HomeMy WebLinkAboutOrdinances Book 16, Page 5, No Ordinance Number5 /
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR AND CITY
TREASURER TO BORROW $85,000.00 FOR THE USE AND BENEFIT OF THE CITY
OF PADUCAH, KENTUCKY FOR THE CONSTRUCTION OF SANITARY SEWERS AND
SEWERS FOR THE RELIEF OF EXISTING SANITARY SEWERS FOR THE CITY OF
PADUCAH, KENTUCKY; TO EXECUTE A NOTE OR NOTES FOR SAID SUi FOR AND
ON BEHALF OF SAID CITY, AND TO PLEDGE AS SECURITY THEREFOR THE SUM
OF *85,000.00 FROM THE PROCEEDS OF THE SALE OF "CITY OF PADUCAH VOTED
SEWER BONDS", WHICH BOND ISSUE WAS APPROVED BY THE VOTERS OF THE CITY
OF PADUCAH, KENTUCKY AT A REGULAR ELECTION ON NOVEMBER 2, 1965, AND
AUTHORIZED BY THE BOARD OF COAMIISSIONERS OF SAID CITY ON APRIL 26,
1966 BY ORDINANCE RECORDED IN ORDINANCE BOOK 15, PAGE 917
WHEREAS, by an ordinance adopted by the Board of Commiss-
ioners of the City of Paducah on July 20, 1965 and recorded in
Ordinance Book 15, pare 670, an election was ordered to be held
on the regular election day, November 2, 1965, on the question
as to whether or not the City of Paducah should incur an indebt-
edness in the sum of $2,500,000.00 for the construction of sanitary
sewers and sewers for the relief of existing sanitary sewers, and
WHEREAS, said question was decided in the affirmative,
more than two-thirds of the qualified voters who voted having
cast their vote in favor of the incurring of said indebtedness,
and
WHEREAS, pursuant to said election the said Board of Com-
missioners by ordinance adopted the 26th day of April, 1966 and
recorded in Ordinance Book 15, page 917 authorized the issuance
of bonds to be known as "City of Paducah Voted Sewer Bonds" in
the principal sum of $2,500,000.00, and
WHEREAS in anticipation of the sale of said bonds and the
commencement of said sewer construction the City of Paducah has
employed consulting engineers, acquired certain rights-of-wau, and
has taken other steps necessary and incidental thereto, and by reason
thereof certain necessary and incidental costs and expenses in the
amount of approximately $85,000.00 have been incurred, and
U11EREAS, heretofore and in 19(6 the City of Paducah, Kentucky
pursuant to the terms of an ordinance adopted by its Board of
Commissioners on December 13, 19(6, did borrow said sum of $85,000.00
from The Peoples First National Pank and Trust Company of Paducah,
Kentucky, to pay said necessary expenses, and said City did use and
pledre as security therefor the sum of *-,85,000.00 from the proceeds
of the anticipated sale of the aforementioned "City of Paducah Voted
Sewer Bonds", and all of said indebtedness became due on December 31, 1966,
'diHEREAS, it is necessary that said indebtedness in the sum of
485,000.00 be paid and it is the said Board of Commissioners' in-
tention for the Citv of Paducah to borrow said sum of 4$5,000.00 .for
the purpose of payinn said indebtedness .for expenses incurred and
adl!anced for the construction of sanitary sewers and sewers for the
relief of existing sanitary sewers, and to again use and pledge as
security therefor the sum of 485,000.00 from the proceeds of the
sale of the aforementioned "City of Paducah Voted Sevier Bonds".
NO'Y THEREFORE, BE IT ORDAINED BY THE BOARD OF COi13;ISSIONERS
OF THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. That the Iiayor and City Treasurer are hereby auth-
orized and directed to borrow, on I-ehalf of and for the use and
benefit of the City of Paducah, Kentucky, from any bank, banks,
or trust companies orr_anized or existing under the laws of the
State of Kentucky, or of the United States of America, or any
of the states or territories thereof, person, firm, or association
the sum of 4'$5,000.00 to bear interest at the rate of not exceeding
3� per annum.
SECTION 2. A note or notes shall I -.a executed for such
loan which shall hear the sienature of the City of Paducah,
Kentucky by its L;ayor and City Treasurer. Such. note or notes
shall bear interest not to exceed the amount as prescribed in
the first section hereof, and said note or notes shall be due
and payable not later than December 31, 19(7. There is hereby
pledged as security for such note or notes the sum of :S85,000.00
from the proceeds of the sale of "City of Paducah Voted Sewer
Bonds" in the authorized prinicpal amount of 4'2,500,000.00
which were approved by the voters of the City of Paducah at a
regular election on November 2, 1965 and authorized by the
Board of Commissioners of the City of Paducah by an ordinance
adopted April 26, 1966 and recorded in Ordinance Book 15, paee
917, and said Mayor and City Treasurer are herebv authorized to
execute any and all instruments necessary to secure such pledge.
SCCTIOid3. All bank drafts, cashier's checks or other
checks, constituting all sums or money borrowed by the City of
Paducah under the terms of this ordinance shall be made payable
to the City of Paducah and shall be endorsed b,* the City Treasurer
for and on behalf of said City and deposited in Peoples First
National Bank and Trust Company of Paducah, Kentuckv in an account
designated "Sewer Construction Fund" which account was authorized
by Section 8 of the aforementioned ordinance of April 26, 196(;
and said sums shall he used and applied to payment of the aforesaid
indebtedness owing to the Peoples First National Bank and Trust
Company, which indebtedness was incurred, and the proceeds received
from said loan applied to, the payment of fees for consulting
engineers, acquisition of certain rights-of-way and other necessary and
incidental expenses incurred in connection with the construction of
sanitary sewers and sewers for the relief of existing sanitary sewers
and in anticipation of the sale of the "City of Paducah Voted Sewer
Bonds", as aforesaid.
SECTION 4. This ordinance shall be in full force and effect
from and after its adoption.
Mayor
Passed by the Board of Commissioners January 3, 1967
Recorded by Sarah Thurman, City Clerk, January 3, 1967.