HomeMy WebLinkAboutOrdinances Book 15, Page 705, No Ordinance Number705
AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING THE ISSU-
ANCE OF SAID CITY'a "WhTER 1dORKS IDIPROVEMENT AND REFUNDING REVENUE BO., Ms
SERIES 19651, IN ORDER (A) TO DEFRAY THE COSTS (NOT OTHER[9ISE PROVIDED) OF CON-
STRUCT114G CERTAIN EXTENSIONS, II.IPF.OV •tii:,NTS, ADDITIOILZ AND ENLARGEMENTS TO THE
N.UNICIPALLY Oh7IED WhTER 1.ORKS OF SAID CITY, 1;ITH ALL EXPENSES IN CONNECTION
THEREWITH, AND (B) TO REFUND AT A WWER NET INTEREST COST CERTAI•rI PREWIOUSLY
ISSUED AND OUTSTANDING BONDS VHICH ARE PAYABLE FROM .THE REVS; UES OF SAID ;•:Ui•II-
CIPAL 1 -MER [:CELTS; PROVIDING FOR SEGREGATING, INVESTING AND SECURING AN MOUNT
SUFFICIER•T TO PROVIDE FOR THE PAMIT (IMETHER AT MATURITY OR BY REDEPT?'ION) OF
SUCH PREVIOUSLY ISSUED BORTDS; PROVIDING FOR THE COLLECTION, SEGREGATION AND
DISTRIBUTION OF THE REVENUES OF SAID 1IATER1•1ORKS; PRESCRIBING AIM SETTING FORTH
CONDITIONS AND RESTRICTIONS PURSUANT TO MiTCH SAID CITY I.1AY ISSUE IN THE FUTURE
ADDITIONAL REVENUE BONDS MAKE FROM THE REVENUES OF SAID @TATER 1,70rn, AND
RANKING ON A BASIS OF PARITY UITH THE BONDS AUTHORIZED BY THIS ORDINANCE;
AND PROVIDING FOR AN ADVERTISED, PUBLIC COMPETITIVE SALE OF THE BOIIDS HEREBY
AUTHORIZED.
E1HEREAS, the works, installations and facilities which provide crater
service and fire protection in the City of Paducah, McCracken County, Kentuclry,
have lonL been owned by said City, and operated by said City as "The Paducah
Water xrks," and as a public, municipal, revenue-producing undertaking for
preserving and promoting the public health, safety and general welfare of the
citizens and inhabitants of said City and its environs; and in that connection
there are outstanding at the date of the adoption of this Ordinance certain
bonds of said City which are by their terms, and by the terms and provisions of
the respective ordinances pursuant to which the same were issued, payable solely
from the revenues of said TUater :forks, as follows:
(a) 011,000 principal amonrt of said City's "1'7ater Works Bonds,"
dated October 1, 1930 (for convenience hereinafter referred to as the ('1930
Bondi"), bearing interest at the rate of 4-1/2% per annum, maturingserially
in various amounts or. October 1, in each of the years 1965 to 1970" inclu-
sive; being all of the issued and outstanding bonds of a series authorized
by a certain ordinance finally adopted by the Board of Commissioners of
said City on September 29, 1930 (for convenience hereinafter sometimes
referred to as the "1930 Ordinance"); the sane being without privilege of
redemption prior to stated maturities; and
(b) ;080,000 principal amount of said City's "Waterworks Revenue
Bonds, Series of 1952" dated as of April 1, 1952 (for convenience herein-
after referred to as the 71952 Bonds") , maturing as to principal in var-
ious amounts on April 1 in each of the years 1966 to 1972, inclusive, with
interest at 2-1/2;.' with respect to the bonds maturing on and prior to
April 1, 1970, and 2-3/h, with respect to the bonds maturing on April 1
in each of the years 1971 and 1972; being all of the issued, outstanding
and unpaid bonds of a series of such designation, authorized by an Ordi-
nance finally adopted and approved on April 1, 1952 (for convenience here-
inafter sometimes referred to as the 111952 Ordinance"); the same being
currently subject to redemption at the option of said City on October 1,
1965, or on April 13 1966, at 102; and being all of the issued, outstanding
and unpaid bonds of a series in the authorized amount of 750,000, of which
only X5003000 princi_ral amount have been issued by said City;
AND 'WHEREAS said existinb [•later corks is at this time deer ed to be
adequate to serve the present and foreseeable needs of consumers within the
present corporate limits of said City; but said Water Works constitutes the only
presently feasible source of purified water cap2ble of supplyin-, the needs of
many residents, commarcial enterprises and industrial establishments in areas
contiguous to the City, where wills are inadequate for lire protection purposes
and ars subject to contamination with resulting continuous threat to the public
health, safety and welfare of said City and of the citizens, inhabitants and
water consumers within the corporate limits thereof; and
`:!ERC
AS, many parsons and parties in such contiguous areas have re-
quested that the crater lines and facilities of said ?dater Works be extended in
order to provide therein a supply of water for domestic, commercial, industrial,
and fire protection purposes, and compliance with such requests is deemed to be
in the best interests of the public health, safety and general welfare of said
City and of its citizens, inhabitants, water users, and property owners; and it
is urgently necessary that provision of such services to such areas be under-
taken immediately, and also that foresighted provisions be made for the possible
necessity or desirability of undertaking and financing similar extensions of
service in the future to such areas, or to other areas wherein the extension of
such service may be necessary or desirable in the future; and KRS 96.150 pro-
vides to the City due authority in law in that connection; and
T•:nB REAS, by a certain Ordinance duly adopted and approved on September
293 1930, (for convenience hereinafter referred to as the "Tater Board Ordinance"),
the City has heretofore vested in its "Commissioners of Tdaterworks" (for conven-
ience hereinafter sometimes referred to as the "hater Board"), an independent,
non-political agency and instrumentality of the City, the management, operation
and control of the said T:'ater '.:orks (subject, nevertheless, to the lawful powers
and functions of the City's legislative and governing body, to the extent the
same are not delegable by law); and
i.HER.1S, said Water Board, upon due consideration of such requests for
the extensions of municipal water service tosuch contiguous areas, has heretofore
recommended to the Board of Commissioners of said City that (a) such extension of
municipal water service be made to the area encompassed within the boundaries
of the IIEoodlawn, Oakdale and husbands Road T?ater District," (a water district
duly organized and existing pursuant to the provisions of KRS Chapter 74),
according to a certain '"dater Service Contract" dated January 25, 1965, duly
approved by the Board of Commissioners of the City according to proceedings had
at a meeting held on Januarj 26, 1965 (for convenience sematimes referred to
hereinafter as the "[Fater District Contract of January 25, 1965"), substantially
in accordance with a Preliminary Report of Hunter H, ;'laa rtin & Associates,
Consulting Engineers of Paducah, 'Kentucky, to which reference is hereby made for
the details thereof, and that (b) similar extension of water service be made in
the presently unincorporated area generally known as the "Old Cairo Road -Concord -
Ye --t Paducah Area," substantially in accordance with a Preliminary Report of
Edward T. ':iarran & Associates, Inc., Consulting Engineers of Paducah, Kentucky,
to which reference is hereby made for the details thereof; and based upon the
approval and recorzrandations of the said i•?aterPoard, the Preliminary Roports of
said Consulting Engineers, and the recomrendations of Stein Bros. & Boyce, Inc:,
a licensed municipal bond dealer employed as Fiscal Agent by the Water Board in
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than.: connection, it is the consensus of the Aferibers of the Board of Commissioners
of the City of Paducah, Kentucky, that such requests should he approved and that
extension. of the services and facilities of the municipal Water Works should
be made at this tirre for the borrowing of funds for such purposes in the estimated
amount of x;1,500,000, in anticipation of the costs of such extensions and im-
provements of the municipal ?ateri•Torks, together with all costs and expenses
incident thereto, and incident to issuance of the bonds hereinafter authorized;
and
t:'IMREAS, said Fiscal ?gent, Stein Bros. & Boyce, Inc., has recommended
to said '-rater Board, and to the Board of Commissioners of the City, that in makinfg•
provision for the borrowing of funds for such purposes it is financially desir-
able in the best interests of said City, said Eyater Board, and the citizens,
inhabitants and :rater users of said City that provision be made for the payment
and retirement (whether at maturity or by redemption) of the City's outstanding
1930 Bonds and 1952 Bonds, in order that the City's revenue bonds for said com-
bined purposes may be authorized and offered at public sale upon the security of
a first lien upon the gross revenues now and hereafter to be derived from the
operation of said municipal Water :•Yorks with resulting savings to the City in
net interest costs, as well as future fiscal expense, taking into consideration.
(a) presently existing favorable financial conditions, (b) the relatively high
interest cost to the City of the 1930 Bonds in relation thereto, and (c) the
savings m;iterms of interest cost which may be obtained by the City in the offering
of revenue bonds constituting a first lien upon the aggregate revenues of said
municipal tater Forks, as compared to the probable interest cost to the City if
it should authorize and offer at public sale a new issue of its revenue bonds in
the amount of u1,500,000 upon the security of a third lien upon the aggregate
revenues of said municipal ''Tater Works; and
I-MERuAS, the Board of Commissioners of the City are advised by legal
counsel that there is due authority in law, according to the Statutes hereinafter
referred to, and according to the decision of the Court of Appeals of Kentucky
La Hemlepp v.. Aronberg, (Ky. 1963), 369 SW 2d 121, for the undertaking and carry-
ing our, of such program of financing and refinancing, as so recommended by said
Fiscal Agent, and as approved and recommended by said '.dater Board; and the mem-
bers of the Board of Commissioners are sufficiently advised,
Oil, THEMEFOpE, BE IT, AND IT IS IMRCBY ORDAINED BY TJC BOARD OF
COh^",ISSI^n;^r,RS nF THE CIT.i OF rADUCAH, KENTUCKY, AS FOLL74S:
Section 1. Said City hereby recognizes and acknowledges that it has
previously created for the security, benefit and protection of the oumers and
holders of the 1930 bonds, as identified in thu pre-mble of this Ordinance,
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certain liens, pledges and security rights as provided in the 1930 Ordinance, which
is identified in the preamble hereof; and the City hereby recognizes and acknow-
ledges that it must and will fully honor all such contractual commitments, and
comply in full therewith, by making provision for the payment of said 1930 bonds,
and the interest coupons appurtenant thereto, as and when the same mature from
time to time, throubh.depositing and providing for the investment of funds for
such purposes, as hereafter specifically provided in and by the terms and provi—
sions of this Ordinance.
Section 2. The Cite elects to, and does hereby, exercise its reserved
option to call in for redemption and payment on October 1, 19653 all of its issued,
outstanding and unpaid 1952 bonds (as identified in the preamble of this Ordi-
nance); and full provision for such redemption, payment, and retirement of said
1952 bonds is hereinafter made. The proper officers of the City are hereby
authorized and directed to sign in the name and on behalf of the City, and to
cause to be published in accordance with the terms and provisions of the 1952
Ordinance, an appropriate form of "Notice of Redemption of Bonds," and to mail a
copy of the same to the registered owner of any of such bonds as may be regis-
tered, in order to make effective the City's election to call and redeem said
bonds as herein provided.
