HomeMy WebLinkAboutOrdinances Book 17, Page 1171, No Ordinance NumberAN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING THE
ISSUANCE OF SAID CITY'S "WATER WORKS REVENUE BONDS, SERIES OF 1972," IN
ORDER TO DEFRAY THE COSTS (NOT OTHERWISE PROVIDED) OF CONSTRUCTING CERTAIN
EXTENSIONS, IMPROVEMENTS, ADDITIONS AND ENLARGEMENTS TO THE MUNICIPALLY
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OWNED WATER WORKS OF SAID CITY, TOGETHER WITH ALL EXPENSES IN CONNECTION
THEREWITH; FINDING AND DECLARING THAT ALL PARITY BOND CONDITIONS AND
RESTRICTIONS HAVE BEEN MET AND WILL BE COMPLIED WITH, AND THAT BY REASON
THEREOF SAID BONDS WILL RANK ON A BASIS OF PARITY AND EQUALITY AS TO
SECURITY AND SOURCE OF PAYMENT WITH PREVIOUSLY ISSUED "WATER WORKS IMPROVEMEN
AND REFUNDING REVENUE BONDS, SERIES 1965"; REAFFIRMING AND CONTINUING
EXISTING PROVISIONS FOR THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE
REVENUES OF SAID WATER WORKS, SUBJECT TO ADJUSTMENTS WHICH ARE REQUIRED
IN CONNECTION WITH THE ISSUANCE OF PARITY BONDS; REAFFIRMING AND CONTINUING
PREVIOUSLY ESTABLISHED CONDITIONS AND RESTRICTIONS PURSUANT TO WHICH SAID
CITY MAY ISSUE IN THE FUTURE ADDITIONAL REVENUE BONDS PAYABLE FROM THE
REVENUES OF SAID WATER WORKS AND RANKING ON A BASIS OF PARITY WITH THE BONDS
PREVIOUSLY ISSUED AND THOSE NOW AUTHORIZED; AND PROVIDING FOR AN ADVERTISED,
PUBLIC, COMPETITIVE SALE OF THE BONDS HEREBY AUTHORIZED.
WHEREAS, the works, installations and facilities which provide water
service and fire protection in the City of Paducah, McCracken County,
Kentucky, have long been awned by said City, and operated by said City as
"The Paducah Water Works" (hereinafter for convenience sometimes referred to
as the "Water Works"), by and through its "Commissioners of Waterworks"
(for convenience hereinafter sometimes referred to as the "Water Board"),
as a public, municipal, revenue-producing undertaking for preserving and pro-
moting the public health, safety and general welfare of the citizens and
inhabitants of said City and its environs; and in that connection the City
has paid and retired all bonds at any time previously issued and which
are payable from the revenues of said Water Works except
$1,630,000 principal amount of said City's "Water
Works Improvement and Refunding Revenue Bonds, Series
1965," dated July 1, 1965 (for convenience hereinafter
sometimes referred to as the "1965 Bonds"), maturing
serially in various amounts on July 1 in each of the
years 1973 to 1980, inclusive; being all of the issued
and outstanding bonds of a series in the original
principal amount of $2,850,000, authorized by a certain
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Ordinance finally adopted by the Board of Commissioners
of said City on August 17, 1965 (for convenience herein-
after sometimes referred to as the "1965 ordinance"); and
WHEREAS, The City, acting through said Water Board, and
pursuant to a covenant made in the 1965 Ordinance, has employed from
time to time a firm of Consulting Engineers of national recognition
in the field of water engineering to make physical inspections of
the Water Works and to file in the offices of the City Clerk and of
the Water Board written reports of the physical condition thereof,
together with comments and recommendations regarding needed repairs,
replacements, renewals, additions, extensions, enlargements and
acquisitions, if any; and pursuant to a "Comprehensive Study and
Report for Water Main Extensions (1971)" so prepared and filed, it
has been caused to appear that extensive installations of water
mains, together with appurtenant valves, fire hydrants, and the
necessary fittings and accessories should be undertaken to preserve
and continue the capacity of the Water Works to serve the needs of
the community, particularly in connection with the maintenance of
high standards of fire protection in the interests of the public
health, safety and general welfare; and pursuant thereto the Con-
sulting Engineers were instructed to, and did, prepare and submit
plans and specifications for such recommended improvements and
extensions, such plans and specifications were approved, advertise-
ment was duly made in the solicitation of construction bids and the
same have been received and approved, subject to payment from the
proceeds of the revenue bonds herein authorized; and
WHEREAS, Application was made to the United States Depart-
ment of Housing and Urban Development ("HUD"), and pursuant thereto
the City has received and accepted a grant in aid in the estimated
amount of $262,000 (HUD Project No. WS -KY -69); and
WHEREAS, in accordance with the recommendations of the
Consulting Engineers, and even prior to the authorization of the
foregoing improvements, the City, upon recommendation of the Water
Board, authorized certain improvements which were smaller in scope
and more urgent in terms of need, and in view of the pendency of
preparations for the undertaking and financing of the more substan-
tial improvement program hereinabove referred to, it was deemed to
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be wise and provident to effect interim financing thereof through
temporary bank loans, in order that the City might finance all of
the improvements herein referred to through the issuance of a single
series of revenue bonds, instead of issuing two separate series; and
said course of action was recommended by the City's Fiscal Agent,
and it is now desirable to authorize a single series of the City's
"Water works Revenue Bonds, Series of 1972," in the 'principal amount
of $685,000, the net proceeds of which, as supplemented by the above-
mentioned HUD Grant in the sum of $262,000, will be sufficient to
retire the temporary bank loans and also finance the improvement
program represented by the construction bids recently received,
NOW, THEREFORE, BE IT AND IT IS HEREBY ORDAINED BY THE
BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS:
Section 1. Authorization is hereby given for undertaking
the program for extensions, additions and improvements to, and en-
largements of, the municipal Water Works, substantially as set forth
and recommended in the above -identified report heretofore made to
the City and the Water Board by Edward T. Hannan & Associates, Inc.,
Consulting Engineers, Paducah, Kentucky, as represented by the plans
and specifications subsequently prepared and approved, and according
to the construction bids which have been duly received, analyzed
and recommended for acceptance by said Consulting Engineers. The
City hereby ratifies the previous actions of the Water Board, taken
with the approval of the City, in completing other additions, exten-
sions and improvements, and the interim financing thereof through
temporary bank loans in the sum of $275,000. The aggregate of all
of said extensions, additions, improvements and enlargements of
the municipal Water Works is sometimes hereinafter referred to as
the 111972 Project." It is hereby determined that the costs of said
1972 Project, including repayment of such temporary bank loans,
shall be financed at this time through the issuance of the revenue
bonds hereinafter authorized.
