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CITY OF BREMERTON, WASHINGTON
ORDINANCE NO. L..\ ~ ~ ~
AN ORDINANCE of the City of Bremerton, Washington,
relating to the waterworks utility of the City, including the
sewerage system as a part thereof; providing for the issuance of
a Water and Sewer Revenue Bond, 2005 of the City in the
principal amount of $406,587 to pay part of the costs of
constructing improvements to the City's water system,
including improvements related to Utility Local Improvement
District No. 2002-01; fixing the date, form, terms, interest rate,
maturity and covenants of such bond; providing for the sale
and delivery of such bond to Bank of America, N.A. and
establishing the interest rate on installments and delinquent
payments of special assessments in said district.
WHEREAS, the City now owns, maintains and operates the System, which has from time
to time required various additions, betterments and extensions; and
WHEREAS, pursuant to Ordinance No. 4451, the City issued its $11,000,000 par value
Water and Sewer Revenue Bonds, 1994, and, by Section 12 of Ordinance No. 4451, reserved the
right to issue additional water and sewer revenue bonds on a parity of lien with the 1994 Bonds if
the certain conditions were met and complied with at the time of issuance of those bonds; and
WHEREAS, by Ordinance No. 4837, the City established UUD No. 2002-01; ordered to
be carried out the proposed improvements of such district as set forth therein; and provided that
payment for the improvements be made by special assessments upon the property within UUD
No. 2002":01; and
WHEREAS, pursuant to Ordinance No. 4935, after notice and hearing required by law,
the City approved and confirmed the final assessments and assessment roll ofUUD No. 2002-01
in the total amount of $467,841.00; and
WHEREAS, assessments in the amount of$61,254.17 were paid during the 30-day
period for making cash payments of assessments without penalty, interest or costs; and
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WHEREAS, the City Council has determined that it is necessary to issue and sell a water
and sewer revenue bond to repay and retire the interfund loan incurred to pay the costs of the
Improvements and to pay the incidental costs and costs of issuing such bond; and;
WHEREAS, the Purchaser has proposed, by way of the Proposal, to purchase such bond
upon the terms and conditions hereinafter set forth; and
WHEREAS, the City Council deems it in the best interests of the City to accept an offer
by the Purchaser to purchase such bond on the same terms and conditions as the Proposal, and to
deliver such bond to the Purchaser; NOW, THEREFORE,
THE CITY OF BREMERTON, WASHINGTON DOES ORDAIN AS FOLLOWS:
Section 1. Definitions. As used in this ordinance (including the recitals hereto), the
following words shall have the following meanings:
"Annual Debt Service" means, in any year, that year's total of principal and interest
requirements for the then outstanding bonds (except the principal maturity of Term Bonds) to
which the term Annual Debt Service refers, plus the principal of any bonds subject to a
mandatory prior redemption or mandatory sinking fund payment for that year, less all capitalized
interest payable that year from such bonds.
"Average Annual Debt Service" means the sum of the Annual Debt Service for the
remaining years to the last scheduled maturity of the applicable issue or series of the 1994
Bonds, the Bonds and Future Parity Bonds divided by the number of those years.
"Bond Fund" means the Water and Sewer Revenue Bond Fund, 1985, created by
Ordinance No. 3989 for the purpose of paying and securing the principal of and interest on the
1994 Bonds, the Bond and any Future Parity Bonds.
"Bond" means the Water and Sewer Revenue Bond, 2005, authorized to be issued by this
Ordinance.
"Bond Register" means the registration books of the Registrar on which are maintained
the name and address of the Owner of the Bond.
"Bond Registrar" means the City, in its capacity as registrar and paying agent for the
Bond.
"City" means the City of Bremerton, Washington, a first class City ofthe State of
Washington.
"City Council" means the City Council ofthe City.
"Code" means the Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.
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"Coverage Requirement" means Net Revenue of the System at least equal to 1.30 times
the actual Annual Debt Service on all 1994 Bonds, the Bond and any Future Parity Bonds. For
purposes of determining the Coverage Requirement for the issuance of Future Parity Bonds with
respect to variable rate indebtedness, such debt shall be assumed to bear interest at a fixed rate
equal to the higher of9.2% and the highest variable rate borne by outstanding variable rate debt
issued during the preceding 24 months, or if no variable rate debt is outstanding at the time of
calculation but is then proposed to be issued, the rate borne by other variable rate debt the
interest rate for which is determined by reference to an index comparable to the index to be used
to determine the interest on the variable rate debt to be issued.
"Current Water Fund" means the fund (and sub funds and accounts therein) ofthe City of
that name heretofore created into which fund shall be paid all Gross Revenue of the System.
"Future Parity Bonds" means any and all revenue bonds of the City issued after the date
of the Bond pursuant to the provisions of Section 18 of Ordinance No. 4451 and Section 15 of
this Ordinance, the payment of the principal of and interest on which constitutes a lien and
charge upon the Gross Revenue of the System on a parity with the lien and charge upon such
Gross Revenue for the 1994 Bonds and the Bond.
"Government Obligations" means noncallable direct obligations of the United States of
America.
"Gross Revenue of the System" means all the earnings and revenue received by the
System from any source whatsoever, including from the sale of forest products from System-
owned lands, except general ad valorem taxes, grants from the state, federal or local
governments, earnings in any refunded bond escrow account or fund, gifts to the System for
capital purposes, proceeds from the sale of City or System property, and proceeds of City or
System obligations.
"Improvements" means those certain capital improvements to the City's water system,
including the improvement of the West 650 Zone distribution water main, authorized by and
carried out through UUD No. 2002-01.
"Maximum Annual Debt Service" means the maximum amount of Annual Debt Service
which shall become due in any future year on any outstanding 1994 Bonds, the Bond and any
Future Parity Bonds.
"Net Revenue ofthe System" means the Gross Revenue ofthe System less Operating and
Maintenance Expenses.
"1994 Bond Insurance Policy" means the municipal bond new issue insurance policy
issued by the 1994 Bond Insurer that guarantees the timely payment of principal of and interest
on the 1994 Bonds.
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"1994 Bond Insurer" means Financial Guaranty Insurance Company, a New York stock
insurance company, or any successor thereto, as issuer of the 1994 Bond Insurance Policy.
"1994 Bonds" means the Water and Sewer Revenue Bonds, 1994, authorized to be issued
by Ordinance No. 4451.
