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HomeMy WebLinkAboutOrdinances Book 9, Page 977, No Ordinance NumberPage 977 _I FUNDING ORDINANCE "3 AN ORDINANCE AUTHORIZING 'HE ISSUANC,�, A'D SALE OF FUNDING BONDS OF TITZ CITY OF PADUCAH, KENTUCKY IN THE AGGREGATE P11OUDTT OF ONE HUNDRED AND FIFTY THOUSAND („ 150,000.00) DOLLARS, THE PROCEEDS OF WFICH SHALL BE F USED FOR, TIME PAMMENT ANS LilEDET IPTION OF 1NOTES, JUDG%I'-ZITS AND CLAIUS AGAINST THE CITY OF* PADUCAI{, KENTUCKY, IN A LIIiL AS:iOUN.' NO.; OUT6TANDING VALID OBLIGATIONS OF THE CITY OF PADUC1'H. :'17_EA3, the City of Paducah, during the years 1933, 1934, and 1935, was a city of the second class in -the State of 1entuck-y, situated in :::cCra.cken County, and having a population, according to the census of the United States for the year 1930 of 33,547, and during said years its total assessed property valuation for taxation purposes, was for the year 1933 ;;20,904,985.00, for the year 1934 a 20,012,575.00, and for the year 1935, 17,784,135.00, but that by resolution duly adopted and published, the Board of Equalization of said City for the year 1933 caused to be put into effect a thirty (301;.) per cent reduction on the valuation of the real estate assessment, and which reduction was 6,271,496.00, leaving a balance of net amount of the assessed valuation of the real estate subject to taxation for public purposes for said year of 1933, 14,633,489.00, which when added to the personal property assessment of said City., for said year, amounted to 16,882,559.00, and for the year 1934, the said Poard of Equalization of said City, by resolution duly adopted and published, caused to be put into effect a ten (10;;) per cent reduction amounting to 1,794,579.50, leaving a net balance of the assessment for real estate for said ,year of 1934, 16,151,215.50, :.chic' -i amount added 'to the total valuation of all personal property assessed for taxation for said years makes the total assessed vvluation for said year•;; 18,217,995.50.• During the year 1935, the total valuation and assessments•for taxing purposes was .;17,784,135.00, and the Board of _-.qual- ization did not reduce said assessments by any perc: nta,•e reduction, but certified ti:e some as consisting; of real property assessed at .:15,,.32,790.00 and personal -_property „s..essed at .2,151,345.00, makin,- said total assessment of prope-ty subject to taxation in said City for said yen_-• 1935, ,;17,784,135.00, and, Page 978 ,UIEREA3, the said City of Paducah durin- said three (3) years levied for general purposes e.nd 'to nay the interest on its outstanding bonds and to create a sin.:ink fund as provided by law for the retirement o_' outstanding bonds, a tax rate ill each of said years as follows; For tine year 1933, one & 48/100 (..1.4&') dollars upon each One Hundred (;,100.00) Dollars of assessed valuation of said property so subject to taxation for city purposes, and for the year 1934, One d: 43/100 ('•1.43) Dollars upon each one Hundred (;100.00) Dollars of assessed valuation of said property so subject to taxation for city purposes, and for the year 1935 One & 43/100 (.`1.43) Dollars upon each One Hundred (..100.00) Dollars of assessed valuation of said property so subject to taxation for city _our)oses; and that there was and is included in each ar. all W' said tax levies the . amount required b- lar; to `d: set apart to pay the interest and 'to create a sin':in,- fund necessary to day the bonded indebtedness of said city outst•ndin-, and consistinE- of iI bonds duly authorized by lar'- to be issued by said city, and consistinE- of the total amount of indebtedness against said City, except the indebtedness hereinafter described; and which bonds were all lawfully issued and the proceeds thereof used for the purpose for w`.ich said bonds were so issued, and, ,;TIEREAS, the City of Paduc_- h durin. the year 1933 was governed by an Act of the General Assembly of the Common - Wealth of Kentucky known as Article 13, Chapter 89 of Kentucky Utatutes, and corrvionly known and referred to as Cor'mission Government Charter, and durin'- the year 1934, and 1935 said City of Paducah, has been governed by an Act of the Geue-al Assembly known as Chapter 91 of the Acts of the General Assembly for 1930, and known and referre(f to as the CityP.? anager corm of Government, and, 7'-LREA3, the Board of Commissioners under each of said Charters have the power, authority and ri,7ht, and are charged With the duty of levyinC. all tares, anpropriatin.