SECTION 2. In order to provide funds (to the extent not
otherwise provided) for the purposes recited and set forth in the
preamble of this Ordinance and in the preceding Section hereof,
there are hereby authorized to be issued one hundred thirty-seven
(137) negotiable coupon Water Works Revenue Bonds of the City of
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Paducah, Kentucky (subject to registration as to principal only, as
hereinafter provided), in yhe aggregate principal amount of Six
Hundred Eighty-five Thousand Dollars ($685,000), each of which shall
be designated as "Water Works Revenue Bonds, Series of 1972," of said City.
SECTION 3. That said bonds hereby authorized shall be numbered
consecutively 1 to 137, inclusive, shall be of the denomination of $5,000
each, dated October 1, 1972, and shall be scheduled to become due and
payable in numerical order on July 1 of the respective years, as follows:
BONDS NUMBERED
PRINCIPAL AMOUNT
DATE OF MATURITY
(Inclusive)
1-2
$ 10,000
July
1,
1973
3-4
10,000
July
1,
1974
5-6
10,000
July
1,
1975
7-8
10,000
July
1,
1976
9-10
10,000
July
1,
1977
11-12
10,000
July
1,
1978
13-14
10,000
July
1,
1979
15-16
10,000
July
1,
1980
17-23
35,000
July
1,
1981
24-31
40,000
July
1,
1982
32-39
40,000
July
1,
1983
40-48
45,000
July
1,
1984
49-57
45,000
July
1,
1985
59-67
50,000
July
1,
1986
68-77
50,000
July
1,
1987
78-88
55,000
July
1,
1988
89-99
55,000
July
1,
1989
100-111
60,000
July
1,
1990
112-124
65,000
July
1,
1991
125-137
65,000
July
1,
1992
Provided, however, that said bonds numbered 32 to 137, inclusive
(being all of said bonds maturing on and after July 1, 1983), as may
be outstanding from time to time, shall be subject to redemption by
said City prior to maturity, in whole, or 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 on or after July 1,
1982, and in the event any of said 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 (30)
days prior to the redemption date in a newspaper of general circula-
tion throughout Kentucky (and by registered mail to the holders of
any registered bonds which are to be redeemed, provided, however,
failure to give timely notice by mail, or any defect therein, shall
not invalidate redemption proceedings if proper notice by newspaper
publication is timely given as herein provided), and it is further
agreed that should any of said bonds be called for redemption prior
to maturity as aforesaid, said City will pay to the respective
holders upon surrender of the bonds a premium in addition to interest
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date, in an amount equal to three per cent (3%) of the principal
amount thereof if called for redemption on or prior to January 1,
1985; two per cent (2%) of the principal amount thereof if called
for redemption thereafter and on or prior to July 1, 1988; and one
per cent (1%) of the principal amount if called for redemption
after July 1, 1988, and prior to final maturity. That said bonds
shall bear interest from the date thereof at such coupon rate or
rates as may be fixed as a result of public competitive sale of
bonds, as hereinafter provided. All interest at the coupon rate
or rates shall be evidences by proper interest coupons attached to
each of said bonds, the same to be payable on January 1, 1973, and
thereafter semiannually on the first days of January and July in
each year, beginning July 1, 1973. Both principal and interest
shall be payable in lawful money of the United States of America
at the principal office of Citizens Bank & Trust Company, in the
City of Paducah, Kentucky. Said bonds shall be executed on behalf
of the City with an authorized reproduced facsimile of the signature
of the Mayor, and sealed with an authorized reproduced facsimile of
the City's corporate seal, attested by the manual signature of the
City Clerk, and the interest coupons attached to said bonds shall
be executed with the facsimile signatures of said Mayor and said
City Clerk. If any officer whose signature, or a facsimile of
whose signature, appears on any bond or coupon shall cease to be
such officer prior to delivery of the bonds, such signature, or
facsimile signature, shall nevertheless be valid and sufficient for
all purposes, the same as if such officer has remained in office
until delivery. The signature, or a facsimile reproduction of the
signature, of ani} such officer who may be in office at the time of
delivery of any bond, shall be valid and sufficient for all pur-
poses, notwithstanding the fact that such officer may not have held
such office as of the date of the bonds. All of said bonds, to-
gether with the interest thereon, and any additional bonds ranking
on a parity therewith as may hereafter be issued and outstanding
according to the conditions and restrictions hereinafter set forth,
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are and shall be payable solely from the revenues to be derived
from the operation of the municipally owned Water Works of the City
of Paducah, Kentucky (as the same presently exists and as the same
may hereafter be added to, extended, improved, and enlarged from
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time to time), and shall be payable only out of the "Water Works
Revenue Bond and Interest Redemption Fund of 1965," previously
established in and by the 1965 Ordinance, and shall be a valid claim
of the holders thereof only against said fund (and any income from
the investment thereof), and the portion or amount of the revenues
of said Water Works of said City of Paducah heretofore and herein-
after pledged and provided to be pledged to said fund.
