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HomeMy WebLinkAboutOrdinances Book 15, Page 917, No Ordinance Number917 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING THE ISSUANCE OF $2,500,000 PRINCIPAL AMOUNT OF "CITY OF PADUCAH, KENTUCKY, VOTED SEWER BONDS" FOR THE PURPOSE OF PROVIDING FUNDS TO DEFRAY ALL OR A PART OF THE COSTS OF CONSTRUCTING SANITARY SEWERS AND SEWERS FOR THE RELIEF OF EXISTING SEWERS, ALL WITH NECESSARY APPURTENANCES; ORDERING AND PROVIDING FOR THE LEVYING OF AN ANNUAL TAX SUFFICIENT TO PAY THE INTEREST ON AND PRINCIPAL OF SAID BONDS; PRESCRIBING THE FORM OF SAID BONDS AND INTEREST COUPONS AND THE MATURITIES THEREOF; AND PROVIDING THAT SAID BONDS SHALL BE SOLD AT AN ADVERTISED, PUBLIC, COMPETITIVE SALE, BUT ONLY IF AND WHEN APPROVED BY JUDGMENT OF McCRACKEN CIRCUIT COURT, AS PROVIDED BY LAW WHEREAS, the City of Paducah, Kentucky, is authorized by Section 157 of the Constitution, and by Section 66.050 of the Kentucky Revised Statutes to incur an indebtedness within the limits prescribed by Section 15$ of the Constitution of Kentucky, provided the incurring of said indebtedness is approved by two-thirds (2/3) or more of the votes cast thereon at an election held for the purpose of determining whether such indebredness shall be incurred; and WHEREAS, the construction of Sanitary Sewers, and Sewers for the relief of existine- Sewers, with necessary appurtenances, is deemed essential by the Board of Commissioners, and such construction is a proper public purpose; and WHEREAS by a certain ordinance adopted by the Board of Commissioners on July 20, 1965, an election was ordered to be held in the City of Paducah on the regular election day, November 2, 1965, for the purpose of ascertaininp the sense of the qualified voters of said City on the proposition of incurring an indebtedness in the principal sum of $2,500.00 by the issuance of general obligation bonds of said City, for the purpose of providing funds to defray all or a part of the costs of such undertaking, and a "Notice of Election" was duly published in The Paducah Sun-Demorat, a daily newspaper published in said City and having the largest circulation therein, in its issue of October 22, 1965, being not less than seven days nor more than twenty-one days prior to the election date as required by KRS 424.130(1)(d); and in addition thereto said Notice in the same form was published as a two - column display 'ad ' vertisement in the same newspaper in its issues of October 1$, 25 an29, 1965; and WHEREAS, the prescribed question was made to appear upon the ballots at said election, and the said election has been duly held and the results thereof have been officially determined and reported to the Board of Commissioners, and it appears that the incurring of said indebte ness was authorized and approved by more than two-thirds (2/3) of the voters who cast their votes upon said question; 918 NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, DOES ORDAIN, AS FOLLOWS: SECTION 1. It is hereby found and declared that at an election held in the City of Paducah on the regular election day, November 2, 1965, the question as to whether or not said City shall incur an indebtedness in the sum of $2,500,000 for the purpose for providing all or a part of the cost of constructing Sanitary Sewers and Sewers for the relief of existing sewers was duly and properly submitted to the qualified voters of said City; that the number of votes cast in favor of the incurring of said indebtedness was 5,1,08, and the number of votes cast against the incurring of said indebtedness was 1,396; and that more than two-thirds (2/3) of the qualified voters who voted cast their votes in favor of the incurring of said indebtedness, as required by Section 157 of the Constitution. SECTION 2. The City of Paducah, McCracken County, Kentucky, shall issue and sell, in accordance with the terms of this Ordinance $2,500,000 principal amount of "City of Paducah Voted Sewer Bonds," to be dated May 1, 1966, and to consist of five hundred (500) bonds of the denomination of $5,000.00 each, numbered consecutively from 1 to 500 inclusive. Said bonds shall be payable to bearer, shall be registerable as to principal only, and shall bear interest at a rate or rates not to exceed 6% per annum. the exact rate or rates of interest to be deter- mined by competition at a public, competitive sale as hereinafter provided in this Ordinance. Principal and interest shall be payable at the office of The Peoples First National Bank &. Trust Company, in the City of Paducah, Kentucky; provided, however, that in the terms of the offering of said bonds at public, competitive sale the purchaser or purchasers shall be notified that they may have the privilege of designating an additional and alternative paying agent if the same shall be (a) an incorporated state bank or trust company, or a national banking associa- tion, and (b) a member of Federal Deposit Insurance Corporation, and (c) is situated in a city outside of the Commonwealth of ,.entucky and within the continental United States (exclusive of Alaska) wherein there is a Federal Reserve Bank or a branch thereof. Bonds numbered 137 to 500, includive (all bonds maturing on and after November 1, 1976), shall be subject to redemption prior to their stated maturities, as a whole, or in part in the inverse order of their maturities (less than all of a single