Loading...
HomeMy WebLinkAboutOrdinances Book 12, Page 850, No Ordinance Number850 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF MUNICIPAL HOSPITAL REVENUE BONDS, SERIES OF 1952, OF THE CITY OF PADUCAH, KENTUCKY, FOR THE PURPOSE OF DEFRAYING THE COST OF ADDITIONS TO AND IMPROVEMENTS OF THE MUNICIPAL HOSPITAL OF SAID CITY AND PROVIDING FOR THE COLLECTION, SEGREGATION -AND DISTRIBUTION OF INCOME AND REVENUES FROM THE OPERATION OF SAID HOSPITAL. IMEREAS, the City of Paducah, in McCracken County; Kentucky, pursuant to the provisions of the law now contained under Sections 216.080 to 216:240, inclusive, of Chapter 216 of Kentucky Revised Statutes, has heretofore established and presently owns, maintains and operates a municipal hospital and for the purpose of thereby supply said city and its inhabitants with modern and sanitary hospital facilities it is necessary and advisable in the public interest to provide for additions to and improvements of said municipal hospital generally described as consisting of three-story and ground floor addition in brick and re- inforced concrete and stell joist construction. The building -to have a flat, built up roof with asphalt tile floors, painted plaster walls, and pursuant to said law, and particularly -Section 216.220 thereof, said city is authorized and permitted to provide for such additions and improvements and to issue revenue bonds to pay the cost thereof; and WHEREAS said city presently has outstanding its 2% Municipal Hospital Revenue Refunding Bonds to the amount of $44,000 dated April 1, 1946, which by their terms are payable from and are secured by a prior charge on and pledge of the revenues derived from the operation of said municipal hospital and it has been represented that all of said bonds are available for surrender and retirement from available funds, thus enabling said city to more advantageously finance the cost of said additions and improvements on a revenue basis; and WHEREAS it is necessary at this time that provision be made for the issuance of revenue bonds to the amount of three hundred fifty-seven thousand dollars ($357,000) for the purpose of defraying the cost of said additions and improvements; NOW, THEREFORE, The Board of Commissioners of the City of Paducah, Kentucky, does ordain as follows: SECTION 1 That for the purpose of paying the cost of additions to and improvements of the municipal hospital of the City of Paducah, Kentucky there are hereby authorized to be issued the revenue bonds of said city to be known as IlMunicipal Hospital Revenue Bonds, Series of 1952," in the principal amount of $357,000, which bonds shall bear date of July 1, 1952, be of the denomination of $1,000 each, numbered consecutively 1 to 357, inclusive, bear interest at the rate of four per cent (4%) per annum or such lesser rate or rates as may be fixed as a result of public competitive bidding and sale of said bonds, as hereinafter provided, such interest to be payable semi-annually on January l and July 1 of each year. Such bonds shall be scheduled to mature in numerical order on January 1 of the respective years as follows: 851 Year Amount Year Amount 1954 $10,000 1965 $16,000 1955 10,000 1966 17,000 1956 3.1,000 1967 17,000 1957 12,000 1968 18,000 1958 12;000 1969 19,000 1959 13,000 1970 19,000 1960 13,000 1971 20;000 1961 14,000 1972 21,000 1962 14,000 1973 22,000 1963 15;000 1974 23;000 1964 15,000 1975 26,000 provided, however, that said bonds numbered 11 to 357, inclusive, shall be optional for redempt- ion prior to maturity on any interest payment date on or after July 1, 1954, 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 sblected by lot), and in the event of such redemption it is hereby agreed that the city will pay to the holders of the respective bonds upon surrender thereof interest in addition to ,hat accrued at the coupon rate, in an amount equal to three per cdnt (3%) of the principal amount thereof for any bonds called for redemption on or before January 1, 1959; two per cent (2%) of such principal amount if called for redemption thereafter and on or before January 1, 1964; one per cent (1%) of such principal amount if called for redemption thereafter and on or before January 1, 1969; and without payment of any such additional interest if called for redemption thereafter. 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 redeemed 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. All such bonds thus called for redempt- ion 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 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 the interest thereon, shall be payable out of the special fund hereinafter referred to, and the portion of the gross income and revenues of the municipal hospital of said city pledged to said fund. 