HomeMy WebLinkAboutOrdinances Book 12, Page 687, No Ordinance Numbert_J
AN ORDINANCE providing for the issuance of Waterworks
Revenue Bonds, Series of 1952, of the City of Paducah,
Kentucky, for the purpose of constructing extensions
and permanent improvements to the municipal waterworks
system of said city; setting forth the terms and con-
ditions upon which said bonds and additional bonds
ranking on a parity therewith are to be and may be
issued and outstanding, and providing for the payment
of said bonds and interest thereon from available
income and revenues of said system
WHEREAS the City of Paducah, in McCracken County, Kentucky, presently
owns the waterworks system supplying water and water service for public, domestic
and industrial uses in and to said city and its inhabitants, and it has been de-
termined by the Commissioners of 'slater Works having charge of the operation of
said system to be necessary and advisable in the public interest that extensions
and permanent improvements to said municipal water works system be constructed,
and pursuant to the law now contained under Sections 96.350 to 96.510, inclusive,
of Kentucky Revised Statutes said city is authorized and permitted to construct
such extensions and permanent improvements, to regulate and fix reasonable rates
and charges for the services and facilities furnished by said system, and to
issue revenue bonds, as hereinafter provided; and
WHEREAS pursuant to an ordinance finally adopted by the Board of
Commissioners of said city on September 29, 1930, said city now has outstanding
its four and one-half per cent Water Works Bonds to the amount of $1,859,000
dated October 1, 1930, and maturing serially on October 1 of each of the years
1952 to 1970, inclusive, which bonds by their terms are payable from and are
secured by a first charge on and pledge of the revenues derived from the opera-
tion of said municipal waterworks system, and it is necessary at this time that
..provision be made for the issuance of additional.revenue bonds to.the amount of
seven hundred fifty thousand dollars (,$750,000);
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COPUVIISSIONERS OF THE CITY
OF PADUCAH, KENTUCKY, as follows:
Section 1. That for the purpose of paying the cost of extensions and
permanent improvements to the municipal waterworks system of the City of Paducah,
Kentucky, there are hereby authorized to be issued from time to time as herein-
after provided the revenue bonds of said city to be known as "Waterworks Revenue
Bonds, Series of 1952," in the principal amount of $750,000, which bonds shall
bear date of April 1, 1952, be of the denomination of $1,000 each, numbered con-
secutively 1 to 750 inclusive, bear interest at the coupon rate of four per cent
(4%) per annum or such lesser rate or rates as may be fixed as a result of public
competitive sale of said bonds, as hereinafter provided, such interest to be
payable October 1, 1952 and semi-annually thereafter on April 1 and October 1 of
each year, such bonds shall be scheduled to mature in numerical order on April 1
of the respective years as follows:
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X10,000 in eadh of the years 1954 to 1970, inclusive;
165,000 in each of the years 1971 and 1972; and
125,000 in each of the years 1973 and 1974;
provided, however, that said bonds numbered 41 to 750, inclusive, shall be optional
for redemption prior to maturity on any interest payment date on or after April 1,
1957, in whole, or from time to time in part in the inverse order of their maturity
(less than all of a single maturity to be selected by lot), and in the event of
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such redemption it is hereby agreed that the city will pay to the holder of the
respective bonds upon surrender thereof interest in addition to that then accrued
at the coupon rate, in an amount equal to three per cent (3/) of the principal
amount thereof for any bonds called for redemption on or before October 1, 1961;
two per cent (2%) of such principal amount if called for redemption thereafter and
on or before October 1, 1966; one per cent (1%) of such principal amount if called
for redemption thereafter and on or before October 1, 1971; and without payment of
any such additional interest if called for redemption thereafter and before maturit]
It is further agreed that should said city elect to redeem any or all of said
bonds, as hereinbefore provided, notice thereof identifying the bonds to be re-
deemed will be given by publication at least once not less than thirty days prior
to the redemption date in a newspaper of general circulation throughout Kentucky
and in a financial newspaper or journal of general circulation. All such bonds
thus called for redemption and for the retirement of which funds are duly provided
will cease to bear interest on the redemption date.