maturity to be selected by lot) on November 1, 1975, or on any interest due date thereafter, upon thirty (30) days prior notice which shall be given to the bondholders by publication at least once in a 919 newspaper published in and of general circulation in Kentucky and at least once in a financial newspaper or journal of national circulation published in New York, New York (and by registered mail to the owner or owners of anv then registered bonds which are to be redeemed). The City of Paducah shall pay to the holder of each bond redeemed in advance of its stated maturity, the face value thereof, together with accrued interest to the redemption date, at the applicable coupon rate, and together with additional interest equal to 3% of principal amount if redeemed on or prior to May 1, 1950; 2% of principal amount if redeemed on or after November 1, 1950, and on or prior to May 1, 1955; and 1% of principal if redeemed on or after November 1, 1955 to final maturity. The bonds shall mature as. to principal according to the following schedule; BONDS NUMBERED PRINCIPAL AMOUNT DATE OF MATURITY Inclusive 1-13 $ 65,000 November 1, 1967 14-26 65,000 November 1, 1965 27-40 70,000 November 1 1969 X41-54 55-69 70,000 November 1, 1970 70-55 75,000 50,000 November November 1, 1, 1971 1972 56-101 50,000 November 1, 1973 102-115 55,000 November 1, 1974 119-136 90,000 November 1, 1975 137-154 90,000 November 1, 1976 155-173 95,000 November 1,.1977 174-193 100,000 November 1, 1975 194-214 105,000 November 1, 1979 2.15-235 236-257 105,000 November 1, 1950 255-250 110,000 November 1, 1951 251-304 115,000 120,000 November November 1, 1, 1952 1953 305-329 125,000 November 1, 1954 330-355 356-352 130,000 November 1, 1955 353-410 135,000 140,000 November November 1, 1, 1956 1957 411-439 440-469 145,000 November 1 1955 150,000 November 1, 1959 470-500 155,000 November 1, 1990 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 validating 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 sufficent 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. 920 In case any bond issued hereunder shall become mutilated or be destroyed or lost, the City shall, if not then prohihited by law, cause to be executed and delivered a new bond of like date, number, maturity and tenor in exchange and substitution 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 destroyed or lost, upon the holder or owner paying the reasonable expenses and charges in 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 satisfactory to said city. SECTION 3. 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 owner 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 registered bonds shall be payable only to the registered holder, his legal representatives or assigns. Such registered bonds shall be transferable to another registered holder, or back to bearer., only upon presentation to the City. Treasurer 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 4. Said bonds and the interest coupons appurtenant thereto shall be in substantially the following forms (except for numbers, maturities and interest rate or rates): (FORM OF BOND) UNITED STATES OF AMERICA COMMONWEALTH OF KENTUCKY COUNTY OF McCRACKEN CITY OF PADUCAH No. VOTED SEWER BOND $5,000.00 KNOW ALL MEN BY THESE PRESENTS: That the City of Paducah, a municipal corporation in the County of McCracken and Commonwealth of Kentucky, for value received, hereby acknowledges itself to owe and hereby promises to pay to the bearer on November 1, , the principal sum of $5,000.00, together with interest on said principal sum from the date hereof until paid, at the rate of per annum; such interest to the maturity hereof to be paid on November 1, 1966, and semiannually thereafter on May 1, and November 1 in each year, upon presentation and surrender of the annexed interest coupons as they severally mature, both interest and principal being payable in lawful money of the United States of America at the principal 921 office of The Peoples First National Bank & Trust Company, in Paducah, McCracken County, Kentucky f_; or, at the option of the holder, at the Principal office of in the City of State of .7 (*Passage in brackets to be omitted if Purchaser does not designate an alternate paying agent meeting the prescribed qualifications.) For the payment of this bond and the interest hereon, when due, the full faith, credit, and resources of said City are irrevocably pledged. This bond is one of a series of bonds of like form, tenor and effect (except for numbers, maturities and interest rates), aggregating the principal sum of $2,500,000, authorized by an Ordinance duly adopted by the Board of Commissioners of the City of Paducah, Kentucky, and issued for the purpose of providing all or a part of the costs of constructing sanitary sewers and sewers for the relief of existing sewers, all being done pursuant to the affirmative approval of the voters of said City, given at an election held on November 2, 1965, in conformity with Section 157 of the Constitution of Kentucky and Section 66.050 of the Kentucky Revised Statutes, now in full force and effect. At said election, more than two-thirds (2/3) of the voters who voted on the question of incurring said indebtedness cast their votes in favor thereof. The incurring of the indebtedness evidenced by said bonds (of which this bond is one ) has been approved by ,judgment of McCracken Circuit