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Home My WebLink About12/02/2015 AGENDA w :• •� • CITY COUNCIL 345 6� Street, Suite 600, B�emerton, WA 98337 ❑ Phone (360)473-5280 ***AMENDED*** DECEMBER 2, 2015 CITY COUNCIL MEETING AGENDA 1. BRIEFING: 5:00—5:30 P.M. in COUNCIL CONFERENCE ROOM 603 A. General Council Business 2. CALL TO ORDER: 5:30 P.M. in FIRST FLOOR CHAMBERS A. Pledge of Allegiance B. Invocation 3. MAYOR'S REPORT 4. PUBLIC RECOGNITION. � 5. CONSENT AGENDA A. Claims & Check Register B. Minutes of Meeting — November 18, 2015 C. Minutes of Special Meeting — November 23, 2015 D. Ordinance No. 5291 providing for the issuance and sale of not to exceed $4,500,000 principal amount of Unlimited Tax General Obligation bonds; and delegating authority to the Mayor or Director of Financial Services to approve final terms of the bonds 6. PUBLIC HEARING A. Public Hearing on Ordinance No. 5292 adopting the City of Bremerton FY-2016 Budget 7. GENERAL BUSINESS— There are no General Business Items tonight... 8. EXECUTIVE SESSION 10-Minutes to discuss "Potential Litigation" under RCW 42.30.110(1)(i)Action is anticipated... 9. COUNCIL MEMBER REPORTS 10. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING � Americans with Disabilities Act(ADA)accommodations provided upon request. Those requiring special accommodations p/ease contact the City Clerk at(360) 473-5323 at least 24 hours prior to the Meeting. BREMERTON CITY COUNCIL MEETING SPEAKERS LIST "Now that the Election Season is here,please be aware that per the Bremerton Citv Council Rules �c Procedures, discussion of ballot issues is prohibited after the issue has qualified for the ballot; and all announcements or advertising concerning candidates is also prohibited..." PLEASE PRINT YOUR NAME BELOW IF YOU WISIT YOUR COMMENTS TO BE INCLUDED IN THE RECORD � C � � ��QLLA2 , � � -e C�.�1 : ( 1 i �� Ua� a �� REQUESTS FOR INFORMATION MUST BE SUBMITTED IN WRITING TO THE CLERK THANK YOU � - 4� �� i l.\':: �L (�/ . �, � � .i . . �F' � � �. v.. !� . t . ';V , "'k;i� ,�- .;� .•� -�-•, �. i �; ��. f i� �� ',�� `�� r�i. ' `��, - �'�-. - - I'r ''-� --__ "� � ' E' '�,�. ''��. . ".4. , _ ;+1I •� _ � � - `?�;L, ��-�. . c" , —t-_= — • , � '. _._ _ ' � } - I ( ' i� � ��u' _ ..a - .�yJ _ .� _ _ - - - - _. . . _ --_,c� - r .j.� ' - --. - -- . _ ,..--.+.�--•. - '_ :."� Y.�r.�.�yi=� i�: It`S"' ' _ x. _ �;Y'f:r.�- �'�. ,z,:_.., a�: 'e Filipino-American Comrnunity Center November 21 , 2015 � :,U,�� '�"� _ u n. � �_;�� . � -;� � �� . _ti� , , � � � � _� �,�t �� ,, .. � � `'_. �=- '/' { _ � _ �,,�:i . _ L � y - . ',, �, - — . � , — _,� . -`,�� _ — �T" :.� �� ._,:��. "� . . , '� � ��`'--4i.:1 . _ , _. ',f _'_, _ ' �} J ' ' . . ; � ;'t�'� _. �I1 , j�1' .f ,'! _._ �,J� �-� � ,, � � �+� C. � —__' . I " __ I _ . . . .___� . � _� _ . ..��. 5 .� � � �. � � , t — . , �,� .. ,.�..r, _ � __. .:� ��'`� :t� � +�• �' .�, -- - - ,�� , , ,.. _ ,� ; ' � �� ' ---. .. . . __ ' -.-..'� . ` _-^.^"_- ' '�I . . .. 5 - " ,.I`/ /-- . , . , . . � ;t __ _.__.--�_ -�.��. , _ . � ' �-'�'__._'. . �-; , r, .:n , b:�� * ' L� _ . - ,� �O�`1 , . . ... ..�, • . .� - ' . ._ _. -_ ,. ° _. .. y i , 'rs_-- - � � �� i:�t _ � i1��14��1h1i3 � � ! . '�--- - — . a K�"3 �� . �� ' �� . �' _ - , - �_ ,-. ,' __ _ _ (f � � � ! ,,� _' 'I 1�d �`� �f �r;, y 3 1. �i��'� . —_----- ,�L_ , -;�I - -= - -� ,-, �.+. �'` -,, ' . ;� , __ . _ _ - _ � � -� �' �� -�� —�� -i � �o�a�J y Y o e p t e:�� , � ��'�� ' n �� z ( " 1'_' -- —�— 1' �— Y y f :$t4 _ ' ��' - " ( �� .,��— aM -�. ,1,�\' _—�-t,�� _—. -, � �,� �t� � �, � — �- � —,� {_—� � ? _ :� _ ��,v�a - } - - - � ____� -.�[�- - , 3 ��, , , � a i ' �. "�`' `� _,� W� � __ `�'�.�J` �. �� ...,.�� ,�� -. �- ' -'�� . . +1 .. �� . � _ -. . �: I \ J ---- � � -, >•,,. �-�- � � � �_ � _-�.__ ��`` � �-�` _,_ * „ , ,,._.�—�-- _ _ 1 �'� �� __{t �"'j— .� ' � ��__—,..T `� a 1 �----=-- _ f n'. '} ' ..` , . ,.,,. . ---- - � , . �` '� � � � --• t� � -- ,� ; -- - —_ --_; � .-, - - � . ��, ��r- ;� � '�:'� " , �'��-� --- ��--� _� - �- -� -� - � � J _r , � , ,t-- �� -�' ,�. �� s , '� f, _ � � --- — —1 "' ° _ +��_: �. -- _- , � . � . � _ _ _ . � ',, 1 -- �:.�— , ;!_� �� ' — �^ .�,;. .. � i - - ----- ---- ---- , f Joy To The World Lyrics � Joy to the world! The Lord is come Let earth receive her King! Let every heart prepare Him room , And heaven and nature sing And heaven and nature sing And heaven, and heaven and nature sing Joy to the world! the Savior reigns , � Let men their songs employ � While fields and floods j Rocks, hills and plains � Repeat the sounding joy Repeat the sounding joy Repeat, repeat the sounding joy No more let sins and sorrows grow � Nor thorns infest the ground ' He comes to make His blessings flow Far as the curse is found ,` Far as the curse is found � , Far as, far as the curse is found I ' � , �- - -- -------- --. - - — . . - - - - - -- - -- -- - - --- - , � � � � , � � � � � 1{ ��Q ( J/[��/ c�/�� YV �,x��er �s� GF� f�! ,/Innuut _^�j��/�7//�� E�G1 r� ^ �u V��i `U �t �,,, � a w • ` V7 V � ' � �; , . ��ric��i ��eecei��i, �F��. :�:��— c�:�� l� �, . . � � � .- . 3- 7 .. �" �'e anG�i� �j�`�(�� `��(,�a �`��YVa�� ;- _ 5_OQ Santa arrives with the�ce Princess v y a,,►tn and Sco�e You'll lind more uniquc ^ Santa wdl arrivc by lirc truck at thc � 9 � Shops&Art Galleries iV.rval Muscum at i:30f�1 "_ S:�S-T:OD Pf�ofos with Sa nta tilled with art�vork Slick aruuncl tor Ihc � at AubinAhrens P��etography(pecwsc bring Jcod. and gcros,and onc ol-a-kind Vcc lighting and RHS �3, giits to gi��e or Io keep. � marching band! �YJmt GOJIS. OtCJSh d0.'l�71cOn fOf�D�dl(60d bJ�kS) Mect artists and shnp o�vnrrs, .. �Id fnends ancl n�w nei6htmrs! � - � fl:��7:00 Na�y Woodwinds We�•e wrapped up the Picwr�5 taktn with S.inta at a U1 YAliuy�pmS�d P.7lk iinhday spint all lor��u! O thc Krtsap Cmdrt Un�un frum . � fi:00 to 7:00 PM11 • Ho�on lhe Horse � , � �' `� 7:15 Tree Iighti ng DrawnCarriageonPacifit � / �t� o a�tiYhi�tyDamseadPask It's(rec and tun lor lll a�;cs. ` �Y � Siop by the � E�•crgrcen CnilJren's Music&Carolers Thcalre 8 AurOra � Sinj;w+lh Ilic Br�•+nerton O ValentinMti Puppel Muscum {'�� Children's aetia+ties 1'outh Ch�rale and Ihe o 0 on 4th Strcet to � � Swcct��dclini�s. sce cxhibils and rnjoy �, � Thcir holiday inusit � a�• �� Iree rcfreshmenis: Vio�et the 6oak Mob��e brmgs�ood cheer • araund ro�vn. • R�. O � � � Scavenger Huni w/prizes r� O Ktty�WnterFc�st ;`t j Fa good thin�s O guin�+w��h dinncr Ftot Ct�oco9ate to eal�ust w.ilk � Q ��{��5 8e Refreshme�ts down�he street. Thc restaurants are � c�ch stcp oi E�'s rcacly�•ith ,.. i '� good chtrr and thc�a.iy.}Kw'II tincl , �� lots ot treats! (�ne rarc,some even � Like ho;cuuk� �^ � {�avc Irvc music � � � �? • � and oodies � �o share. � ¢ S(1 sYCCI. � {� ' 1 � � eR�e��oH C`�KI TSAP :Q; "� � ' a. : ' , Presented by the Downtown Bremerlon Association .�o„�.�o. L.._ • • m + ! _; a � P"o- Sponsored by Kitsap Credit Union .6soa.rwN __� °i��'��• I_ '• ��"�-J�7L"�`�k .,.,. , ,,,..� . .,. �.,. e ..,..,,e., , . �,,,.. www.downtownbremerton.org � -. - t �� .� �/ � � � � r�� UBIN H RENS � CREDIT • � � ooN � pTOGRAPHY . � ..� THANKS FOR SHOPPING LOCAL 1N BREMERTON! YOU INVESTED iN YOUR tOMMUMITY. YVe are your hiends and ne�ghbors Stu�es show dia�lo�al lwsinesfesdonate oo communicy�ausei at morc then ivhce the rnte of ehainc YOU'YE MFLPED BULLD A TMRtVING OOMMERt1AL ENVIRO{11MENT. Loca!envepreneurs edA varlery a�Ntaiiry to our communStyr.The more xve sp�d lo�lly,Ne moce we w�J anract more b�ninesses and chaaces. YOU liF1PED TNE LO�AL ECONOMV. Farevery S 106 you spend at a lowl DuQness,S66��rs in the co�mnunlry(d�ae�543 at a nationad chaln�_ YOU SUPPORTED LO�ALJOBS. Scudles show that smn0 6uslnesse�are ehe hlggest source oi susialnahle Job gmvnh. YOU NELPED TM�EANIRONMENT. By vavel7ng a shoner dlstance to pwd�ase Eocelijr-craated goods a+d s�rvkes,yrw reduce trampm[ationaelateQ bnpaccs to�he envlronment in the form a(fueF and paekagu�g TAKE THE PLEDGE! ,,Our local businesses need your help this holiday season. Commit to spending at least$100 at your local businesses by the end of the year and�let'S build a thriving Bremerton together. �� ` � www.bremertongreendrinks.org yy r � — f � , l � I I '� 1 ,•� ��--� , + _ _ I '� .�� . i'/ ' 1 11 1�1 >�� ' �_' _ � i V �Y�.. ..f ,;� '.� 1 �! _ ��___ ' }��,�,�,1� C`� ,- il� �-— i i �k 1 1�.�.1. �1 � I I I f�� r � ��'l '�� - _ � , , `�t� .�� -_ _ � ,� l . ��, ;,,i,�, - � `` ; ; I , '�ni�1�u5i�11 r '. �. --- � ' � I , .�'' I �i� � �1 I�a). 1�' ,�� ! � �� ' l �� + �. ,I � � � i , �u i�i — � 4,191^�� __ ! ,��r. ,�+.Ipu� .��I',`��` � �tt`��' � ' ' � �;i I'i��D�� 1� �/�l�y�— ✓ � �� "{�'��- �� ' , ;,�I�'`I' � ! ,��j�I " — I 1 II; � � � I �� ;� � �� li,�, �5'�• r a��ar+�� a � �� k♦l�� ;,�. � ,l-,� __ � � 'if �, �i � � N I A:; 4 1 1�'�� I � .' 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Kiwanis Park Monday, Dec. 14 � �� ,,,,,, , ""�-- 6:30 -7:30 pm , �,,,,. ,-: � -'�''%�,,� a� 1701 5th Street, �remerton _ j/i A �. - S a � - � _ .�, � ,� � . ��-=j� �=Q � Come meet Santa and sing �� 'c holiday carols with us. � ,;; ._ :,n� - ,.. n _ �� Free Hot Chocolate will be � served! . . �i�?/ - nsored b : � � � Community of Christ Spo v ' � and Lutherar� Church . =;i� • � � i ites ,/ the � ;� GROU1�1 BR AK�IN ELE RATIO �. f t e ne �oll e Instr ctro C�enter ��- -�- ;a :� - } � :� ��, �. � � � � � � .� _� _ _ �� •� : �� . �. � � ,� � . !! � � i � � : ; y � � . � � , �� - ��f' ' . . � n• � �� '' _A, _ - � �� , ��;�y�. � ' ��'�� '�i�O� `a �►�_ � 'T�� ; ;�� :� � � ,.� R�� i ��. {�r �-•� i� — !�l� � � � t':' _ _f ��f�'r�' _ . �� .>r�• � � �� ' = �� y��.t ' _t-� �i r�� . . •_ "�cl� r.� ' - �� ' � �� . � v -- �..�.�---� �� - . - � , �x�� ..._; ` ` r " �� _. .. �?t�.+�" r� '�` ��'�y�'...w�J � ' .��/J�+�c � I �, -- _ � �in` �,; ?� • �a� -� ' _ • . ', \0 ~ .'�, � � 1 �i. ��' . �-- -- '�� ''� (�i � �� . 2:30 p.m., Thursday, December 17, 2015 at Olympic College � 1600 Chester Avenue, Bremerton, WA 9�;207 schacht aslanl archltects For more information, contact the Foundation office at 360-475 AGENDA BILL � CITY OF BREMERTON 5 CITY COUNCIL SUBJECT: Claims & Check Register Study Session Date: COUNCIL MEETING Date: December 2, 2015 Department: Financial Services Presenter: Shannon Corin Phone: 473-5323 SUMMARY: Approval of the following checks and electronic fund transfers: 1) Check#'s 366176 through 366293 and EFT's 15520 through 15559 in the amount of $3,757,792.73. 2) Regular Payroll for the pay period ending November 15, 2015 in the amount of$721,229.83. 3) Retiree Payroll for the pay period ending November 30, 2015 in the amount of$54,123.51. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount): STUDY SESSION AGENDA: � No Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the consent agenda as presented. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 ' AGENDA BILL � B CITY OF BREMERTON CITY COUNCIL SUBJECT: Minutes of Meeting - Study Session Date: N/A November 18, 2015 COUNCIL MEETING Date: December 2, 2015 Department: City Council Presenter: Council President Phone: (360) 473-5280 SUMMARY: Attached is a summary of the City Council Meeting on November 18, 2015. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: ❑x No Presentation ❑ Full Presentation STUDY SESSION ACTION: � Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 DIGITAL RECORDING CITY COUNCIL MEETING MINUTES Wednesday, November 18, 2015 The weekly meeting of the Bremerton City Councii was called to order Wednesday, November 18, 2015, 8t 5:00 PM Ifl COUt1Cll COf1feP2f1C2 ROOt11 603 Of the NORM DICKS GOVERNMENT CENTER, 345 6'n Street, Bremerton, Washington, with Council President Greg Wheeler presiding. Council Members present were Roy Runyon, Dino Davis, Leslie Daugs and Pat Sullivan. Council Members Eric Younger and Jerry McDonald were absent. Also present were Assistant City Attorney Amanda Harvey; City Clerk Shannon Corin; Council Assistant Christine Grenier; and Kevin Matthew, Information Services Manager. A Cou►vc�� BRiEFitv� was held to discuss General Council Business at 5:00 PM in the Council Conference Room. At 5:30 PM the meeting moved to the Meeting Chambers. President Wheeler announced that Council Member Pat Sullivan will lead the Pledge of Allegiance; and Pastor Mark Adrian of Community of Christ at Memorial Lutheran Church will provide the invocation. MAYOR'S REPORT—Mayor Patty Lent... • Brought forward Collette Berna, Parks Preservation 8� Development, who repo�ted on the Manette Playfield Design Workshop held last night; announced that the next Manette Playfield Planning Meeting will be on December 15 beginning at 6:00 PM at the Senior Center; and was pleased to announced that the City has received a grant to make some much needed upgrades for fishing pier and boat launch at Lions Park; • Introduced Ellen Gustafson who shared that Kitsap Transit now has a Mobile App to assist riders with selecting routes and reserving rides; • Invited Tom Knuckev, City Engineer, to discuss the impact the recent weather has had on the Washington Avenue Project, who still believed the project should be completed by the end of the year; • Attended the "Coats for Kids" event held earlier today where area Firefighters (including Bremerton) presented coats to children at View Ridge Elementary School; and • Wished the community a very happy Thanksgiving. PUBLIC RECOGNITION Karole Johnson, Executive Director for Seeds of Grace, shared that local gardens are currently benefitting local schools and service organizations like Bremerton Foodline; and that the group hopes to build 10 gardens in 2016 through support of the Seeds of Grace Bizarre from December 5 to 6 from 10:00 AM to 4:00 PM at the VanZee Hall at the Kitsap County Fairgrounds. Gale Gillespie announced that the Fraternal Order of Eagles in downtown Bremerton will be hosting a Dinner for the Indigent and Homeless on Saturday, November 21 from 11:00 AM to 1:00 PM; and thanked Kitsap Transit for their sponsorship of the dinner. Bernadette Luke shared her personal experience during a "Point of Time" Homeless Count and hoped society would be more compassionate towards the homeless. Vern LaPrath shared concerns about garbage along City roads; and asked that Council Members to consider the impact of new fees and taxes on seniors living on a fixed income. Glenn Hodqe on behalf of residents in the neighborhood, expressed concerns and asked questions about the proposed street closure near Our Lady Star of the Sea Church. Responses were provided by Wheeler, Davis, and Public Works Direcfor Chal Martin; and Comments were added by Daugs and Runyon... City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 2 of 7 CONSENT AGENDA 5A— Claims & Check Register: Claim 8� Check Numbers 365972 through 366174 and EFT's 15471 through 15519 in the amount of$2,454,933.68; Regular Payroll for the pay period ending October 31, 2015 in the amount of$728,145.22 56 — Minutes of Budget Workshop— November 2, 2015 5C — Minutes of Meeting — November 4, 2015 5D— Minutes of Special Meeting — November 10, 2015 5E — Purchase of two Emergency Generators from Cummins NW for Pump Stations OB-6 and EB- 3 5F— Professional Services Agreement with KPG Interdisciplinary Design for design of the Crownhill Elementary Sidewalk Project 5G — Professional Services Agreement with KPG Interdisciplinary Design for design of the Highway Safety Improvements Project Phase 2 Project 5H — Ordinance No. 5287 amending Ordinance No. 4875 and No. 5226 to extend the term of the Puget Sound Energy Franchise Agreement to November 30, 2017 There were no questions or comments from the public... 06:11:12 M/S/C/U (Runyon/Daugs) Move to approve the CoNSENT A�EN�a as presented. PUBLIC HEARINGS � 6A—PUBLIC HEARING TO ADOPT RESOLUTION NO. 3253 APPROVING THE 2016-2020 KITSAP COUNTYICITY OF BREMERTON CONSOLIDATED PLAN: Sarah Achaoui, CDBG Program Administrator, stated that on July 15, 2015, City Council approved the 2015 Work Program for the 2016-2020 Consolidated Plan. In compliance with the U.S. Department of Housing and Urban Development(HUD) regulations (24 CFR Part 91), the Consolidated Plan is adopted and submitted every five years. The City of Bremerton and Kitsap County entitlement grant programs, consisting of CDBG and HOME funds, implement this plan as a consortium. The Plan is prerequisite to receiving federal funds and also serves as the City's application to HUD for such funds. The current plan will expire on December 31, 2015. President Wheeler clarified that due a potential quorum situation, there w:'ll be no action tonight on Items 6A and 6B, but the items will be continued to a Special Meeting on IVovember 23 when a full Council is expected... President Whee/er then opened the public hearing... Comments were provided by Wes Larson; and Mike Brown... With no further comments received, the hearing was closed to the public, and opened for discussion to the City Council... 06:23:23 Motion was made by Davis, and seconded by Runyon... With a comment provided by Runyon... 