88-9292 W & S Revenue Bonds1
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CITY OF SALINA, KANSAS
ORDINANCE NO. 88-9292
$3,000,000
COMBINED WATER AND SEWAGE SYSTEM REVENUE BONDS
SERIES 1988
DATED: DECEMBER 1, 1988
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ORDINANCE NO. 88-9292 OF THE CITY OF SALINA, KANSAS
PAGE
Recitals-------------------------------------------
Section 1.
Definitions--------------------------------
3
Section 2.
Authorization of and Security for the
1988 Bonds------------------------------
7
Section 3.
Description of the Bonds, Designation of
Paying Agent and Bond Registrar---------
8
Section 4.
Method and Place of Payment of Principal
of and Interest on the Bonds------------
8
Section 5.
Execution, Authentication and Delivery
of the Bonds----------------------------
10
Section 6.
Registration, Transfer and Exchange of Bonds
10
Section 7.
Persons Deemed Owners of Bonds-------------
12
Section 8.
Mutilated, Lost, Stolen or Destroyed Bonds-
12
Section 9.
Cancellation and Destruction of Bonds
Upon Payment----------------------------
12
Section 10.
Redemption of Bonds Prior to Maturity------
12
Section 11.
Form of Bonds------------------------------
14
Section 12.
Uncertificated Bonds-----------------------
20
Section 13.
Disposition of 1988 Bond Proceeds----------
20
Section 14.
Water and Sewage Fund----------------------
20
Section 15.
Ratification and Creation of Funds and
Accounts--------------------------------
21
Section 16.
Application of Moneys in Funds and Accounts
22
Section 17.
Deficiency in Payments or Credits into
Funds or Accounts-----------------------
28
Section 18.
Use of Other Accounts to Pay Bonds
and Interest----------------------------
28
Section 19.
Investments--------------------------------
28
Section 20.
Particular Covenants of the City-----------
28
Section 21.
Additional Bonds---------------------------
31
Section 22.
Tax Matters--------------------------------
33
Section 23.
Amendments---------------------------------
34
Section 24.
Acceleration in the Event of Default-------
35
Section 25.
Enforcement--------------------------------
35
Section 26.
Defeasance---------------------------------
36
Section 27.
Approval of Preliminary Official Statement
and Official Statement------------------
37
Section 28.
Severability-------------------------------
37
Section 29.
Effective Date-----------------------------
37
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(PUBLISHED IN THE SALINA JOURNAL ecemZer o2 , 1988)
ORDINANCE NO. 88-9292
AN ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND
DELIVERY OF $3,000,000 PRINCIPAL AMOUNT OF COMBINED WATER AND
SEWAGE SYSTEM REVENUE BONDS, SERIES 1988, OF THE CITY OF SALINA,
KANSAS, FOR THE PURPOSE OF REPAIRING, ALTERING, EXTENDING,
RECONSTRUCTING, ENLARGING AND IMPROVING THE COMBINED WATER AND
SEWAGE SYSTEM, PRESCRIBING THE FORM AND DETAILS OF SAID REVENUE
BONDS, PROVIDING FOR THE COLLECTION, SEGREGATION AND APPLICATION
OF THE REVENUES OF SAID SYSTEM FOR THE PURPOSES AUTHORIZED BY
LAW, INCLUDING PAYING THE COST OF OPERATION AND MAINTENANCE OF
SAID UTILITY, PAYING THE PRINCIPAL OF AND INTEREST ON THE
REVENUE BONDS OF SAID CITY ISSUED AGAINST SAID SYSTEM AND
PROVIDING ADEQUATE RESERVE FUNDS, MAKING CERTAIN COVENANTS WITH
RESPECT TO SAID BONDS AND APPROVING A PRELIMINARY OFFICIAL
STATEMENT AND OFFICIAL STATEMENT RELATING TO SAID BONDS.
WHEREAS, the City of Salina, Kansas (the "City"),
pursuant to the provisions of K.S.A. 12-856 to 12-868,
inclusive, 1959 Supplement to the General Statutes of Kansas,
1949, acting through the governing body of the City, by
Ordinance No. 6544, passed June 27, 1961, has heretofore
combined the waterworks system and the sewage disposal system of
said City, as said systems are defined and referred to in said
Sections 12-856 to 12-868, inclusive, and said combined water
and sewage system (the "Water and Sewage Utility" or the
"combined water and sewage system") has thenceforth been
operated and financed in accordance with the provisions of said
statutes, and
WHEREAS, pursuant to the provisions of K.S.A. 12-856
to 12-869, inclusive, and all amendments thereto, the governing
body of the City heretofore caused to be published on October
21, 1988, in the official City newspaper a notice of the
intention of the City to repair, alter, extend, reconstruct,
enlarge and improve the combined water and sewage system of the
City (the "Project") at a total cost estimated to be $3,256,165,
to be paid for by the issuance of $3,000,000 principal amount of
combined water and sewage system revenue bonds of the City, and
WHEREAS, within fifteen (15) days after the
publication of the notice aforesaid, no written protest was
filed with the City Clerk of the City against the Project or
against the issuance of said revenue bonds, and the City is now
authorized to proceed with the Project and to issue its revenue
bonds to pay part of the cost thereof, and
WHEREAS, the governing body of said City has caused a
report covering the Project and an estimate of the cost thereof,
to be made by the City's engineers, and said report and estimate
have been and hereby are accepted and approved and are now on
file in the office of the City Clerk, and
WHEREAS, it appears from the report and estimate of
the City's engineers, and the governing body of the City hereby
finds and determines. that the cost of the Prn;acr will hP
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WHEREAS, the City has heretofore issued its Combined
Waterworks and Sewer System Refunding Revenue Bonds, Series of
1978, in the original principal amount of $4,394,000 (the "1978
Bonds"), authorized by Ordinance No. 8635 of the City (the "1978
Ordinance"), for the purpose of refunding, among other bond
issues, the 1977 Bonds, but under the terms of the 1977
Ordinance, the 1977 Ordinance was not defeased by such refunding
and the 1977 Bonds were not deemed to be paid, and
WHEREAS, the City has heretofore issued its Combined
Water and Sewage System Refunding Revenue Bonds, Series of 1984,
in the original principal amount of $2,770,000 (the "1984
Bonds"), authorized by Ordinance No. 84-9025 of the City (the
"1984 Ordinance"), for the purpose of refunding the 1978 Bonds,
and under the terms of the 1978 Ordinance, the 1978 Ordinance
was defeased by such refunding and the 1978 Bonds were deemed to
be paid, and
WHEREAS, the City has heretofore issued its Combined
Water and Sewage System Revenue Bonds, Series of 1987, in the
original principal amount of $2,650,000 (the "1987 Bonds"),
authorized by Ordinance No. 87-9202 of the City (the "1987
Ordinance"), for the purpose of repairing, altering, extending,
reconstructing, enlarging and improving the combined water and
sewage system of the City, including, but not limited to, the
reconstruction of the filter system which is part of the
waterworks system, and
WHEREAS, under the provisions of the 1977 Ordinance,
the City may issue additional bonds payable out of the revenues
of the Water and Sewage Utility which are junior and subordinate
to the 1977 Bonds provided the conditions set forth in Section
16 of the 1977 Ordinance are met, and
WHEREAS, under the provisions of the 1984 Ordinance
and 1987 Ordinance, the City may issue additional bonds payable
out of the revenues of the Water and Sewage Utility on a parity
and equality with the 1984 Bonds and the 1987 Bonds provided the
conditions set forth in the 1984 Ordinance and the 1987
Ordinance are met, and
WHEREAS, the governing body of the City hereby finds
and determines that the issuance of the revenue bonds herein
authorized will conform and comply in all respects with the
conditions set forth in the 1977 Ordinance, the 1984 Ordinance
and the 1987 Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY
OF THE CITY OF SALINA, KANSAS:
Section 1. Definitions. In addition to the words and
terms otherwise defined herein, unless the context shall clearly
indicate some other meaning, the words and terms defined in this
Section shall for all purposes of this Ordinance have the
respective meanings specified in this Section, to wit:
"Aggregate Debt Service" means for any fiscal year as
of the date of calculation, the total aggregate amount of Debt
Service for such period with respect to all bonds payable from
the Revenues.
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"Bond Registrar" means the Treasurer of the State of
Kansas, Topeka, Kansas, and its successors when acting in the
capacity as registrar and transfer agent for the registration,
transfer and exchange of Bonds, and any successors thereto.
"Bonds" or "1988 Bonds" means the Combined Water and
Sewage System Revenue Bonds, Series 1988, authorized by the this
Ordinance.
"City" means the City of Salina, Kansas.
"Consulting Engineers" means an independent consulting
engineer, or firm of engineers, appointed from time to time and
having a favorable reputation for skill and experience in the
operation of water and sewer utilities retained by the City.
"Debt Service" for any year means, as of any date of
calculation and with respect to any bonds payable from Revenues,
an amount equal to the sum of (i) interest accruing during such
period on such bonds, except to the extent that such interest is
to be paid from moneys held in trust for the specific purpose of
making such payments, plus (ii) that portion of principal due
for such bonds during the current year excluding the year of
final maturity of any series of bonds, except to the extent that
such principal is to be paid from moneys held in trust for the
specific purpose of making such payments.
"Interest Payment Date" means the Stated Maturity of
an installment of interest on the Bonds.
"Maturity" with respect to any Bond means the date on
which the principal of such Bond becomes due and payable as
therein or herein provided, whether at the Stated Maturity of
such Bond or by declaration of acceleration, call for redemption
or otherwise.
"1961 Bonds" means the Combined Water and Sewage
System Revenue Bonds, Series of 1961, in the original principal
amount of $3,600,000, authorized by the 1961 Ordinance.
"1977 Bonds" means the Combined Water and Sewage
System Revenue Bonds, Series of 1977, in the original principal
amount of $3,000,000, authorized by the 1977 Ordinance, all of
which were refunded with a portion of the proceeds of the 1978
Bonds.
"1978 Bonds" means the Combined Water and Sewage
System Refunding Revenue Bonds, Series of 1978, authorized by
the 1978 Ordinance, all of which were refunded and deemed to be
paid with a portion of the proceeds of the 1984 Bonds.
"1984 Bonds" means the Combined Water and Sewage
System Refunding Revenue Bonds, Series of 1984, in the original
principal amount of $2,770,000.
"1987 Bonds" means the Combined Water and Sewage
System Revenue Bonds, Series of 1987, in the original principal
amount of $2,650,000.
"1961 Ordinance" means Ordinance No. 6546 of the City
authorizinq the 1961 Bonds.
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"1987 Ordinance" means Ordinance No. 87-9202 of the
City authorizing the 1987 Bonds.
"1988 Ordinance" or "this Ordinance" means this
Ordinance of the City authorizing the 1988 Bonds, as originally
executed or as it may be supplemented or amended from time to
time.
"Operating Expenses" shall mean the City's expenses of
operating and maintaining the Water and Sewage Utility and
keeping the same in good repair and working order, including all
costs due under any type of contractual arrangement with respect
to purchases of water, operation, maintenance, production,
transmission, distribution, repairs, replacements, engineering,
drilling wells, transportation, administrative and general,
audit, legal, financial, pension, retirement, health,
hospitalization, insurance, taxes and other expenses actually
paid or accrued, including without limitation any expenses of
the City applicable to the Water and Sewage Utility as recorded
on its books pursuant to standard accounting practices.
Operating Expenses shall not include any costs or expenses for
extending or enlarging the Water and Sewage Utility, charges for
depreciation, or payment of Debt Service on any bonds.
"Outstanding" when used with respect to Bonds means,
as of the date of determination, all Bonds theretofore executed,
authenticated and delivered under this Ordinance, except:
(i) Bonds theretofore cancelled by the Bond
Registrar or delivered to the Bond Registrar for
cancellation;
(ii) Bonds in exchange for or in lieu of which
other Bonds have been authenticated and delivered
pursuant to this Ordinance; and
(iii) Bonds that have been defeased in
accordance with Section 26 of this Ordinance.
"Paying Agent" means the Treasurer of the State of
Kansas, Topeka, Kansas, and its successors.
"Person" means any individual, corporation,
partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency
or political subdivision thereof.
"Project" means repairing, altering, extending,
reconstructing, enlarging and improving the combined water and
sewage system.
"Record Date" for the interest and principal payable
on any Interest Payment Date means the 15th day (whether or not
a business day) of the calendar month next preceding such
Interest Payment Date.
"Redemption Date" when used with respect to any Bond
to be redeemed means the date fixed for redemption by or
pursuant to this Ordinance.
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accrued by the City from the ownership and operation of the
Water and Sewage Utility and the proceeds of any insurance
covering business interruption loss relating to the Water and
Sewage Utility, and (iii) at all times interest received on any
moneys or securities held pursuant to the 1978 Ordinance
including Investment Income (as defined in the 1978 Ordinance),
received after February 15, 1991, and available for transfer
into the Principal and Interest Account (as defined in the 1978
Ordinance) pursuant to Section 12(e) of the 1978 Ordinance but
excluding interest from the Escrow Account (as defined in the
1978 Ordinance).
"Revenues Available for Debt Service" for any fiscal
year or period of 12 consecutive calendar months shall mean the
sum of (i) Revenues, and (ii) the interest accrued on any moneys
or securities held pursuant to the 1977 Ordinance, the 1984
Ordinance, the 1987 Ordinance or this Ordinance (except any
income on the bond and the interest account and the reserve
account created by the 1977 Ordinance) less Operating Expenses
for such fiscal year or period.
"Special Record Date" for the payment of any Defaulted
Interest, as defined in Section 4 hereof, means a date fixed by
the Bond Registrar pursuant to Section 4.
"Stated Maturity" when used with respect to any Bond
or any installment of interest thereon means the date specified
in Section 3 of this Ordinance as the fixed date on which the
principal of such Bond or such installment of interest is due
and payable.
"Underwriters" shall mean the initial pur.chasers of
the 1988 Bonds or the manager or managers of any underwriting
group initially purchasing the 1988 Bonds.
"Water and Sewage Fund" means the fund by that name
established by Section 9 the 1961 Ordinance.
of
"Water and Sewage Utility" or the "combined water and
sewage system" means the combined water and sewage system of the
City including all extensions, enlargements and improvements
thereto hereafter constructed or acquired by the City.
Section 2. Authorization of and Security for the 1988
Bonds. For the purpose of providing funds to pay the cost of
the Project, there is hereby authorized and directed to be
issued a series of Combined Water and Sewage System Revenue
Bonds, Series 1988, of the City in the principal amount of
$3,000,000.
The 1988 Bonds shall be special obligations of the
City, and the principal of, premium, if any, and interest on the
1988 Bonds shall be payable solely from the Revenues and not
from any other fund or source. The 1988 Bonds constitute a lien
on the Revenues. The taxing power of the City is not pledged to
the payment of the 1988 Bonds either as to principal or
interest. The 1988 Bonds shall not be or constitute a general
obligation of the City, nor shall they constitute an
indebtedness of the City within the meaning of any
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constitutional, statutory or charter provision, limitation or
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accordance with the terms of an Escrow Trust Agreement dated as
of May 1, 1978, between the City and the Escrow Trustee with the
proceeds of the Series 1978 Bonds.
