Chapter 3.07
SHORT-TERM OBLIGATIONS PROCEDURES
Sections:
3.07.010 City officials authorized—Procedures.
3.07.010 City officials authorized—Procedures.
The city director of finance and the city treasurer, or either of them, is authorized to negotiate the terms and conditions of contracts for the sale of short-term obligations as authorized by RCW Chapter 39.50 up to the maximum of the then-estimated costs and expense of each local improvement district. Such contracts shall be executed in the name of the city by the mayor, and attested by the city clerk, after approval as to form and legality by the city attorney. Unless otherwise provided by ordinance relating to a specific local improvement district, the obligations thus authorized may bear a fixed rate or rates or a variable rate or rates of interest which may be based on a bank prime or the most recent prime rate of interest published in the Wall Street Journal, but in any event shall not exceed a net effective interest rate of twelve percent per annum. Such short-term obligations shall be dated as of the date of their issuance and shall not be outstanding, together with any other short-term obligations issued to redeem the same, for longer than the time permitted by RCW Chapter 39.50. Such short-term obligations shall be registered in accordance with Chapter 3.18, as now in effect or hereafter amended, if so required in order to exempt the interest thereon from federal income taxation, and the city treasurer may designate which short-term obligations are those described in Section 3.18.030D as “obligations not usually subject to trading.” (Ord. 1405-87 § 1 (part), 1987)
3.07.020 Payment.
A. The short-term obligations may be paid from the proceeds of local improvement district bonds or consolidated local improvement bonds, from assessment payments, from the proceeds of the issuance of other short-term obligations, or from other city funds made available for that purpose. The short-term obligations shall be drawn on the local improvement fund created for the applicable local improvement district and, unless otherwise permitted by law, shall be payable solely out of that fund or the local improvement guaranty fund of the city.
B. The short-term obligations may be subject to prior redemption, may be sold at a discount, at par, or at a premium and shall be in such denominations and bear such other covenants respecting payment as the city finance director and the city treasurer, or either of them may determine. Both principal of and interest on the short-term obligations shall be payable in lawful money of the United States of America at the office or offices of the registrar. (Ord. 1405-87 § 1 (part), 1987)
3.07.030 Findings.
The city council finds and determines that the maximum rate of interest and the standards for the index for the variable interest rates established in this chapter are in the best interest of the city. (Ord. 1405-87 § 2, 1987)