HomeMy WebLinkAboutOrdinances Book 17, Page 773, Ordinance Number 71-10-550773
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BOND ORDINANCE NO. 71-10-550
AN ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH,
KENTUCKY, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF THREE
HUNDRED TWENTY THOUSAND DOLLARS ($320,000) PRINCIPAL AMOUNT OF CITY OF
PADUCAH PARKING FACILITIES REFUNDING AND IMPROVEMENT REVENUE BONDS, UNDER
THE PROVISIONS OF SECTIONS 82.050 AND 58.010 THROUGH 58.140, INCLUSIVE, OF
THE KENTUCKY REVISED STATUTES, FOR THE PURPOSE OF PROVIDING FOR THE REDEMPTION
AND REFUNDING ON JANUARY 1, 1973, OF CERTAIN OUTSTANDING CITY OF PADUCAH PARKING
FACILITIES REVENUE BONDS, DATED JANUARY 1, 1968, AND FOR THE PURPOSE OF PROVIDIN
FOR ADDITIONAL PARKING FACILITIES TO BE ADDED TO AND INCORPORATED IN THE EXISTIN
PARKING FACILITIES PROJECT OF THE CITY, CONSISTING OF THE COMBINED AND CONSOLI-
DATED MUNICIPAL OFF-STREET AND ON -STREET (CURB -LINE) PARKING FACILITIES OF THE
CITY; SETTING FORTH THE TERMS AND CONDITIONS UPON WHICH SAID $320,000 OF REVENUE
BONDS ARE TO BE AND MAY BE ISSUED AND OUTSTANDING; AND PROVIDING FOR THE
COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SAID COMBINED AND
CONSOLIDATED PUBLIC PARKING PROJECT.
WHEREAS, the City of Paducah, in McCracken County, Kentucky, owns and
operates the existing combined and consolidated public parking project of the
City, consisting of certain off-street parking facilities located at the
southwest corner of the intersection of Kentucky Avenue and South Third Street
in said City, together with the existing on -street (curb -line) parking
facilities of the City, and charges and collects certain fees for parking of
motor vehicles on both said off-street and on -street facilities, and
WHEREAS, in that connection, the City has presently outstanding against
said public parking project a total of $118,000 principal amount of City of
Paducah Parking Facilities Revenue Bonds, dated January 1, 1968 (the "Bonds of
1968"), now scheduled to mature on January 1 in each of the respectibe years,
$4,000 in 1972, $5,000 in 1973-1976, $6,000 in 1977-1979, $7,000 in 1980-1982,
$8,000 in 1983-1984, $9,000 in 1985-1986, $10,000 in 1987,and $11,000 in 1988,
bearing interest at the rate of 6. per annum on $9,000 of Bonds maturing 1972-
1973, at the rate of 5% per annum on $47,000 of Bonds maturing 1974-1981, and
at the rate of 5-1/4% per annum on $62,000 of Bonds maturing 1982-1988; of which
$109,000 of Bonds maturing on and after January 1, 1974, are subject to
redemption on and after January 1, 197 upon terms of 103 plus accrued interest;
which Bonds of 1968 were issued pursuant to an Ordinance enacted on December 12,
1967, and which Bonds of 1968 by their terms are payable from and secured by the
revenues derived from the operation of said existing Combined and consolidated
public parking project, and
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WHEREAS, it is deemed advisable and for the best interest of the City,
to provide for the redemption and refunding as of January 1, 1973, of all of said
outstanding Bonds of 1968 (and to escrow sufficient funds at this time ro provide
for all principal and interest payments falling due on said Bonds of 1968 on and
prior to January 1, 1973), in order to enable the City at this time to finance
additional parking facilities to be incorporated into said combined and consolida�
ted public parking project and to prescribe terms and conditions pursuant to
which additional bonds may be issued in the future to provide for additional
future parking facilities, with such additional bonds ranking on a parity with
the Bonds of 1971 authorized herein, and
WHEREAS, existing traffic conditions upon the commercial streets of said
City necessitate that the existing parking facilities of the City be added to,
extended and improved so as to further relieve traffic and street congestion,
prevent abuse of parking privileges, increase parking privileges, accelerate the
free movement of traffic, and as a part of the municipal traffic system promote
the public safety, convenience and welfare, and
WHEREAS, it is the desire and intent of this Board of Commissioners, at
this time, to adopt this Ordinance, authorizing and providing for the issuance
Of its Refunding and Improvement Revenue Bonds in the amount of $320,000 for the
purpose aforesaid, and to express special covenants with respect to the operation
of said project, and providing for the rights of the holders of said Bonds of 197
and the coupons appertaining thereto and for the enforcement thereof,
NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY
DOES ORDAIN AS FOLLOWS:
SECTION 1. DEFINITIONS.
As used in this Ordinance, unless the context requires otherwise:
A. The "Bonds of 1968" refers to the outstanding City of Paducah Parking
Facilities Revenue Bonds, dated January 1, 1968, in the original authorized amoun
of $130,000, of which there are now $114,000 of Bonds outstanding, as set out in
the preamble hereto.
B. The "1968 Bond Ordinance" refers to the Ordinance of the Board of
Commissioners of the City of Paducah, authorizing said Bonds of 1968, which
ordinance was enacted by said Board of Commissioners on December 12, 1967.
C. The terms "Bonds" or the "Bonds of 1971" shall be used synonymously
in this Ordinance and shall be deemed to refer to any of the Bonds of the origina
authorized issue of $320,000 of Bonds, specifically authorized by this Ordinance.
D. The "1971 Bond Ordinance" refers to this Ordinance.
775
E. The term "parity bonds" means bonds issued in the future, in addition
to the $320,000 of Bonds of 1971 herein specifically authorized, which bonds issu
in the future will, pursuant to the provisions of this Ordinance, rank on a basis
of parity with said outstanding Bonds of 1971, as to priority, security and sours
of payment, and does not refer to any bonds which may be issued in the future so
to rank inferior to the security and source of payment of said outstanding Bonds
of 1971.
F. The terms "public project," or "public parking facilities Project,--
or
roject,"or "project," shall be used synonymously in this Ordinance and shall be deemed to
refer to the existing on -street (curb -line) parking facilities and the now existin
off-street parking facilities located at the southwest corner of the intersection
of Kentucky Avenue and South Third Street in the City of Paducah, which facilities
were ordered by the 1968 Bond Ordinance to be combined into a single project and
to be operated as a single, combined and consolidated revenue-producing public
parking facilities project.
G. The terms "public parking facilities construction project," or "parkin.
construction project," or "construction project," sjall be used synonymously and
shall be deemed to refer to the acquisition of additional parking facilities to
be added to and incorporated in the aforesaid combined and consolidated public
parking facilities project of the City.
SECTION 2. MUNICIPAL OFF-STREET AND ON -STREET (CURB -LINE) PARKING
FACILITIES TO CONTINUE TO BE OPERATED AS A SINGLE, COMBINED
AND CONSOLIDATED REVENUE-PRODUCING PUBLIC PROJECT.
The action of the Board of Commissioners in the 1968 Bond Ordinance, in
ordering that the existing municipal off-street parking facilities (located at the
southwest corner of the intersection of Kentucky Avenue and South Third Street in
said City) and the municipal on -street (curb -line) parking facilities of the City
be combined into a single project and constitute a single combined and consolidate
revenue-producing public parking facilities project and that same be owned, con-
trolled, operated and maintained on a combined and consolidated'basis, and on a
revenue-producing basis, is hereby ratified and confirmed. It is further deter-
mined and ordained that sb long as any of the Bonds of 1971 hereinafter authorized
and any parity bonds shall remain outstanding, said public parking facilities
project shall continue to be owned, controlled, operated and maintained by the Citi
as a single, combined and consolidated revenue-producing public project pursuant
to Sections 82.050 and'58.010 through 58.140 of the Kentucky Revised Statutes, for
the security and source of payment of said Bonds of 1971 and of any additional
parity bonds.