06:24:02 M/S/C/U (Davis/Runyon) Move to continue the Public Hearing to the City Council Special Meeting scheduled for November 23, 2015 at 5:30 PM. 6B — PUBLIC HEARING TO ADOPT RESOLUTION NO. 3254 APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDING RECOMMENDATIONS TO BE INCLUDED IN THE 2016 CDBGIHOME ACTION PLAN SENT TO THE DEPARTMENT OF City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 3 of 7 HOUSING AND URBAN DEVELOPMENT (HUD): Sarah Achaoui, CDBG Program Administrator, summarized that on September 2, 2015 City Council approved the 2016 CDBG/HOME Policy Plan outlining the CDBG and HOME funding allocation process. Based on that policy, the program's Project Review Committee has developed 2016 funding recommendations for CDBG funding and the , Coordinated Grant Review Committee has developed 2016 funding recommendations for HOME funding for Council consideration and approval. If approved, these submissions will be sent to the Department of Housing and Urban Development (HUD) in the City's 2016 Annual Action Plan. President Wheeler opened the public hearing... Wes Larson indicated that his comments are the same as those made during his testimony for Item 6A. With no further comments received, the hearing was closed to the public, and opened for discussion to the City Council... 06:30:45 Motion was made by Davis, and seconded by Runyon... A question was asked by Daugs...Comments were provided by Wheeler and Davis... 06:31:57 M/S/C/U (Davis/Runyon) Move to continue the Public Hearing to the City Council Special Meeting scheduled for November 23, 2015, at 5:30 p.m. 6C — PUBLIC HEARING ON REVENUE SOURCES FOR THE PROPOSED 2016 CITY OF BREMERTON BUDGET: Cathv Johnson, Financial Services Director, explained that tonight's public hearing is to take comments on the revenue sources for the 2016 Proposed Budget. The proposed budget anticipates property and EMS levy increases of the full 1% allowed by law, leaves the utility taxes/PILOT rates unchanged leaves, but changes the allocation, commercial parking tax rates unchanged, adjusts for the annual $20,000 increase to the B&O tax exemption rate, incorporates utility rate increases and includes interfund transfers between funds where appropriate, etc. Overall, revenue projections throughout all funds remain conservative. Ms. Johnson clarified that Council will be asked to take action tonight on the following General Business items: • (7A) Resolution No. 3255 re-establishing and amending City Rates and Fees for 2016 • (76) Ordinance No. 5288 amending Chapters 15.01 and 15.06 of the Bremerton Municipal Code (BMC) and Ordinance No. 5266 relating to Assessr.�ents, Rates, Fees, and Charges for Water, Wastewater, Stormwater Services . • (7C) Ordinance No. 5289 amending Section 3.50.050 of the Bremerton Municipal Code (BMC) relating to the Utility Taxes for Water, W,astewater and Stormwater Utilities; and • (7D) Resolution No. 3256 amending Resolution No. 3194 relating to an Interfund Loan to the Conference Center Operations Fund from the Equipment Rental Reserve (ERR) Fund And that action is requested at the November 23 Special Meeting on the following related items: • Resolution declaring Substantial Need relating to the Property Tax Levy & EMS Levy; and • Ordinance levying Property Taxes President Wheeler opened the public hearing... Comments regarding the proposed General Facilities Charge (GFC) were provided by Teresa Osinksi, Home Builders Association; and Joe Keller, Public Works Department... City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 4 of 7 With no further comments received, the hearing was closed... 6D — PUBLIC HEARING (1 of 2) ON THE PROPOSED 2016 CITY OF BREMERTON BUDGET: Cathv Johnson, Financial Services Director, explained that tonight's public hearing is to take comments on the 2016 Proposed Budget. Budget workshops were held on October 26 and 27 where an overview of the Mayor's proposed budget was presented to the Council. On November 2, after answering questions raised regarding the budget, the Council deliberated and requested changes to the budget as presented. Those changes have been incorporated in the presentation for tonight's hearing. The 2016 budget, as proposed, is a status quo budget with minimal program changes. Revenue Sources were discussed at the public hearing preceding this item. Total budgeted expenditures, excluding ending fund balance, decrease by 1.2% over the 2015 amended expenditure budget. The net change to staffing is .11 FTE. It is anticipated that $10.27M in Water/Sewer Revenue bonds will be issued to fund utility capital programs. President Wheeler opened the public hearing... With no comments from the public, the hearing was closed... GENERAL BUSINESS 7A— RESOLUTION NO. 3255 RE-ESTABLISHING AND AMENDING CITY RATES AND FEES FOR , 2016: Cathv Johnson, Financial Services Director, summarized that each year, as part of the budget process, the various City departments review their charges,�rates and fees for services and make recommendations on any changes needed. The attached includes recommended changes to fees charged by the various departments. There were no comments from the public... 06:57:24 Motion was made by Davis, and seconded by Sullivan ... ' Comments were provided by Daugs and Runyon; Questions were asked by Runyon; with responses provided by Ms. Johnson; Ms. Spencer, and Mr. Birkenthal... 07:00:18 (M/S/C/U) Move to adopt Resolution No. 3255 re-establishing and amending City Rates & Fees for 2016. 7B —ORDINANCE NO. 5288 AMENDING CHAPTERS 15.01 AND 15.06 OF THE BREMERTON MUNICIPAL CODE (BMC) AND ORDINANCE NO. 5266 RELATING TO ASSESSMENTS, RATES, FEES AND CHARGES FOR WATER. WASTEWATER, STORMWATER SERVICES: Cathv Johnson, Financial Services Director, explained that the City retained Financial Consulting Solutions Group (FCS) to perform a general facilities charge (GFC) update for water, wastewater and stormwater facilities, as well as a review of the City's miscellaneous fee schedule. The last GFC update was in 2009. The study analyzed existing and future expenses related to system growth, and determined the Equivalent Residential Unit "maximum allowable charge" for each utility. The City may charge less, but not more. However, should the City adopt lower GFCs than indicated by the analysis, the existing customer base would be subsidizing system expansion. Staff is recommending a methodology change for calculating wastewater GFCs. The change would base wastewater GFCs on water meter size, instead of the City's current methodology which uses fixture counts and other metrics. At the Council's request, staff inet with the Home Builders Association, Association of Realtors and the Rate Payer Advisory group in a Stakeholder meeting September 29�h to discuss the proposal. The HBA and Realtors were concerned about the impact the large GFC increase would have on new City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 5 of 7 home starts; also, concern was raised about wastewater GFCs for large residential developments, which the HBA and Realtors perceived as subsidizing these developments. In addition, the HBA and Realtors requested that the City adopt a process enabling GFC payments to be made later in the development process, rather than up-front. Also, the HBA and Realtors requested that the GFC increase be phased in over three years. This proposal adopts those requests, and in addition grandfathers the existing fee basis for current developments on the books. However, this proposal does not recommend adopting a lower GFC than recommended by the FCS study; nor does this proposal recommend reverting back to the old methodology for calculating the wastewater GFC. The FCS study also provided an analysis of the City's fees and charges for services provided. This analysis is straight forward; the fully-loaded labor rate calculation for City utility services is $67.38 per hour. Exhibit B incorporates this calculated rate. Finally, not directly related to the issues above, Exhibit B incorporates 2016 rate increases for the City's three utilities— 1.25% for Water; 2.25% for Sewer; and 3.75% for Storm. These increases all, track below the 2012 rate study expectations. These increases are necessary to support the operation and Capital programs of the City's three utilities. The proposed ordinance amends and updates BMC Chapters 15.01 and 15.06 and Ordinance No. 5265 relating to assessments, rates, fees, and charges for water, wastewater and stormwater services. The rates and fees set forth in the attached exhibits to the proposed ordinance are recommended by staff, comport with the FCS study, and include consideration of the Realtor and HBA inputs. Comments and questions were provided by Joe Keller, John Larson, and Richard Huddy; with responses provided by Chris Gonzalez (FCS), and Mr. Martin... 07:23:55 Motion was made by Davis, and seconded by Runyon...Questions and comments were submitted by Davis, Daugs, Runyon, Sullivan, and Wheeler; with responses provided by Mr. Martin, Mr. Gonzalez, Anqie Sanchez Virnoche (FCS), Utility Operations Manager Wavne Hamilton, Ms. Johnson, and Ms. Spencer... 07:58:20 (M/S/C) (Davis/Runyon) Move to pass Ordinance No. 5288 amending Chapters 15.01 and 15.06 of the Bremerton Municipal Code and Ordinance No. 5265 relating to assessments, rates, fees and charges for water, wastewater and stormwater services. Voted in favor of Motion: Sullivan, Runyon, W`�eeler Voted opposed to Motion: Daugs, Davis Motion carried: 3 —Yes; and 2— No 7C—ORDINANCE NO. 5289 AMENDING SECTION 3.50.050 OF THE BREMERTON MUNICIPAL CODE (BMC) RELATING TO THE UTILITY TAXES FOR WATER, WASTEWATER AND STORMWATER UTILITIES: Cathv Johnson, Financial Services Director, stated that the proposed ordinance repeals Ordinance No. 5224 and amends Section 3.50.050 of the Bremerton Municipal Code to amend language relating to the assessments of the utility taxes for water, wastewater, and stormwater utilities. Comments were provided by John Larson; and Mike Eliason, Kitsap County Association of Realtors... � 08:06:03 Motion was made by Davis, and seconded by Sullivan ...Questions and comments were submitted by Sullivan, Runyon (including a Point of Order called by Davis), Daugs (including a Point of Order by Runyon), and Wheeler; with responses provided by Ms. Johnson... City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 6 of 7 08:13:57 (M/S/C) Move to pass Ordinance No. 5289 amending Section 3.50.050 of the Bremerton Municipal Code relating to the utility taxes for water, wastewater, and stormwater utilities. Voted in favor of Motion: Daugs, Davis, Sullivan, Wheeler Voted opposed to Motion: Runyon Motion carried: 4—Yes; and 1 — No 7D— RESOLUTION NO. 3256 AMENDING RESOLUTION NO. 3194 RELATING TO AN INTERFUND LOAN TO THE CONFERENCE CENTER OPERATIONS FUND FROM THE EQUIPMENT RENTAL RESERVE (ERR) FUND: Cathv Johnson, Financial Services Director, summarized that on June 19, 2013 the City Council approved Resolution No. 3194 authorizing an Interfund Loan to the Conference Center Operations Fund to finance the City's commitment to the Kitsap Conference Center expansion project. Revenue projections provided at the time the loan was approved have not materialized resulting in insufficient resources to make principal payments on the approved schedule. The proposed change to the repayment schedule takes into account rent payments for the third floor space due to Kitsap Transit beginning in 2019 and extends the repayment throughout the term of the Lease agreement including extensions. An accelerator has been included for earlier payment if additional funds are available. There were no commenfs or questions from the public... 08:17:02 Motion was made by Runyon, and seconded by Sullivan ...Questions and comments were submitted by Runyon and Daugs; with responses provided by Ms. Johnson and Arne Bakker, General Manager for the Kitsap Conference Center... 08:20:31 (M/S/C/U) Move to adopt Resolution No. 3256 amending Resolution No. 3194 relating to an Interfund Loan to the Conference Center Operations Fund from the Equipment Rental Reserve Fund. COUNCIL MEMBER REPORTS Rov Runvon reported that there are still many people without power due to the windstorm and encouraged residents to contact Puget Sound Energy at (888) 225-5773 for updates; and for flooding or drain problems, to contact the Public Works Customer Service Dispatch at (360) 473-5920. Dino Davis hoped for compassion for people impacted by the violence around the world this week; encouraged people to contact Odessa at the Fraternal Order of Eagles for more information about the Homeless Dinner this Saturday or to provide a donation by contacting (360) 447-8577. Leslie Dauas announced that KitsaN Habitat for Humanity will be dedicating new homes for Harris Court on Saturday, November 21 at 10:00 AM at 2153 SE Polar Star Lane in Port Orchard; will be attending the 94�h Anniversary Fil-Am Dinner Dance at the Fil-Am Community Center; thanked PSE and City Employees for helping the community during the storm; encouraged people to check on neighbors and family during the cold season, especially those without power; and hoped people would enjoy their time with their families and be thankful for what you have during Thanksgiving. Pat Sullivan wished everyone a safe and Happy Thanksgiving; and mentioned that she has a lot to be thankful for during the holiday season. Grea Wheeler encouraged volunteers to help with the Monthly,Work Party at Kiwanis Park on Saturday, November 28 from 9:00 to 11:00 am; and announced that a City of Bremerton Community Meeting will be held on Monday, November 30 at 5:30 PM in the gym at Our Lady Star of the Sea Catholic School located at the corner of 5th Street and Veneta Avenue where Public Works Director Chal Martin and Jeff Coombe, Project Coordinator, will provide an update on the proposed Pedestrian Plaza Project and Veneta Street Closure between 5'n 6tn Streets; and wished everyone a very Happy Thanksgiving. City Council Reg. Mtg. Minutes Wednesday, November 18, 2015 Page 7 of 7 President Wheeler announced that there will be a Special Meeting held on Monday, November 23 beginning at 5:30 PM in the Meeting Chambers. With no further business, President Wheeler adjourned the Council Meeting at 8:30 PM. Prepared and Submitted by: . � CHRISTINE GR NIER Council Assistant Attest: SHANNON CORIN, City Clerk ' GREG WHEELER, City Council President GW:SC:Is:cg AGENDA BILL �C CITY OF BREMERTON CITY COUNCIL SUBJECT: Minutes of Special Meeting - Study Session Date: N/A November 23, 2015 COUNCIL MEETING Date: December 2, 2015 Department: City Council Presenter: Council President Phone: (360)473-5280 SUMMARY: Attached is a summary of the City Council Special Meeting on November 23, 2015. ATTACHMENTS: Meeting Minutes FISCAL IMPACTS (Include Budgeted Amount): N/A STUDY SESSION AGENDA: � No Presentation ❑ Full Presentation STUDY SESSION ACTION: O Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 DIGITAL RECORDING CITY COUNCIL SPECIAL MEETING MINUTES Wednesday, November 23, 2015 A Special Meeting of the Bremerton City Council was called to order Monday, November 23, 2015, at 5:00 PM 111 COU11C11 C011fe1'2I1C2 R00111 603 Of the NORM DICKS GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, with Council President Greg Wheeler presiding. Council Members present were Eric Younger, Roy Runyon, Dino Davis, Jerry McDonald, and Pat Sullivan. Council Member Leslie Daugs was absent. Also present were City Attorney Roger Lubovich; City Clerk Shannon Corin; Legislative Assistant Lori Smith; and Hans Nilsson, with Information Services. A Cou►vCi� BR�EF�►vG was held to discuss General Council Business at 5:00 PM in the Council Conference Room. At 5:30 PM the meeting moved to the Meeting Chambers. President Wheeler invited Council Member Pat Sullivan to lead the Pledge of Allegiance; and due to the absence of the invited pastor, Mavor Pattv Lent provided an opening prayer. PUBLIC HEARINGS 3A— PUBLIC HEARING TO ADOPT RESOLUTION NO. 3253 APPROVING THE 2016-2020 KITSAP COUNTY/CITY OF BREMERTON CONSOLIDATED PLAN: Sarah Achaoui, CDBG Program Administrator, reiterated that on July 15, 2015, City Council approved the 2015 Work Program for the 2016-2020 Consolidated Plan. In compliance with the U.S. Department of Housing and Urban Development (HUD) regulations (24 CFR Part 91), the Consolidated Plan is adopted and submitted every five years. The City of Bremerton and Kitsap County entitlement grant programs, consisting of CDBG and HOME funds, implement this plan as a consortium. The Plan is prerequisite to receiving federal funds and also serves as the City's application to HUD for such funds. The current plan will expire on December 31, 2015. City Council continued the Public Hearing from November 18 to November 23; and the action before Council is to adopt the Plan. President Wheeler opened the public hearing... Comments were provided by Wes Larson in favor of this action... With no further comments received, President Wheeler closed the hearing to the public, and opened for discussion to the City Council... 