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ORDINANCE NO. 5087
AN ORDINANCE of the City of Bremerton, Washington, providing for the
issuance and sale of a limited tax general obligation refunding bond of the
City in the aggregate principal amount of $5,373,000 to refund certain
outstanding limited tax general obligation bonds ofthe City.
WHEREAS, the City of Bremerton, Washington (the "City") now has outstanding
$2,890,000 principal amount of its Limited Tax General Obligation Refunding Bonds, 1999,
issued under date of August 15, 1999 (the "1999 Bonds"), and $2,185,000 principal amount of
its Limited Tax General Obligation Bonds, 2001 issued under date of March 1, 2001 (the "2001
Bonds"), and
WHEREAS, after due consideration it appears to the City Council that the 1999 Bonds
and 2001 Bonds may be refunded by the issuance and sale of a limited tax general obligation
refunding bond (the "Bond"), which refunding will give the City greater flexibility in managing
the City's Gold Mountain Golf Complex; and
WHEREAS, the Council has determined that it is in the best interest of the City to have
the City purchase the Bond as an investment;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1.
Definitions. As used in this ordinance, unless a different meaning clearly
appears from the context:
"Bond" means the "City of Bremerton, Washington, Limited Tax General Obligation
Refunding Bond, 2009" in the principal amount of$5,373,000 authorized by this ordinance.
"City" means the City of Bremerton, Washington, a municipal corporation duly
organized and exiting under and by virtue of the Constitution and laws of the State of
Washington.
50996631.4
"1999 Bonds" means the Limited Tax. General Obligation Refunding Bonds, 1999 of the
City, issued under date of August 15, 1999, pursuant to Ordinance No. 4662, passed by the
Council on July 28, 1999.
"Refunded Bonds" means the City's outstanding 1999 Bonds and 2001 Bonds.
"2001 Bonds" means the Limited Tax General Obligation Bonds, 2001 of the City, issued
under date of March 1, 2002, pursuant to Ordinance No. 4756, passed by the Council on
February 21,2001.
Section 2.
Authorization of the Bond. The Council hereby authorizes the issuance
and sale of a limited tax general obligation refunding bond of the City in the total principal
amount of $5,373,000. The Bond shall be designated as the "City of Bremerton, Washington,
Limited Tax General Obligation Refunding Bond, 2009," shall be dated as of the date of its
initial issuance, shall be in fully registered form, and shall bear interest on unpaid principal from
its date at a per annum rate of 3% from the date of issuance through December 31, 2011,
increasing to 3.5% beginning January 1,2012 through December 31,2013, increasing to 4.0%
from January 1, 2014 through December 31,2015, and increasing to 4.5% from January 1,2016
through December 31, 2028, payable no less than annually by each December 31 st. The principal
of the Bond shall be payable on each December 31 st, beginning December 31, 2010, in the
amounts set forth on Exhibit A.
Section 3.
Registration, Payment and Transfer. The City's Director of Financial
Services shall act "as paying agent and registrar for the Bond (collectively, the "Bond
Registrar"). Upon final payment of all installments and interest thereon, the Bond shall be
cancelled.
Section 4.
Prepayment. The Bond may be prepaid in whole or in part at any time.
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Section 5.
Security. The Bond is a general obligation of the City. The City hereby
irrevocably covenants that it will include in its budget and levy an ad valorem tax, within and as
a part of the tax millage levy permitted to cities without a vote of the people, upon all the
property within the City subject to taxation in an amount which will be sufficient, with other
money legally available therefor, to pay the principal of and interest on the Bond as the same
,
shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged
for the annual levy and collection of such taxes and the prompt payment of such principal and
interest. The pledge of tax levies may be discharged prior to maturity of the Bond by making
full provision for the payment thereof.
Section 6.
Application of Bond Proceeds. Proceeds received from the Bond shall be
used immediately upon receipt thereof to defeasethe Refunded Bonds and pay costs of issuance
and refunding. The City shall defease the Refunded Bonds and discharge such obligations by the
use of Bond proceeds that will provide for the payment of:
(i) interest on the 1999 Bonds on December 1, 2009; and
(ii) the redemption price (100% of the principal amount thereof) of the 1999
Bonds on December 1, 2009, and
(iii) interest and principal on the 2001 Bonds on each June 1 and December 1
through December 1, 2011; and
(iv) the redemption price (100% of the principal amount thereof) of the 2001
Bonds on December 1, 2011.
The City hereby irrevocably calls the Refunded Bonds that are 1999 Bond~ for '
redemption on December 1, 2009, and the Refunded Bonds that are 2001 Bonds for redemption
on December 1, 2011. The defeasance and calls for redemption of the Refunded Bonds shall be
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irrevocable after the receipt of the Bond proceeds. The Director of Financial Services is
authorized and requested to enter into an escrow agreement with a bank trust department and to
cause the proceeds of the Bond to be deposited into the escrow account and used to refund the
Refunded Bonds.
Section 7.