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, such registration to be noted on the reverse side of the bonds by the City Treasurer, and therafter the principal of such registered bonds shall be payable only to the registered holder, his legal representatives or assigns. Such registered bonds shall bw 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. a 852 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 COM-MNAVEALTH OF KENTUCKY COUNTY OF McCRACKEN CITY OF PADUCAH MUNICIPAL HOSPITAL REVENUE BOND SERICE OF 1952 Number $1,000 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 January,'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, semi-annually on the first days of January and July in each year until said principal sum is paid, except as the provisions hereinafter set forth with respect to redemption -prior to maturity may be and become applicable hereto, all such interest securing on and prior to the maturity date hereof to be payable only upon presentation and surrender of the coupons hereto appertaining as they shall severally fall due, both principal and interest on this bond being payable in lawful money of the United States of America at the Citizens Bank & Trust Company in the City of Paducah, Kentucky. This bond is one of a series numbered from 1 to 357, inclusive, issued by said City pursuant to ordinance duly enacted for the purpose of defraying the cost of additions to and improvements of the municipal hospital of said city under and in full compliance with the Constitution and statutes of the Commonwealth of Kentucky, including among others Sections 216.080 to 216.240, inclusive, of the Kentucky Revised Statutes. The bonds numbered ll to 357, inclusive, of -the series of which this bond is one are optional for redemption by said city prior to maturity on any interest payment on or after July 1,1954, in whole or from time to time in part in the inverse order of their maturities (less than all of the bonds of a single maturity to be selected by lot), and in the event of such redemption it is hereby agreed that said city will pay to the holders of the respective bonds upon surrender thereof 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 if called for redemption on or prior to January 1, 1959; two per cent (2%) of such principal amount if called for redemption thereafter and on or prior to January 1, 1964; one per cent (1%) of such principal amount if called for redemption thereafter and on or prior to January 1, 1969; and without payment of any such additional interest if called for redemption thereafter. It is hereby further 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. 853 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. This bond and the series of which it is one are payable only from and secured by the income and revenues to be derived from the operation of said municipal hospital, and 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 that responsive to Section 216.160 of Kentucky Revised Statutes it will fix such rates for the use and services of said municipal hospital and will 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. 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 ggain registered as before. The registration of this bond as to principal shall not restrain the negotiability of the coupons by delivery merely. A statutory mortgage lien which is hereby recognized as valid and binding on said municipal hospital, together with additions thereto and improvements thereof, is created and granted to and in favor of the holder of holders of this bond and the issue of which it forms a part and in favor of the holder or holders of the coupons attached to said bonds, and said hospital 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. 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 percedent to and in the issuance of this bond, have existed, have happened and have been performed in due time, form 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 of Statutes of the Commonwealth of Kentucky and that a sufficient amount of the income and revenues of said municipal hospital has been pledged to and will bw set aside into a special fund by said city for the promt payment of the principal of and interest on this bond and series of which it is one. IN WITNESS WHEREOF said City of Paducah, Kentucky, has caused this bond 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 execution 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 the first day of July, 1952. Atte ti City Clerk i r�- o �_1 Mayor 854 I (Form of Coupon) Nuaber $ On the first day of , 19 , the City of Paducah, Kentucky, will pay to bearer Dollars ($ ) at the Citizens Bank & Trust Company, in the City of Paducah, Kentucky, as provided in and for interest then due on its Municipal Hospital Revenue Bond, Series of 1952, dated July 1, 1952; Numbered , Attest: City Clerk (Form of Registration) Mayor Date of In F&ose Name Signature of City Treasurer Registration Registered SECTION 4- The municipal hospital of said City of Paducah as it.now exists or may hereafter be improved and extended while any of the revenue bonds herein authorized remain outstanding, including all real and personal property of every nature or useful as a part of said hospital, are hereinafter in this ordinance referred to as the "hospital." Said city hereby covenants and agrees with each successive holder of the revenue bonds herein authorized and the coupons thereto attached that it will