05:37:45 Motion was made by Davis, and seconded by McDonald... Comments were provided by Davis...Questions were asked by Runyon and Younger, with responses provided by Ms. Achaoui... 05:41:00 M/S/C (Davis/McDonald) Move to adopt Resolution No. 3253 approving the 2016-2020 Kitsap County and City of Bremerton Consortium Consolidated Plan. Voted in favor of Motion: Sullivan, McDonald, Davis, Runyon, Younger Abstained: Wheeler Motion carried: 5-Yes; and 1-Abstention 36 — PUBLIC HEARING TO ADOPT RESOLUTION NO. 3254 APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME FUNDING RECOMMENDATIONS TO BE INCLUDED IN THE 2016 CDBGIHOME ACTION PLAN SENT TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD): Sarah Achaoui, CDBG Program Administrator, again summarized that on September 2, 2015 City Council approved the 2016 CDBG/HOME Policy Plan outlining the CDBG and HOME funding allocation process. Based on that policy, the program's Project Review Committee has developed 2016 funding recommendations for CDBG funding and the Coordinated Grant Review Committee has developed 2016 funding recommendations for HOME City Council Special Mtg. Minutes Monday, November 23, 2015 Page 2 of 3 funding for Council consideration and approval. If approved, these submissions will be sent to the Department of Housing and Urban Development (HUD) in the City's 2016 Annual Action Plan. City Council continued the Public Hearing from November 18 to November 23; and the action before Council is to adopt the Resolution and approve the Funding Recommendations. President Wheeler opened the public hearing...Wifh no comments received, the hearing was closed to the public, and opened for discussion to the City Council... 05:42:50 Motion was made by Runyon, and seconded by Davis... A comment was provided by Runyon... Questions were asked by Younger, with responses provided by Mr. Larson... 05:45:25 M/S/C (Runyon/Davis) Move to adopt Resolution No. 3254 approving the 2016 funding recommendations to be included in the 2016 Action Plan to HUD, and authorize the Mayor to finalize and execute the contracts with substantially the same terms and conditions as presented once all funding has been secured and HUD has approved the Annual Action Plan. Voted in favor of Motion: McDonald, Davis, Runyon, Younger, Sullivan Abstained: Wheeler Motion carried: 5-Yes; and 1-Abstention GENERAL BUSINESS 4A— RESOLUTION NO. 3257 MAKING A DECLARATION OF SUBSTANTIAL NEED FOR PURPOSES OF SETTING THE LIMIT FACTOR FOR THE GENERAL PROPERTY TAX LEVY AND EMS LEVY FOR 2016: Cathy Johnson, Financial Services Director explained that RCW 84.55.005 allows for a taxing district with a population of 10,000 or greater to levy taxes in an amount that is the lesser of 100 percent plus inflation or 101 percent. Currently the taxes levied in the City of Bremerton in 2015 for collection in 2016 will increase by 0.251% except for the amounts resulting from new construction and improvements to property, and any increase in the value of state-assessed utility property. RCW 84.55.0101 provides for use of a limit factor of 101 percent or less with a finding of substantial need by a majority plus one vote of council members. The City general fund is reliant on fund balance to meet target operating reserves. The additional property tax authority will provide fund to be used for public safety, street maintenance and preservation of the City's other basic core services. There were no questions or comments from the public... 05:50:27 Motion was made by Runyon, and seconded by Davis... Questions were asked by Runyon, Sullivan, and McDonald; with responses provided by Mr. Lubovich and Ms. Johnson... 05:52:50 (M/S/C/U) Move to pass Resolution No. 3257 making a declaration of substantial need for purposes of setting the limit factor for the general property tax levy and EMS levy for 2016. 4B— ORDINANCE NO. 5290 LEVYING PROPERTY TAXES FOR COLLECTION IN 2016: Cathy Johnson, Financial Services Director stated that cities over 10,000 in population are allowed to raise their annual property tax collection by either 1% or the amount of the July Implicit Price Deflator (IPD), whichever is lower. This year, the IPD was .251%. As presented during the public hearing on November 18, 2015, the City is requesting the full 1% increase to our general property tax levy over the prior year's collection, as allowed by law. This increase, along with the amounts anticipated for new construction, has been included in the 2016 Proposed Budget. In addition, we are also requesting the full 1% increase to the EMS levy. The EMS amount anticipated in the 2016 Proposed Budget includes this amount. City Council Special Mtg. Minutes Monday, November 23, 2015 Page 3 of 3 RCW 84.52.020 requires all taxing districts to "certify to the county legislative authority, for the purpose of levying district taxes...the amounts to be raised" by property taxes. RCW 84.55.120 requires that the certification includes the enabling tax ordinance setting the property tax rate. These documents must be submitted to the county by November 30, 2015 There were no comments from the public... 05:54:07 Motion was made by Davis, and seconded by McDonald ...Questions were asked by; with responses provided by... 05:54:50 (M/S/C/U) Move to approve Ordinance No. �290 of the City Council of the City of Bremerton, Washington, establishing the amount to be collected in 2016 by taxation on the assessed � valuation of taxable property within the City limits of Bremerton and setting the property levy rate. With no further business, President Wheeler adjourned the Council Meeting at 5:55 PM. Prepared and Submitted by: � ' � � LORI SMITH Legislative Assistant Attest: SHANNON CORIN, City Clerk GREG WHEELER, City Council President GW:SC:Is:cg AGENDA BILL D CITY OF BREMERTON CITY COUNCIL SUBJECT: Ordinance No. 5291 Study Session Date: November 10. 2015 providingfor the issuance and sale of not COUNCIL MEETING Date: December 2, 2015 to exceed $4,500,000 principal amount of Department: Financial Services Unlimited Tax General Obligation bonds Presenter: Cathv Johnson and delegating authority to the Mayor or Phone: 473-5296 Director of Financial Services to approve final terms of the bonds SUMMARY: On November 3, 2015 the voters approved the issuance of no more than $4.5 million of bonds to finance the purchase of fire apparatus, fire and life safety equipment and remodel fire facilities of the City. The bond issue proposed is a 10 year, Unlimited Tax General Obligationwith level debt service. It is expected that repayment will be made from annual property tax levies upon property in the City as approved by the voters. The attached ordinance delegates to the Mayor or Director of Financial Services the ability to setthe date and rates for the final sale of the bonds. The ordinance sets the parameters under which this can occur. By doing this, the City can react to changing market conditions quickly without beingtied to a date certain based on Council meeting schedules. ATTACHMENTS: Ordinance No. 5291 FISCAL IMPACTS (Include Budgeted Amount): Issuance of the bonds will be included in the 2015 year end budget adjustment. The proposed 2016 budget anticipates capital expenditures from the proceeds of this issue and associated debt service. The property tax levy for collection in 2016 includes a levy sufficient to cover debt service payments. STUDY SESSION AGENDA: ❑ No Presentation ❑x Full Presentation STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No. 5291 of the City of Bremerton, Washington, providing for the issuance and sale of not to exceed $4,500,000 principal amount of Unlimited Tax General Obligation bonds and delegating authority to the Mayor or Directorof Financial Services to approve final terms of the bonds. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. 5291 AN ORDINANCE of the City of Bremerton, Washington, relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $4,500,000 aggregate principal amount of unlimited tax general obligation bonds to provide funds to purchase fire apparatus and fire and life safety equipment, to remodel fire facilities and to pay the costs of issuance and sale of the bonds; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. Passed December 2, 2015 This docirnzentPrepared hy.• Foster Pepper PLLC I111 Third Aver�ue, Suite 3400 Seattle, Washrngtofi 98101 (206) 447-4400 siasnsa�, . TABLE OF CONTENTS* Page Section1. Definitions............................................................................................................... 1 Section 2. Findings and Determinations..................................................................................4 Section 3. Authorization of Bonds...................................:.......................................................4 Section 4. Description of the Bonds; Appointment of Designated Representative................. 5 Section 5. Bond Registrar; Registration and Transfer of Bonds.............................................. 6 Section 6. Form and Execution of Bonds................................................................................ 7 Section7. Payment of Bonds................................................................................................... 8 Section 8. Funds and Accounts; Deposit of Proceeds.............................................................. 8 Section 9. Redemption Provisions and Purchase of Bonds..................................................... 8 Section 10. Failure To Pay Bonds............................................................................................ 10 Section11. Pledge of Taxes..................................................................................................... 10 Section 12. Tax Covenants; Designation of Bonds as"Qualified Tax Exempt Obligations".......................................................................................................... 10 Section 13. Refunding or Defeasance of the Bonds ................................................................ 11 Section 14. Sale and Delivery of the Bonds ............................................................................ 11 Section 15. Official Statement................................................................................................. 12 Section 16. Continuing Disclosure .......................................................................................... 12 Section 17. Supplemental and Amendatory Ordinances.......................................................... 14 Section 18. General Authorization and Ratification................................................................ 15 Section19. Severability........................................................................................................... 15 Section 20. Effective Date of Ordinance................................................................................. 15 *The cove�•page, table of contents and section heudinRs of this ordinance ure for convenience of reference onlv,and sJrull�rot 6e rrsed to resolti�e af�y qrrestio�r o/'interpretatiorr oj�his of•dina�ice. —1— siasoaa�a CITY OF BREMERTON, WASHINGTON ORDINANCE NO. 5291 AN ORDINANCE of the City of Bremerton, Washington, relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $4,500,000 aggregate principal amount of unlimited tax general obligation bonds to provide funds to purchase fire apparatus and fire and life safety equipment, to remodel fire facilities and to pay the costs of issuance and sale of the bonds; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the final terms of the sale of the bonds; and providing for other related matters. THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Definitions. As used in this ordinance, the following capitalized terms shall have the following meanings: (a) "Autlzor•i�ed Denomination" means $5,000 or any integral multiple thereof within a maturity of a Series. (b) "BeneJicra! Ou�f�er•" means, with respect to a Bond, the owner of any beneficial interest in that Bond. (c) '`Bond" means each bond issued pursuant to and for the purposes provided in this ordinance. (d) "Bond Courrsel" means the firm of Foster Pepper PLLC, its successor, or any other attorney or firm of attorneys selected by the City with a nationally recognized standing as bond counsel in the field of municipal finance. (e) "Bond Furtd" means the Unlimited Ta�c General Obligation Bond Fund. 2015, of the City created for the payment of the principal of and interest on the Bonds. (� "Bond Purchase Agr•eerr2enf' means an offer to purchase a Series of the Bonds, setting forth certain terms and conditions of the issuance, sale and delivery of those Bonds, which offer is authorized to be accepted by the Designated Representative on behalf of the City, if consistent with this ordinance. (g) "Bor:d Register" means the books or records maintained by the Bond Registrar for the purpose of identifying ownership of each Bond. (h) "Bond Registrar' means the Fiscal Agent, or any successor bond registrar selected by the City. -1- siaKnxa�z (i) "Ciry�' means the City of Bremerton, Washington, a municipal corporation duly organized and existing under the laws of the State. (j) "Ciry Council" means the legislative authority of the City, as duly and regularly constituted from time to time. (k) "Code" means the United States Internal Revenue Code of 1986, as amended, and applicable rules and regulations promulgated thereunder. (1) "DTC" means The Depository Trust Company, New York, New York, or its nominee. (m) "Designated Representntive" means the officer of the City appointed in Section 4 of this ordinance to serve as the City's designated representative in accordance with RCW 39.46.040(2). (n) "Final Ter•ms" means the terms and conditions for the sale of a Series of the Bonds including the amount, date or dates, denominations, interest rate or rates (or mechanism for determining interest rate or rates),payment dates, final maturity, redemption rights,price, and other terms or covenants. (o) "Fiscal Agenf' means the fiscal agent of the State, as the same may be designated by the State from time to time. (p) "Governrnent Obligations" has the meaning given in RCW 39.53.010, as now in effect or as may hereafter be amended. (q) "Issue Date" means, with respect to a Bond, the date of initial issuance and delivery of that Bond to the Purchaser in exchange for the purchase price of that Bond. (r) "Letter of�Representatioris" means the Blanket Issuer Letter of Representations between the City and DTC, dated November 19, 1997, as it may be amended from time to time, and any successor or substitute letter relating to the operational procedures of the Securities Depository. (s) "MSRB" means the Municipal Securities Rulemaking Board. (t) "Official Slulentent" means an offering document, disclosure document, private placement memorandum or substantially similar disclosure document provided to purchasers and potential purchasers in connection with the initial offering of a Series of the Bonds in conformance with Rule 15c2-12 or other applicable regulations of the SEC. (u) "Owner'' means, without distinction, the Registered Owner and the Beneficial Owner. (v) "Pr-ojc�ct" means the purchase of two fire engines and one ladder truck with related equipment and various pieces of firefighting equipment, to remodel fire station#2 and#3, and other capital purposes, as deemed necessary and advisable by the City. Incidental costs -2- 514808973 incurred in connection with carrying out and accomplishing the Project, consistent with RCW 39.46.070, may be included as costs of the Project. The Project includes acquisition, construction and installation of all necessary furniture, equipment, apparatus, accessories, fixtures and appurtenances. The term "land" includes all real property and all appurtenant improvements, structures and interests therein. (w) "Pr�ject Fund' means the fund or account designated or created by the Director of Financial Services for the purpose of carrying out the Project. (x) "Purchaser" means D.A. Davidson & Co. of Seattle, Washington, or other legal entity or group of entities selected by the Designated Representative to serve as purchaser in a private placement, underwriter or placement agent in a negotiated sale of any Series of the Bonds. (y) "Rating Agency" means any nationally recognized rating agency then maintaining a rating on the Bonds at the request of the City. (z) "Recv�•cI Date" means the Bond Registrar's close of business on the 15th day of the month preceding an interest payment date. With respect to redemption of a Bond prior to its maturity, the Record Date shall mean the Bond Registrar's close of business on the date on which the Bond Registrar sends the notice of redemption in accordance with Section 9. (aa) "Registered Ou�r�er' means, with respect to a Bond, the person in whose name that Bond is registered on the Bond Register. For so long as the City utilizes the book-entry only system for the Bonds under the Letter of Representations, Registered