Both principal and interest shall be payable in lawful money of the United
States at the Citizens Bank & Trust Company in the City of Paducah, Kentucky.
Said bonds shall be signed by the Mayor and attested by the City Clerk of said
city and sealed with its corporate seal, and the interest at the coupon rate afore-
said shall be evidenced by coupons attached thereto, which shall be executed with
the facsimile signatures of said Mayor and City Clerk, and said officials by the
execution of said bonds shall adopt as and for their own proper signatures their
respective facsimile signatures on said coupons. All of said bonds, together with t
interest thereon and any additional bonds ranking on a parity therewith that may be
issued under the conditions and restrictions hereinafter set forth, shall be payable
out of the special fund hereinafter referred to, and the portion of the income and
revenues of the municipal waterworks system of said city pledge to said fund,
subject to the priority of payment from said fund and said income and revenues of
the principal and interest requirements of the outstanding Water Works Bonds of
said city dated October 1, 1930, as such principal and interest become due.
Section 2. That upon presentation at the office of the City Treasurer of
said city of any of said bonds same may be registered as to principal in the name
of the owner on the books in his office, suvh registaation to be noted on the
reverse side of the bonds by the City Treasurer, and thereafter the principal of
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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. Registration of any of such
bonds shall not affect the negotiability of the coupons thereto attached but such
coupons shall be transferable by delivery merely.
Section 3. That said bonds and coupons and provisions for registration
shall be in substantially the following form:
(Form of Bond)
UNITED STATES OF AMERICA
COMMONWEALTH OF KENTUCKY
COUNTY OF McCRACKEN
CITY OF PADUCAH
WATERWORKS REVENUE BOND
SERIES OF 1952
Number
$1,000.00
KNOW ALL MEN BY THESE PRESENTS that the City of Paducah, in the County
of McCracken and Commonwealth of Kentucky, for value received, hereby promises to
pay to the bearer hereof or if this bond be registered as to principal to the
registered holder hereof, as hereinafter provided, on the first day of April,
19_, the sum of One Thousand Dollars ($1,000) and interest on said sum from the
date hereof at the rate of per cent (_%) per annum, on
thereafter
October 1, 1952 and semi-annually/on the first days of April and October in each
year until saod principal sum is paid, except as the provisions hereinafter set
forth with respect to redemption may be and become applicable hereto, all such
interest accruing on and prior to the maturity date hereof to be payable only
zpon presentation and surrender of the cpupons hereto appertaining as they shall
severally fall due, both principal and interest on this bond being payable in lawful
honey of the United States of America at Citizens Bank & Trust Company in the City
Paducah, Kentucky.
This bond is one of a series numbered from 1 to 750, inclusive,
authorized to be issued by and on behalf of said city pursuant to ordinances
my enacted for the purpose of defraying the cost of constructing extensions
nd permanent improvements to the municipal waterworks system of said city under
nd in full compliance with the Constitution and Statutes of the Commonwealth of
entucky, including among others Sections 96.350 to, 96.510, inclusive, of the
entucky Revised Statutes.
The bonds of said series numbered 41 to 750, inclusive, are optional
or redemption by said city prior to maturity on any interest payment date on or
fter April 1, 1957, in whole, or from time to time in part in the inverse order
f their maturities (less than all of the bonds of a single maturity to be
elected by lot); and in the event of such redemption it is hereby agreed that
Rid city will pay to the holders of the respective bonds upon surrender thereof
689
M.
