Loading...
HomeMy WebLinkAbout4140 CI'[:[Y O? t~kE~,',:'w.;f~'~¥:'N, WASHINGTON O D NA CZ NO. q\ O AN ORDINANCE of the City of Bremerton, Washington, relating to contracting indebtedness; providing for the issuance of a $625,000 par value of Limited Tax General Obligation Bond, 1987, of the City for general City purposes to provide funds with which to pay a part of the cost of acquiring a computer system; fixing the date, form, maturity, interest rate, terms and covenants of the bond; establishing a bond redemption fund and an acquisi- tion 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 acquiring a computer system, the estimated cost of which is $625,000, and the City does not have available suffi- cient 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 of the City as ascertained by the last preceding assessment for City purposes for the calendar year 1988 is $838,838,748, and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds and installment purchase contracts in the principal amount of $1,698,497 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, unlimited tax general obligation bonds in the principal amount of $1,329,000 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 $625,000. Section 2. Authorization of Bond. The City shall borrow money on the credit of the City and issue a negotiable limited tax 9eneral obligation bond evidencing that indebtedness in the amount of $625,000 for general City purposes to provide the funds to pay the cost of acquiring a computer system (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 Limited Tax General Obligation Bond, 1987 (Computer System), of the City (the "Bond"); shall be a single bond in the principal amount of $625,000; shall be dated December 29, 1987; and shall bear interest at the rate of 6.90% per annum (computed on the basis of a 360-day year of twelve 30-day months). Both principal and interest shall be payable in semiannual install- ments of $74,572.71 commencing on June 1, 1988, and semiannually thereafter on each succeeding December 1 and June 1 with the last payment due on December 1, 1992. The payment due on December 1, 1992, shall be in an amount sufficient to pay in full the remaining unpaid principal on the Bond together with interest due and may be more or less than $74,572.71 as required to pay that principal and interest. The life of the capital equipment to be acquired with the proceeds of the Bond exceeds five years. 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 - 2 - 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 proivded 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 and 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 by check or draft mailed 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 principal and interest payment due December 1, 1992, 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 prior to its stated maturity date only as a whole at any time on or after June 1, 1989, at par plus accrued interest to the date fixed for redemption upon giving thirty days' written notice to the registered owner. If the Bond is redeemed under this section, it shall be cancelled. 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 - 3 - pay interest on that principal and interest installment or 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 hereinafte,r 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 and 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 - 4 - 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, 1987, described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY 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 representa- tions 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 6r other funds of the City treated as proceeds of -- 5 -- 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. Small Governmental Issuer Arbitrage Rebate Exemption and Designation of Bond as a "Qualified Tax-Exempt Obligation." 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 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) 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 Bond is issued is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt obligations, including the Bond, 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 Bond is issued does not exceed $10,000,000. The City therefore certifies that it is an issuer which qualifies for the small governmental issuer arbitrage rebate exemption under Section 148(f)(4)(C) of the Code and designates the Bond as "qualified - 6 - tax-exempt obligations" for the ~urposes of Section 265(b)(3) of the Code. Section 13. Bond Negotiable. The Bond shall De a negotiable instrument to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 14. Advance Refunding of the Bond. 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 Bond, or any portion thereof included in a refunding or defeasance plan, and to prepay and retire or refund the then-outstanding Bond (hereinafter called the "defeased Bond") 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 or refund the defeased Bond in accordance with its terms are set aside in a special trust fund irrevocably pledged to that redemption and retirement of the defeased Bond (hereinafter called the "trust account"), then all right and interest of the owner of the defeased Bond in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bond shall cease and become void. The owner of the defeased Bond shall have the right to receive payment of the principal of and interest on the defeased Bond from the trust account. The defeased Bond 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 Bond to any lawful purposes as it shall determine. Section 15. Bond Fund. There is created and established in the office of the City Treasurer a special fund designated as - 7 - the Limited Tax General Obligation Bond Fund, 1987 (Computer System) (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 Computer System Acquisition Fund, 1987 (the Acquisition Fund"). The principal proceeds received from the sale and delivery of the Bond shall be paid into the Acquisition 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 December 1, 1987 (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 Roberts & 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 - 8 - or accuracy of any official statement, offering circular or other s~-tes material issued or used in connection with the Bond, and Dona 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 acquisition of a computer system 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 Council of the City of Bremerton, Washington, signed by the Mayor and attested by the City Clerk in authentication of such passage this 16th day of December, 1987, notice having been given as required by law. ~TTEST: City Clerk APPROVED AS TO FORM: City AttOrney 1640b C~DINANC~I~. 4140 PUBLISHED: 12/19/87 -- 9 I, ~THLEEN 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 16th day of December, 1987, as such ordinance appears on the Minute Book of the City. DATED this \~ day of December, 1987. Kathleen McCluskey City Clerk l&40b