The 1988 Bonds shall stand on a parity with respect to
the payment of principal, premium, if any, and interest from the
Revenues derived by the City from the operation of the Water and
Sewage Utility and in all other respects with the 1984 Bonds and
the 1987 Bonds. The 1988 Bonds shall not have any priority with
respect to the payment of principal or interest from the
Revenues or otherwise over the 1984 Bonds, over the 1987 Bonds
nor over any other combined water and sewage system revenue
bonds of the City hereafter issued in accordance with the
provisions of this Ordinance and standing on a parity with the
1988 Bonds, nor shall the 1984 Bonds, the 1987 Bonds or any
other combined water and sewage system revenue bonds of the City
hereafter issued have any priority with respect to the payment
of principal, premium, if any, or interest from the Revenues or
otherwise over the 1988 Bonds.
Section 3. Description of the Bonds, Designation of
Paying Agent and Bond Registrar. The Bonds shall consist of
fully registered Bonds, without coupons, transferable to
subsequent owners only in the Bond Register maintained by the
Bond Registrar as hereinafter provided. Each Bond shall be in
the denomination of $5,000 or any integral multiple thereof not
exceeding'the principal amount of Bonds becoming due on the
Stated Maturity of such Bond, as specified by the Holder of such
Bond. The Bonds shall be numbered in a manner determined by the
Bond Registrar. The Bonds shall be dated December 1, 1988,
shall have the Stated Maturities, and shall bear interest at the
rates per annum, as follows:
MATURITY PRINCIPAL INTEREST
OCTOBER 1 AMOUNT RATE
1989 $ 65,000 9.50%
1990 70,000 9.50%
1991 75,000 9.50%
1992 85,000 9.50%
1993 90,000 9.50%
1994 95,000 9.50%
1995 105,000 9.00%
1996 110,000 9.00%
1997 120,000 9.00%
1998 130,000 9.00%
1999 140,000 6.70%
2000 155,000 6.80%
2001 165,000 6.90%
2002 180,000 7.00%
2003 190,000 7.05%
2004 210,000 7.10%
2005 225,000 7.15%
2006 245,000 7.20%
2007 260,000 6.00%
2008 285,000 6.00%
The Bonds shall bear interest from the most recent
Interest Payment Date to which interest has been paid in full
or, if no interest has been paid, from December 1, 1988.
Interest on the Bonds at the rates aforesaid shall be payable
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and private debts. Payment of the interest on each Bond shall
be made by the Paying Agent on each Interest Payment Date to the
Person appearing as the Holder thereof in the Bond Register at
the close of business on the Record Date next preceding said
Interest Payment Date, by check or draft mailed to such Holder
at the Holder's address as it appears in the Bond Register. The
principal of and redemption premium, if any, for each Bond shall
be payable to the Holder thereof upon the presentation of such
Bond for payment and cancellation at its Maturity at the
principal office of the Paying Agent.
Notwithstanding any of the foregoing provisions of
this Section to the contrary, any interest on the Bonds which is
payable, but is not punctually paid on any Interest Payment Date
(herein called "Defaulted Interest"), shall be payable to the
Persons in whose names the Bonds are registered at the close of
business on a Special Record Date. The Special Record Date
shall be fixed in the following manner: (1) the City shall
notify the Bond Registrar in writing of the amount of Defaulted
Interest proposed to be paid on the Bonds and the date of the
proposed payment, which proposed payment date shall be at least
30 days after receipt by the Bond Registrar of such notice from
the City; (2) at the same time the City shall deposit with the
Paying Agent an amount of money equal to the aggregate amount to
be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Paying Agent for such deposit
prior to the date of the proposed payment; and (3) thereupon,
the Bond Registrar shall fix a Special Record Date for the
payment of such Defaulted Interest which shall not be more than
15 nor less than 10 days prior to the date of the proposed
payment.
The Bond Registrar shall promptly notify the City of
such Special Record Date and, in the name and at the expense of
the City, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be
mailed, first class postage prepaid, to the Holder of each Bond
at such Holder's address as it appears in the Bond Register, not
less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been mailed as aforesaid, such
Defaulted Interest shall be paid to the Persons in whose names
the Bonds are registered at the close of business on such
Special Record Date.
Payment of principal of, redemption premium, if any,
and interest on a Bond may be made by such other method of
transferring funds as may be requested by the Holder of the
Bond, provided that the Paying Agent shall first receive a
written request from such Holder (i) specifying the method and
route for transferring funds and (ii) providing for the Paying
Agent to be reimbursed by the Holder for all expenses incurred
in connection with such fund transfers.
Subject to the foregoing provisions of this Section,
each Bond delivered under this Ordinance upon transfer of or in
exchange for or in lieu of any other Bond shall carry the rights
to interest accrued and unpaid, and to accrue, which were
carried by such other Bond.
the actual time of the execution of such Bond shall be the
proper officers to sign such Bond although at the original date
of such Bond such persons may not have been such officers.
The Bonds shall have endorsed thereon a Certificate of
Authentication substantially in the form hereinafter set forth
and which shall have the date of registration inserted and shall
be manually executed by the Bond Registrar.
No Bond shall be entitled to any security or benefit
under this Resolution or shall be valid or obligatory for any
purpose unless and until such Certificate of Authentication
shall have been duly executed by the Bond Registrar by manual
signature. Such executed Certificate of Authentication upon any
Bond shall be conclusive evidence that such Bond has been duly
authenticated and delivered under this Resolution and that such
registered owner has been entered of record in the Bond Register
kept by the Bond Registrar. The Certificate of Authentication
shall be deemed to have been duly executed if signed and dated
by any authorized officer or employee of the Bond Registrar, but
it shall not be necessary that the same officer or employee sign
the Certificate of Authentication on all of the Bonds that may
be issued hereunder at any one time.
The Mayor and City Clerk are hereby authorized and
directed to prepare and execute the Bonds in the manner
hereinbefore specified, to register the Bonds in the office of
the City Clerk, and to cause the Bonds to be registered in the
office of the State Treasurer of Kansas as provided by law, and
when the Bonds have been duly registered with the Bond
Registrar, to deliver the Bonds to the Underwriter, upon the
payment of the purchase price of 100% of the principal amount of
the Bonds plus accrued interest to the date of payment and
delivery together with any premium.
Section 6. Registration, Transfer and Exchange of
Bonds. So long as any of the Bonds remain outstanding, the City
shall cause the Bond Register to be kept at the principal office
of the Bond Registrar and all of the Bonds and transfers and/or
exchanges thereof shall be fully registered as to both principal
and interest in the name of the Holders in the Bond Register and
shall not be registered to bearer.
Bonds may be transferred in the Bond Register only
upon surrender thereof to the Bond Registrar duly endorsed for
transfer or accompanied by a written instrument of transfer duly
executed by the Holder thereof or his attorney or legal
representative in such form as shall be satisfactory to the Bond
Registrar. Upon any such transfer, the City shall execute and
the Bond Registrar shall authenticate and deliver in exchange
for such Bond a new Bond or Bonds, registered in the name of the
transferee, of any denomination or denominations authorized by
this Ordinance in an aggregate principal amount equal to the
principal amount of such Bond, of the same Stated Maturity and
bearing interest at the same rate.
Bonds, upon surrender thereof at the principal office
of the Bond Registrar, together with a written instrument of
transfer duly executed by the Holder thereof or his attorney or
legal representative in such form as shall be satisfactory to
the Bond Registrar, may, at the option of the Holder thereof, be
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service charge shall be made to any Bondholder for registration,
transfer or exchange of Bonds, but the City or the Bond
Registrar may make a charge for every transfer or exchange of
Bonds sufficient to reimburse it or them for any tax or other
governmental charge required to be paid with respect to such
transfer or exchange, and such charges shall be paid before any
such transfer or exchange shall be completed.
The City and the Bond Registrar shall not be required
(i) to issue, transfer or exchange any Bond during a period
beginning at the opening of business 15 days preceding a mailing
of a notice of redemption for Bonds selected for redemption
pursuant to Section 10 and ending at the close of business on
the date of such mailing; (ii) to transfer or exchange any Bond
so selected for redemption in whole or in part, or (iii) to
issue, transfer or exchange any Bond during the period beginning
at the opening of business on the day after receiving written
notice from the City of its intent to pay Defaulted Interest and
ending at the close of business on the date fixed for the
payment of Defaulted Interest pursuant to Section 4 of this
Ordinance.
Section 7. Persons Deemed Owners of Bonds. The
Person in whose name any Bond shall be registered shall be
deemed and regarded by the City, the Bond Registrar and the
Paying Agent as the absolute owner thereof, whether such Bond
shall be overdue or not, for the purpose of receiving payment
therefor or on account thereof and for all purposes, and neither
the City, the Bond Registrar nor the Paying Agent shall be
affected by notice to the contrary. Payment of or on account of
the principal of, premium, if any, and interest on any Bond
shall be made only to or upon the order of the Holder thereof or
his legal representative. All such payments shall be valid and
effectual to satisfy and discharge the liability upon such Bond,
including the interest thereon, to the extent of the sum or sums
so paid.
Section 8. Mutilated, Lost, Stolen or Destroyed
Bonds. In the event any Bond shall become mutilated, or be
lost, stolen or destroyed, the City shall, if necessary, execute
and the Bond Registrar shall authenticate and shall deliver a
new Bond of like date and tenor as the Bond mutilated, lost,
stolen or destroyed; provided that, in the case of any mutilated
Bond, such mutilated Bond shall first be surrendered to the Bond
Registrar, and in the case of any lost, stolen or destroyed
Bond, that the requirements of K.S.A. 84-8-405 are met and that
an indemnity bond and affidavit of loss are provided to the Bond
Registrar and the City at the expense of the Holder. Such
indemnity bond and affidavit of loss must be sufficient, in the
judgment of the Bond Registrar and the City, to protect the Bond
Registrar and the City from any loss which either of them might
suffer if the Bond is replaced. In the event any such Bond shall
have matured, instead of issuing a substitute Bond the City may
pay or authorize the payment of the same without surrender
thereof. Upon the issuance of any substitute Bond, the City and
the Bond Registrar may require the payment of an amount
sufficient to reimburse the City and the Bond Registrar for any
tax or other governmental charge that may be imposed in relation
thereto and any other reasonable fees and expenses incurred in
connection therewith. The provisions of this Section are
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Section 10. Redemption of Bonds Prior to Maturity.
At the option of the City, Bonds maturing on October 1, 1999,
and thereafter may be called for redemption and payment prior to
maturity, as a whole or in part, in inverse order of Maturity on
October 1, 1998, or on any Interest Payment Date thereafter, at
a Redemption Price equal to 100% of the principal amount of the
Bonds so redeemed and paid, plus accrued interest thereon to the
Redemption Date.
The Bond Registrar shall call Bonds for redemption and
payment as herein provided upon receipt by the Bond Registrar at
least 45 days prior to the Redemption Date of a written request
of the City. Such request shall specify the principal amount of
Bonds and their maturities to be called for redemption, the
applicable Redemption Price or Prices and the Redemption Date.
Bonds shall be redeemed in inverse order of maturity
in the principal amount of $5,000 or any integral multiple
thereof. In the case of a partial redemption of Bonds of the
same maturity the Bonds to be redeemed shall be selected by the
Bond Registrar from the Outstanding Bonds of that maturity by
such method as the Bond Registrar shall deem fair and
appropriate and which may provide for the selection for
redemption of portions of the principal of Outstanding Bonds of
that maturity of a denomination larger than $5,000. The
portions of the principal of Outstanding Bonds so selected for
partial redemption shall be equal to $5,000 or integral
multiples thereof. Any Bond which is to be redeemed only in part
shall be submitted to the Paying Agent and delivered to the Bond
Registrar, who shall authenticate and deliver to the Holder of
such Bond, without service charge, a new Bond or Bonds, of any
authorized denomination as requested by such Holder in an
aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Bond so surrendered.
If the Holder of any such Bond of a denomination greater than
$5,000 shall fail to present such Bond to the Paying Agent for
payment and exchange as aforesaid, such Bond shall,
nevertheless, become due and payable on the Redemption Date to
the extent of the principal amount of such Bond called for
redemption (and to that extent only).
If and when the City shall call any of the Bonds for
redemption and payment prior to the maturity thereof, the Bond
Registrar shall give written notice in the name of the City of
its intention to redeem and pay such Bonds at the office of the
Paying Agent. Notice of Redemption shall be given by United
States registered or certified mail, postage prepaid, mailed not
less than 30 days prior to the Redemption Date, to each Holder
of Bonds to be redeemed, at his address appearing in the Bond
Register. All notices of redemption shall state:
(i) The Redemption Date;
(ii) The Redemption Price;
(iii) If less than all Outstanding Bonds are to
be redeemed, the identification (and, in the case of
partial redemption, the respective principal amounts)
of the Bonds to be redeemed;
-1 Cox Priming — Salina, Kansas
1
1
r I
is called for redemption and payment as aforesaid, all interest
on such Bond shall cease from and after the date for which such
call is made, provided funds are made available to the Paying
Agent for its payment on the Redemption Date at the Redemption
Price.
The Bond Registrar is also directed to comply with any
mandatory or voluntary standards for processing redemptions of
municipal securities established by the Securities and Exchange
Commission. Failure to comply with such standards shall not
affect or invalidate the redemption of said Bonds being
redeemed.
Section 11. Form of Bonds. The Bonds issued in fully
registered form shall be substantially as follows:
REGISTERED
NUMBER
Interest
Rate
REGISTERED
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
COMBINED WATER AND SEWAGE SYSTEM REVENUE BOND
SERIES 1988
REGISTERED HOLDER:
PRINCIPAL AMOUNT:
Maturity Bond
Date Date
December 1, 1988
CUSIP
DOLLARS
THE CITY OF SALINA, in the County of Saline, State of
Kansas (the "City"), for value received, hereby promises to pay
to the Registered Holder identified above, or registered
assigns, on the Maturity Date identified above, unless called
for redemption prior to maturity, the Principal Amount
identified above and to pay interest thereon at the Interest
Rate specified above from the most recent Interest Payment Date
to which interest has been paid in full or, if no interest has
been paid, from December 1, 1988, said interest being payable
semiannually on April 1 and October 1 in each year, beginning
April 1, 1989 (the "Interest Payment Dates").
AS PROVIDED in the Ordinance (the "Ordinance") of the
City authorizing the issuance of this Bond, interest on this
Bond will be paid on each Interest Payment Date by check or
draft to the person in whose name this Bond (or one or more
predecessor Bonds) is registered in the hereinafter referred to
Bond Register at the close of business on the fifteenth day
(whether or not a business day) of the month next preceding each
Interest Payment Date (the "Record Date") to the registered
owner hereof at such person's address as it appears in the Bond
K, -C— P-t,,g —Salina, Kansas
1
THIS BOND shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the
Ordinance until the Certificate of Authentication hereon shall
have been dated and executed by the Bond Registrar.