If, for any rjason, it shall become apparent that moneys from the pro-
ceeds of the 111965 Bonds" (hereinafter authorized), will not be available on or
prior to October 1, 1965, to provide for the redemption of said 1952 bonds on that
date, then said 1952 bonds shall be called for redemption on April 1, 1966, and
the prescribed notices shall be given accordingly.
The City hereby rescinds and revokes the previously created right and
authority to issue the previously authorized but unissued Q250,000.00 of its
71'aten-iorks Revenue Bonds, Series of 19523" dated as of April 1, 1952, which
were authorized by the aforesaid 1952 Ordinance, the same being identified as
the .125,000,00 of said Series provided to beccme due and payable on April 1,
1973, and the 1253000.00 thereof provided to become due and payable on April 1,
197-4. Li order that there may be no misunderstanding in the future with regard
to this revocation of 'the City's right to issue such identified bonds, the City
Clerk is hereby authorized and directed to make a notation in the official
Ordinance Book, adJacent to the title or caption of the aforesaid 1952 Ordinance,
as recorded therein, in substance as follows:
"Authority to issue the u250,000.00 of bonds authorized by this
Ordinance, maturing on April 1 in each of the years 1973 and
1971, has been revoked and rescinded by a certain Ordinance
finally adopted by tine Board of Commissioners of the City at
a meeting held on the day of , 1965, to
which reference is herehy made."
Section 3. Authorization is hereby given for undertaking the program for
e;:tensions, additions, and improvements to, and enlargements of, the municipal
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Water T:'orks, substantially as set forth and recommended in the reports hereto-
fore made by Hunter H. Martin & Associates, and Edward T. Hannan & Associates,
Inc., Consulting Engineers, both of Paducah, Kentucky; the costs thereof to be
defrayed (to the extent not otherwise provided) from the proceeds of the "City
of Paducah 'Eater Works Improvement and Refunding Revenue Bonds, Series 1965"
hereinafter authorized; such undertakings being sometimes hereinafter referred to
in the aggregate simply as the "Project." The municipal tater Works, as exten-
ded, added to, improved and enlarged by said Project, and as the same may here-
after be extended, added to, improved and enlarged, is hereby declared to be a
municipal and public undertaking within the meaning and application of Sections
96.350 to 96.510 of the G;�ntucky Revised Statutes (KRS); and so long as any of
the aforesaid bonds (and any bonds which may hereafter be issued on a basis of
parity therewith according to the conditions and restrictions hereafter set
forth in this Ordinance) shall remain outstanding and unpaid, said municipal
Water Works, as so extended, added to, improved and enlarged, shall be contin-
uously owned, maintained and operated by said City as The Paducah I -later
a revenue-producing municipal and public undertaking for the security, source of
payment, and protection of the owners and 'holders of all bonds issued and out-
standing pursuant to the provisions of this Ordinance.
Section 4. In order to ;provide funds (to the extent not otherwise
provided) for the purposes recited and set forth in the preamble of this Crdi-
nance and in the preceding Sections hereof, there are hereby authorized to be
issued five hundred seventy (570) negotiable coupon :7ater Revenue Bonds of the
City of Paducah, Kentucky (subject to registration as to principal only, as
hereinafter provided) in the aggregate principal amount of Two Mullion Eight
Hundred Fifty Thousand Dollars (;;,2,850,000), each of which shall be designated
as a "'dater ?,'orks Improvement and Refunding Revenue Bond, Series 1965 " of
said City.
If parity bonds are issued in conformity with the conditions and res-
trictions hereinafter prescribed in that connection, the City reserves the right
to provide that such parity bonds shall be or may be issued in any denomination
which is a multiple of :,;1,000, and/or to provide that such parity bonds of any -
series shall be or may be issued either in coupon form with appurtenant coupon;
repres nting the accrual of interest or as "Bonds in Fully Registered Form"
without interest coupons, and/or to provide for the exchange of ark, such bonds
issued :in coupon form for bonds issued in Fully Rogisterad Form, and/or to
provide for the exchange of bonds isaued in Full, Registered Form upon surrender
of such bonds issued in coupci: form, upon such terms and conditions as the City
may orescrihe in the Ordinance or Ordinances from tine to tine authorizing the
issucnce of each resrecti.ve series of such rarity bonds.
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SaCti U1 L. That said bonds hereby authorized shall be numbered con-
secutively 1 to 570, inclusive, shall be of the denomination of ;;.53000 each,
dated July 1, 1965, and scheduled to.become due and payable in num rical order
on July 1 of the respective years, as follows:
BONDS NMEMD
Inclusive
PRINCIPAL AMOUNT T
DATE Or MATURITY
1-28
OIJ40,000.
July 1,
1966
29-57
145,000
July 1,
1967
58-87
150,000
July 1,
1968
88-118
155,000
July 1,
1969
119-150
160,000
July 1,
1970
151-209
210-244
295,000
175,000
July 1,
July 13
1971
1972
2L5-280
180,000
July 1,
1973
281-317
185,000
July 1,.
1974
% 318-356
195,000
July 1,
1075
357-396
200,000
July 1,
1976
397-437
205,000
July 1,'1977
438-480
215,000
July 1,
1978
481-524
525-570
220,000
July 1,
1979
230,000
July 1,
1980
Provided, however, that said bonds numbered 151 to 570, inclusive, (being all of
said bends maturing on and after July 1, 1971), as may be outstanding from time
to time, shall be subject to redemption by said City prior to maturity, in whole,
or in part in the inverse order of their maturities (less than all of a single
maturity to be selected by lot), on any interest payment date on or after July 1,
1970, and in the event any of said bonds are called for redemption as aforesaid
notice thereof identifying the bonds to be redeemed shall be given by publication
at least once not less than thirty days prior to the redemption date in a news-
paper of general circulation throughout Kentucky, and in a financial journal
of general circulation among bond buyers published in New York, New York, (-and
by registered Trail to the holders of any registered bonds which are to be re-
deemed), and it is furthbr agreed that should any of said bonds be called for
redemption prior to maLurity as aforesaid, said City i:�ill pay to the respective
holders upon surrender of the bonds a premium in addition to interest evidenced
by interest coup3ns maturing on and prior to the redemption date, in an amount
equal to three per cent 0%) of the principal amount thereof if called for re-
demptior on or prior to January 1, 1975; and two per cent (2N) of the principal
amount thereof if called for redemption on or after July 1, 1975, and prior to
final maturity. That said bonds shall bear interest .from the date thereof at
such coupon rate or rates as may be fixed as a result of public competitive sale
of bonds, as hereinafter provided. All interest at the coupon rate or rates
shall be evidenced by proper interest coupons attached to each of said bonds, the
same to be payable semiannually on the first days of January and July in each
year, beginning January 1, 1966. Loth principal and interest shall be payable
in lawful money of the United States of America at the principal office of
Citizens bank & Trust Company, in the City of Paducah, Kentucky, or, at the
option of the holder, at the principal office of an incorporatcd state or national
bank or trust company which is a member of the Federal Deposit Insurance Cor-
poration (FDIC), situated in a city elsewhere in the continental United States
(exclusive of Alaska), wherein there is a Federal Reserve -ank or a branch thereof,
to be designated by the Board of Commissioners after consultation with the pur-
chaser of the bonds. Said bonds shall be executed on behalf of the City with an
authorized reproduced facsimile of the signature of the Mayor, and sealed with
an'authorized reproduced facsimile of the City's corporate seal, attested by the
manual signature of the City Clerk, and the interest coupons attached to said
bonds shall be executed with the facsimile signatures of said Mayor and said City
Clerk. If any officer whose signature, or a facsimile of whose signature, appears
on any bond or coupon shall cease to be such officer prior to delivery of the
bonds, such signature, or facsimile signature, shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had remained in office
until delivery. The signature, or a facsimile reproduction of the signature
of any such officer who may be in office at the time of delivery of any bond, shall
be valid and sufficient for all purposes, notwithstanding the fact that such
officer may not have held such office as of the date of the bonds. All of said
bonds, together with the interest thereon, and any additional bonds ranking on a
parity therewith as may hereafter be issued and outstanding according to the con-
diticns and restrictions hereinafter set forth, are to be issued in anticipation
of the revenues to be derived iron: the operation of the municipally owned 11ater
11orks of the City of Paducah, Kentucky, (as the same presently exists and as the
same may hereafter be added to, extended, improved, and enlarged from time to
time), and shall be payable only out of the "Water Works Revenue Bond and In-
terest Redemption Fund of 1965," as hereinafter established, and shall be a valid
claim of the holders thereof only against said fund (and any income from the in-
vestment thereof), and the portion or amount of the revenues of said later +orks
of said City of Paducah hereinafter pledged and provided to be pledged to said
fund.
In case any bond issued hereunder shall become mutilated or be destroyed
or lost, the City shall, if not then prohibited by law, cause to be executed and
delivered a rear bond of like date, number, maturity and tenor in exchange and sub-
stitution for and upon cancellation of such mutilated bond and its interest
coupons, or in lieu of and in substitution for such bond and its coupons des-
troyed or lost, upon the holder or owner paying the reasonable expenses and charges
ir connection therewith, and, in the case of a bond destroyed or lost, his filing
with the City evidence satisfactory to said City that such bond and coupons were
destroyed or lost, and of his ownership thereof, and furnishing indemnity satis-
factory to said City.
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Section 6. Said bonds and interest coupons shall be fully negotiable,
but upon presentation of any of said bonds at the office of the City Treasurer
of said City, the same may be registered as to principal only in the name of the
ot:,ner on the books in his office, such registration to be noted on the reverse
side of the bonds by the Treasurer, and thereafter the principal of such regis-
tered bonds shall be payable only to the registered holder, his legal repre-
sentatives or assigns. Such registered bonds shall be transferable to another
registered holder, or back to bearer, only upon presentation to the City Treas-
urer with a legal assignment duly acknowledged or proved; but may thereafter
again be registered, as before. Registration of any of such bonds shall not
affect the negotiability of the coupons appurtenant thereto, but such coupons
shall be transferable by delivery merely.
