Ordinance 327-74 - Laserfiche WebLink

«! f ORDINANCE NO. :'S„? 1 7 AN ORDINANCE repealing ordinances No. 156-71 and 318-74 and authorizing the issue. of in- terest bearing warrants and establishing a method whereby such warrants may be redeem- ed by the City of Everett and declaring an emergency to exist. WHEREAS: The City of Everett has constructed an interdepart- mental service center at 3114 Cedar. WHEREAS : The City was authorized to borrow $1, 423 , 035. 59 on an interim basis to construct such facility. WHEREAS: The City has appropriated $750, 000. of Revenue Sharing monies to apply on the now outstanding indebtedness of the faci- lity leaving an outstanding balance of $668 , 604 . 85. WHEREAS : A local bank has agreed to purchase $668 , 604 . 85 of in- terest bearing warrants at a rate of annual interest not to ex- ceed 7% WHEREAS : The bank has also agreed to establish a variable slid- ing rate of interest and has given the City the option of re- negotiating such annual interest rate on a quarterly basis. WHEREAS : In consideration for this option the City agrees to pay $100, 000. or more annually on principle plus interest on a semi-annual basis until such warrants are completely amortized. WHEREAS: The City of Everett further agrees to assess each pre- sent and future users of the facility a fair and equitable rental charge commencing January 1, 1975 to amortize the outstanding in- debtedness of $1, 423 , 035. 59 . THE CITY OF EVERETT DOES ORDAIN: Section 1. That the City treasurer be authorized to issue in- terest bearing warrants for $668 , 604. 85 at no more than 7% annual interest. Section 2. That an appropriation be made on an annual basis commencing January 1, 1975, and each year therafter to pay reason- able maintenance and operating costs, and debt service require- ments based on revenues generated from rental of the facility.