Owner shall mean the Securities Depository. (bb) "Rule lSc2-12" means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934, as amended. (cc) "SEC" means the United States Securities and Exchange Commission. (dd) "Securities Depository'' means DTC, any successor thereto, any substitute securities depository selected by the City that is qualified under applicable laws and regulations to provide the services proposed to be provided by it, or the nominee of any of the foregoing. (ee) "Series of the Bonds" or "Series" means a series of the Bonds issued pursuant to this ordinance. (f� ``State' means the State of Washington. (gg) "Terrn Boricl" means each Bond designated as a Term Bond and subject to mandatory redemption in the years and amounts set forth in the Bond Purchase Agreement. (hh) "Undertaking'�' means the undertaking to provide continuing disclosure entered into pursuant to Section 16 of this ordinance. -3- 51480847 3 Section 2. Findin�s and Determinations. The City takes note of the following facts and makes the following findings and determinations: (a) Votcr Atrthor•ization of Boncis. At an election held on November 3, 2015,pursuant to Ordinance No. 5281, the reyuisite proportion of the City's qualified voters passed Proposition No. 1 and approved the issuance of not to exceed $4,500,000 principal amount of bonds for the purpose of providing funds necessary to carry out the Project, and the collection of excess property taxes in amounts sufficient to pay the principal of and interest on those bonds. (b) Plan of� Finnncing. Pursuant to applicable law, including without limitation chapters 39.36, 39.44, 39.46 and 39.52 RCW, the City is authorized to issue general obligation bonds for the purpose of financing the Project, which is a capital purpose only and does not include the replacement of equipment. The total expected cost of the Project is approximately $4,500,000, which is expected to be made up of proceeds of the Bonds and other available money of the City. (c) Debt Capacity. The maximum amount of indebtedness authorized by this ordinance is $4,500,000. Based on the following facts, this amount is to be issued within the amount permitted to be issued by the City with voter approval for general municipal purposes: (1) The assessed valuation of the taxable property within the City as ascertained by the last preceding assessment for City purposes for collection in the calendar year 2015 is $2,354,542,747. (2) As of November 1, 2015, the City has limited tax general obligation indebtedness, consisting of bonds outstanding in the principal amount of$25,660,000, which is incurred within the limit of up to 1'/z% of the value of the taxable property within the City permitted for general municipal purposes without a vote. (3) As of November 1, 2015, the City has unlimited tax general obligation indebtedness for capital purposes only outstanding in the principal amount of $8,705,000 for general municipal purposes; none for City-owned water, artificial light, and sewers; and none for acquiring or developing open space, park facilities, and capital facilities associated with economic development. The indebtedness described in this paragraph has been incurred with the approval of the requisite proportion of the City's qualified voters at an election meeting the minimum turnout requirements, within the limit of up to 2'h% of the value of the taxable property within the City for general municipal purposes (when combined with the outstanding limited tax general obligation indebtedness), 2'/z% for utility purposes and 2'/z% for open space, parks and economic development purposes. (d) The Bonds. For the purpose of providing the funds necessary to carry out the Project and to pay the costs of issuance and sale of the Bonds, the City Council finds that it is in the best interests of the City and its taxpayers to issue and sell the Bonds to the Purchaser, pursuant to the terms set forth in the Bond Purchase Agreement as approved by the City's Designated Representative consistent with this ordinance. Section 3. Authorization of Bonds. The City is authorized to borrow money on the credit of the City and issue negotiable unlimited tax general obligation bonds evidencing -4- 514808473 indebtedness in one or more Series in the aggregate principal amount not to exceed $4,500,000 to provide funds necessary to carry out the Project and to pay the costs of issuance and sale of the Bonds. The proceeds of the Bonds allocated to paying the cost of the Project shall be deposited as set forth in Section 8 of this ordinance and shall be used to carry out the Project, or a portion of the Project, in such order of time as the City determines is advisable and practicable. Section 4. Description of the Bonds; Appointment of Desi�nated Representative. The Mayor, or the Director of Financial Services in the absence of the Mayor, is appointed as the Designated Representative of the City and is authorized and directed to conduct the sale of the Bonds in the manner and upon the terms deemed most advantageous to the City, and to approve the Final Terms of each Series of the Bonds, with such additional terms and covenants as the Designated Representative deems advisable, within the following parameters. (a) Pr-iricipal Amount. The Bonds may be issued in one or more Series and shall not exceed the aggregate principal amount of$4,500,000. (b) Date or Dates. The Bonds shall be dated as of their date of delivery to the Purchaser, which date may not be later than December 31, 2016. (c) Denomiriatior�s, SerieS D�S1g11RZ1071, etc. The Bonds must be issued in Authorized Denominations, shall be numbered by Series separately in the manner and shall bear any name and additional designation as deemed necessary or appropriate by the Designated Representative. (d) Inter-est Rntes. The Bonds shall bear interest at fixed rates per annum (computed on the basis of a 360-day year of twelve 30-day months) from their date or from the most recent interest payment date for which interest has been paid or duly provided for, whichever is later. One or more rates of interest may be fixed for the Bonds, provided that no rate of interest for any Bond may exceed 5.00%, and the "all-in" true interest cost to the City for each Series of Bonds may not exceed 4.00%. (e) Puyrnent Dates. Interest must be payable at fixed rates semiannually on such dates as are acceptable to the Designated Representative, commencing no later than one year following the lssue Date. Principai payments shall commence on a payment date acceptable to the Designated Representative and must be payable at maturity or in mandatory redemption installments at least annually thereafter, on such dates as are acceptable to the Designated Representative. (� Firical Matiiriry. The Bonds shall mature no later than December 1, 2025. (g) Redemption Riglats. It is not expected that the Bonds will be subject to redemption prior to their stated maturities, however, in her discretion, the Designated Representative may approve in the Bond Purchase Agreement provisions for the optional and mandatory redemption of Bonds, as follows: (1) Optional Redem�tion. Any Bond or Series of Bonds may be designated as being (A) subject to redemption at the option of the City prior to its maturity date on the dates and at the prices set forth in the Bond Purchase Agreement; or (B) not subject to redemption prior to its maturity date. -5- siasoaa�a (2) Mandatorv Redemption. Any Bond may be designated as a Term Bond, subject to mandatory redemption prior to its maturity on the dates and in the amounts set forth in the Bond Purchase Agreement. (h) Price. The purchase price for any Series of Bonds may not be less than 98% or more than 130%of the stated principal amount of that Series. (i) Ot{ier Terms and Conditions. (1) The Bonds may not be issued if there is an error in the conducting of the election authorizing such Bonds or if there was not sufficient votes cast at such election as required by chapter 39.40.010 RCW. (2) The Bonds may not be issued if it would cause the indebtedness of the City to exceed the City's legal debt capacity on the Issue Date. (3) The Bonds may be sold in accordance with Section 14 of this ordinance. (4) The Designated Representative may determine whether it is in the City's best interest to provide for bond insurance or other credit enhancement; and may accept such additional terms, conditions and covenants as he may determine are in the best interests of the City, consistent with this ordinance. Section 5. Bond Registrar; Re�istration and Transfer of Bonds. (a) Registr•ation of�Bonds. Each Bond shall be issued only in registered form as to both principal and interest and the ownership of each Bond shall be recorded on the Bond Register. (b) Borrcl Regrstrar; DZIIlE'.s. The Fiscal Agent is appointed as initial Bond Registrar. The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and transfer of the Bonds, which shall be open to inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificate of Authentication on each Bond. The Bond Registrar may become an Owner with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Owners. (c) Borid Register; Trunsfer• arld Exchange. The Bond Register shall contain the name and mailing address of each Registered Owner and the principal amount and number of each Bond held by each Registered Owner. A Bond surrendered to the Bond Registrar may be exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal amount and of the same Series, interest rate and maturity. A Bond may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange -6- SIdRU847 3 or transfer shall be without cost to the Owner or transferee. The Bond Registrar shall not be obligated to exchange any Bond or transfer registered ownership during the period between the applicable Record Date and the next upcoming interest payment or redemption date. (d) Secur•ities Depository; Book-Er2try Or�ly Form. If a Bond is to be issued in book- entry form, DTC shall be appointed as initial Securities Depository and each such Bond initially shall be registered in the name of Cede & Co., as the nominee of DTC. Each Bond registered in the name of the Securities Depository shall be held fully immobilized in book-entry only form by the Securities Depository in accordance with the provisions of the Letter of Representations. Registered ownership of any Bond registered in the name of the Securities Depository may not be transferred except: (i) to any successor Securities Depository; (ii) to any substitute Securities Depository appointed by the City; or (iii) to any person if the Bond is no longer to be held in book-entry only form. Upon the resignation of the Securities Depository, or upon a termination of the services of the Securities Depository by the City, the City may appoint a substitute Securities Depository. If(i) the Securities Depository resigns and the City does not appoint a substitute Securities Depository, or (ii) the City terminates the services of the Securities Depository, the Bonds no longer shall be held in book-entry only form and the registered ownership of each Bond may be transferred to any person as provided in this ordinance. Neither the City nor the Bond Registrar shall have any obligation to participants of any Securities Depository or the persons for whom they act as nominees regarding accuracy of any records maintained by the Securities Depository or its participants. Neither the City nor the Bond Registrar shall be responsible for any notice that is permitted or required to be given to a Registered Owner except such notice as is required to be given by the Bond Registrar to the Securities Depository. Section 6. Form and Execution of Bonds. (a) Form of Bo�uls; Signatures and Seal. Each Bond shall be prepared in a form consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on its Issue Date. (b) Authenticntior�. Only a Bond bearing a Certificate of Authentication in substantially the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: "Certificate of Authentication. This Bond is one of the fully registered City of Bremerton, Washington, Unlimited Tax General Obligation Bonds, 2015, described in the Bond Ordinance." The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond -7- siasosa�s so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. Section 7. Pavment of Bonds. Principal of and interest on each Bond shall be payable in lawful money of the United States of America. Principal of and interest on each Bond registered in the name of the Securities Depository is payable in the manner set forth in the Letter of Representations. Interest on each Bond not registered in the name of the Securities Depository is payable by electronic transfer on the interest payment date, or by check or draft of the Bond Registrar mailed on the interest payment date to the Registered Owner at the address appearing on the Bond Register on the Record Date. However, the City is not required to make electronic transfers except pursuant to a request by a Registered Owner in writing received on or prior to the Record Date and at the sole expense of the Registered Owner. Principal of each Bond not registered in the name of the Securities Depository is payable upon presentation and surrender of the Bond by the Registered Owner to the Bond Registrar. The Bonds are not subject to acceleration under any circumstances. Section 8. Funds and Accounts: Deposit of Proceeds. (a) Bond Fund. The Bond Fund is created as a special fund of the City for the sole purpose of paying principal of and interest and any redemption premium on the Bonds. Bond proceeds in excess of the amounts needed to pay the costs of the Project and the costs of issuance, if any, shall be deposited into the Bond Fund. All amounts allocated to the payment of the principal of and interest on the Bonds shall be deposited in the Bond Fund as necessary for the timely payment of amounts due with respect to the Bonds. The principal of and interest on the Bonds shall be paid out of the Bond Fund. Until needed for that purpose, the City may invest money in the Bond Fund temporarily in any legal investment, and the investment earnings shall be retained in the Bond Fund and used for the purposes of that fund. (b) Pr•oject Firnd. The Project Fund is created as a fund of the City for the purpose of paying the costs of the Project. Proceeds received from the sale and delivery of the Bonds shall be deposited into the Project Fund and used to pay the costs of the Project and costs of issuance of the Bonds. Until needed to pay such costs, the City may invest those proceeds temporarily in any legal investment, and the investment earnings shall be retained in the Project Fund and used for the purposes of that fund, except that earnings subject to a federal tax or rebate reyuirement (if applicable) may be withdrawn from the Project Fund and used for those tax or rebate purposes. Section 9. Redemntion Provisions and Purchase of Bonds. (a) Optional Redemption. The Bonds shall be subject to redemption at the option of the City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase Agreement, consistent with the parameters set forth in Section 4. (b) Mandator_y Redemption. Each Bond that is designated as a Term Bond in the Bond Purchase Agreement, consistent with the parameters set forth in Section 4 and except as set forth below, shall be called for redemption at a price equal to the stated principal amount to be redeemed, plus accrued interest, on the dates and in the amounts as set forth in the Bond -8- s iaaosa�; Purchase Agreement. If a Term Bond is redeemed under the optional redemption provisions, defeased or purchased by the City and surrendered for cancellation, the principal amount of the Term Bond so redeemed, defeased or purchased (irrespective of its actual redemption or purchase price) shall be credited against one or more scheduled mandatory redemption installments for that Term Bond. The City shall determine the manner in which the credit is to be allocated and shall notify the Bond Registrar in writing of its allocation prior to the earliest mandatory redemption date for that Term Bond for which notice of redemption has not already been given. (c) Selectron of Borac�s.for Redemption; Purtial Redemptio��. If fewer than all of the outstanding Bonds are to be redeemed at the option of the City, the City shall select the Series and maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity of a Series are to be redeemed, the Securities Depository shall select Bonds registered in the name of the Securities Depository to be redeemed in accordance with the Letter of Representations, and the Bond Registrar shall select all other Bonds to be redeemed randomly in such manner as the Bond Registrar shall determine. All or a portion of the principal amount of any Bond that is to be redeemed may be redeemed in any Authorized Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar, there shall be issued to the Registered Owner, without charge, a