"Operating and Maintenance Expenses" means all reasonable expenses incurred by the
City in causing the System to be operated and maintained in good repair, working order and
condition, including without limitation payments (other than payments out of proceeds of the
Bond or Future Parity Bonds) of premiums for insurance on the System, and any State-imposed
taxes, and also including all payments made to another agency for treatment or disposal of
sewerage or acquisition of water, but excluding depreciation and amortization, and any City-
imposed utility taxes or payments in lieu of taxes payable from the Gross Revenue of the
System.
"Owner" means the person named as the registered owner of the Bond on the Bond
Register.
"Permitted Investments" means the following to the extent the same are legal for the
investment of money of the City: (1) bonds, notes and other evidences of direct indebtedness of
the United States of America and securities unconditionally guaranteed as to the timely payment
of principal and interest by the United States of America ("Government obligations"); (2)
obligations of the Federal National Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Government National Mortgage Association, Federal Home Loan Banks, or the
Export-Import Bank of the United States; (3) direct obligations of, or obligations unconditionally
guaranteed by, any state ofthe United States, or any subdivision, agency, instrumentality or
authority thereof rated Aa3 or better by Moody's Investors Service ("Moody's") and AA - or
better by Standard and Poor's Corporation ("S&P"); (4) commercial paper rated Prime-1 by
Moody's and A-1+ by S&P; (5) deposits with any federally-, or state-, chartered savings and
loan association which has combined capital, surplus and undivided profits of not less than $3
million if the principal plus interest to accrue over the term of the deposit is fully insured by
FSUC or secured by instruments described in (1), (2) and (3) above; (6) deposits with any
federally-, or state-, chartered commercial bank, the deposits of which are insured by the FDIC
and which (i) has, or is the lead bank of a parent holding company which has, unsecured,
uninsured and unguaranteed obligations which are rated Aa2 or better by Moody's and AA or
better by S&P, or (ii) has combined capital, surplus and undivided profits of not less than $3
million if the principal plus interest to accrue over the term of the deposit is fully insured by the
FDIC or secured by instruments described in (1), (2) and (3) above; (7) investments in a money
market or other fund, the investments of which fund are exclusively in obligations or securities
described in subsections (1), (2) and (3) above; (8) repurchase agreements with a registered
broker/dealer subject to the Securities Investors' Protection Corporation Liquidation in the event
of insolvency, or any commercial bank (A) whose unsecured indebtedness is rated A2 or better
by Moody's or A or better by S&P, or (B) which is the lead bank of a parent bank holding
company whose unsecured indebtedness is rated A2 or better by Moody's and A or better by
S&P, or (C) having a combined capital, surplus and undivided profits of not less than $100
million and acceptable to the Trustee, which repurchase agreement shall provide that:
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(i) the repurchase obligation of the bank is collateralized by
the securities described in (1) above, themselves which shall be held by
the Trustee (unless the Trustee is obligated under the repurchase
agreement) or third party which is a Federal Reserve Bank or a
commercial bank with capital, surplus and undivided profits of not less
than $50 million and the Trustee shall have received written confirmation
from that third party that it holds those securities for the benefit of the
City;
(ii) a perfected security interest in favor of the Trustee in the
securities has been created under the Uniform Commercial Code or
pursuant to the book entry procedures described in 31 C.F .R. 306.1 et seq.
or 31 C.F.R. 350.0 et seq.;
(iii) the securities on the date of execution of the repurchase
agreement have a fair market value of at least 100% of the amount of the
repurchase obligation, including both principal and interest; and
(iv) the repurchase obligation is to be performed within 30 days
of the date described in (iii) above, or throughout the term of the
repurchase agreement the securities have a fair market value equal to at
least 100% of the amount of the repurchase obligation;
(9) an investment agreement with (a) an insurance company with unsecured, uninsured and
unguaranteed obligation (or claims paying ability) rated Aa2 by Moody's and AA by S&P, or
(B) a commercial bank (i) with unsecured, uninsured and unguaranteed obligations rated Aa2 or
better by Moody's and AA or better by S&P, respectively, or (ii) which is the lead bank of a
bank holding company whose unsecured, uninsured and unguaranteed obligations are rated Aa2
or better by Moody's and AA or better by S&P, but only if such agreement shall provide that it is
not subordinated to any other obligations of such insurance company or banking institution; or
the State of Washington Local Government Investment Pool.
The above investments shall be valued as frequently as deemed necessary by the City, in
any event not less than quarterly, at the market value thereof.
"Principal and Interest Account" means the account of that name created in the Bond
Fund by Ordinance No. 3989 for the payment ofthe principal of and interest on the 1994 Bonds,
the Bond and any Future Parity Bonds.
"Proposal" means the non-binding proposal letter dated August 3, 2005, of the Purchaser.
"Purchaser" means Bank of America, N.A., the purchaser of the Bond.
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"Reserve Account" means the account of that name created in the Bond Fund by of
Ordinance No. 3989 for the purpose of securing the payment of the principal of and interest on
the 1994 Bonds, the Bond and any Future Parity Bonds.
"Reserve Account Instrument" means, for the 1994 Bonds, the Debt Service Reserve
Fund Policy or Policies issued by Financial Guaranty Insurance Company, and for the Bond and
any Future Parity Bonds means any of the following:
A surety bond or insurance policy issued to the Bond Registrar as agent of the
bondowners, by a company licensed to issue an insurance policy guaranteeing the
timely payment of debt service on the bonds (a "municipal bond insurer") if the
claims paying ability of the insurer thereof shall be rated "AAA" or Aaa" by S&P
or Moody's, respectively.
A surety bond or insurance policy issued to the bond registrar for such bonds, as
agent ofthe bond owners, by an entity other than a municipal bond insurer.
An unconditional irrevocable letter of credit issued to the bond registrar for such
bonds, as agent of the bondowners, by a bank if the issuer thereof is rated at least
"AA" by S&P. The letter of credit shall be payable in one or more draws upon
presentation by the beneficiary of a sight draft accompanied by its certificate that
it then holds insufficient funds to make a required payment of principal or interest
on the bonds. The draws shall be payable within two days of presentation of the
sight draft. The letter of credit shall be for a term of not less than three years. The
issuer of the letter of credit shall be required to notify the City and the bond
registrar, not later than 30 months prior to the stated expiration date ofthe letter of
credit, as to whether such expiration date shall be extended, and if so, shall
indicate the new expiration date. Ifsuch notice indicates that the expiration date
shall not be extended, the City shall deposit in the Reserve Account an amount
sufficient to cause the cash or Permitted Investments on deposit in the Reserve
Account together with any other qualifying credit instruments, to equal the
Reserve Requirement on all outstanding bonds, such deposit to be paid in equal
installments on at least a semiannual basis over the remaining term of the letter of
credit, unless the Reserve Account Instrument is replaced by a Reserve Account
. Instrument meeting the requirements in any of the above. The letter of credit
shall permit a draw in full not less than two weeks prior to the expiration or
termination of such letter of credit if the letter of credit has not been replaced or
renewed.