- ana apportioning all :monies, and incurring; all legal obligations of said City, and that for each of said years, said Board of Commissioners of the City of Paduca' made and spread upon the records of said Board in all respect as required by lar'-, rind approximation and estimate of t',e Anticipate. Revenues for e ach of said years 1 respectively for said City from all known and available sources, and then by Ordinance duly adopted a.•nortioned said anticipated revenues to the various departments and agencies of said City for _Page 979 the purpose of conducting and administering the affairs thereof, and o" its various and sundry agencies; and said apportionments so made did not exceed the amounts of said anticipated revenues for said respective years, and, ,'IEREA3, in anticipation of the collection of said. revenues the voard of Commissioners, because of the necessity for raising funds for meeting the imediate and prese;� ex- . penses of the City, obtained various and sundry loans from various and sundry banks, pledging therefor the full faith and credit of the City and the respective taxes anticipated at the time for the payment of the principal and interest Ilof said loans in all respects as provided by law, but on account of the failure to collect said anticipated income, and the failure to collect said -taxes, there was not suffic- ient amount collected or realized therefrom to Day the necessary operating expenses when added to the amount so borrowed from said banks, and there norr remains unpaid and �owing by reason of said loans and other obligations incurred in the necessary maintaining and operating of the Government of said City Burin,- said period of time, the sum total of One Hundred and Fifty Thousand ('1?150,000.00) Dollars Ifor the payment of which amount there has been a failure , Ilof collection of taxes and of anticipated revenues, and said indebtedness was all legally incurred, a nc incurred for the purpose of paying the necessary operating expenses of the City and its Government during said three (3) years, and, .71211EAS, the tax paying period for said three (3) ye-rs has now past and all taxes and income anticipated have been collected and received that could possibly be collected and received therefroir:, and al_ the taxes for said years have been paid except those that are now delinquent or uncollectable, and all the other anticipated revenue has been collected and received that can be so collected and received, or that may reasonably be expected to be paid for said years, and, WPEREAS, said indebtedness amounting to One Hundred and Fifty Thousand (. 150,000.00) Dollars, is a lemally incurred floatintr indebtedness against the City and for which it is lega ly liable, it is to the interest of said City for the purpose o' maintain.nk its credit and to.make it possible Por it to pay said indebtedness that the same may be fundod n the manner Drovid ,•d Up tLe Constitutio; lr.•. o:' the Page 980 II 7NIEREAS, said indebtedness is now in such foria r-... to require tho pat�.icnt o" interest thereon cit Six (65) per cent per annum, mile by bondin' the same a much loner rate of interest can be obtained, and by reason thereof, the City and its taxpayers can obtain not only a definite extension of time and reasonable terms on which to pay same, but can ob- tain a much lower rate of interest upon said indebtedness, and, ' 7:=E.45, said One Hundred and Fifty Thousand (•'150,000,00) Dollars, plus all of the other indebtedness of the City as aforesaid, is materially less than ten (10) per cent of the valuation of the property in the City as shown by its assessed valuation for taxation purposes for -each of the years aforesaid, and said indebtedness during j all of arid y -ars was less than teri (10°'0) per cent of the i assessed valuation for taxation purposes, including- the floatinf� indebtedness then existing, and during neither of said years was the floating indebtedness equal to ten (10;i) per cent of the assessed valuation of taxable property, and the City has no other available funds with which to pay all or any of said indebtedness of One Hundred and Fifty Thousand 150,000.00) Dollars, and, MTELREAS, the Citizens Saving Bank and the Peoples National ;yank of Paducah, Kentucky have entered into a contract with the City of Paduc di , by which they have agreed and bound themselves to .