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HomeMy WebLinkAboutOrdinances Book 10, Page 338, No Ordinance NumberPage 338 V AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF FUNDING BONDS OF THE CITY OF PADUCAH, KENTUCKY IN THE AGGREGATE AMOUNT OF SIXTY-FOUR THOUSAND ($64,000.00) DOLLARS, THE PROCEEDS OF WHICH SHALL BE USED FOR THE PAYMENT AND REDEMPTION OF NOTES AGAINST THE CITY OF PADUCAH, KENTUCKY, IN A LIKE AMOUNT NOW OUTSTANDING VALID OBLIGATIONS OF THE CITY DF PADUCAH WHEREAS, the City of Paducah, during tie years 1936, 1937, 1938 and 1939 was a city of the second class in the State of Kentucky, situated in McCracken 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 1936 2,18,089,515.00, for the year 1937 $.17,164,070.00, for the year 1938 $18,342,510.00 and for the year 1939 u17,573,875.00, and WHEREAS, the said City of Paducah during said four (4) years levied for general purposes and to pay the interest on its outstanding bonds and to create a sinking fund as provided by law for the retirement of outstanding bonds, a tax rate in each of said years as follows: For the year 1936, one and 38/100 Dollars upon each One Hundred ($100.00) Dollars of assessed val- uation of said property so subject to taxation for city purposes, and for.the year 1937, One & 38/100 ($1.38) 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 1938 One & 50/100 ($1.50) 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 1939 One & 50/100 0;1.50) Dollars upon each One Hundred ($100.00) Dollars of assessed valuation of said property so subject to taxation for city purposes; and that there was and is included in each and all of said tax levies the amount required by law to be set apart to pay the interest and to create a sinking fund necessary to pay the bonded indebtedness of said city outstanding, and consisting of bonds duly authorized by claw to be issued by said city, and consisting 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 whick+i said bonds were so issued; and, WHEREAS, the City of Paducah during the years 1936,rl937, ?'ay 1938 and 1939 was governed by an Act of the General Assembly known as Chapter 91 of the Acts of the General Assembly for 1930, and known and referred to as the City Manager Form of Government; and, Page 339 WHEREAS, the Board of Commissioners under said Charter has the power, authority and right, and are charged with the duty ' of levying all taxes, appropriating and 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 Paducah made and spread upon the records of said Board in all respects as required by law, an approximation and estimate of the Anticipated Revenues for each of said years respectively for said City from all known and available sources, and then by Ordinance duly adopted appropriated said anticipated revenues to the various departments and agencies of, said City for the purpose of conducting and administering the affairs thereof, and of its various and sundry agencies; and said apportion- ments so made did net exceed the amounts of said anticipated revenues for said respective years; and, WHEREAS, in anticipation of the collection of said revenues the Board of Commissioners, because of the necessity for raising funds for meeting the immediate and present expense 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 pf the principal and interest of 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 sufficient amount collected or realized therefrom to pay the operating expenses when added to the amount so borrowed fromsaid banks, and there now remains unpaid and owing by reason of notes executed and delivered to banks for loans incurred in the necessary maintenance and operating of the government of said City during said period of time, the sum total of Sixty-four Thousand ($64,000.00) Dollars for the payment of which amount there has been a failure of collection of taxes and of anticipated revenues, and said indebtedness was all legally incurred, and incurred for the purpose of paying the necessary operating expneses of the City and its Government during said four4 ( ) years; and, � WHEREAS, said notes in the ag„reyate sum of x'64,000.00 i are the present evidence of the indebtedness so incurred b; the City i ,of Paducah for payment of bills, accounts and general operating ,expense durin; the years 1936, 1937, 1938 and 1939, and that the bills, accounts and liabilities for payment of which said notes I'.were executed, were incurred for Zovernmental and other lawful I purposes to pay the costs of administerin- the public business of said city; and, I � Page 340 VMEIiEAS, the tax paying period for said four (4) ,years has now past and all taxes and income anticipated have been collected and .received that could possibly be collected