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HomeMy WebLinkAbout4389 CxfY OF BREMERTON, WASHINGTC AN ORDINANCE of the city of Bremerton, Washington relating to contracting indebtedness; providing for the issuance of a $500,000 par value of Limited Tax General Obligation Bond, 1992, of the City for general City purposes to provide funds with which to pay a part of the cost of designing and constructing a fisheries mitigation project; fixing the date, form, maturity, interest rate, terms and covenants of the bond; establishing a bond redemption fund and a construction fund; and approving the sale and providing for the delivery of the bonds to Seattle-First National Bank of Seattle, Washington. WHEREAS, the City of Bremerton, Washington (the "City"), is in need of designing and constructing a fisheries mitigation project, the estimated cost of which is $500,000, and the City does not have available sufficient funds to pay the cost; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES ORDAIN as follows: Section 1. Debt Capacity. The assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for city purposes for the calendar year 1992 is $949,107,196, and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds and installment purchase contracts in the principal amount of $849,734 incurred within the limited of up to 3/4 of 1% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein, unlimited tax general obligation bonds in the principal amount of $2,340,000 incurred within the limit of up to 2-1/2% of the value of the taxable property within the City for capital purposes only the City issued pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which bonds are authorized herein to be issued is $500,000. Section 2. Authorization of Bond. The City shall borrow money on the credit of the City and issue a negotiable limited tax general obligation bond evidencing that indebtedness in the amount of $500,000 for general City purposes to provide the funds to pay the cost of designing and constructing a fisheries mitigation project (the "Project") and to pay the costs of issuance and sale ("costs of issuance") of the bond. The general indebtedness to be incurred shall be within the limit of up to 3/4 of 1% of the value of the taxable property within the city permitted for general municipal purposes without a vote of the qualified voters therein~ Section 3. Description of Bond. The bond shall be called the Limited Tax General Obligation Bond, 1992 (Mitigation), of the City (the "Bond"); shall be a single bond in the principal amount of $500,000; shall be dated as of the earliest date on which monies are accessed under the provisions of this ordinance and shall mature not later than six years from the dated date; and shall bear interest as a variable rate per annum equal to 75% of the rate announced from time to time by the Bank as its "prime rate" with changes in such rate to be effective as of the date of announcement (computed on the basis of a 360-day year of twelve 30-day months). Both principal and interest shall be payable in semiannual installments commencing on the first day of the month following the six month anniversary of the dated date. Interest and installments of principal on the Bond shall be payable in lawful money of the United States of America and shall be paid by the City on each principal and interest payment date to the Bank. When the Bond has matured and has been paid in full, both principal and interest, the Bond shall be surrendered by the Bank to the Bond Registrar, who shall destroy the same one month after the date of receipt of such Bond. Upon destruction, the Bond Registrar shall furnish to the City a certificate of destruction and no further Bond shall be executed or authenticated or issued in exchange or substitution therefor. Section 4. Appointment of Bond Registrar, Registration and Transfer of Bond. The city Treasurer is appointed Bond Registrar. The Bond shall be issued only in registered form as to both principal and interest and recorded on books or records maintained by the Bond Registrar (the "Bond Register"). The Bond Register shall contain the name and mailing address of the owner of the Bond. The Bond may be transferred only in whole and only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any transfer shall be without cost to the owner or transferee. The Bond Registrar shall not be obligated to transfer the Bond during the 15 days preceding any principal and interest payment or redemption date. Section 5. Payment of Bond. Both principal of the interest on the Bond shall be payable in lawful money of the United States of America. Payments of principal and interest on the Bond shall be paid on the principal and interest payment date to the registered owner at the address appearing on the Bond Register on the fifteenth day of the month preceding the principal and interest payment date. The final principal and interest payment shall be payable upon presentation and surrender of the Bond by the registered owner at the office of the Bond Registrar in Bremerton, Washington. The Bond Registrar shall destroy the Bond thirty days after its surrender and cancellation and shall furnish the City a Certificate of Destruction. Section 6. Optional Redemption of the Bond. The City reserves the right and option to redeem the Bond or any portion thereof prior to its stated maturity date at any time on, at par plus accrued interest to the date fixed for redemption upon giving fifteen days' written notice to the registered owner. If the Bond is redeemed under this section, it shall be canceled. Section 7. Failure to Redeem Bond. If any principal and interest installment is not paid on its due date or if the Bond is not redeemed on the call date, the City shall be obligated to pay interest on that principal and interest installment on the Bond at the same rate provided in the Bond from and after the principal and interest installment date or the call date for the Bond until the principal and interest installment or the Bond (if called for prior redemption), 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. Section 8. Pledge of Taxes. For as long as the Bond is outstanding, the City irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City on all of the taxable property within the City in an amount sufficient, together with other money legally available to be used therefor, to pay when due the principal of and interest on the bond, 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 9. Form and Execution of Bond. The Bond shall be printed, lithographed or typewritten 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, both of whose signatures may be manual, and the seal of the City shall be impressed thereon. Only a Bond 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 the fully registered City of Bremerton, Washington, Limited Tax General Obligation bond, 1992, described in the Bond Ordinance. Bond Registrar By Authorized officer 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. Section 10. Bond Registrar. The Bond Registrar shall keep, or cause to be kept, at his office, sufficient books for the registration and transfer of the Bond 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 a Bond transferred in accordance with the provisions of the Bond and this ordinance, to serve as the City's paying agent for the Bond 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 the representations contained in the Bond Registrar's Certificate of Authentication on the Bond. Section 11. Preservation of Tax Exemption for Interest on Bonds. The City covenants that it will take all actions necessary to prevent interest on the Bond from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bond or other funds of the city treated as proceeds of the Bond at any time during the term of the Bond which will cause interest on the Bond to be included in gross income for federal income tax purposes. The 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 12. Designation of Bond as a "Qualified Tax-Exempt Obliqations". 