In case any bond issued hereunder shall become mutilated
or be destroyed or lost, the City shall, if not then prohibited by
law, cause to be executed and delivered a new bond of like date,
number, maturity and tenor in exchange and substitution for and
upon cancellation of such mutilated bond and its interest coupons,
or in lieu of and in substitution for such bond and its coupons
destroyed or lost, upon the holder or owner paying the reasonable
expenses and charges in connection therewith, and, in the case of a
bond destroyed or lost, his filing with the City evidence satis-
factory to said City that such bond and coupons were destroyed or
lost, and of his ownership thereof, and furnishing indemnity satis-
factory to said City.
SECTION 4. Said bonds and interest coupons shall be fully
negotiable, but upon presentation of any of said bonds at the office
of the City Treasurer of said City, the same may be registered as to
principal only in the name of the owner on the books in his office,
such registration to be noted on the reverse side of the bonds by
the Treasurer, and thereafter the principal of such registered bonds
shall be payable only to the registered holder, his legal representa-
tives or assigns. Such registered bonds shall be transferable to
another registered holder, or back to ?tearer, only upon presentation
to the City Treasurer with a legal assignment duly acknowledged or
proved; and if transferred to bearer, may thereafter again be regis-
tered, as before. Registration of any of such bonds shall not
affect the negotiability of the coupons appurtenant thereto, but
such coupons shall be transferable by delivery merely.
SECTION 5. That said bonds and coupons and provision for
registration shall be in substantially the following form:
(FORM OF BOND)
UNITED STATESOF AMERICA
COMMONWEALTH OF KENTUCKY
COUNTY OF McCRACKEN
CITY OF PADUCAH
WATER WORKS REVENUE BOND, SERIES OF 1972
1177
Number
$5,000.00
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 bearer, or if this bond be
registered to the registered holder hereof, as hereinafter pro-
vided, solely from the special fund hereinafter identified, the
sum of Five Thousand Dollars ($5,000) on the first day of July,
19_, and likewise from said special fund, to pay interest on said
sum from the date hereof at the rate of per cent ( %)
per annum, payable on Jan uary 1, 1973, and thereafter semiannually
on the first days of January and July in each year, beginning July 1,
1973, until paid, except as the provisions hereinafter set forth
with respect to redemption may be and become applicable hereto,
such interest as may accrue on and prior to the maturity of this
bond to be paid only upon presentation and surrender of the annexed
interest coupons as the same severally mature, both principal and
interest being payable in lawful money of the United States of
America at the principal office of Citizens Bank & Trust Company,
in the City of Paducah, Kentucky.
This bond is one of a duly authorized series of bonds number-
ed consecutively 1 to 137, inclusive, in the aggregate principal
amount of $685,000, issued pursuant to an Ordinance duly adopted and
published according to law, for the purpose of defraying the costs
of extensions, additions and improvements to the municipally owned
Water Works of said City, and enlargements thereof; and this bond
has been issued under and in full compliance with the Comstitution
and statutes of the Commonwealth of Kentucky, oncluding among others,
Section 96.350 to 96.510, inclusive, of the Kentucky Revised Statutes.
A statutory mortgage lien which said City has recognized
as being effective is created and granted by Section 96.400 of the
Kentucky Revised Statutes for the benefit and protection of the
holders of said bonds and the holders of bonds ranking on a basis
of parity therewith which have heretofore been issued and which
may hereafter be issued subject to prescribed conditions and restric-
tions; and the same shall continue as a lien upon the aforesaid
municipal Water Works, and appurtenant facilities, together with
all future additions, improvements, enlargements and extensions
thereof, and the revenues derived from the operation thereof, until
payment in full of bonds previously issued and all bonds authorized
and permitted to be issued under the provisions of said Ordinance,
including future parity bonds if any be issued in compliance with
the conditions and restrictions prescribed in that connection in
and by said Ordinance.
The bonds numbered 32 to 137, inclusive, of the series of
which this bond is one and as may be outstanding from time to time
(being all of said bonds maturing on and after July 1, 1983), are
subject to redemption at the option of said City prior to maturity,
in whole, or 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 on or after July 1, 1982, and in the event any of said
bonds are called for redemption as aforesaid, notice thereof iden-
tifying 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 (and by
registered mail to the holders of any registered bonds which are
to be redeemed, provided, however, failure to give timely notice by
mail, or any defect therein, shall not invalidate redemption pro-
ceedings if proper notice by newspaper publication is timely given
as herein provided), and it is further agreed that should any or
all of said bonds be called for redemption as aforesaid, said City
will pay to the holders of the respective bonds so called for redemp-
tion, upon surrender thereof, a premium, in addition to interest
evidenced by interest coupons maturing on and prior to the redemption
date, in an amount equal to three per cent (3/) of the principal
amount thereof if called for redemption on or prior to January 1,
1985; two per cent (24.) of the principal amount thereof if called
for redemption thereafter and on or prior to July 1, 1988; and one
per cent (1%) of the Principal amount thereof if called for redemp-
tion after July 1, 1988, and prior to final maturity. 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,
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funds are duly provided, will cease to bear interest on the redemp-
tion date.
