HomeMy WebLinkAbout2020-81 - Res. Refinancing Mason Co Limited Tax General Obligation Refunding Bond 2021 to Cashmere Valley Bank MASON COUNTY, WASHINGTON
RESOLUTION NO. Z020 S
A RESOLUTION of Mason County, Washington, providing for the
issuance, sale and delivery of a $3,167,955 aggregate principal amount Limited
Tax General Obligation Refunding Bond, 2021 to Cashmere Valley Bank to
provide funds necessary to refund certain outstanding general obligation bonds of
the County; fixing certain terms and covenants of the bond; and providing for
other related matters.
Passed October 20, 2020
This document prepared by:
Foster Garvey P.C.
1111 Third Avenue, Suite 3000
Seattle, Washington 98101
(206) 447-4400
FG:53782598.5
TABLE OF CONTENTS*
Section1. Definitions.................................................................................:............................. 1
Section 2. Findings and Determinations.................................................................................. 2
Section 3. Authorization of the Bond ...................................................................................... 3
Section 4. Description of the Bond........................................................................................... 3
Section 5. Bond Registrar; Registration and Transfer of the Bond.........................................4
Section 6. Form and Execution of the Bond............................................................................4 -
Section 7. Payment of the Bond............................................................................................... 5
Section 8. Funds and Accounts; Deposit of Proceeds.............................................................. 5
Section9. Prepayment ............................................................................................................. 5
Section 10. Failure To Pay the Bond......................................................................................... 6
Section11. Pledge of Taxes....................................................................................................... 6
Section 12. Tax Covenants; Designation of the Bond as a "Qualified Tax-Exempt
Obligation."............................................................................................................. 6
Section 13. Refunding or Defeasance of the Bond.................................................................... 7
Section 14. Refunding of the Refunded Bonds.......................................................................... 7
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Section 15. Sale and Delivery of the Bond. 8
Section 16. Reporting Requirements ......................................................................................... 8
Section 17. Supplemental and Amendatory Resolutions........................................................... 8
Section 18. General Authorization and Ratification.................................................................. 8
Section19. Severability............................................................................................................. 8
Section 20. Effective Date of Resolution................................................................................... 9
*The cover page, table of contents and section headings of this resolution are for convenience of reference only,
and shall not be used to resolve any question of interpretation of this resolution.
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FG:53782598.5
MASON COUNTY, WASHINGTON
RESOLUTION NO.
A RESOLUTION of Mason. County, Washington, providing for the
issuance, sale and delivery of a $3,167,955 aggregate iprincipal amount Limited
Tax General Obligation Refunding Bond, 2021 to Cashmere Valley Bank to
provide funds necessary to refund certain outstanding general obligation bonds of
the County; fixing certain terms and covenants of the bond; and providing for
other related matters.
THE BOARD OF COUNTY COMMISSIONERS OF MASON COUNTY,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
Section 1. Definitions. As used in this resolution, the following capitalized terms
shall have the following meanings:
(a) "2011 Bonds" means the County's Limited Tax General Obligation Bonds, 2011
issued pursuant to Resolution Nos. 45-11 and 51-11.
(b) "2020A Bond" means the Mason County, Washington Limited Tax General
Obligation Refunding Bond, 2020A.
f
(c) "2020B Bond" means the Mason County, Washington Limited Tax General
Obligation Refunding Bond, 2020B.
(d) "Board" means the Board of Commissioners of Mason County, the general
legislative authority of the County.
(e) "Bond" means the Mason County, Washington Limited Tax General Obligation
Refunding Bond, 2021, issued pursuant to and for the purposes provided in this resolution.
(f) "Bond Counsel"means the firm of Foster Garvey P.C., its successor, or any other
attorney or firm of attorneys selected by the County with a nationally recognized standing as
bond counsel in the field of municipal finance.
(g) "Bond Fund" means the "Limited Tax General Obligation Refunding Bond Fund,
2021" created for the payment of the principal of and interest on the Bond.
(h) "Bond Purchase Agreement" means an offer to purchase the Bond, setting forth
certain terms and conditions of the issuance, sale and delivery of the Bond, which offer is
authorized to be accepted by the Treasurer on behalf of the County.
(i) "Bond Register"means the books or records maintained by the Bond Registrar for
the purpose of identifying ownership of the Bond.
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FG:53782598.6
"Bond Registrar" means the County Treasurer or any successor bond registrar
_J selected for the Bond.
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(k) "Code" means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
(1) "County" means Mason County, Washington, a municipal corporation duly
organized and existing under the laws of the State.
(m) "Fiscal Agent" means the fiscal agent of the State, as the same may be designated
by the State from time to time.
(n) "Government Obligations" has the meaning given in RCW 39.53.010, as now in
effect or as may hereafter be amended.
(o) "Issue Date" means, with respect to the Bond, the date of initial issuance and
delivery of the Bond to the Purchaser in exchange for the purchase price of the Bond.
(p) "Purchaser" means Cashmere Valley Bank, its successor or assigns, as purchaser
of the Bond.
