Loading...
HomeMy WebLinkAbout2499 ORDINANCE NO. 2499 AN ORDINANCE of the City of Bremerton, Washington, providing for the issuance of $293,000 par value of water and sewer revenue refunding bonds of the city for the purpose of providing £und$ to redeem and retire a like principal amount of outstanding water and sewer revenue bonds of the city& providing the date, form, terms, maturities and covenants of said re- funding bonds to be issued~ creating a special fund for the payment of the principal thereof and interest thereon, and a reserve account~ providing and adopting certain covenants and protective features safeguarding the payment of such principal and interest~ confirming the sale of said refunding bonds to be issued; and declaring an emergency. WHEREAS, the City of Bremerton now has outstanding $330,000 par value of its water and sewer revenue bonds issued under date of June 1~ 1957 pursuant to Ordinance No. ~225~ passed and approved April 24, 1957, which are numbered~ mature on June 1 of each of the following years, and bear interest as follows: Maturity Interest Bond Nos. Years Amounts Rate 21-25 1962 $ 5,000 3.75% 26-77 1963-1967 52,000 3.75% 78-211 1968-1977 134,000 4.2~ 212-260 1978-1980 49,000 4.0~ 261-350 1981-1985 90,000 4.2~ and WHEREAS~ on June 1~ 1962, the city will redeem and retire bonds numbered 21 to 25 inclusive and 319 to 350 inclusive, as re- quired and in the manner provided by Ordinance No. 2225 of the city~ and WHEREAS, the City Council has determined that a substantial interest saving ~ the city may be effected by redeeming and retiring the ren~ning $293,000 par value of June 1, 1957 water and sewer revenue bonds of the city outstanding, out of the proceeds of sale of the w~ter and sewer revenue refunding bonds of the city hereinafter authorized& and WHEREAS, on April 6, 1962, the City Council accepted the written offer of even date of Marshall and Meyer, Inc., investment bankers of Seattle, Washington, to purchase said $293,000 of revenue refunding bonds at par and under the terms, conditions and covenants thereof hereinafter set forths and WHEREAS, Ordinance No. 2124 of the city, passed and approved September 14, 1955, under which $1,300,000 par value of water and sewer revenue bonds dated October 1, 1955 were issued, provided in Section llB thereof that refunding water and sewer revenue bonds of the city could be issued on a parity with the outstanding water and sewer revenue bonds issued pursuant to said ordinance No. 2124 if certain conditions were met~ and WHEREAS, it appears to the City Council that said conditions may be met and that it will be to the best interest of the city, its inhabitants, and the users and customers of its combined water and sewerage system that the above-mentioned water and sewer revenue refunding bonds be issued on a parity with the outstanding water and sewer revenue bonds of the city issued, under date of October 1, 1955~ and WHEREAS, the city also has outstanding $278,000 par value of its water and sewer revenue bonds issued under date of October 1, 1949, which bonds constitute a first lien upon the revenues of the combined water and sewerage system of the city except for necessary costs of maintenance and operation thereof~ NOW, THEREFORE, THE CITY OF BREMERTON DOES ORDAIN: Section 1. As used in this ordinance the following words shall have the following meanings: a. The word "System" shall mean the existing combined water and sewerage system of the city as the same may later be added to, improved and extended for as long as any of the Outstanding Prior 2 o / Lien Bonds~ the Outstanding Parity Bonds~ the Bonds~ and any Future Parity Bonds then outstanding. b. The word "Bonds" shall mean the $293~000 of water and sewer revenue refunding bonds of the city issued pursuant to and for the purposes provided in this ordinance. c. The words "Outstanding Prior Lien Bonds" shall mean the water and, sewer revenue bonds of the city issued under date of October 1~ 1949~ of which issue there is now outstanding bonds in the principal sum of $278~000. d. The words "Outstanding Parity Bonds" shall mean the water and sewer revenue bonds of the city issued under date of October 1~ 1955~ of which issue there is now outstanding bonds in the principal sum of $1~220~000~ and with which the Bonds will be on a parity. The Outstanding Prior Lien Bonds and the Outstanding Parity Bonds are the only revenue bonds of the city outstanding at this time (except for the June 1~ 1957 revenue bonds being refunded) for the payment of the principal of and interest on which the money in the Current Water Fund of the city has been pledged. e. The words "Current Water Fund" shall mean the Fund of the city of that name heretofore created~ into which the city has covenanted and agreed, that all gross earnings and revenue of the System will be paid. f. The words "Future Parity Bonds" shall mean any revenue bonds of the city issued after June 1~ 1962 under an ordinance wherein the city pledges that the payments to be made out of the money in the Current Water Fund to pay andsecure the ~ayment of the principal thereof and interest thereon will be on a parity with the payments required by Ordinance No. 2124 and this ordinance to be made out of such Current Water Fund to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds and the Bonds. 