Section 7. That said bonds and coupons shall be in substantially the
following form (subject to such variations of denomination and form, and with or
without provision for exchange of one for the other as provided in Section 4
hereof) :
(FOPJ� OF BAND)
UNITED SZ -TES OF APERICA
COtf'ONWrALTH OF KENTUCKY
COUTNTY OF MI CCRACKEN
CITY OF PADUCAH
IWATER WORKS 11,TR093_=NT AND R3FUNDIN3 REVENUE BOND
S .RIES 1965
Number
w5,000.00
01Ot•7 ALL MEN BY THEME PRESENTS that the City of Paducah, in the County
of McCracken and Commonwealth of Kentucky, for value received, hereby promises
to pay to bearer, or if this bond be registered to the registered holder hereof,
as hereinafter provided, solely from the special fund hereinafter identified, the
sum of Five Thousand Dollars (;;5,000.00) on the first day of July, 19_, and
likewise from said special fund, to nay interest on said sum from the date hereof
at the rate of per cent ( %) per annum, payable semiannually on'
the first days of January and July in each year, beginning January 1, 1966, until
paid, except as the provisions hereinafter set forth irith respect to redemption
may be and become applicable hereto, such interest as may accrue on and prior to
the maturity of this bond to be raid only upon presentation and surrender of the
annexed interest coupons a:, the same severally mature, both principal and interest
being payable in lawful money of the United States of Amarica at the Principal
Office of Citizens Bank & Trust Company, in the City of Paducah, Kentucky, or,
at the option of the holder hereof, at the principal office of
in the City of State of
This bond is one of a duly authorized series of bonds numbered con-
secutively 1 to 570, inclu:Ave, in the aggregate principal amount of •;23850,000,
issued pursuant to an. Ordinance duly adopted and published according to law, fcr
the purposes of (a) defraying the costs of extensions, additi:ns and ir.provenants
to the municipally- o -nod z•ater works : sA•i I.ity, and enlargements thereof, arca
(b) refunding at a lower net interest cost certain similar bonds previously issued
to -pay the costs of acquiring the mu?aci;pal water works of said City, and there-
after constructing extensions and L provements to the 'same; and this bond has
been issued under and in full canpliance with the Constitution and statutes of the
Commonwealth of Kentucky, including among others Sections 96.350 to 96.5510,
inclusive, of the Kentucky Revised Statutes.
A statutory nortgage lien which said City has recognized as being
effective upon issuance and delivery of any of the bonds of the issue of.t•rhich
this bond is a part, is created and granted by Section 96.hOO of the Kentucky
;revised Statutes for the benefit and protection of the holders of said bonds,
and the sante shall contir.-;= as a lien upon the aforesaid municipal ,cater works,
and appurtenant facilities, together with all future additions, im.provements,
enlargements and extensions thereof, and 'the revenues derived from the operation
thereof, until payment in full of all bonds authorized and permitted to be issued
under the provisions of said Ordinance, including parity bonds U any be issued
subject to the conditions and restrictions prescribed in that connection in and
by said Ordinance; but it is acknowledged that said statutory mortgage lien is, at
Via date of this bond, subject to the priority of similar liens previously
created and recd mized as a part of the security and source of payment of said
City's OMater Jorks Bonds," dated October 1, 1930, and said City,s°T•Jaterorks
lievenue Hord, pries of 1952," dated as of Afril 1, 1952, provided, h6i2ver,
that from the ;)roceeds of the issue of bonds, of ihich this bond is a part, the
City has made due provision for deposit and security of sums sufficient for the
payrant and retiremiant in full of all Of said previouslyr issued bonds, either
as -the several bonds and coup ns mature, or be redemption in accordance with their
terms, all as particularly set forth in: said Ordinance, to, which reference is
hereby made for details.
The bonds numbered 151 to 5703 inclusive, of the series of which this
bond is one an•l as rsay he outstanding from time to titre (being all of said bonds
maturing on and after July 1, 1971), are subject to rederctition at the option of
said City prior to maturity, in vhole, or in part in the inners; orcler of their
maturities (less than all of a single maturity to be salected by lot), on any
interest payment date on or after July 1, 1970, and in the event any of said bond
are called for redemption as aforesaid, notice thereof identifyin; the bonds to
be redeemed will be given b;; publication at Least once hot less than thirty
773
771,,
days prior to the redemption date in a newspaper of general circulation through-
out Kentucky, and in a financial journal of general circulation anion;; bond buyers
published in New York, Ne -w York, (and by registered mail to the holders of any
registered bonds which are to be redeemed), and it is further agreed that should
any or all of said bonds be called for redemption as aforesaid, said City will
pay to the holders of the respective bonds so called for redemption, upon sur-
render thereof, a premium in addition to interest evidenced by interest coupons
maturing on and prior to the redemption date, in an aount equal to three per
cent W') -of the principal amount thereof if called for redemption on or prior
to January 1, 1975; and two per cent (21'.) of the principal amount thereof if
called for redemption on or after July 1, 1975, and prior to final maturity.
All of said bonds as to which said City reserves and exercises the right of re-
demption and as to which notice as aforesaid shall hays been given and for the
retirement of which, upon the terms aforesaid, funds are duly provided, will
cease to bear interest on the redemption_ date:
It is provided in and by said Ordinance that the municipal water works of
said City shall continue to be operated as a municipal revenue-producing public
project for the security and source of payment of this bond and the issue or
series of which it is a part, so long as any thereof remain outstanding and un-
paid; that additional bonds, ranking on a parity with the series of bonds of
which this bond is one, may be issued and outstanding from time to time, sub-
ject to prescribed conditions and restrictions; and that this series of bonds,
together ,ith any such additional bonds as aforesaid, are and will be paysble as
to both principal and interest solely fr-m the gross revenues to be derived from
the operation of said municipal water works, a sufficient portion of which reve-
nues has been ordered sit aside as a special fund for that purpose and identi-
fied as the "''ater ''forks Revenue Bond and Interest Redemption Fund of 1965."
This bond and the saries of which it is one do not constitute an indebtedness of
the City of Paducah within the msanirg of any constitutional or statutory pro-
visions or limitations. Said City covenants that said municipal water works will
be continuously operated as a revenue-producing undertaking and that it will
fix and chard such rates for the scrrices and facilities rendered thereby and
:rill collect and account for revenues therefrom, so that such revenues will be
sufficient to pay promptly all bonds which by their terms are payable from said
special fund, and interest thereon, as the respective bonds and interest coup. -IS
beccre due, and to pay the cost of operation and ma_ntenance of said municipal
water works.
This bond is fully negotiable hnt may b-- ragistered as to principal only
in the nnre of the holder on UP hooks of said City in 'the office of its City
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Treasurer, 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 which it shall be transferable by delivery, but it may again be
registered as before. The registration of this bond as to principal shall not
restrain the negotiability of the coupons by delivery merely.
This bond is exempt from taxation in the Commonwealth of Kentucky.
It is hereby CE HPIFIED, 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 and the series of bonds of which it is one, have existed,
have happened and have been performed in due time, form and manner as required
by law, that the amount of this bond, together ::ith all other obligations of
said City, does not exceed any limit prescribed by the Constitution or statutes
of the Commomrealth of Kentucky, and that a sufficient portion of the reve-
nues derived fror. the operation of said miunicipal crater works has been pledged
to and will be set aside into said special fund by said City for the prompt
payimnt of the principal of and interest on this bond and all other bonds which
by their terms and according to the provisions of said ordinance arc rade
payable therefrom.
Iii 1`1THESS ?'ri?REOF said City of Paducah, in the Commonwealth of Ken -
Lucky, 'has
en-Lucky,'has caused this bond to be signed with the reproduced facsimile signature
of its I•Iayor and attested by the validating manual signature of its City G1erk3
and sealed with a facsirlile reproduction of the corporate seal of said City, and
the coupons hereto attrched to be executed with the repaoduced facsimile sig-
natures oP said Mayor and srid Cit,• Clerk, and this bond to be dated the first
day of July, 1965.
CITY OF PADUCAH, KEI4TUCKY
(FACSII•:II.J OF s,kL)
By, .(Facsimile Signature)
Mayor
ATTEST:
(Manual Si ature)
City Clerk
I
No.
(Fen! OT COUPON)
*Unless the bond to which this coupon is appurtenant shall
have been called for prior redemption
On the first day of
19_1 the City c' Paducah,
Kentucky, will pay to bearer Dollars
out of its 'S•.'ater Works I:evsnue Bond and Inte.resi, Redemption
Fund of 1965," at the principal office of Citizens Bark & 'frust Company, in Pad-
ky, or, at the option of the holder hereof, at the principal office of
State of as provided in and being interest then due on its
'T.'ater Works Improvement and Refunding Revenue Bond, Series 1965," dated July 1,
1965, Number
ATTEST: (Facsimile)
Rayor _
(Facsimile)
ity Clerk
(*This redemption legend to appear only on coupons maturing
on and after January 1, 1971)
(FORM OF REGISTRATION)
Date of Name of Signature o£
Registration Registered Owner Cit- Treasurer
Section 8. The bonds authorized by this Ordinance (or any amount thereof
less than the amount herein authorized, as determined by the i•ayor in advice with
the 1,.ater Board, the Fiscal Agent and Consulting- Engineers), shall be publicly
offered for sale according to a "Notice of Sale of Bonds" conforming to the re-
cuireronts of KFS Chapter 4211 (and .articularly Xfi° 12U.11i0(3) and i;RS 421L.360),
ihich shall be published one time, not less than. seven (7) nor more than twenty-
one (21) days prior to the date therein specified for the opening and consider-
ation of purchase bids, i.neach of the following. (a) The Paducah Sun -Democrat,
a legal newspaper published in Paducah, Kentucky, and having the largest circu-
17tion ther;in, (b) The Courier -Journal, Louisville, Kentucky, a legal newspaper
having statowise circulation, and (c) the Daily Bond Buyer, New York, New York,
a financial P.ewspaper or journal cf general circulation among bond buyers. In
said published notice, bidders shall be notified that bids must be for the
entire amount of bonds offered for sale, and shall be for cash at net less than
the face amount thereof, with accrued interest tc date of delivery; that they
:may sp„cify an interest rate or rates in multiple of 1/8 or 1/10 of 1L3 provided
none may exceed 6;; per .-nnum, or_ly one rate may he specified for bonds of z single
a:aturity, the Cit; .7ill not ent•artair. any �-rorosal that interest becomins,, due -or.
ary bond on any interest 7aymenL date be represented by morn than one couon,
and the deferential. T:etween the hiohcst coupon rate and the lot•!est coupon rate
sti:)ulated in any bid may not exceed two (2) percentage points. Each bidder
shall be required to tender a certified or bank cashier's check payable to the
City of Paducah, Kentucky, in a sum eeual to 2;1' of the face airount of t_2a bonds
offered for sale, the same to be returned immediately after the opening of bids
to all unsuccessful bidders, and to be retained uncashed in the case of the
purchase bidder until the bonds are delivered and paid for, at which time, at
the election of the purchaser, the City of Paducah shall either, cash the good
faith check and apply the proceeds thereof (but without interest thereon) as a
credit.upon the purchase price, or shall return the good faith check to the pur-
chaser upon payment of the purchase price in full. The right to'reject bids
shall expressly be reserved. The successful bidder shall have the privilege of
nominating, either::in his bid, or upon notice given in writing to the Xayor and
the Fiscal Agent not later than seven (7) days after the acceptance of the bid,
an incorporated state or national bank or trust company as an alternate place of
principal and interest, providing the same must be a member of FDIC and must be
situated in a city in the continental United States (exclusive of Alaska),
wherein there is a bank. (or a branch office), of the Federal Reserve System; and
if a bid is accepted and such nomination is made, the Board of Commissioners will
take appropriate action to designate such Alternate Paying Agent; and if the
successful bidder shall fail to submit a nomination within such period of time,
the Board of Commissioners will itself designate an Alternate Paying Agent.
The Fiscal Agent is instructed.to prepare a "Statement of Terms and
Conditions of Bond Sale," and to mimeograph, print or otherwise reproduce the same
in multiple copies, to be furnished to any interested bidder upon request, and the
same shall set forth the maturity schedule, place or places of payment, redemp-
tion provisions, and other detailed information with xeference to the bonds, and
shall prescribe the manner of bidding, and the manne of determining the bid which
will be accepted, in order to give assurance of uniformity in the submission of
purchase bids. In Official.bid Form shall also be provided.
