HomeMy WebLinkAboutOrdinance 1572.-~`~
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ORDINANCE N0. 1572
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AN ORDINANCE OF THE CITY OF CENTRAL POINT, OREGON,
AUTHORIZING THE ISSUANCE OF
GENERAL OBLIGATION IMPROVEMENT BONDS
The people of the City of Central Point, Oregon do ordain as
.follows:
Section 1. Issue. The City shall issue. its General Obligation
Improvement Bonds, Series 1986, in the amount of Three Hundred Forty-
Five Thousand Dollars (345,000), to be dated September 1, 1986, to be in
denominations of Five Thousand Dollars ($5,000) or integral multiples
thereof, to be in fully registered form, to bear interest payable on
March 1 and September 1 of each year until maturity or prior redemption
commencing March 1, 1987, and to mature serially on the first day of
September of each year as follows:
'Date Amount Date Amount
1988 $ 10,000 1998, $ 25,000
1989 10,000 1999 25;000
1990 10,000 2000 20,000
1991 20,000 2001 20,000
1992 20,000 2002 20,000
1993 20,000 2003 20,000
1994 20,000 2004 20,000
1995 20,000 2005 10,000
1996 20,000 2006 10,000
1997 20,000 2007 5,000
Section 2. Redemption. =The City reserves the right to redeem all
or any portion of the Bonds maturing after September 1, 1996, in inverse
order of maturity and by Iot within a maturity on September 1, 1996, and
on any interest payment date thereafter, at par plus accrued interest to
the redemption date.
Ordinance No. 1572 -1
Section 3. Extraordinary Call for Unexpended Proceeds. The bonds
are subject to extraordinary redemption on September 1, 1989, solely
from, and to the extent of, any proceeds of the bonds which remain
unexpended on that date.
Section 4. Security. The City has assessed benefitted properties
for the costs of local improvements, and has received applications to
pay assessments in installments in an amount at.least equal to the
principal amount of the bonds. All installment assessment payments
shall be placed in the Bancroft Bond Redemption Fund and applied to the
payment of principal and interest on the bonds. The full faith and
credit of the City are pledged to the successive owners of each of the
bonds for the punctual payment of such obligations, when due, and the
City shall levy annually, as provided by law, a direct ad valorem tax
upon all of the taxable property within the City in an amount
sufficient, with other available funds, to pay interest on and the
principal of the bonds as they become due and payable. The City
covenants with the owners of its bonds to levy such a tax annually
during each year that any of the bonds, or bonds issued to refund them,
are outstanding.
Section 5. Form of Registered Bond. The bonds shall be in
substantially the following form:
R- $-
UNITED STATES OF AMERICA
CITY OF CENTRAL POINT
COUNTY OF JACKSON
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1986
DATED INTEREST % PER ANNUM MATURITY DATE CUSIP
THE CITY OF CENTRAL POINT, in the County of Jackson, State of
Oregon, (the "City"), for value received acknowledges itself indebted
and hereby promises to pay to or
registered assigns, the principal sum of
Dollars,. ($ } on the above maturity date,
together with interest thereon from the date hereof at the rate per
annum indicated above. Interest is payable semiannually on the
day of March and on the 1st day of September in ,each year until maturity
or prior redemption, commencing March 1, 1987. ;Interest upon this bond
is payable through the City's paying agent and registrar (the U. S.
National Bank) by check or draft; checks or drafts will be mailed to the
name and address of the registered owner as they appear on the bond
register on the fifteenth day of the month prior to the date on which
interest comes due. Bond principal is payable upon presentation and
surrender of this bond to the Registrar.
Ordinance No. 1572 - 2
ADDITIONAL PROVISIONS OF THIS BOND APPEAR ON THE REVERSE SIDE:
THESE PROVISIONS HAVE THE. SAME EFFECT AS IF THEY WERE PRINTED HEREIN.
. IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all conditions,
acts,' and things required to exist, to happen, and to be performed
precedent to and in the issuance of this bond have existed, have
happened, and have been performed in due time, form, and manner as
required by the Constitution and Statutes of the State of Oregon and the
Charter of the City; that the issue of which this bond is a part, and
-. all other obligations of such City, are within every debt limitation and
other limits prescribed by such Constitution, Statutes and Charter; and
that the City Council has covenanted to levy annually a direct ad
valorem tax upon all taxable property within the City in an amount
sufficient, with other available funds, to pay the interest on and the
' principal of the bonds of such issue as they become due and payable.