It is provided in and by said Ordinance that the municipal
Water Works of said City shall continue to be operated as a minici-
pal revenue-producing public project for the security and sburce
of payment of this bond and the issue or series of which it is a
part, so long as any thereof remain outstanding and unpaid; that
additional bonds, ranking on a parity with the series of bonds of
which this bond is one, and with bonds previously issued and out-
standing, may be issued from time to time, subject to prescribed
conditions and restrictions; and that this series of bonds, together
with any such previously issued and future parity bonds as afore-
said, are and will be payable as to both principal and interest
solely from the gross revenues to be derived from the operation of
said municipal Water Works, a sufficient portion of which revenues
has heretofore been ordered set aside as a special fund for that
purpose and identified as the "Water Works Revenue Bond abd Interest
Redemption Fund of 1965." This bond and the series of which it is
hereto attached to be executed with the reproduced facsimile signa-
tures of said Mayor and said City Clerk, and this bond to be dated
the first day of October, 1972.
(FACSIMILE
OF SEAL)
ATTEST:
(Manual Signature)
City Clerk
CITY OF PADUCAH, KENTUCKY
By (Facsimile Signature)
Mayor
(FORM OF COUPON)
*Unless the bond to which this coupon is appurtenant
shall have been called for prior redemption
No. $
On the first day of 19--1 the City of Paducah,
Kentucky, will pay to bearer Dollars ($ ) out
of its "Water Works Revenue Bond and Interest Redemption Fund of
1965," at the principal office of Citizens Bank & Trust Company, in
Paducah, Kentucky, as provided in and being interest then due on its
"Water Works Revenue Bond, Series of 1972," dated October 1, 1972,
Number
CT.TY OF PADUCAH, KENTUCKY
ATTEST:
By (Facsimile
(Facsimile Signature) Mayor
City Clerk
(*This redemption legend to appear only on coupons
maturing on and after January 1, 1983.)
(FORM OF REGISTRATION )
Date of Name of Signature of
Registration Registered Owner €ity Treasurer
SECTION 6. The bonds authorized by this Ordinance shall be
publicly offered for sale according to the "Notice of Sale of Bonds"
conforming to the requirements of ERS Chapter 424 (and particularly
KRS 424.140(3) and KRS 424.360), which shall be published one time,
not less than seven (7) nor more than twenty-one (21) days prior to
the date therein specified for the opening and consideration of
purchase bids, in each of the following: (a) The Paducah Sun -
Democrat, a legal newspaper published in Paducah, Kentucky, and
having the largest circulation therein, (b) The Courier -Journal,
Louisville, Kentucky, a legal newspaper having statewide circulation,
and (c) The Daily Bond Buyer, New York, New York, a financial news-
paper or journal of general circulation among bond buyers. In said
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published notice, or in the "Statement of Terms and Conditions of
Bond Sale," hereinafter mentioned, bidders shall be notified that
bids must be for the entire $685,000 of bonds offered for sale, and
shall be for cash at not less than 98-1/251. of the face amount thereof
($674,725), with accrued interest to date of delivery; that they may
specify an interest coupon rate or rates in multiples of 1/8 or 1/10
of 1/, not to exceed eight in number (but same may be repeated), pro-
vided only one rate may be specified for bonds of a single maturity,
and the differential between the highest coupon rate and the lowest
coupon rate stipulated in any bid may not exceed one (1) percentage
point. Bidders shall further be notified that the City will not
entertain any proposal that (i) interest becoming due on any bond
at any interest payment date be represented by more than one coupon
(no supplemental, secondary or double coupons permitted), or (ii)
that any bond bear interest otherwise than at a single coupon rate
from date of maturity, or (iii) that any interest coupons be can-
celled. Each bidder shall be required to tender a certified check,
or bank cashier's or official check, payable to the City of Paducah,
Kentucky, in the sum of $13,700, the same to be returned immediately
after the opening of bids to all unsuccessful bidders, and to be
retained uncashed in the case of the purchase bidder until the bonds
are delivered and paid for, at which time, at the election of the
purchaser, the City will either cash the good faith check and apply
the proceeds thereof (but without interest thereon) as a credit
upon the purchase price, or return the good faith check to the purer
chaser upon payment of the purchase price in full. The right to
reject bids shall expressly be reserved.
The Fiscal Agent is instructed to prepare a "Notice of Sale
of Bonds," a "Statement of Terms and Conditions of Bond Sale," and
an "Official Bid Form," and to mimeograph, print or otherwise repro-
duce the same in multiple copies, to be furnished to any interested
bidder upon request, and the same shall set forth the maturity
schedule, place or places of payment, redemption provisions, and
other detailed information with reference to the bonds, and shall
prescribe the manner of bidding, and the manner of determining the
bid which will be accepted, in order to give assurance of uniformity
in the submission of purchase bids.
The Fiscal Agent having already caused Bond Counsel to pre-
pare under its direction suggested forms of such "Notice of Sale of
Bonds," "Statement of Terms and Conditions of Bond Sale," and "Offi-
cial Bid Form," and the same having been submitted to members of the
Board of Commissioners and examined prior.to first reading of this
Ordinance, and found to be in conformity with the foregoing,-- said
submitted forms are hereby approved.and may be signed by appropriate
City officials and disseminated by the Fiscal.Agent.
SECTION 7. Upon issuance and delivery of any of the bonds
authorized by this Ordinance, disposition of the proceeds thereof
shall be made, as follows:
(A) All sums representing accrued interest received from
the purchaser or purchasers shall forthwith be deposited in the
"Water Works Revenue.Bond and Interest Redemption Fund of 1965,"
heretofore created and established, and the same shall be used
and applied to the payment of interest coupons next thereafter
becoming due.