(q) "Redemption Date" means June 1, 2021.
(r) "Refunded Bonds" means the outstanding 2011 Bonds maturing in the years 2021
{ through 2030, inclusive, the refundings of which has been provided for by this resolution
(s) "Refunding Plan" means the placement of sufficient proceeds of the Bond which,
will be deposited in the bond fund for the 2011 Bonds to be used to pay the principal of and
interest on the Refunded Bonds when due up to and including June 1, 2021 and the call,
payment, and redemption on such date, of all of the then-outstanding Refunded Bonds at a price
of par,'and may include the payment of the costs of issuing the Bond and the costs of carrying
out the foregoing elements of the Refunding Plan.
(t) "State" means the State of Washington.
Section 2. Findings and Determinations. The County takes note of the following facts
and makes the following findings and determinations:
(a) Authority and Description of the Refunding Plan.
(i) Pursuant to Resolution Nos. 45-I1 and 51-11, the County heretofore
issued its $6,200,000 par value Limited Tax General Obligation Bonds, 2011 (the "2011
Bonds"), for the purpose of providing a portion of the funds needed to construct a new
wastewater treatment and water reclamation facilities in Belfair, and by those resolutions
reserved the right to redeem the 2011 Bonds maturing on and after December 1, 2021, prior to
their maturity on or after June 1, 2021, at a price of par plus accrued interest to the date fixed for
redemption (the "Refunded Bonds").
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FG:53782598.6
- (ii) There are presently $3,160,000 par value of Refunded Bonds outstanding.
In addition, there are an additional $265,000 of outstanding Bonds maturing on December 1,
2020:
(iii) After due consideration, it appears to the Board that all of the Refunded.
Bonds maturing after December 1, 2020 shall be refunded by the issuance and sale of the Bond
authorized herein so that a savings will be effected by the difference between the principal and
interest cost over the life of the Bond and the principal and interest cost over the life of the 2011
Refunded Bonds but for such refunding; which refunding will be effected by carrying out the
refunding of the Refunded Bonds.
(b) Debt Capacity. The maximum amount of indebtedness authorized by this
resolution is $3,167,955. Based on the following facts, this amount is to be issued within the
amount permitted to be issued by the County for general municipal purposes without a vote:
(i) The assessed valuation of the taxable property within the County as
ascertained by the last preceding assessment for County purposes for collection in the calendar
year 2020 is $8,724,563,720.
(ii) As of July 31, 2020, the County had limited tax general obligation
indebtedness, consisting of bonds and loans outstanding in the principal amount of$25,301,857,
including the Refunded Bonds, and any outstanding debt expected to be repaid with proceeds of
the 2020A Bond and 2020B Bond, which is incurred within the limit of up to 1 V2% of the value
of the taxable property within the County permitted for general municipal purposes without a
vote.
(iii) As of July 31, 2020, the County had no unlimited tax general obligation
indebtedness.
(c) The Bond. For the purpose of providing the funds necessary to carry out the
Refunding Plan and pay the costs of issuance and sale of the Bond, the Board finds that it is in
the best interests of the County and its taxpayers to issue and sell the Bond to the Purchaser,
pursuant to the terms set forth in the Bond Purchase Agreement for the Bond.
Section 3. Authorization of the Bond. The County shall borrow money on the credit
of the County and issue the Bond evidencing indebtedness in the amount of $3,167,955 to
provide funds necessary to carry out the Refunding Plan and pay the costs of issuance and sale of
the Bond. Any remaining proceeds of the Bond, after payment of costs of issuance, shall be
deposited into the Bond Fund to pay interest and principal on the Bond on its first interest
payment date.
Section 4. Description of the Bond. The Bond shall be called the "Mason County,
Washington, Limited Tax General Obligation Refunding Bond, 2021," and shall be issued in the
aggregate principal amount of$3,167,955. The Bond shall be dated May 27, 2021, shall mature
on December 1, 2030; and shall bear interest at the rates per annum as set forth in Exhibit A
(computed on the basis of a 360-day year of 12 30-day months), payable semiannually on each
June 1 and December 1, commencing December 1, 2021. Principal on the Bond shall be due at
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FG:53782598.6
its maturity, as set forth in Exhibit A, which is attached to this resolution and incorporated by
this reference.
Section 5. Bond Registrar; Registration and Transfer of the Bond. Pursuant to
RCW 39.46.030(4) the County Treasurer shall serve as initial fiscal agent for the County (the
"Bond Registrar") with respect to the Bond and is authorized, on behalf of the County, to
authenticate and deliver the Bond in accordance with the provisions of the Bond and this
resolution. The Bond shall be issued only in registered form as to both principal and interest and
shall be recorded on books or records maintained by the Bond Registrar (the "Bond Register").
The Bond Register shall contain the name and mailing address of the owner of the Bond.
Upon a determination by the County Treasurer that maintenance of the duties of the Bond
Registrar is no longer convenient, the Fiscal Agent shall act as Bond Registrar.
