears that the City needs the additional sum of $80,000 to complete the payment of the cost of constructing and equipping such high school building as above provided; and WHEREAS, r~arshall and Meyer Incorporated, an invest- ment banking corporation of Seattle, Washington, by written a~reement dated July Fl, 1~ has agreed to purchase such $80,000 principal amount of bonds at par plus accrued interest to date of delivery and under the terms and conditions of such bonds as hereL~after provided; and W~rCEA$, the City receives from the State of Alaska certain state tobacco tax funds which may be used for the pur- pose of financing the construction and equipping of new .school facilities for the City; NOW, TNE~EFORE, BE IT ORDAINED by the Council of the City of Kenai, Alaska, as follows: Section 1. That to provide funds to pay part of the cost of acquiring a new high school within the City in- cluding the acquisition of necessary lands and the purchase and installation of all necessary equipment, appliances, fixtures and all other appurtenances as provided in Resolu- tion No. 58 of the City and as authorized by the qualified electors of the City at the special election held therein on November 6, 1962, the City shall sell $80,000 principal amount of its general obligation bonds (hereinafter called the "Bonds") out of the Authorized Bonds. The Bonds shall be dated September 1, 196~, shall be in the denomination of $5,000 each, shall bear interest evidenced by coupons attached thereto evidencing interest at the rate of ~ 1/~%per annum payable on December l, 196~ and semiannually on the first days of June and December of each year thereafter, shall be numbered from I up consecutively, and shall mature at $5,000 a year (one bond) on June first of each of the years 1968 through 1985. In addition to the above interest all of the Bonds shall bear additional interest evidenced by supplemental or detached coupons evidencing interest at the rate of i 1/2% per annum from date of issue to and including June l, 1967. Said coupons shall become due on December l, 196~ and each six months thereafter to and including June l, 1967. Both prinoipal of and interest on the Bonds shall be payable in lawful money of the United States of America at the main office of the Seattle Trust and Savings Bank in Seattle, Washington. Section 2. By Section ~ or Ordinance No. 47 the City Council heretofore created a special fund of the City known as the "Kenai 196~ General Obligation School Bond Redemption F~nd" and provided that slzch Fund shall be drawn upon for the sole purpose of paying the principal of and in- terest on the Authorized Bonds as the same shall become due and payable. The City hereby irrevocably covenants that it will make amumal levies of ad valorem taxe~ upon all the property with~u the 0ity without limitation as bo rate or amount and in au amo,,~t sufficient, together with the City's share of the state tobacco tax funds hereinafter pledged and together with an~ other moneys legally available therefor, to pay the principal of and interest on the Bonds as the same shall be- come due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collec- tion of such taxes and for the prompt payment of such prLu- cipal and interest. The City hereby also irrevocably pledges to the payment of the principal of and interest on the B~nds the City's share of the state tobacco tax funds for as long as any of the Bonds remain outstanding. All of such ad valorem taxes so collected and all of such state tobacco tax funds necessary for the payment of such principal and interest shall be paid into said Bond Rememption Fund at least thirty days prior to the dates upon which any installment of interest on or principal of and interest on the Bonds shall become due and payable, in amounts sufficient to pay such installments as the same shall become due. Section 5. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO. ~5,000 STATE OF ALASKA CITY OF KENAI G~UERAL OBLIGATION SCHOOL BOND, i96~ ENOW ALL HEN BY THESE PRESENTS: That the City of Kenai, a municipal corporation of the ~tate of Alaska, for value received hereby promises to pay to hearer on the first day of June, 19 , the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of ~ 1/2% per annum from date hereof evidenced by coupons attached hereto payable on December l, 196~ and semiannually on the first days of June and December of each year there- after and additional interest at the rate of i 1/2~ per annum from September l, 1965 to June 1, 1967 evi- denced by detached coupons payable on the first day of December, 196~and semiannually thereafter, upon pre- sentation and surrender