HomeMy WebLinkAboutOrdinances Book 9, Page 595, No Ordinance NumberPage 595
AN ORDINANCE authorizing and
9roviding for the issuance of
2,400,000 Q per cent water
works bonds of the City of
Paducah, Kentucky, under the
Provisions of Chapter 133 of
the Acts of the General Assembly
of Kentucky, 1926, as amended by
Chapter 92 of the Acts of the
General Assembly of Kentucky,
1930, for the purpose of defraying
the cost of purchasing a water-
works for said City and the con-
struction of extensions and
improvements thereto, prescribing
the form of said bonds and provid-
ing for the collection and
segregation and distribution of
the revenues of such waterworks
for the purpose of safeguarding,
protecting and paying said bonds.
WHEREAS, it has become necessary and is deemed advisable that
the City of Paducah, Kentucky, acquire the presently privately owned
waterworks in said City, make provision for the extension and improvemer
thereof so as to provide an adequate supply of water for said City
and its inhabitants at reasonable rates, and to assure said City and its
inhabitants against the contingencies of increased rates for water
service; and
WHEFEAS, pursuant to the recapture clause in the franchise
for the operation of said presently privately owned waterworks, the
terms and conditions upon which said waterworks can be and is to be
acquired by said City have been determined; and
WHEREAS, under the provisions of Chapter 133 ofl the Acts of
the General Assembly of Kentucky, 1926, as amended by Chapter 92 of the
Acts of the General Assembly of Kentucky, 1930, said City is authorized
to issue bonds for the purpose of purchasing said presently privately
owned waterworks and making extensions and improvements thereto;
NOW, THEREFORE, Be It Ordained by the Board of Commissioners
of the City of Paducah, Kentucky, as follows;
Section 1. That for the purpose of defraying the cost of
I
acquiring the presently privately owned waterworks in said City and
all appurtenances thereto, and for the purpose of constructing
extensions and improvements to said waterworks so acquired, there
shall be issued the bonds of said City to be knovm as Waterworks Bonds,
in the principal amount of Two Million Four Hundred Thousand Dollars
I
($204000000), which bonds shall bear date of October 1, 1930, be of the
denomination of One Thousand Dollars (61,000) each, numbered con-
secutively from 1 to 2400 inclusive, bearing interest at the rate of
four and one-half (4-1/2) per cent per annum, payable semi-annually
on April 1 and October 1 of each year and maturing in numerical order
as follows;
t,
Page 596
October 1,1931 $4,000
October 1,1932 4,000
�. October 1,1933 4,000
October 1,1934 8,000
October 101935 10,000
October 1,1936 12,000
October 1,1937 13,000
October 1,1938 15,000
October 1,1939 16,000
October 1,1940 17,000
October 1,1941 19;000
October 1,1942 20;000
October 1;1943 21,000
October 1;1944 24,000
October 1,1945 26;000
October 1,1946 30,000
October 1,1947 33;000
October 1,1 948 36;000
October 1;1949 41,000
October 1;1950 44;000
October 1,1951 49,000
October 1;1952 54;000
October 1;1953 59,000
October 1;1954 65,000
October 1;1955 70;000
October 1,1956 74;000
October 1,1957 79,000
October 1;1958 83,000
October 1;1959 88,000
October 1,1960 93,000
October 1,1961 98,000
October 1,1962 105,000
October 1,.1963 110,000
October 1,1964 117,000
October 1,1965 123,000
October 1;1966 131,000
October 1;1967 138,000
October 1,1968 146,000
October 1,1969 156,000
October 1,1970 165,000
Said bonds shall be signed by the Mayor and sealed with the
corporate seal of said City and attested by the City Clerk, and
the interest coupons attached to said coupons shall be executed
with the facsimile signatures of said Mayor and said City Clerk,
and said officials by the execution of said bonds shall adopt as
and for their own proper signatures their respective facsimile
signatures on said coupons. All of said bonds, together with the
interest thereon, shall be payable only out of The Water !"forks Bond
and Interest Redemption Account hereinafter created, and shall be a
valid claim of the holder thereof only against said fund and the
fixed proportion or amount of the revenues of the water plant of
said City of Paducah pledged to such fund.
