Ordinance No. 81-88 . g
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CITY OF TIGARD, OREGON
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ORDINANCE NO. 81- 00
AN ORDINANCE AUTHORIZING ISSUANCE OF GENERAL OBLIGATION IMPROVEMENT
BONDS AND DECLARING AN EMERGENCY.
THE CITY OF TIGARD DOES ORDAIN AS FOLLOWS:
Section 1. Authorization. The City of Tigard, Oregon, does
hereby authorize the issuance and sale of General Obligation
Improvement Bonds, Series No. 13, of the City of Tigard, Oregon, in
the amount of Three Hundred Seventy-four Thousand Seven Hundred ;
Ninety-five Dollars ($374,795.00) , to be dated November 1, 1981, to
be numbered consecutively from one (1) to seventy-five (75) inclusive,
to be in denominations of $5,000.00 each, except bond number one in
the amount of $4,795.00, to bear interest payable semiannually on g
May 1 and November 1 of each year and to mature serially in numerical
order on the first day of November in each year as follows:
Bond No. Maturity Date Amount
1-4 November 1, 1982 $ 19,795
5-9 November 1, 1983 25,000
10-14 November 1, 1984 25,000
d
15-20 November 1, 1985 30,000
21-27 November 1, 1986 35,000
28-35 November 1, 1987 40,000
36-43 November 1, 1988 40,000
44-52 November 1, 1989 45,000
53-63 November 1, 1990 55,000
64-75 November 1, 1991 60,000
Section 2. Signatures and Registration. Each of the bonds
shall be personally signed with the manual signature of the Mayor
in office on the date of execution of such bonds; each of the bonds
shall be attested by the Recorder in office on such date; the .;
coupons appertaining to the bonds shall be executed with the
facsimile signatures of such Mayor and Recorder; and each of the
bonds shall be registered in the Improvement Bond Register by the
auditor or recording officer of the City of Tigard, Washington _;
County, State of Oregon.
Section 3. Security. The city has assessed the cost of public
improvements to benefited properties and all monies collected
therefrom shall be placed in The Bancroft Bond Redemption Fund and
applied to the payment of principal and interest on these bonds.
The full faith and credit of the city are also pledged to the
successive holders of each of the bonds and of the interest coupons
appertaining thereto, for the punctual payment of such obligations,
when due; and the city shall levy annually, if required, a direct
ad valorem tax upon all of the taxable property within the city in
r. ;
sufficient amount, after taking into consideration discounts taken
and deliquencies that may occur in the payment of such taxes, to
pay the bond and bond interest obllga-.L promptly ?s they
respectively mature; and the city covenants with the holders of its
bonds, to levy such a tax annually as required during each year
that any of the bonds, or of bonds issued to refund them, and bond
interest obligations, are outstanding.
Section 4. Maintenance of Tax-Exempt Status. The city shall
take no action nor make any use of the proceeds of the bonds,
.installment payments of assessments or ad valorem tax revenues
intended to be used to pay principal and interest on the bonds,
which will cause the bonds to lose their tax-exempt status under
federal or State of Oregon income tax laws, regulations and judicial
or administrative interpretations.
Section 5. Form. The bonds and the coupons attached thereto
shall be in substantially the following form, the terms of which
are hereby adopted:
UNITED STATES OF AMERICA
STATE OF OREGON
COUNTY OF 'WASHINGTON
CITY OF TIGARD
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES NO. 13
$
City of Tigard, in the County of Washington, State of Oregon,
acknowledges itself indebted and for value received hereby promises
to pay to bearer on the day of , 1981,
the sum of DOLLARS
with interest thereon from the date hereof at the rate of
percent (_%) per annum, on the first day of May and the first
day of November in each year until maturity, upon surrender of the
annexed interest coupons as they severally mature. The principal
of and the interest upon this bond are payable in lawful money of
the United States of America, at the office of the Treasurer in the
City of Tigard, Oregon.
