HomeMy WebLinkAbout1065 ORDINANCE NO. 1065
AN ORDINANCE providing for the sale by the City of Bremerton of Water
Department Refunding Bonds of 1935 to be issued pursuant to Chapter 81 of the Laws
of 1935 for the purpose of refunding $88,700 of improvements and betterments water
works bonds issued by the City of Bremerton July l, 1921, pursuant to Ordinances
numbered 555 and 714 for the purpose of making additions and betterments and
extensions to its water system used for the purpose of supplying the City of
Bremerton and its inhabitants with water; establishing a special fund for the
payment of said refunding bonds; and providing for the setting aside and payment
into said special fund a fixed amount yearly out of the gross revenues of the said
water system, and declaring an emergency
WHEREAS, the City of Bremerton on July 1, 1921, issued and s01d "Improvements
and Betterments Water Works Bonds" in the total authorized amount of $180,000
pursuant to Ordinances Numbered 555 and 714 for the purpose of making additions,
betterments and extensions to the water works system of said City, which said
bonds are payable solely from a special fund created by an ordinance of said city
into which special fund said city is obligated to set aside and pay a proportion
of its gross revenues, and,
WHEREAS, the said City of Bremerton now has outstanding of the said issue of
bonds of $88,700, which said bonds, by their terms, are subject to call for
redemption on July l, 1935, and,
WHEREAS, it is deemed advisable by the Mayor and City Commissioners of the
City of Bremerton to call for redemption and pay the said $88,700 of said issue
on July l, 1935, being the entire balance of said issue which will be then out-
standing, and the said Mayor and Commissioners having elected so to redeem said
bonds and having issued a call therefor, and,
WHEREAS, it is necessary for the City of Bremerton to issue and sell its
Water Department Refunding Bonds of 1935 in the aggregate principal amoGnt of
$88,700 in order ct obtain sufficient funds with which to pay and redeem the said
outstanding bonds:
NOW, THEREFORE, BE IT ORDAINED BY THE ~YORAND COM~iISSIONERS OF THE CITY
OF BREMERTON:
Section 1. That the City of Bremerton, pursuant to Chapter 81, Laws of 1935
of the State of Washington, issue and sell pursuant to its contract heretofore
made Water Department Refunding Bonds of 1935 in the aggregate stm~ of $88,700 for
the purpose of paying and redeeming its outstanding "Improvements and Betterments
Water Works Bonds," dated July l, 1921, now outstanding in the sum of $88,700.
Said refunding bonds shall bear interest at the rate of 2~%, 3 1/4% and 3 3/4
per annum, as more fully appears from the schedule hereinafter set forth, Said
interest shall be payable semi-annually and shall be evidenced by interest coupons
thereto attached. Said bonds shall be in denominations of $500 each, except bond
No. 88, which shall be in the sum of $200, to be n~bered from i to 178, both
inclusive, and shall be dated July l, 1935, and shall be payable, both principal
and interest, from a special fund hereafter ~n this ordinance created. Said bonds
shall be payable and shall bear interest as follows:
No. Amount Maturity Interest
1-6 $3,000 Jan. l, 1936 2~
7-12 3,000 July l, 1936 2~
13-20 4 000 Jan 1, 1937
21~28 4,000 July 1, 1937 2
29-36 4,000 Jan. 1, 1938 2~
37-44 4,000 July ~, 1938 3~
45-52 4,000 Jan. 1, 1939 3~
53-60 4,000 July 1, 1939 3~
61-69 4,500 Jan. 1, 1940
70-78 4,500 July 1, 1940
79-87 4,500 Jan. 1, 1941
88 200 Jan. 1, 1941
89-98 5,000 July 1, 194~ 3 3/4%
99-108 5,000 Jan. 1, 1942 3 3/4%
109-118 5,000 July 1, 1942 3 3~4 %
119-128 5,000 Jan. 1, 1943 3 3/4%
129-138 5,000 July 1, 1943 3 3/4%
139-148 5,000 Jan. 1, 1944 3
149-158 5,000 July 1, 1944 3
159-168 5,000 Jan. 1, 1945 3 3/4%
169-178 5,000 July 1, 1945 3 3/4%
Said bonds, principal and interest shall be payable at the office of the
City Treasurer of the City of Bremerton, Washihgton. Said bonds shall be signed
by the Mayor of the City of Bremerton, sealed with the seal of the city and
attested by the City Clerk. The couponsshall be signed with the facsimile
signatures of said Mayor and Clerk and said bonds shall comply with this ordin-
ance, the general laws of the State of Washington and Chapter 81 of the Laws of
1935.