The Reserve Account Instrument obtained by the City must be equal to part or all of the Reserve
Requirement for any bond or Future Parity Bonds then outstanding for which such instrument is
obtained. The use of a Reserve Account Instrument in the future is subject to the conditions set
forth in Section 11 of Ordinance No. 4451, as long as the 1994 Bonds are outstanding.
"Reserve Insurer" means Financial Guaranty Insurance Company, a New York stock
insurance company, or any successor thereto.
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"Reserve Requirement" means:
(1) For the Bond, the difference between the lesser of the Maximum Annual
Debt Service or 125% of the Average Annual Debt Service on the 1994 Bonds, and the
lesser of the Maximum Annual Debt Service or 125% of the Average Annual Debt
Service on the 1994 Bonds and the Bond.
(2) For any issue of Future Parity Bonds, the lesser oftheMaximum Annual
Debt Service or 125% of the Average Annual Debt Service on the then outstanding 1994
Bonds, the Bond, any Future Parity Bonds theretofore issued and outstanding, and such
issue of Future Parity Bonds. Such amount shall be accumulated within five years ofthe
date of issuance of the proposed Future Parity Bonds and, to the extent it is not
capitalized as a part of such Future Parity Bonds, shall be deposited in approximately
equal annual payments commencing one year after the date of issuance of such Future
Parity Bonds.
(3) For purposes of calculating the Reserve Requirement for the issuance of
Future Parity Bonds bearing interest at a variable rate, the requirement shall be the lesser
of 11 % per annum and the highest rate permitted, in the opinion of bond counsel,
consistent with maintaining the tax-exempt status ofthe Bond and the Future Parity
Bonds.
"State" means the State of Washington.
"System" means the existing combined water and sewerage systems of the City, together
with any storm drainage system or refuse disposal system now or hereafter combined therewith,
as the same may be added to, improved and extended for as long as the Bond and any Future
Parity Bonds are outstanding.
"Term Bond Maturity Year" means any year in which Term Bonds are scheduled to
mature.
"Term Bonds" means any Future Parity Bonds of any single issue or series designated as
Term Bonds in the ordinance authorizing the issuance of Future Parity Bonds.
"ULID No. 2002-01" means Utility Local Improvement District No. 2002-01.
Section 2. Findings Regarding Parity Provisions and Determination Regarding Lien
Position; Storm Drainage System. The City Council finds that:
a. There is no deficiency in either the Principal and Interest Account or the
Reserve Account in the Bond Fund;
b. Provision is made in Section 10 of this Ordinance for the payment of
principal of and interest on the Bond from the Principal and Interest Account.
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c. The Reserve Requirement for the 1994 Bonds and the Bond shall be fully
funded by a Reserve Account Instrument.
d. There will be on file on the date of the delivery of the Bond to the initial
purchaser thereof a certificate of an independent, licensed professional engineer or a
certified public accountant that the estimated Gross Revenue of the System, after
deducting Operating and Maintenance Expenses, will meet the Coverage Requirement.
The City Council has determined that all of the conditions of Section 18 of Ordinance
No. 4451 will have been met and complied with on the date of delivery ofthe Bond to the
Purchaser and that the Bond shall be issued on a parity of lien with the 1994 Bonds.
Section 3. Descri?tion of the Bond. For the purpose of repaying the interfund loan
incurred to pay part of the cost of carrying out the Improvements and paying the incidental costs
and the costs of issuance and sale of the Bond, the City authorizes the issuance and sale of its
"Water and Sewer Revenue Bond, 2005."
The Bond shall be issued as a single Bond in the principal amount of$406,587; shall be
dated the date of issue; shall mature on September 1,2015; and shall bear interest (computed on
the basis of a 30/360-day year) at the rate of 5.1 0% per annum; provided, that from and after the
date of (a) any failure by the City to pay any principal of or interest on the Bond or any fees or
other amounts due to the Purchaser hereunder, when due, or (b) receipt by the Owner of written
notice of any final determination, decision or decree, all applicable appeals periods with respect
to which shall have expired, made by the commissioner or any district director of the Internal
Revenue Service or by any court of competent jurisdiction to the effect that interest on the Bond
is includable in gross income of the Owner for federal income tax purposes, the Bond shall bear
interest at the rate of 7.10% per annum. Interest on the Bond shall be payable semi-annually on
each March 1 and September 1 to the maturity or earlier prepayment of the Bond, beginning on
September 1, 2006. Principal of the Bond shall be payable in annual installments on each
September 1, commencing on September 1, 2006, to the maturity or earlier prepayment of the
Bond, in accordance with the amortization schedule attached hereto as Exhibit A and
incorporated herein by this reference. TheBond shall be issued in fully registered form as to
both principal and interest; shall be numbered in such manner and with any additional
designation as the Bond Registrar deems necessary for purposes of identification.
Section 4. Place, Manner and Medium of Payment. Both principal of and interest on the
Bond shall be payable in lawful money of the United States of America. Interest on the Bond
and annual principal installments and any prepaid principal thereof shall be paid by check or
draft mailed on or before the applicable payment date to the Owner on the Bond Register on the
day such payment is made. Upon request of the City following receipt of the final principal
payment, the Owner shall surrender the Bond at the office of the Bond Registrar. The Bond shall
be payable solely out of the Bond Fund and shall not be a general obligation of the City.
Section 5. Prepayment. The Bond shall be subject to optional prepayment prior to
maturity, in whole or in part on any date, together with a prepayment fee, plus accrued interest to
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the date fixed for prepayment, upon three days notice to the Owner. The prepayment fee shall be
in an amount sufficient to compensate the Owner for any loss, cost or expense incurred by it as a
result of the prepayment, including any loss of anticipated profits and any loss or expense arising
from the liquidation or reemployment of funds obtained by it to maintain the funding of the Bond
or from fees payable to terminate the deposits from which such funds were obtained. The City
shall also pay any customary administrative fees charged by the Owner in connection with the
foregoing. For purposes of calculating the prepayment fee, the Owner shall be deemed to have
funded the Bond by a matching deposit or other borrowing in the applicable interbank market,
whether or not the Bond was in fact so funded.
Section 6. Form of Bond. The Bond shall be typewritten, printed, lithographed or
multicopied on good bond paper in a form consistent with this Ordinance and Washington law.