Section 9. Upon issuance and delivery of any of the bonds initially
authorized by this Ordinance to be issued, disposition of the proceeds thereof
shall be made as follows:
(A) All sums representing accrued interest received from the purchaser
or purchasers shall forth with ba deposited in the '4dater .•forks R ver_ue Bond and
Interest Redemption Fund of 1965," hereinafter created and established, and the
same shall .be sued and applied to the payment of interest coupons next there-
after becoming due.
.(B) There shall next be set aside and paid frog the proceeds of the
bonds all expenses incident 'to the authorization, sale, and delivery ther\-of, and
the fees and expenses which the T. -later Board may have agreed to pay the Fiscal
Agent in connection therewith.
717
71u
(C) There is hereby created a spacial fund or account of the City,
separate and apart from all other funds and accounts thereof, and the same is
hereby desi3nated the "Water !forks Bends of October 1, 1930, Principal and In-
terest Escrow Fund" (for convenience sometimes hereinafter referred to simply
as the "19.30 dater Bond Escroir Fund"). It is a part of the obligation of Stein
Bros. u Boyce, Inc., according to the terms of its employment as the City's
Fiscal Agent in connection with the financing and refinancing program herein
authorized, to make arrangements with an incorporated state bank or a national
banking association for the investment, for the account of said 1930 ri;ater Bond
Escrow Fund, of a portion of the proceeds of the bond& authorized by this Ordi-
Farce in a Certificate of Tive Deposit, secured at all times by a valid pledge
to -the City of Paducah, to the City Treasurer, and to the 1•lateriBoard of said
City, of obligations of the United States Government (or obligations the payment
of iinich, both principal and interest, is fully and unconditionally guaranteed
Ly the United States Goverrurent) in such amount, and bearing interest upon dimin-
ishing balances of principal at such assured and unconditional rate as will be
sufficient to provide for the payment of all of the City's outstanding '",,.later '.:'orks
Bonds" dated October 1, 1930 ('the "1930 Bonds") maturing after October 1, 1965,
together with the interest on said 1930 Bonds maturing after said date, at the
coupon rate of 4-1/2/; per annum, as the several bonds and interest coupons of
said series are scheduled to become due.
From the existing 111•later '!•:orks Pond and Interest Redemption Account"
which was created by the aforesaid 1930 Ordinance, there shall be transferred to
the City's Paying Agent with respect to the 1930 Bonds, or_ or prior to October
1, 1;65, the sum of ;135,247.50, being the aggregate amount of principal and
interest of the 1930 Bonds maturing on that date.
From the proceeds of the bonds authorized by this Ordinance, the City
Treasurer is authorized to invest the sum of 009,774.85 by purchasing from
Citizens Bank ; Trust Company, Paducah, Kentucky, a Certificate of Time Deposit
certified by said Fiscal Agent to be in such amount, bearing interest at such
assured and unconditional rate, and payable from time to tiim for the account of
said 1930 Dater Bond Escroid Fund upon the following dates and in the following
amounts :
Maturing April 1, 1966:
For the payment of interest then due
on t;:e outstanding 1930 Bonds
Naturing October 1, 1966
For Payment of the principal of the
1930 Bonds then maturing
For payment of interest then due on
the outstanding 1930 Ponds
Total
;
rRurin April 1 1967:
Cr` the pa;nl�ent of L.terest then due
on the outstanding 1930 Bonds
"!aturin` October 1, 19:.7:
For paynent of
the principal df ti.e
1930 Bonds tlien ma Luring
4 15,615.00
r 124,000.00
15 615.00
^ 139.00
v 12,825.00
w 130,000.00
Maturing April 1, 1969:
for the payment of interest then due
on the outstanding 1930 Bonds 6,795.00
Maturing October 1 1969:
For the payment of principal of the
1930 Bonds then maturing ? 147,000.00
For payment of interest then due on
the outstanding 1930 Bonds w 6.795.00
Total3,79 .00
w
Maturing April 1, 1970:
For the payment of interest then due
on the outstanding 1930 Bonds v 3,487.50
Maturing October 1, 1970: 287,493,73
Re resenting:
(a For the payment of principal of
the 1930 Bonds then maturin;; 0 155,000.00
(b) -or c= interest
1930 Bor.':: w 3,457.50
.
_.,_3... -.,._ c, u,. _ 4� 129,006.23
Said Certificate of Time iepcsit shall be delivered by the CGity
Treasurer into the custody of First National City Bank, :a:•r York, 1s York,
upon its acknowledgment of receipt theroof according to the terns and _)revisions
of an Escrow Agreement, in form and substance satisfactory to the City's Cor-
poration Counsel, whereunder said First ]rational City Bank shall undertake
to receive from the I".nancial institution which is the issuer of said Certificate
of Time Deposit the respective amounts upon the respective dates hew inabove
set forth; the same to be recsived as trust (ands for availability and applica-
tion on and after such res active specified dates, solely for the payment of the
1930 Bonds, and the interest coupons arrurtenant thereto, as end when the said
1930 Bonds and coupons become due and payable according to the terms thereof;
except that the excess shown to be available on and after October 1, 1270, shall
be transferred to and deposited in the °°ad•.ic?h '.•.'ater 61orks Revenue bond and
Interest Redemption Fund," here-,nafter craated.
Under the terms and provisions of said Escrow, Agreement the financial
instiLntion T•thich is the issuer of said Certificate or Tv -,,e Deposit shall pledge
to the L'i.tr of Paducah, Kentucky, to its Cit, T*f acui; , and to the "atcr Roard,
as aforesaid, direct or fullr guaranteed obligations of the united States havi:i;;
a market vnl!:> at all tines at least equal to t!: ;nrni portio,. thereof; but
said Escrow Agreement shall provide (a) that the physical custody of such ,ledged
direct or ivarnnteed ot,li.-O.ions of the Trite: States shall be in some oti,or
719
For paynrent of interest then due on
the outstanding 1930 Bonds
Total
12 825.00
w
142,'U5-00
'Naturing April 1, 1968:
For the payment of interest then due
on the outstanding 1930 Bonds
4
9,900.00
Maturing October 1 1968:
For payment of the principal of the
1930 Bonds then maturing
$
138,000.00
For payment of interest then due on
the outstanding 1930 Bonds
4
v
9900.00
Total
w
7,900.•00
Maturing April 1, 1969:
for the payment of interest then due
on the outstanding 1930 Bonds 6,795.00
Maturing October 1 1969:
For the payment of principal of the
1930 Bonds then maturing ? 147,000.00
For payment of interest then due on
the outstanding 1930 Bonds w 6.795.00
Total3,79 .00
w
Maturing April 1, 1970:
For the payment of interest then due
on the outstanding 1930 Bonds v 3,487.50
Maturing October 1, 1970: 287,493,73
Re resenting:
(a For the payment of principal of
the 1930 Bonds then maturin;; 0 155,000.00
(b) -or c= interest
1930 Bor.':: w 3,457.50
.
_.,_3... -.,._ c, u,. _ 4� 129,006.23
Said Certificate of Time iepcsit shall be delivered by the CGity
Treasurer into the custody of First National City Bank, :a:•r York, 1s York,
upon its acknowledgment of receipt theroof according to the terns and _)revisions
of an Escrow Agreement, in form and substance satisfactory to the City's Cor-
poration Counsel, whereunder said First ]rational City Bank shall undertake
to receive from the I".nancial institution which is the issuer of said Certificate
of Time Deposit the respective amounts upon the respective dates hew inabove
set forth; the same to be recsived as trust (ands for availability and applica-
tion on and after such res active specified dates, solely for the payment of the
1930 Bonds, and the interest coupons arrurtenant thereto, as end when the said
1930 Bonds and coupons become due and payable according to the terms thereof;
except that the excess shown to be available on and after October 1, 1270, shall
be transferred to and deposited in the °°ad•.ic?h '.•.'ater 61orks Revenue bond and
Interest Redemption Fund," here-,nafter craated.
Under the terms and provisions of said Escrow, Agreement the financial
instiLntion T•thich is the issuer of said Certificate or Tv -,,e Deposit shall pledge
to the L'i.tr of Paducah, Kentucky, to its Cit, T*f acui; , and to the "atcr Roard,
as aforesaid, direct or fullr guaranteed obligations of the united States havi:i;;
a market vnl!:> at all tines at least equal to t!: ;nrni portio,. thereof; but
said Escrow Agreement shall provide (a) that the physical custody of such ,ledged
direct or ivarnnteed ot,li.-O.ions of the Trite: States shall be in some oti,or
719
720
"inancial inztit.uti.n which is a member of Federal Deposit Insurance Corporation
ural has capital resources net less than w1,000,000, and (b) that the issuer of
such Certificste of Time Deposit may from ti-r.e to time withdraw such pledged
securities, upon simultaneous substitution therefor r•= other direct or fully
„uaranteed obligations of the United States such that the aggregate amount of the
market value of such pledged securities (exclusive of accrued Literest) shall
not be less than the aboragats unpaid maturities of such Certificate of Time
Leposi.t,
(D) There is hereby created a special fund or account of the City,
separnte and apart frum all other funds and accounts thereof, and the szre is
he-oby designated the "Haterworlcs Revenue fonds, Series of 1952, Redemption
Fund" (for convenience someti:•.es hereinafter referred to simply as the 111952
?-'atexv:orks Revenue Bond Redemption Fund"), which said fund shall be established
in the custody of Citizens Bank & Trust Company, Paducah, Kentucky, which was
and is the designated place of payment of the aforesaid 1952 Bonds, as provided
in said bonds and in the 1952 Ordinance pursuant to v:hich the same were issued
and are outstanding. Said special fund shall constitute a trust fund solely for
the purpose of providing for the redemption and payment on October 1, 1965 (or
on April 1, 1.966, as the case may be), of all of the City's issued, outstanding
and unpaid 1952 Bonds on October 1, 1965 (or April 1, 1966), according to the
provisions heretofore made in this Ordinance for the redemption and payment
thereof on one or the other of said dates. In said 1952 lKaterworks Revenue Bond
Redemption Fund the City's Vater Board shall, upon delivery of the bonds author-
ized by this Ordinance, and receipt of the proceeds thereof, deposit from the
";later `;!orks Bond and Interest Redemption Account of Paducah, Kentucky," as
established by and continuously maintained in accordance with the provisions of,
the 1930 Lend Ordinance, (and which was provided in the 1952 Ordinance to be
continued for the security and source of payment of the 1952 Bonds, as well),
a sum sufficient to provide for payteent on October 1, 1965 (or on April 1, 1966,
as the case may be), of the send -annual interest which will then become due
-iron all of the outstanding and unpaid 1952 Bonds.
From the proceeds of the bonds authorized by this Ordinance t(and after
—rat observing the priorities set forth in the 'foregoing paragraphs (A), (B),
(C), (D) of this Section 9), the City Treasurer shall next deposit in the 1952
"aterworks Revenue Bond Redemption Fund the sum of X3803000 representing the
principal amount of all of such outstanding and unpaid 1952 Bonds, to,?ather with
the additional sum of w7,600 representing the 2N premium incident to the Ciiy's
redemption of all of said out.sLanding and unpaid 1952 Bonds.
