HomeMy WebLinkAboutOrdinances Book 9, Page 469, No Ordinance NumberPage 469
FUNDING ORDINANCE #1
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AN OF INANCE AUTHORIZING THE? 18; UAi?CF, AND SI'LF OF FU`IDIVG
BONDS OF THE CITY OF PADUCAH, KENTUCKY, IN THT AGGFT'GATP AMOUNT OF
175,000., THE PFOCFEDS OF W111ICH TO BE USED FOR THE PAY'•°F'NT AND
REDEMPTION OF NOTES, JUDGMFWTS ANP CLAIM,- OP TUT CITY OTS' PA DU('AH,KFNTUCKY,
IN A LIKF A1074T NOW OUTSTANDING VALID OBLIGATIONS OF THF CTTY OF
PADUCAH, KFPTUCKY.
P.iFFFFAS, heretofore, to -reit: between t'e years 1904 and 1929
inclusive, the City of Pad•)cah, McCracken County, Kentucky, a city of
the second class under and by virtue of the Constitution and Statutes of
Kentucky, having, according to the United States Census of 1900 a
population of 19,446, according to the like Census of 191.0 a population
of 22, 7600 and according to the like Census of 1920 a population of
24, 735, and since said last Census to the present year, to -'..:it: 1930,
having had a normal increase in population from year to year, and which
ropulation during the years 1900 to 1930 inclusive has never been less
than 15,000, but has always exceeded that amount, duly authorized by the
electors thereof, issued and has no outstanding 71,147,500. of its bonds,
the proceeds of ahich were employed to build a hospital, a market -house,.
trunk sewers and streets, and to refund other bones likewise authorized
by the electors, the payment- of the principal of ,-,rich could not be met
because of the fniure to Bevy a sufficient tax for that purnose and,
77EPPA.S, during nll of said years, to -wit: 1904 to 1929
Inclusive, the several governing bodies of the s^id city undertook to and
did meet the interest and large nortions of the principal of the
aforesaid bonded indebtedness out of the pl.50 tax levy on each $100.
of property valuation, constitutionally allowed to be imposed under
Section 157 of the Kentucky Constitution, for the purpose of defraying
the general expenses and costs of administration and governance of the
said city without imposing any additional levy to meet the interest and
principal of voted bonds as permitted by Sections 157 and 159 d' the
Kentucky Constitution, and
19iFFEAS, during the years 1904 to 1919 inclusive, the said
city was enabled out of its 71.50 tax levy for general nurposes to pay
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the costs of administering its affairs and meet the interest and
principal of its outstanding bonded debt without the neceeaity of
borrowing money therefor, but in 1920 to 1924 was compelled to make
loans from year to year to meet the deficiencies in its General Fund so
created, but which loans were completely liquidated st the end of the
year 1924, and
WHEREAS, beginning in the year 1925 and terminating with the
year 1929, the General Fund ag^in becoming depleted to the extent of
Pnge 470
,1p175,000., at the rate of approximately $35,000. a year, because of
the payment out of such Fund of the interest and portions of the
principal of the aforesaid bonded indebtedness and,
1711'iFAS, during such years 1925 to 1929 inclusive, in
order to pay deits, claims and judgments existing against t'c:City of
Paducah, it was compelled during such years to borrow money to
liquidate same, and i:!hich loans evidenced by notes, bearing 6p
interest per annum, are now outstanding :in the aggregate amount of
$175,'00., the proportion thereof incurred in any one year, together
with all other expcndituies made in qnv such year, being not in
excess of the revenues provided for such years or ^n y of them, and
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accordingly found and determined to be valid, subsisting and binding
obligations of the City o" Paducah and
"`T-IBFFAS, there are no funds nvailable out of the revenues
accruing to the General Fund for 1930 to liquidate such indebtedness'
without again borrowing money to properly administer the affairs
of the city, and it would be an extreme hardship on the taxpayers
of the city to impose a tax to liquidate the said indebtedness
in any one year and,