and received therefrom, and all 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, 1"diiEREAS, said indebtedness amounting to Sixty-four j Phousand (?;64,000.00) Dollars, is a legally incurred floating indebtedness against the City and for which it is legally liable, and it is to the interest of said City for the purpose of maintain-: i ing its credit and to make it possible for it to pay said indebted -1 ness that the same may be funded in the manner provided by the Constitution and laws of the State; and, I WHEREAS, said indebtedness is now in such form as to require the payment of interest thereon at six (6j;) per cent per annum, while by bonding the same a much lower 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, WHEREAS, said Sixty-four Thousand (4,',64,000.00) 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 all of said years was less than ten per cent of the assessed valuation of property for taxation purposes, including the floating indebtedness then existing, and during neither of said years was the floating indebtedness equal to ten (10;3') per cent of the assessed valuation of 'taxable property, and the City has no other available funds with which to pay all of any of said indebtedness of Sixty-four Thousand (4,f64,000.00)'; Dollars; i NO'W, THEREFORE, BE IT O11DAlNED BY '[IE BOARD OF i I CO'.,:_..ISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That said floatin,,, indebtedness of said City to the amount of Sixty-four Thousand (I'.cs4,000.00) )ollars, or so much thereof as may be found by judgment of the Court to be a leTal obli_;ation of the City, be dunded into an indebtedness bearin; ! Pa ^e 341 Interest at the rate of '[1vn and one-half (2',;3') per cent per annum,) payable semi-annually, sot hat the total indebtedness of the City of Paducah will in nowise be increased, but the proportion provide r heein to be funded shall be made possible of payment without i meterially interfering with the revenues necessary for the proper I operation and conduct of the affairs of said city. SECTION 2. That funding bonds of the City of Paducah be issued in the a ;relate sum and amount of Sixty-four Thousand (;;64,000.00) Dollars, or such part thereof as may equal the amount of indebted- ness found by ,judgment of the Court to he a legal and bindinC obligation of the City of Paducah, and consist:in- of a floating indebtedness of said City, and sou_ -ht therein to be funded; that said bonds be in the denomination of One 'Cnousand ('`1,000.00) each and numbered from 1 to 65, that they bear date of September 24th, 1 i 1940, that they bear Interest at the rate of Two and one-half (22") i per cent per annum, payable semi-annually, both principal and inter- est being payable at the office of the City Treasurer in the City of eadufah and State of Kentucky; interest payable on the 24th day ofl September and the 24th day of i.:arch of each year, the first payment of interest being due and payable on the 24th day of i�-arch 1941; and that said bonds mature as follows and not otherwise: Bond Number Principal Amount Date of I,'aturity 1 - 4 $4,000.00 September 24, 1941 5 - 8 4,000.00 September 24, 1942 9 -12 4,000.00 September 24, 1943 13-16 4,000.00 September 24, 1944 17-19 3,000.00 September 24, 1945 20-22 3,000.00 September 24, 1946 23-25 3,000.00 September 24, 1947 26-28 3,000.00 September 24, 1948 29-31 3,000.00 September 24, 1949 32-34 3,000.00 September 24, 1950 35-37 3,000.00 September 24, 1951 38-40 3,000.00 September 24, 1952 41-43 3,000.00 September 24, 1953 44-46 3,000.00 September 24, 1954 47-49 3,000.00 September 24, 1955 50-82 3,000.00 September 24, 1956 53-55 3,000.00 September 24, 1957 56-58 3,000.00 September 24, 1958 59-61 3,000.00 September 24, 1959 62-64 3,000.00 September 24, 1960 That said bonds be substantially in the following form, to -wit: Page 342 UNITED STATES OF A15ERICA C01,11,,011V,EALTH OF KENTLCKY COUNTY OP i+:CCRACKEN CI'Py OP' ?ADUCAH I I 3-3/4o FUNDING BOND No. ¢;1,000 KNOW ALL i1MN BY THESE PRESENTS: That the City of Paducah, 1•IcCracken County, a Giunicipal Corporation of the second class in the Commonwealth of Kentucky, for value received, hereby acknowledges itself to owe and promises to pay to bearer the stun of ONE THOUSAND DOLLARS In lawful money of the United States of America, on the 24th day of September, 19_, with :interest thereon at the rate of Two and one-half (22;is) per cent per annum, payable semi- annually on the 24th day ffT.'arch and September of each year, upon presentation and surrender of the interest coupons hereto attached, as they severally become due, at the office of the City Treasurer, in the City of Paducah and State of Kentucky. This bond is one of a series of Sixty-four bonds, numbered from one (1) to Sixty-four (64) incluside, aggregating Sixty-four Thousand (864,000.00) iollars 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 b,, the said City, pursuant to Sections 157 and 158 of the Constitution of Kentucky, and by virtue of certakn ordinances and proceedings duly adopted and had by the Board of Commissioners of the City of Paducah, PkcCracken County, Ken tucky. The City of Paducah, Kentucky reserves the right to redeem and pay off this bond at its par value and interest at any time afjter Five (5) years from date of issue. 