HomeMy WebLinkAbout11/19/97 AGENDABREMERTON CITY COUNCIL
239 4TH STREET
BREMERTON, WA 98337
CITY COUNCIL AGENDA
NOVEMBER 19, 1997
CITY COUNCIL STUDY SESSION: 5:00 - 5:30 P.M.
A. General Council Business
CALL TO ORDER: 5:30 P.M.
A. Pledge Of Allegiance
B. Invocation
CONSENT AGENDA
Items listed below have been distributed to Council members in advance for study
and will be enacted by one motion. If separate discussion is desired on an item, it
may be removed from the Consent Agenda and placed on the Regular Agenda at
the request of a Council member.
A. Minutes - November 12, 1997 #AB97-245
4. CLAIMS/CHECK REGISTERS
5. COUNCIL MEMBER REPORTS
6. MAYOR'S REPORT
7. PUBLIC RECOGNITION - (Comments Limited to 3 Minutes)
o
NEW BUSINESS
A. Extension Of Contract For Banking Services With Seafirst
#AB97-246 ,.~
(CONTINUED NEXT PAGE)
RESOLUTIONS
A. Resolution #2633, Naming The City Building At 612 Fifth St.
For "Reverend Martin Luther King, Junior"
#AB97-247 -~
10.
ORDINANCES
A. Ordinance #4614 (Second Reading)Authorizing The Issue
Of 1997 UTGO Refunding Bonds And Accepting The
Purchase Offer Of Seafirst Bank
#AB97-243 [ O
//.
1. SUBJECT':.
AGENDA BILL
BREMERTON CITY COUNCIL
MINUTES - NOVEMBER 12, 1997
FOR AGENDA OF:
ORIGINATING DEPT:
ORIGINATOR:
DATE SUBMITTED:
11-19-97
City Council
David Farr, President
2. ~~l~: (comment on back
if necessary)
NOTE: Minutes will be distributed on Monday,
November 17, 1997.
ENDORSEMENT INFORMATION
MAYOR
APPROVED BY COUNCIL ~ES~ FOR SUBMITTAL:
COUNCIL PRESIDENT % ~~~
4. SUM/4ARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION:
8. RECOMMENDATION:
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIAL:
.EXPIRATION DATE:
REVIEW DATE:
PULLED TABLED
COUNCIL DIRECTIVe:
10. NOTICE OF ACTION
APPROVED ,DISAPPROVED
AMENDED
2. CLEARANCE COMMENTS :. · -
~ .',LrMPACTON NON-PASSAGE:
.STAFFING, BUDGETS. FACILITIES. EOUIPMENT OR OTHER RESOURCES:
CITY COUCIL MEETING MINUTES
NOVEMBER 12, 1997
The regular meeting of the City Council of the City of Bremerton was called to
order in the City Council Chambers, 239 4th Street, Bremerton, Washington,
Wednesday, November 12, 1997, at 5:30 P.M., with Council President David Farr
presiding. Council members present were Carlos Montgomery, Bob Winters,
Sherril Huff-Menees, Richard Neville, John Law, Cecil McConnell, and Al Colvin.
Councilman Lon Overson was absent. Also present were City Attorney lan
Sievers and Deputy City Clerk Paula Johnston.
The meeting opened with the Pledge of Allegiance led by Council President Farr
and invocation given by Reverend Cleveland Williams of Ebenezer A.M.E.
Church.
President Farr made the following announcements:
(1) The City Council held a Study Session prior to the Council meeting. The
topic of that meeting was a presentation by the Grace A Bremerton
Firefighter Group (demonstration of life saving equipment), which will also be
presented on Inside Bremerton and broadcast over TCI Channel 12.
(2) The City Council will hold Study Sessions, starting at 5:30 P.M., to discuss
the proposed 1998 Budget on November 17, 18, 20, and 24.
CONSENT AGENDA
A. Minutes of Meeting - October 15, 1997
#AB97-231
#0037 MISICIU(NevillelMontgomery) Motion to approve the Consent Agenda as
presented.
CLAIMS/CHECK REGISTERS
Vouchers audited and certified by the auditing officer as required by RCW
42.24.080, and those expense reimbursement claims certified as required by
RCW 42.24.090, have been recorded on a listing that had been made available
to the Council
#0054 MISlCIU(ColvinlMontgomery) On November 12, 1997, the Council does
approve for payment those vouchers included and further described as follows:
214372 through 214437 in the amount of $171,515.20.
COUNCIL MEMBER REPORTS
Mr. Winters quoted from the Bremerton-Kitsap County Health District Press
Release issued on October 21, 1997, wherein it alerted the public that the
blue/green algae bloom at Kitsap Lake has been determined to not be toxic and
TAPE #1502
City Council Reg. Mtg. Minutes
November 12, 1997
Page 3 of 11
President Farr thanked the TV crew: Robert Neal, Kelly Gardner, Juanita
Belcher and Shawn Dority. He also reported that the City Council meeting will be
broadcast for the first time over new fiber optic lines, which should improve the
transmission quality.
MAYOR'S REPORT
In the absence of the Mayor, Medlynn Erhart, City Council Legislative Assistant,
read the following Proclamation:
(1) November 16, 1997, as EBENEZER A.M.E. CHURCH 85TM ANNIVERSARY,
which was accepted by Reverend Cleveland Williams and members of the
congregation. Reverend Cleveland Williams invited the public to attend
their celebration on November 16 at 4:00 P.M.
PUBLIC RECOGNITION
Susan Brown, Bremerton resident, announced she filed a formal complaint
involving Council members David Farr and Sherril Huff-Menees with the City
Council Office on November 10. President Farr acknowledged receipt of Mrs.
Brown's complaint and noted the Bremerton Municipal Code includes warnings
about confidentiality in such cases. He asked the City Attorney too address that
issue. Mrs. Brown agreed with President's Fan- statement about confidentiality
regarding the complaint; however, she did not believe it applied to what she was
doing, lan Sievers, City Attorney, stated Mrs. Brown could talk about the fact of
filing a complaint, but not its substance or merits. Mrs. Brown stated at this
point, according to the enforcement section of the Code of Ethics, all remaining
elected officials shall sit on a committee of the whole to make a determination if a
violation has occurred. She believes the City Attorney's objectivity has been
compromised by his involvement to this point. She questioned what Council will
be doing for legal advice from an impartial party? She will continue to research
the issue of ethics. Since she will not be able to keep the issue visible at City
Council meetings, she urged Council to act on her complaint immediately and not
let it appear that it is being "swept under the rug" with no action taken.
Reverend Cleveland Williams, on behalf of the Ebenezer A.M.E. Church,
thanked all of the members and citizens of Kitsap County and City of Bremerton
for being kind and gracious enough to allow their church to continue to serve this
community for 85 years.
Deputy city Clerk Paul Johnston read the following letter addressed to
President David Fan', Council members and Bremerton voters, into the record: "1
would like to congratulate the newly elected and re-elected Council persons and
Mayor Horton. So, the election is over, yet there is a lingering issue that I believe
has been misrepresented by a few individuals and voters deserve a clarification.
Because several Council members chose to endorse Mr. Law's opponent, this
action has been construed by a few individuals as somehow being unethical and
unfair. This is absolutely untrue. Ever since the implementation of the Council
TAPE #1502
City Council Reg. Mtg. Minutes
November 12, 1997
Page 5 of 11
The proposal is an agreement between several Public Works organizations
within the State to allow for mutual aid during serious, emergency or major
disaster situations. The agreement has been approved through the State
Attorney General's Office for format and content and provisions are included
which allow for each organization to add or delete items to suit their unique
needs.
Paul Lucas, Public Works and utilities Department, stated this agreement will
allow the City of Bremerton to draw on assets from other organizations and
municipalities throughout the State in times of emergency or disaster and at the
same time allow them to draw upon the City's assets under such circumstances.
He noted this kind of agreement was developed through statewide effort through
the Department of Transportation. Language is included that will allow the City to
make arrangements outside of the agreement to cover the risk management side
for equipment and personnel.
Public comment - None
Mr. Neville referenced the list of Emergency Response - Mutual Aid Agreement
Task Force members and questioned the definition of the term "CRAB". Mr,
Lucas stated CRAB stands for County Road Administration Board.
Mr. Colvin commended the Public Works Department for saving the City money
through cooperative efforts with other agencies and municipalities.
#0978 MISICIU(VVintersAllontgomery) Motion to approve the City's Department
of Public Works and Utilities to enter into this agreement with other similar
organizations within the State and authorize the Mayor to sign the agreement for
the City.
8C - TELECOMMUNICATIONS TOWER LEASE WITH PAGENET OF
SEATTLE, #AB97-242
PageNet of Seattle has proposed locating paging equipment and antenna on the
City owned tower located at Cheryl Street at the site vacated by the Coast
Guard, which is on Utility property. The proposed lease is for three years with
one additional three-year option. Lease compensation would start at $550 per
month with provisions for increases if PageNet expands capacity.
Kathleen McCluskey, Director of Administrative Services, explained the Coast
Guard originally built the site and the City took over ownership under the
agreement with them when they vacated the site. This tower has a great deal of
capacity within the equipment room and tower. If the proposed lease is
approved, PageNet will join the current tenant - AT&T Wireless. The proposed
lease has many of the provisions that were included in the Telecommunication
Ordinance that is being developed. Specific provisions provide for a pre-
TAPE #1502
City Council Reg. Mtg. Minutes
November 12, 1997
Page 7 of 11
Mr. Neville questioned the actual number of antennas on the tower, as shown on
the Agenda packet information? Ms. McCluskey stated the information shown
on the tower sheet identifies other antennas owned by other companies. It is her
understanding that PageNet will be installing 1-~ terminals in the equipment
room and two antennas.
#1273 MISIClU(MontgomerylMcConnell) Motion to approve a three-year lease
with PageNet to locate on the City tower at Cheryl Street.
9A- ORDINANCE (FIRST READING) AUTHORIZING THE ISSUE OF 1997
UTGO REFUNDING BONDS AND ACCEPTING THE PURCHASE OFFER OF
SEAFIRST BANK~ #AB97-243
The City currently has outstanding $1,430,000 from an original issue of
$1,850,000 voter-approved General Obligation Bonds, which were originally
issued in 1991. Due to recent declines in interest rates, the City can achieve
savings of approximately $65,000 or 4.5% of the outstanding bonds by
refinancing this debt. The savings are calculated on a net present value basis
and will be realized over life of the bond issue, which runs until 2006.
Rich Hanna, City Treasurer, pointed out UTGO stands for Unlimited Tax
General Obligation, which are bonds that have been approved by the voters and
are paid off by excess property tax levies over and above the City's M&O levy.
Since these bonds were sold, interest rates have declined, particularily within the
last few months. Under present market conditions, a savings of approximately
$65,000 can be realized, which is not an enormous amount of money, but is well
worth taking this action. It represents approximately 5% of the outstanding
bonds to be refinanced under this proposal. A 5% savings is a very reasonable
basis for undertaking the cost associated with this action.
The proposed ordinance was prepared by the City's Bond Counsel and the
critical items, i.e. interest rates are represented by blanks in the draft ordinance
as is the usual practice by the Council to not do debt issues utilizing Emergency
Ordinances. By necessity, Council is shown the form of the Bond Ordinance and
assuming Council approves it on first reading, he will proceed with a pricing of
the bonds on November 18 and 19, and based on that a conditional commitment
will be made to the bank conditioned upon passage of the ordinance on second
ready.
Public comment - none.
Mr. Law asked if Mr. Hanna was reviewing the City's bond portfolio or was this
the only one being handled in this manner?. Mr. Hanna stated he has already
looked at all of the outstanding bonds and under the current market conditions
this is the only issue that pencils out to the City's advantage. Mr. Law
questioned the reasoning behind the City going for an "A" rather than "AAA"
TAPE #1502
City Council Reg. Mtg. Minutes
November 12, 1997
Page 9 of 11
literature during the recent election period that stated someone was working to
raise property taxes. Rich Hanna, City Treasurer, stated a lengthy discussion
was held regarding Referendum 47 as well as the EMS measure, both relating
to property taxes, - one state wide and the other limited to the City of Bremerton.
Both of those measures were on the ballot and both were approved by the
voters. It appears there is some conflicting actions whereby the voters state wide
approved Referendum 47 lowering the State's tax levy and putting some
additional constraints on local City Councils and commissions to levy property
taxes and at the same time the voters approved the EMS measure increasing
that levy from 25 cents to 50 cents per thousand. He noted with the proposed
tax increase, the City would be levying the virtually identical rate that was levied
in 1997. Because of increases in the assessed valuation, which is a function of
home construction and inflation on existing property, the overall property tax
revenue to the City will increase. The rate of increase in that revenue is
approximately 2.4%. The rate of increase in the City's tax levy on the M&O is
approximately 1110th of one percent, the Fire Bond is currently budgeted to the
levy rate - 1% % greater than what was levied in 1997, which was approved by
the voters in 1979 and 1991. He pointed out that does not include the savings
represented by the Agenda Bill that was dealt with earlier in this meeting. Mr,
Lonq stated that explanation sounded logical, but it does not make sense to him.
His property taxes are going up; however, as a property owner he is tapped out
financially. His annual income does not increase at a rate where he could meet
the increased property taxes; it will mean a considerable strain on his budget.
He strongly urged Council to consider his concern on this issue.
Mr. Montqomery stated the Council does not have much control over the
valuation of property and the proposed tax rates are identical to what was levied
in 1997. If people want taxes lowered, he questioned which services did they
want eliminated? He urged Mr. Long to talk with the County Assessor about their
raising his assessed valuation.
Mr. Colvin stated many senior citizens on fixed incomes are concerned that
they will be taxed out of their homes. He did not have the solution to the problem
and he assured the public that point is taken into consideration.
President Farr stated he sympathized with Mr. Long and as a retired property
owner everyone is feeling the pinch of taxes. The City is trying to stimulate some
growth and revitalization downtown to increase the tax base, which would take
the pressure off property tax and generate some B&O and sales tax.
#2263 MISIClU(MontgomerylHuff-Menees) Motion to pass Ordinance No. 4613,
on second reading, levying taxes for collection in 1998.
TAPE #1502
City Council Reg. Mtg. Minutes
November 12, 1997
Page 11 of 11
DAVID FARR, City Council President
City of Bremerton
P J/DF/me
Cc: Normal Distribution
FileJault
AGENDA BILL
BREMERTON CITY COUNCIL
EXTENSION OF CONTRACT FOR
BANKING SERVICES WITH SEAFIRST BANK
FOR AGENDA OF: NOV. 19, 1997
ORIGINATING DEPT.: TREASURER
ORIGINATOR: R. HANNA
DATE SUBMITTED: Nov. 3, 1997
2. CLEARANCEs ~mment of back if necessary)
DIR. ADMIN. SER."'~X~.'4', ~ (.-~'
FISCAL AND BUDGET COMM.L_.~.-.~
3. EXHIBITS:
OFFER LETTER FROM SEAFIRST
ENDORSEMENTS ~ RMATION
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION;
The current contract for banking services is with Seafirst Bank and dates from October 1, 1992. The original three
year contract was extended with Council authorization to Nov. 30, 19E'.'_/. Seafirst has offered to extend the contract
for a period of two years with no change in pricing. This represents a cumulative change in the price of bank services
of approximately 2.1% over a period of seven years. Staff recommends approval of the contract extension..
8. RECOMMENDATION;
Motion to authorize the Mayor or her designee to sign the extension of the contract with Seafirst Bank.
9. RESPONSIBLE OFFICIAL: Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: Nov. 30, 1999
REVIEW DATE: N/A
PULLED
COUNCIL DIRECTIVE:
TABLED
10. NOTICE OF ACTION
APPROVED
DISAPPROVED
11.
AMENDED
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The City will attempt further contract negotiations or will re-bid banking sen/ices.
6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES:
None
7. RESEARCH SOURCES:
Contract files.
Kerrin M. Gibbons
Vice President
Public Sector Banking
October 23, 1997
Rich Hanna
City Treasurer
City of Bremerton
293 4th Street
Bremerton, WA 98310
Dear Rich:
Seafirst ('Bank') is pleased to offer to renew the City's banking services contract for two years,
at the existing price level. Prices for banking services have not increased since our 1995 contract
was finalized, and, at that time prices were lower than our 1992 bid.
As a cost savings, we recommend the City consider receiving fax or terminal notification of
incoming wires. Currently the City receives a phone notification of incoming wires at a cost of
$4.00 per notification. The fax notification fee is $3.00, while the terminal notification is
available at no charge. As an example, during the month of July, the City received three phone
notifications.
Existing banking services include custody and safekeeping services through our alliance with
BNY Western Trust Company ('BNY'). Seafirst continues to act as an ombudsman, providing
oversight for custody services provided, at no charge to the City. This arrangement also allows
the City the option of paying for custody services with soft dollars.
BNY has notified the Bank of a price change in their existing fee stracture for public bodies.
The revised fee schedule will increase the minimum fee to $1500.00, per quarter, which is a
significant increase for the City of Bremerton. We anticipate the City will find this price
increase unsatisfactory, and believe there are several alternatives to using BNY for third party
safekeeping.
One, securities may be safekept where they were purchased. For instance, any securities
purchased through Seafirst Capital Markets will be safekept at no charge. This service seems to
be a common practice at other investment houses. This would not however allow for
safekeeping at Seafirst of investments purchased elsewhere. Two, there may be other providers
of third party safekeeping with a fee schedule more appropriate for the size and activity level of
Seafirst Bank 800 Fifth Avenue, Floor 34/Post Office Box 34662/Seattle, Washington 98124-1662
Telephone (206) 358-8175 Telefax (206) 358-8818
City of Bremerton
October 23, 1997
the City's investment portfolio. If the City would like to implement this alternative, Seafirst will
allow the City to pay custody service fees with soft dollars, to a custodian other than BNY, but
without the oversight process that we currently provide.
In any event, as part of our banking services agreement, since the fee structure proposed by BNY
represents such a significant increase to the City, Seafirst proposes the City continue paying fees
to BNY based on their existing pricing structure, and Seafirst will compensate BNY for their
proposed fee schedule through December, 1998. It is our expectation that an alternative custody
arrangement, satisfactory to the City, can be developed on or before December 1998.
On behalf of your "team" here at Seafirst, let me say we would very much like to continue
providing banking services'for the City of Bremerton and believe we can meet your needs now
and in the future.
I look forward to hearing fi:om you.
Sincerely,
e~nM. Gibb~4~(~' ons
Extension of the existing banking services contract for a two year period fi:om December 1, 1997
through November 30, 1999.
AGREED & ACCEPTED TH~S
DAY OF
City of Bremerton:
By:
Its:
Seafirst Bank 800 Fifth Avenue, Floor 34/Post Office Box 34662/Seattle, Washington 98124-1662
Telephone (206) 358-8175 Telefax (206) 358-8818
AGENDA BILL
BREMERTON CITY COUNCIL
SUBJECT: Resolution #~ ~
Naming the City building at
612 Fifth Street for "Reverend
Martin Luther King, Jr.'
FOR AGENDA OF: 11/19/97
ORIGINATING DEPT: Executiv~
ORIGINATOR: Mayor Horton
DATE SUBMITTED: 11/10/97
(comment on back
if necessary)
Resolution
ENDORSEMENT ~ I~~TION
YOR 4-
APPROVED BY COUNCIL PRESIDENT ~ITTAL:
COUNCIL PRESIDENT._~~.
4. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION:
The attached Resolution names the 612 5th Street building in honor of
Reverend Dr. Martin Luther King, Jr. This building is home to the Kitsap
Regional Library, Bremerton branch.
RECOMMENDATION:
Motion to pass Resolution ~/2633, naming the City building at 612 Fifth Street for
"Reverend Martin Luther King, Junior".
RESPONSIBLE OFFICIAL: Executiv9
ENFORCEMENT OFFICIAL: N/A
EXPIRATION DATE: N/A
REVIEW DATE: N/A
PULLED TABLED
COUNCIL DIRECTIVE:
10. NOTICE OF ACTION
APPROVED DISAPPROVED
DATE:
11.
AGENDA BILL NO:
-/
2. CLEARANCE COMMENTS (cont,):
4. SUMMARY STATEMENT (cont.):
Sm
IMPACT ON NON-PASSAGE:
N/A
IMPACT ON STAFFING~ BUDGETS, FACILITIES~ EOUIPMENT OR OTHER RESOURCF~
None
e
RESEARCH SOURCES:
Petitioned by 15 community organizations
RESOLUTION NO. ~
A RESOLUTION naming the city building at 612 Fifth Street for
'Reverend Marb'n Luther lOng, Junior.'
WHEREAS, Reverend Martin Luther King, Jr. lived in pursuit of a dream for freedom,
equality and dignity for all races; and
WHEREAS, he is known as the leader of the Civil Rights Movement which inspired
Congress to grant all Americans an equal right to vote, the right to use public facilities and the
right to receive a public education; and
WHEREAS, King was a nominee for the Nobel Peace Prize for contributing worldwide to
the furtherance of peace among mankind, and
WHEREAS, King stressed that all people should be treated with respect and use
peaceful resolutions and voting rather than violence, thereby ending years of oppression; and
WHEREAS, the city building located at 612 Fifth Street is home to the Kitsap Regional
Ubrary Bremerton Branch and provides a service for people of all races, religions and economic
levels; and
WHEREAS, the library offers a myriad of services for people with a multitude of special
needs in the spirit of Dr. King's work; and
WHEREAS, the library building was built in the same era as the Civil Rights Movement
and is an appropriate gathering place for groups and individuals to pay tribute to the belief in
equality, freedom and humanity; and
WHEREAS, after considering the requests from over fifteen community organizations and
a resolution from the Board of Directors of the Kitsap Regional Ubrary; now therefore,
BE IT RESOLVED by the City Council of the City of Bremerton that the city building
located at 612 Fifth Street be named the 'Rev. Dr. Martin Luther King, Jr. Building.'
PASSED by the City Council of the City of Bremerton this 20th day of November, 1997.
APPROVED this day of ,1997.
David Farr
City Council President
ATTEST:
Kathleen McCluskey, City Clerk
Lynn Horton, Mayor
AGENDA BILL
BREMERTON CITY COUNCIL
1, ~UBJECT: ORDINANCE NO. "~'/~'/Y
AUTHORIZING THE ISSUE OF 1997 UTGO REFUNDING BONDS .
AND ACCEPTING THE PURCHASE OFFER OF SEAFIRST BANK
FOR AGENDA OF: Cc;. ~., ~ ;;7 '
ORIGINATING DEPT: Treasurer
ORIGINATOR: R. Hanna
DATE SUBMI~ED: O~. 6, 1997
2. CLEARANCES: Comment of back if necessary)
Dir. Admin. Services
City Attorney
Council Fiscal & Budget
ENDORSEMENTS
INFORMATION
3. EXHIBITS:
Proposed Ordinance
Savings Analysis
Official Statement
APPROVED BY COUNCIL PRESIDENT FOR SUBMITTA
COUNCIL PRESIDENT
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
The City currently has outstanding $1,430,000 from an orriginal issue of $1.,850,000 voter-approved general obligation
bonds which were orriginally issued in 1991. Due to recent declines in interest rates, the City can achieve a savings of
approximately $65,000 or 4.5% of the outstanding bonds by refinancing this debt. The savings are calculated on a net
present value basis and will be realized over life of the bond issue which runs until 2006.
8. RECOMMENDATION:
MCTICN TO AFFF, OVE ON FIRST F, EADiNG.
~RD',;,'A,%'C," "~'
MOTION TO PASS ON SECOND READING:
ORDINANCE NO. ~/~/~r
AUTHCP.'.Z',NG T; ;7; ;OC'J'.~ ,-,c ! 997 UTGO P. EF'JHD~!G DCf, '.DS.