Section 2, That upon presentation at the office of the City
Treasurer of said City of Paducah of an -y of said bonds, same may
be registered as to principal in the name of the owner on the I
books of the Treasurer, such registration to be noted on the
• reverse side of the bonds by the Treasurer, and thereafter the
principal of such registered bonds shall be payable only to the
registered holder, his legal -"'representatives or assigns. Such
registered bonds shall be transferable to another registered
holder, or back to bearer, only upon presentation to the Treasurer
Page 597
with a legal assignment duly acknowledged or approved. Registration of
any of such bonds shill not affect the negotiability of the coupons
thereto attached but such coupons shall be transferable by delivery
merely.
Section 3. That said bonds and coupons and provisions for
registration shall be in substantially the following form, to -wit:
UNITED STATES OF AMERICA
COMONTIEALTH OF KENTUCKY
COU11T1Y OF MC CRA CKFN
CITY OF PALU CAH
WATER WORKS BOND
No.
81,000
KNOT' ALL MEN BY THESE PRESENTS; That the City of Paducah
in the County of McCracken and Cornmonvealth of Kentucky, for value
received, hereby promise to pay to bearer, or if this bond be registered,
to the registered holder hereof, as hereinafter provided, the sum of
One Thousand Dollars ($1,000) on the First day of October,19_ , and
interest on said sum from the date hereof until paid at the rate of
four and one-half per cent per annum, payable semi-annually on the First
days of April and October in each year, upon presentation and surrender
of the annexed interest coupons as the same severally mature, both
principal and interest being payable in gold coin of the United States
of America of or equal to the present standard of weight and fineness,
at the National City Bank of the City of New York, New York,
This bond is issued by said City pursuant to ordinance duly
enacted for the purpose of defraying the cost of purchasing the water,
works in said City and making extensions and improvements to same, under
and in full compliance with the Constitution and statutes of the
Commonwealth of Ken':ucky, including, _ g, amo ng others, Chapter 13 133 of the
Acts of the General Assembly of Kentucky, 1926 � as amended by Chapter
92 of the Acts of the General Assembly of Kentucky, 1930.
This bond is payable only from a fixed portion and proportion
of the income and revenues to be derived from the operation of the said
water works which has been set aside as a special fund for that purpose
and identified as "The Water Works Bond and Interest Redemption Account
of Paducah, Kentucky" and,this bond does not constitute an indebtedness
of the City of Paducah within the meaning of any constitutional
provisions or limitations. Said City covenants that it will fix such
rates for water service and collect and account for income and revenues
from such water works sufficient to promptly pay the principal and
interest of this bond and ti -e issue of which it forms a part.
Page 598
A statutory mortgage lien, which is hereby recognized as
valid and binding on said water works plant, is created and granted
to and in favor of the holder or holders of this bond and the issue
of which it forms a part, and in favor of the holder or holders
of the coupons attached to said bonds, and said water works plant
shall remnin subject to such statutory mortgage lien until the
payment in full of the principal and interest of this bond and the
issue of which it forms a part.
This bond may be registered in the name of the holder on the
books of said City as to Drincipal only, such registration being
noted hereon by the City Treasurer, after which no transfer shall
be valid unless made on said books and similarly noted on the bond,
but it may be discharged from such registration by being
transferred to bearer, after ;,:hick it shall be transferable by
delivery but it may be again registered as before. The registrat-
ion of this bond as to principal shall not restrain the negotiabilit
of the coupons by delivery merely.
This bond is exempt from taxation in the State of Kentucky.
IT IS I3EREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist, happen and be performed
precedent to and in the issuance of this bond, have existed, have
happened and have been performed in due time, form and manner as
required by law, and that the amount of this bond, together with
all other obligations of said City, does not exceed any limit
prescribed by the Constitution or statutes of the Common,.-.•ealth of
Kentucky, and that a sufficient Dortion and proportion of the
income and revenues of said water works plant has been pledged to
and will be set.aside into said special fund by said City for the
payment of the principal and interest of this bond.