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SECTION 3. CALL AND REDEMPTION OF OUTSTANDING BONDS OF 1968.
The City of Paducah, Kentucky, hereby elects to call in for redemption
and payment on January 1, 1973, according to the redemption provisions and upon th
terms required in that connection, all of its outstanding and unpaid City of
Paducah Parking Revenue Bonds, dated January 1, 1968, which are then outstanding,
such'redemption to be accomplished under the authority of the 1968 Bond Ordinance;
and the City further elects to provide for the deposit into escrow, as hereinafter
set out, prior to the issuance of the Bonds of 1971, of sufficient amounts to meet
all interest and principal payments falling due on said Bonds of 1968 on and prior
to January 1, 1973.
The City Clerk is herebu authorized and directed to execute the appropriates
form of "Notice of Redemption of Bonds," complying with the prescribed require-
ments, and to cause the same to be published in the prescribed manner on two
occasions, once prior to the issuance of the Bonds of 1971 herein authorized, and
once in the month of November, 1972, which is more than thirty days prior to Jan-
uary 1, 1973, the scheduled date of redemption of said Bonds of 1968.
SECTION 4. ISSUANCE OF BONDS OF 1971 AT HIGHER RATE(S) THAN
BONDS OF 1968 IS AUTHORIZED PURSUANT TO KRS 58.440.
In accordance with Section 58.440 of the Kentucky Revised Statutes, as
amended, it is hereby determined that the Bonds of 1971 authorized herein may be
issued and sold to bear interest at a rate or rates higher than the rates applica-
ble to the Bonds of 1968 to be refunded through the application of a portion of tl
proceeds of the Bonds of 1968, as it is hereby determined that the financing of tl
cost of the acquisition and construction of the parking construction project, as
defined herein, may be accomplished to the best advantage in the public interest
of the citizens, residents and taxpayers of the City of Paducah, only by combininc
the same with the refinancing of said outstanding Bonds of 1968, at a rate or rate
of interest which may be higher than the rate or rates applicable to the Bonds of
1968; accordingly, such action is necessary and desirable in the public interest.
SECTION 5. AUTHORIZATION OF BONDS.
For the purpose of defraying the costs (not otherwise provided) of the
retirement, fedemption and refunding of the outstanding Bonds of 1968 and of the
acquisition and construction of the parking construction project, including all
principal, interest and redemption premium necessary to accomplish the retirement
and refunding of said Bonds of 1968, plus all preliminary expenses pertaining to
said parking construction project, the cost of land acquisition, the cost of parki
meters to be installed thereon, limestone base, concrete sidewalks, curbs, gutters
L]
and driveways, asphalt surfacing, legal and administrative costs, fee of Fiscal
Agent, publication costs and all incidental expenses, there are hereby authorized
to be presently issued and sold Three Hundred Twenty Thousand Dollars $320,000)
principal amount of City of Paducah Parking Facilities Refunding and Improvement
Revenue Bonds, dated November 1, 1971, in the denomination of $5,000 each, and
numbered 1 to 64, inclusive.
Said Bonds of 1971 shall bear interest from November 1, 1971, payable
semi-annually on the first days of May and November in each year, and shall bear
interest at a rate or rates to be determined by Resolution to be adopted by the
Board of Commissiore rs of the City at the time of the public sale of said Bonds
of 1971, as hereinafter more specifically provided.
The numbering, maturities and principal and interest requirements of said
$320,000 of Bonds of 1971, based upon a tentatively estimated interest rate
of six and one-fourth percent per annum, are as follows:
SECTION 6. PROVISIONS AS TO PLACE OF PAYMENT,
PRIOR REDEMPTION AND EXECUTION.
Both principal and interest on said Bonds shall be payable at the main off
Of Citizens Bank & Trust Company, Paducah, Kentucky, in lawful money of the
United States of America.
Bonds of said authorized issue maturing on or after November 1, 1982,
shall be subject to redemption by said City prior to maturity, on any interest
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Tentatively
Estimated
Total
Interest
Principal
Maturity,
Requirements
and Interest
November 1,
Principal
Numbering
6-1/4%)
Requirements
1972
$10,000
1-2
$20,000.00
$ 30,000.00
1973
10,000
3-4
19,375.00
29,375.00
1974
10,000
5-6
18,750.00
28,750.00
1975
10,000
7-8
18,125.00
28,125.00
1976
15,000
9-11
17,500.00
32,500.00
1977
15,000
12-14
16,562.50
31,562.50
1978
15,000
15-17
15,625.00
30,625.00
1979
15,000
1820
14,687.50
29,687.50
1980
15,000
21-23
13,750.00
28,750.00
1981
20,000
24-27
12,812.50
32,812.50
1982
20,000
28-31
11,562.50
31,562.50
1983
20,000
32-35
10,312.50
30,312.50
1984
20,000
36-39
9,062.50
29,062.50
1985
20,000
40-43
7,812.50
27,812.50
1986
25,000
44-48
6,562.50
31,562.50
1987
25,000
49-53
5,000.00
30,000.00
1988
25,000
54-58
3,437.50
28,437.50
1989
30,000
59-64
1,875.00
31,875.00
SECTION 6. PROVISIONS AS TO PLACE OF PAYMENT,
PRIOR REDEMPTION AND EXECUTION.
Both principal and interest on said Bonds shall be payable at the main off
Of Citizens Bank & Trust Company, Paducah, Kentucky, in lawful money of the
United States of America.
Bonds of said authorized issue maturing on or after November 1, 1982,
shall be subject to redemption by said City prior to maturity, on any interest
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778
payment date falling on or after November 1, 1981, in accordance with the terms
and provisions contained in the bond form set out in Section 7 below.
Said Bonds, and the interest coupons appertaining thereto, shall be
executed on behalf of said City pursuant to the facsimile signature law of
Kentucky, KMS 61,390, with the duly authorized reproduced facsimile signature of
the Mayor of said City; the reproduced facsimile of the Corporate Seal of said
City shall be imprinted thereon, attested by the manual signature of the City
Clerk; and the interest coupons attached to said Bonds shall be executed with the
reproduced facsimile signatures of the said Mayor and of said City Clerk, which
officials, by the execution of appropriate certifications, shall adopt as and for
their own proper signatures their respective facsimile signatures on said Bonds
and coupons.
No.
SECTION 7. BOND FORM.
That said Bonds and coupons shall be in substantially the following form:
UNITED STATES OF AMERICA
COMMONWEALTH OF KENTUCKY
COUNTY OF MCCRACKEN
CITY OF PADUCAH
PARKING FACILITIES REFUNDING AND IMPROVEMENT REVENUE BOND
$5,000
KNOW ALL MEN BY THESE PRESENTS:
That the City of Paducah, in the County of McCracken, in the Commonwealth
of Kentucky, acknowledges itself to owe, and for value received, hereby promises
pay to the bearer hereof, solely from the special fund hereinafter identified,
sum og
FIVE THOUSAND DOLLARS
On the first day of November, 19
and to pay interest on said sum from the date hereof at the rate of
percent (_ %) per annum, payable semi-annually, on the first days of May and
November in each year until paid, except as the provisions hereinafter set forth
with respect to prior redemption may be and become applicable hereto, such inter-
est as may accrue on and prior.to the maturity of this Bond to be paid upon
presentation and surrender of the annexed interest coupon as the same severally
mature, both principal and interest being payable, without deduction for exchange
or collection charges, in lawful money of the United States of America, at the
main office of Citizens Bank & Trust Company, Paducah, Kentucky.