-urchase said bonds from the City of Paducah at i Par and accrued interest, ane: to bear interest at the rate of three and three-fourths(3-3/4;':) per cent Der annum payable Semi-annually, and to be serial bonds extending over a pericd I of twenty (20).ycarz, NO'a, =REFORE, BE IT CRDRIATLliD BY TP_E BOARD OF CODUVUSSI0N);RS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That said floatingindebtedness of said City to the amount of One Hundred and Fifty Thousand ('150,000.00) Dollars, or so much 'thereof as may be'found by jude-nent of the Court to i jibe a legal obliEation of the city, be funded into an indebted- ness bearing interest at the rate of Three and three-fourths i (3-3/41o) per cent per annum, payable semi-annually, so that the I total indebtedness of the City of Paducah will in nowise be increased, but the proportion provided herein to be fn.nded sl.all IiI Page 981 be made possible 0P payment without materially inte.rferring with the revenues necessary :'o: "lie proper opex•ation`end conduct of the affairs of said City. SECTION 2. That funding bonds of the City of Paducah be issued in the aggregate sum and amount of One I?undred and Fifty Thousand (.;150,000.00) Dollars, or such part thereof as may equal the amount of indebtedness found.by judgment of the Court to be a legal and binding obligation of the City of Paducah, and consisting of a floating indebtedness of said City, and sou; -ht therein to be funded; that said bonds be in the denomination of One Thousand ('1,000.00) each end numbered from 1 to 150, that they bear date of .February 15th, 1936, that the;; bear interest at the rate of Three and three-fourths (3-3/4) per cent per annum, payable semi-annually, both principal and interest bein;- payable at the office of the City Treasurer, in the City of Paducah and State of Kentucky interest payable on the 15th day of February andthe 15th day of !.0 ust of each year, the first'payment of interest being due and payable on the 15th day of August, 1936; :.nd that said bonds mature as follot•Is and not othe:-,,,.rise: 8,000.00 on the 15th day of February in each of the years 1937 to 1939 both inclusive 5,000.00 on the 15th day of ebruary in each of the years 1940'and 1941 8,000..00 on the 15th day of February in each of the years 1942 to 1945'both inclusive ."5,000.00 on the 15th day of February in each of the years 1946 to 1950 both inclusive ?10,000.00 on the'l5th day of February in each of 'the years 1951 to 1955 both inclusive, or so much thereof as may be authorized under the judgment of the Court validating the floating indebtedness of said city, and authorized to be funded under this ordinance 9,000.00 on the 15th day of February, 1956, or so much thereof as mai; be authorized under the jud;mnent of the Court validating the floating• indebtedness of said city, and authorized to be funded under this ordinance. Page 982 That sai6 bonds be substantially in the follvroinrr, form, to -wit: UTTITED STATEE.; OF Ii.iiRICA COI.170N .'EALTTI O---KL'-j,1 hY COUA:TY 07 EcCRACK-iJ CITY OF P.,DUCI:H 3-3/4% FUNDING BOND NO. ";l, 000. MITO'.7 ALL I;iP:AI EY `HEST, 77;ESUITS: That the City of Paducah, ,;cCracken Counts, a municipal corporation of the second'class in the Commonvrealtl: of Kentucky, for value received, hereby acknowledges itself to owe and promise to nay to bearer the sum of, ONE THOUSAND DOLLARS in larcful pioney of t` e United States of Asnerica, on the 15th day oi' February, 19 , Wit-11interest ,hereon at the rate of three & three-fourths 3-3/4;';) per cent per annum, payable semi-annually on the 15t'i days of Februar,�% and Au ust of each year, upon presentation and surrender of the interest coupons hereto attached, as they severally beoome due, at the Office of the Cita ""reasurer, in the City of Paducah and State of =-ertucky. This bond is one of a series of one hundred and fifty bonds, This from One (1) to One Hundred and Fifty (150) inclusive, aggregating One Hundred and Fifty Thousand ; 1effect,00) Dollars in amount, or like denomination, tenor end effect, except as to riaturity, issued for the nur„ose )f fundin•- e like amount of indebtedness of Paducah, .Kentucky, teretofore leC-ally contracted by the said City, pursuant ;o Sec*ions 157 and .158 of the Constitution of Kentucky, and )y virtue of certain_ ordinances and proceed'.n€s duly adopted and had by the Board of Commissioners of the City of Paducrh, 'cCracken County, Kentucky. 