3. g. The words "1955 Bond Redemption Fund" shall mean the Fund of the city known as the "Bremerton 1955 Water and Sewer Revenue Bond Redemption Fund" and the Reserve Account in such Fund created by Sections 7 and 8 respectively of Ordinance No. 2124 of the city for the purpose of paying and. securing the payment of the principal of and interest on the Outstanding Parity Bonds. Section 2. The Council hereby finds and determines, as required by Section llB of Ordinance No. 2124 and Section 10 of Ordinance No. 2225, as follows: First, that the Bonds are issued for the purpose of providing funds to redeem and retire a like principal amount of outstanding water and sewer revenue bonds of the city issued under date of June 1, 1957. Second~ that neither the coupon rates of interest on the Bonds nor the effective rate of interest over the life of the Bonds exceeds the coupon rates of interest on the bonds being refunded or the effective rate of interest over the life of the bonds being re- funded. Third~ that with the use in 1980 of the money in the Reserve Account hereinafter create~ the issuance of the Bonds and the retire- ment of the like principal amount of outstanding June 1~ 1957 water and sewer revenue bonds of the city does not require a greater amount to be paid. out of the Current Water Fund in any calendar year here- after for the payment of the principal of and interest on the Bonds than would be required to be paid out of such Fund. in the same calendar year hereafter for the payment of the principal of and interest on the bonds being redeemed. Fourth, that by Section 8 of this ordinance the city covenants that a Reserve Account has been created in the Bond Redemption Fund created to pay the principal of and interest on the Bonds~ and that the city has pledged that it will pay into such Reserve Account, within 4. five years from the date of issuance of the Bonds, a sum at least equal to the average amount required each calendar year-for debt service on the Bonds. The conditions contained in Section lib of Ordinance No. 2124 and Section 10 of Ordinance No. 2225 having been complied with, the payments required herein to be made out of the Current Water Fund into the 1962 Water and Sewer Revenue Bond Redemption Fund and Reserve Account therein to pay and secure the payment of the principal of and interest on the Bonds shall constitute a lien and charge upon the money in the Current Water Fund equal in rank with the lien and charge thereon for the payments required to be made into the 1955 Bond Re- demption Fund and Reserve Account therein to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds. Section 3. For the purpose of providing funds to redeem and retire bonds numbered 26 to 318 inclusive of that certain ismue of water and sewer revenue bonds of the city issued pursuant to Ordinance No. 2225 and under date of June 1, 1957, the city shall issue the Bonds. The Bonds shall be dated June 1, 1962, shall be in denomina- tions of $1~000 each, and shall be numbered, mature, and bear interest payable on the first day of December, 1962 and semiannually on the first days of June and December of each year thereafter as follows: Interest Bond Nos. Maturity Date Amount Rate 1-13 June 1, 1963 $13,000 3 1/4% 14-26 June 1, 1964 13,000 3 1/4% 27-39 June 1, 1965 13,000 3 1/4% 40-53 June '1, 1966 14,000 3 1/4% 54-67 June 1, 1967 14,000 3 1/4% 68-81 June 1, 1968 14,000 3 3/8~ 82-96 June 1, 1969 15,000 3 3/8~ 97-112 June 1, 1970 16~000 3 3/8% 113-128 June 1, 1971 16~000 3 3/8~ 129-144 June 1~ 1972 16,000 3 3/8~ 145-161 June 1, 1973 17~000 3 3/~ 162-178 June 1, 1974 17~000 3 3/8~ 179-195 June 1, 1975 17~000 3 1/~ 196-213 June 1~ 1976 18,000 3 1/2% 214-231 June 1~ 1977 18~000 3 1/2% 232-250 June 1, 1978 19,000 3 3/4% 251-269 June 1~ 1979 19~000 3 3/4% 270-293 June l, 1980 24,000 3 3/4% 5. J Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America at the office of the City Treasurer in Bremerton# Washington, and shall be obligations only of the special 1962 Bond Redemption Fund hereinafter created. Section 4. The city hereby reserves the right to redeem any or all of the Bonds outstanding, in whole~ or in part in inverse nu- merical order~ on the following interest payment dates and at the following prices expressed as a percentage of the