This Bond is one of a duly authorized Series of Bonds in the amount of
Three Hundred Twenty Thousand Dollars ($320,000, numbered consecutively from 1 to
779
64, inclusive (this Bond and said authorized issue and the appertaining coupons
being hereinafter sometimes referred to collectively as "the Bonds" or "the Bonds
of 1971"), issued by said City under and in full compliance with the Constitution
and Statutes of the Commonwealth of Kentucky, oncluding Sections 82.050 and 58.010
through 58.140, inclusive, of the Kentucky Revised Statutes, and pursuant to a
duly enacted Bond Ordinance of the City authorizing same (the 111971 Bond Ordinance
to which Ordinance reference is hereby made for a description of the nature and
extent of the security thereby created, the rights and limitations of rights of
the holder of the Bonds of 1971, and the rights, obligations and duties of said
City, for the purpose of financing the costs (not otherwise provided) of refunding
and refinancing certain outstanding City of Paducah Parking Facilities Revenue
Bonds, dated January 1, 1968, and for the purpose of defraying the costs (not
otherwise provided) of additional parking facilities for said City.
Said 1971 Bond Ordinance ordered that the existing off-street parking
facilities and the existing on -street (curb -line) parking facilities of the City,
which had been ordered by a 1968 Bond Ordinance (authorizing said outstanding
Bonds dated January 1, 1968), to be combined and consolidated into a single projec
shall, so long as may of the Bonds of 1971 are outstanding and unpaid, continue tc
be operated as a single, combined and consolidated revenue-producing public projec
for the security and source of payment of the Bonds of 1971. This Bond and all of
said Bonds of 1971 are and will continue to be payable from and secured by an
exclusive pledge of a fixed portion of the gross income and revenues to be derived
from the operation of said combined and consolidated public parking facilities
project, including the additional parking facilities to be financed with part of
the proceeds of the Bonds of 1971, and which additional facilities will be added
to and incorporated in said project; and the City covenants that said fixed
portion of said income and revenues shall be sufficient to gray the principal of
and interest on the Bonds of 1971 as and when the same become due and payable and
that said fixed portion shall be set aside as a special fund for that purpose and
identified as "City of Paducah Parking Project Refunding and Improvement Sinking
Fund of 1971."
This Bond does not constitute an indebtednwss of the City of Paducah
within the meaning of any constitutional or statutory provisions or limitations,
but is payable solely out of the revenues of said project, required to be deposi
in said Sinking Fund.
Bonds numbered 28 to 64, inclusive, maturing on or after November 1, 1982,
of these Bonds as may be,outstanding from time to time, are subject to redemption)
780
by said City prior to maturity, in whole or from time to time 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 falling on or after November 1,
1981, upon payment of face amount plus all accrued interest evidenced by interest
coupons maturing on and prior to the redemption date, plus a redemption premium
expressed in terms of a percentage of the face amount of the Bonds called for
redemption, as follows:
3% if redeemed on or after November 1, 1981, and on or before
November 1, 1985, and
2% if redeemed thereafter and prior to final maturity.
In the event that any of these 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 newspa•
per of general circulation throughout Kentucky.
All of said Bonds as to which said City reserves and exercises the right
of redemption and as to which notice as aforesaid shall have 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. Notice of such redemption may be
waived with the written consent of the holder(s) of the Bond(s) so called for
redemption.
This Bond is fully negotiable and shall pass merely by delivery.
This Bond is exempt from taxation in the Commonwealth of Kentucky.
It is hereby certified, recited and declared that all acts, conditions
and things required to exist, happen and be performed precedent to and in the
issuance of these Bonds, have existed, have happened and have been performed in
due time, form and manner as required by law and that the amount of these Bonds,
together with all other obligations of said City, does not exceed any limit
prescribed by the Constitution or Statutes of the Commonwealth of Kentucky.
IN WITNESS WHEREOF, said City of Paducah, in the Commonwealth of Kentucky,
has caused this Bond to be executed on its behalf with the duly authorized,
reproduced facsimile signature of its Mayor and the reproduced facsimile of its
corporate seal to be imprinted hereof, attested by the manual signature of its
City Clerk, and the coupons hereto attached to be executed with the duly author
reproduced facsimile signature of said Mayor and said City Clerk, and this Bond
to be dated the first day of November, 1971.
Attest:
CITY OF PADUCAH, KENTUCKY
BY (Facsimile Signature)
Mayor
City Clerk (Facsimile City Seal)
781
(FORM OF COUPON)
COUPON NO. $
Unless the Bond to which this coupon appertains is redeemable and accordingl
shall have been theretofore called for prior redemption and payment of the redemp-
tion price duly made or provided for,
On the first day of 19
The City of Paducah, Kentucky, will pay to the bearer the amount shown
hereon, without deduction for exchange or collection charges, out of its "City of
Paducah Parking Project Refunding and Improvement Sinking Fund of 1971," at the
main office of Citizens Bank & Trust Company, Paducah, Kentucky, as provided in
and being interest then due on its $5,000 City of Paducah Parking Facilities
Refunding and Improvement Revenue Bond, dated November 1, 1971, numbered
CITY OF PADUCAH, KENTUCKY
By (Facsimile Signature)
Attest: Mayor
(Facsimile Signature)
City Clerk
SECTION 8. SALE OF BONDS OF 1971.
The entire $320,000 of Bonds authorized by this Ordinance shall be
offered for sale, which shall be publicly advertised, upon the basis of sealed,
competitive bids, which shall be publicly opened and acted upon by the Board of
Commissioners; to that end, the Mayor and the City Clerk are authorized to sign
an appropriate form of Notice soliciting purchase bids and to cause the same to
be published in conformity with Chapter 424 of the Kentucky Revised Statutes, at
least one time, not less than 7 days nor more than 21 days, prior to the designated
sale date, (a) in THE PADUCAH SUN -DEMOCRAT, which is the newspaper having the
largest bona fide circulation which is published in the City of Paducah, Kentucky,
and is the newspaper meeting the requirements of KRS 424.110-120 for publication
in which official publications of the City of Paducah are required to be published,
(b) in THE COURIER -JOURNAL, a daily newspaper published in Louisville, Kentucky,
and having general circulation throughout the Commonwealth of Kentucky, and (c) in
THE BOND BUYER, a financial publication in the City and State of New York and of
general circulation among bond issue purchasers.
The published Notice shall be in customary form or forms, shall identify
the Bonds offered for sale, shall designate a day and hour for the receiving and
public opening and consideration of purchase bids, which time will be the time of
a regular, adjourned regular, or called, special meeting of the Board of Commissio .i
ers, as may be determined by the Board or by the Mayor; shall require that bids be
782
all of said Bonds and be upon terms of cash at a price not less than $313,600.00
(9851. of par) plus accrued interest; shall permit bidders to stipulate one or more
interest coupon rates in multiples of 1/8% or 1/10%, with no limit as to interest
rate or net interest cost, not exceeding seven different rates, repetition of a
rate not to be considered a different rate, with no more than 2-1/2% differential
between the highest and the lowest interest rates bid. All Bonds of the same matux
shall bear the same and a single interest coupon rate from the date thereof to
maturity, and interest becoming due on any interest payment date may not be
represented by more than one coupon on any Bond.
Bidders shall be required to deposit a good faith check by cashier's check
or certified check, in the minimum amount of two percent (21%) of the face amount
of the Bonds offered for sale. The City shall reserve the right, in its discretion
ity
to determine the best bid or bids, to waive any informality and to reject any or aAl
bids.
The Mayor and the City Clerk are additionally authorized, in connection
with such sale, to sign, cause to be reproduced in mimeographed, printed, or other
multiple copy form, and to supply any interested party upon request, the Official
Terms and Conditions of Sale of Bonds, giving a more detailed description of the
Bonds and setting forth terms and conditions calculated to bring about uniformity
in bidding. Standard Bid Form shall be required.
Suggested forms of a "Notice of Bond Sale", the "Official Terms and
Conditions of Sale of Bonds," and the "Bid Form," having been prepared and sub-
mitted by bond counsel, and the same having been examined by the Board of Com-
missioners and found to be in order, the same are hereby approved and may be used
for the purpose of this Section.