11 It is hereby certified and recited that all acts, conditions and things require-- by Constitution and Statutes the 'toof i:entucky to be done, exist; happen and be performed precedent is havenhappened andC in the tlbeen ance of perfiormedoin,reXular andedueve eformd nan manner, as required b7 lav;; that the indebtedness evidenced hereby together roti: all ot',er indebtedness outstanding against the cit;, does not exceed :Dy constitutional or statutory limitation of indebtedness or texrtion; thrt due provision hss been made for the levy and collection of in annual ad valore:~ tax, sufficient it an101:nt to nay the interest and to create a sin:-inr- fund for the p87.mient of the principal as they severally riature'; and that the full credit, faith, taxing• power and resources of the said City of Paducah are here';: irrevocobl7- nled,¢ed for the prompt Payment of,ti�e interest ant principal of this bond. nd is in the name oflthe oholder sondthe booksect to goftthetCityon sTrea urerlo l' said Cit y, such registration to be evidenced by notation of said City auditor on the back hereof, and after such reCistration no transfer hereof, except upon such books cnd similarlr!Ioted hereon, shall valid: unless tearer. the last registration shall have been to Rer-istretlon hero:, shall not ffect the negotiability of the coupons attached, which shall continue net-ot.iable by delivery merely, Page 983 IN 1iIT11ESS ';.THEREOF, -the City of Paducah has caused this bond to be signed by its 1:Iayor, Countersigned by its Treasurer, attested by its City Clerk, the corporate scal of the City to be affixed, and the coupons to be signed With the facsir,ilc siEnatures of officers, as of the 15th day of February, 1936. I AT'T'EST; City C erc C0u 0 I.l ayor Treasurer On the 15th day of February (August) 19 , the City of Padu<eh, Kentucky, will na,, to bearer Dollars in lawful money of the United States of America, at the office of the City `.reasurer, in the city of Paducah and the State of Kentucky, being six.months' interest then due on its Fundinf.• Bond, dated February 15th, 1936, NO. AT -_E S T : City Clork mayor, City of Paducah, Ky. Treasurer FOR' OF RLGISTRATION Date of Name of Signature of 'ter•istretion 2egistered Caner Citi I.uditor Page 984 ,SECTION 3. That there be and there is hereby levied upon all the taxable property subject t ereto, in the City of Paduc=h, c direct, annual tax sufficient .in amount to pay the interest on said bonds and to create a sinkinE fund to redeem the principal as they Severally mature. SECTION 4. That immediately upon receipt of funds by the Treasurer of the City of Paducah, accruin, from the issuance of the bonds herein authorized to be executed and sold, she will forthwith pay, cancel and hold for nauCht, all of the notes, ,claims and debts and judgments and demands apainst the City of Paducah to the amount of said bonds, with the accrued interest paid to the city as the purchase price Thereof, and consisting of the floatin<r indebtedness of said City in whatever form the same may then be evidended, or she will so pay sue-. amount as is realized from the bonds issued under this ordinance. 3ECTIG1,? 5. Said bonds herein provided for shall ,e issued and >old only to the amouni of the floating- indebtedness of the City )fPaducah which may be, by judgment of the Court, found to be a .egal liability against said City, and consisting of a floating .ndebtedness, and authorized by such judgment to be funded under his ordinance, and should said indebtedness be found to be less han One Hundred and Fifty Thousand (; 150,000.00 ) Dollars, then he amount of bonds aut orized herein shall be reduced to an mount so found to be the level floating indebtedness of said 1 ity, and the schedule of bonds hereinbefore listed shall be orrespondinrl- reduced, by takinc therefrom the amount of bonds o the amount of one (1) bond each, comrtencing with the la at aturity. 3ECg7 ON 6. The Board of Commissioners havin; heretofore entered into a contract with the Citizens Savin, i�ank inI aduca h and the Peoples lcational 'ank of laducah, for the sale of.' rtid funding )onds to s}id Banks, pursuant to their offer to gurehase said i i bonds, :'ic'. was made on the 3rd day of February, 1936, and the s, -id proposition was thereupon accented by the Doard of Commis- sioners at a Price of ?ar and accrued interest, andthe payment 'age 495 by the seller of the expenses incioent to the preparation of the bonds and the approval o_" same by legal opinion fron Chapman and Cutler, Attorneys,of Chidao, Illinois, and upon the same being authorized by a judgment of the Court of Appeals of Iientucky. Said proposal having in all respects been accepted by the parties, same are adopted and confirmed hereby and the bonds hereby authorized to be issued, shall upon their execution and on or before the 1st bay of search 1936, be delivered to the purchasers upon the pay6ent of the purchase price aforesaid. SECTIO'' 7. This ordinance shall take effect and be it full force ten (10) days after its adoption. o Tleyor Introduced on the 10th. day of February, 1936. Passed by the Board of Commiss=ioners, February, 17th,1936- Recorded by Rudy Stev. rt, Citi* Clerk, February, 17th,1936.