IT IS HEREBY DECLARED AND CERTIFIED that all acts,
conditions and things required to be done and to exist precedent
to and in the issuance of the Bonds have been done and performed
and do exist in due and regular form and manner as required by
the constitution and laws of the State of Kansas.
IN WITNESS WHEREOF, the City has caused this Bond to
be executed by facsimile signatures of its Mayor and City Clerk
and a facsimile of its corporate seal to be hereto affixed and
this Bond to be dated December 1, 1988.
CITY OF SALINA, KANSAS
(facsimile)
Mayor
ATTEST:
(facsimile)
City Clerk
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within
mentioned Ordinance.
REGISTRATION DATE:
THE TREASURER OF THE STATE OF KANSAS
Bond Registrar and Paying Agent
By
State Treasurer's Registration Number: 0322-085-120188-274
[ON REVERSE SIDE]
FURTHER PROVISIONS
THIS BOND is one of an authorized series of Bonds of
the City designated "Combined Water and Sewage System Revenue
Bonds, Series 1988," aggregating the principal amount of
$3,000,000, issued for the purpose of repairing, altering,
extending, reconstructing, enlarging and improving the combined
water and sewage system, by the authority of and in full
compliance with the provisions, restrictions and limitations of
the Constitution and statutes of the State of Kansas, including
K.S.A. 12-856 to 12-869, inclusive, and all amendments thereof
and all other provisions of the laws of said State applicable
thereto.
THIS BOND and all interest hereon are special
obligations of the City to be paid by said City solely from the
revenues derived from the rates, fees or charges collected by
said Citv trnm the nnArai-i nn of i i -c r+nm},i ncrl ,n4 - -A
Kinn -Cox Pri n ling — Sali
Utility, the nature and extent of the security of such Bonds,
the rights, duties and obligations of the City with respect
thereto and the rights of the holders thereof. The Bonds are
junior and subordinate with respect to the payment of principal
and interest and in other respects to an issue of Combined Water
and Sewage System Revenue Bonds, Series of 1977, dated April 1,
1977, in the original principal amount of $3,000,000. The Bonds
stand on a parity with respect to the payment of principal,
redemption premium, if any, and interest from the revenues of
the City's combined water and sewage system and in all other
respects with an issue of Combined Water and Sewage System
Refunding Revenue Bonds, Series of 1984, dated June 15, 1984, in
the original principal amount of $2,770,000, and an issue of
Combined Water and Sewage System Revenue Bonds, Series of 1987,
dated October 1, 1987, in the original principal amount of
$2,650,000. The City may issue additional bonds payable from
the net revenues produced from the combined water and sewage
system of the City as provided in and subject to the
restrictions of the Ordinance and may provide that any such
additional bonds shall enjoy equality of lien on said net
revenues with the Bonds.
THIS BOND has been duly registered in the office of
the City Clerk of the City of Salina, Kansas, and in the office
of the Treasurer of the State of Kansas.
THE BONDS maturing on October 1, 1999, and thereafter,
at the option of the City, may be called for redemption and
payment prior to maturity, as a whole or in part, on October 1,
1998, or on any Interest Payment Date thereafter, at a
Redemption Price equal to 100% of the principal amount of the
bonds so redeemed and paid, plus accrued interest thereon to the
date fixed for redemption and payment. Bonds to be redeemed and
paid pursuant to the provisions described above shall be
redeemed in inverse order of maturity, Bonds of less than a full
maturity to be selected by the Bond Registrar in such manner as
it shall deem fair and appropriate.
IN THE EVENT any of the Bonds are called for
redemption and payment as aforesaid, written notice thereof will
be given by United States registered or certified mail mailed
not less than 30 days prior to the date fixed for redemption and
payment to each holder of Bonds to be redeemed. All bonds so
called for redemption will cease to bear interest on the
specified redemption date, provided funds are deposited with the
Paying Agent on such redemption date, and will no longer be
secured by the Ordinance and will not be deemed to be
outstanding under the provisions of the Ordinance. The failure
of the holder of any Bond called for redemption to receive
written notice mailed pursuant to the above provisions will not
invalidate or affect the redemption of such Bond.
THE PRINCIPAL of and interest (computed on the basis
of a 360 -day year of twelve 30 -day months) on this Bond are
payable in such coin or currency of the United States of America
as at the time of payment is legal tender for the payment of
public and private debts.
THIS BOND is negotiable and is transferable, as
. _,cg;__ provided in the Ordinance, only in the Bond Register at the
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Kuhn -Coy Printing — Selina. Kansas
1
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0
amount of Bonds of any authorized denomination in the manner and
subject to the conditions provided in the Ordinance. No service
charge shall be made for any such transfer or exchange, but,
prior to any transfer or exchange, the registered owner hereof
shall pay to the City or the Bond Registrar an amount sufficient
to reimburse it or them for any tax or other governmental charge
required to be paid with respect to such transfer or exchange.
The City, the Bond Registrar and the Paying Agent may deem and
treat the person in whose name this Bond is registered as the
absolute owner hereof for the purpose of receiving payment of,
or on account of, the principal hereof and interest due hereon
and for all other purposes. If the date for making any payment
of interest or principal occurs on a Saturday, Sunday or holiday
in the City of Topeka, Kansas, then such payment may be made on
the next succeeding business day with the same force and effect.
----------------------------------------------------------------
(FORM OF ASSIGNMENT)
BOND ASSIGNMENT
FOR VALUE RECEIVED the undersigned does (do) hereby
sell, assign and transfer to
(Name and Address)
(Social Security or Taxpayer Identifying No.)
the bond to which this assignment is affixed in the outstanding
principal amount of $ , standing in the name of the
undersigned on the books of the Treasurer of the State of
Kansas, Topeka, Kansas. The undersigned does (do) hereby
revocably constitute and appoint
attorney to transfer the said
bond, on the books of said Treasurer of the State of Kansas,
with full power of substitution in the premises.
Dated
Signature
(Sign Here Exactly as Name or Names
Appear on the Face of the Certificate)
Signature Guaranteed:
(Bank, Trust Company or Firm)
By
Authorized Officer
----------------------------------------------------------------
FORM OF CITY CLERK'S CERTIFICATE)
STATE OF KANSAS
SS.
rnrimmv nr C&T.TMP 1
----------------------------------------------------------------
(FORM OF STATE TREASURER'S CERTIFICATE)
OFFICE OF THE TREASURER, STATE OF KANSAS
I, JOAN FINNEY, Treasurer of the State of Kansas, do
hereby certify that a transcript of the proceedings leading up
to the issuance of this Bond has been filed in my office and
that this Bond was registered in my office according to law on
, 19
WITNESS my hand and official seal.
JOAN FINNEY
(FACSIMILE SEAL] Treasurer of the State of Kansas
By
Assistant State Treasurer
----------------------------------------------------------------
Section 12. Uncertificated Bonds. There will be no
uncertificated bonds.
Section 13. Disposition of 1988 Bond Proceeds. All
accrued interest and premium, if any, received from the sale of
the 1988 Bonds shall be credited to and deposited in the 1988
Principal and Interest Account hereinafter created by Section 15
of this Ordinance.
There shall next be deposited in the 1988 Reserve
Account hereinafter created by Section 13 of this Ordinance, the
sum of $300,000 from the proceeds received from the sale of the
Bonds.
The remainder of the proceeds received from the sale
of the 1988 Bonds shall be deposited in a separate fund hereby
created in the treasury of the City to be known as the "Combined
Water and Sewage Utility Construction Fund of 1988" (herein
called the "Construction Fund") and shall be used by the City
for the sole purpose of paying the cost of the Project in
accordance with the plans and specifications therefor prepared
by the City's engineers heretofore approved by the governing
body of the City and on file in the office of the City Clerk,
including any alterations in or amendments to said plans and
specifications deemed advisable by the City's engineers and
approved by the governing body of the City.
Withdrawals from the Construction Fund shall be made
only on duly authorized and executed warrant or check therefor
accompanied by a certificate executed by the City's engineers
that such payment is being made for a purpose within the scope
of this Ordinance and that the amount of such payment represents
only the contract price of the property, equipment, labor,
materials or service being paid for, or if such payment is not
being made pursuant to an express contract, that such payment is
not in excess of the reasonable value thereof. Nothing
hereinbefore contained shall prevent the payment out of the
Construction Fund of all costs and expenses incident to the
issuance of the Bonds without a certificate from the City's
engineers.
KUM1n-Cox Pri n ding — Salina. Kansas
enlargements in and to the Water and Sewage Utility, will be
paid and deposited in the City's "Water and Sewage Fund" and
that said revenues will not be mingled with the other funds of
the City and shall be administered and used solely as
hereinafter in this Ordinance provided.
Section 15. Ratification and Creation of Funds and
Accounts. The establishment by the 1961 Ordinance of the City
of the two separate accounts known respectively as the
(a) "Combined Water and Sewage System Depreciation
and Emergency Replacement Account" (herein called
the "Depreciation and Emergency Replacement
Account"), and
(b) "Combined Water and Sewage System Extension and
Bond Retirement Account" (herein called the
"Extension and Bond Retirement Account")
be, and the same is, hereby ratified and confirmed, and in
addition to the accounts aforesaid there were created and
established by the 1977 Ordinance of the City two separate
accounts known respectively as the
(c) "Bond and Interest Account for Combined Water and
Sewage System Revenue Bonds, Series of 197711, and
(d) "Reserve Account for Combined Water and Sewage
System Revenue Bonds, Series of 1977"
and the same are hereby ratified and confirmed, and in addition
to the accounts aforesaid, there were created and established by
the 1984 Ordinance of the City two separate accounts known
respectively as the
(e) "Principal and Interest Account for Combined
Water and Sewage System Refunding Revenue Bonds,
Series of 1984" (the "1984 Principal and Interest
Account"), and
(f) "Reserve Account for Combined Water and Sewage
System Refunding Revenue Bonds, Series 1984" (the
"1984 Reserve Account")
and the same are hereby ratified and confirmed, and in addition
to the accounts aforesaid, there were created and established by
the 1987 Ordinance of the City two separate accounts known
respectively as the
(g) "Principal and Interest Account for Combined
Water and Sewage System Revenue Bonds, Series of
1987" (the "1987 Principal and Interest
Account"), and
(h) "Reserve Account for Combined Water and Sewage
System Revenue Bonds, Series of 1987" (the "1987
Reserve Account")
and the same are hereby ratified and confirmed, and in addition
i
to the accounts aforesaid, there are hereby created and
PSf-Ahl i chaa i n +- ha r1= +-1,e n; ti.. 4-1.,,-. 4-1 1 —.4 -- --
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1
The accounts referred in (a) and (b) aforesaid shall be
maintained and administered by the City in accordance with the
provisions of the 1977 Ordinance, the 1984 Ordinance, the 1987
Ordinance and this Ordinance so long as any of the 1977 Bonds,
1984 Bonds, the 1987 Bonds or the 1988 Bonds remain outstanding
and unpaid. The accounts referred to in paragraphs (c) and (d)
aforesaid shall be maintained and administered in compliance
with the provisions of the 1977 Ordinance so long as any of the
1977 Bonds remain outstanding and unpaid. The accounts referred
to in paragraphs (e) and (f) aforesaid shall be maintained and
administered in compliance with the provisions of the 1984
Ordinance so long as any of the 1984 Bonds remain outstanding
and unpaid. The accounts referred to in paragraphs (g) and (h)
aforesaid shall be maintained and administered in compliance
with the provisions of the 1987 Ordinance so long as any of the
1987 Bonds remain outstanding and unpaid. The accounts referred
to in paragraphs (i) and (j) aforesaid shall be maintained and
administered by the City as hereinafter provided in this
Ordinance so long as any of the 1988 Bonds remain Outstanding.
Section 16. Application of Moneys in Funds and
Accounts. Moneys paid and deposited in the "Water and Sewage
Fund" heretofore established by the City and hereinbefore
referred to shall be administered and disposed of by the City so
long as any of the 1988 Bonds remain outstanding, in the
following order, to wit:
(a) The City each month shall pay or make provision
for the payment of the reasonable and proper Operating Expenses
for the current month. No moneys in the Water and Sewage Fund
shall be used for the purpose of extending or enlarging the
City's Water and Sewage Utility, except as provided in paragraph
(g) of this Section 16.
(b) After paying or making provision for the payment
each month of the reasonable and proper expenses of operating
and maintaining the City's combined water and sewage system for
the current month, the City shall next pay or credit from time
to time from the Water and Sewage Fund to the Bond and Interest
Account for Combined Water and Sewage System Revenue Bonds,
Series of 1977, so long as any of the 1977 Bonds remain
outstanding, amounts (if any) at the time required to be paid or
credited by the provisions of the 1977 Ordinance.
(c) After making the payments and credits at the time
required to be made by the City under the provisions of
paragraphs (a) and (b) aforesaid the City shall pay or credit
from time to time from the Water and Sewage Fund to the Reserve
Account for Combined Water and Sewage System Revenue Bonds,
Series of 1977, so long as any of the 1977 Bonds remain
outstanding, any amounts at the time required to be paid or
credited by the provisions of the 1977 Ordinance.
(d) After making all payments and credits at the time
required to be made by the City under the provisions of
paragraphs (a), (b) and (c) aforesaid, the City shall next pay
or credit from the Water and Sewage Fund to the 1984 Principal
and Interest Account and the 1987 Principal and Interest Account
any amounts at the time required to be paid or credited to said
Account under the provisions of the 1984 Ordinance or the 1987
Ordinance. and at the Ramp t;rnA c„r-h nac,mcnl-c nnA
Hu" C., a ging — Saiz a, Kansas
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1
on April 1, 1989, and continuing on the first day of
each month thereafter, an amount not less than one-
sixth (1/6) of the interest that will become due on
the 1988 Bonds on the next succeeding Interest
Payment Date; and
(ii) Beginning on the first day of each month
from and after the delivery of the 1988 Bonds, and
continuing on the first day of each month thereafter
to and including September 1, 1989, an equal pro rata
portion of the principal amount of the 1988 Bonds
that will become due on October 1, 1989; and
beginning on October 1, 1989, and continuing on the
first day of each month thereafter, an amount not
less than one -twelfth (1/12) of the principal amount
of the 1988 Bonds that will become due on the next
succeeding Stated Maturity; and
(iii) On the first day of each month preceding a
month in which fees of the Bond Registrar and Paying
Agent are scheduled to become due, such amounts as may
be required to pay such fees.
All amounts paid and credited to the 1988 Principal
and Interest Account shall be used and expended by the City for
the sole purpose of paying the interest on and principal of the
1988 Bonds as and when the same become due and the fees of the
Paying Agent and Bond Registrar for acting hereunder.