AUTHORIZING THE ISSUE OF 1997 UTGO REFUNDING BONDS.
9. RESPONSIBLE OFFICIAL: Treasurer
ENFORCEMENT OFFICIAL: Mayor
EXPIRATION DATE: Feb. 1, 2006
REVIEW DATE: N/A
PULLED
COUNCIL DIRECTIVE:
TABLED
10. NOTICE OF ACTION
APPROVED
DISAPPROVED
11.
AMENDED
/0
2. CLEARANCE COMMENTS:
5. IMPACT ON NON-PASSAGE:
The outstanding 1991 UTGO Bonds will remain outstanding and the savings will not be realized at this time.
6. IMPACT ON STAFFING. BUDGETS. FACILITIES. EQUIPMENT OR OTHER RESOURCES;
Small reduction in debt service requirements and the excess property tax levies in each of the next 10 years.
7. RESEARCH SOURCES:
Savings Analysis.
Bond Counsel.
Negotiations with underwriting bank.
City of Bremerton
REFUNDING ANAL YSIS
Refunding Scenario
Calculated As Of
Refunded Bonds
Refunding Bonds
Increase
Gross Savings
Net Present Value of Savings
Arbitrage Yield / Discount Rate
Average Coupon
Savings as % of Prior Bonds
1991A
UTGO
"A" Rated
25-Sep-97
$1,290,000
1,360,000
70,000
72,499
60,404
4.52%
4.53%
4.6825%
1991A
UTGO
NR
1991A
UTGO
Loan
25-Sep-97
$1,290,000
25-Sep-97
81,290,000
1,350,000
60,000
71,424
57,779
4.72%
4.73%
4.4790%
1,335,000
45,000
70,826
57,128
4.86%
4.95%
4.4285%
CI~"f OF BI~EMERTON (NON-RA~ED)
WASHINGTON
UT%lO REFUNDING BONDS,1997 (REFUND 1991A RFDG BONDS A~-&'~ CALL)
New Bonds Debt Service Schedule
Date Principal Coupon Interest Period Total Fiscal Total
2/ 1/98 20,000.00 4.100000 26,058.33 46,058.33
8/ 1/98 30,860.00
2/ 1/99 160,000.00 4.300000 30,860.00
8/ 1/99 27,420.00
2/ 1/ 0 170,000.00 4.450000 27,420.00
8/ 1/ 0 23,637.50
2/ 1/ i 185,000.00 4.550000 23,637.50
8/ 1/ I 19,428.75
2/ 1/ 2 185,000.00 4.650000 19,428.75
8/ 1/ 2 15,127.50
2/ 1/ 3 205,000.00 4.700000 15,127.50
8/ 1/ 3 10,310.00
2/ 1/ 4 135,000.00 4.800000 10,310.00
8/ 1/ 4 7,070.00
2/ 1/ 5 140,000.00 4.850000 7,070.00
8/ 1/ 5 3,675.00
2/ 1/ 6 150,000.00 4.900o00 3,675.00
81 11 6
1,350,000.00
ACCRUED
1,350,000.00
30,860.00
190,860.00
27,420.00
197,420.00
23,637.50
208,637.50
19,428.75
204 428.75
15 127.50
220 127.50
10 310.00
145 310.00
7 070.00
147 070.00
3 675.00
153 675.00
301,115.83 1,651,115.83
301,115.83 1,651,115.83
76,918.33
218,280.00
221,057.50
228,066.25
219,556.25
230,437.50
152,380.00
150,745.00
153,675.00
Dated 9/ 1/97 with Delivery.of 9/ 1/97
Bond Years 6,372.500
Average Coupon 4.725239
Average Life 4.720370
N I C % 4.859762 % Using 99.3650000
T I C % 4.874608 % From Delivery Date
Arbitrage Yield 4.718964 %
Seafirst Bank-Municipal Fir~ance
Micro-Muni ControlDate: 09-26-1997 ~ 09:07:23 Scenario: BRMTNR
DRAFT DATED OCTOBER 9, 1997
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO. '4tt'~/~7/
AN ORDINANCE of the City of Bremerton, Washington, relating to
contracting indebtedness; providing for the issuance of $ par value of
Unlimited Tax General Obligation Refunding Bonds, 1997, of the City to provide
the funds with which to pay the cost of advance refunding the callable portion of
City's outstanding Unlimited Tax General Obligation and Refunding Bonds, 1991,
and paying the administrative costs of such refunding and the costs of issuance
and sale of such bonds; specifying the maturities, interest rates, terms and
covenants of such bonds; establishing a bond redemption fund; providing for and
authorizing the purchase of certain obligations out of the proceeds of the sale of
the bonds herein authorized and for the use and application of the money derived
from those investments; authorizing the execution of an agreement with~
of , , as refunding trustee; providing for the
call, payment and redemption of the outstanding bonds to be refunded; and
approving the sale and providing for the delivery of the bonds to Bank of
America NT&SA, doing business as Seafirst Bank, of Seattle, Washington.
Approved: , 1997
Passed: , 1997
Prepared By:
FOSTER PEPPER & SHEFELMAN PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447-4400
0306067.01
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton, Washington, relating to
contracting indebtedness; providing for the issuance of $ . par value of
Unlimited Tax General Obligation Refunding Bonds, 1997, of the City to provide
the funds with which to pay the cost of advance refunding the callable portion of
City's outstanding Unlimited Tax General Obligation and Refunding Bonds, 1991,
and paying the administrative costs of such refunding and the costs of issuance
and sale of such bonds; specifying the maturities, interest rates, terms and
covenants of such bonds; establishing a bond redemption fund; providing for and
authorizing the purchase of certain obligations out of the proceeds of the sale of
the bonds herein authorized and for the use and application of the money derived
from those investments; authorizing the execution of an agreement with ~
of , , as refunding trustee; providing for the
call, payment and redemption of the outstanding bonds to be refunded; and
approving the sale and providing for the delivery of the bonds to Bank of
America NT&SA, doing business as Seafirst Bank, of Seattle, Washington.
WHEREAS, pursuant to Ordinance No. 4321, the City of Bremerton, Washington (the
"City"), heretofore issued its $1,850,000 par value Unlimited Tax General Obligation and
Refunding Bonds, 1991 (the "1991 Bonds"), for the purpose of providing funds necessary to (1)
pay the cost of capital purposes as authorized by the qualified voters of the City at a special
election held on November 6, 1990, pursuant to Ordinance No. 4286, and (2) pay the cost of
advance refunding the City's outstanding Unlimited Tax General Obligation Bonds, 1983, which
were authorized by the qualified electors of the City at a special election held on September 16,
1980, pursuant to Ordinance No. 3595; and
WHEREAS, by Ordinance No. 4321 the City reserved the right to redeem the 1991
Bonds prior to their maturity on February 1, 1999, at a price of par plus accrued interest to the
date fixed for redemption; and
030606/.01
/5
WHEREAS, there are presently outstanding $1,145,000 par value of 1991 Bonds
maturing on February 1 of each of the years 2000 through 2006, inclusive, and bearing various
interest rates from 6.35% to 6.95% (the "Refunded Bonds"); and
WHEREAS, after due consideration, it appears to the City Council that the Refunded
Bonds may be refunded by the issuance and sale of the unlimited tax general obligation
refunding bonds authorized herein (the "Bonds") so that a substantial savings will be effected
by the difference between the principal and interest cost over the life of the Bonds and the
principal and interest cost over the life of the Refunded Bonds but for such refunding, which
refunding will be effected by:
(a)The issuance of the Bonds and the payment of the costs of the issuance of
the Bonds and the costs of the refunding;
(b) The payment of the interest on the Refunded Bonds when due up to and
including February 1, 1999, and the call, payment and redemption on
February 1, 1999, of all of the Refunded Bonds at a price of par;
and
WHEREAS, to effect that refunding in the manner that will be most advantageous to the
City and its taxpayers it is found necessary and advisable that certain Acquired Obligations
(hereinafter defined) bearing interest and maturing at such time or times as necessary to
accomplish the refunding as aforesaid be purchased out of a portion of the proceeds of the
Bonds; and
WHEREAS, the City Council deems it to be in the best interests of the City to issue and
sell the Bonds to pay the cost of advance refunding the Refunded Bonds and to pay the
administrative costs of such refunding and the costs of issuance and sale of the Bonds; and
0306067.01
-2-
WHEREAS, Bank of America NT&SA, doing business as Seafirst Bank, of Seattle,
Washington, has offered to purchase the Bonds under the terms and conditions hereinafter set
forth in the form of a bond purchase contract; NOW, THEREFORE,
THE CITY OF BREMERTON DOES ORDAIN as follows:
Section 1. Definitions. As used in this ordinance, the following words shall have the
following meanings:
"Acquired Obligations" means those United States Treasury Certificates of Indebtedness,
Notes and Bonds--State and Local Government Series and other direct, noncallable obligations
of the United States of America purchased to accomplish the refunding of the Refunded Bonds
as authorized by this ordinance.
"Bonds" means the $ par value of Unlimited Tax General Obligation Refunding
Bonds, 1997, authorized to be issued by this ordinance.
"Bond Register" means the registration books of the Bond Registrar on which are
recorded the names of the owners of' the Bonds.
"Bond Registrar" means the fiscal agencies of the State of Washington as the same may
be designated from time to time.
"City" means the City of Bremerton, Washington, a duly organized first class city of the
State of Washington.
"Code" means the Internal Revenue Code of 1986, as amended.
"Refunded Bonds" means the outstanding Unlimited Tax General Obligation and
Refunding Bonds, 1991, of the City maturing in the years 2000 through 2006, inclusive, issued
pursuant to Ordinance No. 4321, the refunding of which has been provided for by this
ordinance.
0306057.01
-3-
"Refunding Plan" means:
(a) the placement of sufficient proceeds of the Bonds which, with other
money of the City, if necessary, will acquire the Acquired Obligations to be
deposited, with cash, if necessary, with the Refunding Trustee;
(b) the payment of the interest on the Refunded Bonds when due up to
and including February 1, 1999, and the call, payment and redemption on
February 1, 1999, of all of the Refunded Bonds at a price of par; and
(c) the payment of the costs of issuing the Bonds and the costs of
carrying out the foregoing elements of the Refunding Plan.
"Refunding Trust Agreement" means a Refunding Trust Agreement between the City and
the Refunding Trustee substantially in the form of that which is on file with the City Clerk and
by this reference incorporated herein.
"Refunding Trustee" means of
escrow agent or any successor trustee or escrow agent.
Section 2. Authorization and Description of Bonds.
$.
, serving as trustee or
The City shall issue and sell
par value of negotiable general obligation refunding bonds for the purpose of
providing the money required to carry out the Refunding Plan. The Bonds shall be called
Unlimited Tax General Obligation Refunding Bonds, 1997, of the City; shall be in the aggregate
principal amount of $ ; shall be dated November 1, 1997; shall be in the denomination
of $5,000 or any integral multiple thereof within a single maturity; shall be numbered separately
in the manner and with any additional designation as the Bond Registrar deems necessary for
purposes of identification; shall bear interest (computed on the basis of a 360-day year of twelve
30-day months) payable semiannually on each February 1 and August 1, commencing
February 1, 1998, to the maturity of the Bonds; and shall mature on February 1 in years and
amounts and bear interest at the rates per annum as follows:
030606'7.01
-4-
Maturity Interest
Years Amounts Rates
1998
1999
2000
2001
2002
2003
2004
2005
2006
All of the principal amount of Bonds maturing in the years through and $ of the
principal amount of Bonds maturing in the year shall constitute non-voted debt of the City.
Section 3. Registration and Transfer of Bonds. The Bonds shall be issued only in
registered form as to both principal and interest and shall be recorded on the Bond Register.
The Bond Register shall contain the name and mailing address of the owner of each Bond and
the principal amount and number of each of the Bonds held by each owner.
Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized
denomination of an equal aggregate principal amount and of the same interest rate and maturity.
Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to
the Bond Registrar. Any exchange or transfer shall be without cost to the owner or transferee.
The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days
preceding any principal payment or redemption date.
Section 4. Payment of Bonds. Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America. Interest on the Bonds shall be paid
by checks or drafts of the Bond Registrar mailed on the interest payment date to the registered
owners at the addresses appearing on the Bond Register on the 15th day of the month preceding
Principal of the Bonds shall be payable upon presentation and
the interest payment date.
0306067,01
-5-
surrender of the Bonds by the registered owners at either of the principal offices of the Bond
Registrar at the option of the owners.
Section 5. Optional Redemption and Open Market Purchase of Bonds. The Bonds shall
be issued without the right or option of the City to redeem the Bonds prior to their stated
maturity dates.
The City reserves the right and option to purchase any or all of the Bonds in the open
market at any time at any price plus accrued interest to the date of purchase.
All Bonds purchased under this section shall be cancelled.
Section 6. Failure to Redeem Bonds. If any Bond is not redeemed when properly
presented at its maturity date, the City shall be obligated to pay interest on that Bond at the same
rate provided in the Bond from and after its maturity until that Bond, both principal and interest,
is paid in full or until sufficient money for its payment in full is on deposit in the bond
redemption fund hereinafter created and the Bond has been called for payment by giving notice
of that call to the registered owner thereof.
Section 7. Pledge of Taxes. For as long as any of the Bonds are outstanding, the City
irrevocably pledges to levy taxes annually without limitation as to rate or amount on all of the
taxable property within the City in an amount sufficient, together with other money legally
available and to be used therefor, to pay when due the principal of and interest on the Bonds,
and the fUll faith, credit and resources of the City are pledged irrevocably for the annual levy
and collection of those taxes and the prompt payment of that principal and interest.
Section 8. Form and Execution of Bonds. The Bonds shall be printed or lithographed
on good bond paper in a form consistent with the provisions of this ordinance and state law,
shall be signed by the Mayor and City Clerk, either or both of whose signatures may be manual
030606'7.01
-6-
or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed
or printed thereon.
Only Bonds bearing a Certificate of Authentication in the following form, manually
signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the
benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This Bond is one of the fully registered City of Bremerton, Washington,
Unlimited Tax General Obligation Refunding Bonds, 1997, described in the Bond
Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Signer
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 ordinance.
If any officer whose facsimile signature appears on the Bonds ceases to be an officer of
the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are
authenticated or delivered by the Bond Registrar or issued by the City, those Bonds nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall
be as binding on the City as though that person had continued to be an officer of the City
authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person
who, on the actual date of signing of the Bond, is an officer of the City authorized to sign
bonds, although he or she did not hold the required office on the date of issuance of the Bonds.
0306067.01
-7-
Section 9. Bond Registrar. The Bond Registrar shall keep, or cause to be kept, at its
principal corporate trust office, sufficient books for the registration and transfer of the Bonds,
which shall be open to inspection by the City at all times. The Bond Registrar is authorized,
on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance
with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the
Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and
City Ordinance No. 3862 establishing a system of registration for the City's bonds and
obligations.
The Bond Registrar shall be responsible for its representations contained in the Bond
Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the
extent permitted by law, may act as depository for and permit any of its officers or directors to
act as members of, or in any other capacity with respect to, any committee formed to protect
the rights of Bond owners.
Section 10. Preservation of Tax Exemption for Interest on Bonds. The City covenants
that it will take all actions necessary to prevent interest on the Bonds 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 Bonds or other funds of the City treated as proceeds of the
Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be
included in gross income for federal income tax purposes. The City certifies that it has not been
notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is
a bond issuer whose arbitrage certifications may not be relied upon.
0306067.01
-8-
Section 11. Small Governmental Issuer Arbitrage Rebate Exception and Designation of
Bonds as "Qualified Tax-Exempt Obligations." The City finds and declares that (a) it is a duly
organized and existing governmental unit of the State of Washington and has general taxing
power; (b) no Bond which is part of this issue of Bonds is a "private activity bond" within the
meaning of Section 141 of the United States Internal Revenue Code of 1986, as amended (the
HCode"); (c) at least 95 % of the net proceeds of the Bonds will be used for local governmental
activities of the City (or of a governmental unit the jurisdiction of which is entirely within the
jurisdiction of the City); (d) the aggregate face amount of all tax-exempt obligations (other than
private activity bonds and other obligations not required to be included in such calculation)
issued by the City and all entities subordinate to the City (including any entity which the City
controls, which derives its authority to issue tax-exempt obligations from the City or which
issues tax-exempt obligations on behalf of the City) during the calendar year in which the Bonds
are issued is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt
obligations, including the Bonds, designated by the City as "qualified tax-exempt obligations"
for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Bonds
are issued does not exceed $10,000,000. The City therefore certifies that the Bonds are eligible
for the arbitrage rebate exception under Section 148(f)(4)(D) of the Code and designates the
Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code.
Section 12. Bonds Negotiable. The Bonds shall be negotiable instruments to the extent
provided by RCW 62A.8-102 and 62A.8-105.
Section 13. Refunding or Defeasance of the Bonds. The City may issue refunding bonds
pursuant to the laws of the State of Washington or use money available from any other lawful
source to pay when due the principal of and interest on the Bonds, or any portion thereof
0306067.01
-9-
included in a refunding or defeasance plan, and to redeem and retire, refund or defease all such
then-outstanding Bonds (hereinafter collectively called the "defeased Bonds") and to pay the costs
of the refunding or defeasance. If money and/or direct obligations of the United States of
America maturing at a time or times and bearing interest in amounts (together with money, if
necessary) sufficient to redeem and retire, refund or defease the defeased Bonds in accordance
with their terms are set aside in a special trust fund or escrow account irrevocably pledged to
that redemption, retirement or defeasance of defeased Bonds (hereinafter called the "trust
account"), then all right and interest of the owners of the defeased Bonds in the covenants of this
ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall
cease and become void. The owners of defeased Bonds shall have the right to receive payment
of the principal of and interest on the defeased Bonds from the trust account. The City shall
include in the refunding or defeasance plan such provisions as the City deems necessary for the
random selection of any defeased Bonds that constitute less than all of a particular maturity of
the Bonds, for notice of the defeasance to be given to the owners of the defeased Bonds and to
such other persons as the City shall determine, and for any required replacement of Bond
certificates for defeased Bonds. The defeased Bonds shall be deemed no longer outstanding, and
the City may apply any money in any other fund or account established for the payment or
redemption of the defeased Bonds to any lawful purposes as it shall determine.
Section 14. Bond Fund and Deposit of Bond Proceeds. There is created and established
in the office of the City Treasurer a special fund designated as the Unlimited Tax General
Obligation Refunding Bond Fund, 1997 (the "Bond Fund"). Accrued interest on the Bonds, if
any, received from the sale and delivery of the Bonds shall be paid into the Bond Fund. The
proceeds of the Bonds shall be deposited in accordance with the provisions of Section 15 herein.
0306067.01
-10-
All taxes collected for and allocated to the payment of the principal of and interest on the Bonds
shall be deposited in the Bond Fund.
Section 15. Refunding of the Refunded Bonds.
(a) Appointment of Refunding Trustee. of , ,
is appointed Refunding Trustee.
(b) Use of Bond Proceeds; Acquisition of Acquired Obligations. All of the proceeds
of the sale of the Bonds, exclusive of the accrued interest thereon which shall be paid into the
Bond Fund, shall be deposited immediately upon the receipt thereof with the Refunding Trustee
and used to discharge the obligations of the City relating to the Refunded Bonds under Ordinance
No. 4321 by providing for the payment of the mounts required to be paid by the Refunding
Plan. To the extent practicable, such obligations shall be discharged fully by the Refunding
Trustee's simultaneous purchase of the Acquired Obligations, bearing such interest and maturing
as to principal and interest in such amounts and at such times so as to provide, together with a
beginning cash balance, if necessary, for the payment of the amount required to be paid by the
Refunding Plan. The Acquired Obligations are listed and more particularly described in
Schedule A attached to the Refunding Trust Agreement between the City and the Refunding
Trustee, but are subject to substitution as set forth below. Any Bond proceeds or other money
deposited with the Refunding Trustee not needed to purchase the Acquired Obligations and
provide a beginning cash balance, if any, and pay the costs of issuance of the Bonds shall be
returned to the City at the time of delivery of the Bonds to the initial purchaser thereof and
deposited in the Bond Fund to pay interest on the Bonds on the fa:st interest payment date.
(c) Substitution of Acquired Obligations. Prior to the purchase of any Acquired
Obligations, the City reserves the right to substitute other direct, noncallable obligations of the
0306067.01
-11-
United States of America ("Government Obligations") for any of the Acquired Obligations and
to use any savings created thereby for any lawful City purpose if, (a) in the opinion of Foster
Pepper & Shefelman PLLC, the City's bond counsel, the interest on the Bonds and the Refunded
Bonds will remain excluded from gross income for federal income tax purposes under
Sections 103, 148 and 149(d) of the Code, and (b) such substitution shall not impair the timely
payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally
recognized independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Government Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall be sufficient to carry out the
Refunding Plan, that such substitution will not cause the Bonds and the Refunded Bonds to be
arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in
effect on the date of such substitution and applicable to obligations issued on the issue date of
the Bonds, and that the City obtain, at its expense: (1) a verification by a nationally recognized
independent certified public accounting firm acceptable to the Refunding Trustee confirming that
the payments of principal of and interest on the substitute securities, if paid when due, and any
other money held by the Refunding Trustee will be sufficient to carry out the Refunding Plan;
and (2) an opinion from Foster Pepper & Shefelman PLLC, bond counsel to the City, its
successor, or other nationally recognized bond counsel to the City, to the effect that the
disposition and substitution or purchase of such securities, under the statutes, rules and
regulations then in force and applicable to the Bonds, will not cause the interest on the Bonds
or the Refunded Bonds to be included in gross income for federal income tax purposes and that
such disposition and substitution or purchase is in compliance with the statutes and regulations
0306067.01
-12-
applicable to the Bonds. Any surplus money resulting from the sale, transfer, other disposition
or redemption of the Acquired Obligations and the substitutions therefor shall be released from
the trust estate and transferred to the City to be used for any lawful City purpose.
(d) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or substitute obligations) and to make the
payments required to be made by the Refunding Plan from the Acquired Obligations (or
substitute obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance. All Acquired Obligations (or substitute obligations) and the money deposited with
the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied
in accordance with the provisions of Ordinance No. 4321, this ordinance, chapter 39.53 RCW
and other applicable statutes of the State of Washington and the Refunding Trust Agreement.
All necessary and proper fees, compensation and expenses of the Refunding Trustee for the
Bonds and all other costs incidental to the setting up of the escrow to accomplish the refunding
of the Refunded Bonds and costs related to the issuance and delivery of the Bonds, including
bond printing, verification fees, bond counsel's fees and other related expenses, shall be paid
out of the proceeds of the Bonds.
(e) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan
provided for by this ordinance, the Mayor of the City is authorized and directed to execute and
deliver to the Refunding Trustee a Refunding Trust Agreement substantially in the form on file
with the City Clerk and by this reference made a part hereof setting forth the duties, obligations
and responsibilities of the Refunding Trustee in connection with the payment, redemption and
retirement of the Refunded Bonds as provided herein and stating that the provisions for payment
of the fees, compensation and expenses of such Refunding Trustee set forth therein are
0306067.01
-13-
satisfactory to it. Prior to executing the Refunding Trust Agreement, the Mayor of the City is
authorized to make such changes therein which do not change the substance and purpose thereof
or which assure that the escrow provided therein and the Bonds are in compliance with the
requirements of federal law governing the exclusion of interest on the Bonds from gross income
for federal income tax purposes.
Section 16. Call for Redemption of the Refunded Bonds. The City calls for redemption
on February 1, 1999, all of the Refunded Bonds at par plus accrued interest. Such call for
redemption shall be irrevocable after the delivery of the Bonds to the initial purchaser thereof.
The date on which the Refunded Bonds are herein called for redemption is the first date on
which the 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, pursuant to Ordinance No. 1~
in order to effect the redemption prior to their maturity of the Refunded Bonds.