IN WITNESS WHEREOF, the City Council of the City of Central Point,
Jackson County, Oregon, has caused this bond to be signed by facsimile
signature of its Mayor and attested by facsimile signature of its
Finance Director, and has caused its seal to be affixed hereto or
printed hereon as of this 1st day of September, 1986.
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Mayor, C ty of Ce al Point, Oregon
ATTEST:
Finance Director., i of Central Point, Oregon.
THIS BOND SHALL NOT BE VALID UNLESS
PROPERLY AUTHENTICATED BY THE REGISTRAR
IN THE SPACE INDICATED BELOW.
DATED
CERTIFICATE OF AUTHENTICATION
This is one of the City's General
Obligation Improvement Bonds, Series 1986,
issued pursuant to the Bond Ordinance
described herein.
Registrar
By
Authorized Signature
Ordiance No. 1572 -3
NOTE TO PRINTER: The following language should be printed on the.
reverse of the bond.
This bond is one of the General Obligation Improvement Bonds,
Series"1986, of the City, and is issued by the City to finance local
improvements pursuant to the Bond Ordinance of the City of Central
Point, Oregon and Oregon Revised Statutes Sections 223.205 to 223.295,
in full and strict accordance and compliance with all of the provisions
of the Constitution and Statutes of the State o"f Oregon and the Charter
of the City.
The City reserves the right to redeem all or any portion of the
Bonds maturing after September 1, 1996, in-inverse order of maturity .and
by lot within a maturity on September 1, 1996, .and on any interest
payment date thereafter, at par plus accrued interest to the redemption
date.
The bonds are subject to extraordinary redemption on September 1,
1989, solely from, and to, the extent of, any proceeds of the bonds which
remain unexpended on that date.
Notice of redemption shall be mailed to the registered owners of
the bonds to be redeemed not less than thirty days prior to the intended
` redemption date, and given as otherwise required. by law; however, any
failure to give notice shall not invalidate the "redemption of the bonds.
All bonds called for redemption shall cease to 'b ear interest from the
date designated in the notice.
The bonds are issuable in the form of registered bonds without
coupons in the denominations of $5,000 or any integral .multiple thereof.
Bonds may be exchanged for bonds of the same aggregate principal amount,
but different authorized denominations.
Ordinance No. 1572 -4
' Any transfer of this bond must be registered, as provided in the
Bond Ordinance, upon the bond register kept for that purpose at the
` office of the Registrar. The City and the Registrar may treat the
person in whose name this bond is registered as its absolute owner for
all purposes, as provided in, the Bond Ordinance.
The bondowner may exchange or transfer any bond only by._'
,surrendering it, together with a written instrument .of exchange or
transfer which is satisfactory to the Registrar and duly executed by the
registered owner or his duly authorized attorney, at the office of the
Registrar in the manner and subject to the conditions set forth'in the
Bond Ordinance.
ASSIGNMENT
FOR :VALUE RECEIVED ,'the..undersigned sells, assigns and transfers
unto
Social Security No: or other I.D. Number of assignee
the within bond and does hereby irrevocably constitute and appoint
as attorney to transfer this
bond on the books kept for registration thereof with the full power of
substitution in the premises.
Dated:
NOTICE: The signature to this assignment must correspond with the name
of the registered owner as it appears upon the face of the within bond
in every particular, without alteration or enlargement or any change
whatever.
Signature Guaranteed
e
Bank, Trust Company or Firm
Authorized Off icer
Ordinance No. 1572 - 5
The following abbreviations, when used in the inscription on the
face of the within bond, shall be construed as though they were written
out in full according to applicable laws or regulations.
TEN COM -- tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship
and not as tenants in common
OREGON CUSTODIANS use the following
CUST UL GREG
as custodian under the laws of Oregon for
MIN
(Minor's Name)
Additional abbreviations may also be used though not in the list
above.
Section 6. Authentication, Registration and Transfer.