Form and Execution of the Bond. The Bond shall be in substantially the
following form:
UNITED STATES OF AMERICA
NO. R-l
$5,373,000
STATE OF WASHINGTON
CITY OF BREMERTON
LIMITED TAX GENERAL OBLIGATION REFUNDING BOND, 2009
REGISTERED OWNER:
CITY OF BREMERTON
MATURITY DATE:
DECEMBER 31, 2028
PRINCIP AL AMOUNT:
FIVE MILLION THREE HUNDRED SEVENTY -THREE
THOUSAND AND NO/lOO DOLLARS
The City of Bremerton, Washington (the "City"), a municipal corporation organized and
existing under the laws of the State of Washington, hereby acknowledges itself to owe and for
value received promises to pay, but solely from the Bond Account hereinafter identified, to the
Registered Owner identified above on the Maturity Date, the Principal Amount shown above.
Amounts received under this Bond shall bear interest at the rates identified on an exhibit attached
hereto, as set forth in Ordinance No. 5087 of the City, passed on July 1"5, 2009 (the "Bond
Ordinance"). Interest on this Bond shall accrue from the date money is received, until paid and
shall be computed on the basis of a 360-day year of twelve 30-day months. Interest shall be
payable no less than annually by each December 31 st. Upon payment of this Bond in full, this
Bond shall be cancelled.
The City may prepay this Bond in whole or in part at any time
This Bond is issued pursuant to the Bond Ordinance for the purpose of refunding certain
outstanding limited tax general obligations of the City. .
The City has irrevocably covenanted that it will deposit taxes levied, bond proceeds or
refunding proceeds, in amounts which, together with other money of the City legally available
therefor, will be sufficient to pay the principal of and interest on this Bond as the same shall
become due.
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It is hereby certified and declared that this Bond is issued pursuant to and in strict
compliance with the Constitution and laws of the State of Washington and ordinances of the City
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 performed.
IN WITNESS WHEREOF, the City of Bremerton, Washington, has caused this Bond to
be executed by the manual or facsimile signature of the Mayor and attested by the manual or
facsimile signature of the Clerk, and the seal of the City to be imprinted or impressed hereon as
. of the 11th day of September, 2009.
CITY OF BREMERTON, WASHINGTON
By
Isl
Mayor
ATTEST:
Isl
City Clerk
REGISTRATION CERTIFICATE
This Bond is registered in the name of the Registered Owner on the books of the City, in
the office of the Director of Financial Services (the "Bond Registrar"), as to both principal and
interest, as noted in the registration blank below.
Date of
Registration
Name and Address of
Registered Owner
Signature of Registrar
September 11, 2009
City of Bremerton
Director of Financial Services
Section 8.
Execution. The Bond shall be executed on behalf of the City with the
manual or facsimile signature of its Mayor, shall be attested by the facsimile or manual signature
of the City Clerk and shall have the seal of the City impressed or imprinted thereon.
Section 9.
Purchase of the Bond. The City's investment funds shall purchase the
Bond.
Section 10. Ratification; General Authorization. The Mayor, Director of Financial
Services and other appropriate officers of the City are authorized to take any actions and to
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execute documents as in their judgment may be necessary or desirable in order to carry out the
terms of, and complete the transactions contemplated by, this ordinance. All acts taken pursuant
to the authority of this ordinance but prior to its effective date are hereby ratified.
Section 11. Effective Date. This ordinance shall become effective ten days after its
passage and publication as required by law.
PASSED by the City Council of the City of Bremerton this 15th day of July, 2009.
CITY OF BREMERTON, WASHINGTON
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Mayor
ATTEST:
APPROVED AS TO FORM:
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5099663 \.4
EXHIBIT A
Maturity Date
(December 31) Principal Amount Interest Rate
2010 $ 105,000 3.00%
2011 105,000 3.00
2012 105,000 3.50
2013 105,000 3.50
2014 200,000 4.00
2015 220,000 4.00
2016 245,000 4.50
2017 270,000 4.50
2018 290,000 4.50
2019 303,000 4.50
2020 317,000 4.50
2021 331,000 4.50
2022 346,000 4.50
2023 362,000 4.50
2024 378,000 4.50
2025 395,000 4.50
2026 413,000 4.50
2027 432,000 4.50
2028 451,000 4.50
AFFIDA VIT OF PUBLICATION
Account # 42742 AD# 250320
STATE OF WASHINGTON
COUNTY OF KITSAP
I, Laura Wessels, 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 date, to wit:
July 20, 2009 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 pU~licaf is the sum of$41.56. This amount has
not been paid in full.
l))Jv,J~/
(Signature of Principal Clerk)
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Subscribed and sworn to before me this day of August 3,2009.
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Notary Public in and for the State of Washington, Kitsap County. .' .'
ORDINANCE NO. 5087
AN ORDINANCE ofthe City Council of the City of Bremerton, Washington, providing for the issuance
and sale of a limited tax general obligation refunding bond of the City iri the aggregate principal amount of
$5,373,000 to refund certain outstanding limited tax general obligation bonds of the City.
PASSED by the City Council the 15th day of July, 2009
The full text of this ordinance is available from the City Clerk's Office, 345 Sixth Street, Suite 600,
Bremerton, WA 98337.
July 20, 2009..............................AD #20089296