principal amount~ plus accrued interest to the date of redemption: On June 1 and December 1~ 1967, ~ 103 On June 1 and December 1, 1968~ ~ 102 On June 1 and December 1, 1969~ ~ 101 On June 1, 1970 and any interest payment date thereafter~ ~ 100. Notice of any such intended redemption shall be given by one publication thereof in the official city newspaper not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to Marshall and Meyer~ Inc. at their main place of business or to the successor in business of said corporation, if any, at its main place of business. Interest on any Bond or Bonds so called for redemption shall cease on such redemption date unless such Bond or Bonds are not redeemed upon presentation made pureuant to such call. Section 5. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO. $1,000 STATE OF WASHINGTON CITY OF BREMERTON WATER AND SEWER REVENUE REFUNDING BOND~ 1962 The City of Bremerton~ a municipal corporation of the State of Washington, hereby acknowledges itself to owe and for value received promises to pay to bearer on the first 6. J d~y of June, 19 ~ the principal sum of ONE THOUSAND DOLLARS together with interest thereon at the rate of ,% per annum payable on the first ~ay of December~ 1962 and semi- annually on the first days of June and December of each year thereafter as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become due, or until the ~ayment of such principal sum shall be made or duly provided for. Both principal of and interest on this bond are payable in lawful money of the United States of America at the office of the City Treasurer in Bremerton~ Washington, solely out of the special fund of the city known as "Bremerton 1962 Water and Sewer Revenue Refunding Bond Redemption Fund" created by Ordinance No. 2499 of the city. The city has reserved the right to redeem any or all of the bonds of this issue outstanding, in whole, or in part in inverse numerical order, on the following interest payment dates and at the following prices expressed as a percentage of the principal amount, plus accrued interest to the date of redempt ion: On June 1 and December 1, 1967~ ~ 103 On June 1 and December 1, 1968, ~ 102 On June 1 and December 1, 1969~ ~ 101 On June 1, 1970 and any interest payment date thereafter, ~ 100. Notice of any such intended redemption shall be given by one publication thereof in the official city newspaper not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to Marshall and Meyer, Inc. at their main place of business or to the suc- cessor in business of said corporation, if any~ at its main place of business. 7. This bond is one of an issue of water and sewer revenue refunding bonds of the city of like amount, date and tenor except as to number~ interest rate and date of maturity~ in the total principal sum of $293~000~ which bonds are issued pursuant to laws of the State of Washington and the Charter and ordinances of the city~ for the purpose of providing funds to redeem and retire a like principal amount of outs~nding water and sewer revenue bonds of the city. Ail of the bonds of this issue are payable solely out of the gross revenue of the combined water and sewerage system of the city and all additions and improvements thereto and extensions thereof. The City of Bremerton hereby covenants and agrees with the owner and holder of this bond that it will keep and perform all the covenants of this bond and of Ordinances ~o. 2124 and No. 2499 to be by it kept and. performed. The City of Bremerton does hereby pledge and bind itself to set aside fr~m the money in its Current Water Fund~ and to pay into said 1962 Bond Redemption Fund and the Reserve Account created, thereinby said Ordinance No. 2499~ the various amounts requiredby said ordinance to be paid into and maintained in said Fund and Account~ all within the times provided by said ordinance. The city has further pledged and bound itself to pay into said. Current Water Fund~ as collected~ all of the gross earnings and revenue derivedbythe city from the operation of its combined water and sewerage system and all additions and improvements thereto and extensions thereof. Said amounts so pledged are hereby declared to be a prior lien and charge upon the money in said. Current Water Fund superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of such combined system and the charges necessary for the payment of the principal 8. of and interest on the outstanding water and sewer revenue bonds of the city issued under date of October 1~ 1949~ and equal in rank to the charges made upon the money in said Current Water Fund for the payment of the principal of andinterest on the outstanding water and sewer revenue bonds of the city issued under date of October 1~ 1955 and to any charges that may be made later upon the money in said Fund for the