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) the Bond is not 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 Bond will be used for local government activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City). Section 13. Bond Negotiable. The Bond shall be a negotiable instrument to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 15. Bond Fund. There is created and established in the office of the City Treasurer a special fund designated as the Limited Tax General Obligation Bond Fund, 1992 (mitigation) (the "Bond Fund"). Accrued interest on the Bond, if any, received from the sale and delivery of the Bond shall be paid into the Bond Fund. There also is created and established in the office of the City Treasurer a special fund designated as the Waterfront Park Construction Fund (the "Construction Fund"). The principal proceeds received from the sale and delivery of the Bond shall be paid into the Construction Fund and used for the purposes specified in Section 2 of this ordinance. Until needed to pay the costs of the Project and costs of issuance of the Bond, the City may invest principal proceeds temporarily in any legal investment, and the investment earnings may be retained in the Acquisition Fund and be spent for the purposes of that fund. All taxes collected for and allocated to the payment of the principal of and interest on the Bond shall be deposited in the Bond Fund. Section 16. Approval of Bond Purchase Contract. Seattle-First National Bank of Seattle, Washington, has presented a purchase contract dated (the "Purchase Contract"), to the city offering to purchase the Bond under the terms and conditions provided in the Purchase Contract, which written Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Purchase Contract is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by City officials. The Bond will be printed or typewritten at City expense and will be delivered to the purchaser in accordance with the Purchase Contract, with the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel of Seattle, Washington, regarding the 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 material issued or used in connection with the Bond, 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 Bond to the purchaser and for the proper application and use of the proceeds of the sale thereof. Section 17. The City is in urgent need of financing the construction of the mitigation project immediately and the proceeds of the Bond are urgently needed to provide that financing before thirty days after the publication of the ordinance. PASSED unanimously by the City Co~ci~ of, the City of Bremerton, Washington this ~ ,~ day of ~~n~/~ ~ , 1992. ! ATTEST: LYNN HORTON, Council President AP ber, 1992 '{<ATH'L'~Mc~3§~'E~ ~le~ ' APPROVED AS TO FORM: LOUIS MENTOR, Mayor IAN SIEVERS, city Attorney I, KATHLEEN L. McCLUSKEY, city Clerk of the City of Bremertgn, Washington, certify that the attached copy of Ordinance No. ~ is a true and cgrr~ct co~y of the original ordinance passed on the ~ day of ~~~r~ , 1992, as such ordinance appears on ~he Minute Book 6f the Cit~. EY, City Clerk SEP--22--'B2 TUE I i : 25 SEAF I RST CAP I TAL MRKTS P . 04 Jane Towery Vi¢~ President Public Sector September 22, 1992 The City of Bremerton 239 4th Street Bremerton, Washington 98310 Ladies and Gentlemen: Seattle-First National Bank ("Seafirst") is pleased topresent an offer to purchase from the, City of Bremerton, Washington (the "City") not to exceed $500,000 of its principal amount of Limited Tax General Obligation Bond, 1992 (the "Bond"), which Bond will mature not later, thant six years from the date of the Bond (the "Maturity Date"). The rate on !hese Bond will bear interest at a variable rate per annum equal to 75% of the rate announced from tzn~e to time by Seafirst as its "prime rate," Principal and interest of the Bond shall be due on or before the MaturltyDate. - We will pay you $100:00 for e, ach $100.00 par value of the Bond in irn, mediate!y, available funds (Fed Funds) on the desired closing date. Our offer is subject to the following condmons: i. Final credit approval by Seafirst Credit Administration. 2. The City has the full legal right, power and authority to enter into and perform its oblieations under this purchase contract and under the resolution authorizing the issuance of the B~>nd, to pass the resolution and to sell and deliver the Bond to Seafirst. 3. The approving legal opinion of Foster Pepper & Shefelman for the issue will be .d.e!ivered at the closing .o.f the Bond. Such unqualified approving opinion will attest to the vahd'ay of the Bond and will state that the interest on the Bond is exempt from federal income tax. 4. The Bond will be delivered to Seafirst in Seattle, Washington, on the desired closing date. 5. The City will be responsible for all of the issuance expenses, including, but not limited to: bond counsel and note printing. 6. Interest on outstanding principal of the Bond will be paid upon maturity or early redemption. 7. The Bond will .be issued in fully registered form as to both prlnclpal and interest. The City shall act as Registrar, Paying Agent and Transfer Agent for the Bond. 8. The principal of the Bond shall be subject to optional prepayment Brior to maturity, as a whole or in part, upon not less than fifteen days' prior written notice trom the City, plus accrued interest to the date of prepayment. 9. Interest shall accrue on the basis of a 360-day year for the actual number of days outstanding.. 10. This offer was submitted for acceptance by the City on ....... ,1992, at a meeting the City held. Seafirst Bank 800 Fifth Avenue, Floor 34/Post Office Box 34662/Seattle, Washington 98124-1662 Tolel3hone (206) 35a.8991 Telelax (206) 358-8818 SEP--22--92 TUE I I ~ 26 SEAF I RS T CAP I TAL MRK TS P . 85 ,~. City of Bremerton September 22, 1992 Page 2 11. Details of this offer may be altered by mutual consent of Seafirst and the City to accommodate the needs of' the City. Respectfully submitted, Jane Towery Accepted this ~' ~. l~ 1992: By:The City,~o emerton,~,~gt o~,W. gton ./~ ~-~- Mayor