The a gregate of all sums so provided to be deposited in the said 1952
l!aterworks Revenue 'cond Redemption Fund is hereby irrevocable pledged solely for
74
purpose of redeeming and retiring the aforesaid outstanding 1952 fonds, in -
.ding principal, interest, and the redemption premium.
Said Citizens Bank & Trust Company shall forthwith secure the aggregate
all sums so deposited in said 1952 i•:aterworks Revenue Bond Redemption Fund by
dging to the City of Paducah, Kentuiigy, and to its City Treasurer and :•later
rd, obligations of the United States of America, or obligations the payment of
ch, both principal and ir:terest, are fully guaranteed by the United States,
ing a market value (exclusive of accrued intagest) at least equal to the full
unt of the aggregate of said deposit; provided, however, that when, on and after
ober 1, 1965 (or April 1, 1966, as the case may be), said 1952 Bonds are from
e to time presented for payment, paid, and surrendered for cancellation, the
resaid Citizens Bank & Trust Company may be permitted to withdraw a like amount
such pledged securities.
(E) The entire remaining balance of the proceeds of bonds initially
ued hereunder shall constitute the "Paducah Vater Works Construction Fund,"
eby created (for convenience hereinafter somatimes referred to simply as the
nsl�ruction Fund"), and shall be deposited in a bank or banks which are members
Federal Deposit Insurance Corporation (hereinafter sometimes referred to col
tively as the "Depository Bank"), and shall be applied to the extent necessary
not otherwise .provided, in paying the costs of the Project. Balances in
:ss of the amount insured by FDIC shall be secured at all times as hereinafter
vided. A true and accurate separate accounting shall be made of all deposits in
disbursements from said Construction Fund, and at no time shall there be any
ningling with other moneys of the City of Paducah, Kentucky.
I•Ioreys from time to time on deposit in said Construction Fund shall
secured by a valid pledge to the City of Paducah, Kentucky, and its ?ater Board,
direct obligations of , or obligations the principal of and interest on which
guaranteed by, the United States of America, having at all tit -.es a market
Lis (exclusive of accrued interest), at least equal to the balance maintained
on deposit therein. If at any tree there shall be on derosit in s^ -id Construction
Fund moneys in excess of the estimated disbursements on account of the Project for
the next ninety (90) days, the City, acting throagh its 17ater Board, reserves
the right to direct that the Depository Ban;t invest such excess funds in direct
obligations of , or obligations the principal of and interest or, ...hich are guaranteed
by, the United States L'overnment, which shall mature not later than eighteen (18)
months after the date of such investment and which shall be subject to redemption
at any time by the holder thereof. r;arnings received from any such investments
shall be deposited in the Construction Ftuid. July moneys remainin in the Construc-
tion x"und after all costs of the Project have t;ee: raid, as certified by ti.e res-
pective Consultin;; Zngineers, shall be transferred from the Const action -'und
^nd derosited in the "Paelac. h '.rater L'orks Depreciation rund," 'Lere:inafter created;
;provided, hor•:evor, that if the amount so available shall exceed ;;150,000, the
722
excess over ;,150,000 shall be deposited in the "Paducah Vater ?Scrks Revenue Bond
and Interest Redemption Fund of 19651" hereinafter created, and shall be credited
to the debt service reserve therein, for which provision is hereinafter made;
but if the amount so available for deposit in said debt service reserve shall be
mon; than sufficient to fill the same to the amount nrescribed to be accumulated
and maintained therein, any excess of bond proceeds still remaining shall be
deposited in the aforesaid "plater Depreciation Fund" as in the case of the first
;150,000 of excess bond proceeds.
Disbursements from said Construction Fund shall be made by checks
signed by the Treasurer of the City's 'later Board and countersigned by the Chair-
man thereof, but only if accompanied and supported by one or more vouchers signed
by or on behalf of one of the firms of Engineers having supervision of construc-
tion of said Project affirming that the payee of the check is entitled to payment
of the amount thereof for labor, materials or services earned and due under the
terms of an authorized contract relating to said Project.
Pending disbursements for the authorized purposes, the bond proceeds
as provided to be deposited in said Construction Fund shall be subject to a
first and paramount lien and charge in favor of the holders of bonds issued and
outstanding hereunder, and for their further security.
Section 10. From and after issuance and delivery of any bonds herein
authorized or permitted to be issued and so long as any thereof remain outstanding
and unpaid, the said Water corks shall be operated on a Fiscal Year basis be-
-inning on each July_1,and ending on the next June 303 and on 'that basis the
income and revenues shall be collected, segregated, accounted for and distributed
as follows:
(h) G separate and special flind or account of said City, distinct and
apart from all other funds and accounts, is hereby created, and is designated
and identified as the "Paducah Vater i'.or]ks Rev_ -nue Fund" (hereinafter sometimes
referred to as the "Revenue Fund"), which shall be maintained with a bank in
Paducah, A-ertucky, which is a menber of Federal Deposit Insurance Corporation
(hereinbefore and i:erainafter sometimes referred to as "FDIC"), and said City,
actin;; through its ?•later Board, covenants and agrees that it will deposit therein,
promptly as received from tire to time, all c.nsh revenues of the :Fater '.'.orks as
defined In Section 10 (C) of this Crdinance. The moneys in the Revenue fund
from time to time shall be used and disbursed and applied on behalf of the City
be said [•later Board only for the purposes, and in the manner and order of priori-
ties, specified in the succeeding zubsections of this Section 10, all as permitted
by applicable statutes, as .follows: .
(r) and special fund or account of said Water Works is
h -;-ruby created, distinct and apart from all other fund; s,.nd accounts, and the
TZ5
same is hereby designated and identified as the "Paducph '+later .corks Revenue Bond
and Interest redemption Fund of 1965" (hereinafter for convenience sorcetipes• re-
ferred to as the "Bond Fund"), which shall continuously be maintained so long as
any of the bonds hereir authorized or pormi.tted to be issued aro outstanding, in
a ban' ,which is a member of FDIC; and all moneys deposited therein from time to
time shall be used and disbursed and applied, and are hereby irrevocable pledged,
I
sole l; for the purpose of paying the principal of and interest on such bonds as
may be issued and outstanding from time to tine pursuant to the provisions of this
Ordinance, including parity bonds, if any are issued.
.The City, acting through said T-!ater Board, shall deposit in said Bond
Fund all sums received from any purchaser or purchasers of bonds issued hereunder
as representing accrued interest on such bonds to date of delivery; and the anaunt
so deposited shall be applied to payment of interest coupons next thereafter
matt;ring. Thereafter the City, acting through said rater Board, shall transfer
from the Revenue Fund to the Bond Fund on or before the 20th day of each month,
sums not less than:
W beginning on the 20th day of the first month after issuance
of the bonds, and continuing until ibcember 20, 1965, such
proportionate monthly sums as, together with accrued interest
to delivery, as above provided to be set aside at the tirre of
delivery, will be sufficient to accumulate in the Bond Fund
by December 20, 1965: a sum equal to the amount of the in-
terest coupons which will become due and payable on January.;,
1966$-
(ii)
966;(ii) beginning on the 20th day of the first month after issuance of
the bonds, and continuing until June 20, 1966, such proportionate
mentjrly sums as will be sufficient to accumulate in the Bond
Fund not later than Jure 20, 1966, a sum equal to the principal
amount of all outstanding bonds which will become due and payable
on July 1, 1966;
(iii) beginning January 20, 19663 a sum equal to one-sixth (1/6) of
the next succeeding interest installment to become due,on all
bonds then outstanding;
(iv) beginning July 20, 1966, a sum equal to one -twelfth (1/12)
of the principal of all bonds maturing on the next succeeding
July 1.
Beginning July 20, 1966, the City, acting through its Later Board
shall deposit in the Bond rund a sum equal to one -sixtieth (1/60) of the ag.;regate
I
amount of the principal of and interest cn all outstanding bonds maturing on and
I
prior to the ensuing July 1, computed as of July 1 in each year; provided, however,
that all sums deposited in the Bond Fund slrall constitute and accumulate therein
as a debt service reserve, until such ti:.e as there shall be accumulated in such
Bond Fund a sum equal to not less than the maximum amount necessary to provide
for a ent when due of both
pay > , principal of and interest on all outstanding bonds
during any subsequent fiscal year to final maturity; and thereafter the aforesaid
monthly deposits into the Bond rund may be suspended, but shall be resi,Ted whenever
authorized disbursemants therefrom shall reduce the balance therein be' -ow the
amount hereinabove prescribed, and shall be continued for such period of time as
724
may be required to restore and maintain the balance therein at such prescribed
lave 1.
(v) On or immediately after October 1, 1970, the City shall additionally
deposit, or cause to be deposited in said Bond Fund the excess then
becoming due and available from the Certificate of Tins Deposit
referred to in Section 9 (C) of this Ordinance, and therein shoim
to be �129,006.23. Such deposit shall be in addition to the deposits
otherwise required by (i), (ii), (iii) and (iv) above and shall not
have the effect of changing the provisions thereof in any respect.
In the event parity bonds are issued pursuant to the conditions and
restrictions hereinafter prescribed in that connection, themonthly deposits shall
be adjusted as provided in Section 14 of this Ordinance.
Moneys from time to time in the Bond Fund may be held in cash, in
which event the same shall be secured by a valid pledge of direct obligations
of, or obligations the principal of and interest on which are guaranteed by,
the United States )overnment, having at all times an equal market value; or the
same, or any part thereof, may, upon order of the hater Board be invested and
reinvested in interest-bearing obligations of, or obligations the principal of
and interest on :which ar--, guaranteed by, the United States Government, maturing
or subject to redemption at the option of the holder not later than five (5)
years from the date of investment or the final maturity date of bonds outstanding
pursuant to this Ordinance, whichever date is the earlier, Income from any such
investments shall be accumulated in said Bond Fund, and mey be invested in the
same manner. i ithdrawals shall be made from the debt service reserve if and to
any extent required at any time to prevent default in the _payment of principal
of or interest on any bonds which by their terms are payable from the Bond Fund;
and if necessary, securities held as investments of the debt service reserve shall
be converted into cash for such purpose; but no withdrawals therefrom shall be
made for any other purposes, and the City hereby irrevocable pledged all moneys
and securities in the Bond '!md (including the debt service reserve therein)
for such Purposes only. In the event any such permitted withdrawals are made,
the deficiency shall be restored as soon as revenues are available, as above
set forth.
When such amount of the bonds at any time issued and outstanding pur-
suant to this Ordinance shall have been retiroo.as that the amount then held in
the Bond Fund (including the dabt service reserve therein), is sufficient to
provide for payment in full of all such bonds remaining outstanding and unpaid,
no further deposits shall be required to be made into or for the credit of said
Bond Fund; and in such event the moneys in said Bond Fund may be applied to the
raym!ant and retirerent of all such outstanding bonds, whether as the same mature
from time to time, or by redemption or purchase, notwithstanding any other pro-
vision hereinabove made concerning the use and application of said Bond Fund;
and investments held therein may be converted into cash .for such purpose.