SECTION 9. DISPOSITION OF BOND PROCEEDS.
That upon the sale, delivery of and payment for said $320,000 of Revenue
Bonds by the successful purchaser, the proceeds of said Bonds shall forthwith and
simultaneously be applied as follows:
A. The sum of $130,435.00, consisting of $123,300 of said Bond proceeds
Plus $7,135.00 of the funds currently on deposit in the "City of Paducah Public
Parking Facilities Project Bond and Interest Redemption Fund of 1968," created in
the 1968 Bond Ordinance, shall be deposited immediately in the Citizens Bank & Tr
Company, Paducah,Kentucky, in escrow and specifically earmarked and applied for
purpose of meeting the following requirements of the Bonds of 1968:
783
Interest due on January 1, 1972 $ 3,135.00
Principal Amount of Bonds of 1968 Maturing on
January 1, 1972 4,000.00
Interest falling due on July 1, 1972 3,015.00
Interest falling due on January 1, 1973 3,015.00
Principal Amount of Bonds of 1968 Maturing on
January 1, 1973 5,000.00
Principal Amount of Bonds to be Redeemed on
Jan uary 1, 1973 109,000.00
Redemption Premium (3/) on $109,000 of Bonds 3,270.00
Total
$130,435.00
Said sum shall be set aside in a separate Escro--a Account entitled "Escrow
Redemption Account, City of Paducah Parking Revenue Bonds, dated January 1, 1968,"
on deposit in said Bank, or such Account may be deposited and maintained at such
other alternate FDIC Bank as may be approved by the Mayor, provided such account
shall be applied either (1) to purchase United States Government securities for
the account of said Escrow Account immediately upon the receipt of the proceeds of
the Bonds of 1971, such securities to be deposited to the credit of said Escrow
Account, or (2) to purchase Certificates of Time Deposit of an FDIC Bank, provided
that, to the extent that same are in excess of the amount insured by the FDIC,
such excess amount must be continuously secured by a valid pledge of United States
Government securities of an equivalent market value, which Certificates of Time
Deposit shall be held for the account of said Escrow Account.
Provided, however, that sums on deposit in said Escrow Account shall
not be so invested as to cause the Bonds of 1971 to become taxable "arbitrage
bonds"; to that end, it is agrees that such sums shall not be invested in investment
which shall produce a new adjusted yield which is more than one-half percent in
excess of the net interest cost (effective yield) of the Bonds of 1971,.in order
to assure that such Bonds of 1971 will not constitute taxable "arbitrage bonds"
within the meaning of Section 601(a) of the Tax Reform Act of 1969 (83 Stat. 656)
and the Income Tax Regulations issued thereunder; but such funds may be so invested
without such restriction if and whenever such Act and/or Regulations permit same
to be made without causing the Bonds of 1971 to become taxable "arbitrage bonds."
The mayor and/or City Clerk are further authorized to enter into an
appropriate Escrow Agreement or similar arrangement with said Bank or with any
other FDIC Bank to carry out the intent and purposes of this Subsection.
As of January 1, 1973, all amounts in said Escrow Account created in this
Subsection, in excess of the amounts required to meet the principal, interest and
784
redemption premium falling due on January 1, 1973, on said outstanding Bonds of 19
(including both the Bonds of 1968 scheduled to mature on January 1, 1972 and on
January 1, 1973 and Bonds of 1968 which will have been called for redemption on
January 1, 1973), as a result of income from investments of said Account, or other
wise, shall immediately and forthwith be transferred to the Sinking Fund of 1971
set out below and applied to the purposes of said Fund; and the amounts otherwise
required to be so deposited into said Sinking Fund of 1971 on or after January 1,
1973, shall automatically be reduced forthwith by the amount so transferred.
B. There shall be taken out of the proceeds of said sale and deposited in
the Sinking Fund of 1971 hereinafter created, an amount equal to all accrued intere
collected from the successful purchaser of said Bonds, representing accrued intere:
from November 1, 1971, to the date of delivery of the Bonds.
C. There shall be paid out of such proceeds the fee to which the City's
Fiscal Agent is entitled under its fiscal agency agreement with the City, for its
services as Fiscal Agent in connection with the issuance of said Bonds of 1971.
D. The entire remaining proceeds of the sale of said Bonds of 1971 shall
be devoted exclusively toward defraying the costs of the additional parking facili
ties, hereinbefore defined as the parking construction project. To the extent, if
any, that the City shall have found it necessary and possible to expend funds for
various items of construction costs relating to such construction project, prior
to the issuance, sale and delivery of said Bonds, through force account or other-
wise, the aggregate of all of such expenditures shall be reimbursed to said City
from the proceeds of the sale of the Bonds of 1971, upon orders of the Board of
Commissioners of the City.
Pending expenditure of the remaining proceeds for the costs of said con-
struction project, as defined herein, such remaining proceeds shall be deposited
in a special Acquisition and Construction Account at the Citizens Bank & Trust
Company, Paducah, Kentucky, said Account at said Bank to be called "City of Paduca
Public Parking Facilities Project Acquisition and Construction Account of 1971."
Said Bank shall invest for the benefit of said Account such portion of said
Account, as is designated by the Mayor or the Board of Commissioners of the City,
in United States Government obligations or in Certificates of Time Deposit of said
Bank, maturing in from six to nine months from date of investment (as designated b
the Mayor or the Board of Commissioners of the City), and any of such funds on
deposit in said Bank or invested in such Certificates of Time Deposit, to the exte t
that same are in excess of the amount insured by the FDIC, shall be earmarked and
t
785
secured by a pledge of an equivalent amount in current fair market value (exclusive
of accrued interest) of United States Government obligations until expended. In
order to assure that the Bonds of 1971 will not become taxable "arbitrage bonds,"
investments of funds in said Account shall be subject to the same'limitations on
investments as are applicable to the Escrow Account set out in Subsection A above.
Interest earmed on any such investments shall be credited to said Acquisition and
Construction Account and applied to the purposes thereof.
Payment from said Acquisition and Construction Account for the cost of
acquiring and/or constructing said construction project, as defined herein, shall
be made at a time and in such manner, as determined by the Mayor, the Corporation
Counsel, and/or other appropriate City officials, to enable said City to obtain
recorded good marketable fee simple title to additional off-street parking facili
Said off-street parking facilities are located in the City of Paducah, Ken-
tucky, as follows;
(a) Said existing off-street parking facilities site is located at the
Southwest corner of the intersection of Kentucky Avenue and South Third Street, as
hereinafter described; (b) one of the proposed new off-street parking facilities
sites is one-half block in length, and is located at the southwest corner of Fifth
and Kentucky Avenue, running in a southerly direction and in a westerly direction,
and (c) the other one of the proposed new off-street parking facilities sites is
bounded by Clark Street for one block and one-half block in depth on Fourth and
Fifth Streets on the south side of City Hall.
Said three sites, consisting of the existing site and the proposed two new
sites are more particularly described as follows;
SITE A - EXISTING SITE
Beginning at the southwest corner of the intersection of Kentucky Avenue and
South 3rd Street; thence in a southerly direction along the west property line
of South 3rd Street, 173.25 feet; thence at right angles and in a Westerly
direction 346.5 feet to a point in the East property line of South 4th Street;
thence in a Northerly direction and along the west property line of South
4th Street 173.25 feet to the southeast intersection of South 4th Street and
Kentucky Avenue; thence at right angles and along the South property line of
Kentucky Avenue in an Easterly direction 346.5 feet to the point of beginning.