fix and maintain rates and collect charges for the services and facilities afforded by the hospital which will provide revenues fully sufficient at all times, and after making due and reasonable allowances for contingencies and for a margin of error in the estimates: (a) to pay the interest an and principal of the bonds as the%same shall become due and payable, and for that purpose to establish and maintain a special fund which is hereby created, and designated 111952 Hopital Revenue Bonds Sinking Fund," to which fund the transfers hereinafter provided shall be make and which fund will be sufficient to provide for the payment of the interest an and principal of said revenue bonds as the same fall due, and to provide a reserve therefor as hereinafter provided; (b) to pay all current expenses of operation and maintenance of the hospital; and (c) to provide an adequate Depreciation Fund as hereinafter provided for the hospital, and otherwise to comply in all respects with the terms of this ordinance. From and after the issuance of any of the revenue bonds hereinzauthorized the gross revenues of the,hospital shall be deposited as received in a solvent bank, which is a member of the Federal Deposit Insurance Corporation, in an ac count separate and apart from all other municipal funds or accounts, to be designated the "Hospital Revenue Fund." The moneys in said fund shall be set aside each month into separate and special funds, as follows: 855 (a) 1952 Hospital Revenue Bonds Sinking Fund: There shall be a fund known as 111952 Hospital Revenue Bonds Sinking Fund", which shall be used solely and only for and is hereby pledged to the payment of the principal of and interest on the revenue bonds herein authorized and creating and maintaining a reserve therefor. It is hereby determined and ordered that the minimum amount to be so paid into said sinking fund during the period ending January 1, 1953 shall be $15,000 inclusive of the amount received as accrued interest and paid into said fund as hereinafter provided, and thereafter during the respective calendar years there shall be so paid into said sinking fund in substantially equal monthly installments the following stated minimum amounts: During the During the Calendar Year: Amount Calendar Year: Amount 1953 $30,000 1964 $24,720 1954 30,000 1965 25,080 1955 30,000 1966 24,400 1956 25,040 1967 24,720 1957 24,650 1968 25,000 1958 25,080 1969 24,240 1959 24,560 1970 24,480 1960 25,040 1971 24,680 1961 24,480 1972 24;840 1962 24,920 1973 24960 1963 24,320 1974 27,040 The foregoing prescribed minimum payments are stated on the assumed basis that the bonds hereby authorized will be issued and will bear interest at the rate of four per cent per annum, and said minimum payments for each year shall be proportionately reduced to reflect the amount of principal of unissued bonds and said minimum payments for the cAlendar years 1956 to 1974,inclusive, shall also be automatically decreased by the difference between the actual annual interest requirements on said bonds from time to time outstanding as compared WITH INTEREST COMPUTED thereon at the rate of four per cent per annum. Any funds in said sinking fund for the account of the bonds herein authorized which is in excess of the amount of interest and principal becoming due within the ensuing twelve months may be invested upon orders of the Board of Commissioners in direct obligations or guaranteed bonds or securities of the United States of America having a maturity date or being subject to redemption at the option of the holder thereof not more than five years subsequent to the date of investment therein, and all such investgients as well as the income therefrom, shall be credited to said sinking fund. Interest accruing on the bonds hereby authorized during the construction period of the additions and improvements shall be deemed an item of construction cost and to the extent such interest is not paid from revenues and income of the municipal hospital shall be paid from the proceeds of said bonds. All accrued interest that may be received from the sale of the bonds hereby authorized shall be paid into said sinking fund as a credit toward the payment hereinbefore provided to be made during the period ending January 1, 1953, and shall be used solely and only for the payment of interest on the'bonds hereby authorized. The amount by which the prescribed payments into said sinking fund aforesaid exceeds the current interest and principal requirements shall be held in said sinking fund as a reserve and, unless all of the bonds hereby authorized and then outstanding are to be called and redeemed, only such part thereof shall be used to call and redeem bonds hereby authorized as may be in excess of one and one-hald times the amount of interest and principal becoming due within the ensuing twelve months. 