(1) No bond shall be entitled to any right or benefit under this
Ordinance, the bond ordinance, unless it shall have been
authenticated by an authorized officer of the City's paying
agent and registrar (U.S. National Bank). The Registrar shall ,
authenticate all bonds to be delivered at closing of this bond
issue, and shall additionally authenticate all bonds properly
surrendered for exchange or transfer pursuant to this bond
ordinance.
(2) All bonds shall be in registered form. The City hereby
appoints U.S. National Bank to serve as Registrar. A
_' successor Registrar may be appointed for the bonds by
ordinance or resolution of the City. The registrar shall
provide notice to bondowners of any change in the Registrar
not later than the bond payment date following the change in
Registrar.
(3) ,The ownership of all bonds shall be entered in the bond
register maintained by the Registrar, and the City and the
Registrar may treat the person listed as the owner in the bond
register as the owner of the bond for all purposes.
Ordinance No.1572 - 6
(4) The Registrar shall mail each bond interest payment to the
name and address of the bondowner as they appear on the bond
register on the fifteenth day of the month preceding a bond
payment date (the "Record Date"). If .payment is so mailed,
neither the City nor the Registrar shall have any further
liability to any party for such payment.
(5) Bonds may be exchanged for an equal principal amount of bonds
of the same maturity which are in different denominations, and
bonds may be transferred to other owners if the bondowner
submits the following to the Registrar:
(a) written instructions for exchange or transfer
satisfactory to the Registrar, signed by the bondowner
or his attorney in fact and guaranteed or_witnessed
in a manner satisfactory to the Registrar; and
(b) the bonds to be exchanged or tranferred.
(6) The Registrar shall not be required to exchange or transfer
any bonds submitted to it during any period beginning with a
Record Date and ending on the next following payment date:
however, such bonds shall be exchanged or transferred promptly
following that payment date.
(7) The Registrar shall note the date of authentication on each
bond. The date of authentication shall be the date on which
the bondowner's name is listed on the bond register.
(8) For purposes of this section, bonds shall be considered
submitted to the Registrar on the date the Registrar actually
receives the materials described in subsection (5) of this
section.
(9) The City may alter these provisions regarding registration and
transfer by mailing notification of the altered provisions to
all bondowners. The altered provisions shall take effect on
the date stated in the notice, which shall not be earlier than
45 days after notice is mailed.
Section 7. Compliance with Federal Law. The City covenants for
the benefit of the owners of the bonds to comply with all applicable
provisions of federal law which are necessary in order for the interest
paid on the bonds to be exempt from federal income taxation. The City
also covenants to comply with the applicable provisions of H.R. 3838 as
Ordinance No. 1572 - 7
adopted by the House of Representatives on December 17, 1985, unless the
City obtains an opinion of nationally recognized bond counsel after
final action by Congress on H.R. 3838 that such compliance is not
required. The City makes the following specific covenants with respect
to H.R. 3838:
(1) The City shall expend more than five percent of the net
proceeds of the bonds within 30 days for project-related
expenses.
(2) The City shall expend all net proceeds of the bonds within
three years.
(3) Beginning 30 days after the date of closing, at no time
during any bond year shall the proceeds be invested in_
nonpurpose obligations with a yield higher than the yield on
the bonds in amounts which exceed 1507 of the debt service on
the bonds for the bond year. Any amount so invested at a
higher yield shall be promptly and appropriately reduced as
the amount of outstanding bonds is reduced. For purposes of
this section, proceeds includes bond proceeds, earnings
thereon and monies in the sinking fund attributable to the
bonds.
(4) The excess of the aggregate amount earned on all investments
of proceeds over the amount which would have been earned if
the investments had been invested at a rate equal to the yield
on the bonds shall be placed in a special account, and held
and rebated to the United States at least once every five
years.
(5) No portion of the facilities financed with the bonds shall be
used by any person except the City or a member of the general
public.
Section 8. Sale of Bonds. The City Administrator shall cause to
be published in the Medford Mail Tribune, and in the Daily Journal of
Commerce Portland Business Today, Portland, Oregon, notices of sale of
the bonds in the form substantially as shown on Exhibit A attached
hereto and by this reference incorporated herein, or summaries, as
provided by law. The bonds shall be sold upon the terms provided in the
attached Exhibit A. The bonds shall be sold on the date and at the time
.and place stated in Exhibit A, unless the Mayor or City Administrator
establishes a different date, time, or place.
