WHEREAS, on August 6, 2001, the Seattle City Council adopted Resolution 30345, updating Debt Management Policies for the City of Seattle; and
WHEREAS, on November 18, 2002, the Council in Resolution 30533 updated the Debt Management Policies, superceding a portion of Resolution 30345; and
WHEREAS, the Executive and Council wish to further update the City's Debt Management Policies to clarify the acceptable uses of accrued interest and net premiums, to allow for resizing a limited tax general obligation bond issue at pricing, and to no
longer allow the fiscal agent fees to be paid from the General Bond Interest and Redemption Fund; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR CONCURRING, THAT:
Section 1. The following policies are added to the City's adopted debt management policies:
Policy 25. Accrued Interest: Accrued interest on general obligation bonds shall be deposited into the Bond Fund and applied to pay interest on or principal of those bonds unless otherwise specified or authorized by or pursuant to an ordinance
authorizing or a resolution confirming the sale of the debt issue. For purposes of this section, "accrued interest" is the interest for the period between the dated date of bonds and the settlement date.
Policy 26. Net Premium Unlimited Tax General Obligation Bonds: Any net premium resulting from the sale of an unlimited tax general obligation bond issue shall be used first to pay the costs of issuance of that bond issue; and to the extent the net
premium exceeds those costs of issuance, the remaining net premium shall be deposited into the Bond Fund and applied to pay interest on or principal of that bond issue unless otherwise specified or authorized by or pursuant to an ordinance authorizing
or a resolution confirming the sale of the debt issue.
Policy 27. Net Premium and Re-Sizing: The City may re-size a bond issue at pricing in order to ensure that projects receive the appropriate amount of overall bond proceeds from the sale of limited tax general obligation bonds, if it is practical to do
so. In such circumstances, net premium may be allocated to individual projects, but only to the extent necessary to provide the amount of bond proceeds designated for those projects. Any residual net premium, above what is designated for projects,
will be deposited in the Bond Fund and applied to pay interest on or principal of that bond issue unless otherwise specified or authorized by or pursuant to an ordinance authorizing or a resolution confirming the sale of the debt issue.
Section 2. Debt management policies 25 through 40 adopted in Resolution 30345 as superceded by Resolution 30533 are renumbered as 28 through 43, respectively.
Section 3. Debt Management Policy 34 adopted in Resolution 30345, now Policy 37, is hereby modified as follows:
The Department of Finance will utilize a fiscal agent on all City indebtedness. Fiscal agent fees for outstanding bonds will be paid from the Bond Interest and Redemption Fund, unless specified otherwise by the Director of
Finance.
Adopted by the City Council the ____ day of _________, 2003, and signed by me in open session in authentication of its adoption this _____ day of __________, 2003. _________________________________ President __________of the City Council
THE MAYOR CONCURRING: _________________________________ Gregory J. Nickels, Mayor
Filed by me this ____ day of _________, 2003. ____________________________________ City Clerk
July 9, 2003 version #1