Section 7. Execution of Bond. The Bond shall be signed on behalf of the City with the
facsimile or manual signatures of the Mayor and the City Clerk, and shall have the seal of the
City impressed or a facsimile thereof imprinted thereon.
In case either or both of the officers who shall have executed the Bond shall cease to be
such officer or officers of the City before the Bond shall have been authenticated or delivered by
the Bond Registrar or issued by the City, the Bond nevertheless may be authenticated, delivered
and issued and upon such authentication, delivery and issuance, shall be as binding upon the City
as though those who signed the same had continued to be such officers ofthe City. The Bond
also may be signed and attested on behalf of the City by such persons as at the actual date of
execution of the Bond shall be the proper officers of the City although at the original date of the
Bond such persons were not such officers ofthe City.
Section 8. Registration. The Bond Registrar shall keep, or cause to be kept, the Bond
Register at the office of the Bond Registrar.
The City may deem and treat the Owner of the Bond as the absolute owner thereof for all
purposes, and the City shall not be affected by any notice to the contrary. Payment ofthe Bond
shall be made only as described in Section 4 hereof. All such payments made as provided in
Section 4 hereof shall be valid and shall satisfy and discharge the liability of the City upon the
Bond to the extent of the amount or amounts so paid.
The registered ownership of the Bond shall not be transferable, except for transfer to a
successor in interest to the Owner as a result of a merger or consolidation or sale of substantially
all assets of the Owner.
The City covenants that, until the Bond shall have been surrendered and cancelled, it will
maintain a system of recording the ownership of the Bond that complies with the provisions of
the Code.
Section 9. Mutilated. Lost. Stolen or Destroyed Bond. If the Bond becomes mutilated;
lost, stolen or destroyed, the City may issue and deliver a new Bond of the same number and
interest rate, for the same principal amount, and oflike tenor and effect in substitution therefor,
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all in accordance with law. If such mutilated, lost, stolen or destroyed Bond has matured, the
City, at its option, may pay the same without the surrender thereof. However, no such
substitution or payment shall be made unless and until the applicant shall furnish (a) evidence
satisfactory to the City of the destruction or loss of the original Bond and of the ownership
thereof, and (b) such additional security, indemnity or evidence as may be required by or on
behalf ofthe City. No substitute Bond shall be furnished unless the applicant shall reimburse the
City for its expenses in the furnishing thereof.
Section 10. Bond Fund. There has been created in the office ofthe City Treasurer a
special fund of the City known as the Water and Sewer Revenue Bond Fund, 1985 (herein
defined as the "Bond Fund"), which fund has been divided into two accounts, a Principal and
Interest Account and a Reserve Account. So long as the Bond is outstanding against the Bond
Fund, the City obligates and binds itself to set aside and pay into the Bond Fund, in addition to
the amounts required to be paid therein for the 1994 Bonds and any Future Parity Bonds, on or
before the 20th day of each month, out of the Net Revenue of the System certain fixed amounts
(including the assessments on UUD No. 2002-01) without regard to any fixed proportion,
namely:
a. Into the Principal and Interest Account, (a) beginning with the month of
October 2005, 1/11 ofthe interest payment due on the Bond on September 1,2006; (b) beginning
with the month of September 2006, and continuing thereafter until the Bond, both principal and
interest, is paid in full, 1/6 ofthe next semiannual interest payment due on the Bond, beginning
with the interest payment due on March 1, 2007, and continuing thereafter until the Bond, both
principal and interest are paid in full; (c) beginning with the month of October 2005, 1/11 of the
principal payment due with respect to the Bond on September 1, 2006; and (d) beginning with
the month of September 2006, and continuing thereafter until the principal of the Bond is paid in
full, 1/12 ofthe next annual principal payment due with respect to the Bond.
b. Into the Reserve Account an amount necessary to fund the Reserve
Requirement of the 1994 Bonds, the Bond and Future Parity Bonds within the time permitted by
this ordinance to fund the Reserve Requirement. The Reserve Requirement for the 1994 Bonds
and the Bond shall be fully funded by a Reserve Account Instrument.
The City covenants and agrees that it will at all times maintain in the Reserve Account an
amount equal to the Reserve Requirement, except for withdrawals therefrom as authorized
herein, until there is a sufficient amount in the Principal and Interest Account and Reserve
Account to pay the principal of and interest on all outstanding bonds payable from the Bond
Fund, at which time the money in the Reserve Account may be used to pay any such principal
and interest so long as the money remaining on deposit in the Reserve Account is no less than the
Reserve Requirement of the remaining outstanding bonds payable from the Bond Fund.
If there shall be a deficiency in the Bond Fund to meet maturing installments of either
principal of or interest on any ofthe 1994 Bonds, the Bond and/or Future Parity Bonds, such
deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom and
then by drawing from any Reserve Account Instrument. Any deficiency created in the Reserve
Account, including the value of any Reserve Account Instrument, by reason of any such
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withdrawal or resulting from any revaluation of investments in the Reserve Account will then be
made up from the Net Revenue of the System which shall be first available after making
necessary provisions for the required payments into the Principal and Interest Account and after
repayment of any Reserve Account Instrument. Any such deficiency shall be restored by the
close ofthe next succeeding fiscal year.
All money in the Bond Fund may be kept in cash or invested in Permitted Investments
maturing not later than the date when needed (for investments in the Principal and Interest
Account) or maturing not later than five years from the date of the investment or the last maturity
of any remaining outstanding bonds payable from the Bond Fund, whichever is the lesser (for
investments in the Reserve Account). In no event shall any money in the Bond Fund or any
other money reasonably expected to be used to pay principal and/or interest on the Bond be
invested at a yield which would cause the Bond to be arbitrage bonds within the meaning of
Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and applicable
regulations thereunder. Income from investments in the Principal and Interest Account shall be
deposited in that account. Income from investments in the Reserve Account shall be deposited in
that account until the amount therein is equal to the Reserve Requirements of all bonds payable
from the Bond Fund, and thereafter shall be deposited in the Principal and Interest Account.
In addition, the City reserves the right to substitute for all or for a portion of the Reserve
Account a Reserve Account Instrument which when combined with any money or investments in
the Reserve Account equals an amount not less than the Reserve Requirement for all then
outstanding 1994 Bonds, the Bond and Future Parity Bonds.
The City may create sinking fund accounts or other accounts in the Bond Fund for the
payment or securing the payment of bonds payable from the Bond Fund as long as the
maintenance of such accounts does not conflict with the rights of the owners of bonds payable
from the Bond Fund.