interest in addition to that then accrued at the coupon rate aforesaid, in an
amount equal to three per cent (3%) of the principal amount thereof for any bonds
called for redemption on or before October 1, 1961; two per cent (2%) of such
principal amount if called for redemption thereafter and on or before October 1,
1966; one per cent (1%) of such principal amount if called for redemption there-
after and on or before October 1, 1971; and without payment of any such additional
interest if called for redemption thereafter and before maturity. It is hereby
ifurther agreed that should said city elect to redeem any or all of said bonds, as
aforesaid, it will cause notice thereof identifying the bonds to be redeemed to
be published at least once not less than thirty days prior to the redemption date
in a newspaper of general circulation throughout Kentucky and in a financial
newspaper or journal of general circulation. All such bonds thus called for re-
demption and for the retirement of which funds are duly provided will cease to
bear interest on the redemption date.
This bond and the series of which it is one, together with any additional
bonds ranking on a parity therewith that may be issued and outstanding under the
conditions and restrictions set forth in said ordinances, are payable only from
and secured by the income and revenues to be derived from the operation of said
municipal waterworks system and subject to a priority of such payment and security
in favor of the unretired portion of Water Works Bonds of said city heretofore
issued and outstanding dated October 1, 1930. This bond does not constitute an
indebtedness of said City of Paducah within the meaning of any constitutional
or statutory provisions or limitations. Said city covenants it will fix such
rates for the services and facilities of said municipal waterworks system and
gill collect and account for income and revenues therefrom sufficient to promptly
pay the principal of and interest on this bond and the series of which it is one
as the same will become due, and also for the priority of payment from said in-
come and revenues of interest on and principal of said Water Works Bonds dated
October 1, 1930, as the same will become due.
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 the
City Treasurer, such registration to be evidenced by notation on the back hereof by
the City Treasurer, after which no transfer shall be valid unless made on said books
and similarly noted hereon, but it may be discharged from such registration by being
transferred to bearer, after which it shall be transferable by delivery but it may
be again registered as before. The registration of this bond as to principal shall
not restrain the negotiability of the compons by delivery merely.
A statutory mortgage lien which is hereby recognized as valid and bind-
ing on said municipal waterworks system, together with extensions and appurte-
nances thereto, is created and granted to and in favor of the holder or holders
of this bond and the issue of which it forms a part and in Vavor of the holder or
holders of the coupons attached to said bonds, and said system and any appurte-
nances or extensions thereto shall remain subject to said statutory mortgage lien
until the payment in full of the principal of and interest on this bond and the
issue of which it forms a part, all subject to the priority as aforesaid in favor
of said Water Works Bonds dated October 1, 1930.
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 this bond, have existed, have happened and have been performed in
due time, farm and manner, as required by law, and that the amount of this bond,
together with all other obligations of said city, does not exceed any limit
prescribed by the Constitution or Statutes of the Commonwealth of Kentucky and that
a sufficient amount of the income and revenues of said municipal waterworks
system has been pledged to and will be set aside into a special fund by said city
1ifor the prompt payment of the principal of and interest on said Water Works Bonds
dated October 1, 1930, as the same become due and leave a balance adequate for
like payment of the principal of and interest on this bond and the series of which
it is one.
IN WITNESS WHEREOF said City of Paducah, Kentucky, has caused this bond
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to be signed by its Mayor, attested by its City Clerk, and its corporate seal to
be hereunto affixed, and the coupons hereto attached to be executed with the
facsimile signatures of said Mayor and City Clerk, which officials by the execu-
tion of this bond do adopt as and for their own proper signatures their respective
facsimile signatures appearing on said coupons, and this bond to be dated as of
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Ithe first day of April, 1952.