THIS BOND is one of a series aggregating Three Hundred Seventy-
four Thousand Seven Hundred Ninety-five Dollars ($374,795.00) par
value, issued to provide funds to construct public improvements as
authorized by Oregon Revised Statutes 223.205 to 223.29.5, inclusive,
commonly known as The Bancroft Bonding Act and are general obliga-
tions of the city.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all conditions,
acts, and things required to exist, to happen, and to be performed
precedent to and in the issuance of this bond have existed, have
happened, and have been performed in due time, form, and mangier as
required by the constitution and statutes of the State of Oregon;
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that the issue of which this bond is a p2 -L:, and all other obliga-
tions of the city, are within every debt limitation and other
(` limits prescribed by such constitution and statutes; and that the
city has provided for the levying annually of a direct ad valorem
tax as required upon all the property within the city so taxable
for its purposes, in sufficient amount to pay the interest on and
the principal of the bonds of suchissue, as such obligations
respectively become due and pay
IN WITNESS WHEREOF, the City of Tigard has caused this bond
to be signed by its mayor and attested by
its Recorder, the annexed interest coupons to be executed with
the facsimile signatures of such officer, and the seal of the 196city
1.
to be affixed hereto this y '
Mayor - City o —8—
ATTEST:
Recor er
FORM OF BOND COUPON
No.
On the first day of 19 , City of
this coupon at the
Tigard, State of Oregon, upon surren er o
gon, will pay
office of the Treasurer of the City of Tigard, Ore
to bearer the sum of
RS ($ in lawful money of the United States of
DOLLARS
for interest then due on its General Obligaation Improvement
Amerc _, an
Bond, Series No. 13, dated 9
bearing No.
Mayor
ATTEST:
Recorder
Section 6. Sale. The Recorder shall cause to be published in
the Tigard Times,--g"—newspaper of general circulation printed and
published in the City of Tigard, County of Washington, state of
Oregon, and in the Daily Journal of Commerce, Portland, Oregon,
notices of proposed sale of the bonds, as provided by law, in the
form substantially as shown on Exhibit A attached hereto and by
this reference incorporated herein, specifying that sealed bids will
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be received by the city up to and including the hour of 4:00 o'clock
p.m. on the 19th day of October, 1981, and that immediately there-
after bids received will be publicly opened by the council for the
sale of the bonds, at not less than the par value thereof and the
accrued interest thereof, at an interest rate or rates in multiples
of one-eighth of one percent or one-twentieth of one percent, not
exceeding a net effective rate of thirteen percent per annum,
payable semiannually on May 1 and November 1; that the bids shall
be accompanied by a cashier's check or certified check, of or upon
a bank doing business in the State of Oregon, in the sum of $7,496.00
(not less than 2% of the par value of the bonds) to be forfeited to
the city in case the bidder fails to complete the purchase in
accordance with the terms of his bid; that bids must be unconditional
except as to qualification of approval of validity of the bond issue
by bond attorneys; that bids must show the total cost of the bond
issue to the city, including interest, less premium offered, if any,
provided the bid be accepted; that the bonds will be sold to the
bidder whose bid will result in the lowest net interest cost to the
city; and that the councilreserves the right to reject any or all
bids.
Section 7. Emergency. This ordinance being necessary for the
immediate preservation of the public peace, health and safety of
the City of Tigard, in order to obtain sufficient funds to pay for
public improvements, an emergency is hereby declared to exist and
this ordinance shall be in full force and effect immediately upon
its passage by the council.
Passed by the unanimous vote of the council, with a quorum in
attendance, this 28th day of September, 1981.
Approved by the Mayor this 28th day of September, 1981.
ATTEST: APPROVED:
LAI
Recorder Mayor
ORDINANCE No. 81- _
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EXHIBIT A
OFFICIAL NOTICE OF BOND SALE
$374,795.00
CITY OF TIGARD
WASHINGTON COUNTY
STATE OF OREGON
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES NO. 13
Notice is hereby given that sealed bids will be received on
behalf of the City of Tigard, Washington County, Oregon, until
4:00 o'clock p.m. (Prevailing Pacific Time) on October 19, 1981,
at the City of Tigard, City Hall, 12420 S.W. Main, Tigard, Oregon
9.7223, at which time they will be publicly opened and announced.