7MEREAS, the city is enabled to fund such indebtedness
so that the principal amount thereof may be liquidated in
convenient sums over a series of years, which funded debt will bear
a lower rate of interest than that now being paid by the City on the
said $175,000. outstanding indebtedness, and
191FREAS, the said $175,000. indebteaness (plus all other
indebtedness of the city, namely; $1,147,500, of outstanding bonds
less $149,769.40 in a Sinking Dund applicable to the payment thereof,
thus leaving a net bonded indebtedness of $997,730.60 which added
to $175,000. floating indebtedness aforesaid aggregates a total
indebtedness of $1,172,730.60 which is materially less than 10
per centum of the valuation of the property in the city as assessed
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for taxation in the year 1928, namely; $24,699,175., and in the year
1929 $25,3200250., and during none of the years 1925 to 1929
was the aggregate indebtedness of said city at any time equal to
or in excess or such 10 per centum as in Section 158 of the
Constitution provided, but during all. such years was materially
less than such ten p r centum) may be more economically lignidnted
by funding the same into an obligation, bearing a lo-er rate of
interest, the principal of which may be redeemed from year to year
after the fifth year, in such amounts as will not further impair
the revenues accruing to the General Fund, Novi, Therefore,
BE IT ORDAINED by the Board of CO-missioners of the City
of Paducah, McCracken County, Kentucky;
Page 47M
Section 1. That the said floating indebtedness of $175,000.,
bearing 61,0.' interest per amrmzm, be funded into an indebtedness bearing
interest at the rate of 5Y. per annum, so that the total indebtedness
of the City of Paducah, now within the limits prescribed by the
Constitution and I&ws of Kentucky, will in no wise be increased, but the
proportion herein provided for changed as to its form.
SECTION 2. That the Funding Bonds of the City of Paducah be
issued in the aggregate amount of $175,000.; that they be in the
denomination of $1,000. each; numbered from 1 to 175 inclusive; that
they bear date of February 1, 1930; that they bear interest at the rate
of 5-21% per annum, payable semi-annually, both principal and interest
being ppyable at The Chemical Bank & Trust Comnany, in the City and State
of New York; and that they mature as follows, and-.not:otherwise, to-wit-
$5,000'
on February 1st in each of the years 1935 to 1941 inc.
10,000, on February 1st in each of the years 1942 to 1945 inc.
20,000, on February 1st in each of the years 1946 to 1950 inc.
and that they be substantially in the following form, to -mit:
UNITED STATES OF AITFICA
W11,1011WEALTH OF KENTUCKY
COUNTY OF McCRACKEN
CITY OF PADUCAH
5-1/2% FUNDING BOND
NO.
$1,000.
KNO17 ALL -KEN BY THFSE PRESENTS: That the City of Paducah,
McCracken County, a municipal corporation of the second class in the
Commonwealth of Kentucky, for value received, hereby acknowledges itself
to owe and nromise to pay to bearer the sum of
ONE THOUSAND DOLLARS
in lawful money of the United States of America, on the first day of
February, 19 , with interest thereon at the rate of five and one-half
(5-5%) per cent per annum, payable on the first days of February and Augus
of each ,year, upon presentation and surrender of the interest coupons
hereto attached, as they severally become due, at The Chemical Bank &
Trust Company, in the City and State of New York. ' .
This bond is one of a series of one hundred. and seventy-five
bonds, numbered from One (1) to One Hundred and Seventy-five (175)
inclusive, aggregating One Hundred and Seventy-five Thousand (,f.',175,000.)
Dollars in amount, or like denomination, tenor and effect, except as to
maturity, issued for•the purpose of funding a like amount of indebtedness
of Paducah, Kentucky, heretofore legally contracted by the said city,
pursuant to Sections 157 and 158 of the Constitution of Kentucky, and by
virtue of certain ordinances and proceedings dulry adopted and had by the
Board of Commissioners of the City of Paducah, McCracken County,Kentucky.