Section 17. City Findings with Respect to Refunding. The City Council finds and
determines that the issuance and sale of the Bonds at this time will effect a savings to the City
and is in the best interest of the City and its taxpayers and in the public interest. In making such
finding and determination, the City Council has given consideration to the fixed maturities of
the Bonds and the Refunded Bonds, the costs of issuance of the Bonds and the known earned
income from the investment of the proceeds of the issuance and sale of the Bonds pending
payment and redemption of the Refunded Bonds.
The City Council further finds and determines that the money to be deposited with the
Refunding Trustee for the Refunded Bonds in accordance with Section 15 of this ordinance will
discharge and satisfy the obligations of the City under Ordinance No. ith respect to the
0306067.01
-14-
Refunded Bonds, and the pledges, charges, trusts, covenants and agreements of the City therein
made or provided for as to the Refunded Bonds, and that the Refunded Bonds shall no longer
be deemed to be outstanding under such ordinance immediately upon the deposit of such money
with the Refunding Trustee.
Section 18. Approval of Bond Purchase Contract. Bank of America NT&SA, doing
business as Seafirst Bank, of Seattle, Washington, has presented a purchase contract (the "Bond
Purchase Contract") to the City offering to purchase the Bonds under the terms and conditions
provided in the Bond Purchase Contract, which written Bond Purchase Contract is on file with
the City Clerk and is incorporated herein by this reference. The City Council finds that entering
into the Bond Purchase Contract is in the City's best interest and therefore accepts the offer
contained therein and authorizes its execution by City officials.
The Bonds will be printed at City expense and will be delivered to the purchaser in
accordance with the Bond Purchase Contract, with the approving legal opinion of Foster
Pepper & Shefelman PLLC, municipal bond counsel of Seattle, Washington, regarding the
Bonds printed on each Bond. Bond counsel shall not be required to review and shall express
no opinion concerning the completeness or accuracy of any official statement, offering circular
or other sales or disclosure material issued or used in connection with the Bonds, and bond
counsel's opinion shall so state.
The proper City officials are authorized and directed to do everything necessary for the
prompt delivery of the Bonds to the purchaser and for the proper application and use of the
proceeds of the sale thereof.
Section 19. Preliminary Official Statement Deemed Final. The City Council has been
provided with copies of a preliminary official statement dated October , 1997 (the
0306057.01
-15-
"Preliminary Official Statement"), prepared in connection with the sale of the Bonds. For the
sole purpose of the Bond purchaser's compliance with Securities and Exchange Commission
("SEC") Rule 15c2-12Co)(1), the City "deems final" that Preliminary Official Statement as of
its date, except for the omission of information as to offering prices, interest rates, selling
compensation, aggregate principal amount, principal amount per maturity, maturity dates,
options of redemption, delivery dates, ratings and other terms of the Bonds dependent on such
matters.
Section 20. Undertaking to Provide Continuing Disclosure. To meet the requirements
of SEC Rule 15c2-12(b)(5) (the "Rule"), as applicable to a participating underwriter for the
Bonds, the City makes the following written undertaking (the "Undertaking") for the benefit of
holders of the Bonds:
(a) Undertaking to Provide Annual Financial Information and Notice
of Material Events. The City undertakes to provide or cause to be provided,
either directly or through a designated agent:
(i) To each nationally recognized municipal securities
information repository designated by the SEC in accordance with the Rule
("NRMSIR") and to a state information depository, if any, established in
the State of Washington (the 'SID") annual financial information and
operating data of the type included in the final official statement for the
Bonds and described in Section 20(b) ("annual financial information");
(ii) To each NRMSIR or the Municipal Securities Rulemaking
Board ("MSRB"), and to the SID, timely notice of the occurrence of any
of the following events with respect to the Bonds, if material: (1) principal
and interest payment delinquencies; (2) non-payment related defaults; (3)
unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial
difficulties; (5) substitution of credit or liquidity providers, or their failure
to perform; (6) adverse tax opinions or events affecting the tax-exempt
status of the Bonds; (7) modifications to rights of holders of the Bonds;
(8) Bond calls (other than scheduled mandatory redemptions of Term
Bonds); (9) defeasances; (10) release, substitution, or sale of property
securing repayment of the Bonds; and (11) rating changes; and
030606/.01
-16-
(iii) To each NRMSIR or to the MSRB, and to the SID, timely
notice of a failure by the City to provide required annual financial
information on or before the date specified in Section 20(b).
(b) Type of Annual Financial Information Undertaken to be Provided.
The annual f'mancial information that the City undertakes to provide in Section
20(a):
(i) Shall consist of
(ii) Shall be prepared (except as noted in the f'mancial statements)
in accordance with applicable generally accepted accounting principles
promulgated by the Government Accounting Standards Board ('GASB"),
as such principles may be changed from time to time by GASB or its
successor;
(iii) Shall not be audited, except, however, that if and when
audited financial statements are otherwise prepared and available to the
City they will be provided;
(iv) Shall be provided to each NRMSIR and the SID, not later
than the last day of the ninth month after the end of each fiscal year of the
City (currently, a fiscal year ending December 31), as such fiscal year
may be changed as required or permitted by State law, commencing with
the City's fiscal year ending December 31, 19918]; and
(v) May be provided in a single or multiple documents, and
may be incorporated by reference to other documents that have been filed
with each NRMSIR and the SID, or, if the document incorporated by
reference is a "final official statement" with respect to other obligations
of the City, that has been filed with the MSRB.
(c) Amendment of Undertaking. The Undertaking is subject to
amendment after the primary offering of the Bonds without the consent of any
holder of any Bond, or of any broker, dealer, municipal securities dealer,
participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under
the circumstances and in the manner permitted by the Rule.
The City will give notice to each NRMSIR or the MSRB, and the SID, of
the substance (or provide a copy) of any amendment to the Undertaking and a
brief statement of the reasons for the amendment. If the amendment changes the
type of annual financial information to be provided, the annual financial
information containing the amended financial information will include a narrative
explanation of the effect of that change on the type of information to be provided.
0306067.01
-17-
(d) Beneficiaries. The Undertaking evidenced by this Section 20 shall
inure to the benefit of the City and any holder of Bonds, and shall not inure to
the benefit of or create any rights in any other person.
(e) Termination of Undertaking. The City's obligations under this
Undertaking shall terminate upon the legal defeasance of all of the Bonds. In
addition, the City's obligations under this Undertaking shall terminate if those
provisions of the Rule which require the City to comply with this Undertaking
become legally inapplicable in respect of the Bonds for any reason, as confirmed
by an opinion of nationally recognized bond counsel or other counsel familiar
with federal securities laws delivered to the City, and the City provides timely
notice of such termination to each NRMSIR or the MSRB and the SID.
(f) Remedy for Failure to Comply with Undertaking. As soon as
practicable after the City learns of any failure to comply with the Undertaking,
the City will proceed with due diligence to cause such noncompliance to be
corrected. No failure by the City or other obligated person to comply with the
Undertaking shall constitute a default in respect of the Bonds. The sole remedy
of any holder of a Bond shall be to take such actions as that holder deems
necessary, including seeking an order of specific performance from an appropriate
court, to compel the City or other obligated person to comply with the
Undertaking.
(g) Designation of Official Responsible to Administer Undertaking.
The City Treasurer (or such other officer of the City who may in the future
perform the duties of the City Treasurer) or his or her designee is authorized and
directed in his or her discretion to take such further actions as may be necessary,
appropriate or convenient to carry out the Undertaking of the City in respect of
the Bonds set forth in this Section 20 and in accordance with the Rule, including,
without limitation, the following actions:
(i) Preparing and filing the annual financial information
undertaken to be provided;
(ii) Determining whether any event specified in Section 20(a) has
occurred, assessing its materiality with respect to the Bonds, and, if
material, preparing and disseminating notice of its occurrence;
(iii) Determining whether any person other than the City is an
"obligated person" within the meaning of the Rule with respect to the
Bonds, and obtaining from such person an undertaking to provide any
annual financial information and notice of material events for that person
in accordance with the Rule;
0~05067.01
-18-
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton, Washington, relating to
contracting indebtedness: providing for the issuance of
{$ ] 122].t~a~~ par value of Unlimited Tax General Obligation
Refunding Bonds, 1997, of the City to provide the funds with which to pay the
cost of advance refunding the callable portion of City's outstanding Unlimited Tax
General Obligation and Refunding Bonds, 1991, and paying the administrative
costs of such refunding and the costs of issuance and sale of such bonds;
specifying the maturities, interest rates, terms and covenants of such bonds;
establishing a bond redemption fund; providing for and authorizing the purchase
of certain obligations out of the proceeds of the sale of the bonds herein
authorized and for the use and application of the money derived from those
investments; authorizing the execution of an agreement with -[of-w} ~
Trust Company of New York, New York], as refunding trustee; providing for
the call, payment and redemption of the outstanding bonds to be refunded; and
approving the sale and providing for the delivery of the bonds to Bank of
America NT&SA, doing business as Seafirst Bank, of Seattle, Washington.
Approved: , 1997
Passed: , 1997
Prepared By:
FOSTER PEPPER & SHEFELMAN PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447-4400
0306067.02
CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton, Washington, relating to
contracting indebtedness; providing for the issuance of
[$ 1[$1,225,000] par value of Unlimited Tax General Obligation
Refunding Bonds, 1997, of the City to provide the funds with which to pay the
cost of advance refunding the callable portion of City's outstanding Unlimited Tax
General Obligation and Refunding Bonds, 1991, and paying the administrative
costs of such refunding and the costs of issuance and sale of such bonds;
specifying the maturities, interest rates, terms and covenants of such bonds;
establishing a bond redemption fund; providing for and authorizing the purchase
of certain obligations out of the proceeds of the sale of the bonds herein
authorized and for the use and application of the money derived from those
investments; authorizing the execution of an agreement with ~ [Bankers
Trust Company of New York, New York], as refunding trustee; providing for
the call, payment and redemption of the outstanding bonds to be refunded; and
approving the sale and providing for the delivery of the bonds to Bank of
America NT&SA, doing business as Seafirst Bank, of Seattle, Washington.
WHEREAS, pursuant to Ordinance No. 4321, the City of Bremerton, Washington (the
"City"), heretofore issued its $1,850,000 par value Unlimited Tax General Obligation and
Refunding Bonds, 1991 (the ' 1991 Bonds"), for the purpose of providing funds necessary to (1)
pay the cost of capital purposes as authorized by the qualified voters of the City at a special
election held on November 6, 1990, pursuant to Ordinance No. 4286, and (2) pay the cost of
advance refunding the City's outstanding Unlimited Tax General Obligation Bonds, 1983, which
were authorized by the qualified electors of the City at a special election held on September 16,
1980, pursuant to Ordinance No. 3595; and
WHEREAS, by Ordinance No. 4321 the City reserved the right to redeem the 1991
Bonds prior to their maturity on February 1, 1999, at a price of par plus accrued interest to the
date fixed for redemption; and
030606'/.02
WHEREAS, there are presently outstanding $1,145,000 par value of 1991 Bonds
maturing on February 1 of each of the years 2000 through 2006, inclusive, and bearing various
interest rates from 6.35% to 6.95 % (the "Refunded Bonds"); and
WHEREAS, after due consideration, it appears to the City Council that the Refunded
Bonds may be refunded by the issuance and sale of the unlimited tax general obligation
refunding bonds authorized herein (the "Bonds") so that a substantial savings will be effected
by the difference between the principal and interest cost over the life of the Bonds and the
principal and interest cost over the life of the Refunded Bonds but for such refunding, which
refunding will be effected by:
(a)The issuance of the Bonds and the payment of the costs of the issuance of
the Bonds and the costs of the refunding;
(b) The payment of the interest on the Refunded Bonds when due up to and
including February 1, 1999, and the call, payment and redemption on
February 1, 1999, of all of the Refunded Bonds at a price of par;
and
WHEREAS, to effect that refunding in the manner that will be most advantageous to the
City and its taxpayers it is found necessary and advisable that certain Acquired Obligations
(hereinafter defined) bearing interest and maturing at such time or times as necessary to
accomplish the refunding as aforesaid be purchased out of a portion of the proceeds of the
Bonds; and
WHEREAS, the City Council deems it to be in the best interests of the City to issue and
sell the Bonds to pay the cost of advance refunding the Refunded Bonds and to pay the
administrative costs of such refunding and the costs of issuance and sale of the Bonds; and
0306067.02
-2-
WHEREAS, Bank of America NT&SA, doing business as Seafirst Bank, of Seattle,
Washington, has offered to purchase the Bonds under the terms and conditions hereinafter set
forth in the form of a bond purchase contract; NOW, THEREFORE,
THE CITY OF BREMERTON DOES ORDAIN as follows:
Section 1. Definitions. As used in this ordinance, the following words shall have the
following meanings:
"Acquired Obligations" means those United Sates Treasury Certificates of Indebtedness,
Notes and Bonds--State and Local Government Series and other direct, noncallable obligations
of the United States of America purchased to accomplish the refunding of the Refunded Bonds
as authorized by this ordinance.
"Bonds" means the st-S]- ~ par value of Unlimited Tax General Obligation
Refunding Bonds, 1997, authorized to be issued by this ordinance.
"Bond Register" means the registration books of the Bond Registrar on which are
recorded the names of the owners of the Bonds.
"Bond Registrar" means the fiscal agencies of the State of Washington as the same may
be designated from time to time.
"City" means the City of Bremerton, Washington, a duly organized first class city of the
Sate of Washington.
"Code" means the Internal Revenue Code of 1986, as amended.
"Refunded Bonds" means the outstanding Unlimited Tax General Obligation and
Refunding Bonds, 1991, of the City maturing in the years 2000 through 2006, inclusive, issued
pursuant to Ordinance No. 4321, the refunding of which has been provided for by this
ordinance.
0306067.02
-3-
"Refunding Plan" means:
(a) the placement of sufficient proceeds of the Bonds which, with other
money of the City, if necessary, will acquire the Acquired Obligations to be
deposited, with cash, if necessary, with the Refunding Trustee;
(b) the payment of the interest on the Refunded Bonds when due up to
and including February 1, 1999, and the call, payment and redemption on
February 1, 1999, of all of the Refunded Bonds at a price of par; and
(c) the payment of the costs of issuing the Bonds and the costs of
carrying out the foregoing elements of the Refunding Plan.
"Refunding Trust Agreement" means a Refunding Trust Agreement between the City and
the Refunding Trustee substantially in the form of that which is on file with the City Clerk and
by this reference incorporated herein.
"Refunding Trustee" means {-of~ [Bankers Trust Company of New York, New York],
serving as trustee or escrow agent or any successor trustee or escrow agent.
Section 2. Authorization and Description of Bonds. The City shall issue and sell -{--$-}-
[$1,225,000] par value of negotiable general obligation refunding bonds for the purpose of
providing the money required to carry out the Refunding Plan. The Bonds shall be called
Unlimited Tax General Obligation Refunding Bonds, 1997, of the City; shall be in the aggregate
principal amount of{--S-}- [$1.225.000]; shall be dated {N ......... j [December] 1, 1997; shall
be in the denomination of $5,000 or any integral multiple thereof within a single maturity; shall
be numbered separately in the manner and with any additional designation as the Bond Registrar
deems necessary for purposes of identification; shall bear interest (computed on the basis of a
360-day year of twelve 30-day months) payable semiannually on each February 1 and August 1,
commencing February 1, 1998, to the maturity of the Bonds; and shall mature on February 1
in years and amounts and bear interest at the rates per annum as follows:
0306067.02
-4-
Maturity Interest
Years Amounts Rates
[1998 $35000 3.90~%
1999 15,00.___~0 4.1_._~0
200.__.Q0 170.0~0 4.20
200~1 185,000 4.30
2002 190,000 4.40
2003 205,000 4.4~5
2004 ~ 4.50
2005 ~ 4.5~
200.__.~6 150.000 4.60]
All of the principal amount of Bonds maturing in the years
~ of the principal amount of Bonds maturing in the year [20001 shall constitute non-voted
debt of the City.
Section 3. Registration and Transfer of Bonds. The Bonds shall be issued only in
registered form as to both principal and interest and shall be recorded on the Bond Register.
The Bond Register shall contain the name and mailing address of the owner of each Bond and
the principal amount and number of each of the Bonds held by each owner.
Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized
denomination of an equal aggregate principal amount and of the same interest rate and maturity.
Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to
the Bond Registrar. Any exchange or transfer shall be without cost to the owner or transferee.
The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days
preceding any principal payment or redemption date.
[The Bonds initially shah be registered in the name of CEDE & CO., as the nominee
of The Depository Trust Company, New York, New York ("DTC"). The Bonds so
registered shall be held in fully immobilized form by DTC as depository in accordance with
the provisions of a Blanket Issuer Letter of Representations between the City and DTC
0306067.02
-5-
substantially in the form on file with the City Clerk and by this reference made a part
hereof (the "Letter of Representations"). To induce DTC to accept the Bonds as eligible
for deposit at DTC~ the City approves the Letter of Representations. The City Treasurer
is authorized and directed to execute and deliver the Letter of Representations~ on behalf
of the City~ to DTC on or before the date of delivery of the Bonds to the purchaser thereof
and the payment therefor~ with such changes as the City Treasurer deems to be in the best
interests of the Citw and his execution and delivery of the Letter of Representations shall
evidence irrevocably the approval of the Letter of Representations by the City. Neither the
City nor the Bond Registrar shall have any responsibility or obligation to DTC participant~
or the persons for whom they act as nominees with respect to the Bonds regarding accuracy
of any records maintained by DTC or DTC participants of any amount in respect of
principal of or interest on the Bonds~ or any notice which is permitted or required to be
given to registered owners hereunder (except such notice as is required to be given by the
Bond Registrar to DTC).
For so long as any Bonds are held in fully immobilized form~ DTC or its successor
depository shall be deemed to be the registered owner for all purposes hereunder and all
references to registered owners~ bondowners~ bondholders or the like shall mean DTC or
its nominees and shall not mean the owners of any beneficial interests in the Bonds.
Reeistered ownership of such Bonds~ or any portions thereof, may not thereafter be
transferred except: (i) to any successor of DTC or its nominee~ if that successor shall be
qualified under any applicable laws to provide the services proposed to be provided by it:
(ii) to any substitute depository appointed by the City or such substitute depository's
successor~ or (iii) to any person if the Bonds are no longer held in immobilized form
0306067.02
-6-
Upon the resignation of DTC or its successor (or any substitute depository or its
successor) from Rs functions as depository, or a determination by the City that it no longer
wishes to continue the system of book entry transfers through DTC or its successor (or any
substitute depository or its successor), the City may appoint a substitute depository. Any
such substitute depository shall be qualified under any applicable laws to provide the
services proposed to be provided by it.
If (i) DTC or its successor (or substitute depository or its successor) resigns from
functions as depository~ and no substitute depository can be obtained, or (ii) the City
determines that the Bonds are to be in certificated form, the ownership of Bonds may be
transferred to any person as provided herein and the Bonds no longer shall be held in fully
immobilized form.]
Section 4. Payment of Bonds. Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America. Interest on the Bonds shall be paid
by checks or drafts of the Bond Registrar mailed on the interest payment date to the registered
owners at the addresses appearing on the Bond Register on the 15th day of the month preceding
the interest payment date. Principal of the Bonds shall be payable upon presentation and
surrender of the Bonds by the registered owners at either of the principal offices of the Bond
Registrar at the option of the owners.
Section 5. Optional Redemption and Open Market Purchase of Bond~. The Bonds shall
be issued without the right or option of the City to redeem the Bonds prior to their stated
maturity dates.
The City reserves the right and option to purchase any or all of the Bonds in the open
market at any time at any price plus accrued interest to the date of purchase.
0306067.02
-7-
All Bonds purchased under this section shall be cancelled.
Section 6. Failure to Redeem Bonds. If any Bond is not redeemed when properly
presented at its maturity date, the City shall be obligated to pay interest on that Bond at the same
rate provided in the Bond from and after its maturity until that Bond, both principal and interest,
is paid in full or until sufficient money for its payment in full is on deposit in the bond
redemption fund hereinafter created and the Bond has been called for payment by giving notice
of that call to the registered owner thereof.
Section 7. Pledge of Taxes. For as long as any of the Bonds are outstanding, the City
irrevocably pledges to levy taxes annually without limitation as to rate or amount on all of the
taxable property within the City in an amount sufficient, together with other money legally
available and to be used therefor, to pay when due the principal of and interest on the Bonds,
and the full faith, credit and resources of the City are pledged irrevocably for the annual levy
and collection of those taxes and the prompt payment of that principal and interest.
Section 8. Form and Execution of Bonds. The Bonds shall be printed or lithographed
on good bond paper in a form consistent with the provisions of this ordinance and state law,
shall be signed by the Mayor and City Clerk, either or both of whose signatures may be manual
or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed
or printed thereon.
Only Bonds bearing a Certificate of Authentication in the following form, manually
signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the
benefits of this ordinance:
0306067.02
-8-
CERTIFICATE OF AUTHENTICATION
This Bond is one of the fully registered City of Bremerton, Washington,
Unlimited Tax General Obligation Refunding Bonds, 1997, described in the Bond
Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Signer
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 ordinance.
If any officer whose facsimile signature appears on the Bonds ceases to be an officer of
the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are
authemicated or delivered by the Bond Registrar or issued by the City, those Bonds nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall
be as binding on the City as though that person had continued to be an officer of the City
authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person
who, on the actual date of signing of the Bond, is an officer of the City authorized to sign
bonds, although he or she did not hold the required office on the date of issuance of the Bonds.
Section 9. Bond Registrar.. The Bond Registrar shall keep, or cause to be kept, at its
principal corporate trust office, sufficient books for the registration and transfer of the Bonds,
which shall be open to inspection by the City at all times. The Bond Registrar is authorized,
on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance
with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the
Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and
-9-
City Ordinance No. 3862 establishing a system of registration for the City's bonds and
obligations.
The Bond Registrar shall be responsible for its representations contained in the Bond
Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the
extent permitted by law, may act as depository for and permit any of its officers or directors to
act as members of, or in any other capacity with respect to, any committee formed to protect
the rights of Bond owners.
Section 10. Preservation of Tax Exemption for Interest on Bonds. The City covenants
that it will take all actions necessary to prevent interest on the Bonds 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 Bonds or other funds of the City treated as proceeds of the
Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be
included in gross income for federal income tax purposes. The City certifies that it has not been
notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is
a bond issuer whose arbitrage certifications may not be relied upon.
Section 11. Small Governmental Issuer Arbitrage Rebate Exception and Designation of
Bonds as "Qualified Tax-Exempt Obligations." The City finds and declares that (a) it is a duly
organized and existing governmental unit of the State of Washington and has general taxing
power; (b) no Bond which is part of this issue of Bonds is a "private activity bond" within the
meaning of Section 141 of the United States Internal Revenue Code of 1986, as amended (the
"Code"); ,(c) at least 95 % of the net Proceeds of the Bonds will be used for local governmental
activities of the City (or of a governmental unit the jurisdiction of which is entirely within the
030606'7.02
-10-
jurisdiction of the City); (d) the aggregate face amount of all tax-exempt obligations (other than
private activity bonds and other obligations not required to be included in such calculation)
issued by the City and all entities subordinate to the City (including any entity which the City
controls, which derives its authority to issue tax-exempt obligations from the City or which
issues tax-exempt obligations on behalf of the City) during the calendar year in which the Bonds
are issued is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt
obligations, including the Bonds, designated by the City as "qualified tax-exempt obligations"
for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Bonds
are issued does not exceed $10,000,000. The City therefore certifies that the Bonds are eligible
for the arbitrage rebate exception under Section 148(f)(4)(D) of the Code and designates the
Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code.