The Bond Registrar shall keep, or cause to be kept, at its-office, sufficient books for the
registration, assignment or transfer of the Bond, which books shall be open to inspection by the
County at all times. The Bond Registrar is authorized, on behalf of the County, to authenticate
and deliver the Bond transferred or exchanged in accordance with the provisions of the Bond and
this resolution, to serve as the County's paying agent for the Bond and to carry out all of the
Bond Registrar's powers and duties under this resolution.
The Bond Registrar shall be responsible for its representations contained in the Bond
Registrar's Certificate of Authentication on the Bond.
t_ The Bond may be assigned or transferred only in whole by the Purchaser to a single
investor that is a financial institution or an entity reasonably believed to be a qualified
institutional buyer within the meaning of the applicable federal securities laws. The transferee
shall sign a certificate substantially in the form attached to the Bond. Any transfer shall be
without cost to the owner or transferee, except for governmental charges imposed on any such
transfer or exchange. The Bond Registrar shall not be obligated to exchange or transfer the Bond
during the 15 days preceding any payment or prepayment date. When the Bond has been paid in
full, both principal and interest, the Bond shall be surrendered to the Bond Registrar, who shall
cancel the Bond.
Section 6. Form and Execution of the Bond.
(a) Form of the Bond; Signatures and Seal. The Bond shall be prepared in a form
consistent with the provisions of this resolution and State law. The Bond shall be signed by the
Chair of the Board and the Clerk of the Board, either or both of whose signatures may be manual
or in facsimile, and the seal of the County or a facsimile reproduction thereof shall be impressed
or printed thereon. If any officer whose manual or facsimile signature appears on a Bond ceases
to be an officer of the County authorized-to sign bonds before the Bond- bearing his or her
manual or facsimile signature is authenticated by the Bond Registrar, or issued or delivered by
the County, that Bond nevertheless may be authenticated, issued and delivered and, when
authenticated, issued and delivered, shall be as binding on the County as though that person had
continued to be an officer of the County authorized to sign bonds. Any Bond also may be signed
on behalf of the County by any person who, on the actual date of signing of the' Bond, is an
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FG:53782598.6
r officer of the County authorized to sign bonds, although she or he did not hold the required
office on its Issue Date.
(b) Authentication. Only the Bond bearing a Certificate of Authentication in
substantially the following form, manually signed by the Bond Registrar, shall be valid or
obligatory for any purpose or entitled to the benefits of this resolution: "Certificate of
Authentication. This Bond is the fully registered Mason County; Washington, Limited Tax
General Obligation Refunding Bond, 2021." The authorized signing of a Certificate of
Authentication shall be conclusive evidence that the Bond so authenticated has been duly
executed, authenticated and delivered and is entitled to the benefits of this resolution.
Section 7. Payment. of the Bond. Principal of and interest on the Bond shall be
payable in lawful money of the United States of America. Principal of and interest on the Bond
is payable by electronic transfer on the payment date, unless payment by check or draft of the
Bond Registrar is permitted by the Purchaser, and sent to the Purchaser so that the Purchaser
receives said payments when due at the address appearing on the Bond Register on the 15th day
of the month prior to the payment date. The Bond is not subject to acceleration under any
circumstances.
Upon receipt of the final payment of principal of and interest on the Bond, whether at
maturity or upon prepayment, the Purchaser shall present and surrender the Bond to the Bond
Registrar to be destroyed or cancelled in accordance with law. The County and the Bond
Registrar may deem and treat the Purchaser as the absolute owner of the Bond for the purpose of
receiving payment of principal and interest and for all other purposes, and neither the County nor
the Bond Registrar shall be affected by any notice to the contrary other than proper notice of
assignment or transfer.
Section 8. Funds and Accounts; Deposit of Proceeds. The Bond Fund is created as a
special fund for the sole purpose of paying principal of and interest on the Bond. Bond proceeds
in excess of the amounts needed to carry out the Refunding Plan and pay the costs of issuance of
the Bond, if any, shall be deposited into the Bond Fund. All amounts allocated to the payment of
the principal of and interest on the Bond shall be deposited in the Bond Fund as necessary for the
timely payment of amounts due with respect to the Bond. The principal of and interest on the
Bond shall be paid out of the Bond Fund, and until needed for this purpose, the County may
invest money in the Bond Fund temporarily in any legal investment, and the investment earnings
shall be retained in the Bond Fund and be used for the purposes of that fund.
Section 9. Prepayment. The County reserves the right and option to prepay and
redeem at any time any or all of the principal amount of the Bond outstanding at par plus accrued
interest to the date of prepayment. The County shall provide the Purchaser with 10 days' written
notice of any intended prepayment prior to such prepayment date. Interest on the principal
amount of the Bond called for prepayment shall cease to accrue on the date fixed for prepayment
unless the principal amount called for prepayment is not paid on the prepayment date. Partial
prepayments would be first applied to outstanding accrued interest with the balance applied to
reduce principal. After a partial prepayment, the debt service schedule would be recalculated.