It is declared that in creating the Bond Fund and in fixing the amounts to be paid into it as
aforesaid, the City Council has had due regard for Operating and Maintenance Expenses (and the
cost of operation and maintenance as used in RCW 35.92.100) and the debt service requirements
of the 1994 Bonds and the Bond, and declares that the City Council is not setting aside into the
Bond Fund a greater amount than in its judgment will be available over and above such
Operating and Maintenance Expenses and debt service requirements.
If the City fails to set aside and pay into the Bond Fund the amounts set forth above, the
owner of any of the outstanding bonds payable out of the Bond Fund may bring action against
the City and compel the setting aside and payment.
Section II. Pledge of Revenue and Lien Position. The Gross Revenue of the System is
pledged for the payment of the 1994 Bonds, the Bond and any Future Parity Bonds which may
be issued hereafter. This pledge shall constitute a lien and charge upon such Gross Revenue of
the System prior and superior to any other liens and charges whatsoever, subject only to
Operating and Maintenance Expenses.
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Section 12. Deposit of Bond Proceeds. All of the net proceeds of the Bond (net ofthe
origination fee retained by the Purchaser) shall be deposited in the UUD No. 2002-01 Fund in
accordance with the direction ofthe City Director of Financial Services and used to repay the
interfund loan incurred to pay part of the costs of carrying out the Improvements.
Section 13. Covenants. The City covenants and agrees with the Owner ofthe Bond as
follows:
a. It will establish, maintain, revise as necessary and collect such
rates and charges for water and sewer service furnished which will produce Net
Revenue of the System available for debt service each calendar year at least equal
to the Coverage Requirement.
b. It will at all times maintain and keep the System in good repair,
working order and condition, and also will at all times operate such utility and the
business in connection therewith in an efficient manner and at a reasonable cost.
c. It will not sell, lease, mortgage, or in any manner encumber or
dispose of all of the property of the System unless provision is made for the
payment into the Bond Fund of an amount sufficient to pay the principal of and
interest on the 1994 Bonds, the Bond and any Future Parity Bonds then
outstanding and that it will not sell, lease, mortgage, or in any manner encumber
or dispose of any part of the property of the System that is used, useful and
material to the operation thereof, unless provision is made for replacement
thereof, or for payment into the Bond Fund of the total amount of Gross Revenue
of the System received which shall not be less than an amount which shall bear
the same ratio to the amount ofthe 1994 Bonds, the Bond and any Future Parity
Bonds then outstanding as the Gross Revenue of the System available for debt
service for such outstanding bonds for the twelve months preceding such sale,
lease, encumbrance or disposal from the portion of the utility sold, leased,
encumbered or disposed of bears to the Gross Revenue ofthe System available
for debt service for the outstanding 1994 Bonds, the Bond and Future Parity
Bonds from the entire System for the same period. Any such money so paid into
the Bond Fund shall be used to retire such 1994 Bond, the Bond and/or Future
Parity Bonds at the earliest possible date.
d. It will, while the Bond remains outstanding, keep proper and
separate accounts and records in which complete and separate entries shall be
made of all transactions relating to the System, and it will furnish the owner of the
Bond or any subsequent owner thereof, at the written request of such owner,
complete operating and income statements of the System in reasonable detail
covering any calendar year not more than ninety days after the close of such
calendar year and it will grant the owner of the Bond the right at all reasonable
times to inspect the entire System and all records, accounts and data ofthe City
relating thereto. Upon request of any owner of the Bond, it also will furnish to
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I
such owner a copy ofthe most recently completed audit ofthe City's accounts by
the State Auditor of Washington.
e. It will not furnish any service of the System to any customer
whatsoever free of charge.
f. It will at all times carry fire and such other forms of insurance on
such of the buildings, equipment, facilities and properties of the City as under
good practice are ordinarily carried on such buildings, equipment, facilities, and
properties by utilities engaged in the operation of water and sewerage systems to
the full insurable value thereof, and also will carry adequate public liability
insurance (and war risk insurance if available at reasonable rates) at all times. The
premiums on such insurance policies are declared to be a normal part of
Operating and Maintenance Expenses.
g. It will pay all Operating and Maintenance Expenses and otherwise
meet the obligations of the City as herein set forth.
h. It will not change any rate or charge for System services as now
established by the existing rate ordinance or ordinances of the City that will
substantially reduce the annual Gross Revenue of the System below that which
would have been obtained before such change unless the City shall have on file a
certificate from a licensed professional engineer experienced in the design,
construction and operation of municipal utilities, stating the rates and charges as
so changed will provide Gross Revenue of the System sufficient to comply with
all the covenants and requirements of this ordinance, including the Coverage
Requirement.
Section 14. Tax Exemption Covenants. The City covenants that it will not take or permit
to be taken on its behalf any action that would adversely affect the exclusion of the interest on
the Bond from gross income for purposes of federal income taxation, and will take or require to
be taken such acts as may be permitted by Washington law and as may from time to time be
required under applicable law to continue the exclusion of the interest on the Bond from gross
income for purposes of federal income taxation. Without limiting the generality of the
foregoing, the City will not invest or make or permit any use of the proceeds of the Bond or of its
other money at any time during the term of the Bond which would cause the Bond to be an
"arbitrage bond" within the meaning of Section 148 of the Code.
The City covenants that, ifthe City issues more than $5,000,000 in tax-exempt bonds in
the calendar year 2005 and all the proceeds of the Bond have not been spent within six months
from the date of issuance of the Bond, it will calculate or cause to be calculated, and shall rebate
to the United States, all earnings from the investment of Bond proceeds that are in excess of the
amount that would have been earned had the yield on such investments been equal to the yield
on the Bond, plus income derived from such excess earnings, to the extent and in the manner
required by Section 148 of the Code.
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The City has not been notified of any listing or proposed listing by the Internal Revenue
Service to the effect that the City is a bond issuer the arbitrage certifications of which may not be
relied upon.
The City will take no actions and will make no use of the proceeds of the Bond or any
other funds held under this Ordinance which would cause the Bond to be treated as a "private
activity bond" (as defined in Section 141(b) ofthe Code) subject to treatment under said
Section 141(b) as an obligation not described in Section 1 03 (a) ofthe Code, unless the tax
exemption thereof is not affected.
The City hereby designates the Bond as a "qualified tax-exempt obligation" for purposes
of Section 265 of the Code (relating to the deduction by financial institutions of the interest
incurred to carry tax-exempt debt) and authorizes and directs the proper City officials to execute
and deliver all documents necessary to evidence such designation to any and all interested
parties. The City further covenants not to issue more than $10,000,000 of such "qualified tax-
exempt obligations" during 2005.