Section 12. Bonds Negotiable. The Bonds shall be negotiable instruments to the extent
provided by RCW 62A.8-102 and 62A.8-105.
Section 13. Refunding or Defeasance of the Bonds. The City may issue refunding bonds
pursuant to the laws of the State of Washington or use money available from any other lawful
source to pay when due the principal of and interest on the Bonds, or any portion thereof
included in a refunding or defeasance plan, and to redeem and retire, refund or defease all such
then-outstanding Bonds (hereinafter collectively called the "defeased Bonds") and to pay the costs
of the refunding or defeasance. If money and/or direct obligations of the United States of
America maturing at a time or times and bearing interest in amounts (together with money, if
necessary) sufficient to redeem and retire, refund or defease the defeased Bonds in accordance
with their terms are set aside in a special trust fund or escrow account irrevocably pledged to
that redemption, retirement or defeasance of defeased Bonds (hereinafter called the "trust
030606'/.02
-11-
account"), then all right and interest of the owners of the defeased Bonds in the covenants of this
ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall
cease and become void. The owners of defeased Bonds shall have the right to receive payment
of the principal of and interest on the defeased Bonds from the trust account. The City shall
include in the refunding or defeasance plan such provisions as the City deems necessary for the
random selection of any defeased Bonds that constitute less than all of a particular maturity of
the Bonds, for notice of the defeasance to be given to the owners of the defeased Bonds and to
such other persons as the City shall determine, and for any required replacement of Bond
certificates for defeased Bonds. The defeased Bonds shall be deemed no longer outstanding, and
the City may apply any money in any other fund or account established for the payment or
redemption of the defeased Bonds to any lawful purposes as it shall determine.
[If the Bonds are registered in the name of DTC or its nominee, notice of any
defeasance of Bonds shall be given to DTC in the manner prescribed in the Letter of
Representations for notices of redemption of Bonds.]
Section 14. Bond Fund and Deposit of Bond Proceeds. There is created and established
in the office of the City Treasurer a special fund designated as the Unlimited Tax General
Obligation Refunding Bond Fund, 1997 (the "Bond Fund"). Accrued interest on the Bonds, if
any, received from the sale and delivery of the Bonds shall be paid into the Bond Fund. The
proceeds of the Bonds shall be deposited in accordance with the provisions of Section 15 herein.
All taxes collected for and allocated to the payment of the principal of and interest on the Bonds
shall be deposited in the Bond Fund.
Section 15. Refunding of the Refunded Bonds.
0306067.02
-12-
(a) Appointment of Refunding Trustee. ~ [Bankers Trust Company of New
York, New York], is appointed Refunding Trustee.
(b) Use of Bond Proceeds; Acquisition of Acquired Obligations. All of the proceeds
of the sale of the Bonds, exclusive of the accrued interest thereon which shall be paid into the
Bond Fund, shall be deposited immediately upon the receipt thereof with the Refunding Trustee
and used to discharge the obligations of the City relating to the Refunded Bonds under Ordinance
No. 4321 by providing for the payment of the mounts required to be paid by the Refunding
Plan. To the extent practicable, such obligations shall be discharged fully by the Refunding
Trustee's simultaneous purchase of the Acquired Obligations, bearing such interest and maturing
as to principal and interest in such amounts and at such times so as to provide, together with a
beginning cash balance, if necessary, for the payment of the amount required to be paid by the
Refunding Plan. The Acquired Obligations are listed and more particularly described in
Schedule A attached to the Refunding Trust Agreement between the City and the Refunding
Trustee, but are subject to substitution as set forth below. Any Bond proceeds or other money
deposited with the Refunding Trustee not needed to purchase the Acquired Obligations and
provide a beginning cash balance, if any, and pay the costs of issuance of the Bonds shall be
returned to the City at the time-of delivery of the Bonds to the initial purchaser thereof and
deposited in the Bond Fund to pay interest on the Bonds on the first interest payment date.
(c) Substitution of Acquired Obligations. Prior to the purchase of any Acquired
Obligations, the City reserves the right to substitute other direct, noncallable obligations of the
United States of America ("Government Obligations") for any of the Acquired Obligations and
to use any savings created thereby for any lawful City purpose if, (a) in the opinion of Foster
Pepper & Shefelman PLLC, the City's bond counsel, the interest on the Bonds and the Refunded
0306O67.02
-13-
Bonds will remain excluded from gross income for federal income tax purposes under
Sections 103, 148 and 149(d) of the Code, and (b) such substitution shall not impair the timely
payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally
recognized independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Government Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall be sufficient to carry out the
Refunding Plan, that such substitution will not cause the Bonds and the Refunded Bonds to be
arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in
effect on the date of such substitution and applicable to obligations issued on the issue date of
the Bonds, and that the City obtain, at its expense: (1) a verification by a nationally recognized
independent certified public accounting firm acceptable to the Refunding Trustee confirming that
the payments of principal of and interest on the substitute securities, if paid when due, and any
other money held by the Refunding Trustee will be sufficient to carry out the Refunding Plan;
and (2)an opinion from Foster Pepper & Shefelman PLLC, bond counsel to the City, its
successor, or other nationally recognized bond counsel to the City, to the effect that the
disposition and substitution or purchase of such securities, under the statutes, rules and
regulations then in force and applicable to the Bonds, will not cause the interest on the Bonds
or the Refunded Bonds to be included in gross income for federal income tax purposes and that
such disposition and substitution or purchase is in compliance with the statutes and regulations
applicable to the Bonds. Any surplus money resulting from the sale, transfer, other disposition
or redemption of the Acquired Obligations and the substitutions therefor shall be released from
the trust estate and transferred to the City to be used for any lawful City purpose.
0306067.02
-14-
(d) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or substitute obligations) and to make the
payments required to be made by the Refunding Plan from the Acquired Obligations (or
substitute obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance. All Acquired Obligations (or substitute obligations) and the money deposited with
the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied
in accordance with the provisions of Ordinance No. 4321, this ordinance, chapter 39.53 RCW
and other applicable statutes of the State of Washington and the Refunding Trust Agreement.
All necessary and proper fees, compensation and expenses of the Refunding Trustee for the
Bonds and all other costs incidental to the setting up of the escrow to accomplish the refunding
of the Refunded Bonds and costs related to the issuance and delivery of the Bonds, including
bond printing, verification fees, bond counsel's fees and other related expenses, shall be paid
out of the proceeds of the Bonds.
(e) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan
provided for by this ordinance, the Mayor of the City is authorized and directed to execute and
deliver to the Refunding Trustee a Refunding Trust Agreement substantially in the form on file
with the City Clerk and by this reference made a part hereof setting forth the duties, obligations
and responsibilities of the Refunding Trustee in connection with the payment, redemption and
retirement of the Refunded Bonds as provided herein and stating that the provisions for payment
of the fees, compensation and expenses of such Refunding Trustee set forth therein are
satisfactory to it. Prior to executing the Refunding Trust Agreement, the Mayor of the City is
authorized to make such changes therein which do not change the substance and purpose thereof
or which assure that the escrow provided therein and the Bonds are in compliance with the
0306067.02
-15-
requirements of federal law governing the exclusion of interest on the Bonds from gross income
for federal income tax purposes.
Section 16. Call for Redemption of the Refun4ed Bonds. The City calls for redemption
on February 1, 1999, all of the Refunded Bonds at par plus accrued interest. Such call for
redemption shall be irrevocable after the delivery of the Bonds to the initial purchaser thereof.
The date on which the Refunded Bonds are herein called for redemption is the first date on
which the 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, pursuant to Ordinance No. ~
[4321] in order to effect the redemption prior to their maturity of the Refunded Bonds.
Section 17. City Findings with Respect to Refunding. The City Council finds and
determines that the issuance and sale of the Bonds at this time will effect a savings to the City
and is in the best interest of the City and its taxpayers and in the public interest. In making such
finding and determination, the City Council has given consideration to the fixed maturities of
the Bonds and the Refunded Bonds, the costs of issuance of the Bonds and the known earned
income from the investment of the proceeds of the issuance and sale of the Bonds pending
payment and redemption of the Refunded Bonds.
The City Council further finds and determines that the money to be deposited with the
Refunding Trustee for the Refunded Bonds in accordance with Section 15 of this ordinance will
discharge and satisfy the obligations of the City under Ordinance No. ~ [43211 with
respect to the Refunded Bonds, and the pledges, charges, trusts, covenants and agreements of
the City therein made or provided for as to the Refunded Bonds, and that the Refunded Bonds
-16-
shall no longer be deemed to be outstanding under such ordinance immediately upon the deposit
of such money with the Refunding Trustee.
Section 18. Approval of Bond Purchase Contract. Bank of America NT&SA, doing
business as Seafirst Bank, of Seattle, Washington, has presented a purchase contract (the "Bond
Purchase Contract") to the City offering to purchase the Bonds under the terms and conditions
provided in the Bond Purchase Contract, which written Bond Purchase Contract is on file with
the City Clerk and is incorporated herein by this reference. The City Council finds that entering
into the Bond Purchase Contract is in the City's best interest and therefore accepts the offer
contained therein and authorizes its execution by City officials.
The Bonds will be printed at City expense and will be delivered to the purchaser in
accordance with the Bond Purchase Contract, with the approving legal opinion of Foster
Pepper & Shefelman PLLC, municipal bond counsel of Seattle, Washington, regarding the
Bonds printed on each Bond. Bond counsel shall not be required to review and shall express
no opinion concerning the completeness or accuracy of any official statement, offering circular
or other sales or disclosure material issued or used in connection with the Bonds, and bond
counsel's opinion shall so state.
The proper City officials are authorized and directed to do everything necessary for the
prompt delivery of the Bonds to the purchaser and for the proper application and use of the
proceeds of the sale thereof.
Section 19. Preliminary Official Statement Deemed Final. The City Council has been
provided with copies of a preliminary official statement dated [Octc~cr} I-November 13], 1997
(the "Preliminary Official Statement"), prepared in connection with the sale of the Bonds. For
the sole purpose of the Bond purchaser's compliance with Securities and Exchange Commission
-17-
("SEC") Rule 15c2-12(b)(1), the City "deems final" that Preliminary Official Statement as of
its date, except for the omission of information as to offering prices, interest rates, selling
compensation, aggregate principal amount, principal amount per maturity, maturity dates,
options of redemption, delivery dates, ratings and other terms of the Bonds dependent on such
matters.
Section 2Q. Undertaking to Provide Continuing Disclosure. To meet the requirements
of SEC Rule .15c2-12(b)(5) (the "Rule"), as applicable to a participating underwriter for the
Bonds, the City makes the following written undertaking (the nUndertaking") for the benefit of
holders of the Bonds:
(a) Undertaking to Provide Annual Financial Information and Notice
of Material Events. The City undertakes to provide or cause to be provided,
either directly or through a designated agent:
(i) To each nationally recognized municipal securities
information repository designated by the SEC in accordance with the Rule
('NRMSIR") and to a state information depository, if any, established in
the State of Washington (the "SID") annual financial information and
operating data of the type included in the final official statement for the
Bonds and described in Section 20(b) ("annual financial information");
(ii) To each NRMSIR or the Municipal Securities Rulemaking
Board ("MSRB"), and to the SID, timely notice of the occurrence of any
of the following events with respect to the Bonds, if material: (1) principal
and interest payment delinquencies; (2) non-payment related defaults; (3)
unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial
difficulties; (5) substitution of credit or liquidity providers, or their failure
to perform; (6) adverse tax opinions or events affecting the tax-exempt
status of the Bonds; (7) modifications to rights of holders of the Bonds;
(8) Bond calls (other than scheduled mandatory redemptions of Term
Bonds); (9) defeasances; (10) release, substitution, or sale of property
securing repayment of the Bonds; and (11) rating changes; and
(iii) To each NRMSIR or to the MSRB, and to the SID, timely
notice of a failure by the City to provide required annual financial
information on or before the date specified in Section 20(b).
0306067.02
-18-
(b) Type of Annual Financial Information Undertaken to be Provided.
The annual financial information that the City undertakes to provide in Section
20(a):
(i) Shall consist of [(1) annual financial statements; (2) a
statement of authorized, issued and outstandin~ general obli~,ation
debt of the City; (3) the assessed value of property within the City
subject to ad valorem taxation; and (4) ad valorem tax levy rates and
mounts, and amount collected];
(ii) {-Shag3 [Annual financial statements shall] be prepared
(except as noted in the financial statements) in accordance with applicable
generally accepted accounting principles promulgated by the Government
Accounting Standards Board ("GASB"), as such principles may be
changed from time to time by GASB or its successor;
(iii) Shall not be audited, except, however, that if and when
audited financial statements are otherwise prepared and available to the
City they will be provided;
(iv) Shall be provided to each NRMSIR and the SID, not later
than the last day of the ninth month after the end of each fiscal year of the
City (currently, a fiscal year ending December 31), as such fiscal year
may be changed as required or permitted by State law, commencing with
the City's fiscal year ending December 31, t~nr~ron
t~---~l,,~ [19971; and
(v) May be provided in a single or multiple documents, and
may be incorporated by reference to other documents that have been filed
with each NRMSIR and the SID, or, if the document incorporated by
reference is a "final official statement" with respect to other obligations
of the City, that has been filed with the MSRB.
(c) Amendment of Undertaking. The Undertaking is subject to
amendment after the primary offering of the Bonds without the consent of any
holder of any Bond, or of any broker, dealer, municipal securities dealer,
participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under
the circumstances and in the manner permitted by the Rule.
The City will give notice to each NRMSIR or the MSRB, and the SID, of
the substance (or provide a copy) of any amendment to the Undertaking and a
brief statement of the reasons for the amendment. If the amendment changes the
type of annual financial information to be provided, the annual f'mancial
information containing the amended financial information will include a narrative
explanation of the effect of that change on the type of information to be provided.
-19-
(d) Beneficiaries. The Undertaking evidenced by this Section 20 shall
inure to the benefit of the City and any holder of Bonds, and shall not inure to
the benefit of or create any rights in any other person.
(e) Termination of Undertaking. The City's obligations under this
Undertaking shall terminate upon the legal defeasance of all of the Bonds. In
addition, the City's obligations under this Undertaking shall terminate if those
provisions of the Rule which require the City to comply with this Undertaking
become legally inapplicable in respect of the Bonds for any reason, as confirmed
by an opinion of nationally recognized bond counsel or other counsel familiar
with federal securities laws delivered to the City, and the City provides timely
notice of such termination to each NRMSIR or the MSRB and the SID.
(f) Remedy for Failure to Comply with Undertaking. As soon as
practicable after the City learns of any failure to comply with the Undertaking,
the City will proceed with due diligence to cause such noncompliance to be
corrected. No failure by the City or other obligated person to comply with the
Undertaking shall constitute a default in respect of the Bonds. The sole remedy
of any holder of a Bond shall be to take such actions as that holder deems
necessary, including seeking an order of specific performance from an appropriate
court, to compel the City or other obligated person to comply with the
Undertaking.
(g) Designation of Official Responsible to Administer Undertaking.
The City Treasurer (or such other officer of the City who may in the future
perform the duties of the City Treasurer) or his or her designee is authorized and
directed in his or her discretion to take such further actions as may be necessary,
appropriate or convenient to carry out the Undertaking of the City in respect of
the Bonds set forth in this Section 20 and in accordance with the Rule, including,
without limitation, the following actions:
(i) Preparing and filing the annual financial information
undertaken to be provided;
(ii) Determining whether any event specified in Section 20(a) has
occurred, assessing its materiality with respect to the Bonds, and, if
material, preparing and disseminating notice of its occurrence;
(iii) Determining whether any person other than the City is an
"obligated person" within the meaning of the Rule with respect to the
Bonds, and obtaining from such person an undertaking to provide any
annual financial information and notice of material events for that person
in accordance with the Rule;
0306067.02
-20-
(iv) Selecting, engaging and compensating designated agents and
consultants, including but not limited to financial advisors and legal
counsel, to assist and advise the City in carrying out the Undertaking; and
(v) Effecting any necessary amendment of the Undertaking.
Section 21. Temporary Bond. Pending the printing, execution and delivery to the
purchaser of definitive Bonds, the City may cause to be executed and delivered to the purchaser
a single temporary Bond in the total principal amount of the Bonds. The temporary Bond shall
bear the same date of issuance, interest rates, principal payment dates and terms and covenants
as the definitive Bonds, shall be issued as a fully registered Bond in the name of the purchaser,
and otherwise shall be in a form acceptable to the purchaser. The temporary Bond shall be
exchanged for definitive Bonds as soon as they are printed, executed and available for delivery.
Section 22.. Effective Date of Ordinance. This ordinance shall take effect ten (10) days
after its passage, and publication.
APPROVED by the City Council of the City of Bremerton, Washington, this
r,~^~.~.~ ~, 1997.
t .,,.,,.., s,~,,.,, ,,,.~ j
PASSED by the City Council of the City of Bremerton, Washington, this
rr~.~.~ ~, 1997.
day of
day of
APPROVED this
~day of
DAVID FARR, Council President
,1997.
ATTEST:
LYNN HORTON, Mayor
KATHLEEN L. McCLUSKEY, City Clerk
0306067.02
-21-
APPROVED AS TO FORM:
~ ..... ks ~.) [Hue. h D. Spitzer] Bond Counsel
Publication Date:
Ordinance Number:
0306067.02
-22-
I. KATHLEEN L. McCLUSKEY, City Clerk of the City of Bremerton, Washington,
certify that the attached copy of Ordinance No. ~ is a true and correct copy of the original
ordinance passed on the~ day of ~r~,^~,~,~t,.,,,,,.,,,,,, j [~.9..~P..~, 1997, as that ordinance appears
on the Minute Book of the City.
DATED this day of , 1997.
Kathleen L. McCluskey
City Clerk
Jane D. Towery
Vice President
Municipal Finance
November 19, 1997
Honorable Mayor and City of Brcmcrton Councilmembers
City of Bremerton
239 4th Street
Bremerton, WA 98337
RE: City of Bremerton
Unlimited Tax General Obligation Refunding Bonds,
1997
Honorable Mayor and City Councilmembers:
Bank of America National Trust & Savings Association doing business as Seafirst Bank (the
"Underwriter") offers to purchase from the City of Bremerton (the "Issuer") all the above-
described bonds (the "Bonds"), on the terms and based upon the covenants, representations and
warranties set forth below. Appendix A, which is incorporated into this agreement by reference,
contains a brief description of the Bonds, including principal amounts, maturities, interest rates,
purchase price, and the proposed date of delivery and payment (the "Closing"). Other provisions
of this agreement are as follows:
1. Issuer, to the best of its knowledge, represents and covenants to the Underwriter that:
(a) It has, and will have at the Closing, the power and authority to enter into and perform
this agreement, to pass the Bond ordinance (the "Bond Ordinance") and to deliver and
sell the Bonds to the Underwriter;
(b) This agreement and the Bonds do not and will not conflict with, or constitute or create
a breach or default under, any existing law, regulation, order or agreement to which
Issuer is subject;
(c) No governmental approval or authorization, other than the Bond Ordinance, which
has not been obtained or will not be obtained prior to closing, is required in
connection with the sale of the Bonds to the Underwriter.
(d) The Issuer hereby ratifies, approves and confirms the distribution of the Preliminary
Official Statement with respect to the Bonds, dated November 13, 1997 (together
with the Appendices thereto, any documents incorporated therein by reference, and
any supplements or amendment thereto, the "Preliminary Official Statement"), in
connection with the public offering and sale of the Bonds by the Underwriter prior to
the availability of the Official Statement and deems such Preliminary Official
Statement final as of its date for purposes of SEC Rule 15c2-12(b)(1).
(e) The above referenced Preliminary Official Statement with corrections, if any, noted
by the Issuer and its counsel, as of its date and (except as to matters corrected in the
final Official Statement) as of the Closing, shall be accurate and complete in all
material respects as of its date to the knowledge and belief of the officers and
employees of the Issuer, after due review.
Seafirst Bank/800 Fifth Avenue, Floor 34/Post Office Box 34662/Seattle, Washington 98124
Telephone (206) 358-8991 / Telefex (206) 358-8818
City of Bremerton
November 19, 1997
Page 2
(f) The Issuer agrees to cooperate with the Underwriter to deliver or cause to be
delivered, within seven business days after any final agreement to purchase, offer, or
sell the securities and in sufficient time to accompany any confirmation that requests
payment from any customer of the Underwriter, copies of a final Official Statement in
sufficient quantities to comply with S.E.C. Rule 15c2-12(b)(4) and the rules of the
Municipal Securities Rulemaking Board ("MSRB").
(g) The Underwriter agrees to deliver the required number of copies of the Final Official
Statement to the MSRB and to all nationally recognized municipal securities
information repositories ("NRM$IR$") on thc business day on which the final
Official Statement is available, and in any event no later than seven business days
after the date hereof.
(h) The Issuer will have made an undertaking to provide continuing disclosure to meet
the applicable requirements of paragraph (b)(5) of the S.E.C. Rule 15c2-12.
The Underwriter shall have the right to cancel the agreement contained herein to purchase
the Bonds by notifying the Issuer of its election to do so if, after the execution of this
Contract of Purchase and prior to the Closing:
(a) A decision by a court of the United States or the United States Tax Court shall be
rendered or a ruling, or a regulation (final, temporary, or proposed), by or on behalf of
the Treasury Department of the United States, the Internal Revenue Service or other
governmental agency shall be issued and in the case of any such regulation, published
in the Federal Register, or legislation shall have been introduced in, enacted by or
favorably reported to either the House of Representatives or the Senate of the United
States, with respect to Federal taxation upon interest received on bonds of the type
and character of any of the Bonds which, in the reasonable judgment of the
Underwriter, materially adversely affects the marketability of the Bonds or their sale
at the contemplated public offering prices; or
(b) The United States shall have become engaged in hostilities which have resulted in
declaration of war or national emergency or other national or international calamity or
other event shall have occurred to such an extent as, in the reasonable opinion of the
Underwriter, to have a materially adverse affect on the marketability of the Bonds; or
(c) There shall have occurred a general suspension of trading on the New York Stock
Exchange; or
(d) A general banking moratorium shall have been declared by the United States of
America, New York State or Washington State authorities; or
(e) Legislation shall hereafter be enacted, or actively considered for enactment, with an
effective date prior to the date of the delivery of the Bonds, or a decision by a court of
the United States shall hereafter be rendered or a ruling or regulation by the Securities
and Exchange Commission or other governmental agency having jurisdiction over the
subject matter shall hereafter be made, the effect of which is that:
(1) The Bonds are not exempt from the registration, qualification or other
requirements of the Securities Act of 1933, as amended and as then in effect or
the Securities Exchange Act of 1934, as amended and then in effect, or
(2) The Bond Ordinance is not exempt from the registration, qualification or other
requirements of the Trust Indenture Act of 1939, as amended and as then in
effect; or
City of Bremerton
November 19, 1997
Page 3
(f) A stop order, ruling or regulation by the Securities and Exchange Commission shall
hereafter be issued or made, the effect of which is that the issuance, offering or sale of
the Bonds, as contemplated herein or in the Final Official Statement, is in violation of
any provision of the Securities Act of 1933, as amended and as then if effect, the
Securities Exchange Act of 1934, as amended and as then in effect, or the Trust
Indenture Act of 1939, as amended and as then in effect and which, in the reasonable
judgment of the Underwriter, adversely affects the marketability of the Bonds or the
market price thereof.