725
(C) A separate and special fund or account of slid ',rater Works is
hereby created, and is hereby designated and identified as the "Paducah Water
1 --forks Depreciation Fund" (hereinafter sometimes referred to simply as the "De-
preciation Fund"), which shall be maintained in a bank which is a member of
FDIC.
After observing the priority of deposits set forth in (B) above, there
-shall be transferred from the balance thereafter remaining in the Revenue Fund
each month, and deposited in the Depreciation Fund, a sum equal to ten per cent
of the balance of such monthly revenue, in addition to any excess bond
proceeds remaining after payment in full of all costs of the Project, to the
extent particularly set forth in Section 9 of this Ordinance.
In addition to the above deposits from the revenue Fund (and from
surplus bond proceeds, if any), there shall also be deposited in the Depreciation
Fund, as received, such connection fees or charges as may be exacted from users
of the Water '.'orks, the proceeds of all property damage insurance (except public
liability) maintained in connection with the Water 1,:orks, and the cash proceeds
of any surplus, worn out or obsolescent properties of the same, if the same be
sold upon order of the Water Board according to the conditions hereinafter pre-
scribed in that connection. The term "dash revenues" of the Water Works, as used
in this Ordinance, means all proceeds of water service charges, and does not
include the cash items enumerated in this paragraph.
The Depreciation Fund shall be available and may be withdra4m and used
b;, the Water Board for the purpose of paying the cost of ordinary repairs, re-
newals or replacements, and the cost of constructing extensions, additions and
improvements to the :rater l:'orks which will either enhance its revenue-producing
capacity or provide a higher degree of existing or prospective service.
At any tine when the accumulations in the Japreciation Fund shall exceed
anticipated and foreseeable needs for authorized purposes, all or any portion of
such excess may bo invested and reinvested upon order of the later Board in interest-
bearing obli,;ations of, or obligations the princi;:al of and interest on which are
guaranteed by the United States Government, maturing or subject to redemption at
the option of the holder not later than three (3) years after the date of invest-
mert; but as and when funds may be required for authorized purposes a sufficient
portion thereof shall be converted into cash and so applied. All investments for
the account of the %epreciation Fund shall be carried to the credit of slid 1 -Ind;
all income from investments and any profit from the sale thereof snall be cre,iited
thereto; and any expanses ;nciden't. to investment or reinvestmont., together with
any loss from forced conversion of irvestmrcnts into cast:, sill be charged thereto.
111 rayr.:nts into the above special il:nds shall be mala on or before
the twentieth (20th) day of each month, except that when the twent;.eth dny of any
nonth shall he a Sunday or a legal holiday then such payment shall be made on the
next succeeding business day.
(:;) After observing the priority of deposits set forth in paragraphs
(3) and (C) ,rbovo, all balances thereafter remaining in the Revenue Fund from
Mare to time shall be available for payment of the costs of operating the aforesaid
Yater .forks (including the costs of insurance, premiums on fidelity bonds, and
the costs of annual audits) and of maintainirs the save in a good state of repair.
(r) unless at the tike required, or foreseeably required, in order to
prevent default as stated in raraZraph (B) of this section, moneys from time to
tia:e derosited and accumulated in the Bond Fund in excess of principal of and in-
terest on ?ill outstanding bonds becoming due to and including the next ensuing
July 1 and the prescribed debt service reserve may be used and applied to the
purch-se and/or redemption of ahyp bonds outstanding pursuant to this Ordinance,
upon the follo;•;ina conditions:
(i) If bonds of a sin3le series are rz .._ _._ : subject to redemp-
tion a the option of the City ('.__' :.._ or other series a e
net at t&e time subject to redemr',_,r), City shall apply
the moneys available ill the pond Fend for the redemption
and payment of outstending bonds of such series which is
subject to redemption, to the mazixr`e amount which may be
feasible upon the next rermissible red?;np:Acre date;
(ii) If the bc-n'z; mors: than one outstanding se ries -'re sulnJeat
to rederry''^n, the City (to the extent fees ible, ;having due
regard fee c: e denominations of the veri.ous bonds-•rhieY arp
so subject t.- redemption) shell apply the available funds in
the Bond rind to the redemption of bonds of each series, in
the proportion th=at the bonds of each series at that tire
outstanding may bear to the bonds of all outstanding series
:4hich are then subject to redemption, without regard for the
initial amount of eny series;
(iii) -Tr the event that no bonds of any series outstanding under
the prov=isions of this Ordinance are at the time subject to
redemption in accordance with their terms, then the City
shall solicit tenders for the purchase of any and all bonds
%-hick may at the time be outstanding, by publishing in a
financial journal published in New York, ?dela York, or thi-
caoo, Illinois, end in a newspaper of „eneral circulation
throughout the Commonwealth of Itentucky, an invitation for
tenders, upon such terms and conditions as the City may
therein elect to prescribe; and upon receipt of tenders in
accordance therewith the City may apply moneys available
in the Bond Fund to the purchase thereof, but not upon terms
exceeding the terms of redemption which may be applied to
any outstanding bonds upon the earliest r,ermi.ssible re-
demption data thereof; and
(iv) Any Bonds so redeemed or purchased through application of
moneys in the Fond Fund shall forthwith be cancelled and
retired; and the sar..e shall not be held for the rurpose of
inve.str:ent, or again offered for sn.le.
All moneys held in any of the above special funds.zhall be kept
apart from all other municipal funds and shall be deorsited in a bank or barL s
,!hich are r.,mbers of FDIC, and all such deposits :✓hien cause the ag,;regate
of all deposits of the ?-e'ate'r Board in any bank to be in excess of the amount
secured by a surety bond or bonds or by pledge of direct obli,;ati.ons or by guar-
srteed bonds or securities of the united States ;overnrent having a marko t value
ec„ivalent to such deposit.
72 7
Section U. The City hereby recognizes as begin effective upon the
issuance and delivery of any of the bonds authorized to be issued ander this
Ordinance, a statutory mortgage lien upon the properties of the aforesaid muni-
cipal ?•'ater Uorks, and appurtenant facilities, together with all future additions ,
improvements, enlargements and extensions thereof, and the revenues derived from
the o;eration thereof, as provided by Section 96.400 of the Kentucky Revised
Statutes, the same being for the benefit and protection of the holders of all
bonds issued pursuant to this Ordinance; and the sane shall remain in full force
and effect until payment in full of all bonds authorized and permitted to be
issued under the provisions of this Ordinance, including p^city bonds if any be
issued subject to the conditions and restrictions prescribed by this Ordina,=5
in that connection; but it is acknowledged that said statutory mortgage lien is,
as of the date of the bonds initially authorized hereby, subject to the priority
of similar liens previously created and recognized as a part of the security and
source of payment of the City's 'Water 'W'orks Bonds," dated October 1, 1930, and
said City's "Hate nrorks Revenue Bonds, Series of 1952,11 'dated as of April 1,
1952; provided, however, that reference is hereby made to the previous provisions
of this Crdinance whereby the City has made due provision for,deposit and security
of sums sufficient for the payment and retirement in full of all bonds of both
of said previously issued series, either as the several bonds and coupons mature,
or by redemption in accordance with the terms thereof, all as particularly here-
inbefore -set forth.
Section 12. For assurance to the prospective owners and holders
from ti.::e to time of any and all bonds authorized and issued according to the
terms and provisions of this Ordinance (including the owners and holders of par-
ity bonds, if any be issued according to the conditions and restrictions herein
prescribed in that connection), the City further covenants and agrees that man-
agement, control and operation of the municipal :'ater i'.'orks will continuously be
vested in the ?-later Board, a public independent instrument, agency and instru-
mentality of the City created for said purpose, as aforesaid; but subject never-
theless to ultimate control by said City, through the exercise of statutory powers
vested in its governing body, of the full right and authority to govern and con-
trol (i) the issuance of parity bonds according to the provisions hereof, (ii)
the establistucent (and adjustment or revision from tiTe to time) of rates and
charges for water service rendered and rrovided by said municipal `'ate. ;:orks,
and (iii) the reserved right of the City, acting throu6h its governing body, as
aforesaid, to anBnd ordinances previously adopted, in so far as the same may
relate to the terms of office of the members of the ':.ater ioard, the manner of
electing or appointing. the same, the number thereof, and the functions vested in
and to be -,performed by seid T:ator !;card, all accordin to such corstitui.ional
or statutory authority and responsibilities as nay now or hereafter be vested
in the governing body of said City.
It is hereinbefore and hereafter provided in this Ordinance that said
City covenants and agrees either to Ierform in certain respects with regard to
obligations and commitments provided for the benefit, security and protection of
the owners and holders from tine .to time of bonds which may be authorized and issued
under the authority of this Ordinance, cr to cause such covenants and commitments
tc be performed on behalf of the City by said hater Board. 611 of such covenants
and commitments, whether stated as direct covenants and commitments of the City
itself, or as coirultmants on the part of the City to cause the same to be per-
formed, as may be indicated, by said lZater Board, are hereby acknowledged and recog-•-
nized to constitute ultimate covenants, commitments and obligations of the City
of Paducah; and in the event said 1 -Tater Board shall fail for any reason to perform
any or all of said covenants and commitments, the City reserves the right(whether
or not consistent with ordir_ances, resolutions or other proceedings purporting
to vest authorities in said '.:'iter Board) to perform such covenants and commitments
as direct obligations and commiitmerts of said City.
Section 13. The said City hereby irrevocably covenants and agrees:
with the holder or holders of any and all bonds at ar;,, time issued and outstandin.,
pursuant to authority cf this Ordinance, that so long as the same or any ,part
thereof or interest thereon remain outstanding and unpaid:
(6) It will faithf•illy and punctually perform all duties with refer-
ence to said Water Works and Project required by the Constitution
and laws of the Commonuealth of Kentucky, and by the terms and
provisions of this Ordinance.
(B) It will at all tines cause said Water `•forks to be operated for
the City by said i•'ater Board on a revenue-producing basis, and
will permit no free services to be rendered or afforded thereby.
(C) It will cause the said '.'.star !:'orks to be maintained for the
City by said Fater Board in good condition through application
of revenues her i.n provided to be available for operation and
maintenance, ns herein provided; and will cause unusual or ex-
traordinary repairs, renewals and replacements to be made, as
the sane may be required, through application of moneys ac-
cumulated end set aside into the Dapreciati.or, Fund.
(D) The City covenants and agrees that, so lona; as aW of the bonds
are outstanding, it will. not sell or ctaorwise dispose of any
of th3 Hater Works facilities or any !art thereof, and, except
as provided for in this Ordinance, it will not create or permit
to be crerted any charge or lien on the revenues thereof ranking
equal or prior to the charge orlleon of these bonds. Notwith-
stindin, the foregoing, the City may at any tine iersanently
abandon the use of, or sell at fair merke t value, any c= its
cater trcrks facilities, provided that:
(i) It i, in compliance :::.,ith all covan:nts and undertakings
in connection .pith all of its bonds or other obligations
then outstanding and payable from the rcver:ues of the 'tater
%o?ks, and the debt serrice reserve in the Bond Fund has
17cen ful W c st,�rlished, or is ' ein &cc1rnkz! ,ted by moni.11l3
deposits as in tris Ordinance provided;
T. :1i"_, n Lill, �aert of ale, apnly the proceeds tc either.
%.de,!c.sit in the :.e •r a'.