If at any time the moneys in the Water and Sewage Fund
shall be insufficient to make in full the payments and credits
at the time required to be made by the City to the principal and
interest accounts established by the City to pay the principal
of and interest on the outstanding revenue bonds of the City,
including only the 1984 Bonds, the 1987 Bonds, the 1988 Bonds
and any other combined water and sewage system revenue bonds of
the City hereafter issued and standing on a parity with the 1988
Bonds, the available moneys in the Water and Sewage Fund shall
be divided among such principal and interest accounts in
proportion to the respective principal amounts of said series of
combined water and sewage system revenue bonds of the City at
the time outstanding which are payable from the moneys in said
principal and interest accounts.
(e) Prior to or concurrently with the issuance and
delivery of the 1988 Bonds, there shall be paid and credited to
the 1988 Reserve Account, from proceeds received from the sale
of the Bonds as provided in Section 13 of this Ordinance, the
sum of $300,000 (the "Reserve Requirement").
All amounts paid or credited to the 1988 Reserve
Account shall be used and expended solely to prevent any default
in the payment of interest on or principal of the Outstanding
1988 Bonds of the City if the moneys in the 1988 Principal and
Interest Account hereinbefore created are insufficient to pay
the interest on or principal of the 1988 Bonds as they become
due. No part of said 1988 Reserve Account shall ever be
expended or used by the City to call any 1988 Bonds for payment
prior to their ultimate maturity unless all of the Outstanding
1988 Bonds be called for payment and funds are available to pay
the same accordina to thP; r tPrmc _ qn I nnn no 4-hc mm�"4- --
1
1
Fund to the 1984 Reserve Account and the 1987 Reserve Account
any amounts at the time required to be paid or credited to said
Accounts under the provisions of the 1984 Ordinance and the 1987
Ordinance, and, at the same time such payments or credits are
made and on a parity therewith, the City shall pay or credit
from the Water and Sewage Fund to the 1988 Reserve Account the
sum of $10,000 each month until the Reserve Account aggregates
the Reserve Requirement.
At no time shall the balance of monies on hand in the
1988 Bond Reserve Account exceed the sum of $300,000.
If at any time the moneys in the Water and Sewage Fund
shall be insufficient to make in full the payments and credits
at the time required to be made by the City to the bond reserve
accounts established by the City to protect the payment of the
outstanding combined water and sewage system revenue bonds of
the City, including only the 1984 Bonds, the 1987 Bonds, the
1988 Bonds and any other combined water and sewage system
revenue bonds of the City hereafter issued and standing on a
parity with the 1988 Bonds, the available moneys in the Water
and Sewage Fund shall be divided among such bond reserve
accounts in proportion to the respective principal amounts of
said series of combined water and sewage system revenue bonds of
the City at the time outstanding which are payable from the
moneys in such bond reserve accounts.
(f) The Combined Water and Sewage System Depreciation
and Emergency Replacement Account shall be maintained and
administered by the City so long as any of the City's 1988 Bonds
remain outstanding. After making all payments and credits at
the time required to be made by the City under the provisions of
paragraphs (a), (b), (c), (d) and (e) aforesaid, the City shall
next pay or credit from the Water and Sewage Fund to said
Depreciation and Emergency Replacement Account on the first day
of each month, a sum not less than $2,500 until said account
shall aggregate in cash and securities not less than the sum of
$350,000 (including any amounts required pursuant to the
provisions of the 1984 Ordinance). Except as hereinafter
provided, all amounts credited to said account shall be used by
the City, if no other funds are available therefor, for the
purpose of making emergency maintenance, repairs and
improvements in and to the City's Water and Sewage Utility and
keeping the same in good repair and working order so that the
Water and Sewage Utility may continue in effective and efficient
operation. If no other funds are available therefor, moneys in
said account may be used to pay the cost of operating and
maintaining the City's Water and Sewage Utility and for the
purpose of making major extensions or enlargements of said
system.
So long as said Depreciation and Emergency Replacement
Account aggregates not less than $350,000 (including any amounts
required pursuant to the provisions of the 1984 Ordinance), no
further payments into said account shall be required, but if the
City be compelled to use and expend any part of said account for
the purpose specified in the last preceding paragraph hereof,
and such use shall reduce the amount of said account below the
sum of $350,000 (including any amounts required pursuant to the
provisions of the 1984 Ordinance), then the City, after making
Al 1 nAwynontc nr nrcri; +-= n+- +-+,o +-;,..e -.,,, ..,,.a �.. i.._ __A_ L__ -L -
and (f) of this Section shall have been so paid or credited, and
if at the time the City shall not be in default in the
performance of any covenant or agreement contained in this
Ordinance, all moneys remaining in the Water and Sewage Fund
shall be credited monthly to the Extension and Bond Retirement
Account. Except as hereinafter provided, moneys in the
Extension and Bond Retirement Account shall be used solely for
the following purposes as determined from time to time by the
governing body of the City:
(i) Paying the cost of operation, maintenance and
repair of the City's Water and Sewage Utility to
the extent that may be necessary after the
application of the moneys held in the "Water and
Sewage Fund" under the provisions of paragraph
(a) of this Section.
At least once in every two years the City's Consulting
Engineers hereinafter referred to in Section 20(d) of this
Ordinance, after making their examination and report on the
condition, operation and needs of the City's Water and Sewage
Utility as provided in said Section 20(d), shall, by written
instrument filed in the office of the City Clerk, and sent by
such engineers by United States registered mail to the
Underwriters, certify whether or not in their opinion the moneys
in the Extension and Bond Retirement Account are in excess of
(ii) Anticipating payments into or increasing the
amounts of the accounts referred to in paragraphs
(b), (c), (d) and (f) of this Section, or any of
them, or establishing or increasing the amount of
any principal and interest account or principal
reserve account created by the City for the
payment of any combined water and sewage system
revenue bonds of the City hereafter issued under
the conditions hereinafter specified.
(iii) Paying the cost of improving, extending or
enlarging the City's Water and Sewage Utility as
hereinafter in this Section 16(g) provided.
(iv) Redeeming or paying prior to maturity combined
water and sewage system revenue bonds of the City
but only as hereinafter in this Section 16(g)
provided.
The City covenants and agrees that it will not expend
or permit the expenditure of any moneys in the Extension and
Bond Retirement Account for any extensions, improvements or
enlargements of the City's combined water and sewage system
which are not economically sound or which will not properly and
advantageously contribute to the efficient and economical
conduct of the operation and business of said system as
evidenced by a written report and recommendation of the
superintendent or manager of said system, nor will it make any
such extension, improvement or enlargement costing in excess of
$100,000 for any single purchase or improvement without securing
from the City's Consulting Engineers a report and recommendation
with respect thereto, nor will it make such purchase or
improvement except in accordance with such report and
recommendation.
At least once in every two years the City's Consulting
Engineers hereinafter referred to in Section 20(d) of this
Ordinance, after making their examination and report on the
condition, operation and needs of the City's Water and Sewage
Utility as provided in said Section 20(d), shall, by written
instrument filed in the office of the City Clerk, and sent by
such engineers by United States registered mail to the
Underwriters, certify whether or not in their opinion the moneys
in the Extension and Bond Retirement Account are in excess of
11 -Cox P1.111, — 1111,, Kansas
Ci
11
and (f) of this Section shall have been so paid or credited, and
if at the time the City shall not be in default in the
performance of any covenant or agreement contained in this
Ordinance, all moneys remaining in the Water and Sewage Fund
shall be credited monthly to the Extension and Bond Retirement
Account. Except as hereinafter provided, moneys in the
Extension and Bond Retirement Account shall be used solely for
the following purposes as determined from time to time by the
governing body of the City:
(i) Paying the cost of operation, maintenance and
repair of the City's Water and Sewage Utility to
the extent that may be necessary after the
application of the moneys held in the "Water and
Sewage Fund" under the provisions of paragraph
(a) of this Section.
(ii) Anticipating payments into or increasing the
amounts of the accounts referred to in paragraphs
(b), (c), (d) and (f) of this Section, or any of
them, or establishing or increasing the amount of
any principal and interest account or principal
reserve account created by the City for the
payment of any combined water and sewage system
revenue bonds of the City hereafter issued under
the conditions hereinafter specified.
(iii) Paying the cost of improving, extending or
enlarging the City's Water and Sewage Utility as
hereinafter in this Section 16(g) provided.
(iv) Redeeming or paying prior to maturity combined
water and sewage system revenue bonds of the City
but only as hereinafter in this Section 16(g)
provided.
The City covenants and agrees that it will not expend
or permit the expenditure of any moneys in the Extension and
Bond Retirement Account for any extensions, improvements or
enlargements of the City's combined water and sewage system
which are not economically sound or which will not properly and
advantageously contribute to the efficient and economical
conduct of the operation and business of said system as
evidenced by a written report and recommendation of the
superintendent or manager of said system, nor will it make any
such extension, improvement or enlargement costing in excess of
$100,000 for any single purchase or improvement without securing
from the City's Consulting Engineers a report and recommendation
with respect thereto, nor will it make such purchase or
improvement except in accordance with such report and
recommendation.
At least once in every two years the City's Consulting
Engineers hereinafter referred to in Section 20(d) of this
Ordinance, after making their examination and report on the
condition, operation and needs of the City's Water and Sewage
Utility as provided in said Section 20(d), shall, by written
instrument filed in the office of the City Clerk, and sent by
such engineers by United States registered mail to the
Underwriters, certify whether or not in their opinion the moneys
in the Extension and Bond Retirement Account ara ;n asrr•aca of
Kuhn -Cor Printing — Salina, Kansas
1
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from time to time for the purpose of redeeming and paying prior
to maturity any of the Bonds of the City herein authorized if
any of such Bonds be subject to redemption, or, at the option of
the City, for purchasing an escrow comprised entirely of direct
obligations of the United States Government to provide for
payment of the Bonds or for purchasing any of the Bonds herein
authorized in the open market at the lowest price at which such
bonds may be purchased not exceeding the call price, or, if none
of the Bonds herein authorized is at the time subject to
redemption, then for the purpose of purchasing such Bonds in the
open market at the lowest price at which such bonds may be
purchased; provided, however, that if the City in conformity
with the provisions hereinafter contained shall hereafter issue
one or more series of its combined water and sewage system
revenue bonds which stand on a parity with the bonds herein
authorized, moneys in the Extension and Bond Retirement Account
available for the redemption or purchase of bonds shall be
divided among and applied to the redemption or purchase of bonds
of the respective series of combined water and sewage system
revenue bonds at the time outstanding in proportion to the total
principal amount of bonds of said respective series then
outstanding, whether or not the bonds of any series are at the
time subject to redemption. Bonds so redeemed -or purchased
shall be cancelled.
Section 17. Deficiency in Payments or Credits into
Funds or Accounts. If at any time the revenues derived by the
City from the operation of its Water and Sewage Utility shall be
insufficient to make any payment or credit on the date or dates
hereinbefore specified, the City shall make good the amount of
such deficiency by making payments or credits out of the first
available revenues thereafter received by the City from the
operation of its Water and Sewage Utility, such payments and
credits being made and applied in the order hereinbefore
specified in Section 16 hereof.
Section 18. Use of Other Accounts to Pay Bonds and
Interest. If at any time the moneys in the 1988 Principal and
Interest Account and in the 1988 Reserve Account are not
sufficient to pay the principal of and interest on the Bonds as
and when the same become due, then the amount of such deficiency
shall be made up by transfer of moneys from other funds and
accounts hereinbefore referred to in the following order:
First, from the Extension and Bond Retirement Account, secondly
from the Depreciation and Emergency Replacement Account, and
thirdly from moneys held in the Water and Sewage Fund, provided,
however, that there shall always remain in the Water and Sewage
Fund an amount sufficient to pay the reasonable and proper
expenses of operating and maintaining the City's Water and
Sewage Utility during the next succeeding period of thirty days.
Section 19. Investments. Any moneys held in any fund
or account which are not immediately needed for the purposes of
such fund or account may be invested by the City in direct
obligations of the United States Government or in any other
investment permitted by law; provided, however, that no such
investment shall be made for a period extending longer than to
the date when the moneys invested may be needed for the purpose
for which such fund or account was created. Cash moneys in each
of the funds and accounts herein created or established shall ha
ting — Salina. Kansas
and Emergency Replacement Account if the City shall not be in
default in making any payment into said accounts at the time
required to be made by the provisions of Section 16, shall
immediately be paid and credited to the Water and Sewage Fund
and used and applied for the purposes and in the order
hereinbefore specified in Section 16 of this Ordinance. In
determining the amount held in any fund or account under any of
the provisions of this Ordinance, obligations in which moneys
are invested shall be valued at the market value thereof.
Section 20. Particular Covenants of the City. The
City
covenants with each of the purchasers and owners of any of
the Bonds that so long as any of said Bonds remain outstanding
and unpaid:
(a) Rates. The City will fix, establish and maintain
rates, fees and other charges for the sale of water and sewage
services and commodities of the Water and Sewage Utility as
shall be required to provide Revenues at least sufficient in
each fiscal year to pay: (i) Operating Expenses during such
fiscal year, including reserves, if any, provided for in the
annual budget for such fiscal year; (ii) an amount equal to at
least 125% of the Aggregate Debt Service for such fiscal year;
(iii) an amount, if any, to be paid during such fiscal year into
the 1988 Reserve Account; (iv) to the extent not otherwise
provided for, an amount equal to debt service on the 1977 Bonds
for such fiscal year; (v) an amount, if any, to be paid into the
reserve account for the 1977 Bonds and into the Depreciation and
Emergency Replacement Account during such fiscal year; and (vi)
any and all charges or liens whatsoever payable out of Revenues
during such fiscal year.
(b) No Free Service; Service to City. None of the
facilities or services afforded by the Water and Sewage Utility
will be furnished to any user without a reasonable charge being
made therefor. The City will require the prompt payment of
accounts and will discontinue water and sewage service to any
customer delinquent in the payment of his account for a period
which shall not exceed sixty (60) days. The City will pay
monthly into the Water and Sewage Fund for the water and sewage
service furnished the City in accordance with effective
applicable rates, fees and charges.
(c) Good Repair. The City will maintain in good
repair and working order the City's Water and Sewage Utility and
will operate the same in an efficient manner and at reasonable
cost.
(d) Engineering Report. At least once in every two
years the City will employ Consulting Engineers and will cause
such Consulting Engineers to make an examination and report on
the condition and operation of the City's Water and Sewage
Utility, such report to include recommendations as to any
changes in such operation deemed desirable. Such report shall
also make reference to any unusual or extraordinary items of
maintenance and repair and any extensions or improvements that
may be needed in the ensuing year. A copy of each such report
will be filed in the office of the City Clerk and duplicate
copies thereof shall be mailed promptly to the Underwriters.