SITE B
Beginning at the Southwest corner of the intersection of Kentucky Avenue
and South Fifth Street; thence in a southerly direction and along the
west property line of South 5th Street, 173.25 feet; thence at right
angles -and in a westerly direction 346.5 feet to:a point in the East
property line of South 6th Street; thence in a northerly direction and
along the West property -line of South 6th Street 173.25 feet to the
Southeast intersection of South 6th Street and Kentucky Avenue; thence
at right angles and along the South property line of Kentucky Avenue in
an Easterly direction 346.5 feet to the point of beginning.
786
SITE C
Beginning at the Southwest corner of the intersection of Clark Street
and South Fourth Street; thence in a southerly direction and along the
West property line of South 4th Street, approximately 140.00 feet to a
side property line of property facing on the west side of South 4th Street;
thence at right angles and in a westerly direction and along said side
property line approximately 173.25 feet to the back property line; thence
in a southerly direction and along the said back property line approximately
24.50 feet to the side property line of property facing on the east side
of South 5th Street; thence at right angles and in a westerly direction
and along said side property line approximately 173.25 feet to the front
property line of property facing on the east side of South 5th Street;
thence at right angles and in a northerly direction and along the East
property line of South 5th Street approximately 164.50 feet to the
Southeast corner of the intersection of South 5th Street and Clark Street;
thence at right angles and along the South property line of Clerk Street
in an Easterly direction approximately 346.50 feet to the point of beginning.
Apart from the purchase of said two additional off-street parking facilities
sites, all other costs pertinent to said construction project as defined herein
shall be paid out of the aforesaid Acquisition and Construction Account only upon
vouchers signed by the City Engineer, provided all checks drawn against said Accoul
shall be signed by the City Treasurer, countersigned by the City Manager; and
accompanied by such voucher before being honored by the aforesaid Bank. The
aforementioned officials are hereby authorized to execute such checks from time
to time, in the necessary amounts, upon the aforesaid certification being executed
by the City Engineer and presented to the aforesaid officials, without the necessi-
of any further meetings, authorizations, ordinances or motions by the Board of
Commissioners.
Such checks shall be fully negotiable, and the aforesaid Bank shall be
authorized to honor and pay the same if said certification of the City Engineer
is attached thereto, provided said Bank assumes the responsibility for the validit
of all signatures and the validity and propriety of all endorsements, or if all
signatures and endorsements to it are guaranteed by another FDIC bank.
Pending disbursement for the authorized purposes, the proceeds of the
Bonds issued pursuant to this Ordinance and of said Acquisition and Construction
Account shall be subject to a first and paramony lien and charge in favor of the
holder(s) of the Bonds of 1971, and for their further security.
After the Board of Commissioners certifies that the acquisition and
construction of said construction project has been completed and paid for (includ-
ing the cost of acquisition of said additional off-street sites), any surplus
then remaining shall either be transferred to the Reserve Fund of the Sinking Fund
of 1971 hereinafter created, or shall be transferred to the Depreciation Fund
hereinafter created and used for the construction of further extensions, additions
and/or improvements to said combined and consolidated public project, in accordancf
with the orders of the governing body of the City, without the necessity of any
further certification by anyone.
4t
787
SECTION 10. ALL REMAINING SUMS IN OTHER FUNDS SHALL BE TRANSFERRED
TO CORRESPONDING FUNDS CREATED IN THIS ORDINANCE.
After provision is made for the redemption and retirement of all of the
outstanding Bonds of 1968, as specified above, the various balances on deposit in
the various funds created in the 1968 Bond Ordinance, in connection with said
parking project, shall be transferred to the corresponding funds created in this
Bond Ordinance, i.e., (a) funds on deposit in the Revenue Fund of 1968 shall be
transferred to the revenue Fund of 1971; (b) funds on deposit in the Sinking Fund
of 1968 shall be transferred to the Sinking Fund of 1971 (and amounts on deposit
in the Sinking Fund Reserve of 1968, which is a part of the Sinking Fund of 1968,
shall be transferred to the Sinking Fund Reserve of 1971); (c) funds on deposit
in the Operation and Maintenance Fund of 1968 shall be transferred to the Operation
and Maintenance Fund of 1971; and (d) funds on deposit in the Depreciation Fund of
1968 shall be transferred to the Depreciation Fund of 1971. In addition, at that
time the balance of funds on deposit in the "City of Paducah Public Parking
Facilities Project Acquisition and Construction Account of 1968," shall be trans-
ferred to and deposited in the Sinking Fund Reserve of 1971, hereinafter created.
All amounts so transferred shall operate to reduce the amounts otherwise
required by this Ordinance to be accumulated in said respective Funds, and when the
total amounts required to be accumulated in such respective Funds shall have been
accumulated, the City shall be relieved of the obligations of making further
deposits in such Funds, subject to resumption of such deposits if and when required,
as a result of any withdrawals from such Funds, in order to restore the minimum
required balances.
SECTION 11. CREATION OF SPECIAL FUNDS.
From and after the first day of the month following the delivery of the
Bonds authorized herein, said combined and consolidated public parking facilities
project shall be operated on a fiscal year basis commencing on November first of
each year and ending on October 31st of the respective ensuing year, and on that
basis the gross income and revenues of said project shall be set aside monthly into
a separate and special fund to be designated as the "City of Paducah Public Parking
Facilities Project Revenue Fund of 1971," hereinafter sometimes called the "Revenue
Fund" or the "Revenue Fund of 1971," which shall be maintained at the Citizens
Bank & Trust Company, Paducah, Kentucky, and the revenues of said combined and
consolidated public parking facilities project so set aside shall then be used
and apportioned monthly as follows:
788
A. SINKING FUND OF 1971
There is hereby created a special account or fund to be known as the
"City of Paducah Parking Project Refunding and Improvement Sinking Fund of 1971"
(hereinafter sometimes called the "Sinking Fund" or as the "Sinking Fund of 1971"),
into which there shall be set aside out of the proceeds of the sale of the Bonds
an amount equal to the collected accrued interest received from the purchaser of
the Bonds, representing accrued interest from November 1, 1971, to the date of
delivery and payment for said Bonds, as provided in Section 9 above, and, subject
to a credit for the amount of said collected accrued interest, there shall also
be set aside into said Sinking Fund, from the gross income and revenues in the
Revenue Fund, beginning in the month following the month in which this Ordinance is
enacted, sums in each month not less than:
(1) an amount equal to one-sixth (1/6) of the interest becoming
due on the next succeeding interest due date; plus
(2) an amount equal to one=twelfth (1/12) of the principal of
all Bonds maturing on the next principal due date.
Provided, however, there shall immediately be created within said Sinking
Fund a separate fund entitled the "City of Paducah Public Parking Facilities Projec-
Reserve Fund of 1971," hereinafter sometimes called the "Reserve Fund," the "Reserv(
Fund of 1971," the "Sinking Fund Reserve," or the "Sinking Fund Reserve of 1971."
As set out above, there shall immediately be transferred to said Sinking Fund
Reserve of 1971, the following amounts:
(a) The balance on deposit in the Sinking Fund Reserve of 1968,
at the time of delivery of the Bonds of 1971.
(b) The balance on deposit in said City of Paducah Public Parking
Facilities Project Acquisition and Construction Account of
1968, at the time of delivery of the Bonds of 1971.
(c) Any surplus remaining in the "City of Paducah Public Parking
Facilities Project Acquisition and Construction Account o f 1971
after completion of the 1971 construction project, as provided
in Section 9 hereof.
Thereafter, there shall be transferred from said Revenue Fund of 1971 into
said Sinking Fund of 1971, additional amounts in each month sufficient, when added
to funds deposited therein from other sources, to accumulate by November 1, 1976
(1/60 each month), a Reserve Fund equal to not less than the maximum amount
required in any year thereafter for principal and interest requirements on the
outstanding Bonds of 1971 and any parity bonds. Whenever said amount has been
accumulated in said Fund from any sources, no further payments need be made into
said Reserve Fund of 1971 unless and until authorized disbursements from such Fund
shall reduce the balance therein below the stipulated level, whereupon said payment
to said Reserve Fund of 1971 shall be resumed until the.stipulated balance is again
reached.