Attest;
City Clerk
(Form of Coupon)
yor
Number
On the first day of 19 , the Cip of Paducah, Kentucky,
will pay to bearer dollars ($ )
out of the special fund provided therefor, at Citizens Bank & Trust Company in the
City of Paducah, Kentucky, as provided in and for interest then due on its Water-
works Revenue Bond, Secies of 1952, dated April 1, 1952, Numbered
ttest:
City Clerk
Mayor
691
692
(Form of Registration)
Date of In Whose Name
Registration RegisteredCSignature
of
Section 4. That all proceedings preliminary to and in connection with
the issuance of said Water Works Bonds dated October 1, 1930, whereby provision
was made for the operation of said water works system on a revenue producing basis
and for the segregation and allocation of revenues derived from the operation
thereof, are hereby ratified and confirmed, and except as otherwise provided by
this ardinance shall continue in force and inure to the security and benefit of
the bonds herein authorized the same as if such provisions and proceedings were
herein set out in full, provided, that the amounts of the revenues and income pro-
vided by said ordinance finally adopted September 20, 1930 to be paid into "The
Water Works Bond and Interest Redemption Account of Paducah, Kentucky" (hereinafter
sometimes referred to as the "sinking fund"0, during the respective fiscal years,
shall be sufficient to pay when due the interest on and principal of all of said
bonds dated October 1, 1930, and the bonds herein authorized to be issued, and
also any additional parity bonds that may be issued and outstanding under the con-
ditions and restrictions hereinafter set forth (such additional parity bonds being
sometimes hereinafter referred to as "additional parity bonds"). It is hereby
(recognized that there is presently in said sinking fund the sum of $26,000.02
which constitutes a fund exclusively for the payment of said bonds dated October 1,
1930, and said amount shall continue to be so recognized and no part thereof shall
be withdrawn, used or applied for the payment of the additional bonds hereinbefore
authorized to be issued. It is hereby determined and ordered that the minimum
amounts to be paid into said sinking fund as monthly installments during the
respective fiscal years shall be increased over the amounts provided by said or-
dinance finally adopted September 29, 1930, by an amount equal to one-sixth of
the amount of interest on the bonds herein authorized becoming due on the next
succeeding interest payment date, plus one -twelfth of the amount of principal
thereof becoming due on the next succeeding April first. Whenever any additimnal
parity bonds are issued under the conditions and restrictions of this ordinance
provision shall be made for the payment of additional sums into the sinking fund
Ln equal monthly installments sufficient to meet the current interest and prin-
;ipal requirements of such additional parity bonds. The balance in said sinking
'und for the account of the bonds herein authorized and any additional parity
onds in excess of the amount of interest and principal becoming due within the
nsuing twelve months may be invested in direct obligations or guaranteed bonds
r securities of the United States of America having a maturity date or being
ubject to redemption at the option of the holder thereof not more than five years
693
subsequent to the date of investment thereih, and all such investments, as well
as the income therefrom, shall be credited to said fund.
Interest accuring on the bonds hereby authorized during the construction
period of the extensions and improvements shall be deemed as item of construction
cost and to the extent such interest is not paid from revenues and income of the
municipal waterworks it shall be paid from the proceeds of said bonds. All
accrued interest that may be received from the sale of the bonds hereby authorized,
together with such funds representing interest during construction as aforesaid,
shall be paid into said sinking fund but shall be used solely and only for the
payment of interest on the bonds hereby authorized.
The amount by which any payment hereafter made into said sinking fund
in any fiscal year exceeds the aggregate amount properly payable from said fund
in such year shall be held in said fund as a reserve for contingencies and only
such part thereof may be used to call and redeem bonds hereby authorized as may
be in excess of the prescribed amount for said bonds dated October 1, 1930, and
the amount of interest and principal becoming due within the next eighteen months
on the bonds hereby authorized and any additional parity bonds, provided, however,
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the reserve for the account of said bonds dated October 1, 1930 may be used and
applied in accordance with the ordinance pursuant to which said bonds have been
issued and are outstanding and the prescribed reserve for account of the bonds
herein authorized and any additional parity bonds may be used and applied at the
time of the retirement of the last of said bonds.