�=�� ;. ociation Fund Cor disposition as
Lhe erre of 0Lher roneys provided to be. deposited therein,
or (2) replacement cf the facility so disposed of by an-
other facility w'r,ich small be Ineorporate,l into the ',.Tater
7,Orks as hereinbefore provided;
7� 9
(iii) The Later hoard certifies, prior to any abandonment of use,
that the facility to be aLiandcned is no longer economically
feasible of producing net revenues; and
(iv) The T•'ater Board certifies that the estitrated net revenues of the
remaining 7 --'ester 11orks facilities .for tl_e then next succeeding
fiscal year, plus the estimated net revenues of the.facility
if any, to be added to the L'ater ?;orks, satisfy the earhings
test hereinafter provided in governing issuance of additional
bonds.
(E) It will establish, enforce, and collect rates and charges for services
rendered and facilities afforded by said Water Works; and the same shall
be reasonable and just, taking; into account and consideration the cost
and value thereof, the Operating Expenses thereof, and the costs of
maintaining said :rater t:orks in a good state of repair, proper and nec-
essary allowances for depreciation and for additions and extensions,
the amounts necessary for the orderly retirement Of all Outstanding
bonds and the accruing interest therreon, and the accumulation of re-
serves as herein provided; and such rates and charges shall be ade-
quate to meet all such requirements as provided in this Ordinance,
and shall, if necessary, be adjusted from time to time in order to
comply herewith.
The term "Operating Expenses," as herein used, includes all reasonable
and necessary costs of o-erating, r1_1nairing3 maintaining and insuring
the l=ater ::orks, but shall exclude any allowance for depreciation, payments pro-
vided to be made into the :40preciation Fund, and payments provided to
be made into the Bond Fund.
The term '4•let Revenues," as used anywhe:-a in this Ordinance (and par-
ticularly in Section 71j hereof relatin,; to conditions and restrictions
applicable to the issuance of parity bonds), is defined as meaning tate
gross water service revenues of said Water ltiorks, less "Operating
Expenses1! as hereinabove defined (and specifically excluding the excess
moneys which will become available on or immediately after October 1,
1970, as provided in Section 10 (B) (v) of this Ordinance).
(F) It trill not at any timre make any reduction in any prevailing schedule
of rates and charges for use of the services and facilities of the
Water Works, without first obtaining the written determination of a
Consulting Engineer of national reputation that the proposed reduction
will not adversely affect the ability of the City to meet all the
requirements set forth in this Ordinance.
(0) It will at all tin=es cause the revenues o£ the Eater l:'ores to be se-
gregated from all other revenues, moneys, and funds of the City, and
will cause the same- promptly and ragularly to be applied and distri-
buted into the special funds provided in this Ordinance in the manner
and with due regard for the priorities herein attributed thereto.
(11) It will cause the later Board to keep proper books of record and ac-
count, separate and clearly distinguishable from all other municipal
recordsz:and accounts, showing complete and correct entries of all
transactions relating to said t•:ater VTorks, and the same shall be avail-
able and open to inspection by any bondholder, and any agent or repre-
sentative of a bondholder.
(i) It will, within ninety (90) days after the end of each fiscal year,
cause an audit to be made of the books of record and account pertinent
to the l=ater t•:orlcs, by an independent state -licensed accountant not in
the employ of the City or of the t'.'ater Board or a monthly salary
basis, shotri.ng all receipts and disbursements, with comm=ents of the
auditor concerning whether the books and records are being kept in
complicnce with this Ordinance and in accordance with recognized ac-
countinZ practices, and will pronmyly mail a copy thereof to the ori-
ginal purchaser or purchasers of bonds issued hereunder. If requested
to do so, the city will furnish to any bondholder a condensed form
of the Ear-ance Sheet, and a condensed form of the Operating; &,port,
in reasonable detail. All expenses incurra:t in casuing such audits
to be made, and copies distribute, shall constitute proper expenses of
orerati.rg and maintaining the '.later §:orks, and may be paid from reve-
nues allocated for such purposes, as herein p=rovided.
(J) Any. }colder of said bonds, or Of any of tile coupons, may either at
�atr or in cqu.ity, by suit, action, mandateas, or other proceedin,;s,
antorce and compel performance by said City and its officers and agents,
of all duties imposed or required by gat: ox. this Ordinance in connec-
tion with the o; eraticn Of said '.later llorks, including the makir_ rnd
collecting of sufficient rates and seere;;aiion of the rzvearues and
Application thereof.
730
(K) If there be any default in the payment of the principal of or interest
on any of said bonds, then upon the filing of suit by any holder of
said bonds or any of the coupons, any court having jurisdiction of the
action may appoint a receiver to administer said Fater ;larks on behalf
of the City with power to charge and collect rates sufficient to provide
for the payment of any bonds or obli.-ations outstanding against the
same, and for the payment of Operating Expenses, and to apply the reve-
nues in conformity with this Ordinance and the provisions of the said
statute laws of Kentrcky aforesaid.
(i) The City u:•ill cause each municipal officer or othez person, including
personnel of the ?:'ater Board (but not including depository banks),
having custody of any moneys administered under the provisions of this
Ordinance to be bended at all times in an amount at least equal to the
maximum amount of such moneys in his custody at any tine; each such bend
to have surety given by a surety corporation qualified to do business
in Kentucky and approved by the ;.'atzr Board, and the premiums therefor
shall constitute a proper Operating Expense of the Tater ;.'orks, and may
be paid from moneys herein provided to be available for such purpose.
(i•!) It will procure (or ca.,se the ;rater Board to procure in the name of the
City), and at all times maintain in force, insurance on all insurable
properties constituting parts of , or being appurtenant to, the s'ater
L'orks, to the full insurable value thereof, against dar:a;e or destruc-
tion by fire, windstorm, and the hazards covered by the standard
"extended coverage" policy endorsements or provisions, the premiums
therefor to be paid as an Operating Expanse; and trill deposit all sums
collected under the terms of such policies in the !Depreciation fund.
(N) It will regularly employ from time to time a Consulting Engineer or
firm of Consulting Bngiaers of national recognition in the field of
water engineering to reake a physical inspection of tlha Water '.,'orks not
less often then once every five (5) ;ears, and to file in the offices
of the City Clerk and of the ;.'ater Board a written report of the physi-
cal condition thereof, sufficiency of maintenance practices, needed
repairs, replacements, rsner*als, additions, extensions, enlargements,
acquisitions or now installations, if any, together with a preliminary
estimate of the costs thereof and availability of funds therefor, and
such other comurents as may in the opinion of the Engineer or Engineers
be deemed necessary or appropriate. Such written reports shall be kept
on file in the said offices subject to inspection at all reasonable
tines by any holder of bonds or other obligations of the City relating
to the ?dater ?-'arks, and a complete copy of each such report shall be
furnished without demand to the original purchasers of bonds at each
public sale thereof.
Section Jt. The bonds authorized to be issued hereunder and from ti, -.,e
to time outstanding shall not be entitled Lo priority one over the other in the
application of the revenues :herein pledged for the payr:ent thereof, regardless
of the tife or Lures of their issuance, it being the intention 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 actually be issued and
delivered at different times. No other bonds or other obligations stall be
issued by the City and made payable from the revenues of the Tater ?'forks unless
the pled;;e of revenues for the same is expressly made subordinate and inferior
to the lien and pledge herein created; provided, however, said City hereby
res•;rves the right and privilege of issuing additional bonds, from timz to time,
paya )le frcm the revenues of said ?Fater ;7or'c_, equally secured by the statutory
mortgage lien upon th,, oair , provision for which is made Jr. }:p,S 96.!1100 (said
lien beim �.c'•:r:cwladbad to be effective upon ?ssuance of any bona ;aider author-
ity cf thia Crdir;.::cc), and sec;ircA by a pari L;/ lien upon and ratable ;ayablc frcm
: ach rcver.rQza, 'or thio purpose of ad lhi�, to, e -tending, or irprovin;; the
':,rks, prcvided in each instance that;
l') the facility or facilities to be built from 21-1e proceeds of the
additional parity bonds is or are ma-lc a Fart of the Pater 7Tor'rs and
its or Lhuir revenues are pledged as additional security for the addi-
tional paritj bonds :end the outstanding bonds;
(ii) the City and its ',Eater Board'. are in compliance :with all covenants
and undertakings in connection with all of its bonds then outstanding
and payable From the revenues of the ,later '°forks or any part thereof;
(iii) the annual Uet Revenues (as hereinabove defined) of the 1.1aterl"Orks for
a period of twelve (12) consecutive months in the period of eighteen
(18) months immediately precedin, the issuance of additional Pp.rity
bonds, are certified by M%indep„ndent state-licensed acco-..:_nt not
employed by the City ,r by the '.Tater Board on a monthly s:�l bccio,
to have been equal t least one and twonty hundredths (1.?C) ki.:
the average annual a_re*ents for principal and intere99 0-: ail '
than eutstan ding en, - ^:rom t1:e ,;;venues or t w "ate
the parity bonds t. 2r •orosed to be issued; and
the averaLe annual 'LCnDnue0 to be received during tlea five {�)
complete _fiscal yc-ar%. ':.. -, iately folloi ing the date when the fadil-
ity or facilities tc `.e I:uilt from the proceeds of such additional
parity bond;; shall be estimated to be co:nleted and placed in operation
are shoom by a certificate of a Consul-- Engineer or firm of Con-
'sulLing Engineers of national reputation in the field of water engi-
neering (copies of which shall be filed in the offices of the City
Clerk and of the 'Fater Board) to be at least equal to one and forty
hundredths (LIM ti Tres the average annual requirements for orincinal
and interest on all bonds t'-.en outstanding and payable from the ravenues
of the :-rater :'orks, and the parity bonds then proposed to be issued,
Provided , hcwev-r that in such certificate of such Consulting Engi-
neer or fire— onsulti.ng Engineers of national reputation it sha11
be recited that the same has igen prepared in consideration and recon
nition of not only the certification referred to in (iii) imredi.atel;
above, but also any changes in rates and charges for :-rater service
as t:+e sar:e have been mz;de effective mor to the issuance of such
parity bunds, together rith any increase or ecrease i. ^reratino
Lxyenses as n result of the platin„ in operation of suci addition:; or
improvements, and pry= c•tir r factor:affecting tine ?:et _ne-renues from
the `.Tater :crks as so added to and improved.
The City hereby covenants and agrees that in the event =?'i.tional series
of rarity bonds are issued, i
(i) adjust the month!-
as that prescribe rnual
debt service en the
(ii) adjust the amount of ve in the Bond Fund to a
sum equal to not less t: al d :bt ser-vice on the
bonds then outstandi.n; an, i y iaera0s, the addit i ono 1
debt service reserve to be r --dr__,'-n the ranner herein-
before provided, over n par; 7 re five (7) years frog:
the issuance o£ such parit., ' ..,,'•
make such additional bonds ble ns tc ^rincipal on Jaly 1 of each
year in which prircil'°1 r-, 1- and rayable as to int
_ - _ , -res; on Jan-
uary 1 and July 1 of ^_acl: , and schedule the principal maturities
of the parILL, 'send, in such mariner as to cause the aooregate annual
principal and interest requirements o^ the outstanding bonds and the
rarity bonds to be as nonrly equal as may ba feasible, taking into
account the denominations of the various series (e;ccept in the case of
advance refundin• according to tote provisions hereinafter set forth in
that connection).