Section 2. Said bonds shall be in substantially the following form:
NOeeeeeeee,I See..eel.
UNITED STATES OF ~RICA
STATE OF WASHINGTON
City of Bremerton
WATER DEPARTmeNT REFUNDING BOND OF 1935
The City of Bremerton, for value recieved, promises to pay to the bearer
hereof the sum of .... Dollars $( ), together with interest thereon
from the date hereof ~J~{ paid at the rate of.. per cent per annum, payable
semi-annually on the let day of January and Jul~'~J each Year, as evidenced by
interest coupons hereto attached, said interest to be payable upon the presen-
tation and surrender ~f said coupons as they become due. Both principal and
interest shall be payable in lawful money of the United States of America at the
office of the Treasurer of the City of Bremerton. This bond, both principal and
interest, shall be payable solely from a special fund created therefore by
ordinance of the City of Bremerton, said fund being created by Ordinance No.
1065, dated June 29th, 1935, which said special fund is denominated "Water
Department Refunding Bond Fund."
This bond is one of an issue of negotiable coupons' refunding bonds in the
total sum of $88,700, and is payable solely out of the special fund called
"Water Departsemt Refunding Bond Fund", created by Ordinance No. 1065, which fund
is to be drawn against for the sole purpose of paying the principal and interest
of said bonds.
The City of Bremerton covenants and agrees with the holder of this bond that
so long as any of said issue of bonds are outstanding it will set aside and pay
into said fund out of the gross revenues of its water system a sum sufficient to
pay the interest upon said bonds and further to pay the principal of said bonds
at their maturity and this issue of bonds is hereby declared to be a first and
prior lien upon the moneys in said fund and the revenuers to be paid into the
same.
The City of Bremerton binds itself not to sell, lease or in any manner
dispose of its water works wystem now belonging or which may hereafter belong
to it, including additions thereto and extensions thereof, until all of the
bonds of this issue, principal and interest, have been paid in full. And said
city further binds itself to maintain said water works system in good condition
and to establish and maintain rates or charges for water furnished that will
produce sufficient sums to pay all charges against said system, including the
cost of operation and maintenance of said system.
It is hereby recited and declared that said issue of bonds has been issued
pursuant to and in strict compliance with Chapter 81 of the L6ws of 1935 of the
State of Washington and of the ordinances of said City of Bremerton referred to
in this bond, and in strict compliance with the Constitution and general laws of
the State of Washington, and that all acts, things, ordinances, resolutions and
conditions precedent, necessary or requisite to the validity of this bond and of
the issue of bonds of which it forms a part, have happened, existed and have
been done and performed prior to the issuance thereof.
IN WITNESS WHEREOF, the City of Bremerton has caused this bond to be signad
by its Mayor and attested by its City Clerk, and has caused its corporate seal
to be hereto affixed and the coupons hereto attached to be signed and sealed
with the lithographed signatures of said officers this let day of July, 1935.
CITY OF BREI~ERTON
BY J. A. McGILLIVRAY
Attest: Mayor
E. J. McCall
City Clerk
Ordinance No. 1065 (cont)
INTEREST COUPON
coupon number ..... $ .........
On the first day of . 1935, the City of Bremerton, State of Washington
will pay to bearer, at th~ ~''' '
ice of the City Treasurer of the City of Bremerton,
Washington, the sum of ......... DOLLARS ($ ), in lawful money of the United
States of America, the same being the semi-annual interest due that day on its
Water Department Refunding Bond of 1935, dated July l, 1935.
