Drafter
Clerk 04/28/2004
Title
AN ORDINANCE relating to contracting indebtedness; providing for the issuance and sale of limited tax general obligation (public transportation sales tax) bonds of the county in the aggregate principal amount of not to exceed $50,000,000 for the purpose of financing portions of the Public Transportation Fund Capital Improvement Program of the county; providing for the form, terms, covenants and other provisions of such bonds; establishing funds for the receipt and expenditure of bond proceeds and for the payment of the bonds; providing for the annual levy of taxes to pay the principal thereof and interest thereon; and pledging public transportation sales tax revenues as additional security for the bonds.
Body
PREAMBLE:
The Municipality of Metropolitan Seattle ("Metro") was created by public vote in 1958 to exercise certain powers conferred by Chapter 35.58 of the Revised Code of Washington ("RCW"). In 1972, pursuant to RCW 35.58.245, the voters approved adding metropolitan public transportation functions to Metro's powers, and, in accordance with RCW 35.58.240, Metro adopted a comprehensive plan for public transportation for the Seattle metropolitan area, which plan has been amended from time to time (the "Comprehensive Plan"). To provide funds for the operation, maintenance and capital needs of Metro's public transportation system, Metro levied a sales tax pursuant to RCW 82.14.045 and as approved by the voters at elections held in 1972 and 1980.
Metro issued several series of its limited sales tax general obligation bonds secured by the pledge of the voter-approved sales tax, as authorized RCW 35.58.2721, to finance the acquisition and construction of facilities required to carry out the Comprehensive Plan. RCW 35.58.2721 provides that so long as such sales tax is pledged to outstanding bonds, the legislature may not withdraw the authority to levy and collect the tax.
Pursuant to Resolution No. 4937, a master bond re...
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