If the city shall for any reason fail to pay into said sinking fund
the respective minimum additional amounts herein stipulated then an amount equiv-
alent to such deficiency shall be set apart and paid into said fund from the first
available revenues from said municipal waterworks and same shall be in addition
to the amount otherwise herein provided to be so set apart and paid
Said sinking fund shall be used solely and only, and is hereby pledged
for the purpose of paying the interest on and accomplishing the payment or re-
tirement of said Water Works Bonds dated October 1, 1930, and the bonds herein
authorized to be issued, and any additional parity bonds as may be outstanding
from time t6 time; provided however, that said bonds dated October 1, 1930 shall
be entitled to a preference and priority of such payment over the payment of the
bonds herein authorized and on each interest payment date the required amounts
for account of said buds dated October 1, 1930 shall be set apart prior to the
use or application of any funds therein for interest and principal of the bonds
aereby authorized and any additional parity bonds.
The balance of the income and revenues from said municipal waterworks
>hall be used and applied to the payment of the cost aof operation and maintenance
.hereof, and to maintain an adequate Depreciation Fund, all as provided and re-
uired by said ardinance finally adopted Septe#er 29, 1930.
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All funds in the Depreciation Fund shall be kept apart from all other
municipal funds and shall be deposited and secured in the same manner as herein
provided for the deposit and security of the sinking fund, or all or any part. of
said Depreciation Fund may be invested in direct obligations or guaranteed bonds
or securities of the United States of America.
Each month, after all the specified and required transfers and payments
into said special funds have been made, if there is a balance of income and
revenues in excess of estimated amounts required to be so transferred and paid
into said special funds during the succeeding two months, such excess may be paid
into the sinking fund or the Depreciation Fund, or may be used for the payment of
interest on or principal of any other obligations of the city incurred in
connection wi"..h said municipal waterworks, but shall not be available for any
other purpose.
Section 5. While the bonds au-.horized hereunder, or any of them, re-
main outstanding and unpaid the rates for all services rendered by said municipal
waterworks to said city and to its citizens, corporations or other consumers,
shall be reasonable and just, taking into account and consideration the cost and
value of said works and the cost of maintaining and operating same, and the proper
and necessary allowances for depreciation thereof, and the amounts necessary for
the retirement of all bonds and the accruing interest on all such bonds as may
be issued and outstanding and which by their terms are payable from the revenues
of the municipal waterworks; provided, however, no reduction in the schedule of
rates shall be mqde without first obtaining the written determination of an in-
dependent consulting engineer of national reputation that such proposed reduction
will not adversely affect the ability of the city to meet all of the requirements
of this ordinance. There shall be charged against all users of the services and
facilities of the works, including said city, such rates and amount® as shall be
adequate to meet the requirements of this and the preceding sections hereof.
Compensation for services rendered to said city shall be charged against the city
and payment for same from the corporate funds shall be apportioned as other income
and revenues.
Section 6. The "said city hereby covenants and agrees with the holder
or holders of the bonds herein authorized and any of them that it will faithfully
and punctually perform all duties with reference to said municipal water works re- I
quired by the Constitution and laws of the Commonwealth of Kentucky, including
the making and collecting of reasonable and sufficient rates for services rendered
thereby, and will segregate the income and revenues and make application thereof
into the respective funds, as provided by this ordinance; and said city further
covenants and agrees with the holders of said bonds that so long as any of said
bonds are outstanding and unpaid said waterworks will be continuously operated
and maintained ih gobd condition and that such rates and chgrges for services
rendered thereby will be imposed and collected so that the annual gross revenues
6951 I
will be sufficient at all times to provide for the payment of the operation and
maintenance thereof after allowance for or deduction of an amount equal to one
and one-fourth times the maximum amount of interest on and principal of the
revenue bonds becoming due in any subsequent calendar year.
