ORDINANCE _________________

AN ORDINANCE relating to the City's General Bond Interest and Redemption Fund; repealing Ordinance 61777; specifying purposes of the General Bond Interest and Redemption Fund; directing payment from that fund of interest on and principal of the City's unlimited tax general obligation bonds; and providing for disposition of certain moneys that may be received in connection with the sale of general obligation bonds.

WHEREAS, on October 19, 1931, the Council passed Ordinance 61777, providing for and establishing special funds in the City Treasury to be designated "General Bond Interest Fund" and "General Bond Redemption Fund" for the payment of interest and the redemption of all general obligation bonds of the City; and

WHEREAS, on January 14, 1985, the Council passed Ordinance 112112, consolidating the General Bond Interest Fund and the General Bond Redemption Fund into the General Bond Interest and Redemption Fund; and

WHEREAS, on August 12, 1991, the Council passed Ordinance 115742, creating a lease principal and interest account in the General Bond Interest and Redemption Fund; and

WHEREAS, the Council and Mayor now wish to update and clarify certain revenue and expenditure policies for the General Bond Interest and Redemption Fund and for amounts that may be received in connection with the sale of general obligation bonds; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Ordinance 61777 is hereby repealed. The General Bond Interest and Redemption Fund, created by Ordinance 112112, shall continue to exist in the City Treasury.

Section 2. Into the General Bond Interest and Redemption Fund shall be paid all moneys to pay interest on, principal of, and other redemption payments with respect to limited tax general obligation bonds of the City. These moneys shall be used only to pay interest on, principal of, and other redemption payments with respect to limited tax general obligation bonds.

Section 3. Into the General Bond Interest and Redemption Fund shall be paid all moneys received from tax levies to pay interest on, principal of, and other redemption payments with respect to unlimited tax general obligation bonds of the City. These moneys shall be used only to pay interest on, principal of, and other redemption payments with respect to unlimited tax general obligation bonds.

Section 4. The Director of Executive Administration or his functional successor as custodian of the City Treasury is authorized and directed to pay from the General Bond Interest and Redemption Fund interest on, principal of, and other redemption payments with respect to unlimited tax general obligation bonds of the City as and when due.

Section 5. Any undesignated balance in the General Bond Interest and Redemption Fund shall be held as a reserve and used solely to make debt service payments in emergencies when normal City revenues are not available.

Section 6. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2003, and signed by me in open session in authentication of its passage this _____ day of __________, 2003.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2003.

_________________________________

Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2003.

____________________________________

City Clerk

(Seal)

Diane Clausen/dcc

DOF Bond Fund policies ord

May 12, 2003

version #6