The additional rarity bonds (sometimes hemin referred to as "_zrmitted"
to be issued), the issuance of which is restricted and conditioned by this Section
shall be understood to mean bonds ,payable from the revenues of said !•Iatcr 11orks on
a basis of equality ar_d Parity oath Ll:e bonds herein sreeifically authorized, and
shall not be deemed to include other bonds or oblivatiorn, the security and source
Of Payment of which are subordinate and subject to the _riority of the bonds amd
parity bonds herain, authroized to be issued. '_'ire C ty •expressly reserves the right
to issue its bonds or :ther obli;;ations payable from the revarues herein pledged,
?32
and not ranking on a basis of equality and parity with the bonds and parity bonds
herein othe n;ise referred to, without any proof of previous earnings or. -Net
z1avenues, but only if such bonds or other obligatio::s are issued to rrovide for
additions or extensions or improvements of the ::'ester l''orks, and only if the same
are issued in express recognition of the priorities, liens and rights created
and existing for the security, source of payment, and protection of the said
bonds and parity bonds herein authorized and permitted to be issued.
Nothing in this Section is intended or shall be construed to prevent
or restrict:
(A) The ordinary refunding of the initially authorized bonds, and/or
of any one or more series of parity bonds which may have been issued and are
outstanding under the provisions of this Ordinance, if such refunding does not
overate to increase, in any year until the final maturity of the outstanding
bonds which are not refunded, the aggregate of the principal and interest re-
quirements of the bonds to remain outstanding and the bonds which are refunded;
or
(B) Any refunding of the initially authorized bonds, and/or of any one
or more series of parity bonds w:_ich may have been issued and are outstanding
under the provisions of this Ordinance, more than six (6) months in advance of
the earliest rermissible redemption date of the outstanding bonds or parity
bonds which are to be refunded (hereinafter referred to as "advance refunding"),
if
(i) prior to the issuance of the refunding bonds the City shall have elected
to call the bonds to be refunded, for redemption on the earliest per-
missible redemption date in accordance with the terms thereof, and shall
have given notice of such action as in this Ordinance provided; and
(ii) moneys sufficient for payment, ;inen due, of the principal of and interest
on the bonds to be refunded and any premium or additional interest due
upon the redemption date are simultaneously with the issuance of the
refunding bonds deposited in a "Special Escrow Account" in the Bond
Fund, are irrevocably rledged exclusively for the payment, redemption
and retirement cf the bonds to be refunded, and are invested for the
account of such Special Escrow Account either in United States Govern-
ment securities or in Certificates cf TL, -,e -Deposit issued by an incor-
porated state or national bank or trust company and fully and contiah-
uously secured to maturity by a valid pledge of United States Government
securities havi.u:g an aoaregate market value not less than the face am -
cunt of such Certificates; and
(iii) the assured interest income from such investments is irrevocable pledged
to be paid as received from titre to time into the Bond Fund as in the
case of revenues from water service charges othen,,ise pledged to be
sat aside and deposited therein;
in which event the a3gragate of the principal ani' interest requirements of the
bonds to remain outstanding and tha refunding bonds so issued may, in any year
or years until such redemrtion date, exceed the aggregate of the annual rrincipal
and interest requirements prevailin;; in the absence of such advance refundin ,
by the amount of the pledged and assured interest ticome from such investments to
be received and paid into the Bond fund durin;; such ;ear u: years.
733
.iectior 15. It is hereby covenanted and agreed by the City with each
and every holder of revenue bonds issued and outstanding pursuant to this Ordinance
that the provisions of Unis Ordinance shall constitute a contract between the
said City of Paducah and the holder or holders of the revenue bonds herein
authorized to be issued, and after the issuance of any of said revenue 'bonds no
change or alteration of any kind in the provisions or orerations under this
Ordinance may be made; until all of the bonds have been paid in full, as to both
principal and interest; provided, that modifications, alterations and amendments
of this Ordinance and of the rights and obligations of the said City and of
the holders of revenue bonds issued and outstanding hereunder may be made as
in 'this section rrovided.
is the event that it shall appear desirable and to the advantage of
both the City and the holders of the revenue bonds, the City may propose such
modifications, alterations and arr--ndments in the following manner: the City's
Board of Commissioners shall adopt an Ordinance proposing such modifications,
alterations or amendments, but providing therein that the same shall not become
effective unless and until'it has had approval by the holders of the revenue
bonds as hereinafter set out. Promptly upon the adoption of said Ordinance the
City shall set a time and place for and call a meeting of the holders of the
revenue bends to be held in either the City of Louisville, Kentucky, or the City
of Paducah, rentucky. Aotice of the tir:e and place of the pectin., and in gen-
eral teras the matters to he submitted thereat shall be given to the holders
of the revenue bonds in the following manner:
(a) Not less than fifteen (15) days prior to the date set for the
neetin_, a cony of the Notice shall be mailed to each of the holders of revenue
bonds registered a, to principal at the address appearing on the registration
books and also to the original purchaser or purchasers of the revenue bonds;
(b) Notice of such meeting shall also be published in at least two
issues of (1) a financial journal published in the City of New York, =:'es York,
or in the Cit, of Chicago, Illinois, an,! (2) a newspaper published and of state-
wide circulation in the Commonwealth of rentucky, and (3) P. newspaper published
and of general circulation in the City of Paducah, rentucky; the first of each of
such publications to be made not less than fifteen (15) days prior to the date
set for the meeting and the second of such publications to be made not less than
seven (7) days nor more than ten (10) days prior to the date set for Bach reeting.
At such meeting there shall be submitted to the holders of the revenue
bonds for their approval the Ordinance tharutofore adopted proposinz, ',he modifi-
cations, alte=rations or amendments.
All holders of revenue bonds hereby authorized and outstandin;; at the
time of suchriaetin;; and also of the parity revenue bonds securad by the rond rural
731
hereinbefore creaied shall be entitled to vote thereat and attendance at such
meeting _nay be in person or by rroxy. Each Terson seeking to attend or vote
at any such meeting must, if required, produce such proof of ownership of reve-
nue bonds or of personal identity as shall be satisfactory to the inspectors
of votes. Every proxy shall be signed by the owner or by his duly authorized
attorney and shall be witnessed, and its genuineness, if questioned, shall be
established to the satisfaction of the inspectors of votes. The holders of rsve-
nue bcrdc and the holders of proxies present shall, y r-jority vote, irres-
pective of the amount represented by them, select two persons from, those present
to act as inspectors of votes, who shall Count all votes cast at such reeting,
and who shall make and file with the secretary of the muting their verified
written report in duplicate of all such votes so cast at said meeting.
The holders (or persons entitled to vote the sarz) Of not less t'sn
seventy'
i :ercent 170;) is a,;;;xvgaie principal amount of all of such revenue bends
entitled to vote must be presant at such meeting in person or by proxy in
order to constitute a quorum for the transaction of business, less than a
quorum, hon:•ever, having power to adjourn.
Any such modifications, alterations or amendments of this Ordinance, or
of any runts and obligations of the city, or of the holders of the revenue bonds
in any rarticular, may be approved at such maeting or at a due adjournment the
reei
hell in accordance with the provisions of this section, but, only by a resolution
July adopted by the affirmative vote, in parson or by proxy, of the holders (or
persons Entitled to vote the same) of sixty -s u: and t;:+e-thirds T) --r cent (6(-.-2/3')
or more it ager gale prir:cip.l amount of such outs' and ing reve.iue bond; provided,
however, that no such modifications, .niteratirns, or lmendr=nts shall be made
will (a)% permit an extension of the time of payment at maturity of the
principal of or ;-ayment of the interest on any revenue bonds, or a reduction in
the amount of princiTzal or the rate of interest thereon without written consent
of the holder thereof, or (b) reduce the r.•arcentage of holders or ravcnue bonds
required by the provisions of this section for the taking or any action under
this section.
A record of the proceedings of each suct: neetir.,; prepared and certified
by the secretary of the r.eeting and 1havin;; attached thereto an ori„_nal counter-
part of the r::p.;rt of the inspectors or votes and affidavits of mailing and pub-
lication of the=1oti.ce of the meetin.- shall be filed with the City Clerk of the
City, and thereuron the proposed modifications, alterations, and amendments
as aforesaid, chall1,acrme effective, but othoT,aise shall be null and void.
Section 16. I.f rrg aac'Ll.on, para.-raph, clause, or provision of this
Ordinance zhall be held invalid, the invalidity of such section, paragraph,
cn'-use, or provision shall nct affect any of the rcmairri.ng provisions of this
Ordinance.
7 5
Section 17. All ordinances, resolutions, and orders, or parts thorecf
in ccnflict with the provisions of this Ordinance, arz, to the extent of such
conflict, hereby repealed.
Sectior. 13. This Ordinance shall be. in full force and effect from
=nd after .ts adoption, signrture, attestation, and publication as provided by
lair.
I::TE^;)D:_u A;.:L; ;J7-ROVAL by the Board of Con"
,;;issioners
of tho City of raducah, K entia . clzy, at a meeting held on the 10th day of Au;,u ,
1965, and ordered held over in the office of the City Clerk, subject to puLlic
inspection, pending further consideration by said Board of Commissioners.
rINA LLi AIMPTS1 ^.T
BY T:;E LOA?D F COiUiISiiO:riu Gi r
iZ
CITY OF P2 UCAH, MENTUCYY, at a n:c-eting held on the 17th day o£ AuZust, 1965,
or, the .same occasion sio-pec: in oc r. sessibn.by the Mayor,. r.'ttested. Leder seal
by Vie City Cleek, and ordered td be published in The Paducah Gun-iemocrat,
Paducah, -Kentucky, on the earliest r',oss.ible date.
(SEAL)
ATTEST: Mayor
City of Paducah, Yentucky
ity Clerk
rERTT-FICATION
The undsrsipned, City Clerk of the City of Paducah, ,'•?cCracken Comby,
,entucky, hereby certifies that the foregoing is a true, complete and correct
copy of.'ar. Ordinance finally adopted by the Board of Coj:.missio nors o. said City,
signed by the ?"mayor thereof, and attested under seal by me as City Clerk, upor the
occasion o.f a properly convenad meeting of the Board ef.Commissioners of said City
held on the 17 t day of August, 1,-,65, as sho n by the off_cial records in my cus-
tody and tinder mry control. I furthar certify that I have delivered a true copy of
said Crdinence to The Paducch Sun-D>,mocrat, a ne:•:spzper p uaished in said City
of reducah, Yentucky, and having, the larzost circulation thard'ir., tr_th directions
that the same be published in full in the ea:•liest ;possible issue thereof.
i.ITTEESS my -hand. and. the seal of said Cd 1,y, this 17th day of .uoust,
1965.
(SEAL) City o£€;Glie2.t:, 1. .Tltuc�r