Court, McCracken County, Kentucky, in an action instituted for the purpose of seeking said approval pursuant to Sections 66.210 and 66.220 of the Kentucky Revised Statutes, and said judgment has become final. Bonds of said series numbered 137 to 500, inclusive (all bonds maturing on and after November 1, 1976), are and shall be subject to redemption prior to stated maturities at the option of the City of Paducah, Kentucky, as a whole, or in part in the inverse order of their maturities (less than all of a single maturity to be established by lot), on November 1, 1975, or on any interest due date thereafter, upon thirty (30) days prior notice which shall be ,given to the bondholders by publica- tion at least once in a newspaper published in and of general circulation in Kentucky and at least once in a financial newspaper or journal of national circulation published in New York, New York (and by registered mail to the owner 6r owners of any then registered bonds which are to be redeemed). Upon redemption, the City of Paducah will pay to the owner and holders of the bonds redeemed, the face amount thereof, 922 together with accrued interest to the redemption date, at the rate specified in each bond, and together with additional interest equal to 3% of principal amount if redeemed on or prior to May 1, 1980; 2% of principal amount if redeemed on or after November 1, 1980, and on or prior to May 1, 1985; and 1% o£ principal if redeemed on or after November 1, 1985 to final maturity. This bond is fully negotiable but may be registered as to principal only in the name of the holder on the books of said City in the office of its City 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 RECITED, CERTIFIED AND DECLARED that all acts, conditions and things required by law to exist, to happen and to be performed precedent to and in the issuance, sale and delivery of this bond do exist, have happened, and have been performed, in due time, -form and manner by the appropriate parties, as provided by law; that this bond and the series of which it is a part, together with all other indebtedness of said City of Paducah, existing at the time of the delivery hereof, does not exceed any limit of indebtedness prescribed by the Constitution or Statutes of the Commonmealth of Kentucky; that provision has been made for the levying.and collecting of an annual tax sufficient in amount to pay the principal of and interest on this bond and the series of which it is.a part, as and when the several bonds and coupons become due and payable; that provision has been made for the segregation and pledging of the proceeds of said tax for said purpose; and that the full faith, credit and resources of said City of Paducah, Kentucky, are hereby irrevocably pledged for the prompt payment of this bond and the series of which.it is a part and the interest coupons thereto attached, as the same from time to time become due and payable. IN TESTIMONY WHEREOF, the City of Paducah, Kentucky, has caused this bond to be executed in its name and on its behalf by the duly authorized facsimile of the signature of its Mayor and has caused an authorized facsimile of its corporate seal to be hereto affixed, attested by the validating manual signature of its duly authorized City Clerk; and has caused the interest coupons hereto attached to be executed by the facsimile signatures of said Mayor and City Clerk; all being done in the Commonwealth of Kentucky as of the first day of May, 1966. 923 (Facsimile of SEAL) ATTEST: (Manual Signature) City Clerk (FORM OF COUPON) Bond No. CITY OF PADUCAH, KENTUCKY By (Facsimile Signature) Mayor Coupon No. *Unless the bond to which this coupon is attached shall have been called for Prior redemption (This redemption legend to appear only on coupons maturing on and after May 1, 1976.) On the first day of , 19 , the City of Paducah, Kentucky, hereby promises to pay to the bearer the sum of t in lawful money of the United States of America, at the principal office of The Peoples First National Bank & Trust Company, in Paducah, McCracken County, Kentucky ** L; or, at the option of the holder, at the principal office of , in the City of (Passage in brackets to be omitted if purchaser does not designate an alternate paying agent meeting the prescribed qualifications:) State of 7, being interest then due upon its Voted Sewer Bond, dated May 1, 1966, No. ATTEST: CITY OF PADUCAH, KENTUCKY By (Facsimile Signature) (Facsimile Signature) Mayor City Clerk (FORM OF REGISTRATION) Date of me of Signature of Registration Registered Owner City Treasurer SECTION 5. There shall be levied and there is hereby levied upon all property in the City of Paducah, Kentucky, which is now or may here- after be subject to taxation for City purposes, a direct annual tax, in addition to all other taxes, sufficient in amount to pay the principal of and interest on the indebtedness evidenced by the bonds and coupons author- ized by this Ordinance, as and when the several bonds and interest coupons respectively become due and payable, this tax being levied as required by Section 159 of the Constitution of the Commonweakth of Kentucky and per- tinent provisions of the Kentucky Revised Statutes.' The rate of such tax shall be determined in each year by the Board of Commissioners of the City of Paducah and said special tax shall be levied annually as and when other City taxes are levied. The