The Underwriter's obligations hereunder are also subject to the following conditions:
At or prior to the Closing, Issuer will deliver, make available to the Underwriter or have
adopted:
(a) The Bonds, in definitive form and duly executed or a temporary bond as provided;
(b) A certificate from an authorized officer of the Issuer, in form and substance
acceptable to the Issuer and the Underwriter, stating that execution of the Certificate
shall constitute execution of the final Official Statement attached thereto, and to the
knowledge and belief of such officers, after due review, it does not contain any untrue
statement of a material fact or omit any statement or information which is necessary
to make the statements therein, in the light of the circumstances under which made,
not misleading, and that the representations of the Issuer contained in this agreement
were true and correct when made and are true and correct as of the Closing;
(c) The approving opinion of Bond Counsel dated the Closing date;
(d) The following documents executed by authorized officers of the Issuer;
(1) A certificate, dated the day of the Closing to the effect that no litigation or other
proceedings are pending or threatened in any way affecting the issuance, sale or
delivery of, or security for, any of the Bonds.
(2) A certificate setting forth the facts, estimates and circumstances in existence on
the date of Closing which establish that it is not expected that the proceeds of
the Bonds, will be used in a manner that could cause the Bonds to be "arbitrage
bonds" with in the meaning of Section 148 of the Internal Revenue Code and
any applicable regulations thereunder.
(3) Such additional certificates, instruments or opinions or other evidence as the
Underwriter may deem reasonably necessary or desirable to evidence the due
authorization execution, authentication and delivery of the Bonds, the truth and
accuracy, as of the time of the Closing, of the representations and warranties,
and the conformity of the Bonds, and Bond Ordinance with their terms thereof
as summarized in the Official Statement, and to cover such other matters as it
reasonably requests.
(4) A certified copy of the Bond Ordinance.
(e) The Underwriter's obligations are subject to the issuance of an assignment to the
Bonds of a rating of "A2" by Moody's Investors Service.
Issuer will pay the cost of preparing, printing and executing the Bonds and the fees and
disbursements of Bond counsel, travel and lodging expenses of Issuer's employees and
representatives, and other expenses of Issuer.
City of Bremerton
November 19, 1997
Page 4
o
°
As a convenience to Issuer, Underwriter may from time to time as Issuer's Underwriter,
make arrangements for certain items for which Issuer is responsible hereunder, such as
preparation and printing of the Official Statement.
Underwriter also may advance for Issuer's account when appropriate the cost of such items
by making payments to third-party vendors. In cases, Issuer shall pay such costs or
expenses directly, upon submission of appropriate invoices by Underwriter, or promptly
reimburse Underwriter in the event Underwriter has advanced such costs or expenses for
Issuer's account. It is understood that Issuer shall be primarily responsible for payment of
all such items, except for the printing of the Official Statement, and that Underwriter may
agree to advance the cost of such items from time to time solely as an accommodation to
Issuer and on the condition that it shall be reimbursed in full by Issuer.
This agreement is intended to benefit only the parties hereto, and Issuer's representations
and warranties shall survive any investigation made by or for the Underwriter, delivery and
payment of the Bonds, and the termination of this Purchase Contract. Should the Issuer fail
to satisfy any of the foregoing conditions or covenants, or if the Underwriter's obligations
are terminated for any reasons permitted under this Purchase Contract, then neither the
Underwriter nor the Issuer shall have any further obligations under this Purchase Contract,
except that any expenses incurred shall be borne in accordance with Section 4.
This offer expires on the date, and at the time, set forth on Appendix A.
Respectfully submitted,
SEAFIRST BANK
By: Jat~/~ Towery, Vice mr~
Accepted November 19, 1997
CITY OF BREMERTON
By:
Its:
Date:
APPENDIX A
DESCRIPTION OF BONDS
(a) Purchase Price: $1,216,731.25 ($99.325 per $100), plus accrued interest to the date of
Closing
(b) Denominations: $5,000 or integral multiples thereof
(c) Form: Fully registered, book-entry only
(d) Dated Date: December 1, 1997
(e) Interest Payment Dates: February 1 and August 1, commencing February 1, 1998
(f) Maturity Schedule: Bonds shall mature on February 1 of each year and bear interest as
follows:
Maturity Principal
February Amount Rate Price
1998 $ 35,000 3.90% 100
1999 15,000 4.10 100
2000 170,000 4.20 100
2001 185,000 4.30 100
2002 190,000 4.40 100
2003 205,000 4.45 100
2004 135,000 4.50 100
2005 140,000 4.55 100
2006 150,000 4.60 100
(Plus accruedinterestfrom December1,1997)
(g) Optional Redemption: The Bonds are not subject to redemption prior to maturity.
(h) Closing Date: December 9, 1997 or such other date that is agreed to by Issuer and
Underwriter
(i) Offer Expires: Midnight, November 19, 1997
(j) Bond Counsel: Foster Pepper & Shefelman PLLC
For Information Only:
Gross Interest Cost
Plus: Underwriter's Spread
Net Interest Cost
Net Interest Cost
$ 263,036.25
8,268.75
$ 271,305.00
4.6068%
PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 13, 1997
BOOK-ENTRY ONLY
NEW ISSUE RATING: Applied For
NEGOTIATED (See the caption "RATING" herein)
In the opinion of Bond Counsel, assuming compliance by the City of Bremerton, Washington (the 'City") with applicable requirements of the Internal Revenue Code
of 1986, as amended (the ~C, ocle"), including arbitrage requirements, interest on the Bonds is excluded from gross income of registered owners for federal income
tax purposes un(ler existing federal law, and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. However, while
interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to corporations, interest on the Bonds received by
corporations is taken into account in the computation of adjusted current earnings for purposes of the alternative minimum tax applicable to corporations, interest on
the Bonds received by certain S corl3orations may be subject to tax, and interest on the Bo~ds received by foreign corporations v,4th United States branches may be
subject to a foreign branch profits tax. Receipt of interest on the Bonds may have other federal tax consequences for certain taxpayers. See the captions 'q'AX
EXEMPTION' and 'CERTAIN OTHER FEDERAL TAX CONSEQUENCES.'
CITY OF BREMERTON, WASHINGTON
$1,21 5,000*
UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 1997
DATED: December 1~ 1997 DUE: February 1~ as shown below
The City's Unlimited Tax General Obligation Refunding Bonds, 1997 (the "Bonds"), are issued in fully registered form, and will be fully
registered in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will
act as securities depository for the Bonds. The Bonds will be initially issued in book-entry form only in the value of $5,000 or any integral
multiple thereof within a single maturity. Pumhasers will not receive certificates representing their interest in the Bonds purchased. The Bonds
bear interest payable on February 1, 1998 and semiannually thereafter on August 1 and February I of each year to maturity. The principal of
and interest on the Bonds are payable by either fiscal agency of the State of Washington, currently The Bank of New York, New York, New
York and Wells Fargo Bank, National Association, Seattle, Washington (the "Fiscal Agent"). For so long as the Bonds remain in a "book-entry
only" transfer system, the Fiscal Agent will make such payments only to DTC, which will in turn remit such principal and interest to the DTC
participants for subsequent disbursement to Beneficial Owners of the Bonds as described herein under the caption "Book-Entry Only System."
MATURITY SCHEDULE*
Due Yield or Due
February_ 1 Amount Rate Price February I Amount
1998 $ 30,000 2003 $ 205,000
1999 15,000 2004 135,000
2000 170,000 2005 140,000
2001 185,000 2006 150,000
2002 185,000
Yield or
Rate Price
(Plus accrued interest from December 1, 1997)
The Bonds will not be subject to redemption prior to maturity.
The Bonds are direct and general obligations of the City. For as long as any of the Bonds are outstanding, the City irrevocably
pledges to levy taxes annually without limitation as to rate or amount on all of the taxable property within the City in an amount
sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on
the Bonds, and the full faith, credit and resources of the City are pledged irrevocably for the annual levy and collection of those
taxes and the prompt payment of that principal and interest. See ~SECURITY' herein.
The City has designated the Bonds as "qualified tax-exempt obligations" under the Internal Revenue Code of 1986, as
amended. "See "CERTAIN OTHER FEDERAL INCOME TAX CONSEQUENCES" herein.
The Bonds are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Foster Pepper &
Shefelman PLLC, Bond Counsel, Seattle, Washington. It is expected that the Bonds in definitive, book-entry form are expected
to be ready for delivery at the facilities of DTC in New York, New York, on or around December __, 1997.
This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the
entire Official Statement to obtain information essential to the making of an informed investment decision.
Preliminary, subject to change.
(iv) Selecting, engaging and compensating designated agents and
consultants, including but not limited to financial advisors and legal
counsel, to assist and advise the City in carrying out the Undertaking; and
(v) Effecting any necessary amendment of the Undertaking.
Section 21. Temporary Bond. Pending the printLng, execution and delivery to the
purchaser of definitive Bonds, the City may cause to be executed and delivered to the purchaser
a single temporary Bond in the total principal amount of the Bonds. The temporary Bond shall
bear the same date of issuance, interest rates, principal payment dates and terms and covenants
as the definitive Bonds, shall be issued as a fully registered Bond in the name of the purchaser,
and otherwise shall be in a form acceptable to the purchaser. The temporary Bond shall be
exchanged for definitive Bonds as soon as they are printed, executed and available for delivery.
0306067.01
-19-
Section 22. Effective Date of Ordinance.
after its passage and publication.
APPROVED by the City Council of the City of Bremerton, Washington, this
October, 1997.
PASSED by the City Council of the City of Bremerton, Washington, this
October, 1997.
This ordinance shall take effect ten (10) days
day of
day of
APPROVED this
day of
DAVID FARR, Council President
,1997.
ATTEST:
LYNN HORTON, Mayor
KATHLEEN L. McCLUSKEY, City Clerk
APPROVED AS TO FORM:
George M. Mack, Bond Counsel
Publication Date:
Ordinance Number:
030606'7.01
-20-
I, KATHLEEN L. McCLUSKEY, City Clerk of the City of Bremerton, Washington,
certify that the attached copy of Ordinance No. ~ is a true and correct copy of the original
ordinance passed on the ~
Book of the City.
DATED this
day of October, 1997, as that ordinance appears on the Minute
~day of
,1997.
Kathleen L. McCluskey
City Clerk
0306067.01
[FORM OF APPROVING LEGAL OPINION]
City of Bremerton, Washington
Re:
City of Bremerton, Washington, $
Obligation Refunding Bonds, 1997
Unlimited Tax General
We have served as bond counsel to the City of Bremerton, Washington (the "City"),
in connection with the issuance of the above-referenced bonds (the "Bonds"), have examined
a certified transcript of proceedings relating to the Bonds and have examined an executed and
authenticated Bond or a facsimile thereof.
The Bonds are issued pursuant to Ordinance No. ~ of the City (the "Bond
Ordinance") for the purpose of providing the funds with which to pay the cost of advance
refunding the callable portion of the City's outstanding Unlimited Tax General Obligation and
Refunding Bonds, 1991, and to pay the administrative costs of such refunding and the costs
of issuance of the Bonds, all as set forth in the Bond Ordinance, and under and in accordance
with the Constitution and laws of the State of Washington and ordinances of the City.
The Bonds are fully registered; are in the denomination of $5,000 or any integral
multiple thereof within a single maturity; are numbered separately; are dated November 1,
1997; and bear interest at the rates set forth below, payable semiannually on each February 1
and August 1, commencing February 1, 1998, to the maturity of the Bonds. The Bonds are
payable at the principal office of either of the fiscal agencies of the State of Washington
(collectively, the "Bond Registrar"). The Bonds mature on February 1 in years and amounts
and bear interest at the rates per annum as follows:
Maturity Interest
Dates Amounts Rates
1998
1999
2000
2001
2002
2003
2004
2005
2006
0307099.01
City of Bremerton, Washington
[Date]
Page 2
The Bonds are issued without the right or option of the City to redeem the Bonds
prior to their stated maturity dates.
We have not been engaged to review, have not reviewed and thus express no opinion
concerning the completeness or accuracy of any official statement, offering circular or other
sales or disclosure material relating to the issuance of the Bonds or otherwise used in
connection with the Bonds.
Under the Internal Revenue Code of 1986, as amended (the "Code"), issuers of
tax-exempt obligations are required to calculate and rebate to the United States certain
investment earnings on gross proceeds of those obligations in the event that all gross
proceeds have not been spent within certain periods prescribed by the Code. There is an
exception to this rebate requirement available to a governmental unit with general taxing
powers in connection with the issuance of obligations other than "private activity bonds" as
defined in the Code, if the governmental unit, together with all subordinate governmental
units, does not reasonably anticipate issuing more than $5,000,000 of tax-exempt obligations
(other than private activity bonds and other obligations not required to be included in such
calculation) during the calendar year in which the obligations are issued. The City has
certified in the Bond Ordinance that it is an issuer which qualifies for this arbitrage rebate
exception in connection with the issuance of the Bonds.
Under the Code, the City is required to comply with certain requirements after the
date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds
from gross income for federal income tax purposes, including, without limitation,
requirements concerning the qualified use of Bond proceeds and the facilities financed or
refinanced with Bond proceeds. The City has covenanted in the Bond Ordinance to comply
with those requirements, but if the City fails to comply with those requirements, interest on
the Bonds could become taxable retroactive to the date of issuance of the Bonds. We have
not undertaken and do not undertake to monitor the City's compliance with such
requirements.
As of the date of initial delivery of the Bonds to the purchaser thereof and full
payment therefor, it is our opinion that:
1. The City is a duly organized and legally existing first class city under the laws
of the State. of Washington;
2. The Bonds are issued in full compliance with the provisions of the
Constitution and laws of the State of Washington and the ordinances of the City relating
thereto;
3. The Bonds constitute valid general obligations of the City payable from annual
ad valorem taxes to be levied without limitation as to rate or amount on all of the taxable
0307099.01
City of Bremerton, Washington
[Date]
Page 3
property within the City, except only to the extent that enforcement of payment may be
limited by bankruptcy, insolvency or other laws affecting creditors' rights and by the
application of equitable principles and the exercise of judicial discretion in appropriate cases;
and
4. Assuming compliance by the City after the date of issuance of the Bonds with
applicable requirements of the Code, including arbitrage requirements, under existing federal
law the interest on the Bonds is excluded from gross income of the registered owners for
federal income tax purposes and is not an item of tax preference for purposes of the
alternative minimum tax applicable to individuals; however, while interest on the Bonds also
is not an 'item of tax preference for purposes of the alternative minimum tax applicable to
corporations, interest on the Bonds received by corporations is to be taken into account in
the computation of adjusted current earnings for purposes of the alternative minimum tax
applicable to corporations, interest on the Bonds received by certain S corporations may be
subject to tax, and interest on the Bonds received by foreign corporations with United States
branches may be subject to a foreign branch profits tax. We express no opinion regarding
any other federal tax consequences of receipt of interest on the Bonds.
We bring to your attention the fact that the foregoing opinions are expressions of our
professional judgment on the matters expressly addressed and do not constitute guarantees
of result.
Respectfully submitted,
FOSTER PEPPER & SHEFELMAN PLLC
030/099.01
Draft Dated 10-27-97
PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER __, 1997
BOOK-ENTRY ONLY
NEW ISSUE RATING: Applied For
NEGOTIATED (See the caption "RATING" herein)
In the opinion of Bond Counsel, assuming compliance by the City of Bremerton, Washington (the "City') with applical~le requirements of the Internal Revenue Code
of 1986, as amended (the 'Code'), including a~oitrage requirements, interest on the Bonds is excluded from gross income of registered owners for federal income
tax purposes under existing federal law, and is not an item of tax preference for purposes of the alternative minimum tax applicable to individuals. However, wi~le
interest on the Bonds also is not an item of tax preference for purposes of the alternative minimum tax applicable to co~porations, interest on the Bonds received by
corporations is taken into account in the computation of adjusted current earnings/or purposes of the alternative minimum tax applical)le to corporations, interest on
the Bonds received by certain S corporations may be subject to tax, and interest on the Bonds received by foreign corporations with United States branches may t~e
subject to a foreign branch profits tax. Receipt of interest on the Bonds may have other federal tax consequences for certain taxpayers. See the captions 'TAX
EXEMPTION' and "CERTAIN OTHER FEDERAL TAX CONSEQUENCES.'
UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 1997
DATED: November 1, 1997
DUE: February 1, as shown below
The City's Unlimited Tax General Obligation Refunding Bonds, 1997 (the "Bonds"), are issued in fully registered form, and will be fully
registered in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company (~DTC"), New York. New York. DTC will
act as securities depository for the Bonds. The Bonds will be initially issued in book-entry form only in the value of $5,000 or any integral
multiple thereof within a single maturity. Purchasers will not receive certificates representing their interest in the Bonds purchased. The Bonds
bear interest payable on February 1, 1998 and semiannually thereafter on August 1 and February I of each year to maturity. The principal of
and interest on the Bonds are payable by either fiscal agency of the State of Washington, currently The Bank of New York, New York, New
York and Wells Fargo Bank, National Association, Seattle, Washington (the 'Fiscal Agent"). For so long as the Bonds remain in a 'book-entry
only' b'ansfer system, the Fiscal Agent will make such payments only to DTC, which will in turn remit such principal and interest to the DTC
participants for subsequent disbursement to Beneficial Owners of the Bonds as described herein under the caption "Book-Entry Only System."
MATURITY SCHEDULE*
Due Yield or Due
February 1 Amount Rate Price February 1 Amount
i 998 $ 30,000 2003 $ 205,000
! 999 15,000 2004 ! 35,000
2000 170,000 2005 140,000
200 ! 185,000 2006 150,000
2002 185,000
(Plus accrued interest from November 1, 1997)
Yield or
Rate Price
The Bonds will not be subject to redemption prior to maturity.
The Bonds are direct and general obligations of the City. For as long as any of the Bonds are outstanding, the City irrevocably
pledges to levy taxes annually without limitation as to rate or amount on all of the taxable property within the City in an amount
sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on
faith, and resources of the City are pledged irrevocably for the annual levy and collection of those
the
Bonds,
and
the
full
credit
taxes and the prompt payment of that principal and interest. See "SECURITY" herein.
The City has designated the Bonds as "qualified tax-exempt obligations" under the Internal Revenue Code of 1986, as
amended. "See "CERTAIN OTHER FEDERAL INCOME TAX CONSEQUENCES" herein.
The Bonds are offered by the Underwriter when, as, and if issued, subject to the approving legal opinion of Foster Pepper &
Shefelman PLLC, Bond Counsel, Seattle, Washington. It is expected that the bonds in definitive, book-entry form are expected
to be ready for delivery at the facilities of DTC in New York, New York, on or around ,1997.
This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the
entire Official Statement to obtain information essential to the making of an informed investment decision.
Preliminary, subject to change.
Representations
Neither the City nor the Underwriter has authorized any dealer, broker, salesperson or other
persons to give any information or make any representations other than those made in this
Preliminary Official Statement, and, if given or made, such other information or representations
must not be relied upon as having been authorized by the City or the Underwriter. This
Preliminary Official Statement does not constitute an offer to sell, nor shall there be any sale of
the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such
a sale.
The information contained in this Preliminary Official Statement has been obtained from City
officials and other sources believed to be reliable. Neither a representation, warranty nor
guarantee is made by the Underwriter as to the accuracy or completeness of any information in
this Preliminary Official Statement and nothing contained in this Preliminary Official Statement
is or shall be relied upon as a promise or representation by the Underwriter. The delivery of this
Preliminary Official Statement does not imply that the information contained herein is correct as
of any time subsequent to the date of the Preliminary Official Statement as shown on the cover
page.
Disclosure Statement
The City will deliver.to the Underwriter at the time of delivery of the Bonds a signed statement
substantially to the effect that this Preliminary Official Statement, as of its date and as of the date
of the Bonds, neither contains any untrue statement of a material fact nor omits to state any
material fact necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading in any material respect and that there has not been any material
adverse change in the normal operations or financial condition of the City nor, to the best of the
City's knowledge, in the general economy of the City since the date of the Preliminary Official
Statement.
Secondary Market
It has been the practice of the Underwriter to maintain a secondary market in municipal bonds
which it sells. The Underwriter intends to engage in secondary market trading of the Bonds,
subject to applicable securities laws. The Underwriter, however, is neither obligated to engage in
secondary trading nor to repurchase any of the Bonds at the request of the registered owners
thereof and no assurance can be given that a secondary market for the Bonds will be available.
In connection with the offering of the Bonds, the Underwriter may over-allot or effect
transactions that stabilize or maintain the market price of the Bonds at a level above that which
might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued
at any time.
This Preliminary Official Statement, as of its date, is in a form that is expected to be "deemed
final" by the City for purposes of SEC Rule I5c2-12(b)(1) but is subject to revision, amendment
and completion in a final Official Statement that will be available within seven (7) business days
of the sale date of the Bonds.
ii
CITY OF BREMERTON
KITSAP COUNTY, WASHINGTON
MAYOR
Term Expires
December 31
Lynn Horton
1997
CITY COUNCIL
John Law
A1 Colvin
David Fart
Sherril Huff-Menees
Cecil McConnell
Carlos Montgomery
Richard Neville
Lon Overson
Robert Winters
Chairperson
Member
Member
Member
Member
Member
Member
Member
Member
1997
1997
1999
1997
1999
1999
1997
1999
1997
APPOINTED OFFICIALS
Richard Hanna
Kathleen McCluskey
Ian Sievers
Treasurer
Administrative Services
Director/City Clerk
Attorney
BOND COUNSEL
Foster Pepper & Shefelman PLLC
Seattle, Washington
UNDERWRITER
Bank of America NT&SA
doing business as Seafirst Bank ("Seafirst Bank")
Capital Markets Division
Seattle, Washington
TABLE OF CONTENTS
Page
Introduction ........................................................................................................................... 1
Description of the Bonds ....................................................................................................... 1
Authorization ........................................................................................................................ 3
Security ................................................................................................................................. 3
Purpose ...: .............................................................................................................................. 4
The Advance Refunding Plan ............................................................................................... 4
Verification of Mathematical Computations ......................................................................... 5
Sources and Uses of Funds ................................................................................................... 5
No Optional Redemption ...................................................................................................... 5
Open Market Purchase .......................................................................................................... 5
Debt Payment Record ........................................................................................................... 5
Future Financing ................................................................................................................... 5
Assessed Valuation Determination ....................................................................................... 6
Tax Collection Procedure ...................................................................................................... 6
Authorization of Debt ........................................................................................................... 6
General Obligation Indebtedness .......................................................................................... 7
Limits on Amount of General Obligation Indebtedness ....................................................... 7
Authorization of Short-Term Debt ........................................................................................ 7
Taxing Powers and Limitations ............................................................................................ 8
Auditing of City Finances ..................................................................................................... 9
Authorized Investments ........................................................................................................ 9
Net Direct Debt and Estimated Net ....................................................................................... 11
Overlapping General Obligation Debt .................................................................................. 11
Bonded Debt Ratios of the City ............................................................................................ 11
Statutory Debt Limit Calculation for the City ...................................................................... 12
Ad Valorem Tax Collection Record Of The City ................................................................ 13
Ad Valorem Property Tax Rates 1 ......................................................................................... 13
Comparative Statement of General Fund Revenues and Expenditures ............................... 14
Contingency reserve fund 1 ................................................................................................... 14
1997 General Fund Budgeted Expenditures ........................................................................ 15
General and Economic information ...................................................................................... 18
Tax Exemption ...................................................................................................................... 22
Certain Other Federal Tax Consequences ............................................................................. 23
Preservation of Tax Exemption ............................................................................................. 23
Absence of Material Litigation ............................................................................................. 23
Continuing Disclosure ........................................................................................................... 24
Approval of Bond Counsel ................................................................................................... 25
Bond Rating .......................................................................................................................... 25
Conflicts of Interest ............................................................................................................... 25
Underwriting ......................................................................................................................... 26
Concluding Statement ........................................................................................................... 26
Form of Legal Opinion ............................................................................................. Appendix A
PRELIMINARY OFFICIAL STATEMENT
CITY OF BREMERTON, WASHINGTON
$1,215,000'
UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 1997
INTRODUCTION
The City of Bremerton, Washington (the "City"), a municipal corporation duly organized and
existing under and by virtue of the laws of the State of Washington, furnishes this Official
Statement in connection with the offering of $1,215,000' principal amount of Unlimited Tax
General Obligation Refunding Bonds, 1997 (the "Bonds"). This Official Statement provides
information concerning the City and the Bonds.
