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DATE SUBMITTED: May ]6,2007
BILL # 01- \,.f-\
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
........................................................................................
SUBJECT: Ordinance No. 5011
authorizing the issuance of water and sewer
refunding and revenue bonds in the principal
amount of $5,375,000
Committee Meeting Date:
COUNCIL MEETING Date:
Department:
Presenter:
Phone:
5/2312007
6/612007
Financial Services
Laura Lyon
473-5722
SUMMARY: The City's wastewater utility system requires a bond issue to finance the sewer system
expansion project to Southwest Bremerton. In addition, the City desires to refund and retire the
currently outstanding 1994 Water and Sewer Revenue Bonds maturing on September 1,2007 with
principal amount of $2,655,000 outstanding, and the 2005 ULID Revenue Bond which has a final
maturity of September 1,2015 and with the principal amount of $365,928 outstanding. In order to
finance these City capital improvements of the water and sewer utilities and to refund fhe and retire
the 1994 and 2005 revenue bonds outstanding, the Director of Financial Services is recommending
that the City Council issue a water and sewer revenue and refunding bond with a lien on the revenues
of the combined utility system. The City has received a proposal from Bank of America, N. A. to
purchase such a bond and on terms and conditions that are acceptable to the Director of Financial
Services and is now recommended for approval by the City Council.
ATTACHMENTS: Explanatory Memo and Ordinance No. 5011
FISCAL IMPACTS (Include Budgeted Amount): The adopted 2007 budget included additional debt
for the wastewater utility for this purpose and is sufficient in amount for the issuance as finalized.
The bond issue provides net proceeds for the sewer expansion project of approximately $~ million
and provides debt service savings on the refunded bonds having a net present value of $ ~.
Interest rate on the bonds is ~ with a final maturity on 12/01/21. 1O.,oi.
4.2.~o/..
APPRO V ALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MA YOR:
COMMITTEE CHAIR
COUNCIL PRESIDENT:
~~
CONSENT AGENDA D
GENERAL BUSINESS
PUBLIC HEARING D
RECOMMENDED MOTION: Move to approve ordinance No. 501] authorizing the issuance of a water
and sewer revenue and refunding bond in the principal amount of $5,375,000 to fund capital improvements
and expansion of the City's water and sewer system and to defease the City's outstanding water and sewer
revenue bonds; providing the form, terms, and covenants of the Bond; and approving the sale of the Bond.
COUNCIL ACTION: ~prove
o Deny
o Table
o Continue 0 No Action