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Section 10. Failure To Pay the Bond. If the Bond is not redeemed when properly
presented at its maturity date or date fixed for prepayment, the County shall be obligated to pay
interest on the Bond at the same rate provided in the Bond from and after its maturity or date
fixed for prepayment until the Bond, both principal and interest, is paid in full or until sufficient
money for its payment in full is on deposit in the Bond Fund and the Bond has been called for
payment by giving notice of that call to the registered owner.
Section 11. Pledge of Taxes. The Bond constitutes a general indebtedness of the
County and is payable from tax revenues of the County, and certain sewer revenue for the Bond,
and such other money as is lawfully available and pledged by the County for repaying the Bond.
For as long as the Bond is outstanding, the County irrevocably pledges that it shall, in the
manner provided by law within the constitutional and statutory limitations provided by law
without the assent of the voters, include in its annual levy amounts sufficient, taking into account
other money that is lawfully available, to pay principal of and interest on the Bond as the same
becomes due. The full faith, credit and resources of the County are pledged irrevocably for the
prompt payment of the principal of and interest on the Bond and such pledge shall be enforceable
in mandamus against the County.
Nothing would prevent the County from issuing additional debt payable from the sewer
revenue and to establish a priority of payments from such sewer revenue.
Section 12. Tax Covenants; Designation of the Bond as a "Qualified Tax-Exempt
Obligation."
(a) Preservation of Tax Exemption for Interest on the Bond. The County covenants
that it will take all actions necessary to prevent interest on the Bond from being included in gross
income for federal income tax purposes, and it will neither take any action nor make or permit
any use of proceeds of the Bond or other funds of the County treated as proceeds of the Bond at
any time during the term of the Bond which will cause interest on the Bond to be included in
gross income for federal income tax purposes. The County also covenants that it will, to the
extent the arbitrage rebate requirements of Section 148 of the Code are applicable to the Bond,
take all actions necessary to comply (or -to be treated as having complied) with those
requirements in connection with the Bond, including the calculation and payment of any
penalties that the County has elected to pay as an alternative to calculating rebatable arbitrage,
and the payment of any other penalties if required under Section 148 of the Code to prevent
interest on the Bond from being included in gross income for federal income tax purposes.
(b) Post-Issuance Compliance. The County Treasurer, or her or his designee, is
authorized and directed .to review and update the County's written procedures to facilitate
compliance by the County with the covenants in this resolution and the applicable requirements
of the Code that must be satisfied after the Issue Date to prevent interest on the Bond from being
included in gross income for federal tax purposes.
(c) Designation of Bond as a "Qualified Tax-Exempt Obligation. " The County
designates the Bond as a"qualified tax-exempt obligation" for the purposes of Section 265(b)(3)
of the Code, and makes the following findings and determinations:
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(i) the Bond is not a "private activity bond" within the meaning of
Section 141 of the Code;
(ii) the reasonably anticipated amount of tax-exempt obligations (other than
private activity bonds and other obligations not required to be included in such, calculation)
which the County and any entity subordinate to the County (including any entity that the County
controls, that derives its authority to issue tax-exempt obligations from the County, or that issues
tax-exempt obligations on behalf of the County) will issue during the calendar year in which the
Bond is issued will not exceed $10,000,000;.and
(iii) the amount of tax-exempt obligations, including the Bond, designated by
the County as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the
Code during the calendar year in which the Bond is issued does not exceed $10,000,000.
Section 13. Refunding or Defeasance of the Bond. The County may issue refunding
bonds pursuant to State law or use money available from any other lawful source to carry out a
refunding or defeasance plan, which may include (a) paying when due the principal of and
interest on the Bond (the "defeased Bond"); (b) redeeming the defeased Bond prior to their
maturity; and (c) paying the costs of the refunding or defeasance. If the County sets aside in a
special trust fund or escrow account irrevocably pledged to that redemption or defeasance (the
"trust account"), money and/or Government Obligations maturing at a time or times and bearing
interest in amounts sufficient to redeem, refund or defease the defeased Bond in accordance with
their terms, then all right and interest of the owners of the defeased Bond in the covenants of this
resolution and in the funds and accounts obligated to the payment of the defeased Bond shall
- cease and become void. Thereafter, the owners of defeased Bond shall have the right to receive
payment of the principal of and interest on the defeased Bond solely from the trust account and
the defeased Bond shall be deemed no longer outstanding. In that event, the County may apply
money remaining in any fund or account (other than the trust account) established for the
payment or redemption of the defeased Bond-to any lawful purpose.
Section 14. Refunding of the Refunded Bonds. The City will deposit proceeds of the
Bond with the Fiscal Agent prior to the Redemption Date to carry out the refunding of the
Refunded Bonds. The County will call for redemption on the Redemption Date, all of the
Refunded Bonds at par plus accrued interest. Such call for redemption shall be irrevocable after
the delivery of the proceeds of the Bond to the Fiscal Agent. The Redemption Date is the first
date on which those bonds may be called.