DESCRIPTION OF THE BONDS
Principal Amount, Dates, Interest Rates, and Maturities
The Bonds will be issued in the principal amount of $1,215,000' and will be dated and bear
interest from November 1, 1997. The Bonds will mature annually on February 1, commencing
February 1, 1998, in the amounts, and will bear interest payable semiannually, commencing
February 1, 1998, at the rates set forth on the cover page of this Official Statement.
Interest on the Bonds will be computed on the basis of a 360-day year comprised of twelve 30-
day months.
Form and Denomination and Registration
The Bonds will be issued in fully registered form as to both principal and interest in the
denomination of $5,000 each or any integral multiple thereof within a single maturity. The
Bonds, when issued, will be registered in the name of Cede & Co., as registered owner and
nominee of The Depository Trust Company, New York, New York ("DTC").
DTC will act as securities depository for the Bonds. Individual purchases may be made in book-
entry form only. Purchasers will not receive certificates representing their interest in the Bonds
purchased. So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC,
references herein to the registered owners or bond owners will mean Cede & Co. and will not
mean the "Beneficial Owners" of the Bonds. In this Official Statement, the term "Beneficial
Owner" will mean the person for which a DTC participant acquires an interest in the Bonds.
So long as Cede & Co. is the registered owner of the Bonds, principal of and interest on the
Bonds are payable by wire transfer by the Paying Agent of the City to DTC, which, in turn, is
obligated to remit such principal and interest to the DTC participants for subsequent
disbursement to Beneficial Owners of the Bonds, as further described under the caption "Book-
Entry Only System."
Book-Entry Only System
The following information has been provided by DTC. Beneficial Owners should confirm the
following with DTC or the Participants.
Preliminary, subject to change.
DTC will act as initial securities depository for the Bonds. The Bonds will be issued as fully
registered bonds, and will be registered in the name of Cede & Co. (DTC's partnership nominee).
One fully-registered Bond certificate will be issued for each maturity of the Bonds, in the
aggregate principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a
"banking organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934, as amended. DTC holds securities that its participants
(the "Participants") deposit with DTC. DTC also facilitates the settlement among Participants of
securities transactions, such as transfers and pledges, in deposited securities through electronic
computerized book-entry changes in accounts of the Participants, thereby eliminating the need of
physical movement of securities certificates. Direct Participants include securities brokers and
dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is
owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the
American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access
to the DTC system is also available to others such as banks, brokers, dealers and trust companies
that clear through or maintain a custodial relationship with a Direct Participant, either directly or
indirectly ("Indirect Participants"). The rules applicable to DTC and its Participants are on file
with the Securities and Exchange Commission.
Purchases of the Bonds under the DTC system, in denominations of $5,000 or any integral
multiple thereof, must be made by or through Direct Participants, which will receive a credit for
the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond
("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records.
Beneficial Owners will not receive written confirmation from DTC of their purchase, but
Beneficial Owners are expected to receive written confirmations providing details of the
transaction, as well as periodic statements of their holdings, from the Direct or Indirect
Participants through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Bonds are to be accomplished by entries made on the books of
Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in the Bonds, except in the event that use of the
book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in
the name of DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their
registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bonds. DTC's records reflect only the identity
of the Direct Participants to whose accounts such Bonds are credited, which may or may not be
the Beneficial Owners. The Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time.
Redemption notices will be sent to Cede & Co. If less than all of the Bonds are being redeemed,
DTC's practice is to determine by lot the amount of the interest of each Direct Participant in
Bonds to be redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual
procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date.
The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct
Participants to whose accounts the Bonds are credited on the record date (identified in a listing
attached to the Omnibus Proxy).
2
Principal and interest payments on the Bonds will be made to DTC. DTC's practice is to credit
Direct Participants' accounts on payable date in accordance with their respective holdings shown
on DTC's records unless DTC has reason to believe that it will not receive payment on the
payable date. Payments by Participants to Beneficial Owners will be governed by standing
instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in "street name," and will be the responsibility of such
Participant and not of DTC, the Fiscal Agent, or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of principal and interest to DTC is
the responsibility of the City or Fiscal Agent. Disbursement of such payments to Direct
Participants will be the responsibility of DTC, and disbursement of such payments to the
Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at
any time by giving reasonable notice to the City or the Fiscal Agent. Under such circumstances
and in the event that a successor securities depository is not obtained, Bond certificates are
required to be printed and delivered.
The City may decide to discontinue use of book-entry transfers through DTC (or a successor
securities depository). In that event, Bond certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system has been obtained
from sources the City believes to be reliable, but the City takes no responsibility for the accuracy
thereof.
Procedure in the Event of Revisions of Book-Entry Transfer System
If the City is unable to retain a qualified successor to DTC or the City has determined that it is in
the best interest of the City not to continue the book-entry system of transfer or that interests of
the Beneficial Owners of the Bonds might be adversely affected if the book-entry system of
transfer is continued, the City will execute, authenticate and deliver at no cost to the Beneficial
Owners of the Bonds or their nominees, Bonds in fully registered form, in the denomination of
$5,000 or any integral multiple thereof. Thereafter, the principal of the Bonds will be payable
upon due presentment and surrender thereof at the principal office of the Bond Registrar; interest
on the Bonds will be payable by check or draft mailed or by wire transfer (wire transfer will be
made only if so requested in writing and if the registered owner owns at least $I,000,000 par
value of the Bonds), to the persons in whose names such Bonds are registered, at the address
appearing upon the registration books on the 15th day of the month next preceding an interest
payment date, and the Bonds will be transferable as provided in the Bond Ordinance.
AUTHORIZATION
The Bonds are issued in accordance with the provisions of the Constitution and applicable
statutes of the State of Washington, pursuant to Ordinance No. (the "Ordinance") of the
Bremerton City Council, passed on ., 1997.
SECURITY
The Bonds are direct and general obligations of the City. For as long as any of the Bonds are
outstanding, the City irrevocably pledges to levy taxes annually without limitation as to rate or
amount on all of the taxable property within the City in an amount sufficient, together with other
money legally available and to be used therefor, to pay when due the principal of and interest on
the Bonds, and the full faith, credit and resources of the City are pledged irrevocably for the
annual levy and collection of those taxes and the prompt payment of that principal and interest.
3
PURPOSE
The proceeds of the Bonds will be used to advance refund the callable portion of the City's
Unlimited Tax General Obligation and Refunding Bonds, Series 1991A, maturing in the years
2000 through 2006, in the amount of $1,145,000 (the "Refunded Bonds"), which are being
issued to provide debt service savings to the City and its taxpayers
A portion of the Bond proceeds will be used to pay the cost of issuing the Bonds.
THE ADVANCE REFUNDING PLAN
The City has covenanted to irrevocably set aside sufficient investments required to effect the
refunding of the Refunded Bonds, plus any necessary initial cash, which investments shall be
purchased from the proceeds of the Bonds to redeem the Refunded Bonds in accordance with the
provisions of the Ordinance which authorizes the redemption and retirement of the Refunded
Bonds prior to their stated maturities.
Pursuant to the Ordinance, the City has irrevocably covenanted to call for redemption on
February 1, 1999, the Refunded Bonds maturing on or after February 1, 2000, at a price of par
plus accrued interest, in accordance with the provisions of the Refunded Bonds Ordinance.
Said defeasance and call for early redemption relative to the Refunded Bonds shall be irrevocable
after the final purchase and delivery of the Government Obligations to the Refunding Trustee,
except as provided in the Refunding Agreement relating to the substitution of securities.
The Refunding Trustee
Banker's Trust, is serving as the Refunding Trustee for the purpose of managing the cash and
investments that comprise the Government Obligations for the Refunded Bonds, which will pay
the principal of, interest on and redemption premium, if any, on the Refunded Bonds as the same
become due and payable.
Acquisition of the Government Obligations
Pursuant to the Ordinance, a portion of the proceeds of the Bonds (exclusive of accrued interest
thereon, if any, which shall be paid into the City's Bond Fund), will be delivered to the
Refunding Trustee on the day of closing, which amount will be used for the sole purpose of
purchasing the Government Obligations and paying the cost of issuing the Bonds.
The City shall defease the Refunded Bonds and discharge such obligations by the Refunding
Trustee's irrevocable purchase of certain "Government Obligations" as such obligations are
defined in Chapter 39.53 RCW as now or hereafter amended (which obligations so purchased are
herein called "Government Obligations"), bearing such interest and maturing as to principal and
interest in such amounts and at such times that, together with any necessary beginning cash
balance, will provide for the payment of:
a) the interest that will become due and payable on the Refunded Bonds to and including
February 1, 1999, when due; and
b) the redemption on February 1, 1999, of the Refunded Bonds, at a redemption price equal
to 100% of the principal amount.
Such Government Obligations shall be purchased at a yield not greater than the yield permitted
by the Internal Revenue Code of 1986, as amended (the "Code"), and applicable regulations
thereunder relating to acquired obligations in connection with refunding bond issues.
4
VERIFICATION OF MATHEMATICAL COMPUTATIONS
Deloitte & Touche LLP will verify from the information provided to them the mathematical
accuracy as of the date of the closing on the Bonds of (1) the computations contained in the
provided schedules to determine that the anticipated receipts from the securities and cash
deposits listed in the Underwriter's schedules, to be held in escrow, will be sufficient to pay,
when due, the principal, interest and call premium payment requirements, if any, of the Refunded
Bonds, and (2) the computations of yield on both the securities and the Bonds contained in the
provided schedules used by Bond Counsel in its determination that the interest on the Bonds is
exempt from tax. Deloitte & Touche LLP will express no opinion on the assumptions provided to
them, nor as to the exemption from taxation of the interest on the Bonds.
SOURCES AND USES OF FUNDS
The following table sets forth the estimated sources and uses of the proceeds of the Bonds, in
accordance with the Advance Refunding Plan.
Sources of Funds:
· Par Amount or' the Bonds
· Net Original Issue Premium (Discount)
· Accrued Interest
Total Sources of Funds
Use of Funds:
· Purchase Price of Government Obligations
· Initial Escrow Cash
· Costs of Issuance, Including Underwriter's Discount
· Accrued Interest and Contingency
Total Uses of Funds
NO OPTIONAL REDEMPTION
The Bonds will not be subject to redemption prior to maturity.
OPEN MARKET PURCHASE
The City reserves the right and option to purchase any or all of the Bonds in the open market at
any time at any price acceptable to the City plus accrued interest.
DEBT PAYMENT RECORD
The City has always promptly met principal and interest payments on outstanding bonds when
due. Additionally, no refunding bonds have been issued for the purpose of preventing an
impending default.
FUTURE FINANCING
The City does not anticipate any additional long-term financing needs for the next 12 months.
ASSESSED VALUATION DETERMINATION
In the State of Washington, the County Assessor (an elected official) determines the value of all
real and personal property throughout the City (including the City) which is subject to ad
valorem taxation. The County Assessor's duties and methods of determining value are
prescribed and controlled by statute and by detailed regulations promulgated by the Department
of Revenue of the State of Washington. For tax purposes the assessed value of property is set at
100% of its actual value. All property is subject to physical inspection every sin years. However,
each parcel's assessed valuation is subject to a comparison with market value annually and may
be updated if necessary. The property is listed by the County Assessor on a roll at its current
assessed value and the roll is filed in the County Assessor's office. The County Assessor's
determinations are subject to revisions by the County Board of Equalization and, for certain
property, subject to further revisions by the State Board of Equalization. After all administrative
procedures are completed, the taxing unit receives the County Assessor's final certificate of
assessed value of property within the taxing unit.
TAX COLLECTION PROCEDURE
Property taxes are levied in specific amounts, and the rate for all taxes levied for all taxing
districts in the County (including the City) are determined, calculated and fixed by the Assessor
based upon the assessed valuation of the property within the various taxing districts. The County
Assessor extends the taxes to be levied within each taxing district upon a tax roll which contains
the total amount of taxes to be so levied and collected. The tax roll is delivered to the County
Treasurer (an elected official) by January 15, of each year, and an abstract of the tax roll,
showing the total amount of taxes collectible in each of the taxing districts for the year, is
delivered to the County Auditor (an elected official) at the same time. The County Auditor
issues to the County Treasurer a warrant authorizing the collection of taxes listed on the County
Assessor's certified tax roll. The County Treasurer creates a tax account for each taxpayer and is
responsible for the collection of taxes due to each account. All such taxes are due and payable
on the 30th of April of each year, but if the amount due from a taxpayer exceeds thirty dollars,
one-half may be paid then and the balance no later than October 3 l, of each year. The method of
giving notice of payment of taxes due, the County Treasurer's accounting for the money
collected, the division of the taxes among the various taxing districts, notice of delinquency, and
collection procedures are all covered by detailed statutes.
The lien for ad valorem property taxes which have been levied prior to the filing of federal tax
liens is prior to such federal tax liens.
In other respects, and subject to the possible "Homestead Exemption," the lien for delinquent
property taxes is prior to all other liens or encumbrances of any kind on real or personal property
subject to taxation. By law the taxing unit may commence foreclosure of a tax lien on real
property after three years have passed since the first delinquency. Washington State's courts
have not decided whether the Homestead Law (Chapter 6.13 RCW) may give the occupying
home owner a right in the forced sale of the family residence for delinquent general property
taxes to retain the first $30,000 of proceeds of the sale. (See Algona v. Sharp, 30 Wn. App. 837,
638 P.2d 627 (1982), holding the homestead right superior to liens for local improvement district
assessments).
AUTHORIZATION OF DEBT
The power of the City to contract debt of any kind is controlled and limited by state law. All debt
must be set forth in accordance with detailed budget procedures and paid for out of identifiable
receipts and revenues. The budget must be balanced for each fiscal year. It is unlawful for an
officer or employee of the City to incur liabilities in excess of budgetary appropriations.
GENERAL OBLIGATION INDEBTEDNESS
Under the Constitution and statutes of the State, the City may incur two types of general
obligation indebtedness (including bonds). The two types are primarily differentiated by the
limits on the real and personal property taxes which may be collected for the payment thereof.
Limited tax general obligation indebtedness is payable from taxes upon all the taxable property
in the City which may be imposed by the City within the limitations prescribed by State statute
without a vote of the people (sometimes referred to as "non-voted debt" or "non-voted bonds" or
"councilmanic bonds"). The statutory limits on the levy of such taxes are described in the section
herein entitled "LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS."
Unlimited tax general obligation indebtedness is payable from taxes without limitation as to rate
or amount, imposed upon all taxable property in the City. Unlimited tax indebtedness may be
incurred only after approval by 60% of the City voters at an election in which the total vote cast
exceeds 40% of the votes cast at the last preceding general election of the City or State. Such
unlimited tax indebtedness is sometimes referred to as "voted debt," "voted bonds" or "unlimited
tax bonds."
Bonds issued to refund outstanding general obligation indebtedness of either type may be issued
without voter approval.
LIMITS ON AMOUNT OF GENERAL OBLIGATION INDEBTEDNESS
State statutes limit the total principal amount of all City general obligation indebtedness incurred
for "general" purposes, both limited tax and unlimited tax, to 2.5% of the actual value of taxable
property within the City. Within this 2.5% limitation, non-voted indebtedness is further limited
to 1.5% of the value of such taxable property.
The City is additionally authorized to incur general obligation indebtedness for the following
"special" purposes, with voter approval, in the total principal amount of up to the following
percentages of the actual value of taxable property within the City: water, artificial light and
sewers: 2.5%; open space and park facilities: 2.5%. The combination of unlimited tax and
limited tax general obligation debt for all purposes cannot exceed 7.5% of the City's assessed
valuation.
The State statutory limits on City general obligation indebtedness described in this section are
more restrictive than those contained in the State Constitution. Both the Constitutional and
statutory debt limits may be exceeded if necessary to meet obligations made mandatory by State
law or, if necessary, to maintain the corporate existence of the City.
In computing total general obligation indebtedness, the following "assets" may be deducted
against the principal amount of indebtedness outstanding: (a) money and investments on deposit
in general obligation bond retirement funds: (b) taxes (both current and delinquent) levied for the
payment of general obligation indebtedness; and (c) delinquent (but not current) taxes due the
general fund.
In addition to limits on the total principal amount of general obligation indebtedness described in
this section, the Constitution and statutes of the State impose other limitations on the City's levy
of taxes upon real and personal property (See section herein entitled "TAXING POWERS AND
LIMITATIONS",)
AUTHORIZATION OF SHORT-TERM DEBT
As a result of 1982 legislation, any Washington municipal corporation may borrow money and
issue short-term obligations, the proceeds of which may be used for any lawful purpose. Short-
7
term obligations may be issued in anticipation of the receipt of revenues, taxes, or grants or the
sale of (1) general obligation bonds if the bonds may be issued without the consent of the voters
or if previously ratified by the voters; (2) revenue bonds if the bonds have been authorized by
ordinance or resolution; or (3) local improvement district bonds if the bonds have been
authorized by ordinance or resolution. These short-term obligations shall be repaid out of money
derived from the soume or sources in anticipation of which they were issued or from any money
legally available for this purpose.
Additionally, the City may incur short-term indebtedness in the following ways: first, in an
emergency, the Council members may put a plan into effect and authorize indebtedness outside
the current budget. All expenditures for emergency purpose shall be paid by warrants from any
available money in the fund properly chargeable with such expenditures. If there is insufficient
money on hand in the fund, the warrants become registered interest-bearing warrants. In adopting
the budget for any fiscal year, the Council members shall appropriate funds to retire any
outstanding registered warrants issued since the adoption of the last preceding budget. Second,
the City may, without a vote of the electors, purchase property on a conditional sales contract if
the total contract amount, together with the other non-voted general obligation indebtedness of
the City, does not exceed 3/4 of one percent of the value of taxable property in the City; any item
so purchased must be budgeted for payment in accordance with the terms of the contract.
TAXING POWERS AND LIMITATIONS
Pursuant to RCW 84.52.043, cities may levy, without a vote of the residents residing therein, a
maximum of $3.375 per thousand for general city purposes (the "regular levy"). Cities with full-
time firemen may levy an additional $.225 per thousand to fund the city's Fireman's Pension
Fund (RCW 41.16.060), thus creating a maximum annual levy rate of $3.60 per thousand. The
City is currently levying $3.3573 per thousand dollars of taxable assessed valuation for its
regular levy.
According to RCW 27.12.390, any city or town annexed to a rural library district, island library
district, or inter-county rural library district, such as the City, shall be entitled to levy up to three
dollars and sixty cents per thousand dollars of assessed valuation less any regular levy made by
such library district in the incorporated area, notwithstanding any other provision of law.
A city's regular property taxes are subject to the provisions of a state statute limiting the growth
of annual property taxes (RCW 84.55.010). The limitation provides that the regular property
taxes payable in the following year shall not exceed one-hundred and six percent (106%) of the
amount of the single highest regular levy amount lawfully levied by the municipal entity in the
three immediately preceding calendar years plus an additional amount due to the incremental
assessed valuation increase in the municipal entity caused by new construction and property
improvements. The regular property taxes levied by a city may be increased above the 106%
limitation upon the affirmative vote of a majority of the voters residing in the municipal entity at
an election held for such purposes (RCW 84.55.050).
On March 6, 1997, the State Legislature enacted Senate Bill 5835 (the "Property Tax Act")
which is subject to a state-wide referendum for adoption and ratification or rejection at the
November 11, 1997, general election (1997 Laws Chapter 3). If adopted by the voters, a
municipality's tax levy would be limited to an amount of 100% of the highest property tax levy
of the three most recent years multiplied by a limit factor. The limit factor is defined in the
Property Tax Act as (i) the lesser of 106% or 100% plus inflation, or (ii) 106% or less, if
approved by a majority plus one vote of the governing body of the municipality upon a finding of
substantial need.
8
AUDITING OF CITY FINANCES
The State Auditor is required to examine the affairs of cities at least once every two years. The
examination must include, among other things, the financial condition and resources of the City,
whether the laws and constitution of the State are being complied with, and the methods and
accuracy of the accounts and reports of the City. Reports of the Auditor's examinations are
required to be filed in the office of the State Auditor and in the auditing department of the City.
AUTHORIZED INVESTMENTS
Chapter 39.59 RCW limits the investment of public funds to the following authorized
investments: bonds of the State and any local government in the State, which bonds are rated at
the time of investment in one of the three highest credit ratings by a nationally recognized rating
agency; general obligation bonds of other states and subdivisions thereof so long as those bonds
are rated in one of the three highest categories; registered warrants of a local government within
the same county as the entity making the investment; and any investment authorized by law for
the treasurer of the State or any local government exclusive of certificates of deposit of banks or
.bank branches not located in the State. Under chapter 43.84 RCW, the State Treasurer may invest
~n non-negotiable certificates of deposit in designated qualified public depositories; in
obligations of the U.S. government, its agencies and wholly owned corporations; in bankers'
acceptances; in commercial paper; in repurchase agreements; in the obligations of the federal
home loan bank, federal national mortgage association and other government corporations
subject to statutory provisions. Utility revenue bonds and warrants of any city and bonds or
warrants of a local improvement district are also eligible investments (RCW 35.39.030).
Any municipal corporation, including the City, may authorize the investment of funds not
required for immediate expenditure by the County Treasurer. Such funds of the City, including
debt service funds, may be invested by the County Treasurer. The County Treasurer may, upon
the request of one or more units of local government that invest their money with the County,
combine those monies for the purposes of investment (RCW 36.29.022). The office of the
County Treasurer receives up to five percent of the earnings on such investments, subject to a
maximum of fifty dollars on each transaction, as its investment service fee. The County
Treasurer may reimburse its office for any expenses incurred in the establishment and
maintenance of such a County investment pool (RCW 36.29.024).
Local Government Investment Pool
The State Treasurer's Office administers the Washington State Local Government Investment
Pool (the "LGIP"), a $1.25 billion fund that invests money on behalf of more than 350 cities,
counties and special taxing districts. In its management of LGIP, the State Treasury adheres, at
all times, to the principles appropriate for the prudent investment of public funds. These are, in
priority order, (i) the safety of principal; (ii) the assurance of sufficient liquidity to meet cash
flow demands; and (iii) to attain the highest possible yield within the constraints of the first two
goals. Historically, the LGIP has had sufficient liquidity to meet all cash flow demands.
The LGIP, authorized by chapter 43.250 RCW, is a voluntary pool that provides its participants
the opportunity to benefit from the economies of scale inherent in pooling. It is also intended to
offer participants increased safety of principal and the ability to achieve a higher investment
yield than would otherwise be available to them. The LGIP is a conservatively managed, highly
liquid money market fund. The pool is restricted to investments with maturities of one year or
less, and the average investment life typically is less than 90 days. Permissible investments
include U.S. government and agency securities, bankers' acceptances, high quality commercial
paper, repurchase and reverse repurchase agreements, and certificates of deposit issued by
qualified Washington State depositories.
5~/ 9
Authorized Investments for Bond Proceeds
In addition to the eligible investments discussed above, bond proceeds only may also be invested
in mutual funds with portfolios consisting of U.S. government and guaranteed agency securities
with average maturities of lesS than four years; municipal securities rated in one of the four
highest categories; and money market funds consisting of the same, so long as municipal
securities held in the fund(s) are in one of the two highest rating categories. Bond proceeds may
also be invested in shares of money market funds with portfolios of securities otherwise
authorized by law for investment by local governments (RCW 39.59.030).