new Bond (or Bonds, at the option of the Registered Owner) of the same Series, maturity and interest rate in any Authorized Denomination in the aggregate principal amount to remain outstanding. (d) Notice of Redemption. Notice of redemption of each Bond registered in the name of the Securities Depository shall be given in accordance with the Letter of Representations. Notice of redemption of each other Bond, unless waived by the Registered Owner, shall be given by the Bond Registrar not less than 20 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the Registered Owner at the address appearing on the Bond Register on the Record Date. The requirements of the preceding sentence shall be satisfied when notice has been mailed as so provided, whether or not it is actually received by an Owner. In addition, the redemption notice shall be mailed or sent electronically within the same period to the MSRB (if required under the Undertaking), to each Rating Agency, and to such other persons and with such additional information as the Director of Financial Services shall determine, but these additional mailings shall not be a condition precedent to the redemption of any Bond. (e) Rescission of'OptiorTal Redenrption Notice. In the case of an optional redemption, the notice of redemption may state that the City retains the right to rescind the redemption notice and the redemption by giving a notice of rescission to the affected Registered Owners at any time prior to the scheduled optional redemption date. Any notice of optional redemption that is so rescinded shall be of no effect, and each Bond for which a notice of optional redemption has been rescinded shall remain outstanding. (fl Eff'ect of Redenzption. Interest on each Bond called for redemption shall cease to accrue on the date fixed for redemption, unless either the notice of optional redemption is rescinded as set forth above, or money sufficient to effect such redemption is not on deposit in the Bond Fund or in a trust account established to refund or defease the Bond. -9- siasosa�a (g) Purcllnse of Bor1�s. The City reserves the right to purchase any or all of the Bonds offered to the City at any time at any price acceptable to the City plus accrued interest to the date of purchase. Section 10. Failure To Pay Bonds. If the principal of any Bond is not paid when the Bond is properly presented at its maturity or date fixed for redemption, the City shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust account established to refund or defease the Bond, and the Bond has been called for payment by giving notice of that call to the Registered Owner. Section 11. Pledge of Taxes. The Bonds constitute general indebtedness of the City and are payable from tax revenues of the City and such other money as is lawfully available and pledged by the City for the payment of principal of and interest on the Bonds. For as long as any of the Bonds are outstanding, the City irrevocably pledges that it shall, in the manner provided by law without limitation as to rate or amount, include in its annual properry tax levy amounts sufficient, together with other money that is lawfully available, to pay principal of and interest on the Bonds as the same become due. The full faith, credit and resources of the City are pledged irrevocably for the prompt payment of the principal of and interest on the Bonds and such pledge shall be enforceable in mandamus against the City. Section 12. Tax Covenants; Desi�nation of Bonds as `'Qualified Taa Exempt Obli�ations." (a) Preservatior� of Tax E.�ernption for Interest vn Borids. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds that will cause interest on the Bonds to be included in gross income for federal income tax purposes. The City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148 of the Code are applicable to the Bonds, take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Bonds. (b) Po.rt-Issuancc Compliunce. The Director of Financial Services is authorized and directed to review and update the City's written procedures to facilitate compliance by the City with the covenants in this ordinance and the applicable requirements of the Code that must be satisfied after the Issue Date to prevent interest on the Bonds from being included in gross income for federal tax purposes. (c) Designation qf Bonds as "Qualifred Tcrx-Exempt Obligations." A Series of the Bonds may be designated as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code, if the following conditions are met: (1) the Series does not constitute "private activity bonds" within the meaning of Section 141 of the Code; -10- �148063'3 (2) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) that the City and any entity subordinate to the City (including any entity that the City controls, that derives its authority to issue tax-exempt obligations from the City, or that issues tax-exempt obligations on behalf of the City) will issue during the calendar year in which the Series is issued will not exceed $10,000,000; and (3) the amount of tax-exempt obligations, including the Series, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Series is issued does not exceed$10,000,000. Section 13. Refundin� or Defeasance of the Bonds. The City may issue refunding bonds pursuant to State law or use money available from any other lawful source to carry out a refunding or defeasance plan, which may include (a) paying when due the principal of and interest on any or all of the Bonds (the "defeased Bonds"); (b) redeeming the defeased Bonds prior to their maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside in a special trust fund or escrow account irrevocably pledged to that redemption or defeasance (the "trust accounf'), money and/or Government Obligations maturing at a time or times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance with their terms, then all right and interest of the Owners of the defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall cease and become void. Thereafter, the Owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds solely from the trust account and the defeased Bonds shall be deemed no longer outstanding. ln that event, the City may apply money remaining in any fund or account (other than the trust account) established for the payment or redemption of the defeased Bonds to any lawful purpose. Unless otherwise specified by the City in a refunding or defeasance plan, notice of refunding or defeasance shall be given, and selection of Bonds for any partial refunding or defeasance shall be conducted, in the manner prescribed in this ordinance for the redemption of Bonds. Section 14. Sale and Deliverv of the Bonds. (a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is authorized to sell each Series of the Bonds by negotiated sale or private placement based on the assessment of the Designated Representative of market conditions, in consultation with appropriate City officials and staff, Bond Counsel and other advisors. In determining the method of sale of a Series and accepting the Final Terms, the Designated Representative shall take into account those factors that, in the judgment of the Designated Representative, may be expected to result in the lowest true interest cost to the City. (bj Procedure ,for Negoliatecl Sale or Privnte Placement. If the Designated Representative determines that a Series of the Bonds is to be sold by negotiated sale or private placement, the Designated Representative shall select one or more Purchasers with which to negotiate such sale. The Bond Purchase Agreement for each Series of the Bonds shall set forth the Final Terms. The Designated Representative is authorized to execute the Bond Purchase -11- siaeoaa�3 Agreement on behalf of the City, so long as the terms provided therein are consistent with the terms of this ordinance. (c) Preparntion, Execution and Delivery of'tlte Bonds. The Bonds will be prepared at City expense and will be delivered to the Purchaser in accordance with the Bond Purchase Agreement, together with the approving legal opinion of Bond Counsel regarding the Bonds. Section 15. Official Statement. (a) Preliminary O�ciul Statement Deemed Final. The Designated Representative shall review and, if acceptable to him or her, approve the preliminary Official Statement prepared in connection with each sale of a Series of the Bonds to the public or through a Purchaser as a placement agent. For the sole purpose of the Purchaser's compliance with paragraph (b)(1) of Rule 15c2-12, if applicable, the Designated Representative is authorized to deem that preliminary Official Statement final as of its date, except for the omission of information permitted to be omitted by Rule 15c2-12. The City approves the distribution to potential purchasers of the Bonds of a preliminary Official Statement that has been approved by the Designated Representative and been deemed final, if applicable, in accordance with this subsection. (b) Appr-oval of Final Official State»ier:t. The City approves the preparation of a final Official Statement for each Series of the Bonds to be sold to the public in the form of the preliminary Official Statement that has been approved and deemed final in accordance with subsection(a), with such modifications and amendments as the Designated Representative deems necessary or desirable, and further authorizes the Designated Representative to execute and deliver such final Official Statement to the Purchaser if required under Rule 15c2-12. The City authorizes and approves the distribution by the Purchaser of the final Official Statement so executed and delivered to purchasers and potential purchasers of a Series of the Bonds. ' Section 16. Continuing Disclosure. To meet the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to a participating underwriter for a Series of the Bonds, the City makes the following written Undertaking for the benefit of Beneficial Owners of the Bonds. (a) Undertakin� to Provide Annual Financial Information and Notice of Listed Events. The City undertakes to provide or cause to be provided, either directly or through a designated agent, to the MSRB, in an electronic format as prescribed by the MSRB, accompanied by identifying information as prescribed by the MSRB: (1) Annual financial information and operating data of the type included in the final official statement for the Bonds and described in paragraph (b) ("annual financial information"); (2) Timely notice (not in excess of 10 business days after the occurrence of the event) of the occurrence of any of the following events with respect to the Bonds: (A)principal and interest payment delinquencies; (B) non-payment related defaults, if material; (C)unscheduled draws on debt service reserves reflecting financial difficulties; (D) unscheduled draws on credit enhancements reflecting financial difficulties; (E) substitution of credit or liquidity providers, or their failure to perform; (F) adverse tax opinions, the issuance by the -12- 5148UAa7 i Internal Revenue Service of proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form 5701 — TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (G) modifications to rights of holders of the Bonds, if material; (H) bond calls (other than scheduled mandatory redemptions of Term Bonds), if material, and tender offers; (I) defeasances; (J) release, substitution, or sale of property securing repayment of the Bonds, if material; (K) rating changes; (L) bankruptcy, insolvency, receivership or similar event of the City, as such "Bankruptcy Events" are defined in Rule 15c2-12; (M) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (N) appointment of a successor or additional trustee or the change of name of a trustee, if material. (3) Timely notice of a failure by the City to provide required annual financial information on or before the date specified in paragraph (b). (b) Tvpe of Annual Financial Information Undertaken to be Provided. The annual financial information that the City undertakes to provide in paragraph (a): (1) Shall consist of(A) annual financial statements prepared (except as noted in the financial statements) in accordance with applicable generally accepted accounting principles applicable to local governmental units of the State such as the City, as such principles may be changed from time to time, which statements may be unaudited, provided, that if and when audited financial statements are prepared and available they will be provided; (B)principal amount of general obligation bonds outstanding at the end of the applicable fiscal year; (C) assessed valuation for that fiscal year; and (D) excess and regular property tax levy amounts and rates for that fiscal year; (2) Shall be provided not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as required or permitted by State law, commencing with the City's fiscal year ending December 31, 2015; and (3) May be provided in a single or multiple documents, and may be incorporated by specific reference to documents available to the public on the Internet website of the MSRB or filed with the SEC. (c) Amendment of Undertakin�. This Undertaking is subject to amendment after the primary offering of the Bonds without the consent of any holder of any Bond, or of any broker, dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB, under the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief statement of the reasons for the amendment. If the amendment changes the type of annual financial information to be provided, the annual financial information containing the amended financial information will include a narrative explanation of the effect of that change on the type of information to be provided. -13- siasoaa�� (d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the holder of each Bond, and shall not inure to the benefit of or create any rights in any other person. (e) Termination of Undertakin�. The City's obligations under this Undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under this Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely notice of such termination to the MSRB. (fl Remedv for Failure to Complv with Undertaking. As soon as practicable after the City learns of any failure to comply with this Undertaking, the City will proceed with due diligence to cause such noncompliance to be corrected. No failure by the City or other obligated person to comply with this Undertaking shall constitute a default in respect of the Bonds. The sole remedy of any holder of a Bond shall be to take action to compel the City or other obligated person to comply with this Undertaking, including seeking an order of specific performance from an appropriate court. (g) Desi�nation of Official Responsible to Administer Undertaking. The Director of Financial Services or his or her designee is the person designated, in accordance with the Bond Ordinance, to carry out the Undertaking in accordance with Rule 15c2-12, including, without limitation, the following actions: (1) Preparing and filing the annual financial information undertaken to be provided; (2) Determining whether any event specified in paragraph (a) has occurred, assessing its materiality, where necessary, with respect to the Bonds, and preparing and disseminating any required notice of its occurrence; (3) Determining whether any person other than the City is an "obligated person" within the meaning of Rule 15c2-12 with respect to the Bonds, and obtaining from such person an undertaking to provide any annual financial information and notice of listed events for that person required under Rule 15c2-12; (4) Selecting, engaging and compensating designated agents and consultants, including financial advisors and legal counsel, to assist and advise the City in carrying out this Undertaking; and (5) Effecting any necessary amendment of this Undertaking. Section 17. Supplemental and Amendatory Ordinances. The City may supplement or amend this ordinance for any one or more of the following purposes without the consent of any Owners of the Bonds: (a) To add covenants and agreements that do not materially adversely affect the interests of Owners, or to surrender any right or power reserved to or conferred upon the City. -14- siaaosa�a (b) To cure any ambiguities, or to cure, correct or supplement any defective provision contained in this ordinance in a manner that does not materially adversely affect the interest of the Beneficial Owners of the Bonds. Section 18. General Authorization and Ratification. The Designated Representative, Director of Financial Services and other appropriate officers of the City are severally authorized to take such actions and to execute such documents as in their judgment may be necessary or desirable to carry out the transactions contemplated in connection with this ordinance, and to do everything necessary for the prompt delivery of each Series of the Bonds to the Purchaser thereof and for the proper application, use and investment of the proceeds of the Bonds. All actions taken prior to the effective date of this ordinance in furtherance of the purposes described in this ordinance and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects. Section 19. Severabilitv. The provisions of this ordinance are declared to be separate and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any person or circumstance, such offending provision shall, if feasible, be deemed to be modified to be within the limits of enforceability or validity. However, if the offending provision cannot be so modified, it shall be null and void with respect to the particular person or circumstance, and all other provisions of this ordinance in all other respects, and the offending provision with respect to all other persons and all other circumstances, shall remain valid and enforceable. Section 20. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and ten days following its publication as required by law. PASSED by the City Council the 2"d day of December, 2015 GREG WHEELER, Council President Approved this day of , 20l 5 PATTY LENT, Mayor ATTEST: APPROVED AS TO FORM: SHANNON L. CORIN, City Clerk ROGER A. LUBOVICH, City Attorney -15- s iasosa�3 CERTIFICA'd'ION I, the undersigned, City Clerk of the City of Bremerton, Washington (the "City"), hereby certify as follows: 1. The attached copy of Ordinance No. 5291 (the "Ordinance") is a full, true and correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held at the regular meeting place thereof on December 2, 2015, as that ordinance appears on the minute book of the City. 2. The Ordinance will be in full force and effect ten days after publication in the City's official newspaper, which publication date is , 2015. 3. A quorum of the members of the City Council was present throughout the meeting and a majority of the members voted in the proper manner for the passage of the Ordinance. Dated: December , 2015. CITY OF BREMERTON, WASHINGTON SHANNON L. CORIN, City Clerk siasusa�? . . b � � MOODY'S INVESTORS SERVICE RATING PRESENTATION December 2"d, 2015 @ 1 PM PST $4,500,000 (Preliminary) UTGO Bonds, 2015 DIAIDAVIDSON Dave Trageser Managing Director (206) 903-8699 dtrageser@dadco.com Moody's Investors Service Date: December 2, 2015 @ 1 PM Pacific PARTICIPANTS Honorab/e Patty Lent Mayor City of Bremerton Ms. CathyJohnson Director of Financial Services City of Bremerton Mr. Mike Riley . Assistant Finance Director City of Bremerton Mr. Sam Fe/dman Rating Analyst Moody's Investors Service Mr. Travis George Rating Analyst Moody's Investors Service Mr. David Trageser Managing Director D.A. Davidson &Co. TABLE OF CONTENTS Pa�e 1. Introduction ........................................................................................... 1 2. The Bonds .............................................................................................. 2 3. The City .................................................................................................. 3 4. City Debt and Taxes................................................................................ 6 5. City Financial Operations ....................................................................... 9 6. The Economy........................................................................................ 13 7. Conclusion............................................................................................ 21 3 1. Introduction The City of Bremerton's 2015 UTGO Bonds present the opportunity to review the City's credit since the last general obligation review in April 2013. Noteworthy are the following characteristics: • Resilient local economy, with access to diverse employment opportunities in Puget Sound; • Growing population; • Resumed assessed value growth and growing new construction; • Diverse tax base, with the top 10 taxpayers comprising only 6.0%of assessed value; • Consistently balanced financial operations, resulting in stable reserves at increased levels since 2012.The City estimates an ending 2015 General Fund balance of$4.6 million (13.2%of expenditures); • Revenue diversity, with sources other than the regular property tax levy, including a utility tax, a PILOT on city-owned utilities, a business and occupation tax, a retail sales tax, and a real estate excise tax, among others; • Strong financial management practices, with formal reserve policies and a six-year capital plan updated annually; • 87%of unlimited general obligation debt and 63%of unlimited and limited general obligation debt scheduled to be repaid in 10 years; • Moderate direct debt and no further near-term general obligation debt plans; • Ongoing economic development and downtown revitalization projects in recent years; and • Economic stability provided by the US Navy base. 1 2. The Bonds The City of Bremerton plans to sell $4,500,000(preliminary)of Unlimited Tax General Obligation Bonds, 2015. BOND SALE PLAN 1. Rating desired by December 10tn 2. Bond sale scheduled for December 16tn 3. Closing anticipated December 30tn BOND STRUCTURE AND PURPOSE The proceeds of the Bonds will be used to provide funds to purchase fire apparatus and fire and life safety equipment, to remodel fire facilities and to pay costs of issuance and sale the Bonds FUTURE FINANCING In the next two years, the City anticipates issuing approximately $11.5 million (approximately $8.2 million in 2016) in Water and Sewer System Revenue Bonds to fund Water and Sewer System capital programs and is expecting to need and additional $20 million in Water and Sewer Revenue Bonds by 2018, as recommended by the City's Utility Rate Study. Included in the planned debt, is approximately $3.3 million in loans through the Washington State Drinking Water State Revolving Fund ("DWSRF"). These bonds and loans would be paid from revenues of the water, sewer and stormwater systems. The full amount of the anticipated DWSRF loans is expected to be drawn over the next 12 months. The City does not expect to issue any additional general obligation debt, voted or non-voted, over the next 12 months. . 2 3. The City LOCATION The City was incorporated on October 14, 1901 and operates under laws of the State applicable to a home-rule charter city with a Council/Mayor form of government. The City is a general purpose government which provides police, fire, water, wastewater, street maintenance, parks and recreation, planning and zoning, municipal court and general governmental services to its citizens. The City encompasses 26.9 square miles and has a 2015 estimated population of 39,410. DabobBay �� Irblemla � � m Foulsba Bangor � � S�puamish , � IGnpsgate Seal'•Rnck Trident Bese �ndia Q Frm Hill � Keyp�an ' r Bdnncn � Port��che�d � � KitklB� , Redmond• � 8rownswlle Bainbrf�ge � L•ake , ( .. �e+and �. washin'on '�'�i Seabeck SiMerdale GI►nerton . �+e� Semm j Meadowae�e Bainbridge Gyde Hi Dyes Inlet Island .� Erlands Tracy[on Medina B811evu6 f �. p�j.p�p Cry'stel Seattie., Shertdan ' West Crodby leke�� Spnngs � Sem Himzviitc � I B'remerton M 8^dF Eastqate� ,� • , `� Manohester F , v � � ° �, �ort . t �Orchard � Newcastfe , � , �'�, Pa od � UVliite . . , • �f Sunnyslope Fe�i„,e,a�e The Clty Center � � ' • Be�net 9horewood ��Renton '4 16 ' ��ukwlla Ren�� Hlghlands ' ' Wild�ood O � Burie��.a� • seitelr ' � Vashon Sea�Tec: p t � � Olenvrooa I� Olaua Vashon Normsndy Rose Poirit O e i fsfand Park � i� t ` �9urtey'. �, Des Moinea �C ;an� • wa�'�i � $� ` �Auyn.oreyzv�ew �Hentl�� Quanermas�e� woocm�F , Kent Covington� 8� Sunr�se Herba Beecii. � .�r Veughn. 18 �ch _ � Grepewew Roseasle GI Harbor � Lakeland N� M� 6� F@der81 Nortti �a Hill � �Mondate � R�s�on - �y:,�,AAuburn, _:� elkere Cese Inlet # Commencemerrt % � na{ng Herron H�e ,' �y-. �LskelBnd Gerr Infet ` � i.eke ay • Ta00fl1S `�, ' Soulh r Fox lsland �`_,,,,�, � � � 3 Cinr CouNa� The City Council (the "Council") is currently comprised of seven members representing seven districts, elected to four-year terms by voters of the City. The Council members are part-time elected officials who exercise the legislative powers of the City and determine matters of policy. The Mayor, a full-time elected official, serves as the chief executive officer of the City. The department directors are appointed by the Mayor with Council approval. . . . Greg Wheeler President 5 12/31/19 Eric Younger . Vice President 5 12/31/17 Leslie Daugs Council Member 3 12/31/19 Dino Davis Council Member 1 12/31/17 Jerry McDonald Council Member 1 12/31/17 Roy Runyon Council Member 6 12/31/151 Pat Sullivan Council Member <1 12/31/17 1 Mr.Runyon was not re-elected on November 3,2015 and his seat will be filled by Mr. Richard Huddy commencing January 1,2016. CITY ADMINISTRATION Mayor. Ms. Patty Lent was elected to a second four-year term as the City's Mayor, which began in 2010. Ms. Lent's professional experience includes owning and operating a travel consulting business, as well as management positions in sales, mortgage banking, public relations and education. She has been active in the community having served on a number of boards, and as a Kitsap County Commissioner. Director of Financial Services. Prior to being appointed the City's Director of Financial Services May 1, 2014, Ms. Cathy Johnson served as Assistant Director of Financial Services/Finance Officer for 10 years. Her career at the City spans 35 years. During her career, she has been involved in several local, state and national government accounting and finance organizations and has participated on panels to recommend updates to state accounting and reporting guidance to local governments. CITY EMPLOYMENT As of November 1, 2015, the City had 312 full-time and 4.95 part-time equivalent employees, and 5.95 temporary and seasonal employees. 4 EMPLOYEE RELATIONS State law requires municipalities to bargain with formally recognized collective bargaining units. The City enters into written bargaining agreements with each of the bargaining organizations. Such agreements contain provisions on such matters as salaries, vacation, sick leave, medical and dental insurance,working conditions, and grievance procedures. The following table shows the bargaining organizations, number of employees participating and the expiration date of current contracts with the bargaining units representing City employees. . . . . � . . . . . Teamsters Local 589 138 12/31/15 Patrolman's Association 52 12/31/15 Police Management Association 4 ; 12/31/15 International Association of Firefighters Local 437 55 12/31/15 Total 249 Negotiations have started with the International Association of Firefighters Local 437, but not with any of the other three bargaining units. It is the City's goal to attempt to stagger the expiration dates of the contracts so that only one or two expire in any one year. . Source: The City 5 4. City Debt and Taxes CURRENT GENERAL OBLIGATION DEBT RATIO51 The City's direct debt overall debt ratios are moderate. Assessed Valuation Per Capita.................................................................. $59,363 Direct Debt Per Capita .............................................................................. $958 Direct and Overlapping Debt Per Capita................................................... $1,403 Direct Debt to Assessed Valuation............................................................ 1.61% Direct and Overlapping Debt to Assessed Valuation................................ 2.36% 1 Preliminary,subject to change. Source:Kitsap County Assessor's and Treasurer's Offices. Scheduled Unlimited Tax General Obligation Bond Service The following schedule shows debt service requirements for the City's outstanding unlimited tax general obligation bonds and a preliminary schedule for the Bonds. 87%of the City's UTGO debt will be repaid within 10 years. Outstanding Unlimited Tax General Obligation Bond Debt Service Requirements • . :. . :. . . � �-. . � . , 2016 $570,000 $290,937 $410,000 $118,695 $1,389,632 2017 580,000 276,688 410,000 121,592 1,388,280 2018 600,000 259,287 415,000 112,940 1,387,227 2019 615,000 241,288 425,000 103,063 1,384,351 2020 630,000 222,837 440,000 92,099 1,384,936 2021 655,000 200,788 450,OU0 79,690 1,385,478 2022 680,000 176,225 465,000 65,921 1,387,146 2023 710,000 149,025 480,000 50,761 1,389,786 2024 735,000 120,625 495,000 34,730 1,385,355 2025 765,000 91,225 510,000 17,850 1,384,075 2026 795,000 60,625 855,625 2027 820,000 32,800 852,800 Total $8,155,000 $2,122,350 $4,500,000 $797,341 $15,574,691 1 Preliminary,subject to change; interest rates are estimated. 6 TAX COLLECTIONS Set forth in the following table are the total property tax collections for the City in tax collection years 2011 through 2015, and the percentage collected as of October 31, 2015. � . .- . . � . - . . . :. . � . . - . . - . . • . � � 20151 $6,938,389 $1,177,797 $902,769 $9,018,954 88.4% 88.4% 2014 6,767,477 1,146,966 897,991 8,812,434 97.3 99.0 2013 6,615,695 1,197,673 833,249 8,646,616 96.2 99.4 2012 6,526,052 1,275,098 779,198 8,580,348 96.1 99.7 2011 6,408,288 1,375,442 779,689 8,563,419 96.7 99.8 1 Full year of tax collections not yet available. Source: Kitsap County Treasurer's Office. MAIOR TAXPAYERS The following table provides the ten largest taxpayers within the City on the basis of their 2015 tax collection year assessed valuation. . . � , . � � : . . � - . � - . o . . . , ;. . . 1. Puget Sound Energy Gas& Electric Utility $41,647,182 1.8% 2. Qwest Corporation Telecommunications 14,895,493 0.6 3. Kitsap Credit Union Credit Union 12,637,320 0.5 4. R& L Property Mgmt. LLC HOA Condo Management 12,148,370 0.5 5. Health Care REIT Inc. Real Estate Investment Trust 11,432,875 0.5 6. Heartland Automobile Prop Automotive Service 10,215,910 0.4 7. HCK2 LLC Fairfield Inn &Suites Mgmt. 10,101,170 0.4 8. Winco Foods LLC Grocer 9,971,540 0.4 9. EP Holdings LLC Real Estate Management 9,564,430 0.4 10. MG Pine Ridge Apartments qpartments 8,732,390 0.4 $141,346,680 6.0% Source: Kitsap County Assessor's Office. 7 OTHER C1TY TAXES In addition to its regular property tax levy, the City also collects various other taxes, including a utility tax, a business and occupation tax, a retail sales tax (also known as a "local sales and use tax"), and a real estate excise tax, among others. The first three taxes described below are deposited to the General Fund for general City purposes.The PILOT was previously used for capital expenditures, but as of November 2015, will be used for general City purposes. The following table lists the collection of certain taxes received by the City in years 2011 through November 1, 2015. • . • • • . YTD 20154 $3,698,847 $2,635,269 $6,349,331 $5,336,3723 2014 4,332,386 2,664,795 7,355,104 4,117,538 2013 4,415,712 2,609,466 6,952,785 4,131,785 2012 4,407,308 2,649,004 6,956,360 4,117,514 2011 4,512,488 2,719,689 6,680,315 3,695,745 1 Excludes payments in lieu of taxes received from City utilities (PILOT). (See "— City Response to Changing Economic Conditions"above for a discussion of PILOT.) ZSales and Use Taxes related to automobile sales has historically accounted for approximately 33%of the annual amount of Sales and Use Taxes received by the City. 3 Prior to 2015, these amounts were not being fully allocated to the General Fund. On November 18, 2015, the Council adopted an ordinance to combine these additional taxes to City owned utilities as a utility tax and to resume allocation of the full amount to the General Fund commencing in fiscal year 2015. °As of November 1,2015. Source: The City's Comprehensive Annual Financial Reports for years 2011-2014 and unaudited figures for 2015. . 8 5. City Financial Operations The following shows the City's statement of revenues and expenditures for the General Fund for 2010 through 2014 and preliminary 2015 results. � . -. � . -. � . -. � . -. � . -. � � � � � � � � FUND BALANCE,JAN. 1 $1,957,307 $4,432,4191 $3,407,446 $4,602,670 $4,869,288 $4,796,119 REVENUES Taxes $21,840,756 $21,914,658 $22,034,371 $21,923,587 $22,474,238 $28,282,292Z Licenses& Permits 903,624 1,034,546 867,468 992,460 1,025,164 1,087,539 Intergovernmental 2,598,670 1,846,513 1,259,048 897,937 974,294 1,597,824 Charges for Services 3,880,424 4,380,740 6,166,734 2,819,369 2,775,977 2,848,247 Fines and Forfeits 1,218,281 1,228,148 1,214,619 1,041,637 923,186 1,005,247 Other Revenue 730 105 408,653 451 212 270,062 265,832 242,080 TOTAL REVENUES $31,171,860 $30,813,258 $31,993,452 $27,945,052 $28,438,691 $35,063,229 TOTAL RESOURCES $33,129,167 $35,245,677 $35,400,898 $32,547,722 $33,307,979 $39,859,348 EXPENDITURES General Government $6,516,256 $7,028,234 $5,890,386 $4,531,162 $4,468,793 $5,183,157 Public Safety 21,910,061 21,571,528 20,890,868 21,105,050 22,175,166 23,112,367 Utilities& Environment 219,431 219,631 219,560 28„166 23,165 26,850 Transportation 339,655 393,713 1,943,232 496,195 531,924 1,098,623 Economic Environment 1,252,781 1,317,305 1,161,787 1,214,182 1,406,815 1,614,506 Mental& Physical Health 75,126 75,573 69,963 73,543 73,642 74,039 Culture& Recreation 2,827,649 3,892,599 3,989,361 3,670,021 3,802,306 4,004,311 Debt Service 419,281 411,375 206,591 688 35,636 15,573 CapitalOutlay 150,885 86,232 131,725 156,257 52,611 15,250 Intergovernmental Payments 0 42,203 0 0 0 0 TOTAL EXPENDITURES $33,711,125 $35,038,393 $34,503,473 $31,275,267 $32,570,058 $35,144,676 DCCESS OF TOTAL RESOURCES OVER/(UNDER) EXPENDITURES ($581,958) $207,284 $897,425 $1,272,455 $737,921 $4,714,672 NETTOTAL OTHER SOURCES(USES) $3,528,639 $3,200,162 $3,705,245 $3,596,830 $4,034,335 (84,200)Z Prior Period Adjustments 103,197 0 � 0 0 23,863 0 FUND BALANCE, DECEMBER 31 $3,049,878 $3,407,4461 $4,602,670 $4,869,288 $4,796,119 $4,630,4723 1 Beginning in 2011,the City combined its Contingency Reserve and Conference Center Funds with the General for reporting purposes per GASB Statement 54 requirements. z Beginning in 2015 the Utility Taxes on the City's own utilities are reported as tax revenue instead of other sources. 