It is hereby certified and recited that all acts, conditions and
things required by the Constitution and Statutes of Kentucky to be done,
exist, happen and be performed prededent to and in the issuance of this
bond, exist, have been done, have happened and been performed in regular
and due farm and manner, as required by law; that the indebtedness
created hereby, together with all other indebtedness outstanding
against the city, does not exceed nny constitutional or statutory
limitation cT indebtedness or taxation; that due provision has been made
for the levy and collection of an annual ad valorem tax, sufficient in
amount to pay the interest and to create's sinking fund for the payment
ofthe principal as they severally mature; and that the full credit,
faith, taxing power and resources of the said City of Paducah are hereby
itrevocably pledged for the prompt payment of the interest and principal
of this bond.
This bond is subject to registration as to principal, in the name
of the holder on the books of the Commissioner of Finance of said city,
such registration to be evidenced by notation of said Commissioner of
Finance through the City Auditor on the back hereof, and after such
registration'no transfer hereof, except upon such books end similarly
noted hb reon, shall be valid u~less the last registration shall have been
to bearer. Registration hereof shall not affect the negotiability of
Page 472
the coupons attached, which shall continue negotiable by delivery
merely.
IN WITNESS ?11 RFOF, the City of Paducah has caused this i
bond to be signed by its Mayor, -his fellow members of the Board of
Commissioners of'the City of Paducah, countersigned by the City
Auditor, the corporate seal of the City to be affixed, and the
coupons to be signed with the facsimile signatures of all of the
aforesaid Commissioners .^nd Officers, as of the first day of February;
1930.
Tdayor- Oi1�* —of a�cah j
Comm ss oner
lCountersigned:
omm ssioner
Commissioner
73'Ey—Au or - a uca , Commissioner
KY
C 0 U P 0 N
INo. $27.50
On the first day of February (August) 19 , the city of
Paducah, Kentucky, will pay to bearer
Twenty Seven and 50/100 Dollars
in lawful money of the United States of America, at the Chemical
Bank & Trust Company, in the City and State of New York, being six
months' interest then que on its Funding Bond, dated February 1, 1930,
No.
6Tayor - o
—City f P—Scucah-�
Commiss oner
Comm ss oner
Commissioner
Commissioner
Countersigned:
City Auditor - a uca , Ky
FORM OF REGISTRATION.
Date of Name of Signature of
Registration Registered Owner City Auditor
Section 3. That there be and is hereby levied on all
the taxable property subject thereto, in the City of Paducah, a
direct, annual tax sufficient in amount to pay the interest on said
bonds and to create a sinking fund to redeem the principal as they
severally mature.
8eotion 4. That immediately upon receipt of funds by
the Commissioner of Finance, the Treasurer of the City of Paducah,
that he forthwith pay, cancel and hold for naught 1,175,000. in notes,
claims, debts, judgments, demands mf the City of Paducah, or however
the said floating indebtedness may be evidenced.
Section 5. That the Board ha-ing heretofore carefully
considered the advisability of funding the indebtedness herein,
confirms the sale of the said Funding Bonds to Walter, Woody &
Heimerdinger of Cincinnati, pursuant with their offer of January 8,
Page 473
1930, and the Board's acceptance thereof, at a price of not less than Par
and accrued interest, and the payment by the purchasers of expenses
incident to the preparation of the bond forms, and to the legal
examination of the proceedings.
Section 6. That the public safety reouirina, an emergency
is hereby declared to exist by the unanimous vote of the Board of
Commissioners of the City of Paducah and this ordinance shall take immediate
effect upon its a,'option; and that it be published once after such
adoption in the Sun -Democrat, the official newspaper of general circulat-
ion in the City of Paducah and in McCracken County, selected by the Board
for the publication of its ordinances; and recorded, as required by.lnw.
Signed
vlayor "-
Passed by the Board of Commissioners January 17, 1930
Recorded by Hunt Crossland, Clerk, January 18, 1930