(B) There shall next be set aside.and paid from the pro-
ceeds of the bonds all expenses incident to the authorization,
sale, and delivery.thereof, and the fees and expenses which the
Water Board may have agreed to pay the Fiscal Agent in connection
therewith.
(C) There shall next be paid from the proceeds of the
bonds, the temporary bank loans obtained for interim financing
as recited in the preamble of this Ordinance and authorized
in Section 1 hereof; and.
(D) The entire.remaining balance of the proceeds of bonds
issued hereunder shall constitute the "Paducah Water Works
Construction Fund of 1972," hereby created (for convenience herein-
after sometimes referred to simply -as the "Construction Fund"), and
shall be deposited in a bank or banks which are members of
Federal Deposit Insurance Corporation (hereinafter sometimes
referred to collectively as the "Depository Bank"), and shall
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be applied to the extent necessary and not otherwise provided, in paying
the costs of the 1972 Project.
There shall also be deposited in said Construction Fund the proceeds
of the aforesaid HUD Grant (HUD Project No, WS -KY -69), as and when
received from time to time.
Balances in excess of the amount insured by FDIC shall be
secured at all times as hereinafter provided. A true and accurate
separate accounting shall be made of all deposits in and disburse-
ments from said Construction Fund, and at no time shall there be
any commingling with other moneys of the City of Paducah, Kentucky.
Moneys from time to time on deposit in said Construction
Fund, exceeding the amount insured by FDIC, shall be secured by a
valid pledge to the City of Paducah, Kentucky, and its Water Board,
of direct obligations of, or obligations the principal of and in-
terest on which are guaranteed by, the United States of America,
having at all times a market value (exclusive of accrued interest),
at least equal to the balance maintained on deposit therein. If at
any time there shall be on deposit in said Construction Fund moneys
in excess of the estimated disbursements on account of the Project
for the next ninety (90) days, the City, acting through its Water
Board, reserves the right to direct that the Depository Bank invest
such excess funds in direct obligations of, or obligations the
principal of and interest on which are guaranteed by, the United
States Government, which shall mature not later than eighteen (18)
months after the date of such investment and which shall be subject
to redemption at any time by the holder thereof. Earnings received
from any such investments shall be deposited in the Construction
Fund. Any moneys remaining in the Construction Fund after all
costs of the Project have been paid, as certified by Consulting
Engineers, and as audited by HUD, shall be transferred from the
Construction Fund and deposited in the "Paducah Water Works Deprecia-
tion Fund," or in the "Paducah Water Works Revenue Bond and Interest
Redemption Fund of 1965," both created in the 1965 Ordinance, as
may be consistent with the terms and provisions of the HUD Grant
Agreement.
Disbursemants from said Construction Fund shall be made
by checks signed by the Treasurer of the City's Water Board and
countersigned by the Chairman thereof, but only if accompanied and
supported by one or more vouchers signed by or on behalf of the firm
of Engineers having supervision of construction of said 1972 Project
affirming that the payee of the check is entitled to payment of the
amount thereof for labor, materials or services earned and due under
the terms of an authorized contract relating to said Project.
Pending disbursements for the authorized purposes, the
bond proceeds as provided to be deposited in said Construction Fund
shall be subject to a first and paramount lien and charge in favor
of the holders of bonds issued and outstanding hereunder, and for
their further security.
Section 8. The Water Board and the City's Fiscal Agent
having represented that in consultation with an independent state
licensed accountant not employed by the City or by the Water Board
on a monthly salary basis, and with a firm of Consulting Engineers
of national reputation in the field of water engineering, it has
been determined that the $685,000 "City of Paducah Water Works
Revenue Bonds, Series of 1972," herein authorized, may be issued
within the conditions and restrictions set forth in Section 14 of
the 1965 Ordinance concerning the issuance of bonds ranking on a
basis of parity and equality as to security and source of payment
with the outstanding 1965 Bonds, and it appearing that an appropriate
certificate of such accountant and an appropriate estimate and pro-
jection of said firm of Consulting Engineers, showing compliance
with such conditions and restrictions, may be filed in the offices
of the City Clerk and of the Water Board prior to the issuance and
delivery of the bonds herein authorized; it is hereby found and
determined that said bonds herein authorized may be so issued on a
basis of parity and equality as to security and source of payment
with the 1965 Bonds and it is hereby ordered and directed that such
certificate and such estimates or projections be duly filed in said
offices prior to the issuance and delivery of the bonds herein authorized.