3The ending fund balance is preliminary and subject to change. 9 CITY RESPONSE TO CHANGING ECONOMIC CONDITIONS • Since 2008,the City has continued to respond to the changing economic conditions experienced by all municipalities by taking steps to reduce expenditures including: reducing and deferring staffing additions, implementing unpaid furlough days, implementing a voluntary early employment separation program, layoffs, reducing operational spending,deferring equipment reserve payments and reducing overall spending. • The City resumed equipment reserve payments in fiscal year 2015. • The City implemented a payments in lieu of taxes received from City owned utilities(the "PILOT")in the amount of 6.0%on its utilities' revenues beginning in 2010,and increased the general operating levy and EMS levy by 1.Oh for 2010. In the 2012 Budget,the City further increased the PILOT on its wastewater and stormwater utilities by 4.5%. � The City continues to enact its full 1%increase authority for its general operating tax levy and EMS levy each budget year. • The City estimates its year-end 2015 General Fund balance to be$4,630,472. This amount includes the projected year-end Contingency Reserve Fund balance of$730,840.The aggregate reserve is anticipated to be 13.2%of annual operating expenses at the end of 2015. 10 GENERAL FUND ASSETS,LIABILITIES AND FUND BALANCE • The following table presents General Fund Assets, Liabiliti�es, Deferred Inflow of Resources and Fund Balance for the fiscal year ended December 31, 2014. . � • - . � - .- � � . � . � � . � Assets Cash and Equivalents . $2,089,617 Investments 2,798,632 Net Receivables 3,798,094 Due from Other Funds 512,840 Due from Other Governments 36,606 Inventories 20,060 Total Assets $9,255,849 Liabilities , Accounts Payable $723,160 Due to Other Funds 832,522 Employee Wages Payable . 934,418 Other Current Liabilities 93,748 Unearned Revenue 1,862,382 Total Liabilities $4,446,230 ; Deferred Inflow of Resources Unavailable revenues- property taxes $13,500 Total Deferred Inflows of Resources $13,500 Fund Balances: Nonspendable $20,060 Restricted for 50,179 Unassigned 4,725,880 Total Fund Balance $4,796,119 Total Liabilities, Deferred Inflow of Resources and Fund Balances $9,255,84J Source:The City's 2014 Comprehensive Annual Financial Report. 11 HISTORICAL FUND BALANCES . The City has maintained general fund balances in excess of its formal target of 8.5°/a of expenditures throughout the economic downturn. City of Bremerton Ending Genera!Fund Balance zo.o� is.o� 16.0% 14.0% - I 12.0% �; 10.0% � ; _ i. 8.09�0 ' , � �; 6.Ogo �: `; " ': �' i'; ; 4.040 ` ` � ' i; f j �, 4 !� �.� � � � i i �; j: 0.0% 2030 2011 2012 2013 2014 2015 Actual Actual Actual Actual Unaudited Preliminary ■%of E�enditures FINANCIAL POLICIES The City has a formal reserve policy to maintain reserves at 8.5% of expenditures. The City further strives to maintain a Contingency Reserve Fund equal to $0.375 per $1,000 of assessed value of City property as a provision for unforeseen events or emergencies. Since the City drew down the Contingency Fund in 2011, it has made significant progress in its 10-year plan to rebuild this reserve, ending at an estimated $730,840 in 2015, compared to the target of $882,954.The City plans to continue rebuilding the fund by$50,000 or more each year. . . . -. . . � . � � � � � � � Year-end Fund Balancel $1,013,245 $117,0921 $234,192 $464,496 $677,340 1 Drawdown was due to a loan settlement with the County and Kitsap County Consolidated Housing Authority. 12 6. The Economy The City is located on the Kitsap Peninsula, facing Puget Sound, approximately 15 miles west of the City of Seattle by ferry and 35 miles north of the City of Tacoma. As the largest city in the County, Bremerton had a 2015 estimated population of 39,410, it serves as the urban center for the Bremerton-Silverdale Metropolitan Statistical Area ("MSA"). For over a century, the City has been home to Puget Sound Naval Shipyard, which continues to service U.S. Navy ships, employing over 9,000 civilians �- - -�-- ----4- :.�,�� '�� ' and nearly 6,000 active duty military personnel. Other � major employers in the City include State agencies, �, , :. - - . '_. local school districts, Olympic College, Harrison .-r , Y'::�" �- ;�' .,,; � Medical Center, The Naval Hospital Bremerton and retail outlets. Over the past several years, the City's downtown core has � undergone some significant revitalization projects, including a new Conference Center, parking garages, two hotels, three condominium complexes, a 10-screen multiplex cinema, a new and � i ° expanded marina, Harborside Park and Plaza, a ferry terminal traffic � " tunnel as well as a new Government Center. .4��„��. 13 Kitsap County Overview The Department of Defense installations in the County have a significant impact on the County's economy. Naval Base Kitsap also includes Trident Base Bangor and Keyport. U.S. Naval installations in the County employ over 30,000 civilians and military personnel. Major contractor support for the Navy includes BAE Systems, AMSEC, - Lockheed Martin and Raytheon Systems. The Kitsap Mall, not located in the City, is the largest retail shopping area in the County with approximately 700,000 square feet of retail space. POPULATION TREIVDS Historical population trends are presented below for the City, County and the State. . . . - . . . . 2015 39,410 258,200 7,061,410 2014 38,180 255,900 6,968,170 2013 37,850 254,000 6,882,400 2012 39,650 254,500 6,817,770 2011 38,790 253,900 6,767,900 2010 37,729 251,133 6,724,540 Source: 2010 U.S. Census and Washington State Office of Financial Management for inter-census estimates as of each April 1. 14 CITY ASSESSED VALUE The City's assessed value has had two years of growth, following six years of decline, and preliminary 2016 AV is at 80.7%of the 2008 peak. ' - � ' - . . , . . . 2016* 2,493,939,905 6.6% 27,257,141 1.2% 2015 2,339,489,959 2.8% 20,142,057 0.9% 2014 2,276,559,237 -4.2% 13,801,597 0.6%' 2013 2,376,003,205 -6.0% 21,703,970 0.9% 2012 2,526,962,311 -7.2% 16,014,893 0.6% 2011 2,723,051,039 -5.2% 27,720,577 1.0% 2010 2,871,753,552 -6.2% 33,064,203 1.1% 2009 3,060,607,905 -0.9% 55,284,569 1.8% 2008 3,089,867,821 15.7% 89,410,952 3.3% 2007 2,669,516,232 -- 51,875,217 -- Source: Kitsap CountyAssessor's office. City of�remerton Assessed Vtilue 3,500,000,000 �_..._.....: 3,000,000,000 z,sflo,000,�o - ; i ` .., 2,000.000.�0 ; ` ; t, ;. t � 1,5fl0.000,000 5 f r ; F� � 1��,�� . i S JVOs V1N�1/U0 i 1 . ; i 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 15 MAIOR EMPLOYERS The following table lists the 2014 major employers in the County. . . . . . . . . . . : � . Naval Base—Kitsap Military 30,7841 Harrison Hospital Healthcare 2,442 Washington State Government Government 1,746 Central Kitsap School District Education 1,469 Olympic Community College Higher Education 1,206 South Kitsap School District Education 1,176 Kitsap County Government 1,126 North Kitsap School District Education 844 Port Madison Enterprises Suquamish Tribal Agency 752 Bremerton School District Education 663 1Total of all military bases in Kitsap County and includes military and civilian employees. Source: 2014 Kitsap County Comprehensive Annual Financial Report; Kitsap Regional Economic Deve�opment Alliance. HISTORICAL TAXABLE RETAIL SALES The following table lists the taxable retail sales within the City and County since 2010. . 20151 i $402,675,933 $1,797,082,077 2014 ; 772,430,417 3,502,047,373 2013 736,559,997 I 3,319,688,198 2012 730,724,329 ; 3,140,630,944 � 2011 ! 686,384,409 3,043,381,557 2010 � 656,649,777 � 3,032,889,563 1 Through the first two quarters only. Source: Washington State Department of Revenue. 16 Examples of newly-constructed housing currently available within the City are shown below. . . I �� n� � �== a��.-; ❑L�❑ ' ' � _,-p� - - - �-J -��- _ � I ,�� i��i' � .- � y.�, � I • � . lif-" i � � -:[' I I " 'y ' ,,..-: _ 1 c ��' . -- $249,950 $301,400 _ ;� —--- ��.. �-� - -----�-�..- _ . __ �. - � -� s f `'— � .� � ..<t { -��i �0°�ID' :� �` ' � ! � � � ■ � ;�'� , €�_- � ��_ '1� - �_-� --�— �a�� ' °'� I= �I � � � �= - -.�: -- -�= P, '.� __ � �, � --------�; �; ��y l -- ,.�...:�::...- ' r � � - :":;,�_: �� ' �f;• � B0.7 1 • x• $349,950 $650,000 According to Zillow, the median home value in Bremerton is $218,900. Bremerton home values have gone up 8.9% over the past year, and Zillow predicts they will rise 4.2% within the next year. ; . _, ..�.__. .----._.._.., . . _ _ - . Bremerton Market Overview i ZillowMomevaluc •i Allhomes t-y� 5-yr nnax �-�-- ---�---- �--- ------�! ----�--------- Dme cfirough Oa 37.2015 _ .. . .. .. . . _ . .. . _. . . ;218,900 zFnn on zota —eremerton sz2EK Current Fore�st OQ 4.296 tyrfarecase QfOct3t.2DtE) . f259K NO dete R�edlen L•sung prtoe ;208,800 Med�an sale pnce S233K 5207K S782K 2006 2007 2008 20pg 2010 2011 2012 2013 2014 2015 2016 17 ECONOMIC DEVELOPMENTS IN THE CITY AND REGION New Multifamily Development Sound West Group started construction on its new, $15 million, Spyglass Hill multifamily development in Bremerton in mid-2015. The complex � will consist of seven 2-story , - — - - - - - townhomes and a five-floor - , apartment building with 80 , •• - upscale units. It will be t' �YW•., - ,�.;,• ,� � °b�p�, I.. -; � .� g � _.M .. 'PI�� 95,700 suqre feet with a 85- � � .. ,4 stall parking garage. - _ "' � ';� ,,�� ;� Apartments will range from - 800 to 1,300 square feet. Rent will range from $900 to $1,800 per month. Residents will have access to a gym and view deck with fireplace. Construction is expected to be complete in early 2016. Downtown Bremerton Park Avenue Plaza Apartment Project Developer Lorax Partners of /� Seattle, developed the � � � , Harborside Complex in � � �' f r�. downtown Bremerton and : t'�� " r , ��E c� - -� '�r-,;. t he new 1 0-screen, sta dium- ��fr�� f �� -- r ,�� r,.., : style SEEFiIm Cinema and a ,, <<�� - , j sandwich shop, which both '� � ,�, � ��.�l�l!'� � ; .�� ; . -c.;:--- ��.-. _ r � ,t'r o ened in downtown - �. -� -- � - _ p •�.�. -�/.�' �a.. -'./ . :, , — �\ ' _, �.__,. __�. Bremerton in 2012. Their -. ��, . � current project is a housing project added to the cinema complex. Pursuant to an Air Rights Easement granted by the City of Bremerton in May 2014, 606 Lorax LLC began construction in late 2014 on 'The 606", a $9 million, 71-unit apartment complex, called the Park Avenue Plaza Project in the airspace above the parking garage on Burwell. 18 Additional Downtown Apartment Projects • A 104-unit project called Evergreen Pointe has passed EyERGREEN POINTE Pour houses have been demolished at Evergreen-Rotary Park to permitting and some demolition has occurred. mareWayfo�ao��ea�a��a,��,e��mP�e�. _ _ r_'_.�_� -,i ..._...� __ . _ ,- �--;�=,i xai��n.. BIHMERTON � I � Evergrecn�, • The Olympic Gateway Towers project is permitted and is ; - ;� ,, � °ar" � 1� : �n� poised to bring hundreds more units downtown. •_ _=`•-=�'�""'•�,'„1,_ �' °��°�d( + � ,, : � . �i � --_y aWrunems ' 'um 1 � ••, , . , ,I - Developers spent $200,000 to bury the powerlines that "��._��_.__L��h' �"��`�!!_.._:` '� 'i- , _._�...: - � ..�:..� .,� _..._...; .._.. . ,;--,�:-� I L�'�.....ION�� :: � �� i� '�� g�A� would abut the towers, but no construction timeline is ;==-i--;-�- -�� -:-.;�_� ;: !i ;; ,� �r ,r ;� �; .: �� --� � ;�_....._ ,.... . �-�-�� . .. �_ _._._..=w.�... �-�-�---�..._. ... saerns[.swnm available. • In August 2015, Lorax Partners also proposed a $5 million upscale apartment building in downtown Bremerton.The building would replace row housing with 26 upscale units. • Up the street, developer Dale Sperling will replace a tavern and a neighboring upholstery business with a 4-story,48-unit apartment complex called The Monterey Apartments.Sperling's company, One Build, prefabricates an entire modular structure in China, then ships it to the location and connects them like giant Legos. The developer hops to begin construction in early 2016. East Bremerton Condominium Project A 4-story, 16-unit _ .. �' • '�- waterfront condominium , . � :;. complex is planned for ` � � � a:�� '•��.. }" �.- � .,. '•? "#�. Bremerton's east side, and t � � � ' ; . y-"� �� will include public beach access.The $2.5 million project is slated by iCap Pacific Homes to begin construction in 2015 once environmental and shoreline reviews are conducted, and can be completed in 6 to 9 months. . 19 Olympic College Project In Fall of 2015, Olympic College began construction on a new multidisciplinary academic building called College Instruction Center on the main campus at the north end of Bremerton near the U.S. Naval base. The , :�; � :..� total project is estimated ___ � �;-.r.�— = -„_.:, to cost $50 million. The �� ~�-,-�� -, - � d; � �1� - } building has 3 stories and - �� r,.�^'' I i �� ' 70,000 square feet, will -...,. .,,� "-�� : ... ��-••� - « _. , ,. house a 276-seat theater - + ` - �:� .;.� and instructional space for art, music and health occupations. Site work will include a new city street, bus turn-around, pedestrian promenade and parking. The team will seek a LEED gold rating. Olympic College educates more than 13,000 students a year. Harrison Medical Center Expanding CHI Franciscan Health (formerly Harrison Medical Center) will be moving Kitsap County's regional hospital from Bremerton to Silverdale. Construction began in fall 2015 on a $240 million regional hospital with 240 beds and 400,000 square feet on 32-acre property in Silverdale. A new medical office building and cancer center are also being considered with the expansion. The site is already home to a 24-hours emergency department, a natal care unit, and orthopedic hospital. Approximately 750 full-time and 500 part-time staff inembers will combine with the existing 100 fu11-time and 245 part-time staff inembers currently working at Silverdale. The project is expected to open in 2019.The Silverdale location is a 16-minute drive from the Bremerton location. In Bremerton, there will be an ambulatory center that will provide primary care, a diagnostic lab and a primary-care residency program. A new or remodeled Bremerton hospital campus would likely be located closer to downtown Bremerton. 20 7. Conclusion , The City continues to practice responsible financial and debt management stewardship of its resources. Among its credit strengths are the following: CREDIT HIGHLIGHTS INCLUDE: • Access to broad and diverse employment opportunities in Puget Sound; • Growing population; • Diverse tax base that resumed growth in 2015 and 2016; � Stronger reserve levels since 2012, and an estimated ending 2015 unrestricted fund balance (including Contingency Reserves)of$4.6 million (13.2%of expenditures); • Revenue diversity,with sources other than the regular property tax levy, including a utility tax, a PtLOT on city-owned utilities, a business and occupation tax, a retail sales tax, and a real estate excise tax, among others; • Strong financial management practices, with formal reserve policies and a six-year capital plan updated annually; • 87%of unlimited general obligation debt and 63%of unlimited and limited general obligation debt scheduled to be repaid in 10 years; and • Modest direct debt and no further near-term general obligation debt plans. The City respectfully requests consideration for an affirmation of its Aa3 UTGO bond rating. 21 AGENDA BILL � CITY OF BREMERTON CITY COUNCIL SUBJECT: Public Hearing on Ordinance No. Study Session Date: Budget Workshops 5292 approving and adopting the 2016 fiscal COUNCIL MEETING Date: December 2, 2015 budget Department: Financial Services Presenter: Cathy Johnson Phone: 360-473-5296 SUMMARY: The proposed budget was presented to Council and the public on October 21, 2015. Budget workshops were held on October 26, 27 and November 2, 2015. A public hearing was held on November 18, 2015. The attached ordinance represents the final proposed 2016 Fiscal Budget. If adopted, this ordinance would become effective January 1, 2016. ATTACHMENTS: Ordinance No. 5292 FISCAL IMPACTS (Include Budgeted Amount): Total general fund expenditures, without ending fund balance, is $39,097,075. With ending fund balance, total general fund expenditures are $42,882,497. Total expenditures city wide, without ending fund balance, is $115,562,099. With ending fund balance, total expenditures city wide are $152,931,712. STUDY SESSION AGENDA: ❑ No Presentation px Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑x Public Hearing RECOMMENDED MOTION: Move to approve Ordinance No. 5292 approving and adopting the budget for the City of Bremerton for the fiscal year 2016, and appropriating the amounts set forth in each fund in accordance with RCW 35.33.075. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/07/15 ORDINANCE NO. 5292 AN ORDINANCE of the City Council of the City of Bremerton, Washington, approving and adopting the budget for the City of Bremerton for the fiscal year 2016, and appropriating the amounts set forth in each fund in accordance with RCW 35.33.075. WHEREAS, State law, Chapter 35.33 RCW requires the City to adopt an annual budget and provides procedures for the filing of estimates, a preliminary budget, deliberations, public hearings, and final fixing of the budget; and WHEREAS, a preliminary budget for the fiscal year 2016 has been prepared and filed in the Office of the City Clerk for the City of Bremerton; public hearings have been held for the purposes of fixing the final City Budget; and the City Council has deliberated and has made adjustments and changes deemed necessary and proper;NOW THEREFORE, THE CITY COUNC[L OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. That the 20165 Annual Budget for the C�ty of Bremerton, Washington, on file in the office of the City Clerk, covering the period from January l, 2016, through December 31, 2016, with regular revenues and unencumbered fund balances of $152,931,712 and expenditures and ending fund balances of $152,931,712 is hereby approved and adopted, and the respective amounts provided for in said budget for the several funds of the City of Bremerton are hereby fixed and adopted as follows: � General Fund(001) Ciry Council $ 338,056 Executive 363,928 Financial Services 1,470,646 Legal , 1,054,664 Human Resources 689,128 Community Development 1,594,379 Municipal Court 1,388,410 City Auditor 81,540 Law Enforcement 10,339,493 Fire/Emergency Medical 8,697,629 Police/Fire Pension 1,976,400 General Facilities 1,029,994 • 1 2016 Budget General Parks 2,716,241 Engineering 2,735,888 Non-Departmental 4,620,679 Ending Fund Balance 3,785,422 Total General Fund $ 42,882,497 Street(102) 3,247,506 Contingency Reserve(103) 784,340 Lodging Tax(104) 819,960 Parking System(105) 2,087,675 Community Development Block Grant(106) 718,086 Abatement Revolving(108) 363,180 Police Special Projects(110) 552,763 Public Access Television(113) 972,387 Gift&Donations Fund(114) 56,184 Trial Improvement(116) 112,295 One Percent For Arts(117) 60,426 Conference Center Operating(120) 1,605,361 2010 LTGO(203) 694,810 2010 UTGO/LTGO- B(204) 1,180,166 Government Center LTGO(205 j 427,143 2015 Public Safety Bond(206) 530,000 General Government Capital Improvement(308) 1,334,823 � Park Facilities Construction(310) 56,592 Transportation Capital Projects(31�) 3,100,195 Fire Public Safety Capital (316) 4,430,000 Washington Avenue Connector(334) 561,727 Water Utility(401) 15,079,237 Water Capital(404) 10,228,019 Wastewater Utility(451) 18,842,116 Wastewater Capital (454) 10,725,833 Stormwater Utility(481) 3,285,273 Stormwater Capital (484) 3,324,905 Utility Debt Reserve(499) 2,388,355 Gold Mountain Golf Complex(407) 4,238,746 Risk Management(503) 3,706,763 Self Ins Health& Welfare Reserve(504) 5,112,900 Employment Security(506) 589,821 Accumulated Leave Liability(507) 679,278 Equipment Rental Reserve—Operations&Maintenance(509) 1,601,842 Equipment Rental Reserve—Equipment Reserves(510) 5,110,375 Information Services(511) 1,440,133 Total AI{Funds $ 152,931,712 2 2016 Budget That the totals for the funds noted in Section 1 above and as set forth in the official "City of Bremerton 2016 Annual Budget" adopted herein, are hereby appropriated for the fiscal year 2016. SECTION2. Effective January l, 2016, the "management, professional, confidential & fiduciary" pay plans shall not receive a cost of living adjustment over the 2015 pay rates. SECTION 3. Effective January l, 2016, the base salary of the Mayor shall be $107,000 which represents no change over the 2015 base salary. SECTION4. Nothing contained herein shall be construed to require the City of Bremerton or its officers to fill any vacancy in any of the positions established by this ordinance resulting from the discharge, resignation or retirement of such employee. Nothing herein contained shall require the City of Bremerton or its officers to pay the maximum amount budgeted for any position shown therein. SECTION 5. Severabilitv. If any one or more sections, subsections, or sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Ordinance and the same shall remain in full force and effect. SECTION 6. Eff'ective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the day of , 2015 GREG WHEELER, Council President Approved this day of , 2015 PATTY LENT, Mayor 3 2016 Budget ATTEST: APPROVED AS TO FORM: SHANNON CORIN, City Clerk ROGER A. LUBOVICH, City Attorney PUBLISHED the day of , 2015 EFFECTIVE the day of , 2015 ORDINANCE NO. 5292 4 2016 Budget .._ , ._.. - — --.- - ----- �� ' ,y�.�,, �`�►� �r�i 4�� , . �'`�'` � - a.'�' `�`''' � �..�"� � --a. ��'��t . �.:�'�-,�.�� _ ,, . � „ ,. �' ':- x , _,� � �*�'�" ��' �. p - r� �,rFr�-..�.±_ l�;� . ;- .� .� � _ - - � � ,�t � ,� f +'. ^,� i -:s-<<l "� - - /'��, � - - - ., , s",:�el� `,-ti''• ''� � '� ,�a` F:' r' _�� . , ' , +r i; �.. _, �' .,��'. ` � . . V n .�� . . . .. �� .,- ., .a .~ • - J •� ��. ._ . . �� r+! . . _. - e . . .�� , _ . . .�._ _.,l _ . .- _ . r.,am�r.___ '-r. � :.... .___ .� '„�. � _ -�. . ... " '._ ... 1„c �i - ...- -. .. _ .:-`. . i . .: � .. , i . � ., . .� . � .: . � .. . t. �s� ;7, �_�,�e�: ,Y'i �F- =-� .- t�:J'`— -� n ��T'�' �F ,� ��,.��'- �_-►��•,_�.� ,�,�-��.}.:. ---��_'� .��3 � ,ry,��4.. . �i' ""'y li � � ��. � y ' � ` J , . 6 � �+�1�� z� -_ _ _ __ x - - —- - �. _. - - _ __ �: - : � � ,��r �� n ='� �, ,_ �-r -- ` --- ,. . .�__�. . __ – �_ -- _ , � �, �-_ _. �--a_ ____- . ._. : _ __� . _. . ,.,_..._� � r. ,.�,,---�__ - ._ - - . _ . _ - -- ; _ _ � 1 � 1 1 1 ' 1 i � 1 • . � � � � . , � - � . . � . I ( , I- — -- I ( I � � ::: + F 11 S ; I u , ; , . � , : . .- . � ; _ _. ___. .._ . _______. _ _ .; �_.___._______: ; Revenue � • No change to utility or parking � i � Transfers Fund Balance � +aXes 5% 2% � l, � � Other Taxes � � 14% � 28% � . . • • � • Utility rates and general facility j Fines& � f , F°�a ts License& � fees increased to support O&M f Permits ; � 190 ; and Capital programs ! Charges for Intergovernmental ! � � Service 6yo � ` 43�� -_ .��-�__��__�_- _ ___-_�_�__-.� �_.�_�� New ca ital and debt service __---------------- r---.. _____ _ _._____ . __._ _.._ .____ ----.._ �___._�. _.. . p � ; � Expenditure ; funds to ca out Fire Safe ; �'Y tY ' Transfers ; CapitalOutlay 5y, excess levy � 17% � ; 1 ; i Personnel + � � Debt 33� ' • • • • • ! Service : Utility service fees ad�usted to ; '� ; reflect cost to provide service a � ; ; � Supplies&Services ; 4 38% f �------..._..----._._._�..._.. ..---._........_.__—,.----.____.._� 'r----------- i I , � � •• i I, r F n � �� ene a u � : � � ____ ; � ��Q� o0 � oi;.5nv�;°1T�,� L"'-'_._...""'_'"'"'_""-_J ._.�... ---.___._.....__........ .._, .._... _..._ ....----..._..-- -- . ._�_._.-� i Revenue ; • Property Tax levied at 1 % � Other Transfers � ; Fines&Forfi ts ly, � over 2015 2� ��° Fund Balance ! � i � 2% � � Charges for Servicf � � 13�° ` ; • Utility Tax on city owned i Intergovernment� � � � � � 5� - � utilities dedicated to General ILicens �nd, Permits Taxes � 3% 74°y I -------..__.._.............--�---_'.-- -:----:-:---__'=:.--::-_�---- . . . i-- ---- - ----- - --...-- --- - - "i � - Limite ee increases � Expenditure ; ± Debt�S�rvice Transfers i • Bud et uses $708�000 0� � 3� g � � fund balance. Endin Fund ; � g j Supplies& i � Services Balance 9.7% of i 26% �i ' � expenditures ; ' ; ; iPersonnei ; 71% i I - � ��---�- -------------- — -----...._..__..—_� �-----..._._..---- -; � i � , i . � ,_ I onc uslon � �� s � � � • � � I �"___—__'____'—'_'.I Ordinance No. 5292 2 016 C it o f Bremerton Budget Y All Funds �----1 __ -----�Bua et __-------,—� --�--- � � g �_.__..----- ----- -� Personnel $ 38,689,930 Supplies and Services 43,896,301 Debt Service 7,995,303 Capital Outlay 19,681,565 Transfers 5,299,000 Ending Fund Balance 37,369,613 Total $ 152,931,712 From: Gary Nystul Sent: Wednesday, December 02, 2015 9:42 AM To: Pat Sullivan; Leslie Daugs;Jerry McDonald; Greg Wheeler; Dino Davis; Roy Runyon; Eric Younger Cc: City Council Subject: FW: Budget Following is a confirmation by the Budget Analyst that reducing the auditor personnel budget by$98,000 also reduced general fund revenue for overhead by$36,000 for a net general fund savings of$62,000. Proposed 2016: $39,097,075 general fund budget $707,880 use of reserves $62,000 savings A perspective of the relative vatue for your consideration. Gary Nystul From: Caroline Tompson Sent: Thursday, November 19, 2015 10:04 AM To: Gary Nystul Subject: RE: Budget Hi Gary, Yes that is basically correct with the Auditor. $98,000 was reduced from personnel and then the overhead cost allocation was recalculated to reflect the lower cost. The net impact to the General Fund was $36,113 (from overhead). The funds that pay for the overhead cost allocation had a reduction in their supplies and services budgets. The other item that changed was that all of the Utility Tax (formerly utility tax and PILOT) would go into the General Fund and then the General Fund would support the Street Fund with a higher transfer amount. Also, the amount that was dedicated to the new Transportation Improvement Fund was redirected back to the General Fund. Tfie revised budget, that reflects all the changes, has been updated on the City website. , If you want me to send you the line item detail for both revenue and expenditures,just let me know. Caroline From: Gary Nystul Sent:Thursday, November 19, 2015 9:39 AM To: Caroline Tompson<Caroline.Tompson ci.bremerton.wa.us> Subject: Budget Caroline I have been out of state for two weeks and am not current on changes to the proposed 2016 budget. 1 _ � As I understand in general terms,the city auditor expenditure budget was reduced $98,000 and general fund revenue reduced by$36,000 making a net reduction to the general fund of$62,000 on a General Fund budget of about $38,000,000. Is these basically correct? Have there been any other reductions in expenditure budgets in the general fund by the city council? I apologize for interrupting your work for my trivia questions. Thanks. Gary Gary W. Nystul CPA CFE City Auditor City of Bremerton 360.473.5369 z MOTION. I move to amend the proposed budget by restoring the City Auditor's budget by increasing anticipated revenue by$36,000 and expenditures by$98,000 for a net cost of$62,000. aS �,e''' ,� b� _ -- - - --- - =-_---- ---- _ _ -- ------- e _ _�,.� -._..�._.�. Revenue The accepted practice of indirect cost allocation charges funds, other than the General fund, for services performed by the finance department, city attorney, mayor, council, city auditor, and etc. These costs are allocated to the water, wastewater, storm water and other funds based on an approved formula. When the auditor's expenditure budget is reduced by$98,000, the General Fund revenue is also reduced by$36,000. This is why the net cost reduction to the General Fund is only $62,000. Control Retaliation Political Less than '/z% of General Fund ... ��s DRAFT 11/5/15 GENERAL FUND ! i � - � -------- — -� ----- � .- - --- ..— —— - . —..-- — --...._ ` - -- -- ---. _ --- -- —------+ � . � � �: —. � ---,-- -�- -- -- _...-- r- -- --� - i I ; T--- - - I-- - --- - - - --- - ------ --._ ._. -- - - . - --�--- -- - -. ��E� r_--___-- � � ---- --- i �_ , - --- --- -- -- --a-- -- - i - ._ __ � --- -- -- --- -- --- -r ------ -- - ,� -- �--— -- I � I , ��: �Year Adopted Budget Change Amended Change�Final Budge�Adopted-Finall Actual Not receive � Percent �I � :; � � � , -- — —..__...------ -� — — ----— -- -----� - --.....— _ .—.. — — - -- --— 2011� 33,602,358 321,140 33,923,498� 203,0001 34 126,498 524,140 33 723 411 403,087 1.19% �; --�---, -- --..—...�-- — -- — ----------._ �..— — --...—.. '- -' ---- -- , 2012; _ ___35,374,162_ 207,138 35,581 300� 0�35,581,300 207,138 35,171,6021 _409,69� 1.15% — ' -- — --—-- ' --- ---— — --- — ;2013� _ 34,059,507 77,020 34, , , 136 527 44 871 34 181 398� 121,891 33 991 025I 190,373 0.56% - ----- —'-- ---- '--' — '-.� _�_.. --- �------ --.-..—-. ,, 12014� 34,311,740, 80,927� 34,392,667 611,304 35,003,971 692,231 34,702,432 301,539 _ _0.88% �'; -- �—...—...—.... --. _ — � __�. �— — - 2015i 504, 1,251,185 37,587,689 � r � y� � --- - — --36,336, �; - — — - -------_ _. _ — — -.. — ---- - — ---- - -- -- --- --� . _ _ � , � T_ - -- �. __� . Cio i 6�---3�,�as,�a4— — — .. -----fi--- -- — --- ——� ; �— ------ I_-- --- ;I. - — �._ -- — — -- . ..----- .—-- —--., _ -— —- — _.—_�.__ _. -- ----- ----...�-- —.__ .— .. I '— _ . -- .----- ----- -- -�----- --� _..— ---- ' � -- . � � i ---- —T- �-. —----- � �-CEXPENSE - —---�--� —�-- — -�------- -�---�-----r- — I-- ---�- -- -- �; — �-- ---.—.__..-�----— -- .—..�_---.—�----—-- ----- -- --I-- --� — i-------- � --�------- I ��; --- --�---- - -- -- ----- ---- I - - --� - — _ Year I Adopted Budget� Change Amended Change Final Budget IAdopted-Final' Actual Unspent Unspent% t� 2011 33,531,735 1,184,323 34,716 058 470,200 35,186,258 1 654,523 33 846 307. 1 339 951 3.81% ' -- �-- - ---------— -'-- -- --- — ---- -..�..--- -'---'--- ' �.. ---- 2012 35,382,421 515,178 35,897,599 269,000 36,166,599 784,178 33,971,983� 2,194,616 6.07% �� _ --.. .—...-- --- - ---- - �--- --- -�------ —--� -- ----- ---- - _� 20�13 34,591,096 818,000 35,409,096_ 158,948� 35,568,044 976,948� 33,572 300 1 995 744 5.61°/ �� ------ — , , , _ _..—._—. ° ; _�20141 _ 35,465,445. 173,397 35,638,842_ 804,014 36,442,85 __ 977,411 34,765,645 1,677,211 4.60% ----- _ _ _ � , — --- --—---- �2015~ 37 502 235 1,039,449 38,541,684 � -----� --- ' ' -�----- --- ---�-- -..-_. -.-.- --I- --- - - ------ ; f � �----- _� —� -- �--— , ---__.—...—..---,------ -J------�—----— ----�-- �- � --�-- — � 2016 -----38,664,015 i ----- I _.. _...—. __. � _ _ -------- � -----—-- � �—— __ ----�..... �-- - -- ---- —— — — -- ---._..._—.. __—._ --- Ori inal Bud et� � � Actual , g _— g—�..—_. .. --.._�------ --- -----L--- -- --------- �'.� � Revenue less Exnense Revenue less Exnense � ' ------ ---- - --�-.. _ . --- - - ----�-- .- -- �-. __ -.--- �- - - ��; � 201,1 70,623 I----- ' I � ---- -- - � (122,896) � _. � 2012 ----- (8,259)� .—.. -�---- --. . ..._..---- - . � _ --�— -- — �;: - -�-..—...----�.—...— ---- � ---- �1,199,619 , ; - _.. _._..-• - — - - - --....._ 2013� -- - (531,589)�__ L------ —� I 418,725 - , --- -- - ---- _ -� - — — � ------- i 20141 ----(1,153,705)I -- .� _— _ I j— _ --fi-- (63,213) i '; �0151 (1,165,731 _..—�- - 953 995'- ----. .� ---....—_... —� . --i--r----�--- - —�--. _. �..�_�_-�-- . —_� .—. ..---- — � -..-- - - _ ...— --------�-- ---- , � , � � � � : - --�- - -- - ' - -- �— - - - . .....—----- j� -�-----�- ----- �-._ --- ;----. -�_ _----i.. 2016; (918,291)I � I i � � � i � �'. i': 1 , . � ... '... . .:y.. ..._... . .. . ...:.:wP - " _"" . :-_ .-. . . . '_" ' _ ' _ _ - -----,_-_._... � .-._.�.�.�,�..�.�.,.,��-,.._. = II�l ��d...r-. ----- -----.. .. _ �C�118� ACh131 ��Ct Dtl� 2013 2014 2015 2016 FI'E positioas 214.98 214.88 221.13 22Z.46 �ewesues Ta� �'11�423,588 $?2,470,086 523,147,565 $28,986,308 licx�es&Permite 992,460 1,025,164 1,037��QQ 1,202,600 L�ergovemmc�al $97,937 959,294 2,255,367 1,882,331 Clmrg�ea for Savioea 4,673,758 4,7b4,439 S,S60,392 3�ov�4,951,176 Fi�ca&Forfieita 1,041,637 427,337 979,700 971,500 Od�er Rcvcaue 4,461,645 4,541,111 4,607,265 395,280 I3�bt Prooexds � 0 0 0 0 TotAl 33,991,OZS 34„587,�31 37,587,b89 38,389,193 EapeadMa�s City Conn�ail 337,774 327,218 341,943 338,056 EAcoative 35Q�49 339,669 370,746 363,928 FiBance 1�132,147 1,309,507 I,4b3,184 1,470,646 IY�1 924,G09 993�449 1,Q86�454 1�OS4,664 Human Resatunes 341,176 449,b94 554,930 689,128 Comnmmity Develapim�ent 1,129,179 1,327,521 1,603,225 I,S94,3T9 Mamio�pal Coutt 1�50�004 1,3�9,402 1,439�492 1,388,410 City Auditot 170�49 180,116 178,611 9t�d�° 81,540 Iew EnSorctmcat 9�04,144 9,600,913 10,369�677 10,339,493 F'ue/F��etgency Medical Servie,�s 8,396,093 8,703,899 8,587,754 8,647,629 � Poliae�Fire Peasion 1,966,524 1,g7S.927 2,140�825 1,976,400 Faeilities 8�D6,1b2 846�689 1,145,435 1,OZ9,994 Pazl� 8ti R,e�reation 2,570,130 2,661,331 2,798�002 2,716,241 F�gimuoering 1,86?,976 1,872�95 3�5,229 2,735,888 Noo-Depeitmental 2,915,5�5 2,827,613 3,176.565 4,620,6T9 Tot�l Eipeaditar� 33,567�1 34,765,645 38y541,684 39,097,075 Rcvswe ovci(under)rxpcnditures 433,724 -7�,21d -953,995 C�2� ��1Q7,880 Begnmi.io�g fimd balance d,298,384 4,7'�.�1,108 4,b4S�S94 �,493,302 EndL�4rud 6daece �l,T?A,108 �,6�5,894 53,691,899 $3,78S,4ZZ 43 I