The bids shall be considered and acted upon by the City
Council at its meeting to be held on October 19, 1981, commencing
at 7:30 o'clock p.m. 'Prevailing Pacific Tine) .
ISSUE: Three Hundred Seventy-four Thousand Seven Hundred
Ninety-five DOLLARS ($374,795) consisting of seventy-five (75)
coupon bonds in denominations of FIVE THOUSAND DOLLARS ($5,000) ,
except bond number One in the amount of $4,795, all dated
November 1, 1981.
INTEREST RATE: Maximum not to exceed a net effective rate
of thirteen percent (13%) per annum, the first interest payment
due on May 1, 1982 and semiannually thereafter on May 1 and
November 1 of each year. 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 in multiples of 1/8th or 1/20th
of one percent (1%); (2) No bond shall bear more than one rate of
interest, no interest payment shall be evidenced by more than one
coupon, and supplemental coupons will not be permitted; (3) Each
bond shall bear interest from its date to its stated maturity date
at the interest rate specified in the bonds; (4) All bonds
maturing at any one time shall bear the same rate of interest;
(5) The difference between the highest and lowest rates bid shall
not exceed two percent (2%) .
MATURITIES: The bonds shall mature serially in numercial
order on the first day of November in each of the years as follows:
BOND NO. MATURITY DATE AMOUNT
1-4 November 1, 1982 $ 19,795
5-9 November 1, 1983 25,000
10-14 November 1, 1984 25,000
15-20 November 1, 1985 30,000
21-27 November 1, 1986 35,000
28-35 November 1, 1987 40,000
36-43 November 1, 1988 40,000
44-52 November 1, 1989 45,000
53-63 November 1, 1990 55,000
64-75 November 1, 1991 60,000
REGISTRATION: The bonds will be issued in bearer form with
no option for registration.
PAYMENT: Principal and interest are payable in lawful money
of the United States at the office of the Treasurer, City of
Tigard, City Hall, Tigard, Oregon 97223.
PURPOSE: The bonds are issued to provide funds for streets
and sewers.
SECURITY. The city has assessed the cost of public improve-
ments to benefited properties and all monies collected therefrom
shall be placed in The Bancroft Redemption Fund and applied to the
payment of principal and interest on these bonds. The bonds are
also general obligations of the city. The city has covenanted to
levy an ad valorem tax annually as required to pay bond principal
and interest as they respectively come due.
LEGAL OPINION: The approving opinion of Ragen, Roberts,
O'Scannlain, Robertson & Neil, Attorneys at Law, 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.
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
coupon rate or rates specified in the bid assuming no bonds are
called prior to maturity, less premium offered, if any. Bidders
are requested to supply the total interest costs and net effective
interest rate, based upon the aggregate interest cost, if its bid
be accepted, that the city will pay upon the issue if the bid is
accepted. Such information shall be considered as informative
only. 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 funds immediately available to the city. Delivery will
be made within thirty (30) days.
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
N (100%) 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 Seven Thousand Four Hundred Ninety-five Dollars
($7,496) 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 liqui-
dated damages in case the bidder to whom the bonds are awarded shall
withdraw its bid or fail 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 after award of bid.
RIGHT OF REJECTION: The city reserves the right to reject any
or all bids and to waive any irregularity.
OFFICIAL STATEMENT: The city has prepared an official state-
ment relating to the bonds, a copy of which will be furnished upon
request to the undersigned.
CUSIP: CUSIP numbers will be imprinted upon all bonds of
this issue at the purchaser's request and expense. An improperly
imprinted number 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 cerfifi-
cate that there is no litigation pending affecting the validity
of the bonds.
ADDITIONAL INFORMATION: Additional information regarding the R
city and this sale may be obtained from Doris Hartig, City t'
Recorder, City Hall, 12420 S.W. Main, Tigard, -Oregon 97223, �
(503)639-4171. `
Recorder, City of Tigard
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