of such interest coupons as they severally become due. Both principal of and interest on this bond are payable in lawful money of the United States of America at the main office of the Seattle Trust and Savings Bank in Seattle, Washington. This bond is one of an issue of sixteen bonds of like amount, date and tenor except as to number and date of maturity, aggregating the principal amount of $80,000, and is issued pursuant to the laws of the State of Alaska, a vote of the qualified electors of the City of Kenai and. duly adopted ordinances and resolutions thereof, for the purpose of providing part of the funds to construct and equip a new high school building within the city. This bond and the bonds of the issue of which this is one are payable both principal and interest out of the special fund of the city entitled "Kenai 1965 General Obligation School Bond Redemption Fund" created by 0r- dinance No. $7 of the City. The city has irrevocably covenanted that it will levy and collect taxes annually upon all the taxable property within the city without limitation as to rate or amount in amounts sufficient, together with other funds legally a~ailable therefor, to pay the principal of and interest on the bonds of this issue as the same shall become due. For the annual levy and collection of such taxes and the prompt payment of such principal and interest the full faith, credit and resources of the City of Kenai are hereby irrevocably pledged. The city has further irrevocably pledged to the payment of such princf.pal and interest the city's share of the state tobacco tax funds. It is hereby certified and declared that all acts, conditions and thLugs required by the laws of the United States of America and the State of Alaska and ordinanccs and resolutions of the City of Kenai precedent to and in the iss,m~nce of this bond have happened, been done and performed, and that the total indebtedness of the City of Kenai, including this bond and the bonds of this issue, does not exceed any debt limitation prescribed by law. IN WITNESS WHEREOF, the City of Kenai, Alaska, has caused this bond to be signed by its Mayor, to be attested by its Clerk, the official seal of the city to be im- pressed hereon, and the interest coupons attached hereto to be signed with the facsimile signatures of said of- ficials this first day of September, 196~. CITY OF KENAI, ALASKA Mayor ATTEST: City Clerk The interest coupons attached to and detached fron the Bonds shall be im substantially the following form: NO. On the first day of , 19___, the City of Eenai, Alaska, will pay to header'at the main office of the Seattle Trust and Savings Bank in Seattle, Wash- ington, the amount shown hereon in lawful money of the United States of America, said amount being semiannual interest due that date on its General Obligation School Bond dated September 1, 196~ and numbered _ CITY OF KENAI: ALASKA ATTEST: By Mayor City Clerk Section $. The Bonds shall be signed on behalf of the City by its Mayor~ shall be attested by its Clerk, and shall have the official seal of the City impressed thereon. Each of the interest coupons attached thereto and detached therefrom shall be signed with the facsimile signatures of said officials. ~ectio~ ~. The action of the City Council taken on August 5, 196~ in accepting the written offer of I-~rmhall and ~eyer Incorporated, an investment banking corporation of the City of Seattle, Washington, dated July 51, 196~, to pur- chase the Bonds at par plus accrued interest to date of deliv- ery and under the terms and conditions of the Bonds as set forth in this ordinance, is hereby in all respects ratified and confirmed. The proper City officials are hereby authorized and directed to do everything necessary for the prompt issuanco and delivery o~ the Bonds and for the proper use and appli- cation of the proceeds of such sale. Section 6. Because of the great need of the City to obtain the proceeds of sale of the Bonds at the earliest possible date, an emergency is hereby declared to exist, and the rules governing the reading, passage and approval of this ordinance are hereby suspended. It is hereby found and de- clared that it is necessary for the immediate preservation of the public welfare, peace, health and safety that this or- dinance become effective immediately upon its passage, approvo.! and publication by posting a copy hereof on the City Hall bulletin board for the period of ten days following its passage and approval. PASSED and APPROVED by the City Council of the City of Eenai, Alaska, this 26 day of August, 1965. CITY OF KENAI, ALASEA By S/ , James G. Dye Mayor ATTEST: France~ Tor.kil,sen City Clerk