(e) Disposal of Property. The City will not
Kuhn-Gox P,,-, — Sali e. Kansas
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(f) Insurance. The City will carry and maintain a
reasonable amount of all-risk insurance upon the properties
forming a part of the Water and Sewage Utility insofar as they
are of an insurable nature, the amount of such insurance being
such amount as would normally be insured by a private
corporation engaged in a similar type of business. In the event
of loss or damage, the City, with all reasonable dispatch, will
use the proceeds of such insurance in reconstructing and
replacing the property damaged or destroyed, or, if such
reconstruction or replacement be unnecessary, then in redeeming
or purchasing outstanding bonds of the City, such redemption or
purchase being made in accordance with the provisions of the
Ordinance authorizing the issuance of the bonds. The City in
operating the Water and Sewage Utility will carry and maintain
public liability and workmen's compensation insurance in such
amounts as would normally be maintained by a private corporation
engaged in a similar type of business, and the proceeds derived
from any such policies shall be used in paying the claims on
account of which such proceeds were received, provided, however,
that the City may elect to accept the provisions of the
Workmen's Compensation Act of the State of Kansas as authorized
by K.S.A. 44-505 and any amendments thereto hereafter enacted,
and, in such event, may elect to carry its own risk in
accordance with the provisions of the statutes of the State of
Kansas. The cost of all insurance referred to in this paragraph
(f) shall be paid as an Operating Expense out of the revenues of
the City's Water and Sewage Utility.
(g) Books and Records; Annual Audit. The City will
install and maintain proper books, records and accounts
(entirely separate from all other records and accounts of the
City) in which complete and correct entries will be made of all
dealings and transactions of or in relation to the properties,
business and affairs of the Water and Sewage Utility of the
City. Such accounts shall show the amount of revenue received
from said Water and Sewage Utility, the application of such
revenue, and all financial transactions in connection therewith.
Said books shall be kept by the City according to standard
accounting practices as applicable to the operation of water and
sewage utilities. The City will operate the Water and Sewage
Utility on the basis of a fiscal year beginning on January 1st
and ending on December 31st. Annually, as soon as possible
following the close of each fiscal year, the City will cause an
audit to be made by a competent firm of certified public
accountants experienced in public utility accounting of the
accounts of its Water and Sewage Utility for the preceding
fiscal year. In addition to such matters as are customarily
included in the audit report, the accountants shall, without
limiting the generality of the foregoing, furnish to the City
separately a compiled statement of the number of customers
served, the amount and character of all insurance carried and a
statement and summary of the accountants' recommendations as to
the City's practices and procedures of water and sewage system
operations. Within thirty (30) days after the completion of
each such audit, said accountants shall file a copy thereof in
the office of the City Clerk and shall forward copies of such
audit to the Underwriters.
If such audit shall disclose that proper provision has
not been made for all of the requirements of the law under which
the Bonds herein authorized are issued. and of this 0rr1;na'nr
ing — Saiin a. Kansas
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shall be furnished by the City all such information concerning
said Water and Sewage Utility and the operation thereof which he
may reasonably request.
(i) Operation and Maintenance. The City will
punctually perform all duties and obligations with respect to
the operation and maintenance of the Water and Sewage Utility,
including all improvements, extensions and enlargements thereof,
now or hereafter imposed upon the City and by the Constitution
and laws of the State of Kansas, and by the provisions of this
Ordinance.
Section 21. Additional Bonds. The City of Salina,
Kansas, hereby covenants and agrees that so long as any of the
Bonds herein authorized remain outstanding and unpaid, said City
will not issue any additional bonds or other obligations payable
out of the Revenues of its Water and Sewage Utility which have a
claim on Revenues superior to the Bonds and that it will not
issue any such additional bonds or obligations which stand on a
parity or equality with the Bonds herein authorized unless all
of the following conditions are met:
(a) The issuance of the additional bonds shall be
authorized or permitted under the laws of the State of Kansas.
(b) Either (i) Revenues Available for Debt Service of
any 12 consecutive calendar months out of the 24 calendar months
next preceding the issuance of such additional bonds are not
less than 1.25 times the maximum Aggregate Debt Service for any
succeeding fiscal year (excluding the year of final maturity of
any series of bonds) on all bonds which will be outstanding
immediately after the issuance of the proposed additional bonds
or (ii) the estimated Revenues Available for Debt Service for
the fiscal year immediately following the year in which the
project, the cost of construction of which is being financed by
such additional bonds, is to be in commercial operation are not
less than 1.25 times the maximum Aggregate Debt Service for any
succeeding fiscal year (excluding the year of final maturity of
any series of bonds) on all bonds which are outstanding in such
fiscal year.
Prior to the issuance of any additional bonds the City
shall obtain a certificate of an Authorized Officer evidencing
full compliance with the provisions of clause (i) of paragraph
(b) of this Section or a certificate of the Consulting Engineers
evidencing full compliance with the provisions of clause (ii) of
paragraph (b) of this Section, as the case may be.
In determining the amount of Revenues Available for
Debt Service for the purposes of (i) above, the Authorized
Officer of the City may adjust the Revenues Available for Debt
Service by adding thereto, in the event any adjustment of rates
with respect to the Water and Sewage Utility shall have become
effective subsequent to the beginning of the 12 -month period
selected pursuant to (i) above, an estimate made by an
Authorized Officer of the City of such additional Revenues
Available for Debt Service for such 12 -month period which would
have resulted had such rate adjustment been in effect for the
entire period.
repair any damage or loss to the Water and Sewage Utility if the
Water and Sewage Utility has been destroyed or damaged by
disaster to such an extent that it cannot be operated or if it
is necessary to keep 'Che Water and Sewage Utility in good
operating condition.
(c) The City shall not be in defaulf in making any
payments at the time required to be made by it into the
respective funds and accounts created or established by this
Ordinance.
Additional bonds of the City issued under the
conditions hereinbefore in this section set forth shall stand on
a parity with the Bonds herein authorized and shall enjoy
complete equality of lien on and claim against the Revenues of
the City's Water and Sewage Utility with the Bonds herein
authorized, and the City may make equal provision for paying
said Bonds and the interest thereon out of the Water and Sewage
Fund and may likewise provide for the creation of reasonable
reserve accounts out of moneys in said Water and Sewage Fund.
Nothing in this section contained shall prohibit or
restrict the right of the City to issue additional water and
sewage system revenue bonds or other revenue obligations for the
purpose of reconstructing, altering, repairing, improving,
extending or enlarging the City's Water and Sewage Utility and
to provide that the principal of and interest on said revenue
bonds or obligations shall be payable out of the revenues of the
City's Water and Sewage Utility, provided that such additional
revenue bonds or obligations shall be junior and subordinate to
the Bonds so that if at any time the City shall be in default in
paying either interest on or principal of the Bonds the City
shall make no payments of either principal of or interest on
said junior and subordinate revenue bonds or obligations until
said default or defaults be cured. In the event of the issuance
of any such junior and subordinate revenue bonds or obligations,
the City, subject to the provisions aforesaid, may make
provision for paying the principal of and interest on said
revenue bonds or other revenue obligations out of moneys in the
Water and Sewage Fund.
Section 22. Tax Matters. The City will comply with
all applicable provisions of the Internal Revenue Code of 1986
(the "Code"), including Section 103 thereof, and the regulations
of the Treasury Department thereunder, from time to time
proposed or in effect, in order to maintain the exclusion from
gross income for purposes of federal income taxation of the
interest on the Bonds.
The City covenants and agrees that it will use the
proceeds of the Bonds as soon as practicable and with all
reasonable dispatch for the purpose for which the Bonds are
issued as hereinbefore set forth, and that no part of the
proceeds of the Bonds shall be invested in any securities,
obligations or other investments except for the temporary period
pending such use nor used, at any time, directly or indirectly,
in a manner which, if such use had been reasonably anticipated
on the date of issuance of the Bonds, would have caused any of
the Bonds to be or become "arbitrage bonds" within the meaning
of Section 103(b)(2) or Section 148 of the Code and the
regulations of the Treasury Department thereunder nronoseA nr ;n
KUM1 nCox Printing — Salina, Hansa.
1
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subordinate entities thereof) during the calendar year 1988 is
not reasonably expected to exceed $5,000,000. The City hereby
covenants that the City and all its subordinate entities will
not issue in excess of $5,000,000 of tax-exempt bonds (including
the Bonds but excluding private activity bonds and current
refunding of outstanding obligations) during the calendar year
1988 without first obtaining an opinion of nationally recognized
counsel in the area of municipal finance that the excludability
of the interest on the Bonds from gross income for federal tax
purposes will not be adversely affected.
The City hereby designates the Bonds as "qualified
tax-exempt obligations" as defined in Section 265(b)(3)(B) of
the Code. The aggregate face amount of all tax-exempt
obligations (excluding private activity bonds other than
qualified 501(c)(3) bonds) issued or to be issued by the City
(and all subordinate entities thereof) during calendar year 1988
is not reasonably expected to exceed $10,000,000. The City
hereby covenants that the City and all its subordinate entities
will not issue in excess of $10,000,000 of qualified tax-exempt
obligations (including the Bonds but excluding private activity
bonds other than qualified 501(c)(3) bonds) during the calendar
year 1988 without first obtaining an opinion of nationally
recognized counsel in the area of municipal finance that the
designation of the Bonds as "qualified tax-exempt obligations"
will not be adversely affected.
Section 23. Amendments. The provisions of the Bonds
authorized by this Ordinance and the provisions of this
Ordinance may be modified at any time by the City with the
written consent of the Holders of not less than sixty-six and
two-thirds percent (66 2/3%) in aggregate principal amount of
the Bonds at the time Outstanding; provided, however, that no
such modification or amendment shall permit or be construed as
permitting (a) the extension of the maturity or the principal of
any of the Bonds, or the extension of the maturity of any
interest on any Bonds, or (b) a reduction in the principal
amount of any Bonds or the rate of interest thereon, or (c) a
reduction in the aggregate principal amount of Bonds the consent
of the Holders of which is required for any such amendment or
modification. Any provision of the Bonds or of this Ordinance
may, however, be modified or amended in any respect with the
written consent of the Holders of all of the Bonds then
Outstanding. Amendments to this Ordinance which correct errors
or which add to or supplement the security of the Holders of the
Bonds may be adopted by the City without the consent of such
Holders. Every amendment or modification of a provision of the
Bonds or of this Ordinance to which the written consent of the
Holders is given as above provided shall be expressed in an
ordinance and shall be deemed to be a part of this Ordinance.
It shall not be necessary to note on any of the Outstanding
Bonds any reference to such amendment or modification, if any.
A certified copy of every such amendatory or supplemental
ordinance, if any, and a certified copy of this Ordinance shall
always be kept on file in the office of the City Clerk and shall
be made available for inspection by the Holder of any Bond or
prospective purchaser or Holder of any Bond authorized by this
Ordinance, and upon payment of the reasonable cost of preparing
the same, a certified copy of any such amendatory or
supplemental ordinance or of this Ordinance will be sent by the
City Clerk to anv such Holder or nrnsnPoi- i VP hnnrqhnl eq.= -
M1,— Panting — Salina, Kansas
may, by written notice to the City filed in the office of the
City Clerk or delivered in person to said City Clerk, declare
the principal of all Bonds then Outstanding to be due and
payable immediately, and upon any such declaration given as
aforesaid, all of said Bonds shall become and be immediately due
and payable, anything in this Ordinance or in said Bonds
contained to the contrary notwithstanding. This provision,
however, is subject to the condition that if at any time after
the principal of said Bonds shall have been so declared to be
due and payable, all arrears of interest upon all of said
Outstanding Bonds, except interest accrued but not yet due on
such Bonds, and all arrears of principal upon all of said Bonds
shall have been paid in full, and all other defaults, if any, by
the City under the provisions of this Ordinance and under the
provisions of the statutes of the State of Kansas shall have
been cured, then, and in every such case, the Holders of a
majority in amount of the Bonds then Outstanding, by written
notice to the City given as hereinbefore specified, may rescind
and annul such declaration and its consequences, but no such
rescission or annulment shall extend to or affect any subsequent
default or impair any rights consequent thereon.
Section 25. Enforcement. The provisions of this
Ordinance, including the covenants and agreements hereinbefore
contained, shall constitute a contract between the City and the
Holders of the Bonds, and the Holder or Holders of not less than
ten percent (10%) of the Bonds at the time Outstanding shall
have the right, for the equal benefit and protection of all
Holders of Bonds similarly situated:
(a) By mandamus or other suit, action or proceeding
at law or in equity to enforce his or their rights against the
City and its officers, agents and employees, and to require and
compel the City and its officers, agents and employees to
perform all duties and obligations required by the provisions of
this Ordinance or by the Constitution and laws of the State of
Kansas.
(b) By suit, action or other proceeding in equity or
at law to require the City, its officers, agents and employees
to account as if they were the trustees of an express trust.
(c) By suit, action or other proceeding in equity or
at law to enjoin any acts or things which may be unlawful or in
violation of the rights of the Holders of the Bonds.
Nothing contained in this Ordinance, however, shall be
construed as imposing on the City any duty or obligation to levy
any taxes either to meet any obligations incurred herein or to
pay the principal of or interest on the Bonds.
No remedy conferred hereby upon any holder of the
Bonds herein authorized is intended to be exclusive of any other
remedy, but each such remedy is cumulative and in addition to
every other remedy and may be exercised without exhausting and
without regard to any other remedy conferred hereby. No waiver
of any default or breach of duty or contract by the Holder of
any Bond shall extend to or affect any subsequent default or
breach of duty or contract or shall impair any rights or
remedies thereon. No delay or omission of the Holder to
exercise any right or power accruing upon any default shall
—, Cox P ling — $alma. --
restored to their former positions and rights and remedies as if
no such suit, action or other proceeding had been brought or
taken.
Section 26. Defeasance. When all of the 1988 Bonds
shall have been paid and discharged, then the requirements
contained herein and the pledge of Revenues made hereunder and
all other rights granted hereby shall cease and determine.
Series 1988 Bonds shall be deemed to have been paid and
discharged within the meaning of this Ordinance if there shall
have been deposited with the Paying Agent, or with a Kansas bank
having full trust powers, at or prior to the maturity or
redemption date of such 1988 Bonds, in trust for and irrevocably
appropriated thereto, moneys and/or direct obligations of, or
obligations the principal of and interest on which are
guaranteed by, the United States of America, which, together
with the interest to be earned on such investments, will be
sufficient for the payment of the principal of such 1988 Bonds,
the redemption premium thereon, if any there be, and interest
accrued to the date of maturity or redemption, as the case may
be, or if default in such payment shall have occurred on such
date, then to the date of the tender of such payments; provided,
however, always that if any such 1988 Bonds shall be redeemed
prior to the maturity thereof, the City shall have elected to
redeem such 1988 Bonds and notice of such redemption shall have
been given. Any moneys and obligations which at any time shall
be deposited with said Paying Agent or Kansas bank by or on
behalf of the City, for the purpose of paying and discharging
any of the 1988 Bonds, shall be and are hereby assigned,
transferred and set over to such Paying Agent or Kansas bank in
trust for the respective Holders of the 1988 Bonds, and such
moneys shall be and are hereby irrevocably appropriated to the
payment and discharge thereof. All moneys deposited with said
Paying Agent or bank shall be deemed to be deposited in
accordance with and subject to all the provisions contained in
this Ordinance.