Ordinance No. 1572 - 8
Section 9. Emergency. This Ordinance being necessary for the
immediate preservation of the public peace, health and safety of the
City of Central Point, Oregon, based upon the need for securing Bancroft
Bonding at a time when interest rates are low, second reading is waived
and an emergency is hereby declared to exist and this Ordinance shall be
in full force and effect immediately upon its passage by the Council and
approval by the Mayor.
Passed by the unanimous vote of the Council, with a quorum in
attendance, this 17th day of July 1986.
Approved by the Mayor this 21s t day of July 1986.
Mayor
Executed this 21st day of July 1986.
ATTEST:
Ordinance No. 1572 - 9
EXHIBIT A
OFFICIAL NOTICE OF BOND SALE
A 1 / c nn n
CITY OF CENTRAL POINT
COUNTY OF JACKSON
STATE OF OREGON
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1986
NOTICE IS HEREBY GIVEN that sealed bids will be received on behalf
of the City of Central Point, Jackson County, Oregon, until 4:00 o'clock
p.m. (Pacific Time) on August 21, 1986, at the offices of Lindsay, Hart,
Neil, and Weigler, Suite 1800, 222 S.W. Columbia, Portland, Oregon
97201, at which time they will be publicly opened and announced.
The bids shall be considered and acted upon by the City within four
hours.
ISSUE: Three Hundred Forty-Five Thousand Dollars ($345,000.)
consisting of registered bonds in denominations of FIVE THOUSAND DOLLARS
(.$5,000) or integral multiples thereof, all dated September 1, 1986.
INTEREST RATE: Maximum not to exceed a net effective rate of
eleven percent (117) per annum. Interest is payable semiannually on
March 1 and September 1 of each year until maturity or prior redemption
commencing March 1, 1987. Bidders must specify the interest rate or
rates which the bonds hereby offered for sale shall bear. The bids
shall comply with the following conditions: (1) Each interest rate
specified in any bid must be a multiple of 1/8th or 1/20th of one
percent (17); (2) No bond shall bear more than one rate of interest; (3)
Each bond shall bear interest from its date to its stated maturity date
at the interest rate specified;in the bid; (4) All bonds maturing at any
one time shall bear the same rate of interest; and (5) No rate of
interest may exceed eleven percent (117).
MATURITIES: The bonds shall mature serially on the 1st day of
September of each year as follows:
DATE AMOUNT DATE AMOUNT DATE AMOUNT DATE AMOUNT
1988 10,000 1993 20,000 1998 25,000 2003 20,000
1989 10,000 1994 20,000 1999 25,000 2004 20,000
1990 10,000 1995 20,000 2000 20,000 2005 10,000
1991 20,000 1996 20,000 2001 20,000 2006 10,000
1992 20,000 1997 20,000 2002 20,000 2007 5,000
Ordinance No. 1572 - 10
REGISTRATION: The bonds will be issued in fully registered
form, and may be exchanged at the expense of issuer for similar bonds of
different authorized denominations. Bonds may not be converted to
bearer form.
REDEMPTION: The City reserves the right to redeem all or any
portion of the Bonds maturing after September 1, 1996, in inverse order
of maturity and by lot within a maturity on September 1, 1996; and on
any interest payment date thereafter, at par plus accrued interest to
the redemption date.
EXTRAORDINARY CALL FOR UNEXPENDED PROCEEDS: The bonds are
subject to extraordinary redemption on September 1, 1989, at par and
accrued interest solely from, and to the extent of, any proceeds of the
bonds which remain unexpended on that date if necessary to preserve the
tax exempt status of the bonds.
Notice of redemption shall be given by mailing notice thereof
to the registered owners not less than 30 days prior to the redemption
date, and as otherwise required by law. Interest on any bond or bonds
so called for redemption shall cease on the redemption date designated
in the notice.
PAYMENT: Principal and interest are payable, either at
maturity or upon earlier redemption by check or draft through the office
of the registrar and paying agent of the City, which is currently the
office of U.S. National Bank, in Portland, Oregon.