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 precedent to and in the issuance of this bond, exist, have been done, have happened and been performed in regular and due form and manner, as required by law; that the indebtedness evidenced hereby' together with all other indebtedenes outstanding against the City, does not exceed any constih,tional or statutory limitation of indebtedness or taxation; that due revision has been made for the levy and collection of an annual ad valorem tax, su ficient in amount to pay the interest and to create a sinkin,c fund for the payment of the principal as they severally mature; and that R . s. Page 343 the full credit, faith, taxin_- power and resources of the said city of Paducah are hereby irrevocably pledged far the prompt payment of the interest and principal of this bond. This bond is subject to registration as to proncipal, i in the name of the holder on the books of the City 'treasurer of said City, sueh registration to be evidenced by notation of said i City Auditor on the back hereof, and after such registration no transfer hereof, except upon such books and similarly noted hereon; I shall be valid unless the last registration shall have been to �I bearer. Registration hereof shall not affect the ne-otiability i II of the coupons attached, xhich shall continue negotiable by ijdelivery merely. jl IN WITNES5 !4iic;REOF, the City of Paducah has caused IIthis bond to be sirrned by it s Mlayor, countersi;ned by its i' Treasurer, attested by its City Clerk, the corporate seal of Ii the City to be aM;xed, and the coupons to be signed with the facsimile sisnatures of its officers, as of the 24th day of September, 1940. lir, Mayor ATTEST: City Clerk COUPONS NO On the 15th day of -larch (September) 19_, the �i City of Paducah Kentucky, y, will nay to bearer i Dollars in lawful money of the United States of America, at the office of the City Treasurer, in the city of Paducah and the I` State of Kentucky, being six month' interest then i due on its Furding Bond, dated September 24, 1940, No C Pdayor,Zi ty of Paducah, KKy A TTES T : City Clerk �i Treasurer Page 344 FORIM OP REGISTRATION Date of Name of Sir, -nature of Registration Re.^,istered Owner City Auditor i i Section 3. That there be and t'ere is hereby levied upon 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 aedeem the principal i as they severally mature. SECTION 4. i That immediately upon receipt of funds by the Treasurer of the City of Paducah, accruing from the issuance of the bonds herein authorized to be executed and sold, she will forthwith pay, cancel and hold for nau,ht, all of the notes against the City of Paducah to the amount of said bonds, w ith the accrued interest paid to Yn_e city as the purchase price thereof, and i consisting of the floating indebtedness of said City in whatever form the same may then be evidenced, or she will so pay such amount as is realized from the bonds issued under this ordinance.I SECTION 5. Said bonds herein provided for shall be issued and sold only to the amount of the floating indebtedness of the City of Paducah which may be, by judgment of the Court, found to be a legal liability against said city, and consisting of a floating indebtedness, and authorized by such judgment to be funded under i this ordinance, and should said indebtedness be found to be less than Sixty-four Thousand (°>64,000.00) Dollars, then the amount of bonds authorized herein shall be reduced to an amount so found to be the legal floating indebtedness of said city, and the schedule) of bonds hereinbefore listed shall be correspondingly reduced, by taking therefrom the amount of bonds to the amount of one (1) bond I each, commencing with the last maturity. i SECTION 6. i This ordinance shall be introduced at a re alar meeting ! I of the Board of Commissioners and remain on fs.le .for not less than one Q1) week for public inspection in the completed form in tivh�ch' Page 345 it shall be put upon its final passa,e, and if adopted it shall be+ in full .force and effect ten (10) days thereafter. Introduced on the 17th day of Sept I Passed by the Board of Commissions, (ecorded by Rudy Stewart, City Lle. Published September 26, 1940.