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SECTION 9. The City hereby ratifies and reaffirms all
of the provisions of Section 10 of the aforesaid 1965 ordinance
relating to the collection, segregation and distribution of the
revenues of the municipal Water Works, specifically including, but
not by way of modification or limitation, provisions that so long
as the bonds herein authorized shall remain outstanding and unpaid,
(a) said Water Works shall continue to be operated on a fiscal year
basis beginning on each July 1 and ending on the next June 30,
(b) that all revenues derived from rates and charges for the ren-
dering of water service and fire protection service shall be deposit-
ed, as received, in the "Paducah Water Works Revenue Fund," (c) that
from said "Revenue Fund", and as a first charge thereon, certain
monthly deposits shall be made into the "Paducah Water Works Revenue
Bond and Interest Redemption Fund of 1965" (hereinafter for con-
venience referred to as the "1965 Bond Fund") to provide for the
payment of the principal of and interest on outstanding bonds as
the respective bonds and coupons mature from time to time, and to
provide for the accumulation of a Debt Service Reserve in that
connection, (d) that from the balance remaining in the Revenue
Fund after such deposits have been made into the Bond Fund, ten
per cent (10%) of such balance shall be transferred and deposited
into the "Paducah water Works Depreciation Fund," and (e) that the
remaining balance in the Revenue Fund each month after the afore-
said deposits in the Bond Fund and the Depreciation Fund shall be
available for payment of the costs of operating the Water Works
(including the cost of insurance, premiums of fidelity bonds, the
costs of annual audits, etc.), and the costs of maintaining the
Water Works in a good state of repair; provided, however, in con-
formity with certain provisions of Section 14 of said 1965 Ordinance,
certain adjustments in said monthly deposits are required as an
incident to the issuance of parity bonds, and said adjustments shall
be made, as follows:
(i) beginning on the 20th day of the first month
after the issuance of the bonds authorized by this Ordinance,
and continuing until December 20, 1972, the monthly deposits
into the Bond Fund for payment of interest on outstanding
bonds shall be increased in such manner as to provide for
the payment on January 1, 1973, of the interest coupons
appurtenant to the bonds herein authorized, and maturing
on that date (but taking into account, however, that the
interest coupons then maturing are for a period of three (3)
months only, and that a part of the sum necessary for the
payment of such coupons will be received from the purchasers
of the bonds as representing accrued interest from October 1,
1972, to date of delivery, as hereinabove provided);
(ii) Beginning on the 20th day of the first month after
the issuance of the bonds herein authorized, and continuing
until June 20, 1973, the monthly deposits into the Bond Fund
for the payment of principal of outstanding bonds shall be
increased by proportionate monthly sums sufficient to provide
for the accumulation in the Bond Fund not later than June 20,
1973, of a sum equal to the principal amount of the bonds
herein authorized which will mature on July 1, 1973;
(iii) beginning January 20, 1973, the monthly deposits
into the Bond Fund for the payment of interest on outstanding
bonds shall be increased by a sum equal to one-sixth (1/6)
of the next succeeding installment to become due on the bonds
herein authorized;
(iv) Beginning July 20, 1973, the monthly deposits into
the Bond fund for the payment of principal of outstanding
bonds shall be increased by a sum equal to one -twelfth (1/12)
of the principal amount of all bonds herein authorized and
which will mature on the succeeding July 1; and
(v) Beginning on the 20th day of the first month
after the issuance of the bonds herein authorized, there
shall be deposited monthly into the Bond Fund a sum equal
to one sixtieth (1/60) of the aggregate amount of the
principal of and interest on the outstanding bonds of the
series herein authorized, maturing on and prior to the
ensuing July 1, computed as of July 1 in each year; such
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deposits to be for the Debt Service Reserve in the Bond Fund
and to be accumulated to supplement the Debt Service Reserve
already accumulated and maintained in accordance with the
1965 Ordinance, until the aggregate of the Debt Service
Reserve shall be a sum not less than the maximum amount
necessary to provide for payment, when due, of.both princi-
pal of and interest on all outstanding bonds of the series
herein authorized, and also of the 1965 Bonds, during any
subsequent fiscal year to the final maturity of the bonds
herein authorized; and.when such amount has been so accumu-
lated the additional monthly deposits for which.provision
is made in this (v) MAY BE SUSPENDED, BUT THE SAME SHALL BE
resumed whenever authorized disbursements from the Debt
Service Reserve shall reduce the balance therein below the
amount herein prescribed, and shall be continued for such
period of time as may be required to restore and maintain
the balance therein at such prescribed level. The accumula-
tion in the Debt Service Reserve.may be represented•by cash
or by the market value of authorized investments for the
account of said Debt Service Reserve, as provided in the
1965 Ordinance, or by a combination of cash and such invest-
ments.
SECTION 10. The City hereby reaffirms.and continues certain
special conditions relating to the redemption of outstanding bonds
payable from the revenues of the Water Works, as set forth in
Section 10 (E) of the 1965 Ordinance, wherein it is provided that in
the event moneys are available for bond retirement, in excess of
principal and interest on all outstanding bonds becoming.due to and
including the next July 1 and the prescribed Debt Service Reserve,
such excess funds may be applied to the purchase or retirement of
outstanding bonds upon the following conditions:
(i) If bonds of a single series are at the time
subject to redemption at the option of the City (and boflds
of other series are not at the time subject to redemption),
the City shall apply the moneys available in the Bond Fund
for the redemption and payment of outstanding bonds of such
series which is subject to redemption, to the maximum amount
which may be feasible upon the next permissible redemption
date;
(ii) If the bonds of more than one outstanding series
are subject to redemption, the City (to the extent feasible,
having due regard for the denominations of the various bonds
which are so subject to redemption shall apply the avail-
able funds in rhe Bond Fund to the redemption of bonds of
each series, in the proportion that the bonds of each
series at that time outstanding may bear to the bonds of
all outstanding series which are then subject to redemption,
without regard for the initial amount of any series;
(iii) In the event that no bonds of any series outstanding
under the provisions of this Ordinance are at the time
subject to redemption in accordance with their terms, then
the City shall solicit tenders for the purchase of any and
all bonds which may at the time be outstanding, by publishing
in a financial journal published in New York, New York, or
Chicago, Illinois, and in a newspaper of general circulation
throughout the Commonwealth of Kentucky, an invitation for
tenders, upon such terms and conditions as the City may
therein elect to prescribe; and upon receipt of tenders in
accordance therewith the City may apply moneys available in
the Bond Fund to the purchase thereof, but not upon terms
exceeding the terms of redemption which may be applicable
to any outstanding bonds upon the earliest permissible
redemption date thereof; and
(IV) Any bonds so redeemed or purchased through applica-
tion of moneys in the Bond Fund shall forthwith be cancelled
and retired; and the same shall not be held for the purpose
Of investment, or again offered for.sale.