The City's Investments
The investments of the City, except those of the Community Development Block Grant Fund, are
managed in a pooled format. Interest earnings are distributed monthly to the individual funds
based on their respective balances at the beginning of the month. These pooled investments are
classified on the balance sheet as cash and equivalents. As required by state statue, all
investments and deposits of the City's funds are obligations of the U.S. Government, U.S.
agency issues, deposits with the State Treasurer's Investment Pool, prime bankers' acceptances,
deposits with Washington State banks and savings and loan institutions or repurchase agreements
with authorized securities as collateral.
10
NET DIRECT DEBT AND ESTIMATED NET
OVERLAPPING GENERAL OBLIGATION DEBT
(As of August 31, 1997)1
Direct Debt:
Voted General Obligation Bonds Outstanding .......................$
Non-Voted Bonds Outstanding ...............................................
Bank Line of Credit Outstanding ............................................
Tax Anticipation Notes Outstanding ......................................
Lease-Purchase Contract Outstanding ....................................
The Bonds ...............................................................................
Less: Bond Fund Balance .......................................................
255,000
8,907,630
8,210
1,250,000
15,873
1,215,000
(233,214)
Net Direct Debt ..........................................................................
Estimated Net Overlapping Debt:
Net G.O. Debt Percent of Amount of
Outstanding Overlep Overlap
Kitsap County ..................................... $51,804,818 10.96%
Port of Bremerton ................................ 1,920,000 25.78
Bremerton School District No. 100-C 28,705,000 73.93
Central Kitsap School District No. 401 88,285,000 1.11
South Kitsap School District No. 402 11,092,000 .05
$ 5,675,656
494,976
21,221,135
976,130
5,276
$ 11,418,499
Estimated Net Overlapping Debt: ...........................................
Net Direct Plus Estimated Net Overlapping Debt: ..........................................
BONDED DEBT RATIOS OF THE CITY
$ 28,373,173
$ 39,936,672
Preliminary 1997 Assessed Valuation for Collection Year 1998 ................. $ 1,316,862,3322
Estimated City Population (1997) ................................................................. 39,5103
Assessed Valuation Per Capita ..................................................................... $ 33,330
Net Direct Debt to Assessed Valuation ............................................................ 87%
Net Direct and Estimated Overlapping Debt to Assessed Valuation ............ 3.02%
Net Direct Debt Per Capita ........................................................................... $ 289
Net Direct and Estimated Overlapping Debt Per Capita ...............................$ 1,007
Adjusted to reflect the issuance of the Bonds; excludes the Refunded Bonds.
Assessed valuation is stated as the full assessed value of all taxable real and personal property in the City. Preliminary value
provided by the Kitsap County Assessor's Office as of 9-29-97.
Provided by the City.
Il :
53
STATUTORY DEBT LIMIT CALCULATION FOR THE CITY
(As of August 31, 1997)
Current Assessed Valuation2 ...............................................................................
General Purposes
Non-Voted Debt Capacity (1.5 of 1% of Assessed Valuation) .....................
Less:
Less:
Less:
Less:
Less:
Plus:
Non-Voted Bonds Outstanding .................................................
Tax Anticipation Notes Outstanding .........................................
Executory Lease-Purchase Contracts ........................................
Bank Line of Credit Outstanding ..............................................
Non-Voted Portion of the Refunded Bonds ..............................
Bond Fund Balance ...................................................................
Remaining Non-voted G.O. Capacity ..................................
$ 1,316,862,332
$ 19,752,935
(8,9O7,63O)
(1,250,000)
(15,873)
(8,210)
(70,000)
233,214
$ 9,734,436
Voted Debt Capacity (2.5% of Assessed Valuation) ....................................
Less:
Less:
Less:
Less:
Less:
Plus:
Voted Bonds Outstanding (Including the Bonds) .....................
Non-Voted Bonds Outstanding .................................................
Tax Anticipation Notes Outstanding ........................................
Bank Line of Credit Outstanding ..............................................
Lease-Purchase Contract Outstanding .......................................
Bond Fund Balance ...................................................................
Total Remaining Capacity For General Purposes ........................................ $
Utility Purposes
Voted Debt Capacity (2.5 % of Assessed Valuation) ................................... $
Less: Voter Approved Bonds Outstanding .........................................
Remaining Capacity for Utility Purpose .............................................. $
Parks and Open Space Purposes
Voted Debt Capacity (2.5 % of Assessed Valuation) ................................... $
Less: Voter Approved Bonds Outstanding .........................................
Remaining Capacity for Parks and Open Space .......... ~ ..................... $
32,921,558
(1,470,000)
(8,907,630)
(1,250,000)
(8,210)
(15,873)
233,214
21,503,059
32,921,558
0
32,921,558
32,921,558
0
32,921,558
Adjusted to reflect the issuance of the Bonds.
Assessed valuation is stated as the full assessed value of all taxable real and personal property in the City. Preliminary value
provided by Kitsap County Assessor's Office as of 9-29-97.
12
Collection
Year
1997
1996
1995
1994
1993
1992
NOTE:
AD VALOREM TAX COLLECTION RECORD OF THE CITY I
Collected Collected as of
Taxable Year of Levy Au~_u~t ~1, 1997
Assessed Tax
Valuation2 I. evy Amount Percent Amount Percent
$ 1,299,548,001 $ 4,945,410 N/A3 N/A3 N/A3 N/A3
1,223,940,521 4,681,638 $ 4,478,455 95.66% $4,572,088 97.66%
1,203,299,197 4,476,487 4,247,668 94.88 4,429,036 98.94
1,169,824,600 4,144,873 3,973,275 95.86 4,133,267 99.72
1,072,545,656 4,292,888 4,110,011 95.74 4,286,878 99.86
949,t07,196 3,544,019 3,397,651 95.87 3,534,805 99.74
Taxes are due and payable on April 30, of each year. At least one half of the tax amount due must be paid
on or before April 30, or else the total amount becomes delinquent on May 1. The second half of the tax
due is payable on or before October 31, becoming delinquent November 1.
AD VALOREM PROPERTY TAX RATES1
(Rates In Dollars per $1,000 of Assessed Valuation)
City School Emergency
Collection General City City State Kitsap Port of District No. Medical Regional
Year Fund Bonds Soecial School C¢)unty Bremerton 100C PUD Services Library_
1997 $3.3469 $.2153 $ 0 $3.6467 $1.664l $.4338 $5.133l $.0998 $.2500 5.9781
1996 3.3573 .2255 0 3.4848 1.6347 .4287 5.1551 .0939 .2500 .4677
1995 3.2470 .2308 0 3.5508 1.2249 .4079 2.1387 .0940 .2500 .4595
1994 3.0635 .2393 0 3.4297 1.1731 .3897 5.0440 .0865 .2490 .4447
1993 3.0871 ,2543 .4339 3.3978 1.2383 .3955 5.2311 .0904 .2500 .4283
BREMERTON LEVY RATES PER $1,000 OF ASSESSED VALUE
Collection Year General EMS Bonds Total
1997 $ 3.3469 $ .2500 $ .2153 $ 3.8122
1996 3.3573 .2500 .2255 3.8328
1995 3.2470 .2500 .2308 3.7278
1994 3.0635 .2490 .2393 3.5518
1993 3.0871 .2500 .68523 4.0253
Total
$15.7678
15.0977
11.6036
14.1210
14.8067
1 Source: Kitsap County Treasurer
2 Assessed valuation is stated as the assessed valuation of all taxable real and personal property in the City. Preliminary
assessed value for collection year 1998 as of 9-29-97 is $1,316,862,332.
3 Not available: in process of collection.
3 Includes $.4339 special levy for law and justice.
13
Revenues: Taxes
Licenses & Permits
Intergovernmental
Charges for Services
Fines & Forfeits
Miscellaneous
Total Revenues
COMPARATIVE STATEMENT OF GENERAL FUND
REVENUES AND EXPENDITURES 1
(Fiscal Year Ending December 31)
1996 1995 1994
1993
$ 15,498,917 $ 14,501,567 $ 14.137,828 $ 13,340,322
312,203 298,989 390,454 362,968
742,432 847,272 728,407 778,927
1,864,848 1,783,646 1,394,815 1,502,067
433,775 483,964 593,093 556,447
342.700 248.743 240.672 261.198
$ 19,194,875 $ 18,164,181 $ 17,485,269 $ 16,801,929 $
Expenditures:
General Government $ 5.313,516 $ 5,009,311 $ 4,843,656 $ 5,039,485
Security of Persons & Prop. 9,313,570 8,614,262 8.219,945 7,850,957
Physical Environment 942,764 848,346 587.931 698,08i0
Transportation 959,327 850,639 840,530 879,838
Economic Environment 276,689 454,250 514,320 448,824
Mental & Physical Health 30,818 264,239 250,493 249,239
Culture & Recreation 1,867,204 1,566,669 1,426,763 1,323,285
Redemption of Gen. L.T. Debt 0 0 24.672 30,735
Debt Service 85,540 59,860 44.593 18,414
Capital Outlay 4Q4.888 4~6.005 385.414 277. I 13
Total Expenditures
Other Financing Sources (Uses)
Operating Transfers In
Operating Transfers Out
General Fixed Assets Disposal
Proceeds & General L.T. Debt
Total Other Financing Sources
(Uses)
Fund Balance, lanuary 1
Prior Year's Corrections
Residual Equity Tranfers
Other Equity Changes
$ 19,194,316 $ 18,153,581 $ 17,138,317 $ 16,815,970 $
$ 196.671 $ 6,000 $ 6.0(~ $ 6,000
(357,180) (307,836) (398.376) (236,725)
36,671 2,886 59,640 0
237.700 9 9 D
1992
TOTAL ENDING FUND BALANCE
12,254,300
367,369
1,199,015
1,265,887
579,071
g95.810
15,961,452
4,702,330
7,326,703
655,845
805,809
352,504
236,594
1,178,131
28,393
125,479
228.162
15,639,950
6,000
(334,764)
1,893
$ 113,916 $ (298,950) $ (323.736) $ (230,725) $ 326,871
$ 709,671 $ 1,064,368 $ (44.548) $ 206,399 $ 217,464
0 0 0 0 0
6,435 (65,128) 9,717 (6,108) (1,545)
30.554 (I.219) 1.084.983 ¢73) {4,149)
$ 860,576 $ 709,671 $ 1,064.368 $ (44,548) $ 206,401
Ending Fund Balance $
CONTINGENCY RESERVE FUND1,2
YEAR-END BALANCES
1996 1995 1994 1993 1992
673,110 $ 709.040 $ 704,922 $ 387,205 $ 360,523
Source: City of Bremerton Annual Financial Reports. All years have been audited by the Washington State Auditor's
Office.
Money in this fund in excess of $650,000 is transferred to the General Fund to finance capital purchases.
14
1997 GENERAL FUND BUDGET
(Fiscal Year Ending December 31)
REVENUES
Beginning Fund Balance ........................................................ $
Taxes ......................................................................................
Licenses and Permits ..............................................................
Intergovernmental Revenue ...................................................
Charges for Services ...............................................................
Fines and Forfeitures ..............................................................
Mescellaneous and Other .......................................................
Total Revenue ............................................................................ $
EXPENDITURES
General Government
City Council ........................................................................... $
Executive ................................................................................
Administrative Services2 .......................................................
Police & Fire Pension .....................................................
Intergovernmental Service ..............................................
Misc. Non-Departmental ................................................
Legal Department ...................................................................
Human Resources ...................................................................
Community Development ......................................................
City Auditor ...........................................................................
Public Safety
Police Department ..................................................................
Fire Department .....................................................................
Public Works
General Facilities ...................................................................
Engineering ............................................................................
Transportation ........................................................................
Leisure Services
General Parks .........................................................................
Recreation ...............................................................................
Senior Center ..........................................................................
Pool .........................................................................................
Cemetery Services ..................................................................
Athletics .................................................................................
Tax Anticipation Note Debt Service ......................................
Total Current Expenditures ................................................... $
1997
458,500
15,778,000
342,625
666,098
1,634,794
430,361
2.964,095
22,274,473
146,675
204,162
1,915,763
1,315,057
110,986
1,349,771
460, ! 33
222,867
700,189
84,983
5,793,222
3,571,381
454,908
466,986
977,105
1,026,162
198,462
154,625
264,694
69,938
286,404
2.500,000
22.274,473
Soume: City of Bremerton.
City Clerk, Treasurer and Information Services are combined under Administrative Services.
15 :
5'7
SCHEDULE OF GENERAL OBLIGATION BOND DEBT SERVICE FOR THE CITY
(As of December 31)
Years
1997
1998
1999
2000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Total
Outstanding Bonds
Non-Voted Voted General Obligation Bonds
General Obligation Bonds Outstanding The Bonds Total
Debt
Princl_Dal Interest Principal Interest principal Interest ~
$ 365.781 $ 537.438 $ 55.000 $ 8.550 $ 0
428.769 518.715 195.000 9.555 30.000
452.391 496.105 60.000 1.800 15.000
480.758 471,815 0 0 170.000
680,000 445,850 0 0 185.000
720.000 406.057 0 0 185.000
760.000 363.213 0 0 205.000
810.000 317,252 0 0 135.000
855.000 267,563 0 0 140.000
910.000 213.872 0 0 150.000
965.000 155.663 0 0
275,000 92,475 0 : 0 0
290,000 75,370 0 0 0
315,000 57,195 0 0 0
335,000 37,017 0 0 0
275,000 15.537 ~ ~ 0
$ 8.917.699 $ 4.471,137 $ 310,000 $ 19.905 $ 1.215.000
CITY PROFILE
The City was incorporated in 1901 and operates as Home Rule Charter City with a Mayor
Council form of government. The Council is comprised of nine members, elected by district by
the citizens of the City, each serving a four-year term. The Council Members are part-time
elected officials who exercise the legislative powers of the City and determine matters at policy.
The Mayor, a full-time elected official, is the chief executive officer of the City. The Officers
and department directors are appointed by the mayor with Council approval.
The City provides a full range of municipal services including fire and police protection, parks
and recreation facilities/activities, streets, planning, zoning and general administrative services.
The City operates water, sewer and stormwater utility systems. Currently, there are 322 full-time
employees of the City.
Key Personnel
Lynn Hot'ton, Mayor: Ms. Horton began her first term as Mayor of the City in 1994. Before her
election as mayor, she served for six years on the Bremerton City Council. She is the past Chair
and current Board Member of the Kitsap Regional Planning Council, and a board member of
Kitsap Transit, Kitsap County Cen-Com and the Bremerton-Kitsap County Health Department.
Ms. Horton is a graduate of the University of Washington and has been a resident of the City
since 1974.
Richard Hanna, City Treasurer: Mr. Hanna has been the Treasurer of the City of Bremerton since
1986. Before joining the City, he was Treasurer of the City of Centralia, Washington. Mr. Hanna
received his Bachelor's Degree in Accounting from Western Washington University in 1974 and
a Masters of Business Administration Degree in Finance from University of Puget Sound in
1983. Mr. Hanna is a member of the Washington Finance Officers Association, Washington
Municipal Treasurers Association and Puget Sound Finance Officers Association.
Labor Relations
The City has entered into written agreements with each of the bargaining groups set forth below;
agreements contain provisions on such matters as vacations, sick leave, medical and dental
insurance, salaries, working conditions and grievance procedures.
Employees of the City represented by bargaining units are as follows:
Union Membership
Teamsters Local 589 130
Patrolman's Association 53
Police Management Association 5
International Association of 44
Fire Fighters Local 437
Contract Period Expiration Date
3 yr. 12/31/97
2 yr. 12/31/961
3 yr. 12/31/99
3 yr. 12/31/98
In accordance with State requirements, the City conducts full negotiations with all bargaining
units. The City's management considers its relations with employees to be satisfactory.
Under negotiation
17
GENERAL AND ECONOMIC INFORMATION
The City of Bremerton, is located on Puget Sound, approximately 15 miles west of Seattle and
35 miles north of Tacoma. The largest city in Kitsap County (the "County"), Bremerton was
incorporated in 1901 and has an estimated 1997 population of 39,510. Kitsap County, covering
393 square miles of land, also includes the following other incorporated areas: Bainbridge Island
(1997 population 18,920), Port Orchard (1997 population 6,965) and Poulsbo (1997 population
6,175).
Military Presence
The economy of the City is closely tied to the United States Navy. The Puget Sound Naval
Shipyard in Bremerton ("PSNS") is the largest Naval shipyard on the Pacific Coast and is the
only West Coast shipyard capable of working on nuclear ships. With 9,002 civilian employees,
10,219 military personnel, and 12,500 military family members, the shipyard is also the only
facility capable of decommissioning and recycling nuclear submarines which are being
disassembled in accordance with Strategic Arms Limitations Treaties. The shipyard is the largest
naval employer in the State. The economic impact of PSNS locally is $700 million per year.
The Naval Supply Center is another local military facility in the City, with about 200 employees.
The addition of two admirals to PSNS in 1997 reflects the Navy's commitment to the area.
Puget Sound is now the third largest Navy fleet concentration in the U.S. The Navy recently
announced that two additional Navy vessels will reolcate to Bremerton as their home port in
1998: The USS Mount Hood (with a crew of 370) and the USS Bridge (with a crew of 550).
Located a few miles north of the City of Bremerton is the Naval Submarine Base at Bangor.
Bangor serves as a home base for Trident-Missile submarines, the USS Parche fast attack
submarine and various support commands. The base provides employment to 5,000 civilians,
and 5,500 military personnel. Another 10,000 military family members are connected to the
base. As the only operational base of its kind on the Pacific Coast, Bangor is considered to be
very important to the country by the Department of Defense. Annual local economic impact of
Bangor is $230 million are local residents.
Another military installation located near the City is the Naval Undersea Warfare Engineering
Station at Keyport. The station tests and maintains torpedoes, provides maintenance support for
fire control equipment and mines, and provides other engineering-related services for undersea
warfare. The Undersea Warfare Station employs approximately 1,950 civilian, 150 military and
200 military family members are local residents.
Recent base closures in other geographic regions outside of Washington have had a positive
impact on growth in the City and Kitsap County. PSNS is the new home of the Carrier Group
Three staff with 70 additional personnel and the USS Bridge AOE (10) with an additional 650
personnel.
U.S. Navy Projects in Kitsap County
Recent historical and projected spending for Navy construction and related facilities support
work in Kitsap County provided by the U.S. Navy Engineering Field. Activity Northwest office
as follows:
Kitsap County
Fiscal Year Amount (millions)
1995 $ 200.7
1996 192.3
1997 142.3
1998 127.8
1999 115.8
2000 109.3
18
Among the larger planned Navy Construction projects over the next five years in Kitsap County
are the following:
Fiscal Project Location Estimated Value Range
Year · ($Million)
1998
1999
2000
2001
2002
Utility Monitor and Control System
Child Development Center
W/S Housing Revitalization Keyport
W/S Housing OlallaIJP
Security Upgrade (SWFPAC)
Naval Hospital Addition
Motor Transfer FACMODS
U&SI (SWFPAC)
RB Magazine Modifications (SWFPAC)
Servmart
QAO Facility
Dredging Piers 3B&3D
Kitchens/Baths, Phase V (Housing)
W/S Revitalization
Community Support Facility
Oily Wastewater Collection
Hazardous Waste Storage
Pier Delta Expansion
Ammunition Wharf (SWFPAC)
Shore Power (TRF)
Waterfront Shops (TRF)
Waterfront Service Supply Bldg.
W/S Revitalization FY75 Phase II
Keyport 0-1
PSNS 1-5
Bangor 1-5
PSNS 5-10
Bangor 1-5
Bremerton 10+
Bangor 0-1
Bangor 1-5
Bangor 1-5
FISC i -5
PSNS 5-10
PSNS 5-10
Bangor 5-10
Jackson Park 5-10
PSNS 1-5
PSNS 5-10
PSNS 5-10
PSNS I0+
Bangor 0-1
Bangor 1-5
Bangor 1-5
PSNS 1-5
Jackson Park 5-10
Other Major Employers
The Port of Bremerton (the "Port") operates the Bremerton National Airport and the 560-acre
Olympic View Industrial Park, both located approximately 10 miles southwest of the City. The
park includes 22 firms which employ a total of approximately 500 people. The Port has recently
been designated a foreign trade zone, which is expected to enhance international trade locally.
Several companies are undergoing expansion near or adjacent to the Bremerton National Airport,
including an aircraft parts recycling company, and an electro-mechanical products manufacturer,
which would employ up to 65 people within five years.
Bremerton National Airport is the largest airport in the County, with a 6,200-foot runway and
full instrumentation and lighting systems. The airport can handle all general aviation aircraft and
most transport and military planes. Charter passenger and air freight services are available to
SeaTac Airport, the major international airport in the Puget Sound area. The airport is currently
undergoing improvements.
Health care needs are met by several facilities in the Bremerton area including the Naval
Hospital - Bremerton with 380 civilian, 750 military and 2,500 military family members.
Harrison Memorial Hospital in Bremerton has 1,300 employees. In late 1993, Harrison
Memorial completed a $20.5 million expansion project which doubled the number of operating
rooms; expanded the laboratory and administration areas; and provided additional space for
patient education and an outpatient mental health clinic. A number of nursing homes and
reitrement complexes are also located in Bremerton.
Olympic College is a two-year public community college located in Bremerton, with an
enrollment of approximately 4,310 (full-time equivalents) and 600 employees. The college
offers associate of arts degrees in four fields, as well as adult education and non-credit courses,
and began a four-year degree program (called "2-Plus-2") in 1994. The 2-Plus-2 degree program
19 ·
is associated with the University of Washington, Tacoma branch. The Olympic College campus
will be expanding in the years ahead due to a private donation of 20 acres of land for that
purpose near Poulsbo.
New Developments
Among the projects recently completed or proposed for development in Bremerton are the
following:
· Development of the first phase of a Planned Unit Development, Sinclair Landing, will soon
begin on the downtown waterfront. A combination of public and private uses make up this
38-acre project, including: a transit center, new ferry terminal, expansion of the waterfront
park, expansion of the marina, a new terminal for passenger-only ferry service, parking,
retail use, restaurants, offices, an 80-room inn, a six-plex cinema and multi-family housing,
all connected with pedestrian corridors. The majority of the project is expected to take
three years to complete and will include private investment of over $150 million. The
transportation center will constitute the first element of the project to be constructed. A
new ferry terminal, new dock for two new passenger-only ferries and adjacent transit center
will be constructed with funding from Kitsap Transit Authority and the Washington State
Department of Transportation ("DOT"). Construction is expected to begin by the end of
1997.
· The Port of Bremerton is developing a 128-acre light industrial business complex known as
West Puget Tech Park. The first phase of the project includes the construction of a 30,000
square-foot incubator building on 2.45 acres with infrastructure. Potential employment is
85 to 100 people for this phase. The remainder of the park is intended to be developed over
a 1 O-year period, on a demand basis.
· A Downtown Revitalization Task For~e has been formed in Bremerton as a volunteer
group of downtown business and government representatives and interested citizens. Its
purpose is to improve the appearance of and bring new business and art concerns to the
area. Projects to date include flower barrels, relocation of the Kitsap Historical Museum to
downtown Bremerton, an adopt-a-block program, local concerts and festivals.
· Pope Resources, a timber and land management company based in Poulsbo, and its
subsidiary, Olympic Resource Management, have recently obtained land within the City
that is planned for development as a 61-acre business park and 209 acres for 450 new
homes. Known as West Hills, the Project ....................
· The Kitsap County Economic Development Council (EDC) has begun a five-year program
to recruit 2,001 new primary jobs in Kitsap County, in a major effort to diversity the local
economy. It is expected that at least 2,400 new secondary jobs will result from this
campaign, and will generate more than $80 million a year to the local economy. Known as
"Business Connection 2001", this campaign is being patterned after other successful
programs undertaken in communities throughout the state. The EDC's program began in
1997 with solicitation of funds needed to attract new businesses.