Section 15. Parity Provisions. The City further covenants with the owner of the Bond for
as long as any of the same is outstanding that it will not create any special account or fund or
accounts or funds for the payment of the principal of and interest on any other revenue
obligations which will have any priority over or which will rank on a parity with the payments
required by this ordinance to be made out of the Net Revenue of the System, nor will it issue
Future Parity Bonds, except that it reserves the right for
First, the purpose of acquiring, constructing and installing additions,
betterments and improvements to and extensions of, acquiring necessary
equipment for, or making necessary replacements of or repairs or capital
improvements to the System pursuant to a plan or plans of additions and
betterments thereto hereafter adopted, or
Second, the purpose of refunding by exchange or purchasing and retiring
or advance refunding by call and payment at or prior to their maturity any part or
all of the outstanding 1994 Bonds, the Bond or Future Parity Bonds, or
Third, other purposes then permitted by law, to issue additional and/or refunding revenue
bonds therefor, and to make payments into the Bond Fund from the Net Revenue of the System
sufficient to pay the principal of and interest on such Future Parity Bonds and to maintain a
reserve therefor as hereinafter required, which payments may rank equally with the payments out
of the Net Revenue of the System required to be made into the Bond Fund by this ordinance, if
the conditions and requirements set forth below are met and complied with at the time of the
issuance of such Future Parity Bonds and further that the Reserve Requirement for those Future
Parity Bonds is fully funded at the time of issuance of those Future Parity Bonds. If the City is
in default on the payment of any amounts due under this ordinance, Ordinance No. 4451, and the
ordinances issuing any Future Parity Bonds then outstanding, no further Future Parity Bonds
may be issued so long as such default continues.
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a. At the time of issuance of such Future Parity Bonds, there shall
not be a deficiency in either the Principal and Interest Account or the Reserve
Account in the Bond Fund;
b. The ordinance authorizing the issuance of such Future Parity
Bonds shall provide for the creation of a sinking fund account in the Bond Fund
for any Term Bonds to be issued and for regular payments to be made into such
account for the payment of the principal of such Term Bonds on or before their
maturity, or, as an alternative, the mandatory redemption of such Term Bonds
prior to their maturity date from money in the Principal and Interest Account.
c. The ordinance authorizing any Future Parity Bonds shall provide
for the payment of the principal of and interest thereon out of the Bond Fund and
shall further provide for the payment from the Net Revenue ofthe System in
substantially equal monthly payments an amount which within a period of five
years from the date of issuance of such Future Parity Bonds will fund fully the
Reserve Requirement of such Future Parity Bonds subject to the City's right to
fund all or a portion of the Reserve Requirement with a Reserve Fund Instrument
or in whole or in part out of the proceeds of such Future Parity Bonds; except
that in the event such Future Parity Bonds are issued for the purpose of refunding
the Bond and/or Future Parity Bonds, the amount of such reserve allocated to
such bonds being so refunded shall be retained or used as a reserve for such
refunding Future Parity Bonds or used to retire the Bond or outstanding Future
Parity Bonds pursuant to the refunding plan, which reserve amount shall be
replaced in the same manner and within the same time as required for additional
Future Parity Bonds, or such reserve may remain in the Reserve Account to be
used as the reserve for remaining bonds payable from the Bond Fund; and
d. At the time of the issuance of such Future Parity Bonds, the City
shall have on file a certificate from an independent, licensed professional
engineer experienced in the design, construction and operation of municipal
utilities, or a certified public accountant, showing that in his or her professional
opinion the estimated Gross Revenue ofthe System in any future year, after
deducting Operating and Maintenance Expenses, will be equal to the Coverage
Requirement. However, if Future Parity Bonds proposed to be so issued are for
the sole purpose of refunding outstanding bonds payable from the Bond Fund,
such certification of coverage shall not be required if the Annual Debt Service in
each year for the refunding bonds is not increased over the amount required for
the bonds to be refunded thereby and the maturities of those refunding bonds are
not extended beyond the maturities ofthe bonds to be refunded thereby.
The engineer's certificate, in estimating the Gross Revenue of the System
available for debt service, shall use the historical Gross Revenue ofthe System
for any twelve consecutive months out ofthe twenty-four months immediately
preceding the month of delivery ofthe Future Parity Bonds. Such Gross
Revenue may be adjusted to reflect any changes in rates in effect and being
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charged or expressly committed by ordinance of the City Council to be made in
the future; may include income derived from customers of the System that have
become customers during the twelve consecutive month period or thereafter
adjusted to reflect one year's net revenue from such customers; may include
revenues from any customers to be connected to the System who have paid the
required connection charges; may include the revenue to be derived from any
person, firm, corporation or municipal corporation under any executed contract
for water and/or sewer service which revenue was not included in the historical
. Gross Revenue of the System; and may include the engineer's estimate of the
Gross Revenue to be derived by the City from customers with improved property
available to connect to any additions to and improvements and extensions of the
System to be paid for out of the proceeds of the sale of the additional Future
Parity Bonds or other additions to and improvements and extensions of the
System then under construction and not fully connected to the facilities of the
System when such additions, improvements and extensions are completed.
Actual or reasonably anticipated changes in the Operating and
Maintenance Expenses subsequent to such twelve-month period shall be added
or deducted, as is applicable.
Nothing contained in the provisions for Future Parity Bonds shall prevent the City from
issuing revenue bonds having a subordinate lien on the Gross Revenue of the System.
Section 16. Flow of Funds. The Gross Revenue ofthe System, except for earnings on
investments in the Bond Fund or other bond redemption funds, refunded bonds, refunding
escrow account or other trust account, and earnings subject to arbitrage rebate (in order to
maintain the exemption of the interest on obligations ofthe System from federal income
taxation), shall be deposited as received in the Current Water Fund and shall be used, paid out
and distributed in the following order or priority:
a. To pay the Operating and Maintenance Expenses;
b. To make the required payments into the Principal and Interest
Account for all bonds payable out of the Bond Fund;
c. To make the required payments into the Reserve Account for all
bonds payable out of the Bond Fund and to make all payments required to be
made pursuant to a reimbursement agreement in connection with a Reserve
Account Instrument or for repayment of Reserve Instrument or Bond Policy
Costs, except that if there is not sufficient money to make all payments under
reimbursement agreements, the payments will be made on a pro rata basis;
d. To make all required payments into any revenue bond redemption
fund created to pay and secure the payment of the principal of and interest on any
revenue bonds or short-term obligations ofthe City having a lien and charge upon
the Gross Revenue of the System subordinate and inferior to the lien thereon for
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the payment of the principal of and interest on the 1994 Bonds, the Bond, and
Future Parity Bonds; and
e. To redeem and retire any water and sewer revenue bonds of the
City then outstanding or to purchase any or all of those bonds in the open market
at a price not in excess of the price at which those bonds could be redeemed at the
next call date; to make necessary additions, betterments, repairs, extensions and
replacements of the System or other purposes proper to its maintenance and
operation, including the payment of any City-imposed utility taxes or payments in
lieu of taxes payable from Gross Revenue of the System, or for any other lawful
City purpose.