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SECTION 11. A statutory mortgage lien which said City has
recognized as being effective is created and granted by Section
96.400 of the Kentucky Revised Statutes for the benefit and protection
of the holders of the bonds herein authorized, and the holders of
bonds ranking on a basis of parity therewith which have heretofore
been issued and which may hereafter be issued subject to prescribed
conditions and restrictions, and the same shall continue as a lien
upon the aforesaid municipal Water Works, and appurtenant facilities,
together with all future additions, improvements, enlargements and
extensions thereof, and the revenues derived from the operation
thereof, until payment in full of bonds previously issued and all
bonds authorized and permitted to be issued under the provisions of
this Ordinance, including future parity bonds if any be issued in
compliance with the conditions and restrictions prescribed in that
connection in and by this Ordinance.
SECTION 12. The City reaffirms and continues (a) the
covenant set forth in Section 12 of the 1965 Ordinance (to which
reference is hereby made for the full text thereof), in substance
providing that so long as revenue bonds are outstanding and payable
from the revenues of the municipal Water Works, the management,
control and operation of said Water Works will be continuously vested
in the Water Board; but subject nevertheless to ultimate control by
the City through the exercise of statutory powers of its governing
body in the matters of the issuance of -parity or other bonds, the
establishment and adjustment or revision of rates and charges for
water service, and the reserved right of the City to amend ordinances
previously adopted insofar as the same may relate to the terms of
office of members of the Water Board, the manner of electing or
appointing the same, and the number thereof; it being understood
that all covenants made by the City with reference to the general
management, control and operation of the Water Works (other than as
specifically reserved by the City's Board of Commissioners), are
covenants to be performed on behalf of the City by said Water Board,
and (b) all of the protective covenants which are set forth in
Section 13 of the 1965 Ordinance, comprising sub -paragraphs (A) to
(N), and references to the text of the 1965 Ordinance are hereby
made for the details thereof.
SECTION 13. The City reaffirms and continues the provisions
set forth in Section 14 of the 1965 Ordinance concerning the issuance
of additional bonds in the future payable from the revenues of the
Water Works; and in order that this Ordinance may be complete within
itself in that respect, it is reiterated that the City continues to
reserve the right and privilege of issuing additional bonds from
time to time, payable from the revenues of said Water Works, equally
secured by the statutory mortgage lien upon the same, and secured by
a parity lien upon and tatably payable fromthe revenues of the
Water Works for the purpose of adding to, extending, or improving
the Water Works, provided in each instance:
(i) the facility or facilities to be built from the
proceeds of the additional parity bonds is or are made a
part of the Water Works and its or their revenues are
pledged as additional security for the additional parity bonds
and the outstanding bonds;
(ii) the City and its Water Board are in compliance
with all covenants and undertakings in connection with all
of its bonds then outstanding and payable from the revenues
of the Water Works or any part thereof;
(iii) the annual Net Revenues (a defined term) of the
Water Works for a period of twelve (12) consecutive months
in the period of eighteen (18) months immediately preceding
the issuance of additional parity bonds, are certified by
an independent state -licensed accountant not employed by
the City or by the Water Board on a monthly salary basis,
to have been equal to at least one and twenty hundredths
(1.20) times the average annual requirements for principal.
and interest on all bonds then outstanding and payable from..
the revenues of the Water Works, and the parity bonds then
proposed to be issued; and
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(iv) the average annual Net Revenues to be received
during the five (5) complete fiscal years immediately
following the date when the facility or facilities to be
built from the proceeds of such additional parity bonds
shall be estimated to be completed and placed in operation
are shown by a certificate of a Consulting Engineer or firm
of Consulting Engineers of national reputation in the field
of water engineering (copies of which shall be filed in the
office of the City Clerk and of the Water Woard) to be at
least equal to one and forty hundredths (1.40) times the
average annual requirements for principal and interest on
all bonds then outstanding and payable from the revenues
of the Water Works, and the parity bonds then proposed to be
issued; provided, however, that in such certificate of such
Consulting Engineer or firm of Consulting Engineers of
national reputation it shall be recited that the same has
been prepared in consideration and recognition of not only
the certification referred to in (iii) immediately above,
but also any changes in rates and charges for water service
as the same have been made effective prior to the issuance
of such parity bonds, together with any increase or decrease
in Operating Expenses as a result of the placing in opera-
tion of such additions or improvements, and any other factor
affecting the Net Revenues from the Water Works as so added
to and improved.
The City hereby covenants and agrees that in the event addi-
tional series of parity bonds are issued, it shall:
(i) adjust the monthly deposits into the Bond Fund on
the same basis as that prescribed in Section 9 hereof to
provide for the annual debt service on the additional bonds;
(ii) adjust the amount of the debt service reserve in
the Bond Fund to a sum equal to not less than the maximum
annual debt service on the bonds then outstanding and such
additional parity bonds, the additional debt service reserve
to be accumulated monthly in the manner provided in Section 9(e)(v),
over a period of not more than five (5) years from the issu-
ance of such parity bonds; and
(iii) make such additional bonds payable as to principal
on July 1 of each year in which principal falls due, and pay-
able as to interest on January 1 and July 1 of each year; and
schedule the principal maturities of the parity bonds in such
manner as to cause the aggregate annual principal and interest
requirements of the outstanding bonds and the parity bonds to be
as nearly equal as may be feasible, taking into account the
denominations of the various series (except in the case of
advance refunding according to the provisions which were set
forth in that connection).