Section 27. Approval of Preliminary Official
Statement and Official Statement. The Preliminary Official
Statement dated October 28, 1988, a copy of which has been
submitted to and reviewed by the Governing Body of the City on
the date hereof and is attached hereto as Exhibit "A", and the
final Official Statement, in substantially the form of the
Preliminary Official Statement, and the public distribution of
the same by the Underwriters is hereby approved. The Mayor of
the City is hereby authorized and directed to execute and
deliver said final Official Statement on behalf of the City with
such changes therein or amendments or supplements thereto as
shall be approved by the Mayor, the Mayor's execution thereof to
be conclusive evidence of said representative's approval
thereof.
Section 28. Severability. If any part of this
Ordinance, whether large or small, shall be held invalid, the
invalidity thereof shall not affect the other provisions of this
Ordinance.
Section 29. Effective Date. This Ordinance shall
take effect and be in full force from and after its passage and
publication once in the official City newspaper.
Kinn -Cox Priming— Seli e. K11—
PASSED by the governing body of the City of Salina,
Kansas, this Ils;- day of November, 1988.
ATTEST:
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City� Clerk '^
Kuhl Cl. P ting — Selina. Kansas
L—
CITY OF SALINA, KANSAS
ORDINANCE NO. 88-9292
$3,000,000
COMBINED WATER AND SEWAGE SYSTEM REVENUE BONDS
SERIES 1988
DATED: DECEMBER 1, 1988
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ORDINANCE NO. 88-9292 OF THE CITY OF SALINA, KANSAS
PAGE
Recitals-------------------------------------------
Section 1.
Definitions--------------------------------
3
Section 2.
Authorization of and Security for the
1988 Bonds------------------------------
7
Section 3.
Description of the Bonds, Designation of
Paying Agent and Bond Registrar---------
8
Section 4.
Method and Place of Payment of Principal
of and Interest on the Bonds------------
8
Section 5.
Execution, Authentication and Delivery
of the Bonds----------------------------
10
Section 6.
Registration, Transfer and Exchange of Bonds
10
Section 7.
Persons Deemed Owners of Bonds-------------
12
Section 8.
Mutilated, Lost, Stolen or Destroyed Bonds-
12
Section 9.
Cancellation and Destruction of Bonds
Upon Payment----------------------------
12
Section 10.
Redemption of Bonds Prior to Maturity------
12
Section 11.
Form of Bonds------------------------------
14
Section 12.
Uncertificated Bonds-----------------------
20
Section 13.
Disposition of 1988 Bond Proceeds----------
20
Section 14.
Water and Sewage Fund----------------------
20
Section 15.
Ratification and Creation of Funds and
Accounts--------------------------------
21
Section 16.
Application of Moneys in Funds and Accounts
22
Section 17.
Deficiency in Payments or Credits into
Funds or Accounts-----------------------
28
Section 18.
Use of Other Accounts to Pay Bonds
and Interest----------------------------
28
Section 19.
Investments--------------------------------
28
Section 20.
Particular Covenants of the City-----------
28
Section 21.
Additional Bonds---------------------------
31
Section 22.
Tax Matters--------------------------------
33
Section 23.
Amendments---------------------------------
34
Section 24.
Acceleration in the Event of Default-------
35
Section 25.
Enforcement--------------------------------
35
Section 26.
Defeasance---------------------------------
36
Section 27.
Approval of Preliminary Official Statement
and Official Statement------------------
37
Section 28.
Severability-------------------------------
37
Section 29.
Effective Date-----------------------------
37
K1h1 Printing — Saline. Names
( PUBLISHED IN THE SALINA JOURNAL ecem Xer c2, 1988 )
ORDINANCE NO. 88-9292
AN ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND
DELIVERY OF $3,000,000 PRINCIPAL AMOUNT OF COMBINED WATER AND
SEWAGE SYSTEM REVENUE BONDS, SERIES 1988, OF THE CITY OF SALINA,
KANSAS, FOR THE PURPOSE OF REPAIRING, ALTERING, EXTENDING,
RECONSTRUCTING, ENLARGING AND IMPROVING THE COMBINED WATER AND
SEWAGE SYSTEM, PRESCRIBING THE FORM AND DETAILS OF SAID REVENUE
BONDS, PROVIDING FOR THE COLLECTION, SEGREGATION AND APPLICATION
OF THE REVENUES OF SAID SYSTEM FOR THE PURPOSES AUTHORIZED BY
LAW, INCLUDING PAYING THE COST OF OPERATION AND MAINTENANCE OF
SAID UTILITY, PAYING THE PRINCIPAL OF AND INTEREST ON THE
REVENUE BONDS OF SAID CITY ISSUED AGAINST SAID SYSTEM AND
PROVIDING ADEQUATE RESERVE FUNDS, MAKING CERTAIN COVENANTS WITH
RESPECT TO SAID BONDS AND APPROVING A PRELIMINARY OFFICIAL
STATEMENT AND OFFICIAL STATEMENT RELATING TO SAID BONDS.
WHEREAS, the City of Salina, Kansas (the "City"),
pursuant to the provisions of K.S.A. 12-856 to 12-868,
inclusive, 1959 Supplement to the General Statutes of Kansas,
1949, acting through the governing body of the City, by
Ordinance No. 6544, passed June 27, 1961, has heretofore
combined the waterworks system and the sewage disposal system of
said City, as said systems are defined and referred to in said
Sections 12-856 to 12-868, inclusive, and said combined water
and sewage system (the "Water and Sewage Utility" or the
"combined water and sewage system") has thenceforth been
operated and financed in accordance with the provisions of said
statutes, and
WHEREAS, pursuant to the provisions of K.S.A. 12-856
to 12-869, inclusive, and all amendments thereto, the governing
body of the City heretofore caused to be published on October
21, 1988, in the official City newspaper a notice of the
intention of the City to repair, alter, extend, reconstruct,
enlarge and improve the combined water and sewage system of the
City (the "Project") at a total cost estimated to be $3,256,165,
to be paid for by the issuance of $3,000,000 principal amount of
combined water and sewage system revenue bonds of the City, and
WHEREAS, within fifteen (15) days after the
publication of the notice aforesaid, no written protest was
filed with the City Clerk of the City against the Project or
against the issuance of said revenue bonds, and the City is now
authorized to proceed with the Project and to issue its revenue
bonds to pay part of the cost thereof, and
WHEREAS, the governing body of said City has caused a
report covering the Project and an estimate of the cost thereof,
to be made by the City's engineers, and said report and estimate
have been and hereby are accepted and approved and are now on
file in the office of the City Clerk, and
WHEREAS, it appears from the report and estimate of
the City's engineers, and the governing body of the City hereby
finds and determines, that the cost of the Project will be
$3,000,000, and that it is now necessary that the City proceed
forthwith to authorize and issue its Combined Water and Sewage
System Revenue Bonds in the amount of $3,000,000 for the purpose
of paying the cost of the Project, and
WHEREAS, the City has heretofore issued an issue of
Combined Water and Sewage System Revenue Bonds, Series of 1977,
in the original principal amount of $3,000,000 (the "1977
Bonds"), authorized by Ordinance No. 8546 of said City (the
"1977 Ordinance"), and
Kuhn -Cox ,,, — Salina, Kansas
WHEREAS, the City has heretofore issued its Combined
Waterworks and Sewer System Refunding Revenue Bonds, Series of
1978, in the original principal amount of $4,394,000 (the "1978
Bonds"), authorized by Ordinance No. 8635 of the City (the "1978
Ordinance"), for the purpose of refunding, among other bond
issues, the 1977 Bonds, but under the terms of the 1977
Ordinance, the 1977 Ordinance was not defeased by such refunding
and the 1977 Bonds were not deemed to be paid, and
WHEREAS, the City has heretofore issued its Combined
Water and Sewage System Refunding Revenue Bonds, Series of 1984,
in the original principal amount of $2,770,000 (the "1984
Bonds"), authorized by Ordinance No. 84-9025 of the City (the
"1984 Ordinance"), for the purpose of refunding the 1978 Bonds,
and under the terms of the 1978 Ordinance, the 1978 Ordinance
was defeased by such refunding and the 1978 Bonds were deemed to
be paid, and
WHEREAS, the City has heretofore issued its Combined
Water and Sewage System Revenue Bonds, Series of 1987, in the
original principal amount of $2,650,000 (the "1987 Bonds"),
authorized by Ordinance No. 87-9202 of the City (the "1987
Ordinance"), for the purpose of repairing, altering, extending,
reconstructing, enlarging and improving the combined water and
sewage system of the City, including, but not limited to, the
reconstruction of the filter system which is part of the
waterworks system, and
WHEREAS, under the provisions of the 1977 Ordinance,
the City may issue additional bonds payable out of the revenues
of the Water and Sewage Utility which are junior and subordinate
to the 1977 Bonds provided the conditions set forth in Section
16 of the 1977 Ordinance are met, and
WHEREAS, under the provisions of the 1984 Ordinance
and 1987 Ordinance, the City may issue additional bonds payable
out of the revenues of the Water and Sewage Utility on a parity
and equality with the 1984 Bonds and the 1987 Bonds provided the
conditions set forth in the 1984 Ordinance and the 1987
Ordinance are met, and
WHEREAS, the governing body of the City hereby finds
and determines that the issuance of the revenue bonds herein
authorized will conform and comply in all respects with the
conditions set forth in the 1977 Ordinance, the 1984 Ordinance
and the 1987 Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY
OF THE CITY OF SALINA, KANSAS:
Section 1. Definitions. In addition to the words and
terms otherwise defined herein, unless the context shall clearly
indicate some other meaning, the words and terms defined in this
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Section shall for all purposes of this Ordinance have the
respective meanings specified in this Section, to wit:
"Aggregate Debt Service" means for any fiscal year as
of the date of calculation, the total aggregate amount of Debt
Service for such period with respect to all bonds payable from
the Revenues.
"Authorized Officer of the City" means the Mayor, City
Clerk or Superintendent or manager of the Water and Sewage
Utility or any officer of the City succeeding to the functions
of any of said officers.
"Bondholder" and "Holder" mean a Person in whose name
a Bond is registered in the Bond Register.
"Bond Register" means the register and all
accompanying records kept by the Bond Registrar evidencing the
registration, transfer and exchange of Bonds.
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Ku�nGov Priming — Salina. Kansas
"Bond Registrar" means the Treasurer of the State of
Kansas, Topeka, Kansas, and its successors when acting in the
capacity as registrar and transfer agent for the registration,
transfer and exchange of Bonds, and any successors thereto.
"Bonds" or "1988 Bonds" means the Combined Water and
Sewage System Revenue Bonds, Series 1988, authorized by the this
Ordinance.
"City" means the City of Salina, Kansas.
"Consulting Engineers" means an independent consulting
engineer, or firm of engineers, appointed from time to time and
having a favorable reputation for skill and experience in the
operation of water and sewer utilities retained by the City.
"Debt Service" for any year means, as of any date of
calculation and with respect to any bonds payable from Revenues,
an amount equal to the sum of (i) interest accruing during such
period on such bonds, except to the extent that such interest is
to be paid from moneys held in trust for the specific purpose of
making such payments, plus (ii) that portion of principal due
for such bonds during the current year excluding the year of
final maturity of any series of bonds, except to the extent that
such principal is to be paid from moneys held in trust for the
specific purpose of making such payments.
"Interest Payment Date" means the Stated Maturity of
an installment of interest on the Bonds.
"Maturity" with respect to any Bond means the date on
which the principal of such Bond becomes due and payable as
therein or herein provided, whether at the Stated Maturity of
such Bond or by declaration of acceleration, call for redemption
or otherwise.
"1961 Bonds" means the Combined Water and Sewage
System Revenue Bonds, Series of 1961, in the original principal
amount of $3,600,000, authorized by the 1961 Ordinance.
"1977 Bonds" means the Combined Water and Sewage
System Revenue Bonds, Series of 1977, in the original principal
amount of $3,000,000, authorized by the 1977 Ordinance, all of
which were refunded with a portion of the proceeds of the 1978
Bonds.
"1978 Bonds" means the Combined Water and Sewage
System Refunding Revenue Bonds, Series of 1978, authorized by
the 1978 Ordinance, all of which were refunded and deemed to be
paid with a portion of the proceeds of the 1984 Bonds.
"1984 Bonds" means the Combined Water and Sewage
System Refunding Revenue Bonds, Series of 1984, in the original
principal amount of $2,770,000.
"1987 Bonds" means the Combined Water and Sewage
System Revenue Bonds, Series of 1987, in the original principal
amount of $2,650,000.
"1961 Ordinance" means Ordinance No. 6546 of the City
authorizing the 1961 Bonds.
"1977 Ordinance" means Ordinance No. 8546 of the City
authorizing the 1977 Bonds.
"1978 Ordinance" means Ordinance No. 8635 of the City
authorizing the 1978 Bonds.
"1984 Ordinance" means Ordinance No. 84-9025 of the
City authorizing the 1984 Bonds.
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Huhn -Cox Priming — Salina. Kansas
"1987 Ordinance" means Ordinance No. 87-9202 of the
City authorizing the 1987 Bonds.
"1988 Ordinance" or "this Ordinance" means this
Ordinance of the City authorizing the 1988 Bonds, as originally
executed or as it may be supplemented or amended from time to
time.
(ii) Bonds in exchange for or in lieu of which
other Bonds have been authenticated and delivered
pursuant to this Ordinance; and
(iii) Bonds that have been defeased in
accordance with Section 26 of this Ordinance.
"Paying Agent" means the Treasurer of the State of
Kansas, Topeka, Kansas, and its successors.
"Person" means any individual, corporation,
partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency
or political subdivision thereof.
"Project" means repairing, altering, extending,
reconstructing, enlarging and improving the combined water and
sewage system.
"Record Date" for the interest and principal payable
on any Interest Payment Date means the 15th day (whether or not
a business day) of the calendar month next preceding such
Interest Payment Date.
"Redemption Date" when used with respect to any Bond
to be redeemed means the date fixed for redemption by or
pursuant to this Ordinance.
"Redemption Price" when used with respect to any Bond
means the price at which it is to be redeemed pursuant to this
Ordinance.