The proper City officials are authorized and directed to give or cause to be given such
notices as required, at the times and in the manner required by Resolution Nos. 45-11 and 51-11,
in order to effect the redemption prior to their maturity of the Refunded Bonds. The County will
work with the Fiscal Agent to give a conditional call notice with respect to the redemption of the
Refunded Bonds prior to June 1, 2021.
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Section 15. Sale and Delivery of the Bond.
(a) Sale of the Bond. The Purchaser has presented Bond Purchase Agreement for
the Bond to the County offering to purchase the Bond under the terms and conditions provided
therein. The Purchaser is not charging a fee for the Bond.
(b) Preparation, Execution and Delivery of the Bond. The Bond will be prepared
at County expense and will be delivered to the Purchaser in accordance with the Bond Purchase
Agreement, this resolution, together with the approving legal opinion of Bond Counsel regarding
the Bond.
Section 16. Reporting Requirements. While the Bond is outstanding, the County shall
submit to the Purchaser its annual financial reports within 30 days after receipt of such annual
financial report from the Washington State Auditor, and such additional information as the
Purchaser may reasonably request.
Section 17. Supplemental and Amendatory Resolutions. The County may supplement
or amend this resolution for any one or more of the following purposes without requiring the
consent of the owner of the Bond:
(a) To. add covenants and agreements that do-not adversely affect the interests of the
beneficial owner of the Bond, or to surrender any right or power reserved to or conferred upon
the County.
(b) To cure any ambiguities, or to cure, correct or supplement any defective provision
contained in this resolution in a manner that does not materially adversely affect the interest of
the beneficial owner of the Bond.
Section 18. General Authorization and Ratification. The County Treasurer and other
appropriate officers of the County are severally authorized to take such actions and to execute
such documents as in their judgment may be necessary or desirable to carry out the transactions
contemplated in connection with this resolution, and to do everything necessary for the prompt
delivery of the Bond to the Purchaser and for the proper application, use and investment of the
bond proceeds. All actions taken prior to the effective date of this resolution in furtherance of the
purposes described in this resolution and not inconsistent with the terms of this resolution are
ratified and confirmed in all respects.
Section 19. Severability. The provisions of this resolution are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all
appeal periods having run, finds any provision of this resolution to be invalid or unenforceable as
to any person or circumstance, such offending provision shall, if feasible, be deemed to be
modified to be within the limits of enforceability or validity. However, if the offending
provision cannot be so modified, it shall be null and void with respect to the particular person or
circumstance, and all other provisions of this resolution in all other respects, and the offending
provision with respect to all other persons and all other circumstances, shall remain valid and
enforceable.
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Section 20. Effective Date of Resolution. This resolution shall be effective
immediately after its adoption in the manner provided by law.
ADOPTED by the Board of County Commissioners of Mason County, Washington at a
regular meeting held on October 20, 2020.
MASON COUNTY, WASHINGTON
By
Chair of the lloard of County Commissioners
By �C
Co ty mmissioner
By
County Co issioner
ATTEST:
Clerk of the and
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EXHIBIT A
DEBT SERVICE SCHEDULES-2021 BOND
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FG:53782598.6
Bond Debt Service
Mason County,Washington
LTGO Refunding Bond,2021(Cashmere Valley Bank)
Dated Date 5/27/2021
Delivery
Date 5/27/2021 J
Period Annual Debt
Ending Principal Interest Rate Interest Debt Service Service
12/1/2021 284,205 1.60% 25,906.83 310,111.83
12/31/2021 310,111.83
6/1/2022 23,070.00 23,070.00
12/1/2022 301,835 1.60% 23,070.00 324,905.00
12/31/2022 347,975.00
6/1/2023 20,655.32 20,655.32
12/1/2023 308,265 1.60% 20,655.32 328,920.32
12/31/2023 349,575.64
6/1/2024 18,189.20 18,189.20
12/1/2024 314,500 1,60% 18,189.20 332,689.20
12/31/2024 350,878.40
6/1/2025 15,673.20 15,673.20
12/1/2025 314,780 1.60% 15,673.20 330,453.20
12/31/2025 346,126.40
6/1/2026 16,854.79 16,854.79
j 12/1/2026 317,125 2.05% 16,854.79 333,979.79
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12/31/2026 350,834.58
6/1/2027 13,604.26 13,604.26
12/1/2027 322,425 2.05% 13,604.26 336,029.26
12/31/2027 349,633.52
6/1/2028 10,299.41 10,299.41
12/1/2028 327,485 2.05% 10,299.41 337,784.41
12/31/2028 348,083.82
6/1/2029 6,942.68 6,942.68
12/1/2029 336,870 2.05% 6,942.68 343,812.68
12/31/2029 350,755.36
6/1/2030 3,489.77 3,489.77
12/1/2030 340,465 2.05% 3,489.77 343,954.77
12/31/2030 347,444.54
3,167,955 283,464.09 3,451,419.09 3,451,419.09
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FG:53782598.6
n
CERTIFICATION
I, the undersigned, Clerk of the Board of Commissioners of Mason County, Washington
(herein called the "County") and keeper of the records of the Board of Commissioners of the
County (herein called the "Board"), DO HEREBY CERTIFY:
1. That the attached Resolution is a true and correct copy of Resolution No. 20
of the County (herein called the "Resolution"), as finally passed at a regular meeting of the
Board of the County held on the 201h day of October, 2020, and duly recorded in my office.