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 retirement of the bonds herein authorized to be issued. (b) Depreciation Fund: After deducting the prescribed monthly payment into the 1952 Hospital Revenue Bdnds Sinking Fund from the gross income and revenues for each respective month an amount equal to three per cent of the balance thereof shall be trasferred and paid into a Depreciation Fund shall aggregate $10,000 and whenever withdrawals are made from said Depreciation Fund as to reduce the balance therein to less than $10,000 then the trasfers andppayments therein shall continue as aforesaid so as to restore the amount therein to at least $10,000. Withdrawals and disbursements may be made from said Depreciation Fund for the purpose of meeting special or unforseen emergencies or repair or replacement work in connection with the operation of of the hospital or for the payment of the cost of constructing extensions, improvements, betterments or additions thereto, and provided also that withdrawals and disbursements shall be made from said Depreciation Fundto meet the payment of interest on or principal of said revenue bonds to whatever extent, and if for any reason funds in the sinking fund are in- sufficient for that purpose. All funds in the Depreciation Fund shall be kept apart from all other municipal funds, 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 maturing or being subject to retirement at the option of the holder within not more than ten years from the date of such investment. 856 (c) Operation and Maintenance Fund: There shall be a fund known as the "Operation and Maintenance.Fund," into which there shall be set apart and paid each month an amount considered necessary and sufficient to pay the reasonable expdases of operating and maintaining the hospital for the current month. After said first day of the month further transfers may be made from the-Reveaue Fundto the Operation and Maintenance Fund on any subsequent day during the said current month but only if and to the extent necessary to pay such expenses actually accrued and _ payable.. (d) Excess Revenues: Whenever all specified and required transfers and payments into the special funds hereinbefore provided have been made and there is a blaance in the Hospital R venue Fund in the Hospital Revenue Fund in excess of the estimated amounts required to be so transferred and paid into said special funds during the succedding three months such excess shall not be regarded as surplus revenues but all or any part of such excess may be withdrawn and transferred to (1) the sinking fund, (2) to the Depreciation Raid, or (3) to the Operation and Maintenance Fund, and if not so withdrawn and transferred shall be used for the purchase of revenue bonds prior to maturity, provided, no such purchase of bonds may be made upon terms exceeding the par value thereof plus accrued interest. _ SECTION 5 It is hereby represented that said hospital has heretofore and will continue to be under the control, management and operation of a Munic ipal Hospital Commission created, functioning and having the powers as set forth under Section 216.240 of Kentucky Revised Statutes. SECTION 6 That while any of the revenue bonds issued hereunder are outstanding the City covenants and agrees not to issue any other bonds or.incur any other obligations payable from the revenues of the hospital unless the lien and security for the payment thereof are specifically made subject to the priority and preferences of the.undertakings and provisions herein set out for payments into the 1952 Hospital Revenue Bonds Sinking Fund. SECTION 7:, That the City of Paducah hereby covenants and agrees with each and every sucessive holder of the revenue bonds issued hereunder: (a) That the city will maintain the hospital in good condition, and.operate the same in an efficient manner and at reasonable cost; (b) That as long as any of said revenue bonds issued under the provisions of this ordinance remain outstanding the city will maintain insurance on the buildings and contents constituting a part of'the hospital.of a kind and in an amount which would normally be carried by private organizations engaged in similar business. The cost of such insurance may be paid from said Operation and Maintenance Fund and the proceeds of any such insurance shall be used to repair or replace the part of parts of the hospital destroyed or, if not so used,.shall be placed in. the sinking fund; (c) That so long as any of the revenue bonds.issued hereunder are outstanding the city will not sell, lease, or otherwise dispose of any portion of the hospital except such equipment or materials of a minor nature which may be found and determined to be no longer needed or useful and the proceeds thereof shall be used for replacements or paid into the Depreciation Fund; (d) That the city will cause to be kept proper books, records and accounts, separate and apart from all other records and accounts, in which complete and correct entries shall bed made, of all transactions relating to the hospital in the manner and in such detail as is commonly followdd by privately owned hospitals, and the city will cause said books and accounts to be audited annually by a certified public accountant and will make generally available to the holders of any of said revenue bonds the balance sheet and profit and loss statement of the hospital as certified by