HomeMy WebLinkAbout3865 CITY OF BREMERTON. NASHINGTON
ORDINANCE NO. 3
AN ORDINANCE of the City of Bremerton,
Washington, relating to the combined water and
sewerage system of the City and amending Ordinance
No. 38617 and, because of its urgency, providing that this
ordinance shall take effect immediately.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BREMERTON, WASHINGTON, as follows:
Section 1. Section 11 of Ordinance No. 3861 is amended to
read as follows:
Section 11. The Reserve Account has heretofore been
created in the Bond Fund and required reserves have been pre-
scribed for the 1971 Bonds and the 1973 Bonds. It is the inten-
tion of the City that the $120,000 required to be paid into the
Reserve Account on December 1, 1990, by Ordinance No. 2982 for
the 1971 Bonds will be paid from the money remaining in the bond
redemption fund for the Prior Lien Bonds when the Prior Lien
Bonds are fully paid and redeemed. Upon the delivery of the
Bonds to the purchaser thereof and payment therefor, the City
will deposit $1,000,000 of the proceeds of the Bonds and will
deposit $854,250 from the Current Water Fund into the Reserve
Account on or before September 1, 1984, which will equal the
maximum annual debt service on all currently outstanding bonds
payable from the Bond Fund and the Bonds.
The City further covenants and agrees that in the event it
issues any Future Parity Bonds, it will provide in each ordi-
nance authorizing the issuance of the same that approximately
equal monthly payments will be made into the Reserve Account out
of the Current Water Fund or out of any other money it may now
or later have on hand and available for such purpose so that
within five years or less from the date of the issuance of such
Future Parity Bonds the total amount of such payments, with the
money already in the Reserve Account, will be at least equal to
the maximum amount required in any calendar year for the payment
of the principal of and interest on the Outstanding Parity
Bonds, the Bonds outstanding and all outstanding Future Parity
Bonds.
The City further covenants and agrees that when such
required amounts have been deposited in the Reserve Account it
will at all times maintain those amounts therein until there is
a sufficient amount in the Bond Fund and Reserve Account to pay
the principal of, premium if any, and interest on all outstand-
ing bonds payable out of the Bond fund, at which time the money
in the Reserve Account may be used to pay such principal, pre-
mium if any, and interest, except that money in the Reserve
Account may be withdrawn to pay the principal, premium if any,
and interest on all of the outstanding bonds of any single issue
or series payable out of the Bond Fund so long as the money
remaining on deposit in the Reserve Account is at least equal to
the amounts required in the preceding paragraph as to all of the
remaining outstanding bonds payable out of the Bond Fund.
In the event there shall be a deficiency in the Bond Fund
to meet maturing installments of either interest on or principal
of and interest on the Outstanding Parity Bonds, the Bonds and
any Future Parity Bonds, such deficiency shall be made up from
the Reserve Account by the withdrawal of cash therefrom. Any
deficiency created in the Reserve Account by reason of any such
withdrawal shall then be made up from the money in the Current
Water Fund first available therefor.
All money in the Reserve Account may be kept in cash or
invested in direct obligations of the United States having a
guaranteed redemption price prior to maturity or maturing not
later than twelve years from date of purchase, and in no event
maturing later than the last maturity of the Outstanding Parity
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Bonds, the Bonds or any Future Parity Bonds outstanding at the
time of such purchase. Interest earned on and any profits made
from the sale of any such investments shall be deposited in and
become a part of the Bond Fund.
Section Iio The City has awarded a substantial contract
for the construction of a portion of the improvements described
in Section 2 of Ordinance 3861 and, in order to have money avail-
able to pay that contractor and to pay immediate costs related to
such improvements, it is urgently needed that the proceeds of the
Bonds be received before thirty days after the publication of
this ordinance. Therefore, the City Council finds that sufficient
urgency exists to require that this ordinance take effect
immediately. For the reasons stated, this ordinance shall take
effect immediately upon its passage and publication.
PASSED by the City Council at a regular open public meeting
thereof and APPROVED by the Mayor of the City of Bremerton,
Washington, this ~ I day of August, 1983.
ATTEST:
KATHLEEN L-. MC~LUSKEY, City ~lerk
APPROVED AS TO FORM:
2~bBROU~N" city ~t°rn~y