HomeMy WebLinkAbout4429 CITY OF BREMERTON, WASHINGTON
ORDINANCE NO · 4429
AN ORDINANCE of the City of Bremerton, Washington,
relating to contracting indebtedness; providing for the
issuance of $3,400,000 par value of Limited Tax General
Obligation Bonds, 1993, of the City for general City
purposes to provide funds with which to pay the cost of
designing and constructing a public works complex, a part
of the cost of designing and constructing a new athletic
sports complex and to pay a part of the cost of the
Overwater Park Fisheries Mitigation; fixing the date,
form, maturities, interest rates, terms and covenants of
the bonds; establishing a bond redemption 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 a public works complex, a new athletic sports complex and
the Overwater Park Fisheries Mitigation, the estimated cost of
which is $3,400,000, and the City does not have available
sufficient funds to pay the cost; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DO
ORDAIN as follows:
Section 1. Debt Capacity. The assessed valuation of the
taxable property within the City as ascertained by the last
preceding assessment for city purposes for the calendar year 1993
is $1,072,545,656, and the City has $1,715,441 of outstanding
general indebtedness evidenced by limited tax general obligation
bonds, notes, and installment purchase contracts incurred 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, and unlimited tax general
obligation bonds in the principal amount of $ 2,270,000 incurred
within the limit of up to 2-1/2% of the value of the taxable
property within the City for capital purposes only and the amount
of indebtedness for which bonds are authorized herein to be issued
is $3,400,000.
Section 2. Authorization of Bonds. The City shall borrow
money on the credit of the City and issue negotiable limited tax
general obligation bonds evidencing that indebtedness in the amount
of $3,400,000 for general City purposes to provide the funds to pay
(a) the cost of designing and constructing a public works complex,
(b) a part of the cost of financing an athletic sports complex and
(c) a part of the cost of the Overwater Park Fisheries Mitigation
(collectively, the "Project") and (d) to pay the costs of issuance
and sale of the bonds (the "costs of issuance"). 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 Bonds. The bonds shall be called
Limited Tax General Obligation Bonds, 1993, of the City (the
"Bonds"); shall be in the aggregate principal amount of $3,400,000;
shall be dated August 1, 1993; 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 (collectively, the fiscal
agencies of the State of Washington located in Seattle, Washington,
and New York, New York) deems necessary for purposes of
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shall bear interest at the rates set forth below
basis of a 360-day year of twelve 30-day months),
1, 1994, and semiannually thereafter on each
December 1 and June 1; and shall mature on December 1 in
amounts and bear interest at the rates per annum as
Maturity Interest
Years Amounts Rates
1994 $120,000 4.125%
1995 120,000 4.125
1996 125,000 4.125
1997 130,000 4.125
1998 135,000 4.250
1999 140,000 4.300
2000 150,000 4.625
2001 155,000 4.750
2002 160,000 4.750
2003 170,000 4.900
2004 180,000 4.900
2005 185,000 5.150
2006 195,000 5.300
2007 205,000 5.350
2008 220,000 5.450
2009 230,000 5.450
2010 245,000 5.550
2011 260,000 5.550
2012 275,000 5.650
capital facilities to be acquired with the proceeds
exceeds the term of the Bonds.
Registration and Transfer of Bonds. The Bonds
only in registered form a~ to both principal and
shall be recorded on books or records maintained by
Registrar (the "Bond Register"). The Bond Register shall
and mailing address of the owner of each Bond and
amount and number of each of the Bonds held by each
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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 5. 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 6. Optional Redemption and Open Market Purchase of
Bonds. Bonds maturing in the years 1994 through 2005, inclusive,
shall be issued without the right or option of the City to redeem
those Bonds prior to their stated maturity dates. The City
reserves the right and option to redeem the Bonds maturing on or
after December 1, 2006, prior to their stated maturity dates, as a
whole at any time, or in part (within maturities to be selected by
the City and by lot within a maturity in such manner as the Bond
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Registrar shall determine), on and after December 1, 2005 on any
interest payment date thereafter, at par plus accrued interest to
the date fixed for redemption.
The City further reserves the right and option to purchase any
or all of the Bonds in the open market at any time at a price not
in excess of par plus accrued interest to the date of purchase.
All Bonds purchased or redeemed under this section shall be
cancelled.
Section 7. Notice of Redemption. The City shall cause notice
of any intended redemption of Bonds to be given not less than
30 nor more than 60 days prior to the date fixed for redemption by
first-class mail, postage prepaid, to the registered owner of any
Bond to be redeemed at the address appearing on the Bond Register
at the time the Bond Registrar prepares the notice, and the
requirements of this sentence shall be deemed to have been
fulfilled when notice has been mailed as so provided, whether or
not it is actually received by the owner of any Bond. Interest on
Bonds called for redemption shall cease to accrue on the date fixed
for redemption unless the Bond or Bonds called are not redeemed
when presented pursuant to the call. In addition, the redemption
notice shall be mailed within the same period, postage prepaid, to
Moody's Investors Service, Inc., and Standard & Poor's Corporation
at their offices in New York, New York, or their successors, to
Seattle-First National Bank at its principal office in Seattle,
Washington, or its successor, and to such other persons and with
such additional information as the City Treasurer shall determine,
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but these additional mailings shall not be a condition precedent to
the redemption of Bonds.