Section 7. That for the further protection of the holders of the bonds
herein authorized or permitted to be issued and the coupons thereto attached a
statutory mortgage lien upon said waterworks and all properties connected there-
with and extensions thereof and belonging thereto is granted and created by Section
96.400 of Kentucky Revised Statutes, which said statutory mortgage lien is hereby
recognized and declared to be valid and binding upon the City of Paducah, and all
the property constituting the municipal waterworks, and shall take effect immediate.
upon delivery of any of the bonds authorized hereby, all subject, however, to the
priorities and vested rights in favor of said Water Works Bonds dated October 1,
1930. Any holder of said bonds or of any of the coupons may either at law or
in equity, by suit, action, mandamus or other proceedings, enforce and compel
performance of all duties and obligations of the city as herein set forth, in-
cloding the making and collecting of sufficient rates and segregation of the in-
come and revenues and the application thereof.
If there be any default in the payment of the principal of or interest on
any of said bonds then, upon the filing of suit by any holder of said bonds or of
any of the coupons, any court having jurisdiction of the action may appoint a
receiver to administer said wateeworks on behalf of the city with power to charge
and collect rates sufficient to provide for the payment of any bonds or obligations
outstanding against said system, and for the payment of the operating expenses,
and to apply the income and revenues in conformity with this ordinance and the
provisions of said statute laws of Kentucky aforesaid.
Section 8. The bonds herein authorized to be issued and the bonds
ranking of a parity therewiti from time to time outstanding shall not be entitled
to priority one over the other in the application of the revenues of said water-
works regardless of the time or times of their issuance, it being the intention
that there shall be no priority among the bonds authorized or permitted to be
issued under the provisions of this ordinance, regardless of the fact that they
may be actually issued and delivered at different times. Said city hereby re-
serves the right and privilege of issuing additional bonds from time to time,
payable from income and revenues of said waterworks ranking on a parity with the
bonds herein authorized only under the following -conditions:
Additional bonds ranking of a parity with the bonds herein authorized may be
issued from time to time in order to pay the costs of further extensions, im-
provements and betterments to said municipal waterworks; provided, that befre any
such additional bonds may be issued under this subparagraph there has been pro-
cured and filed with the City Clem a statement by an independent certified public
accountant not in the regular employ of the city reciting the opinion based upon
necessary investigation, that the net annual revenues of saidwater works for
twelve consecutive months out of the preceding eighteen months was equal to at
least one and one-half times the amount of principal and interest that will becme
due in any succeeding calendar year on the bonds then outstanding, and the bonds
then proposed to be issued.
The interest payment dates From all such additional bonds hereinbefore
permitted shall be semi-annually on April 1 and October 1 of each year, and the
principal maturities of all such additional bonds shall be on April 1 of the
year in which any such principal is scheduled to become due. "Net annual revenues"
are defined as gross revenue less pperating expenses which shall include salaries,
wages, cost of maintenance and operation, materials and supplies, pumping cost
and insurance, as well as all other items as are normally and regularly included
under recognized accounting practices, exclusive of allowances for depreciation,
and the amount of gross revenue aforesaid shall be adjusted to reflect any re-
vision in the schedule of rates and charges being imposed at the time of the
issuance of any such additional bonds, such adjustments to be based upon certifi-
cation by a consulting engineer of national reputation.
The additional bonds (sometimes herein referred to as "Additional
parity bonds"), the issuance of which is restricted and conditioned by this sec-
tion, shall be understood to mean bonds payable from revenues of said waterworks
of a parity with the bonds herein specifically authorized and shall not be deemed
to include other obligations, the security and source of payment of which are
payable from the excess income and revenues from such municipal waterworks and are
subordinate and subject to the priority of the bonds herein authorized to be issued
'Section 9. It is hereby covenanted and agreed that so long as any of
the bonds hereby authorized are outstqnding the city will carry for the benefit
of the holders of the bonds adequate fire and windstorm insurance on all build-
ings and structures of the waterworks which are subject to loss through fire or
windstorm and will carry adequate public liability insurance, and will carry for
the benefit of the holders of the bonds insurance of the kinds and in the amounts
normally carried in the kperation 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 and such payments shall not reduce the
amounts otherwise required to be paid into said fund. Disbursements of such pro-
ceeds shall be made in the same manner and for the same purposes as are other
disbursements made from the Depreciation Fund.