789
It is hereby determined that for the purpose of the foregoing calculations,
the amounts required for principal and interest on said Bonds of 1971 are the
amounts set out in the statement of (estimated) principal and interest requiremen
in the table contained in Section 5 of this Ordinance, if said Three Hundred Twen
Thousand Dollars ($320,000) of Bonds are sold to bear interest at the rate of
six and one-fourth percent (6-1/451.) per annum. If the interest rate or rates
actually established at the sale are greater or less than the tentatively antici-
pated interest rate of six and one-fourth percent (6-1/4%) per annum, said
requirements (as set out in the aforementioned schedule) on which said calculatio
are based, shall be automatically increased or reduced accordingly.
Said Sinking Fund of 1971 and said Reserve Fund of 1971 shall be used
solely and only for, and are hereby pledged for, the payment of the interest on
and principal of the Bonds of 1971 hereby authorized.
The amount by which any funds on deposit in said Sinking Fund Reserve of
1971 are in excess of said prescribed minimum reserve to be accumulated and main-
tained, may, unless otherwise ordered by the governing body of the City, be held i
said Fund as additional reserve for the same purpose and, unless all Bonds payable
from said Sinking Fund at the time outstanding are to be then retired, only such
part of said Sinki,ig Fund Reserve shall be used to purchase or redeem Bonds in
advance of maturity as may be in excess of the prescribed minimum Reserve plus the
interest and the principal scheduled to mature within the succeeding twelve months
on all Bonds of 1971 and any parity bonds which by their terms are payable from
said Sinking Fund.
No further payment need be made into said Sinking Fund of 1971 and Reserve
Fund of 1971 whenever and so long as such amount of the Bonds shall have been
retired that the amounts then held in such funds are equal to the entire amount of
the interest and principal (and redemption premium, if any) that will be payable t
and at the time of the retirement or maturity of all of the Bonds of 1971 then
remaining outstanding.
Such payments into said Sinking Fund of 1971 and said Reserve Fund of
1971 shall be made in equal monthly installments on the first day of each month,
except that when the first day of any month shall be on a Sunday or a legal holida
then such payments shall be made on the next succeeding secular day.
In the event that the income and revenues during any month are inadequate
to make the required payments into said Sinking Fund of 1971 and Reserve Fund of
1971, the deficiency shall be made up and paid as aforesaid from the first availab
income and revenues thereafter received, and same shall be in addition to payments
otherwise provided to be made in such succeeding month or months.
790
All moneys in said Sinking Fund of 1971 and in said Reserve Fund of 1971
shall be deposited in the Citizens Bank & Trust Company, Paducah, Kentucky. Said
Bank shall invest for the benefit of said Sinking Fund of 1971 (and Reserve Fund of
1971) such portion thereof as is designated by the governing body of the City,
in United States Government obligations or in Certificates of Time Deposit of said
Bank maturing as same will be needed for meeting interest and/or principal payments,
and any of such funds on deposit in said Bank or invested in such Certificates
of Time Deposit (in excess of the amount insured by the FDIC) shall be earmarked
and secured by a pledge of an equivalent amount (exclusive of accrued interest)
of United States Government obligations until expended. Interest earned on any s u .
investments shall be credited to the Sinking Fund (or the Reserve Fund portion
thereof, as the case may be) and applied to the purposes thereof. In order to
assure that the Bonds of 1971 will not become taxable "arbitrage bonds", investment -
of funds in said Account shall be subject to the same limitations or investments
as are applicable to the Escrow Account set out in Section 9A above.
Withdrawals shall be made from said Reserve Fund and transferred to the
Sinking Fund if and to any extent required at any time to prevent a default in the
payment of principal of or interest on any Bonds which by their terms are payable
from the Sinking Fund of 1971; and, if necessary, securities held as investments
in said Reserve Fund of 1971 shall be converted into cash for such purpose, but no
withdrawals shall be made for any other purpose, and the City hereby irrevocably
pledges all moneys and securities in the Reserve Fund of 1971 for such specified
purposes only. In the event any such permitted withdrawals are made, the deficienc
in such Fund shall be restored as soon as revenues are available.
The balance of the income and revenues then remaining shall be set aside
for operation and maintenance and for depreciation as hereinafter provided.
B. OPERATION AND MAINTENANCE FUND OF 1971.
There shall be and there is hereby created a fund known as the "City of
Paducah Public Parking Facilities Project Operation and Maintenance Fund of 1971,"
into which, subject to the initial deposit referred to in Section 10 above, there
shall be deposited in each month an amount equal to ninety percent (90%) of the
balance of the income and revenues of said public project in the Revenue Fund after
the aforementioned provisions have been complied with. From this Operation and
Maintenance Fund of 1971, all costs of operating, maintaining and insuring said
project shall be paid.
If there shall be accumulated in said Operation and Maintenance Fund, after
payment in full of all current costs of operation, maintenance and insurance, a
V !�.
791
sum in cash equal to all anticipated and estimated costs of operating and maintain-
ing said combined and consolidated public parking facilities project for the ensuin
period of three months commencing upon the first day of the calendat month followin
the month in which such estimate is made (which amount shall not be less than the
actual costs of operating and maintaining said project for the three months period
ending on the last day of the calendar month preceding the month in which such
estimate is made), no further payments shall thereafter be required to be made into
said Operation and Maintenance Fund except to the extent sufficient to pay the curr
ant costs of operation, maintenance and insurance in each month, so that said
accumulation may be preserved and maintained as an Emergency Fund.
All funds in the Operation and Maintenance Fund shall be kept apart from
all other municipal funds and shall be deposited, secured and/or invested in the
same manner as herein provided for the deposit and security of the Sinking Fund.
Whenever such excess payments are no longer required to be made into
said Operation and Maintenance fund of 1971, the portion of the revenues in excess
of the amount required for current costs of operation, maintenance and insurance
which would otherwise be so payable may, by order of the Board of Commissioners,
be discontinued or same may be transferred to the Sinking Fund Reserve of 1971, and
shall be so transferred so long as the minimum prescribed Reserve has not been
accumulated and is not being maintained or has not been restored; or, when not so
ordered or required to be transferred to such Sinking Fund Reserve, may be depositell
in the Depreciation Fund, and shall be deposited in said Depreciation Fund whenever
and so long as the minimum required Depreciation Reserve has not been accumulated
and/or is not being maintained.
C. DEPRECIATION FUND OF 1971.
There shall be and there is hwreby created a fund known as the "City of
Paducah Public Parking Facilities Project Depreciation Fund of 1971," hereinafter
sometimes called "Depreciation Fund of 1971," into which, subject to the initial
deposit referred to in Section 10 above, there shall be set apart and paid out of
said "Revenue Fund of 1971" in each month the remaining ten percent (10%) of the
balance of the annual income and revenues remaining in the Revenue Fund of 1971
after the aforementioned provisions have been complied with. There shall also be
deposited in this Depreciation Fund of 1971 -the proceeds from the sale of any
equipment no longer usable or needed and the proceeds of any property damage
insurance not immediately used to replace damaged or destroyed property.
Whenever there shall have been accumulated in said Depreciation Fund of
1971 the amount of $5,000 as a Depreciation Reserve, the subsequent monthly paymen
into said Fund may be discontinued and/or may by order of the Board of Commissione
792
be diverted into the Sinking Fund of 1971 to be held as a part of the Reserve Fund
of 1971 therein, which funds may then be used to redeem Bonds only after the
aforementioned Reserve Fund of 1971 shall have accumulated beyond the minimum amou
hereinabove prescribed; provided, however, that said monthly payments into the
Depreciation Fund of 1971 shall be resumed whenever and so long as necessary to
restore and maintain said Depreciation Reserve in the sum of $5,000.00.