payment of the principal of and interest on any revenue bonds which the city may issue later on a parity with said outstanding October 1~ 1955 bonds and the bonds of this issue. The City of Bremerton has further bound itself to maintain said combined water and. sewerage system in good repair~ working order and condition~ to operate the same in an efficient manner and at a reasonable cost~ and to establish~ maintain and col- lect rates and charges for water supplied and sanitary sewage disposal service furnished that will provide revenue sufficient to pay the necessary cost of maintenance and operation of said combined system, to pay the amounts necessary for the payment of the principal of and interest on said outstanding water and sewer revenue bonds of the city~ and to pay into said 1962 Bond Redemption Fund and the Reserve Account therein the amounts which the city has pledged to be set aside and so paid therein. It is hereby certified and declared that this bond and the bonds of this issue are issued pursuant to and in strict compliance with the Constitution and laws of the State of Washington and the Charter and ordinances of the City of Bremerton, and that all acts~ conditions and things required to be done precedent to and in the issuance of this bond. have happened, been done and. per- formed° IN WITNESS WHEREOF the City of Bremerton~ W~shington, has caused this bond to be signed by its Mayor~ to be attested by 9. its Clerk, the corporate seal of the city to be impressed hereon, and the interest coupons attached hereto.to be signed with the facsimile signatures of said officials, this first day of June, 1962. CITY OF BREMERTON~ WASHINGTON By Mayor ATTEST: City Clerk The interest coupons to be attached to the Bonds shall be in substantially the following form: NO. $ On the first day of , 19 , the City of Bremerton~ Washington, will pay to bearer at the office of the City Treasurer in Bremerton the sum of DOLLARS in lawful money of the United States of America out of the special fund of the city known as "Bremerton 1962 Water and Sewer Revenue Refunding Bond Redemption Fund~" said sum being the semiannual interest due that day on its water and sewer revenue refunding bond dated June 1, 1962 and numbered. . CITY OF BREMERTON~ WASHINGTON By Mayor ATTEST: City Clerk Section 6. The Bonds shall be signed on behalf of the city by its Mayor~ shall be attested by the City Clerk, and shall have the corporate seal of the city impressed thereon. The interest coupons attached to the Bonds shall be signed with the facsimile signatures of said officials. 10. Section 7. That there be and is hereby created a special fund of the city to be known as "Bremerton 1962 Water and Sewer Revenue Refunding Bond Redemption Fund, (herein called the "1962 Bond Redemption Fund"), which Fund is to be drawn upon for the sole purpose of paying the principal of and interest on the Bonds as the same shall become due. From and after the date of the Bonds and for as long as any of the same are outstanding and unpaid, the City Treasurer shall set aside and pay into the 1962 Bond Redemption Fund out of the Current Water Fund, at least thirty days prior to the r~pective dates on which the interest on or principal of and interest on the Bonds shall become due, the amount of such interest or principal and interest next coming due on the Bonds outstanding. Such payments shall be a charge upon the money in the Current Water Fund ranking equally and ratably and on a parity with the payments required by Ordinance~No. 2124 of the city to be made into the 1955 Bond Redemption Fund° W~en there is sufficient money in the 1962 Bond Redemption Fund and the Reserve Account therein hereinafter created to redeem and retire all of the Bonds outstanding and to pay the interest and premium~ if any, due thereon on such redemption date~ then no further payments need be made into the 1962 Bond Redemption Fund. Said amounts so pledged to be paid into the 1962 Bond Re- demption Fund and the Reserve Account therein are hereby declared to be a prior lien and charge upon the money in the Current Water Fund superior to all other charges of any kind or nature except the neces- sary cost of maintenance and operation of the System and the charges necessary for the payment of the principal of and interest on the Outstanding Prior Limn Bonds, and equal in rank to the charges upon the money in such Current Water Fund necessary for the payment of the principal of and interest on the Outstanding Parity Bonds and 11. to any charges which may be made on the money in such Fund to pay and secure the payment of the principal of and interest on any Future Parity Bonds. Section 8. A Reserve' Account is hereby created in the 1962 Bond Redemption Fund, and the city hereby agrees that it will set aside and pay into said Reserve