The City may transfer from any funds or accounts of the City legally available therefor,
except bond redemption funds, any money therein to meet the required payments to be made into
the Bond Fund.
Section 17. Defeasance. If money and/or "Government Obligations" (as such
obligations are defined in Chapter 39.53 RCW, as now in existence or hereafter amended)
maturing at such times(s) and bearing such interest to be earned thereon (without any
reinvestment thereof) as will provide a series of payments which shall be sufficient, together
with any money initially deposited, to provide for the payment of the principal of and interest on
all or a portion of the Bond, when due in accordance with its terms and in accordance with a
refunding plan adopted by the City, are set aside in a special fund (hereinafter called the "trust
account") to effect such payment and are pledged irrevocably for the purpose of effecting such
payment, then no further payments need be made into the Bond Fund for the payment of the
principal of and the interest on the Bond, the Owner thereof shall cease to be entitled to any lien,
benefit or security of this Ordinance and in the Gross Revenue of the System, funds and accounts
obligated to the payment of such defeased Bond except for the right to receive the money and the
principal and interest proceeds on the obligations set aside in the trust account, and the Bond
shall no longer be deemed to be outstanding hereunder.
Section 18. Sale of the Bond. The Purchaser has presented the Proposal to the City
pursuant to which the Purchaser has proposed to purchase the Bond, under the terms and
conditions provided in the Proposal, subject to credit approval, which has since been obtained,
which written Proposal is on file with the City Clerk and is incorporated herein by this reference.
The City Council finds that selling the Bond according to the terms of the Proposal is in the
City's best interest and therefore authorizes acceptance of an offer of the Purchaser to purchase
the Bond in accordance with the terms contained in the Proposal and authorizes the execution by
City officials of any written offer to purchase in accordance with the terms of the Proposal.
Upon purchase of the Bond, the City shall pay to the Purchaser an origination fee equal to
$1,500, and shall payor reimburse the Purchaser for the payment of its legal expenses with
respect to the purchase ofthe Bond, not to exceed $500.
The Bond will be printed or multi copied at City expense and will be delivered to the
Purchaser in accordance with the terms of the Proposal with the approving legal opinion of
Gottlieb, Fisher & Andrews, PLLC, bond counsel of Seattle, Washington, relative to the issuance
-17-
of the Bond, printed on or attached to the Bond. Bond counsel has not been engaged to
participate in the preparation or review of, or express any opinion concerning the completeness
or accuracy of any official statement or other disclosure documentation used in connection with
the offer or sale of the Bond by any person, and bond counsel's opinion shall so state. Bond
counsel has not been retained to monitor, and shall not be responsible for monitoring, the City's
compliance with any federal law or regulations to maintain the tax -exempt status of the interest
on the Bond.
Section 19. Delivery of Bond; Temporary Bond. The proper City officials, including,
but not limited to, the Director of Financial Services, are authorized and directed to execute
and/or approve, as appropriate, all documents, and to do everything necessary for the preparation
and delivery of a transcript of proceedings pertaining to the Bond, and the printing, execution
and prompt delivery of the Bond to the Purchaser and for the proper application and use of the
proceeds of the sale thereof.
If the definitive Bond is not ready for delivery by the date established for closing (the
"Closing"), the City Director of Financial Services, upon the approval of the Purchaser, may
cause to be issued and delivered to the Purchaser a temporary Bond with appropriate omissions,
changes and additions. Any temporary Bond shall be entitled and subject to the same benefits
and provisions of this ordinance with respect to the payment, security and obligation thereof as
the definitive Bond authorized hereby. Such temporary Bond shall be exchangeable without cost
to the Owner thereof for the definitive Bond when the latter is ready for delivery.
Section 20. Rights of 1994 Bond Insurer and Reserve Insurer. Ordinance No. 4451 of
the City granted certain rights to and made certain covenants with the 1994 Bond Insurer and the
Reserve Insurer in consideration for the issuance of the 1994 Bond Insurance Policy and the
Reserve Account Instrument. Many of these rights and covenants affect owners of any Future
Parity Bonds, issued after the 1994 Bonds, including the Bond, for as long as the 1994 Bonds are
outstanding and reference is hereby made to Ordinance No. 4451 for the full text of these rights
and covenants.
Section 21. Interest Rate on Installments and Delinquent Payments. The interest rate on
the installments and delinquent payments of special assessments in ULID No. 2002-01 is
established at the rate of 5.60% per annum, which rate does not exceed the net effective interest
on the Bond plus one-half of one percent.
Section 22. Financial Reports. The City agrees to provide the Owner (a) a copy ofthe
City's annual State Audit Report as soon as such report is available, together with unaudited
annual financial statements within 180 days of the completion of each fiscal year; and (b) a copy
of the City's annual budget within ninety days ofthe budget cycle.
Section 23. Contract; Severability. The covenants contained in this Ordinance shall
constitute a contract between the City and the Owner of the Bond. The City unconditionally
covenants that it will keep and perform all of the covenants of the Bond and this Ordinance. If
anyone or more of the provisions of this Ordinance shall be declared unconstitutional or invalid
for any reason, such decision shall not affect the validity of the remaining provisions of this
-18-
Ordinance or the Bond, and this Ordinance and the Bond shall be construed and enforced as if
such unconstitutional or invalid provision had not been contained herein.
Section 24. Effective Date. This ordinance shall take effect and be in full force ten days
after passage and publication of an approved summary, consisting of the title.
APPROVED by the City Council of the City of Bremerton, Washington, the ~day
of August, 2005.
PASSED by the City Council of the City of Bremerton, Washington, this /1:J;l;dayof
August, 2005.