All funds in the Depreciation Fund of 1971 shall be kept apart from all
other municipal funds and shall be deposited, secured and/or invested in the same
manner as herein provided for the deposit and security of the Sinking Fund of 1971.
All funds in the Depreciation Fund of 1971 shall, except as provided
herein, be expended in balancing any depreciation in said combined and consolidated
public parking facilities project and in making new extensions, additions and/or
improvements to said project.
Withdrawals and disbursements may be made from said Depreciation Fund of
1971, and transferred to the Sinking Fund of 1971 if and to the extent required in
order to prevent default in the payment of the principal of or interest on any
Bonds outstanding pursuant to this Ordinance, and to restore any sums withdrawn
from the Sinking Fund Reserve of 1971 at any time, and to the extent of such
requirements, said Depreciation Fund of 1971 is hereby pledged for that purpose;
provided, however, if any moneys in said Depreciation Fund of 1971 are so used,
the same shall be restored_as soon as possible, through the resumption of monthly
payments from said"Revenue Fund of 1971" into said Depreciation Fund of 1971.
The Board of Commissioners hereby finds and determines that the proportion
of the aforesaid cash revenues of said public project required herein to be set
aside into the Operation and Maintenance Fund of 1971 is proper and sufficient for
the operation and maintenance of said public project, and that the remaining
proportion of such balance as provided herein is sufficient for the purposes of
said Depreciation Fund of 1971.
D. SURPLUS REVENUES.
Whenever all specified and required transfers and payments into the Special
funds hereinbefore provided have been made, all prescribed reserves have been
accumulated and are being maintained, and there is a balance in the Revenue Fund
of 1971 in excess of the estimated amount required to be so transferred and paid
into such special funds during the succeeding three months, such excess shall be
deemed and considered surplus revenues, and all or any part of such excess may be
paid into the Sinking Fund or into the Sinking Fund Reserve of 1971, or may be us
by order of the Board of Commissioners, (a) to pay or finance the cost of extensi
F
793
and improvements to said project, (b) to purchase any of the outstanding Bonds of
1971 in the open market at not exceeding the redemption price on the next applica-
ble redemption date, (c) to effect the prior redemption of any of the Bonds of 197
on the next applicable redemption date, or (4) for any lawful purposes related to
traffic control and regulation.
SECTION 12. PRIORITY AS TO DEPOSITS INTO VARIOUS FUNDS.
The money in the Revenue Fund of 1971 set out above shall be allotted and
paid into the various funds herein created in the manner and on the basis of the
priorities set out above. In the event that the income and revenues available in
the Revenue Fund of 1971 during any month are inadequate to make the required
payments into any of the funds herein created, the deficiency shall be made up
and paid from the first available income and revenues thereafter received, and
same shall be in addition to payments otherwise provided to be made in the next
succeeding month or months.
SECTION 13. INSURANCE.
It is hereby covenanted and agreed that so long as any of the Bonds of 1971
hereby authorized are outstanding, the City will carry for the benefit of the hold•
ers of the Bonds of 1971 adequate fire and windstorm insurance (with extended
coverage) on any and all buildings and structures, if any, of said combined and
consolidated public parking facilities project which are subject to loss through
fire or windstorm, will carry adequate public liability insurance, and will carry,
for the benefit of the holders of the Bonds of 1971, insurance of the kinds and in
the amounts normally carried by other municipalities or by private companies in the
operation of similar properties in Kentucky. All moneys received for losses under
any of such insurance policies, except public liability, shall be paid into the
Depreciation Fund of 1971, and such payments shall not reduce the amounts otherwise
required to be paid into said Fund. Disbursements of such proceeds shall be made
in the same manner and for the same purposes as are other disbursements made from
the Depreciation Fund of 1971; provided further that if, following any such insured
loss, any principal or interest payment -is due and there are no toerh funds avail-
able for such payment, such insurance proceeds must be first applied to the
defaulted payment or payments.
SECTION 14. RATES AND CHARGES FOR SERVICES OF THE PROJECT.,
While the Bonds authorized hereunder, or any of them, remain outstanding
and unpaid, the rates for all services and facilities rendered by said project to
said City .and to its citizens, corporations, or others requiring the same, shall be
reasonable and just, taking into account and consideration the cost of maintaining
and operating the same and the proper and necessary allowances for depreciation
794
thereof, the amounts necessary for the retirement of all Bonds of 1971 and the
accruing interest on all such Bonds of 1971 (and any parity bonds) as may be out-
standing under the provisions of this Ordinance, and there shall be charged such
rates and amounts as shall be adequate to meet the requirements of the provisions
of this Ordinance.
SECTION 15. PARITY BONDS.
The Bonds of 19/1 authorized to be issued hereunder and from time to time
outstanding shall not be entitled to priority one over the other in the application
of the income and revenues of the combined and consolidated public parking project,
regardless of the time or times of their issuance, it being the intention that
the -e shall be no priority among the Bonds of 1971 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.
Said City hereby reserves the right and privilege of issuing additional
Bonds from time to time, payable from the income and revenues of said project, rank
on a parity with the Bonds of 1971 herein authorized, in order to pay the cost (not
otherwise provided) of further extensions, additions and/or improvements to said
p::oject. Said parity bonds may be issued only if there shall have been procured
and filed with the City Clerk a statement by an independent Certified Public Accoun
act not in the regular employ of the City, reciting the opinion, based upon proper
certification, that the net revenues for the parking facilities for twelve consecut
months out of the eighteen previous months preceding the issuance of such parity
bonds was equal to at least 1.75 times the maximum amount -that will become due in
any fiscal year for both principal and interest on the Bonds then outstanding and o,
the parity bonds then proposed to be issued.
The interest payment dates on any such additional parity bonds shall be
semi-annually, on May 1 and November 1 of each year, and the principal maturities
thereof shall be on November 1 of any year in which any such principal is scheduled
to become due.
"Net revenues," as herein used, axe defined as gross revenues less all
operating expenses which shall include salaries „ wages, cost of maintenance and
operation, materials and supplies, insurance, and any and all other costs which may
be incurred in connection with said project, and all other items as are normally and
regularly included under recognized accounting practices, but excluding any deductio
for depreciation as an operating expense.
if actual figures for such twelve-month period are deemed inadequate, the
"net revenues: referred to above may be adjusted for the purpose of the foregoing
795
computations to reflect (a) any revisions in the schedule of rates or charges being
imposed at the time of the issuance of any such additional parity bonds, and/or to
reflect (b) any increase in the net annual revenues to be realized from the
extensions, additions or improvements to said project, the cost of which (not
otherwise provided) is to be paid through the issuance of such additional parity
bonds; but such latter adjustments shall be made only if contracts (secured of 100/
performance bond) for the immediate acquisition and/or construction of such exten-
sions, additions and/or improvements have been entered into or will be entered into
prior to the issuance of such additional parity bonds. All such adjustments shall
be based upon and included in a certification of a recognized Independent Parking
Projects Consulting Engineer who, in the case of such latter adjustments, set
out in (b) above, and must have filed with said City Clerk, prior to the issuance
of said additional parity bonds, a written opinion further certifying that such
extensions, additions and/or improvements are economically sound, profitable,
feasible to be made and financed and for the best interest of said public parking
project.
The additional parity bonds, sometimes herein referred to as "permitted"
to be issued, the issuance of which is restricted and conditioned by this section,
shall be understood to mean bonds payable from the income and revenues of said
project on a parity with the bonds herein specifically authorized and shall not be
deemed to include ( or to prohibit the issuance of) other obligations, the security
and source of payment of which is subordinate and subject to the priority of the
Bonds of 1971 (and parity bonds) herein authorized and permitted to be issued.
SECTION 16. GENERAL COVENANTS.
The City covenants, so long as any of the Bonds of 1971 are outstanding,
as follows:
A. It will at all times operate said public parking facilities project
on a revenue-producing basis.