"Revenues" shall mean (i) as long as any of the 1977
Bonds are outstanding, all revenues, income and rents accrued by
the City from the ownership and operation of the Water and
Sewage Utility and the proceeds of any insurance covering
business interruption loss relating to the Water and Sewage
Utility remaining after the City has provided for the credits
and deposits required by the 1977 Ordinance, (ii) after the 1977
Bonds are no longer outstanding, all revenues, income and rents
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"Operating Expenses" shall mean the City's expenses of
operating and maintaining the Water and Sewage Utility and
keeping the same in good repair and working order, including all
costs due under any type of contractual arrangement with respect
to purchases of water, operation, maintenance, production,
transmission, distribution, repairs, replacements, engineering,
drilling wells, transportation, administrative and general,
audit, legal, financial, pension, retirement, health,
hospitalization, insurance, taxes and other expenses actually
paid or accrued, including without limitation any expenses of
the City applicable to the Water and Sewage Utility as recorded
on its books pursuant to standard accounting practices.
Operating Expenses shall not include any costs or expenses for
extending or enlarging the Water and Sewage Utility, charges for
depreciation, or payment of Debt Service on any bonds.
"Outstanding" when used with respect to Bonds means,
as of the date of determination, all Bonds theretofore executed,
authenticated and delivered under this Ordinance, except:
(i) Bonds theretofore cancelled by the Bond
Registrar or delivered to the Bond Registrar for
cancellation;
(ii) Bonds in exchange for or in lieu of which
other Bonds have been authenticated and delivered
pursuant to this Ordinance; and
(iii) Bonds that have been defeased in
accordance with Section 26 of this Ordinance.
"Paying Agent" means the Treasurer of the State of
Kansas, Topeka, Kansas, and its successors.
"Person" means any individual, corporation,
partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency
or political subdivision thereof.
"Project" means repairing, altering, extending,
reconstructing, enlarging and improving the combined water and
sewage system.
"Record Date" for the interest and principal payable
on any Interest Payment Date means the 15th day (whether or not
a business day) of the calendar month next preceding such
Interest Payment Date.
"Redemption Date" when used with respect to any Bond
to be redeemed means the date fixed for redemption by or
pursuant to this Ordinance.
"Redemption Price" when used with respect to any Bond
means the price at which it is to be redeemed pursuant to this
Ordinance.
"Revenues" shall mean (i) as long as any of the 1977
Bonds are outstanding, all revenues, income and rents accrued by
the City from the ownership and operation of the Water and
Sewage Utility and the proceeds of any insurance covering
business interruption loss relating to the Water and Sewage
Utility remaining after the City has provided for the credits
and deposits required by the 1977 Ordinance, (ii) after the 1977
Bonds are no longer outstanding, all revenues, income and rents
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Kuhn -Cox Panting — Selina, Keases
accrued by the City from the ownership and operation of the
Water and Sewage Utility and the proceeds of any insurance
covering business interruption loss relating to the Water and
Sewage Utility, and (iii) at all times interest received on any
moneys or securities held pursuant to the 1978 Ordinance
including Investment Income (as defined in the 1978 Ordinance),
received after February 15, 1991, and available for transfer
into the Principal and Interest Account (as defined in the 1978
Ordinance) pursuant to Section 12(e) of the 1978 Ordinance but
excluding interest from the Escrow Account (as defined in the
1978 Ordinance).
"Revenues Available for Debt Service" for any fiscal
year or period of 12 consecutive calendar months shall mean the
sum of (i) Revenues, and (ii) the interest accrued on any moneys
or securities held pursuant to the 1977 Ordinance, the 1984
Ordinance, the 1987 Ordinance or this Ordinance (except any
income on the bond and the interest account and the reserve
account created by the 1977 Ordinance) less Operating Expenses
for such fiscal year or period.
"Special Record Date" for the payment of any Defaulted
Interest, as defined in Section 4 hereof, means a date fixed by
the Bond Registrar pursuant to Section 4.
"Stated Maturity" when used with respect to any Bond
or any installment of interest thereon means the date specified
in Section 3 of this Ordinance as the fixed date on which the
principal of such Bond or such installment of interest is due
and payable.
"Underwriters" shall mean the initial pur.chasers of
the 1988 Bonds or the manager or managers of any underwriting
group initially purchasing the 1988 Bonds.
"Water and Sewage Fund" means the fund by that name
established by Section 9 of the 1961 Ordinance.
"Water and Sewage Utility" or the "combined water and
sewage system" means the combined water and sewage system of the
City including all extensions, enlargements and improvements
thereto hereafter constructed or acquired by the City.
Section 2. Authorization of and Security for the 1988
Bonds. For the purpose of providing funds to pay the cost of
the Project, there is hereby authorized and directed to be
issued a series of Combined Water and Sewage System Revenue
Bonds, Series 1988, of the City in the principal amount of
$3,000,000.
The 1988 Bonds shall be special obligations of the
City, and the principal of, premium, if any, and interest on the
1988 Bonds shall be payable solely from the Revenues and not
from any other fund or source. The 1988 Bonds constitute a lien
on the Revenues. The taxing power of the City is not pledged to
the payment of the 1988 Bonds either as to principal or
interest. The 1988 Bonds shall not be or constitute a general
obligation of the City, nor shall they constitute an
indebtedness of the City within the meaning of any
constitutional, statutory or charter provision, limitation or
restriction.
The 1988 Bonds shall be junior and subordinate with
respect to the payments of principal and interest out of the
Revenues of the Water and Sewage Utility of the City and in
other respects to the 1977 Bonds. In the event of any default
in the payment of either interest on or principal of any of the
1977 Bonds, the City shall make no payments of either principal
of or interest on the 1977 Bonds until such default be cured.
The City has duly provided for the payment of the 1977 Bonds in
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Kien -Cox P— ing — Salina. --
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accordance with the terms of an Escrow Trust Agreement dated as
of May 1, 1978, between the City and the Escrow Trustee with the
proceeds of the Series 1978 Bonds.
The 1988 Bonds shall stand on a parity with respect to
the payment of principal, premium, if any, and interest from the
Revenues derived by the City from the operation of the Water and
Sewage Utility and in all other respects with the 1984 Bonds and
the 1987 Bonds. The 1988 Bonds shall not have any priority with
respect to the payment of principal or interest from the
Revenues or otherwise over the 1984 Bonds, over the 1987 Bonds
nor over any other combined water and sewage system revenue
bonds of the City hereafter issued in accordance with the
provisions of this Ordinance and standing on a parity with the
1988 Bonds, nor shall the 1984 Bonds, the 1987 Bonds or any
other combined water and sewage system revenue bonds of the City
hereafter issued have any priority with respect to the payment
of principal, premium, if any, or interest from the Revenues or
otherwise over the 1988 Bonds.
Section 3. Description of the Bonds, Designation of
Paying Agent and Bond Registrar. The Bonds shall consist of
fully registered Bonds, without coupons, transferable to
subsequent owners only in the Bond Register maintained by the
Bond Registrar as hereinafter provided. Each Bond shall be in
the denomination of $5,000 or any integral multiple thereof not
exceeding'the principal amount of Bonds becoming due on the
Stated Maturity of such Bond, as specified by the Holder of such
Bond. The Bonds shall be numbered in a manner determined by the
Bond Registrar. The Bonds shall be dated December 1, 1988,
shall have the Stated Maturities, and shall bear interest at the
rates per annum, as follows:
MATURITY
OCTOBER 1
PRINCIPAL
AMOUNT
INTEREST
RATE
1989
$ 65,000
9.50%
1990
70,000
9.50%
1991
75,000
9.50%
1992
85,000
9.50%
1993
90,000
9.50%
1994
95,000
9.50%
1995
105,000
9.00%
1996
110,000
9.00%
1997
120,000
9.00%
1998
130,000
9.00%
1999
140,000
6.70%
2000
155,000
6.80%
2001
165,000
6.90%
2002
180,000
7.00%
2003
190,000
7.05%
2004
210,000
7.10%
2005
225,000
7.15%
2006
245,000
7.20%
2007
260,000
6.00%
2008
285,000
6.00%
The Bonds shall bear interest from the most recent
Interest Payment Date to which interest has been paid in full
or, if no interest has been paid, from December 1, 1988.
Interest on the Bonds at the rates aforesaid shall be payable
semiannually on April 1 and October 1 in each year, beginning
April 1, 1989 (the "Interest Payment Date"). The Treasurer of
the State of Kansas, Topeka, Kansas, is hereby designated as the
Paying Agent and as the Bond Registrar for the Bonds.
Section 4. Method and Place of Payment of Principal
of and Interest on the Bonds. The principal of, redemption
premium, if any, and interest (computed on the basis of a 360 -
day year of twelve 30 -day months) on the Bonds shall be payable
in such coin or currency of the United States of America as at
the time of payment is legal tender for the payment of public
Ku�nCo� P ting — Salina, Kansas
and private debts. Payment of the interest on each Bond shall
be made by the Paying Agent on each Interest Payment Date to the
Person appearing as the Holder thereof in the Bond Register at
the close of business on the Record Date next preceding said
Interest Payment Date, by check or draft mailed to such Holder
at the Holder's address as it appears in the Bond Register. The
principal of and redemption premium, if any, for each Bond shall
be payable to the Holder thereof upon the presentation of such
Bond for payment and cancellation at its Maturity at the
principal office of the Paying Agent.
Notwithstanding any of the foregoing provisions of
this Section to the contrary, any interest on the Bonds which is
payable, but is not punctually paid on any Interest Payment Date
(herein called "Defaulted Interest"), shall be payable to the
Persons in whose names the Bonds are registered at the close of
business on a Special Record Date. The Special Record Date
shall be fixed in the following manner: (1) the City shall
notify the Bond Registrar in writing of the amount of Defaulted
Interest proposed to be paid on the Bonds and the date of the
proposed payment, which proposed payment date shall be at least
30 days after receipt by the Bond Registrar of such notice from
the City; (2) at the same time the City shall deposit with the
Paying Agent an amount of money equal to the aggregate amount to
be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Paying Agent for such deposit
prior to the date of the proposed payment; and (3) thereupon,
the Bond Registrar shall fix a Special Record Date for the
payment of such Defaulted Interest which shall not be more than
15 nor less than 10 days prior to the date of the proposed
payment.
The Bond Registrar shall promptly notify the City of
such Special Record Date and, in the name and at the expense of
the City, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be
mailed, first class postage prepaid, to the Holder of each Bond
at such Holder's address as it appears in the Bond Register, not
less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been mailed as aforesaid, such
Defaulted Interest shall be paid to the Persons in whose names
the Bonds are registered at the close of business on such
Special Record Date.
Payment of principal of, redemption premium, if any,
and interest on a Bond may be made by such other method of
transferring funds as may be requested by the Holder of the
Bond, provided that the Paying Agent shall first receive a
written request from such Holder (i) specifying the method and
route for transferring funds and (ii) providing for the Paying
Agent to be reimbursed by the Holder for all expenses incurred
in connection with such fund transfers.
Subject to the foregoing provisions of this Section,
each Bond delivered under this Ordinance upon transfer of or in
exchange for or in lieu of any other Bond shall carry the rights
to interest accrued and unpaid, and to accrue, which were
carried by such other Bond.
Section 5. Execution, Authentication and Delivery of
the Bonds. The Bonds shall be executed on behalf of the City by
the facsimile signature of the Mayor, attested by the facsimile
signature of the City Clerk, with the facsimile seal of the City
affixed. In the event any officer whose signature or facsimile
thereof appears on any Bond shall cease to be such officer
before the delivery of such Bond, such signature or facsimile
thereof shall nevertheless be valid and sufficient for all
purposes, the same as if such person had remained in office
until delivery. Any Bond may be executed by such persons as at
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KunCox P ling — Sarna. Kansas
the actual time of the execution of such Bond shall be the
proper officers to sign such Bond although at the original date
of such Bond such persons may not have been such officers.
The Bonds shall have endorsed thereon a Certificate of
Authentication substantially in the form hereinafter set forth
and which shall have the date of registration inserted and shall
be manually executed by the Bond Registrar.
No Bond shall be entitled to any security or benefit
under this Resolution or shall be valid or obligatory for any
purpose unless and until such Certificate of Authentication
shall have been duly executed by the Bond Registrar by manual
signature. Such executed Certificate of Authentication upon any
Bond shall be conclusive evidence that such Bond has been duly
authenticated and delivered under this Resolution and that such
registered owner has been entered of record in the Bond Register
kept by the Bond Registrar. The Certificate of Authentication
shall be deemed to have been duly executed if signed and dated
by any authorized officer or employee of the Bond Registrar, but
it shall not be necessary that the same officer or employee sign
the Certificate of Authentication on all of the Bonds that may
be issued hereunder at any one time.
Bonds may be transferred in the Bond Register only
upon surrender thereof to the Bond Registrar duly endorsed for
transfer or accompanied by a written instrument of transfer duly
executed by the Holder thereof or his attorney or legal
representative in such form as shall be satisfactory to the Bond
Registrar. Upon any such transfer, the City shall execute and
the Bond Registrar shall authenticate and deliver in exchange
for such Bond a new Bond or Bonds, registered in the name of the
transferee, of any denomination or denominations authorized by
this Ordinance in an aggregate principal amount equal to the
principal amount of such Bond, of the same Stated Maturity and
bearing interest at the same rate.
Bonds, upon surrender thereof at the principal office
of the Bond Registrar, together with a written instrument of
transfer duly executed by the Holder thereof or his attorney or
legal representative in such form as shall be satisfactory to
the Bond Registrar, may, at the option of the Holder thereof, be
exchanged for an equal aggregate principal amount of Bonds of
the same Stated Maturity, of any denomination or denominations
authorized by this Ordinance, and bearing interest at the same
rate.
In all cases in which Bonds shall be exchanged or
transferred hereunder, the City shall execute and the Bond
Registrar shall authenticate and deliver at the earliest
practicable time Bonds in accordance with the provisions of this
Ordinance. All Bonds surrendered in any such exchange or
transfer shall forthwith be cancelled by the Bond Registrar. No
The Mayor and City Clerk are hereby authorized and
directed to prepare and execute the Bonds in the manner
hereinbefore specified, to register the Bonds in the office of
the City Clerk, and to cause the Bonds to be registered in the
office of the State Treasurer of Kansas as provided by law, and
when the Bonds have been duly registered with the Bond
Registrar, to deliver the Bonds to the Underwriter, upon the
payment of the purchase price of 100% of the principal amount of
the Bonds plus accrued interest to the date of payment and
delivery together with any premium.
Section 6. Registration, Transfer and Exchange of
Bonds. So long as any of the Bonds remain outstanding, the City
shall cause the Bond Register to be kept at the principal office
of the Bond Registrar and all of the Bonds and transfers and/or
exchanges thereof shall be fully registered as to both principal
and interest in the name of the Holders in the Bond Register and
shall not be registered to bearer.
Bonds may be transferred in the Bond Register only
upon surrender thereof to the Bond Registrar duly endorsed for
transfer or accompanied by a written instrument of transfer duly
executed by the Holder thereof or his attorney or legal
representative in such form as shall be satisfactory to the Bond
Registrar. Upon any such transfer, the City shall execute and
the Bond Registrar shall authenticate and deliver in exchange
for such Bond a new Bond or Bonds, registered in the name of the
transferee, of any denomination or denominations authorized by
this Ordinance in an aggregate principal amount equal to the
principal amount of such Bond, of the same Stated Maturity and
bearing interest at the same rate.