Account, out of the money in the Current Water Fund and out of any other moneys which it may now or later have on hand and available for such purpose, the sum of $22,200 by June 1, 1967. The city further agrees that it will meet such obligation by the payment of at least $4,440 principal each 12-month period ending on May 31 of the calendar years 1963 through 1967 inclusive. The city further agrees that when said. sum of $22,200 has been paid therein it will at all times maintain that amount therein until there is a sufficient amount in the 1962 Bond Redemption Fund and this Reserve Account to redeem and retire all of the Bonds outstanding with accrued interest, and premium if any, to such date of redemption. In the event there shall be a deficiency in the 1962 Bond Redemption Fund to meet maturing installments of either interest on or principal of and interest on the Bonds outstanding, 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 money in the Current Water Fund first available after making necessary provision for the payments into the 1955 Bond Redemption Fund and the 1962 Bond Redemption Fund. All money in the Reserve Account may.be kept in cash or invested in direct obligations of the United States of America having a guaranteed redemption price or maturing not later than twelve years from date of purchase, and in no event maturing later than the last 12. maturity of the Bonds outstanding at the time of such purchase. Interest earned on any such investments shall be deposited in and become a part of the 1962 Bond Redemption Fund. Section 9. The corporate authorities of the city hereby declare~ in fixing the amounts to be paid into the 1962 Bond Re- demption Fund and Reserve Account as prOvided herein, that they have exercised due regard to the cost of maintenance and operation of the System and the amount of the revenue of the System previously pledged for the payment of the principal of and interest on the Outstanding Prior Lien Bonds and Outstanding Parity Bonds of the city, and have not obligated the city to set aside and. pay into said Fund an~ Account a greater amount of the revenue of the System than in their judgment will be available over and above such cost of maintenance and operation and the charges necessary to pay the principal of and interest on such outstanding bonds. Section 10. The City of Bremerton hereby covenants with the owner and holder of each of the Bonds as follows: The covenants and agreements of the city containe~ in Ordinance No. 2124 and. particularly in Sections 6, 10 and 11 thereof, constituting agreements of the city protecting and safeguardLng the security and rights of the holders of the Outstanding Parity Bonds, shall be equally applicable to the Bonds~ shall inure to the benefit of the holders from time to time of the Bonds~ and. are hereby made a part of this ordinance with respect to the Bon~s as though fully set forth herein. The city hereby reserves the right to issue Future Parity Bonds under the same terms, conditions and requirements and with the same limitations and restrictions as provided in Section 11 of Ordinance No. 2124 for the issuance of additional or refunding revenuebonds on a parity with the Outstanding Parity Bonds~and the Bonds. 13. Section 11. The sale of the Bonds to Marshall and Meyer, Inc., investment bankers of Seattle, Washington, at par and accrued interest, if any, to date of delivery, and under the terms and con- ditions of the Bonds as set forth herein, is hereby in all respects ratified and confirmed. Upon the delivery of the Bonds the proper city officials are hereby authorized and directed to deposit the proceeds of such sale into the Bremerton 1957 Water and Sewer Revenue Bond Redemption Fund and to use the same for the sole purpose of redeeming and re- tiring the outstanding June 1, 1957 water and sewer revenue bonds of the city numbered 26 to 318 inclusive. Section 12. This ordinance is declared to be one necessary for the immediate preservation of the welfare and property of the City of Bremerton, Washington, and its inhabitants, and in order to have the Bonds ready for delivery and the money on hand to redeem such outstanding June 1~ 1957 water and sewer revenue bonds on June 1, 1962, it is hereby found necessary that this ordinance become effective immediately. Therefore, an emergency is hereby declared to exist and this ordinance is hereby declared to be in full force and effect from and after its passage~ approval and publication as required by law. PASSED UNANIMOUSLY by the Council of the City of Bremerton, Washington, at a regular meeting thereof, signed by the Mayor~ and attested by the City Clerk in authentication of such passage this 2d day of May, 1962. CITY OF BREMERTON, WASHINGTON ~ayor ATTEST: City Clerk APP~D AS TO FQRMl ~ / ' ' City Attorney 14.