IN WITNESS V!FF.REOF the City of Paducah, in the Commonwealth
of Kentucky, has caused this bond to be signed by its Mayor and its
evrporate seal to be hereunto affixed, attested by the City Clerk,
and the coupons hereto attached to be executed with the facsimile
signatures of said Mayor and said Clerk, which officials by the
execution of this bond do adopt as and for their own proper signatur
their respective facsimile signatures appearing on said coupons,
and this bond to be dated the First day of October,
Attest; pdayor
C yCer
Page 599
(FORM OF COUPON)
No.
On the first day of ,19 , the City of Paducah,
Kentucky, will pay to bearer Do]lars
($ ) in gold coin of the United States of America out of
"The Water Works Bond and Interest Redemption Account of Paducah,
Kentucky," at The National City Bank, of the City of New York, New York,
I
being six months, interest then due on its Water Works Bond, dated
October 1, 1930, No.
Mayor
Uity C er
Date of In Whose Name
Registration Registered _ City Treasurer
Section 4. That upon said City coming into possession of said
water works it shall thereafter be operated by it, for the purposes of
this ordinance, on a fiscal year basis commencing on October 1 of each
year and ending on September 30 of the succeeding year. From and after
the delivery of any bonds issued under the provisions of this ordinance
the income and revenues of said water works plant of the City of
Paducah shall be set aside into a separate and special fund to be used
in maintaining said plant and in payment of the aforesaid bonds, which
revenues shall be apportioned as follows, to -wit:
There shall be and there is hereby created an account to be
known as "The Water Works Bond and Interest Redemption Account of
Paducah, Kentucky," into which there shall be set aside from the income
and revenues of said water works s ch portion thereof as will be .
sufficient to pay the interest and irincipal of the bonds hereby
authorized, and it is hereby determined that the amounts to be so set
aside into said fund shall be as follows:
Page 600
For the year
ending September 30,
1931 - $112;000
1932 - 111;820
1933 - 111;640
1934 - 115;460
1935 - 117;100
1936 - 118,650
1937 - 119;110
1938 - 120;525
1939 - 120;850
1940 - 121;130
1941 - 122;365
1942 - 122;510
1943 - 122;610
1944 - 124;665
1945 - 125;585
1946 - 128;415.
1947 - 130,065
1948 - 131;580
1949 - 1341960
1950 - 136;115
1951 - 1390"135
1952 - 141;930
1953 - 144;500
1954 - 147;845
1955 - 149,920
For the year
ending September 30,
1956 - $150,770
1957 - 152;440
1958 - 152;885
1959 - 154,150
1960 - 155,190
1961 - 156;005
1962 - 158,595
1963 158;870
1964 - 160;920
1965 - 161,655
1966 - 164;120
1967 - 1651225
1968 - 167;015
1969 - 170;445
1970 - 172,425
Until the balance of the bonds not already sold and as
referred to in Section 9 hereof have been is ued, the amounts h=rei
before specified to be paid into said account may be reduced by the
amount of interest and principal of such balance becoming due
during the respective years, which reduced amounts for the
respective years on the basis of paying interest and principal of
the bonds already contracted to be sold are hereby determined to be
as.follows;
For the year
ending September 30,
1931 - $105;690
1932 - 105;555
1933 - 105;420
1934 - 109;285
1935 - 110,970
1936 - 1129565
1937 - 1130070
1938 - 114;530
1939 - 114;900
1940 - 115;225
1941 - 116,505
1942 - 116;695
1943 - 1178840
1944 - 118,895
1945 - 119,860
1946 - 1220'735
1947 - 124j430
1948 - 125,990
Page 601
1949 - 128;41.5
1950 - 129;660
1951 - 132;770
1952 - 135,655
For the year
ending September 30,
1953 - $138;315
1954 - 140,750
1955 - 142.960
1956 143;945
1957 - 1450
750
1958 - 146;330
1959 - 14.6;730
1960 - 147;950
1961 - 148;945
1962 - 150;715
1963 - 151;215
1964 - 152,490
1965 - 153;495
1966 - 155;230
1967 - 155;650
1968 - 157;800
1969 - 160;590
1970 - 161,975
Such payments into said account shall be made in equal semi-
monthly installments on the first and fifteenth of each month, except
that when the first or the fifteenth days of any month shall be a Sunday
or a legal holiday then such payments shall be made on the next
succeeding secular day. Said fund as next hereinbefore provided shall be
used solely and only and is hereby pledged for the purpose of paying the
principal and interest of the bonds herein authorized to be issued.