2. That said.meeting was duly convened and held in all respects in accordance with
law (including Proclamation 20-28 made by the Governor of the State of Washington on
March 24, 2020, as extended, and acts of the legislative leadership of the State of Washington)
and to the extent required by law, due and proper notice of such meeting was given; that a
quorum of the Board was present throughout the meeting and a legally sufficient number of
members of the Board voted in the proper manner for the passage of said Resolution; that all
other requirements and proceedings incident to the proper adoption or passage of said Resolution
have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute
this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the County this 201h day of October, 2020.
CIA oft e Board
FG:53782598.5
TABLE OF CONTENTS
Mason County,Washington
Limited Tax General Obligation Refunding Bond
Final as of October 13,2020
Report Page
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . 2
Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Bond Summary Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Bond Pricing . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 5
Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . 8
Unrefunded Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . 9
Escrow Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Escrow Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Escrow Sufficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Form 8038 Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Cost of Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
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Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020)
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SOURCES AND USES OF FUNDS
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Dated Date 05/27/2021
Delivery Date 05/27/2021
Sources:
Bond Proceeds:
Par Amount 3,167,955.00
3,167,955.00
Uses:
Refunding Escrow Deposits:
Cash Deposit 3,160,000.00
Delivery Date Expenses:
Cost of Issuance 7,950.60
Other Uses of Funds:
Additional Proceeds 4.40
3,167,955.00
Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 1
SUMMARY OF REFUNDING RESULTS
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Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Dated Date 05/27/2021
Delivery Date 05/27/2021
Arbitrage yield 1.730770%
Escrow yield 0.000000%
Value of Negative Arbitrage
Bond Par Amount 3,167,955.00
True Interest Cost 1.730770%
Net Interest Cost 1.737777%
All-In TIC 1.782495%
Average Coupon 1.737777%
Average Life 5.149
Paramount of refunded bonds 3,160,000.00
Average coupon of refunded bonds 3.582850%
Average life of refunded bonds 5.279
PV of prior debt to 05/27/2021 @ 1.730770% 3,448,275.38
Net PV Savings 280,324.78
Percentage savings of refunded bonds 8.871037%
Percentage savings of refunding bonds 8.848761%
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Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 2
SAVINGS
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Present Value
Prior Refunding to 05/27/2021
Date Debt Service Debt Service Savings @ 1.7307702%
12/31/2021 329,008.13 310,111.83 18,896.30 18,730.59
12/31/2022 379,766.26 347,975.00 31,791.26 31,200.13
12/31/2023 381,366.26 349,575.64 31,790.62 30,651.65
12/31/2024 382,666.26 350,878.40 31,787.86 30,110.01
12/31/2025 377,916.26 346,126.40 31,789.86 29,578.52
12/31/2026 382,622.50 350,834.58 31,787.92 29,021.59
12/31/2027 381,422.50 349,633.52 31,788.98 28,508.51
12/31/2028 379,872.50 348,083.82 31,788.68 28,002.38
12/31/2029 382,547.50 350,755.36 31,792.14 27,505.96
12/31/2030 379,235.00 347,444.54 31,790.46 27,011.05
3,756,423.17 3,451,419.09 305,004.08 280,320.38
Savings Summary
PV of savings from cash flow 280,320.38
Plus:Refunding funds on hand 4.40
Net PV Savings 280,324.79
Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 3
BOND SUMMARY STATISTICS
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Earliest Dated Date 05/27/2021
Earliest Delivery Date 05/27/2021
Last Maturity 12/01/2030
Arbitrage Yield 1.730770%
True Interest Cost(TIC) 1.730770%
Net Interest Cost(NIC) 1.737777%
All-In TIC 1.782495%
Average Coupon 1.737777%
Average Life(years) 5.149
Weighted Average Maturity(years) 5.149
Par Amount 3,167,955.00
Bond Proceeds 3,167,955.00
Total Interest 283,464.09
Net Interest 283,464.09
Total Debt Service 3,451,419.09
Maximum Annual Debt Service 350,878.40
Average Annual Debt Service 362,882.85
Underwriter's Fees(per$1000)
Average Takedown
Other Fee
' Total Underwriter's Discount
Bid Price 100.000000
Par Average Average PV of 1 by
Bond Component Value Price Coupon - Life change
Bank Loan 3,167,955.00 100.000 1.738% 5.149 1,532.39
3,167,955.00 5.149 1,532.39
All-In Arbitrage
TIC TIC Yield
Par Value 3,167,955.00 3,167,955.00 3,167,955.00
+Accrued Interest
+Premium(Discount)
Underwriter's Discount
Cost of Issuance Expense -7,950.60
-Other Amounts
Target Value 3,167,955.00 3,160,004.40 3,167,955.00
Target Date Multiple Multiple Multiple
Yield 1.730770% 1.782495% 1.730770%
Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 4
BOND PRICING .