PURPOSE: The bonds are being issued to finance local
improvements.
SECURITY: The City has assessed benefitted properties for the
costs of local improvements and has received applications to pay
assessments in installments. All assessment installments will be placed
in the Bancroft Bond Redemption Fund and applied to the payment of
principal and interest on the bonds. The bonds are also general
obligations of the. City. The City has covenanted to levy an ad valorem
tax annually which, with other available funds, will be sufficient to
pay bond principal and interest as they come due.
Ordinance No. 1572 - 11
,.- ;
LEGAL OPINION: The approving opinion of Lindsay, Hart, Neil, and
Weigler, Lawyers, of Portland, Oregon, will be provided at no cost to
the purchaser, and will be printed on the bonds at the expense of the
City.
TAX EXEMPT STATUS: Interest on the bonds, in the opinion of bond
counsel, is exempt from taxation by the United States under present
federal income tax laws and from personal.income taxation by the State
of Oregon under present state law.
The City has covenanted to expend not less than five percent (57)
of the bond proceeds within 30 days of closing and to otherwise comply
with the provisions of H.R. 3838 adopted by the United States House of
Representatives on December 17, 1985.
Bond Counsel will further opine that, assuming compliance by the
City with the applicable requirements of H.R. 3838, interest on the
bonds will be exempt from federal income taxation under H.R. 3838 if it
is enacted into law as was so adopted. Bond Counsel will express no
opinion as to the federal tax exemption with respect to the bonds in the
event that H.R. 3838 is enacted in modified form or in the event that
other legislation affecting the bonds is enacted.
BEST BID: The bonds will be awarded to the responsible bidder
whose proposal will result in the lowest net cost :to the City. The
successful bid. will be determined by computing the total amount of
interest which the City would be required to pay from the date of each
bond to its respective maturity date at the rate or rates specified in
the bid assuming no bonds are called prior to maturity, less premium
offered, if any. Each bidder is requested to supply the total interest
cost and net effective interest rate that the City will pay upon the
issue if the bid is accepted. The purchaser must pay accrued interest,
computed on a 360-day basis, from the date of the bonds to the date of
delivery. The cost of printing the bonds will be borne by the City.
DELIVERY: Delivery of the bonds will be made without cost to the
successful bidder at such bank in the City of Portland, Oregon, as the
successful bidder shall name. Payment for the bonds must be made in
Federal funds. Delivery will be made within thirty days.
Ordinance No. 1572 - 12
FORM OF BID: All bids must be for not less than all the bonds
hereby offered for sale, and for not less than one hundred percent
(1007) of the par value thereof and accrued interest to the date of
delivery. Each bid together with bidder's check as herein specified
must be enclosed in a sealed envelope addressed to the City and
designated "Proposal for Bonds".
BID CHECK: All bids must be unconditional and accompanied by a
certified or cashier's check on a bank doing business in the State of
Oregon for Six Thousand Nine-Hundred Dollars ($6,900), payable to the
order of the City to secure the City from any loss resulting from the
failure of the bidder to comply with the terms of its bid. Checks will
be forfeited to the City as liquidated damages in case the bidder to
whom the bonds are awarded withdraws its bid or fails to complete its
purchase in accordance with the terms thereof. No interest shall be
allowed on the deposit but the check of the successful bidder will be
retained as part payment of the bonds or for liquidated damages as
described above. Checks of the unsuccessful bidders will be returned by
the City promptly.
RIGHT OF REJECTION: The City reserves the right to reject any or
all bids, and to waive any irregularities.
CUSIP: CUSIP numbers will be imprinted upon all bonds of this
issue at the City's expense. Failure to print, or improperly imprinted
numbers will not constitute basis for the purchaser to refuse to accept
delivery.
NO LITIGATION: At the time of payment for the delivery of said
bonds, the City will furnish the successful bidder a certificate that
there is no litigation pending affecting the validity of the bonds.
FURTHER INFORMATION: Additional information and the official
statement regarding the City and this sale may be obtained from
David Kucera, City Administrator, P. 0. Box 3576, Central Point, Oregon
97502, telephone (503) 664-3321.
Finance Director
City of Central Point, Oregon
Ordinance No. 1572 - 13