Eighty-five per cent of the balance of the income and
revenues of said plant shall be set aside and used for the proper
operation and maintenance of said plant, the Board of Commissioners of
the 01ty of Psducah hereby finding and determining that eighty-five per
cent of such balance of the revenues of said plant are necessary for
the groper maintenance thereof but not in excess of the amount required
for said Durposes.
-'" Fifteen per cent of such balance of the income and revenues.
of said plant shall be set aside to the Depreciation Fund and shall be
expended in malting good any depreciation in said water ^,orks plant and
in making any extensions, additions or constructions to the property of
said plant, the Board of Commissioners of the City of Paducah hereby
finding and determining that such proportion of such balance of the
income and revenues of said plant is sufficient for said purposes. Any
accumulations of such Depreciation Fund may be invested as the Board of
Commissioners may designate, and, if invested, the income from the
investments shall be carried in the Depreciation Fund, and said fund
and proceeds thereof shall not be used fnr any purposes other than
as herein provided.
Section 5. Slhile the bonds authorized hereunder or any of them
remain outstanding and unpaid the rates for all services rendered by
the said water works plant of the City of Paducah, or to its citizens,
I corporations or other consumers shall be reasonable and just,
taking into account and consideration the cost and value of said
water works and the cost of maintaining and operating the same and
the proper and. necessary allowances for depreciation thereof a^d
the amounts necessary for the retirement of all bonds and the
accruing interest on all such bonds as may be sold and are unpaid
under the provisions of this ordinance, and there shall be charged
against all users of said water, including the City of Paducah,
such rates and amounts for water service as shall be adequate to
meet the requirements of this and the preceding sections hereof.
Compensation for services rendered to said City shall in like
manner be charged against the City and payment for same from the
corporate funds shall be made monthly into the special fund created
by this ordinance as other income and revenues of said plant and
shall be apportioned to operation and maintenance, depreciation
and bond and interest redemption accounts as such other income and
revenues.
Section 6. The City of Paducah hereby covenants and agrees
with the holder or holders of the bonds herein authorized to be
issued, or any of them, that it will faithfully and punctually
perform all duties with reference to said water viorks required by
the Constitution and laws of the State of Kentucky, including the
making and collecting of reasonable and sufficient rates for
services rendered by said water works plant and will segregate the
revenues of said plant and the application of the respective funds
created by this ordinance; and the City hereby irrevocably covenants,
binds and obligates itself not to sell, lease, mortgage or in any
manner dispose of said water works plant, including any and all
extensions and additions that may be made thereto except the
mortgage as provided in Section 7 hereof until all the bonds herein
authorized to be issued shall have been paid in fall, both principal
and interest, and unless and until provisions shall have been made
for the payment of said bonds and the interest thereon in full,
and the pity further covenants and agrees with the holders of said
bonds to maintain in good condition and continuously operate said
water works plant, and to charge and collect such rates and charges 'I
for the services rendered by said plant so that the gross revenues
of said water works plant will be sufficient at all times to
provide for the payment of the operation and maintenance thereof,
and maintain the Depreciation Fund and the Bond and Interest
Redemption Account as provided herein.
Section 7. That for the further protection of the holders of
the bonds herein authorized to be issued and the coupons thereto
Page 602
mil
Page 603
attached, a statutory mortgage lien upon said water works plant and all
(properties connected therewith and belonging thereto is granted and
ll,
created by Chapter 133 of the Acts of the General Assembly of Kentucky,
11926, as amended by Chapter 92 of the Acts of the General Assembly of
Kentucky, 1930, which said statutory mortgage lien is hereby recognized
and declared to be valid and binding upon the City of Paducah and all the
property constituting the water works of said City, and s',all take effect
immediately upon the delivery of any bonds authorized to be issued under
the provisions of this ordinance. Any holder of said bonds or of any
of the coupons may either at law or in equity, by suit, action, mandamus
or other p-oceedings protect the statutory mortgage lien hereby conferred,.
and may by suit, action, mandamus or other proceedings enforce and
compel performance of all duties required by said Act, including the
making and collecting of sufficient rates and segregation of the income
and revenues and the application thereof.