-p~~
Daren Nygren, Council P slClent
APPROVED thi~ day of August,
APPROVED AS (3 FORM:
By CiV)~-
Daniel S. Gottlieb, Bond Counsel
PUBLISHED: Ci-uf<" d .J..O, tP.ooS-
EFFECTIVE DATE: ~ ..3(). AOOS
ORDINANCE NO. if9W
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AMORTIZATION SCHEDULE
Borrower: City of Bremerton Lender: Bank of America, N.A.
CCS-Commerclal Banking (Non-REI
I WA 1-601-13-30
BOO FIfth A venue
Seattle, WA 98104-3122
Disbursement Date: August 31, 2006 Repayment Schedule:. Principal + Interest
Intereat Rate: 6 . 1 00 Calculetlon Method: 30 /360 U.S. Rule
Payment . Payment Payment Interest Principal Ramalnlng
. Number Oete Amount Paid Peld Balence
1 09-01.2006 20,793.64 20,793.54 0.00 406,687.00
2 09-01-2006 40,658.70 ..0.00 40,658.70 385.928.30
2006 TOTALS: 61.462.24 20,793.54 40,658.70 ..
3 03.01-2007 9,331.17 9,331.17 0.00 365,928.30
4 09.01-2007 9.331.17 9,331.17 0.00 365.928.30
6 09.01 -2007 40.668.70 0.00 40,668.70 325.269.60
2007 TOTALS: 69.321.04 18.662.34 40.668.70
6 03-01 -2008 8,294.37 8,294.37 0.00 326.269.60
7 09.01-2008 8,294.37 8,294.37 0.00 326,269.60
8 09-01-2008 40.658.70 0.00 40,668.70 284;610.90
2008 TOTALS: 67.247.44 16,588.74 40,668.70
9 03-01-2009 7,257.58 7.257.58 0.00 284.610.90
10 09,01-2009 7,257.58 7;257.58 0.00 284,610.90
11 09-01-2009 40;658.70 0.00 40,658.70 243,962.20
2009 TOTALS: 56,173.86 14.615.16 40,668.70
12. 03-01-2010 6,220.78 6,220.78 0.00 243.952.20
13 09-01-2010 6,220.78 6,220.78 0.00 243.952.20
14 09-01-20.10 40,658.70 0.00 40,658.70 203.293:50
2010 TOTALS: 63.100.26 12,441.66 40.668.70
15 03..01-20'1 5,183.91f 6,183.98 0,00 203,293.50
16 09-01.2011 5.183.98 5.183.98. 0.00 203.293,50
17 09-01-2011 40..668.70 0.00 40.668.70 162.634.80
2011 TOTALS: 51.026.66 10.367.96 40.668.70
18 . 03-01-2012 4,147.19 4.147.19 0.00 162.634.80
19 09-01-2012 4.147.19 4.147.19 0,00 162.634.80
20 09-01-2012 40,658.70 0.00 40.658.70 121.976.10
2012 TOTALS: 48.953.08 8.294.38 40;66B.70
.21 03-01-2013. 3.110.39 3, ,., 0.39 0.00 121.976.10
22 09.01,2013 3.110.39 3.1.1 0.39 0;00. 121.976.10
23 09.01-2013 40,658.70 0.00 4O.65B.70 81.317.40
2013 TOTALS: 46.879.48' . 6.220.78 . 40.668.70
24 03-01-2014 2,073.59 2,073.59 0.00 81.317.40
26 09-01-2014 2.073.59 2.073.69 , O.OQ. 81.317.40
26 09-01-2014 40.66B.70 0.00 40.658.70 40.658.70
2014 TOTALS: 44.806.88 4.147.18 40.658.70
27 03-01.2016 1,036.80 1,036.80 0.00. 40,65B.70 '
28 09.01.2016 41.695.50 1,036.80 40,658.7.0 0.00
TOTALS: 520.692.~4 114,105.24 406.687.00
NOTICE: This is an estimated loan amortizatfon schedule. Actual amounts may vary jf payments are made . on different dates or in different
amounts.
L~Il!" PlIO lMIding, \/.. IUI.20.103 Copr. "_lwod '......iIII SoluliD....lnc. lln, 100!. AUlUclhq i\4a.rwd. . WA "'.NWCLaC03
Attachment A
Ordinance No. 4944
"
AFFIDAVIT OF PUBLICATION
Account #42742 / Ad # 100166942
STATE OF WASHINGTON
COUNTY OF KITSAP
I, Robin Alexander, being first duly sworn on oath, deposes and says: That she is now, and at all times
embraced in the publication herein mentioned was the principal clerk of the printers and publishers of
KITSAP SUN; that said newspaper has been approved as a legal newspaper by order of the Superior Court
of the County of Kitsap, in which County it is published and is now and has been for more than six months
prior to the date of the publication hereinafter referred to, published in the English language continually as
a daily newspaper in Bremerton, Kitsap County, Washington, a weekly newspaper in Kitsap County,
Washington and is now and during all of said time, was printed in an office maintained in the aforesaid
place of publication of said newspaper; that the following is a true text of a legal advertisement as it was
published in regular issues (and not in supplement form) of said newspaper on the following dates, to wit: ,
August 20, 2005 and that such newspaper was regularly distributed to its subscribers during all of said
period. That the full amount of the fee charged for the foregoing publication is the sum of $46.90 which
amount has not been paid in full.
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2 ~: ~OT41y '. ~~
~ :" MAY 4 J- yz. ~ (Signature of Principal Clerk)
::~. ,2008 . _
_-t. ,,0 . -
Subscril5edP.Afip s~t6bet~1iPe this day of August 30, 2005.
~ <<,'. ....<-:: " t]
'/",O;"~;A"S'\~\~~"" '--:U ' ~ '.
/11111~~II\\l~;\\\\\ ~m . . ' 1..rl~ tJlktJfLt1
Notary Public in and for the State of Washington, Kitsap County. -rt-=fl
ORDINANCE NO. 4944'
AN ORDINANCE of the City of Bremerton, Washington, relating to the waterworks utility of the City,
including the sewerage system as a part thereof; providing for the issuance of a Water and Sewer Revenue
Bond, 2005 of the City in the principal amount of $406,587 to pay part of the costs of constructing
improvements to the City's water system, including improvements related to Utility Local Improvement
District No. 2002-01; fixing the date, form, terms, interest rate, maturity and covenants of such bond;
providing for the sale and delivery of such, bond to Bank of America, N.A. and establishing the interestrate--
on installments and delinquent payments of special assessments in said district.-
PASSED by the City Council the 17th day of August, 2005.-
The full text of this ordinance is available from the City Clerk's Office, 345 6th Street, Suite 600,
Bremerton, W A 98337.-
August 20, 2005"#10016694T