proceeds of said special annual tax shall, when and as collected, be kept in the City .Treasury as a separate fund, hereby 924. designated the "Voted Sewer Bond and Interest Fund" (for convenience herein- after sometimes referred to simply as the "Bond Fund"), and the same is hereby inviolably appropriated and pledged to the payment of the principal of and interest on the said bonds and shall never be used for any other purpose. Moneys from time to time deposited in said Bond Fund shall be secured and/or invested and reinvested as provided in Section 9 of this Ordinance. SECTION 6'. It being mandatorily required b.y"KRS 66.210 and 66.220 that an action be filed in McCracken Circuit Court for the pur- pose of seeking an approving ,judgment of the Court, holding that the indebtedness evidenced.by these bonds has been properly submitted to and approved by the voters of the City of Paducah, and may properly and validly-be'incurred within constitutional limits; and some six months having elapsed since said election without anyone having come forward and instituted an action wherein such mandatory requirement might be met -- it is obviously necessary.that the City of Paducah initiate such an action, and the initiation thereof is hereby authorized. Said action shall be a declaratory judgment suit instituted by the City of Paducah, as plaintiff, and naming as defendant one or more citizens and taxpayers of said City whom the Court shall be reouested to designate as one or more class representatives to defend for himself or themselves and for all citizens and taxpayers similarly situated. The Court costs shall be borne by the City of Paducah, such costs to include, if so ordered by the Court, a reasonable fee for the services of an attorney selected by such class representative or representatives or appointed by the Court to represent him or them. SECTION 7. When and if an approving .judgment of McCracken Circuit Court is entered in said action as required by law, Corporation Counsel shall notify the Mayor, and it is hereby determined that all of the bonds authorized by .this Ordinance shall be offered for sale at an advertised, public, competitive sale, which shall be held at a regular, adjourned or special meeting of the Board of Commissioners as the Mayor may determine. The bonds shall not be sold for less than their par or face value, together with interest from May 1, 1966 to the date of delivery and payment. If an approving judgment is ent§red by McCracken Circuit Court in said action, the Mayor and the City Clerk are authorized to sign a "Notice of Sale of Bonds", and cause the same to be'published in each of the following: (a) The Paducah Sun -Democrat, a legal newspaper published in Paducah, Kentucky, and having the largest circulation 925 therein, (b) The Courier -Journal, Louisville, Kentucky, a legal newspaper having statewide circulation, and (c) The Daily Bond Buyer, New York, New York, a financial newspaper or ,journal of general circulation among bond buyers; all in conformity with the requirements of KRS Chapter 424. Said notice shall contain the date, hour, and place at which sealed, competitive bids shall be received and shall set forth the nature of the bonds, the fact of their approval by the voters, and the fact that an approving Judgment has been obtained as required by law. The Mayor and the CityClerk are further authorized at the same time to sign and furnish to interested bidders, on request, a "Statement of Terms and Conditions of Bond Sale," which shall give a more detailed description of the bonds and set forth with greater particularity the conditions of the sale, including the requirement of a good faith deposit with each bid in a sum equal to two per cent (2%) of principal amount, and particularly a condition *unless said approving judgment shall already have become final), to the effect that the sale is to be held subject to the said judgment of McCracken Circuit Court becoming final, either by expiration of the appeal period, or, if appealed, by af£irmance:of the Court of Appeals of Kentucky. The bonds shall not be delivered to the purchaser until and unless said ,judgment becomes final as above set forth. In addition to the terms and conditions specifically prescribed in this Ordinance, the Mayor, upon advice of the Fiscal Agents, may prescribe other terms and conditions such as are customary in connection with the sale of municipal bonds and which may tend to bring about orderliness and uniformity in the competitive bidding. At a regular, adjourned, or special meeting held at the time and place of the sale, the Board of Commissioners shall, by Resolution or Ordinance, establish the rate or rates of interest for the bonds in conformity with such bid as may be accepted; and shall also, if the hereinabove prescribed conditions are met, designate an Alternate Paying Agent for principal and interest. The right to reject bids shall expressly be reserved. SECTION 8. When the bonds are sold and delivered, any sums received as accrued interest shall be set aside into the Bond Fund established in Section 5 hereof, and shall be applied to the payment of the next maturing interest coupons annexed to said bonds. Fr om the general funds of the said City and/or from the proceeds of the sale of said bonds, there shall be paid (to the extent not already paid, or included in the contract for the Fiscal Agents) all expenses