If there be any default in the payment of the principal and
interest of any of said bonds, then u)on the filing of suit by any
holder of said bonds or of any of the coupons, any court having juris-
diction of the action may appoint a receiver to administer said water
works on behalf of the City ;with power to charge ane collect rates
sufficient to provide for the payment of any bonds or obligations
outstanding against said water works, and for the payment of the
operating exoenses and to apply the income and revenues in conformity
with this ordinance and the provisions of said statute laws of Kentucky
aforesaid.
._ Section 8. The bonds authorized to be issued hereunder and
from time to time outstanding shall not be entitled to priority one over
the other in the application of the revenues of said water works plant,
or with respect to the statutory mortgage lien securing their payment,
regardless of the time or times of their issuance, it being the
intention of the Board of Commissioners that there shall be no priority
among the bonds authorized to be issued under the provisions of this
ordinance, regardless of the fact that they may be issued and sold at
different times.
Section 9. That bonds bearing numbers
1 to 3; inclusive
- - 5 to 7, ' it
9 to 11;
13 to 19;
21 to 29;
31 to 41' "
43 to 54, "
56 to 69, "
71 to 85,'
87 to 102;' "
lO4't6 121.,,
123 to 141,
143 to 163,
164 to 186, "
188 to 192,
Page 604
194 to 222; inclusive
224 to 255; it
. 257 to 311; it
313 to 351; "
354 to 395;
398 to 444;
447 to 498; "
501 to 557;
560 to 621;
625 to 691; "
695 to 765, "
769 to 844; "
848 to 927; "
931 to 1014;
1019 to 1107; "
1112 to 1205; "
1210 to 1?09; "
1315 to 1419; "
1425 to 1535;It
1542 to 1658; "
1565 to 1788; If
1796 to 1925; "
1934 to 2071; it
2080 to 2226; It
2236 to 2390, If
in the aggregate principal amount of Two Million Two Hundred Eighty-
two Thousand Dollars ($2,282,000), hereby authorized, be executed
as herein provided as soon after the adoption of this ordinance
as may be and be thereupon deposited 71ith the City Treasurer
for delivery to C.W.McNear & Company and Walter, Woody &
Heimerdinger pursuant to the agreement entered into under date of
September 12th, 1930, which agreement is in all respects hereby
ratified and confirmed. Such delivery to said purchasers shall be
made simultaneously with the purchase of the presently privately
owned water works as hereinbefore referred to, and the proceeds
derived from the issuance of said bonds shall be applied to that
purpose, and for placing said water works in proper condition for
municipal operation as contemplated by said laws aforesaid.
The balance of the bonds hereby authorized may be issued
and sold from time to time upon order of the Board of Commissioners
and the Droceeds thereof shall be used only to pay any balance of
Purchase of the presently privately owned water works, or for
lextending or improving same.
Any and all accrued interest as may be received from the
sale of any of the bonds of the authorized issue shall be converted
info the Water Works Bond and Interest Redemption Account of
Paducah, Kentucky, as hereinbefore created.
Section 10. The provisions of this ordinance shall
constitute a contract between the City of Paducah and the holders
of the bonds herein authorized to be issued, and no change,
variation, or alteration of any kind of the provisions of this
ordinance shall be made in any manner except as herein provided
until such time as all of said bonds and the interest thereon have
been paid in full.
Page 605
Section 11. If any section, paragraph, clause or provision
of this ordinance shall be held to be invalid, the invalidity of such
section, paragraph, clause or provision shall not affect any of the
remaining provisions of this ordinance.
Section 12. All ordinances, resolutions and -orders or parts
thereof in conflict with the provisions of this ordinance are to the
extent of such conflict hereby repealed.
Section 13. This ordinance shall be in full force and effect
ten days after its passage.
Attest:
LOLEVAIMM
Introduced _:2,2 1930
Passed and approved 9 ,1930
NTayor