Section 8. Failure to Redeem Bonds. If any Bond is not
redeemed when properly presented at its maturity or call 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 or call date
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 of each of those unpaid Bonds.
Section 9. Pledge of Taxes. For as long as any of the Bonds
are 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 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 10. 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 Treasurer, either or both of whose
signatures may be manual or in facsimile, and the seal of the City
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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, Limited Tax General Obligation
Bonds, 1993, 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,
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although he or she did not hold the required office on the date of
issuance of the Bonds.
Section 11. ~ond 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 Certificates 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 12. Preservation of ~ax 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 also covenants that it will, to the extent
arbitrage rebate requirements of Section 148 of the Internal
Revenue Code of 1986, as amended (the "Code"), are applicable to
the Bonds, take all actions necessary to comply (or to be treated
as having complied) with those requirements in connection with the
Bonds, including the calculation and payment of any penalties that
the City has elected to pay as an alternative to calculating
rebatable arbitrage, and the payment of any other penalties if
required under Section 148 of the Code to prevent interest on the
Bonds from being 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 13. Designation of Bonds as "Qualified Tax-Exempt
Obliqations." The city has determined and certifies that (a) the
Bonds are not "private activity bonds" within the meaning of
Section 141 of the Code; (b) the reasonably anticipated amount of
tax-exempt obligations (other than private activity bonds) which
the City and any entity 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) will issue during the
calendar year in which the Bonds are issued will not exceed
$10,000,000; and (c) the amount of tax-exempt obligations,
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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 designates the Bonds as
"qualified tax-exempt obligations" for the purposes of
Section 265(b) (3) of the Code.
Section 14. Bonds Neqotiable. The Bonds shall be negotiable
instruments to the extent provided by RCW 62A.8-102 and 62A.8-105.
Section 15. Advance Refundinq or Defeasance of the Bonds.
The City may issue advance 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 "government obligations" (as defined in Chapter 39.53
RCW, as now or hereafter amended) 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 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 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 such lawful purposes as it
shall determine.
Section 16. 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 Limited Tax General Obligation Bond
Fund, 1993 (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. There are already established in the office of
the City Treasurer the special funds designated below (the "Project
Funds"). The principal proceeds and premium, if any, received from
the sale and delivery of the Bonds shall be paid into the Project
Funds, as follows: $400,000, less its prorata share of the costs of
issuance, into the Waterfront Parks Construction Fund for the
Overwater Park Fisheries Mitigation; $2,000,000, less its prorata
share of the costs of issuance, into the Public Works Complex
Construction Fund for the public works complex; and $1,000,000,
less its prorata share of the costs of issuance, into the
Pendergast Park Construction Fund for the athletic sports complex.
Until needed to pay the costs of the Project and costs of issuance
of the Bonds, the City may invest principal proceeds temporarily in
any legal investment, and the investment earnings may be retained
in the Project Funds and be spent for the purposes of that fund
except that earnings subject to a federal tax or rebate requirement
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may be withdrawn from the Project Funds and used for those tax or
rebate purposes. 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 17. Approval of Bond Purchase Contract. Seattle-
First National 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, municipal bond counsel of Seattle, Washington, regarding
the Bonds printed on each definitive 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 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.
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Section 18. Preliminary official statement Deemed Final. The
City Council has been provided with copies of a preliminary
official statement dated July 6, 1993 (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 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 19. 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 20. Effective Date of Ordinance. The City is in
urgent need of the Project and has been advised that a favorable
market exists at this time for the sale of the Bonds resulting in
lower interest rates on the Bonds and a savings to the City and its
taxpayers. Therefore, the City Council finds that sufficient
urgency exists to require that this ordinance take effect
i~ediately upon its passage and publication.
PASSED by the City Council of the City of Bremerton,
Washington and attested by the City Clerk in authentication of such
passage this 21st day of July, 1993.
EILEEN FITZ, Council President
APPRO this . of
LOUIS MENTOR, Mayor
ATTEST:
EEN McCLUSKEY, ~
City Clerk
~PROVED AS TO FO~:
City Attorney
Ordinance Number: ~ q
Effective ~te: 7-~-
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I, KATHLEEN McCLUSKEY, City Clerk of the City of Bremerton,
Washington, certify that the attached copy of Ordinance No. 4429
is a true and correct copy of the original ordinance passed on the
~/ day of July, 1993, as such ordinance appears on the Minute
Book of the City.
DATED this day of ~ly, 1993.
KATHLEEN McCLUS~EY, City Clerk