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Maturity
Bond Component Date Amount Rate Yield Price
Bank Loan:
12/01/2021 284,205 1.600% 100.000
12/01/2022 301,835 1.600% 100.000
12/01/2023 308,265 1.600% 100.000
12/01/2024 314,500 1.600% 100.000
12/01/2025 314,780 1.600% 100.000
12/01/2026 317,125 1.679% 100.000
12/01/2027 322,425 1.733% 100.000
12/01/2028 327,485 1.773% 100.000
12/01/2029 336,870 1.803% 100.000
12/01/2030 340,465 1.827% 100.000
3,167,955
Dated Date 05/27/2021
Delivery Date 05/27/2021
First Coupon 12/01/2021
Par Amount 3,167,955.00
r Original Issue Discount
--= Production 3,167,955.00 100.000000%
Underwriter's Discount
Purchase Price 3,167,955:00 100.000000%
Accrued Interest
Net Proceeds 3,167,955.00
Notes:
1.60%.from 5/27/2021 to 12/1/2025
._ 2.05%from 12/1/2025 to 12/1/2030
Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 5
BOND DEBT SERVICE
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Dated Date 05/27/2021
Delivery Date 05/27/2021
Period
Ending Principal Interest Debt Service
12/31/2021 284,205 25,906.83 310,111.83
12/31/2022 301,835 46,140.00 347,975.00
12/31/2023 308,265 41,310.64 349,575.64
12/31/2024 314,500 36,378.40 350,878.40
12/31/2025 314,780 31,346.40 346,126.40
12/31/2026 317,125 33,709.58 350,834.58
12/31/2027 322,425 27,208.52 349,633.52
12/31/2028 327,485 20,598.82 348,083.82
12/31/2029 336,870 13,885.36 350,755.36
12/31/2030 340,465 . 6,979.54 347,444.54
3,167,955 283,464.09 3,451,419.09
Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 6
BOND DEBT SERVICE
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Dated Date 05/27/2021
Delivery Date 05/27/2021
Period Annual
Ending Principal Interest Debt Service Debt Service
12/01/2021 284,205 25,906.83 310,111.83
12/31/2021 310,111.83
06/01/2022 23,070.00 23,070.00
12/01/2022 301,835 23,070.00 324,905.00
12/31/2022 347,975.00
06/01/2023 20,655.32 20,655.32
12/01/2023 308,265 20,655.32 328,920.32
12/31/2023 349,575.64
06/01/2024 18,189.20 18,189.20
12/01/2024 314,500 18,189.20 332,689.20
12/31/2024 350,878.40
06/01/2025 15,673.20 15,673.20
12/01/2025 314,780 15,673.20 330,453.20
12/31/2025 346,126.40
06/01/2026 16,854.79 16,854.79
12/01/2026 317,125 16,854.79 333,979.79
_ 12/31/2026 350,834.58
06/01/2027 13,604.26 13,604.26
12/01/2027 322,425 13,604.26 336,029.26
12/31/2027 349,633.52
06/01/2028 10,299.41 10,299.41
12/01/2028 327,485 10,299.41 337,784.41
12/31/2028 348,083.82
06/01/2029 6,942.68 6,942.68
12/01/2029 336,870 6,942.68 343,812.68
12/31/2029 350,755.36
06/01/2030 3,489.77 3,489.77
12/01/2030 340,465 3,489.77 343,954.77
12/31/2030 347,444.54
3,167,955 283,464.09 3,451,419.09 3,451,419.09
Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 7
SUMMARY OF BONDS REFUNDED
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
LTGO Bonds,2011(Sterne,Agee&Leach,Inc.),LTGO11:
SERIAL 12/01/2021 3.000% 275,000.00 06/01/2021 100.000
12/01/2022 3.000% 280,000.00 06/01/2021 100.000
12/01/2023 3.000% 290,000.00 06/01/2021 100.000
12/01/2024 3.250% 300,000.00 06/01/2021 100.000
12/01/2025 3.375% 305,000.00 06/01/2021 100.000
12/01/2026 3.500% 320,000.00 06/01/2021 100.000
12/01/2027 3.500% 330,000.00 06/01/2021 100.000
12/01/2028 3.625% 340,000.00 06/01/2021 100.000
12/01/2029 3.750% 355,000.00 06/01/2021 100.000
12/01/2030 3.900% 365,000.00 06/01/2021 100.000
3,160,000.00
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Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 8
UNREFUNDED BOND DEBT SERVICE
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Annual Other
Period Debt Debt Unrefunded
Ending Principal Interest Service Service D/S Total
12/01/2020 54,008.13 54,008.13
06/01/2021 54,008.13 54,008.13
0 0 0 0 108,016.26 108,016.26
Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 9
ESCROW REQUIREMENTS
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Period Principal
Ending Redeemed Total
06/01/2021 3,160,000.00 3,160,000.00
3,160,000.00 3,160,000.00
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Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 10