incident to the conducting of the election and the issuance, sale and delivery of the bonds, including the fee of the Fiscal Agents employed by the City to assist in the preparation and sale of said bonds. The entire remaining proceeds of sale shall be deposited and maintained by the City Treasurer 926 as a fujd separate and distinct from all other public funds of the City of Paducah in an account which shall be designated as the "Sewer Construction Fund," and all moneys in said fund are hereby set aside exclusively for the purposes authorized by the voters of said City, as hereinabove recited. Payments out of said fund or account shall be made only upon certification of the architect or engineer in charge of the authorized sewer construction program, approved in each case by the Mayor, City Manager and/or City Treasurer, according to current and authorized procedures from time to time. Moneys from time to time deposited in said Construction Fund shall be secured and/or invested and reinvested as provided in Section 9 of this Ordinance. SECTION 9. Moneys from time to time deposited, or available for deposit, in the Bond Fund and in the Construction Fund (hereinbefore identified) shall be, either: (a) deposited in a bank or banks which are members of Federal Deposit Insurance Corporation; and if merely deposited therein, shall in every case be secured to the full amount on deposit from time to time by a valid pledge of direct obligations of the United States Government having an aggregate market value (exclusive of accrued interest) not less than 110% of the amount at any time on deposit, or (b) invested by the City Treasurer, with the authorization or approval of the City's Board of Commissioners, in one or another, or a combination, of (1) bonds, notes, bills or other obligations of the United States Government, or (2) certificates of time deposit, issued by an incorporated state bank or trust company, or by a national banking association, but only if such certificates of time deposit comply with the following require- ments: (i) that each such certificate of time deposit be secured, in full and to maturity, both interest and principal, by a valid pledge of direct obligations of the United States Government, which shall be delivered into the safe custody of some other bank or trust company meeting the same qualifications, (ii) and provided that so long as the issuer or issuers"of such certificates of time deposit shall not be in default in the payment of principal of or interest thereon, when stipulated to be due', the issuer thereof may be permitted to substitute in such pledge, United States Government securities of like character and of at least the same market value, (iii) so long as the issuer of such certificate or certificates shall not be in default, as aforesaid, such issuer or issuers shall be entitled to receive, and shall be paid, any interest income derived from the pledged securities, and (iv) in the event the issuer or issuers of any of such cer- tificates of time deposit shall default in the payment of any amount, upon any date stipulated for the payment thereof, then the City shall be entitled to direct (without qualification) that the holder or holders of the pledged securities immediately convert the same into cash and provide such cash proceeds, on the same day, to the City Treasurer. In the case of any investments which may be made for the account of the Bond Form, the maturity dates of such investments shall be correlated with the scheduled due dates of principal and interest of the bonds. 927 In the case of any investments which may be made for the account of the Construction Fund, the City shall obtain from the archi- tects or engineers who may from time to time be charged with supervision of the construction of the sewer construction program for which the bonds hereinabove referred to are issued, a projected schedule of the time or times when cash will be required for payment of the costs thereof; and investments made foi- the account of said Construction Fund shall be made with due regard for the cash requirements so indicated. Any interest income earned and received by the City for the account of the Bond Fund, or for the account of the Construction Fund, shall be credited to said respective funds; and any expenses, profits, or losses incident to investments made for either of said funds shall be charged to or credited to such respective funds, as the case may be. SECTION 10. This Ordinance shall be in full force and effect as prescribed by law. INTRODUCED, SECONDED, given first reading, and first -reading approval, at a meeting of the Board of Commissioners of Paducah, Kentucky, held on the 22nd day of March, 1966; and ordered held over in the office of the City Clerk, subject to public inspection, pending further consideration at a subsequent meeting.' GIVEN SECOND READING AND FINALLY ADOPTED by the Board of Commissioners of the City of Paducah, Kentucky, on the 26th day of April, 1966, signed by the Mayor on the same occasion, ordered to be enrolled, attested under seal by the City Clerk, ordered to be published as provided by law; and declared to be in full force and effect from and after publication. - Mayor (SEAL) Af)y ST: City Clerk Introduced by the Board of Commissioners March 22, 1966 Adopted by the Board of Commissioners April 26, 1966 Recorded by Sarah Thurman, City Clerk, April 26, 1966.