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 pay-
able from the revenues of said Water Works on a basis of equality and
parity with the 1965 Bonds and the bonds herein specifically author-
ized, and shall not be deemed to include other bonds or obligations,
the security and source of payment of which are subordinate and subject
to the priority of the bonds and parity bonds herein authorized to be
issued. The City expressly continues to reserve the right to issue
its bonds or other obligations payable from the revenues herein
pledged, and not ranking on a basis of equality and parity with the
bonds and parity bonds herein otherwise referred to, without any proof
of previous earnings or Net Revenues, but only if such bonds or other
obligations are issued to provide for additions or extensions or
improvements of the Water Works, and only if the same are issued in
express recognition of the priorities, liens and rights created and
existing for the security, source of payment, and protection of the
said bonds and parity bonds herein authorized and permitted to be
issued.
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SECTION 14. It is hereby covenanted and agreed by the
City with each and every holder of revenue bonds issued and out-
standing pursuant to this Ordinance that the provisions of this
Ordinance (together with the applicable provisions of the 1965
Ordinance, as long as any of the 1965 Bonds remain outstanding and
unpaid), shall constitute a contract between the City of Paducah
and the holder or holders of the revenue bonds herein authorized
to be issued, and aftet the issuance of any of said revenue bonds
no change or alteration of any kind in the provisions or operations
under this Ordinance may be made, except as herein expressly contem-
plated, until all of the bonds have been paid in full, as to both
principal and interest; provided, that nodifications, alterations
and amendments of this Ordinance and of the rights and obligations
of the City and of the holders of revenue bonds issued and out-
standing hereunder may be made in accordance with the procedure
which is set forth in detail in Section 15 of the aforesaid 1965
Ordinance, and reference is hereby made to the full text of said
Section 15 of the 1965 Ordinance, which is hereby incorporated
herein by reference.
By way of brief summary the procedure so provided contem-
plates the adoption of any proposed modifications, alterations and
amendments by the City's Board of Commissioners, and the submission
thereof to the bondholders at a meeting called upon newspaper and
other notice, with provision that a quorum of the bondholders for
the purposes of such meeting shall be deemed to be the holders (or
persons entitled to vote the same) of not less than seventy per
cent (70°%) in aggregate principal amount of all such revenue bonds
entitled to vote; and with further provision that the proposed
modifications, alterations or amendments shall not become effective
unless approved by a resolution dulu adopted by the affirmative vote,
in person or by proxy, of the holders (or persons entitled to vote
the same) of sixty-six and two-thirds per cent (66-2/3/) or more
in aggregate principal amount of such outstanding revenue bonds;
and with further provision that certain modifications, alterations
and amendments may not be made at all.
The entire text of said Section 15 of the 1965 Ordinance
is adopted by reference, and it is understood that the reference to
the "holders of outstanding revenue bonds" shall be deemed 'to -mean
and include not only revenue bonds issued and outstanding pursuant
to this Ordinance but also any of the 1965 Bonds as long as any of
them remain outstanding and unpaid.
Section 15. The City covenants and agrees that it will
not at any time use or permit the use of the proceeds of any of its
"Water Works Revenue Bonds, Series of 1972," herein authorized, nor
any moneys on deposit in any fund provided in connection therewith,
in any manner which would cause the bonds, or any of them, to become
"arbitrage bonds" within the meaning of Section 103(d) of the United
States Internal Revenue Code, or any regulation (temporary or per-
manent) of the United States Treasury Department pursuant thereto,
as the same may be in effect from time to time.
SECTION 16. Wherever in this Ordinance provision is made
for the ratification, reaffirmation and continuance of the text of
any part of the 1965 Ordinance, it is intended that the literal text
of the 1965 Ordinance shall prevail and control, and any references
thereto by way of description or summary shall, in the event of any
conflict, yield to the actual text of the 1965 Ordinance.
SECTION 17. If any section, paragraph, clause, or provi-
sion 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 18. 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.
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SECTION 19. This Ordinance shall be in full force and effect from
and after its adoption, signature, enrollment; and publication (in full, or
in the form of an abstract hereof, as may be appropriate, according to
KRS 89.545), and upon the elapse of ten (10) days from and after second
reading and final adoption and signing hereof.
INTRODUCED AND GIVEN FIRST READING APPROVAL by the Board
of Commissioners of the City of Paducah, Kentucky, at a meeting held
on the 3rd day of October, 1972, and ordered held over in the office
of the City Clerk, subject to public inspection, pending further
consideration by said Board of Commissioners:
FINALLY ADOPTED ON SECOND READING BY THE BOARD OF COMMISSIONERS
OF THE CITY OF PADUCAH, KENTUCKY, at a meeting held on the 10th day of
October, 1972, on the same occasion signed in open session by the Mayor,
attested under seal by the City Clerk, and ordered to be published in the
Paducah Sun -Democrat, Paducah Kentucky (either in full or in abstract form
according to KRS 89.545) on the earliest possible date; said Ordinance to
be effective as provided in Section 19 hereof.
Mayor
(SEAL) City of Paducah, Kentucky
ATTEST:
City Clerk
CERTIFICATION
The undersigned, City Clerk of the City of Paducah,
McCracken County, Kentucky, hereby certifies that the foregoing
is a true, complete and correct copy of an ordinance finally adopted
by the Board of Commissioners of said City, signed by the Mayor
thereof, and attested under seal by me as City Clerk, upon the
occasion of a properly convened meeting of the Board of Commissioners
of said City held on the 10th day of October, 1972, as shown by the
official records in my custody and under my control. I further
certify that I have delivered a true copy of said Ordinance (or an
abstract thereof according to KRS 89.545), to the Paducah Sun -
Democrat, a newspaper published in said City of Paducah, Kentucky,
and having the largest circulation therein, with directions that
the same be published in the earliest possible issue thereof.
WITNESS my hand and the seal of the said City, this 11th day
of October, 1972.
(SEAL)
City Clerk
City of Paducah, Kentucky