· Other new developments in the City include the $3 million renovation of the historic
Admiral Theater, a new art gallery, computer game state and restaurant, all in the
downtown area.
· The Doctors Clinic, a regional health care provider, recently relocated its headquarters and
70 of its employees from various sites to an existing downtown office building.
· A permit application has been received by the City for the development of a 34-unit
Alzheimer's care facility on a 2.4-acre site.
· The City is conducting a site plan review of the proposed Auto Center Industrial Park. The
project includes clearing and grading of roadways and building pads for development of a
16.4 acre industrial park.
· The Bremerton Black Entrepreneurs Association is reviving the Roxy Theatre in downtown
Bremerton for use as a concert hall and for other live entertainment. Total cost of the
project is $3 million.
20
Following are economic indicators of the City and the County.
CITY OF BREMERTON AND
KITSAP COUNTY POPULATION I
City of Other Kitsap County
Year Bremerton Incorporated Unincorporated
1997 38,600
1996 38,496
1995 39,610
1994 35,920
1993 36,380
1992 38,990
1991 37,040
1990 38,142
32 060
31 210
29 915
28 625
28 160
27 405
26 639 2
12 913
158.740
155.120
151.075
148 655
145.460
139205
132821
138676
Kitsap
County
Total
229,400
224,700
220,600
213,200
210,000
205,600
196,500
189,731
Year
1996
1995
1994
1993
1992
1991
TAXABLE RETAIL SALES 3
Kitsap Coun~
$ 1,836,198,934
1,768,304,057
1,774,185,000
1,658,975,823
1,551,862,692
1,438,615,382
City of Breme~on
$ 477,467,218
451,277,414
461,026,409
422,329,475
409,553,371
390,094,567
CITY OF BREMERTON MAJOR TAXPAYERS4
Taxpayer
Puget Sound Power and Light
US West Inc.
HMI, Inc.
Michael Connolley
Viewcrest Villages Limited Partnership
Charles & Joan Haselwood
Merit Company
Overlake Management Company
Cascade Natural Gas
Homing Thiery Partnership
Business
Electric Utility
Telecommunications
Developer
Olympic College Business Svcs.
Apartments
Retail
Retail
Retail
Gas Utility
Apartments
Assessed Valuation for
1997 Collection Year
$ 26,528,942
19,510,781
9,735,140
8,022,400
7,800,000
7,010,000
6,032,900
6,000,000
5,910,993
5,765,000
1 Source: Washington State Office of Financial Management and U.S. Census.
2 The large increase is due to the annexation of the unincorporated areas of Bainbridge Island to the new City of Bainbridge
Island.
3 Source: Washington State Department of Revenue.
4 Source: Kitsap County Assessor's Office.
21
SEATTLE-BREMERTON FERRY TRAFFIC STATISTICS I
Year Number of Vehicles Number of Passengers
1996 731,926 1,863,596
1995 751,266 1,820,433
1994 719,125 1,719,414
1993 676,031 1,694,234
1992 667,251 1,856,310
1991 659,827 1,806,744
KITSAP COUNTY AND WASHINGTON STATE
LABOR FORCE AND AVERAGE ANNUAL UNEMPLOYMENT2 3
Resident Civilian Average Annual Total
Year Labor Force Unemployment Employment
1996 93,500 6,300 87,200
1995 89,600 6,000 83,600
1994 88,600 5,300 83,300
1993 89,600 6,100 83,500
1992 88,500 5,300 83,200
1991 85,200 4,200 81,000
Kitsap County (%) Washington (%)
6.7 6.5
6.7 6.4
6.0 6.4
6.8 7.6
6.0 7.6
4.9 6.4
KITSAP COUNTy'AND WASHINGTON STATE
INCOME ESTIMATES4
Kitsap County
Per Capita Income
Year Personal Income ($000) Kitsap County Washington
1995 $ 4,529,000 $ 20,004 $ 23,709
1994 4,293,000 19,802 22,715
1993 4,108,000 19,272 22,010
1992 3,902,000 18,607 21,333
1991 3,601,000 17,971 20,168
TAX EXEMPTION
Exclusion from Gross Income
In the opinion of Bond Counsel, assuming compliance by the City with applicable requirements
of the Internal Revenue Code of 1986, as amended (the "Code"), including arbitrage
requirements under Section 148 of the Code, interest on the Bonds is excluded from gross
income of registered owners for federal income tax purposes under existing federal law and is
not an item of tax preference for purposes of the alternative minimum tax applicable to
individuals.
Source: Washington State Department of Transportation, Marine Division. Passengers total includes the passenger-only
ferries and vehicle fen'les.
2 Includes nonagricultural wage and salary, self-employed, unpaid family workers, domestics, agricultural workers, labor
disputants.
3 Source: Washington State Department ol: Employment Security.
4 Source: U.S. Bureau of Economic Analysis.
~ 22
Continuing Requirements
The City is required to comply with certain requirements of the Code after the date of issuance of
the Bonds in order to maintain the exclusion of the interest on the Bonds from gross income for
federal income tax purposes, including, without limitation, requirements concerning the qualified
use of Bond proceeds and the facilities financed or refinanced with Bond proceeds, limitations on
investing gross proceeds of the Bonds in higher yielding investments in certain circumstances
and the requirement to calculate and rebate to the United States certain investment earnings on
gross proceeds of the Bonds in the event that all Bond proceeds have not been spent within
certain periods prescribed by the Code. The City has covenanted in the Ordinance to comply with
those requirements, but if the City fails to comply with those requirements, interest on the Bonds
could become taxable retroactive to the date of issuance of the Bonds. Bond Counsel has not
undertaken and does not undertake to monitor the City's compliance with such requirements.
Corporate Alternative Minimum Tax
While interest on the Bonds also is not an item of tax preference for purposes of the alternative
minimum tax applicable to corporations, under Section 55 of the Code, tax-exempt interest,
including interest on the Bonds, received by corporations is taken into account in the
computation of adjusted current earnings for purposes of the alternative minimum tax applicable
to corporations (as defined for federal income tax purposes). Under the Code, alternative
minimum taxable income of a corporation will be increased by 75% of the excess of the
corporation's adjusted current earnings (including any tax-exempt interest) over the corporation's
alternative minimum taxable income determined without regard to such increase. A corporation's
alternative minimum taxable income, so computed, that is in excess of an exemption of $40,000,
which exemption will be reduced (but not below zero) by 25% of the amount by which the
co.~oration's alternative minimum taxable income exceeds $150,000, is then subject to a 20%
rmnlmum tax.
For taxable years beginning after December 3 l, 1997, the corporate alternative minimum tax is
repealed for a small business corporation that had average gross receipts of less than $5 million
for the 3-year period beginning after December 31, 1994, and such a small business corporation
will continue to be exempt from the corporate alternative minimum tax so long as its average
gross receipts do not exceed $7.5 million.
Tax on Certain Passive Investment Income of S Corporations
Under Section 1375 of the Code, certain excess net passive investment income, including interest
on the Bonds, received by an S corporation (a corporation treated as a partnership for most
federal tax purposes) that has Subchapter C earnings and profits at the close of the taxable year
may be subject to federal income taxation at the highest rate applicable to corporations if more
than 25% of the gross receipts of such S corporation is passive investment income.
Foreign Branch Profits Tax
Interest on the Bonds may be subject to the foreign branch profits tax imposed by Section 884 of
the Code when the Bonds are owned by, and effectively connected with a trade or business of, a
United States branch of a foreign corporation.
CERTAIN OTHER FEDERAL TAX CONSEQUENCES
Bonds are "Qualified Tax-Exempt Obligations" for Financial Institutions
Section 265 of the Code provides that 100 percent of any interest expense incurred by banks and
other financial institutions for interest allocable to tax-exempt obligations acquired after
August 7, 1986, will be disallowed as a tax deduction. However, if the tax-exempt obligations
are obligations other than private activity bonds, are issued by a governmental unit that, together
23
with all entities subordinate to it, does not reasonably anticipate issuing more than $10,000,000
of tax-exempt obligations (other than private activity bonds and other obligations not required to
be included in such calculation) in the current calendar year, and are designated by the
governmental unit as "qualified tax-exempt obligations," only 20 percent of any interest expense
deduction allocable to those obligations will be disallowed.
The City is a governmental unit that, together with all subordinate entities, reasonably anticipates
issuing less than $10,000,000 of tax-exempt obligations (other than private activity bonds and
other obligations not required to be included in such calculation) during the current calendar
year, and has designated the Bonds as "qualified tax-exempt obligations" for purposes of the 80
percent financial institution interest expense deduction. Therefore, only 20 percent of the interest
expense deduction of a financial institution allocable to the Bonds will be disallowed for federal
income tax purposes.
Reduction of Loss Reserve Deductions for Property & Casualty Insurance Companies
Under Section 832 of the Code, interest on the Bonds received by property and casualty
insurance companies will reduce tax deductions for loss reserves otherwise available to such
companies by an amount equal to 15 percent of tax-exempt interest received during the taxable
year.
Effect on Certain Social Security and Retirement Benefits
Section 86 of the Code requires recipients of certain Social Security and certain Railroad
Retirement benefits to take receipt or accruals of interest on the Bonds into account in
determining gross income.
Other Possible Federal Tax Consequences
Receipt of interest on the Bonds may have other federal tax consequences as to which
prospective purchasers of the Bonds may wish to consult their own tax advisors.
PRESERVATION OF TAX EXEMPTION
The City covenants, by the Bond Ordinance, that it will take all actions necessary to prevent
interest on the Bonds 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 Bonds or other funds
of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will
cause interest on the Bonds to be included in gross income for federal income tax purposes. The
City certifies that it has not been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be
relied upon.
ABSENCE OF MATERIAL LITIGATION
There is no litigation of any kind now pending or, to the knowledge of the City, threatened to
restrain or enjoin the issuance or delivery of the Bonds or in any manner questioning the
proceedings and authority under which the Bonds are issued or affecting the ability of the City to
pay the principal of or the interest on the Bonds.
CONTINUING DISCLOSURE
Basic Undertaking to Provide Annual Financial Information and Notice of Material Events
To meet the requirements of the United States Securities and Exchange Commission ("SEC")
Rule 15c2-12 (b) (5) (the "Rule"), as applicable to a participating underwriter for the Bonds, the
24
City will undertake (the "Undertaking") for the benefit of holders of the Bonds to provide or
cause to be provided, either directly or through a designated agent, to each nationally recognized
municipal securities information repository designated by the SEC in accordance with the Rule
("NRMSIR") and to a state information depository, if any, established in the State of Washington
(the "SID") annual financial information and operating data of the type included in this Official
Statement as generally described below ("Annual Financial Information"): and to each NRMSIR,
or the Municipal Securities Rulemaking Board ("MSRB") and to the SID, timely notice of the
occurrence of any of the following events with respect to the Bonds, if material: (i) principal and
interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on
debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit
enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or
their failure to perform; (vi) adverse tax opinions or events affecting the tax-exempt status of the
Bonds; (vii) modifications to rights of holders of the Bonds; (viii) Bond calls (other than
scheduled mandatory redemption of Term Bonds); (ix) defeasances; (x) release, substitution, or
sale of property securing repayment of the Bonds; and (xi) rating changes. The City will also
provide to each NRMSIR or to the MSRB, and to the SID, timely notice of a failure by the City
to provide required annual financial information on or before the date specified below.
Type of Annual Financial Information Undertaken to be Provided
The annual financial information that the City undertakes to provide will consist of (1) a
statement of authorized, issued and outstanding general obligation debt of the City; (2) the
assessed value of property within the City subject to ad valorem taxation and (3) ad valorem tax
levy rates and amounts, and amount collected; and will be prepared in accordance with generally
accepted accounting principles promulgated by the Government Accounting Standards Board
("GASB"), as such principles may be changed from time to time by GASB or its successor; will.
not be audited, except, that if and when audited financial statements are otherwise prepared and
available to the City they will be provided; and will be provided to each NRMSIR and the SID
not later than the last day of the ninth month after the end of each fiscal year of the City
(currently, a fiscal year ending December 31), as such fiscal year may be changed as required or
permitted by State law, commencing with the City's fiscal year ending December 31, 1997.
The annual financial information may be provided in single or multiple documents, and may be
incorporated by reference to other documents that have been filed with each NRMSIR and the
SID, or, if the document incorporated by reference is a "final official statement" with respect to
other obligations of the City, that has been filed with the MSRB.
Amendment of Undertaking
The Undertaking is subject to amendment after the primary offering of the Bonds without the
consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer,
participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under the
circumstances and in the manner permitted by the Rule.
The City will give notice to each NRMSIR or the MSRB and the SID, of the substance (or
-provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the
amendment. If the amendment changes the type of annual financial information to be provided,
the notice also will include a narrative explanation of the effect of that change on the type of
information to be provided.
Termination of Undertaking
The City's obligations under the Undertaking will terminate upon the legal defeasance of all of
the Bonds. In addition, the City's obligations under the Undertaking will terminate if those
provisions of the Rule which require the City to comply with the Undertaking become legally
inapplicable in respect of the bonds for any reason, as confirmed by an opinion of nationally
recognized bond counsel or other counsel familiar with federal securities laws delivered to the
City, and the City provides timely notice of such termination to each NRMSIR or the MSRB and
the SID.
25
Remedy for Failure to Comply with Undertaking
If the City or any other obligated person fails to comply with the Undertaking, the City will
proceed with due diligence to cause such noncompliance to be corrected as soon as practicable
after the City learns of that failure. No failure by the City or other obligated person to comply
with the Undertaking will constitute a default in respect of the Bonds. The sole remedy of any
holder of a Bond will be to take such actions as that holder deems necessary, including seeking
an order of specific performance from an appropriate court, to compel the City or other obligated
person to comply with the Undertaking.
APPROVAL OF BOND COUNSEL
Legal matters incident to the authorization, issuance and sale of Bonds by the City are subject to
the approving legal opinion of Foster Pepper & Shefelman PLLC, Bond Counsel. A copy of the
opinion of bond counsel will be printed on the Bonds. Bond counsel has reviewed this document
only to confirm that the portions of it describing the Bonds and the City's authority to issue them
conform to the Bonds and the applicable laws under which they are issued. The form of opinion
of bond counsel is included herein as Appendix A.
BOND RATING
The City has applied for a rating from Moody's Investors Service, Inc. for the Bonds. A
municipal bond rating reflects a rating agency's current assessment of a number of factors
relating to the issuer of any debt, including the likelihood of repayment of such debt, the
perceived quality of management and administration of the entity, the nature and relative health
of the local economy in which the issuer exists and the overall financial condition and
operational controls which exist for the issuer. The existence of a bond rating does not imply a
recommendation by a rating agency to purchase, sell or hold any such security, inasmuch as it
does not take into account a number of subjective variables, including the market price of any
such security or suitability of such security for any particular investor.
A credit rating is based on current information furnished by the issuer or obtained by a rating
agency from sources which it considers to be reliable. Moody's Investors Service does not
perform an audit in connection with any credit rating it may assign and may, on occasion, rely on
unaudited financial information. A bond rating may be changed, suspended or withdrawn as a
result of changes in, or unavailability of, such information, or for other circumstances.
CONFLICTS OF INTEREST
Some or all of the fees of the Underwriter and bond counsel are contingent upon the issuance and
sale of the Bonds. None of the councilmembers or other officers of the City have interests in the
issuance of the Bonds that are prohibited by applicable law.
UNDERWRITING
The Underwriter has agreed, subject to certain conditions, to purchase all of the Bonds, if any are
purchased, at a price of % of the par value of the Bonds, plus accrued interest from
the dated date to the settlement date. The Bonds will be offered at an average price of %
of the par value of the Bonds which results in an underwriting spread of . After the
initial public offering, the public offering prices may be varied from time to time.
26
CONCLUDING STATEMENT
All estimates, assumptions, statistical information and other statements contained herein, while
taken from sources considered reliable, are not guaranteed by the City or the Underwriter. So far
as any statement herein includes matters of opinion, or estimates of future expenses and income,
whether or not expressly so stated, they are intended merely as such and not as representations of
fact.
The information contained herein should not be construed as representing all conditions affecting
the City or the Bonds. Additional information may be obtained directly from the City or the
Underwriter.
The foregoing statements relating to the Ordinance and other documents are in all respects
subject to and qualified in their entirety by provisions of such documents.
This Official Statement, starting with the cover page and all subsequent pages, including any
appendices, comprise the entire Official Statement, which has been approved by the City. The
City has represented to the Underwriter that the portions of this Official Statement directly
pertaining to the City neither contain any misrepresentation of material fact nor omit any material
fact necessary to understand the financial, economic or legal nature of the City or any
information presented herein.
27
APPENDIX A
FORM OF LEGAL OPINION
[FORM OF APPROVING LEGAL OPINION]
City of Bremerton, Washington
Re:
City of Bremerton, Washington, $
Obligation Refunding Bonds, 1997
Unlimited Tax General
We have served as bond counsel to the City of Bremerton, Washington (the "City"),
in connection with the issuance of the above-referenced bonds (the "Bonds"), have examined
a certified transcript of proceedings relating to the Bonds and have examined an executed and
authenticated Bond or a facsimile thereof.
The Bonds are issued pursuant to Ordinance No. ~ of the City (the "Bond
Ordinance") for the purpose of providing the funds with which to pay the cost of advance
refunding the callable portion of the City's outstanding Unlimited Tax General Obligation and
Refunding Bonds, 1991, and to pay the administrative costs of such refunding and the costs
of issuance of the Bonds, all as set forth in the Bond Ordinance, and under and in accordance
with the Constitution and laws of the State of Washington and ordinances of the City.
The Bonds are fully registered; are in the denomination of $5,000 or any integral
multiple thereof within a single maturity; are numbered separately; are dated November 1,
1997; and bear interest at the rates set forth below, payable semiannually on each February 1
and August 1, commencing February 1, 1998, to the maturity of the Bonds. The Bonds are
payable at the principal office of either of the fiscal agencies of the State of Washington
(collectively, the "Bond Registrar"). The Bonds mature on February 1 in years and amounts
and bear interest at the rates per annum as follows:
Maturity interest
Dates Amounts Rates
1998
1999
2000
2001
2002
2003
2004
2005
2006
030'7090.01
City of Bremerton, Washington
[Date]
Page 2
The Bonds are issued without the right or option of the City to redeem the Bonds
prior to their stated maturity dates.
We have not been engaged to review, have not reviewed and thus express no opinion
concerning the completeness or accuracy of any official statement, offering circular or other
sales or disclosure material relating to the issuance of the Bonds or otherwise used in
connection with the Bonds.
Under the Internal Revenue Code of 1986, as amended (the "Code"), issuers of
tax-exempt obligations are required to calculate and rebate to the United States certain
investment earnings on gross proceeds of those obligations in the event that all gross
proceeds have not been spent within certain periods prescribed by the Code. There is an
exception to this rebate requirement available to a governmental unit with general taxing
powers in connection with the issuance of obligations other than "private activity bonds" as
defined in the Code, if the governmental unit, together with all subordinate governmental
units, does not reasonably anticipate issuing more than $5,000,000 of tax-exempt obligations
(other than private activity bonds and other obligations not required to be included in such
calculation) during the calendar year in which the obligations are issued. The City has
certified in the Bond Ordinance that it is an issuer which qualifies for this arbitrage rebate
exception in connection with the issuance of the Bonds.
Under the Code, the City is required to comply with certain requirements after the
date of issuance of the Bonds in order to maintain the exclusion of the interest on the Bonds
from gross income for federal income tax purposes, including, without limitation,
requirements concerning the qualified use of Bond proceeds and the facilities financed or
refinanced with Bond proceeds. The City has covenanted in the Bond Ordinance to comply
with those requirements, but if the City fails to comply with those requirements, interest on
the Bonds could become taxable retroactive to the date of issuance of the Bonds. We have
not undertaken and do not undertake to monitor the City's compliance with such
requirements.
As of the date of initial delivery of the Bonds to the purchaser thereof and full
payment therefor, it is our opinion that:
1. The City is a duly organized and legally existing first class city under the laws
of the State of Washington;
2. The Bonds are issued in full compliance with the provisions of the
Constitution and laws of the State of Washington and the ordinances of the City relating
thereto;
3. The Bonds constitute valid general obligations of the City payable from annual
ad valorem taxes to be levied without limitation as to rate or amount on all of the taxable
030/099.01 .~,
City of Bremerton, Washington
[Date]
Page :3
property within the City, except only to the extent that enforcement of payment may be
limited by bankruptcy, insolvency or other laws affecting creditors' rights and by the
application of equitable principles and the exercise of judicial discretion in appropriate cases;
and
4. Assuming compliance by the City after the date of issuance of the Bonds with
applicable requirements of the Code, including arbitrage requirements, under existing federal
law the interest on the Bonds is excluded from gross income of the registered owners for
federal income tax purposes and is not an item of tax preference for purposes of the
alternative minimum tax applicable to individuals; however, while interest on the Bonds also
is not an item of tax preference for purposes of the alternative minimum tax applicable to
corporations, interest on the Bonds received by corporations is to be taken into account in
the computation of adjusted current earnings for purposes of the alternative minimum tax
applicable to corporations, interest on the Bonds received by certain S corporations may be
subject to tax, and interest on the Bonds received by foreign corporations with United States
branches may be subject to a foreign branch profits tax. We express no opinion regarding
any other federal tax consequences of receipt of interest on the Bonds.
We bring to your attention the fact that the foregoing opinions are expressions of our
professional judgment on the matters expressly addressed and do not constitute guarantees
of result.
Respectfully submitted,
FOSTER PEPPER & SHEFELMAN PLLC
0307099.01
A~END~ BILL
BREI~RTON CITY COUNCIL
Budget Hearing
FOR AGENDA OF:
ORIGINATING DEPT: Admin. Services
ORIGINATOR: K. McCluskey
DATE SUBMITTED: 11/18/97
2. ~: (comment on back 3. ~:
if necessary)
MAYoRENDORSEMENTI~ .~NF~ON__
APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL:
COUNCIL PRESIDENT
4. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION:
This hearing on the 1998 budget is for the purpose of taking public
comment.
RECOMMENDATION:
No action required.
e
RESPONSIBLE OFFICIAL: Admin. Service~
ENFORCEMENT OFFICIAL: N/A
EXPIRATION DATE: N/A
REVIEW DATE: N/A
PULLED TABLED
COUNCIL DIRECTIVE:
10. NOTICE OF ACTION
APPROVED DISAPPROVED
DATE:
AMENDED
11.
CITY OF BREMERTON
NOTICE OF FIIJNG OF PI~I~I.IMINARY BUDGET
AND
NOTICE OF PUBLIC I~E~ARING
NOTICE IS HF. RRI~Y GIVEN THAT THE Preliminary Budget for 1998 has been fled with the
City Clerk as required by law.
This is to further notify the public that the City Council of the City of Bremerton will hold a public
hearing on the Pre 'hrainary Budget on Wednesday, November 19, 1997 at 6:00 p.m. or later at
City Hall. 239 4th Street, Bremerton, Washington.
Water
Wastewater
Stormwater Utility
All Other Funds
TOTAL
$22,799,627
15,601,240
13,105,050
1,469,730
32,059,407
$85,035,054
The above information together with a copy of the entire proposed budget, will be available at the
City Clerk's office on November 3, 1997.
Citizens attending the public hearing shall have the fight to provide written and oral comments
regarding the Preliminary Budget. Written comments may be submitted prior to the hearing by
citizens who cannot attend by sending to the City Clerk, 239 4th Street, Bremerton, WA 98337.
Special assistance will be offered disabled persons.
KATHt.F~EN L. McCLUSKEY, City ClerkI
Publication Dates:
Number of Insertions:
No. Affidavits Required:
November 5 & 12, 1997
Two.
Two