such accountant; (e) That the holder of any of the revenue bonds issued hereunder at any time outstanding shall have the right at all reasonable times to inspect the hospital and all records, accougts- and data of the city relating thereto, and upon request the city will furnish to such holder or holders such financial statements and other information relating to the city and the hospital as such holder or holders may from time to time reasonable require; 857 M That while the revenue bonds authorized herein, or any of them, remain outstanding and uppaid, the rates for all services rendered by the hoppital shall be reasonable and just, taking into accout and consideration the cost and value of the hospital and the cost of maintenance and -operation thereof, and the proper and necessary allownances for the depre- ciation thereof, and the amounts necessary for the retirement of the revenue bonds herein authorized, and the payment of -interest thereon, and there shall be charged against all persons, -firms or corporations, including said city for the services and facilities of the hospital, such rates and amounts as shall be adequate to meet the requirements of this and the preceding sections hereof, and that all revenues received from s}ich rates and charges will be placed in the separate accounts and used as provided by Section 4 hereof. No free service or service other than in accordance with the established rate schedule shall be furnished. SECTION 8 That for the further protection of the holders of the bonds herein authorized to be issued and the coupons thereto attached a statutory mortgage lien upon said municipal hospital and all properties connected therewith and extensions thereof and belonging thereto is granted and created by Section 216.140 of the 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 said municipal hospital as provided by law, and shall take effect immediately upon the delivery of any bonds authorized to be issued under the provisions of this ordinance. Any holder of said bonds hereby authorized or of any of the coupons, may either at law or in equity, by suit, action, mandamus, or other proceeding, protect and complet performance of all duties imposed or required by this ordinance or the law pursuant to which said bonds are to be issued, including the making and collecting of sufficient rates and segregation of the income and revenues and the application thereof; that 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 hospital on behalf of the city, with power to charge and collect rates sufficient to provide for the payment of all such bands and for the payment of the operating and maintenance expenses, and to apply the income and revenues in conformity with this ordinance and the provisions of said statute laws of Kentucky. SECTION 9 That the City Clerk is hereby authorized and directed to cause notice of the sale of the bonds hereby authorized to the amount of $300,000, consisting of all of said bonds except $3,000 maturing in each of the years 1957 to 19753 inclusive, to be published in the Courier -Journal, a legal newspaper printed and published in Louisville, Kentucky, and The Bond Buyer, published in New York City, New York; 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 said bonds as hereinbefore authorized, bearing interest at a rate or rates not exceeding the maximum rate hereinbefore prescribed, and upon terms of purchase not less than 102% of the principal amount thereof, plus accrued interest. At or before the time of the initial issuance and delivery of bonds hereby authorized all previously issued bonds payable from the income or revenues of the hospital shall be cancelled and retired. The balance of the bonds hereby authorized shall be retiided for issuance, sale and delivery as may be othervise prescribed by the Board of Commissioners. The proceeds derived from the issuance of all of the beads herein authorized subject to withdrawal of the sums hereinbefore provided for interest and any approved expenses in connection with the authorization, issuance and sale of the bonds, shall be set apart in a special construction fund to be used and disbursed only for the purpose of defraying the cost 858 of the additions to and improvements of the municipal hospital as hereinbefore generally described. SECTION 10 The provisions of this ordinance shall constitute a contract between the City of Paducah and the -holders of the bonds herein authoriz ed to be issued, and after the issuance of'any of the bonds no change, variation or alteration 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 thereon have been paid in fun. SECTION 11 If any section, paragraph, clause or provision of this ordinance shall be held invalid, the invalidity of such section, paragraph , clause or provisions, shall not affect any of the remaining provisions of this ordinance. SECTION 12 All ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this ordinance are, to the extent of such conflict, hereby repealed. Mayor Introduced June 24, 1952 Adopted July 8, 1952 Approved July 8, 1952 Attest: / --, � City Clerk Recorded Tuly 8. 1952 City Clerk