CITY OF BREMERTON
BY ...............
Attest: Mayor
E. J. McCall
City Clerk
. ..Section 3. That there shall be a continuation in the Treasury of ~he City
of Bremerton of the special fund heretofore created by Ordinance No. 714 of said
city and known and designated as Bremerton Improvements and Betterments Water
Bond Fund. That into said fund shall be paid the proceeds of ~e sale of the
refunding bonds authorized by this ordinance. The City Treasurer is authorized
and directed to draw upon said fund for the payment of the bonds called to be
redeemed by this refunding issue. That there shall be and there hereby is created
in the Treasury of the City of Bremerton a special fund to be known as "Bremerton
Water Department Refunding Bond Fund", which shall be drawn upon for the sole
purpose of paying the refunding bonds authorized b~ this ordinance and the interest
thereon, into which special fund from and after July 1, 1935, and so long thereafter
as obligations are outstanding against such fund, the City Treasurer of the City
of Bremerton shall set aside and pay out of the revenues of the water system of
the said city a certain fixed amount sufficient to pay the respective amounts of
interest, or principal and interest, as the case may be, falling due upon bonds of
this issue from time to time outstanding. The gross revenues of the said water
system are hereby pledged to such payments, and such payments shall constitute a
charge upon all of such gross revenues prior to and superior to all subsequent
liens and charged. In creating said special fund the Commissioners of the City of
Bremerton declares that they are exercising due regard to the cost of operation and
maintenance of said water system as now constructed, and are ~xercising due regard
to any proportion or part of the revenues of such water system previously pledged
as a-~und for the payment of bonds, warrants or other indebtedness, and that they
are not binding nor obligating said City of Bremerton to set aside into such
special fund a greated amount of the revenues and proceed of said water system
than in their Judgment will be availabe over and above the cost of maintenance and
operation and the amount or proportion of the revenues thereof previously pledged,
and further declare that the gross revenues to be derived from the operation of
said water system, in the judgment of the corporate authorites of the said City of
Bremerton will be sufficient to meet all expenses of operation and maintenance,
together with all revenues previously pledged, and in addition are sufficient to
permit the setting aside into said special fund of amounts sufficient to pay the
interest and principal of the bonds hereby authorize~ as the same fall due.
~ Section 4. The City of Bremerton Water Department Refunding Bonds of 1935
shall be and shall continue to be a direct lien against the entire gross revenues
of the water system of the said city, after deducting~the reasonable cost of
operation and maintenance, and shall be ~rior to the lien of any future indebted-
ness which may be created by said City which is payable out of the revenues of
said water system, and it is expressly covenanted by the~said city that any future
indebtedness which may be Created and is payable out of the revenue of said
water system shall constitute a junior lien to the charge created by this ordinance.
Section5. The City of Bremerton binds itself not to sell, lease or in any
manner dispose of its water system or additions or extensions thereof until all
of the bonds hereby authorized shall have been paid in full. And the said city
covenants, and agrees to maintain the said water system in good condition and to
operate the same, and to charge rates for water which will enable the said system
to make the payments herein required to be made.
Section 6. The ~ayor and the City Clerk of the City of Bremerton are hereby
authorized and directed to execute in the manner required by this ordinance the
said $88,700 of bonds hereby authorized, and the Treasurer of the City of
Bremerton is hereby authorized and directed, upon receiving ~ayment in full of the
purchase price of said bonds, to deliver the same to Grande, Stolle & Co., the
purchasers thereof.
Ordinance No. 1065 (cont)
Section 7. This Ordinance is necessary for the immediate preservation of
the public peace, health and safety, and for the support of the city government
and its existing institutions, and the same shall take effect immediately after
its passage and publication, as provided by law.
Unanimously passed b~ the City Commission of the City of Bremerton this
29th day of June, 1935.
Attest:
~un~y of ~it~ap ) ' '
th. undt~i~ned do certify that the ~
or~ncs pa;~d by ~t;e cry ~mmi~ioa
the =Dot Bre~n, Wa~ oq