ESCROW COST
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Purchase Cost of Cash Total
Date Securities Deposit Escrow Cost
05/27/2021 3,160,000.00 3,160,000.00
0 3,160,000.00 3,160,000.00
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Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 11
ESCROW SUFFICIENCY
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Escrow Net Escrow Excess Excess
Date Requirement Receipts Receipts Balance
05/27/2021 3,160,000.00 3,160,000.00 3,160,000.00
06/01/2021 3,160,000.00 -3,160,000.00
3,160,000.00 3,160,000.00 0.00
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Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 12
FORM 8038 STATISTICS
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Dated Date 05/27/2021
Delivery Date 05/27/2021
Redemption
Bond Component Date Principal Coupon Price Issue Price at Maturity
Bank Loan:
12/01/2021 284,205.00 0.000% 100.000 284,205.00 284,205.00
12/01/2022 301,835.00 0.000% 100.000 301,835.00 301,835.00
12/01/2023 308,265.00 0.000% 100.000 308,265.00 308,265.00
12/01/2024 314,500.00 0.000% 100.000 314,500.00 314,500.00
12/01/2025 314,780.00 0.000% 100.000 314,780.00 314,780.00
12/01/2026 317,125.00 0.000% 100.000 317,125.00 317,125.00
12/01/2027 322,425.00 0.000% 100.000 322,425.00 322,425.00
12/01/2028 327,485.00 0.000% 100.000 327,485.00 327,485.00
12/01/2029 336,870.00 0.000% 100.000 336,870.00 336,870.00
12/01/2030 340,465.00 0.000% 100.000 340,465.00 340,465.00
3,167,955.00 3,167,955.00 3,167,955.00
Stated Weighted
Maturity Interest Issue Redemption Average
Date Rate Price at Maturity Maturity Yield
Final Maturity 12/01/2030 340,465.00 340,465.00
Entire Issue 3,167,955.00 3,167,955.00 5.1490 1.7308%
Proceeds used for accrued interest 0.00
Proceeds used for bond issuance costs(including underwriters'discount) 7,950.60
Proceeds used for credit enhancement 0.00
Proceeds allocated to reasonably required reserve or replacement fund 0.00
Proceeds used to refund prior tax-exempt bonds 3,160,000.00
Proceeds used to refund prior taxable bonds 0.00
Remaining WAM of prior tax-exempt bonds(years) 5.2597
Remaining WAM of prior taxable bonds(years) 0.0000
Last call date of refunded tax-exempt bonds 06/01/2021
2011 Form 8038 Statistics
Proceeds used to currently refund prior issues 3,160,000.00
Proceeds used to advance refund prior issues 0.00
Remaining weighted average maturity of the bonds to be currently refunded 5.2597
Remaining weighted average maturity of the bonds to be advance refunded 0.0000
Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 13
FORM 8038 STATISTICS
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Refunded Bonds
Bond
Component Date Principal Coupon Price Issue Price
LTGO Bonds,2011(Sterne,Agee&Leach,Inc.):
SERIAL 12/01/2021 275,000.00 3.000% 102.127 280,849.25
SERIAL 12/01/2022 280,000.00 3.000% 100.000 280,000.00
SERIAL 12/01/2023 290,000.00 3.000% 98.480 285,592.00
SERIAL 12/01/2024 300,000.00 3.250% 100.000 300,000.00
SERIAL 12/01/2025 305,000.00 3.375% 99.156 302,425.80
SERIAL 12/01/2026 320,000.00 3.500% 99.410 318,112.00
SERIAL 12/01/2027 330,000.00 3.500% 98.167 323,951.10
SERIAL 12/01/2028 340,000.00 3.625% 98.417 334,617.80
SERIAL 12/01/2029 355,000.00 3.750% 98.692 350,356.60
SERIAL 12/01/2030 365,000.00 3.900% 99.325 362,536.25
3,160,000.00 3,138,440.80
Remaining
Last Weighted
Call Issue Average
✓ Date Date Maturity
LTGO Bonds,2011(Sterne,Agee&Leach,Inc.) 06/01/2021 08/23/2011 5.2597
All Refunded Issues 06/01/2021 5.2597
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Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 14
(�} -COST OF ISSUANCE
Mason County,Washington
Limited Tax General Obligation Refunding Bond,2021(Cashmere Valley Bank)
Cost of Issuance $/1000 Amount
Foster Garvey P.C.(Bond Counsel) 1.21686 3,854.97
Northwest Municipal Advisors(Financial Advisor) 1.29283 4,095.63
2.50969 7,950.60
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Oct 13,2020 2:54 pm Prepared by Northwest Municipal Advisors (Finance 8.500 Mason County:REF2020) Page 15