SECTION 10. That the city hereby covenants and agrees it will cause
proper books and accounts adapted to the waterworks to be kept and will cause the
books and accounts to be audited annually by a recognized independent firm of
certified public accountants and will make generally available to the holders of
any of the bonds the balance sheet and the profit and loss statement of the
system as certified by such accountants. The holders of any of said bonds shall
have at all reasonable times the right to inspect the system and the recprds,
accounta and data of the city relating thereto.
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Section 11. That the City Clerk is hereby authorized and directed to
cause notice of the sale of the bonds hereby authorized to the amount of X500,000,
consisting of bonds numbered 1 to 500, inclusive, to be published in the Courier -
Journal, a legal newspaper printed and published in Louisville, Kentucky; and
The DunDemocrat published in Paducah, Kentucky; and that at a time and place
stated therein, which shall be the time and place of a scheduled meeting of this
Board of Commissioners, proposals may be filed and will be considered for the
purchase of bonds as hereinbefore authorized, bearing interest at a rate or rates
not exceeding the maximum rate hereinbefore prescribed, and upon terms of not less
than par, plus accrued interest. The balance of the bonds hereby authorized shall
be retained for issuance, sale and delivery as may be otherwise prescribed by the
Board of Commissioners. The proceeds derived from the issuance of the bonds here-
inbefore authorized after the withdrawal of the sum hereinbefore provided for in-
terest shall be set apart in a special fund to be used and disbursed only for the
purpose of defraying the cost of constructing extensions and permanent inprove-
ments to the municipal waterworks system of said city.
Pending expenditures such proceeds shEIll be deposited in a bank or
banks, and each such deposit to the extent it causes the aggregate deposits by
said city in any such bank to be in excess of u10,000 shall be secured by a surety
bond or bonds furnished by a surety company or companies qualified or authorized
to do business in Kentucky, or by pledge of direct obligations or by guaranteed
bonds or securities of the United States of America having a market value equiv-
alent to such deposit. If it is determined at any time that the amount of bond
proceeds being held for construction costs is in excess of the amount necessary to
be disbursed therefrom for the authorized purpose during the ensuing six months
such excess may be invested in interest bearing bonds or other direct and general
obligations of the United States Government having a maturity date or being subject
to retirement at the option of the holder not more than five years subsequent to
the date of such investment, and all such investments as well as all income there-
from shall be carried to the credit of such construction fund.
Section 12. The provisions of this ordinance shall constitute a contract
between the City of Paducah and the holders of the bonds herein authorized to be
issued, and after the issuance of any of the bonds no change, variation or altera-
tion of any kind of the provisions of this ordinance shall be made in any manner
except as herein provided, until such time as all of said bonds issued hereunder
and the interest thereonhave been paid in full.
SECTION 13. If any section, paragraph, clause or provision of this
ordinance shall be held invalid, the invalidity of such section; paragraph, clause
or provision, shall not affect any of the remaining provisions of this ordinance.
SECTION 14. All ordinances, resolutions and orders, or parts thereof,
in conflict with the provisions of this ordinance are, to the extent of such con-
flict, hereby repealed, and it is hereby specifically ordered and provided that;
all authorized but; unissued Water Works Bonds of said city dated October 1, 1930,
698
and all other authorized but unissued obligations payable from the revenues of
said municipal waterworks shall not be issued and all such authorizations are
hereby revoked and rescinded.
Introduced March 25, 1952
Adopted April 1, 1952
Approved tri / 1952
Xt: �J� //-
City Clerk
Recorded April 1, 1952
City Clerk
Mayor