B. It will make renewals and replacements to said project as the same
may be required through application of revenues accumulated and set aside into the
Depreciation Fund of 1971.
C. It will faithfully and punctually perform all duties with reference
to said project required by the Constitution and laws of the Commonwealth of
and sufficient
Kentucky, including the making and collecting of reasonable/rates for services
rendered and facilities afforded.
796
D. It will maintain said project in good condition and continually operate
same.
E. It will segregate the revenues of the project and make application
thereof into the respective funds as provided by this Ordinance' and the City here]
irrevocably covenants, binds and obligates itself not to sell, lease, mortgage, or
in any manner dispose of the ownership of the properties comprising said project,
including any and all extensions and additions that may be made thereto, except as
provided in Section 11C hereof, until all principal and interest of the Bonds of
1971 and any parity bonds shall have been paid in full, or until an amount sufficie
to pay all principal, interest and redemption premium (if and where applicable) of
such Bonds of 1971 and of any parity bonds, shall have been deposited, escrowed anc
earmarked for such purposes.
F. It will maintain all on -street or curb -line parking meters existing
at the time of the issuance of the Bonds authorized herein and will not reduce the
service rates prevailing at such time; subject, however, to the City's rights and
duties under its police power to change the location of such on -street parking
meters when made necessary by street relocations or by adjustments or readjustments
of traffic regulations and controls.
G. It will not permit the establishment of any other parking facilities
competitive with the parking facilities financed through the application of these
Bonds and any additional parity bonds, unless such parking facilities are included
in and constitute a part of the combined and consolidated parking facilities of the
City.
SECTION 17. RECORDS, AUDITS AND REPORTS.
Insofar as consistent with the laws of Kentucky, said City agrees that
so long as any of the Bonds of 1971 remain outstanding, it will keep proper books
of record and account separate from all other municipal records and accounts,
showing complete and correct entries of all transactions relating to said public
project, and that the holders of any of said Bonds of 1971 shall have the right
at all reasonable times to inspect the public project and all records, accounts
and data of the City relating thereto.
As soon as may be feasible after the clost of each fiscal year, and
in any event not later than sixty (60) days thereafter, the City covenants that
it will cause an audit of the financial affairs of the public project to be made
by a Certified Public Accountant. Copies of the audit report shall be furnished
to the original purchaser of said Bonds, upon request, and a copy of same shall
be kept on file in the office of the City Clerk, where it will be subject to
inspection at any reasonable time by or on behalf of any holder of outstanding
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797
Bonds or coupons. A condemnation of the important facts shown by such report will
be mailed to any such bondholder or coupon -holder upon request. The City also
shall prepare and furnish to said original purchaser and to any bondholder request
same, monthly earnings statements of the project, if mimeographed forms are
to the City for that purpose.
SECTION 18. SIGNATURES OF OFFICERS
If any of the officers whose signatures or facsimile signatures appear
on the Bonds of 1971 or coupons cease to be such officers before delivery of the
Bonds of 1971, such signatures shall nevertheless be valid for all purposes the
same as if such officers had remained in office until delivery, as provided in
KRS 58.040 and in KRS 61.390.
SECTION 19. ALL BONDS OF THIS ISSUE ARE EQUAL.
The Bonds of 1971 authorized and permitted to be issued hereunder, and
from time to time outstanding, shall not be entitled to priority one over the other
in the application of the income and revenues regardless of the time, or times,
of their issuance.
SECTION 20. CONTRACTUAL NATURE OF ORDINANCE.
The provisions of this Ordinance shall constitute a contract between the
City and the holders of the Bonds of 1971 herein authorized to be issued, and after
the issuance of any of the Bonds of 1971, no change, variation, or alteration of a
kind, in the provisions of this Ordinance, shall be made in any manner, except as
herein provided, until such time as all of said Bonds of 1971 and the interest
thereon have been paid in full; provided, however, that the holders of eighty
percent (80%) in principal amount of the Bonds of 1971 at any time outstanding
shall have the right to consent to and approve the adoption of resolutions,
ordinances or other proceedings modifying or amending any of the terms or provisi
contained in this Bond Ordinance, subject to the provisions that this Ordinance
shall not be so modified or amended ,in any manner that may adversely affect the
rights of holders of less than all of the Bonds then outstanding or to reduce the
percentage of the number of holders whose consent is required to effect a further
modification; provided further that the governing body of the City may adopt an
Ordinance for any purpose not inconsistent with the terms of this Ordinance and
which shall not impair the security of the same or of the bondholders, for the
purpose of curing any ambiguity, or of curing, correcting, or supplementing any
defective or inconsistent provisions contained herein or in any Ordinance or other
proceedings pertaining hereto.
798
SECTION 21. BONDHOLDERS' REMEDIES.
That any holder of said Bohds of 1971, or of any of the coupons, may,
either at law or in equity, by suit, action, mandamus, or other proceedings, enfc
and compel performance by said City and its officers and agents of all duties
imposed or required by law or by this Ordinance in connection with the operation
of said public project, including the making and collecting of sufficient rates,
the segregation of the income and revenues and the application thereof in accorda
with the provisions of this Ordinance.
If there be any default in the payment of the principal of or interest on
any of said Bonds of 1971, then, upon the filing of suit by any holder of said Bond
of 1971 or coupons, any court having jurisdiction of the action may appoint a
Receiver to administer said public project on behalf of said City, with power to
charge and collect rates and charges for the services and facilities provided by
said public project sufficient to provide for the payment of any Bonds or obliga-
tions outstanding, the interest thereon, and the expenses of operation and main-
tenance, and to apply the income and revenues in accordance with the provisions of
Ordinance, and of the applicable statutes of Kentucky and to take such other action
as may be appropriate for the protection of any such holder within the applicable
legal provisions.
SECTION 22. PROVISIONS IN CONFLICT REPEALED.
That all ordinances, resolutions and orders, or parts thereof in conflict
herewith, are to the extent of such conflict, hereby repealed, and it is hereby
specifically ordered and provided that any proceedings heretofore taken for
the issuance of other bonds payable or secured in any manner by all or any part
of the income and revenues of said public project, or any part thereof, and which
have not heretofore been issued and delivered, are hereby revoked and rescinded,
and none of such other bonds shall be issued and delivered.
SECTION 23. EFFECTIVE DATE OF ORDINANCE.
This Ordinance shall be introduced at a meeting of the Board of Commissioners
and remain on file for at least one week for public inspection in the completed
form in which it shall be put upon its final passage and if adopted shall be in
full force and effect ten days thereafter.
Mayor
799
Introduced by the Board of Commissioners September 28, 1971
Passed by the Board of Commissioners October 12, 1971
Recorded by Sarah Thurman, City Clerk, October 12, 1971.
CERTIFICATE OF CITY CLERK
I, Sarah Thurman, hereby certify that I am the duly qualified and acting
City Clerk of the City of Paducah, Kentucky, that the foregoing Ordinance is a true
and correct copy of an Ordinance authorizing the issuance of $320,000 of City of
Paducah Parking Facilities Refunding and Improvement Revenue Bonds, dated November 1
1971, that said Ordinance was introduced and given its first reading by the Board
Commissioners of said City on September 28, 1971, that it was placed and remained
on file in my office for public inspection in that identical, completed form
until October 12, 1971, on which date it was given its second reading and final
passage and adoption by said Board, that it was published in the Sun Democrat
on October 19, 1971, that no petition protesting its passage in accordance with
KRS 89.600, was filed with said Board or with me as of October 22, 1971, and that
said Ordinance has now been recorded and appears as a matter of public record in
Ordinance Book 17, page 773, of said City.
IN TESTIMONY WHEREOF, witness my signature as City Clerk and the official
Seal of said City this 22 day of October, 1971.
(Seal of City)
Sarah Thurman, City Clerk