Bonds, upon surrender thereof at the principal office
of the Bond Registrar, together with a written instrument of
transfer duly executed by the Holder thereof or his attorney or
legal representative in such form as shall be satisfactory to
the Bond Registrar, may, at the option of the Holder thereof, be
exchanged for an equal aggregate principal amount of Bonds of
the same Stated Maturity, of any denomination or denominations
authorized by this Ordinance, and bearing interest at the same
rate.
In all cases in which Bonds shall be exchanged or
transferred hereunder, the City shall execute and the Bond
Registrar shall authenticate and deliver at the earliest
practicable time Bonds in accordance with the provisions of this
Ordinance. All Bonds surrendered in any such exchange or
transfer shall forthwith be cancelled by the Bond Registrar. No
Kinn -Cox Printing — Salrna. Kansas
1
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service charge shall be made to any Bondholder for registration,
transfer or exchange of Bonds, but the City or the Bond
Registrar may make a charge for every transfer or exchange of
Bonds sufficient to reimburse it or them for any tax or other
governmental charge required to be paid with respect to such
transfer or exchange, and such charges shall be paid before any
such transfer or exchange shall be completed.
The City and the Bond Registrar shall not be required
(i) to issue, transfer or exchange any Bond during a period
beginning at the opening of business 15 days preceding a mailing
of a notice of redemption for Bonds selected for redemption
pursuant to Section 10 and ending at the close of business on
the date of such mailing; (ii) to transfer or exchange any Bond
so selected for redemption in whole or in part, or (iii) to
issue, transfer or exchange any Bond during the period beginning
at the opening of business on the day after receiving written
notice from the City of its intent to pay Defaulted Interest and
ending at the close of business on the date fixed for the
payment of Defaulted Interest pursuant to Section 4 of this
Ordinance.
Section 7. Persons Deemed Owners of Bonds. The
Person in whose name any Bond shall be registered shall be
deemed and regarded by the City, the Bond Registrar and the
Paying Agent as the absolute owner thereof, whether such Bond
shall be overdue or not, for the purpose of receiving payment
therefor or on account thereof and for all purposes, and neither
the City, the Bond Registrar nor the Paying Agent shall be
affected by notice to the contrary. Payment of or on account of
the principal of, premium, if any, and interest on any Bond
shall be made only to or upon the order of the Holder thereof or
his legal representative. All such payments shall be valid and
effectual to satisfy and discharge the liability upon such Bond,
including the interest thereon, to the extent of the sum or sums
so paid.
Section 8. Mutilated, Lost, Stolen or Destroyed
Bonds. In the event any Bond shall become mutilated, or be
lost, stolen or destroyed, the City shall, if necessary, execute
and the Bond Registrar shall authenticate and shall deliver a
new Bond of like date and tenor as the Bond mutilated, lost,
stolen or destroyed; provided that, in the case of any mutilated
Bond, such mutilated Bond shall first be surrendered to the Bond
Registrar, and in the case of any lost, stolen or destroyed
Bond, that the requirements of K.S.A. 84-8-405 are met and that
an indemnity bond and affidavit of loss are provided to the Bond
Registrar and the City at the expense of the Holder. Such
indemnity bond and affidavit of loss must be sufficient, in the
judgment of the Bond Registrar and the City, to protect the Bond
Registrar and the City from any loss which either of them might
suffer if the Bond is replaced. In the event any such Bond shall
have matured, instead of issuing a substitute Bond the City may
pay or authorize the payment of the same without surrender
thereof. Upon the issuance of any substitute Bond, the City and
the Bond Registrar may require the payment of an amount
sufficient to reimburse the City and the Bond Registrar for any
tax or other governmental charge that may be imposed in relation
thereto and any other reasonable fees and expenses incurred in
connection therewith. The provisions of this Section are
exclusive and shall preclude (to the extent lawful) all other
rights and remedies with respect to the replacement or payment
of mutilated, lost, stolen or destroyed Bonds.
Section 9. Cancellation and Destruction of Bonds Upon
Payment. All Bonds surrendered for payment, transfer or
exchange shall be delivered to the Bond Registrar and, if not
already cancelled, the Bond Registrar shall cancel such Bonds
and record such cancellation in the Bond Register. Thereafter,
such cancelled Bonds shall be delivered to the City.
K— Cox Printing — Sabina, I——
Section 10. Redemption of Bonds Prior to Maturity.
At the option of the City, Bonds maturing on October 1, 1999,
and thereafter may be called for redemption and payment prior to
maturity, as a whole or in part, in inverse order of Maturity on
October 1, 1998, or on any Interest Payment Date thereafter, at
a Redemption Price equal to 100% of the principal amount of the
Bonds so redeemed and paid, plus accrued interest thereon to the
Redemption Date.
The Bond Registrar shall call Bonds for redemption and
payment as herein provided upon receipt by the Bond Registrar at
least 45 days prior to the Redemption Date of a written request
of the City. Such request shall specify the principal amount of
Bonds and their maturities to be called for redemption, the
applicable Redemption Price or Prices and the Redemption Date.
Bonds shall be redeemed in inverse order of maturity
in the principal amount of $5,000 or any integral multiple
thereof. In the case of a partial redemption of Bonds of the
same maturity the Bonds to be redeemed shall be selected by the
Bond Registrar from the Outstanding Bonds of that maturity by
such method as the Bond Registrar shall deem fair and
appropriate and which may provide for the selection for
redemption of portions of the principal of Outstanding Bonds of
that maturity of a denomination larger than $5,000. The
portions of the principal of Outstanding Bonds so selected for
partial redemption shall be equal to $5,000 or integral
multiples thereof. Any Bond which is to be redeemed only in part
shall be submitted to the Paying Agent and delivered to the Bond
Registrar, who shall authenticate and deliver to the Holder of
such Bond, without service charge, a new Bond or Bonds, of any
authorized denomination as requested by such Holder in an
aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Bond so surrendered.
If the Holder of any such Bond of a denomination greater than
$5,000 shall fail to present such Bond to the Paying Agent for
payment and exchange as aforesaid, such Bond shall,
nevertheless, become due and payable on the Redemption Date to
the extent of the principal amount of such Bond called for
redemption (and to that extent only).
If and when the City shall call any of the Bonds for
redemption and payment prior to the maturity thereof, the Bond
Registrar shall give written notice in the name of the City of
its intention to redeem and pay such Bonds at the office of the
Paying Agent. Notice of Redemption shall be given by United
States registered or certified mail, postage prepaid, mailed not
less than 30 days prior to the Redemption Date, to each Holder
of Bonds to be redeemed, at his address appearing in the Bond
Register. All notices of redemption shall state:
(i) The Redemption Date;
(ii) The Redemption Price;
(iii) If less than all Outstanding Bonds are to
be redeemed, the identification (and, in the case of
partial redemption, the respective principal amounts)
of the Bonds to be redeemed;
(iv) That on the Redemption Date, the Redemption
Price will become due and payable upon each such
Bond, and that interest thereon shall cease to accrue
from and after said date; and
(v) The place where such Bonds are to be
surrendered for payment of the Redemption Price
(which shall be the office of the Paying Agent).
The failure of the Holder of any Bond to be redeemed
to receive written notice mailed pursuant hereto shall not
affect or invalidate the redemption of said Bond. If any Bond
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1
1
is called for redemption and payment as aforesaid, all interest
on such Bond shall cease from and after the date for which such
call is made, provided funds are made available to the Paying
Agent for its payment on the Redemption Date at the Redemption
Price.
The Bond Registrar is also directed to comply with any
mandatory or voluntary standards for processing redemptions of
municipal securities established by the Securities and Exchange
Commission. Failure to comply with such standards shall not
affect or invalidate the redemption of said Bonds being
redeemed.
Section 11. Form of Bonds. The Bonds issued in fully
registered form shall be substantially as follows:
REGISTERED REGISTERED
NUMBER $
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
COMBINED WATER AND SEWAGE SYSTEM REVENUE BOND
SERIES 1988
Interest Maturity
Rate Date
REGISTERED HOLDER:
PRINCIPAL AMOUNT:
Bond
Date CUSIP
December 1, 1988
DOLLARS
THE CITY OF SALINA, in the County of Saline, State of
Kansas (the "City"), for value received, hereby promises to pay
to the Registered Holder identified above, or registered
assigns, on the Maturity Date identified above, unless called
for redemption prior to maturity, the Principal Amount
identified above and to pay interest thereon at the Interest
Rate specified above from the most recent Interest Payment Date
to which interest has been paid in full or, if no interest has
been paid, from December 1, 1988, said interest being payable
semiannually on April 1 and October 1 in each year, beginning
April 1, 1989 (the "Interest Payment Dates").
AS PROVIDED in the Ordinance (the "Ordinance") of the
City authorizing the issuance of this Bond, interest on this
Bond will be paid on each Interest Payment Date by check or
draft to the person in whose name this Bond (or one or more
predecessor Bonds) is registered in the hereinafter referred to
Bond Register at the close of business on the fifteenth day
(whether or not a business day) of the month next preceding each
Interest Payment Date (the "Record Date") to the registered
owner hereof at such person's address as it appears in the Bond
Register. Interest not punctually paid will be paid as
otherwise provided in the Ordinance. The principal of this Bond
shall be payable by check or draft to the Registered Holder upon
presentation and surrender hereof at the principal office of the
Treasurer of the State of Kansas in the City of Topeka, Kansas.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS
BOND SET FORTH ON THE REVERSE HEREOF. SUCH PROVISIONS SHALL FOR
ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HEREIN.
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Kuhr -C.. P ling — Selina. Kansas
THIS BOND shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the
Ordinance until the Certificate of Authentication hereon shall
have been dated and executed by the Bons? Registrar.
IT IS HEREBY DECLARED AND CERTIFIED that all acts,
conditions and things required to be done and to exist precedent
to and in the issuance of the Bonds have been done and performed
and do exist in due and regular form and manner as required by
the constitution and laws of the State of Kansas.
IN WITNESS WHEREOF, the City has caused this Bond to
be executed by facsimile signatures of its Mayor and City Clerk
and a facsimile of its corporate seal to be hereto affixed and
this Bond to be dated December 1, 1988.
CITY OF SALINA, KANSAS
(facsimile)
Mayor
ATTEST:
(facsimile)
City Clerk
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within
mentioned Ordinance.
REGISTRATION DATE:
THE TREASURER OF THE STATE OF KANSAS
Bond Registrar and Paying Agent
By
State Treasurer's Registration Number: 0322-085-120188-274
[ON REVERSE SIDE]
FURTHER PROVISIONS
THIS BOND is one of an authorized series of Bonds of
the City designated "Combined Water and Sewage System Revenue
Bonds, Series 1988," aggregating the principal amount of
$3,000,000, issued for the purpose of repairing, altering,
extending, reconstructing, enlarging and improving the combined
water and sewage system, by the authority of and in full
compliance with the provisions, restrictions and limitations of
the Constitution and statutes of the State of Kansas, including
K.S.A. 12-856 to 12-869, inclusive, and all amendments thereof
and all other provisions of the laws of said State applicable
thereto.
THIS BOND and all interest hereon are special
obligations of the City to be paid by said City solely from the
revenues derived from the rates, fees or charges collected by
said City from the operation of its combined water and sewage
system as described in the Ordinance and not from any other fund
or source. The Bonds constitute a lien on such revenues. The
Bonds do not constitute general obligations of the City nor do
they constitute an indebtedness of the City within the meaning
of any constitutional or statutory provision, and the City is
under no obligation to levy any taxes to pay any of the
principal of or interest on the Bonds. The Bonds have been
authorized and issued under the provisions of the Ordinance to
which reference is made for a description of the covenants made
by the City with respect to the collection, segregation and
application of the revenues of the City's Water and Sewage
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11
1
Utility, the nature and extent of the security of such Bonds,
the rights, duties and obligations of the City with respect
thereto and the rights of the holders thereof. The Bonds are
junior and subordinate with respect to the payment of principal
and interest and in other respects to an issue of Combined Water
and Sewage System Revenue Bonds, Series of 1977, dated April 1,
1977, in the original principal amount of $3,000,000. The Bonds
stand on a parity with respect to the payment of principal,
redemption premium, if any, and interest from the revenues of
the City's combined water and sewage system and in all other
respects with an issue of Combined Water and Sewage System
Refunding Revenue Bonds, Series of 1984, dated June 15, 1984, in
the original principal amount of $2,770,000, and an issue of
Combined Water and Sewage System Revenue Bonds, Series of 1987,
dated October 1, 1987, in the original principal amount of
$2,650,000. The City may issue additional bonds payable from
the net revenues produced from the combined water and sewage
system of the City as provided in and subject to the
restrictions of the Ordinance and may provide that any such
additional bonds shall enjoy equality of lien on said net
revenues with the Bonds.
THIS BOND has been duly registered in the office of
the City Clerk of the City of Salina, Kansas, and in the office
of the Treasurer of the State of Kansas.
THE BONDS maturing on October 1, 1999, and thereafter,
at the option of the City, may be called for redemption and
payment prior to maturity, as a whole or in part, on October 1,
1998, or on any Interest Payment Date thereafter, at a
Redemption Price equal to 100% of the principal amount of the
bonds so redeemed and paid, plus accrued interest thereon to the
date fixed for redemption and payment. Bonds to be redeemed and
paid pursuant to the provisions described above shall be
redeemed in inverse order of maturity, Bonds of less than a full
maturity to be selected by the Bond Registrar in such manner as
it shall deem fair and appropriate.
IN THE EVENT any of the Bonds are called for
redemption and payment as aforesaid, written notice thereof will
be given by United States registered or certified mail mailed
not less than 30 days prior to the date fixed for redemption and
payment to each holder of Bonds to be redeemed. All bonds so
called for redemption will cease to bear interest on the
specified redemption date, provided funds are deposited with the
Paying Agent on such redemption date, and will no longer be
secured by the Ordinance and will not be deemed to be
outstanding under the provisions of the Ordinance. The failure
of the holder of any Bond called for redemption to receive
written notice mailed pursuant to the above provisions will not
invalidate or affect the redemption of such Bond.
THE PRINCIPAL of and interest (computed on the basis
of a 360 -day year of twelve 30 -day months) on this Bond are
payable in such coin or currency of the United States of America
as at the time of payment is legal tender for the payment of
public and private debts.
THIS BOND is negotiable and is transferable, as
provided in the Ordinance, only in the Bond Register at the
office of the Bond Registrar upon surrender of this Bond to the
Bond Registrar duly endorsed for transfer or accompanied by a
written instrument of transfer satisfactory to the Bond
Registrar duly executed by the Registered Holder hereof or his
attorney or legal representative, and thereupon a new Bond or
Bonds in the same aggregate principal amount shall be issued to
the transferee in exchange therefor subject to the conditions
provided in the Ordinance. The Bonds for each maturity are
issuable only in the form of fully registered bonds, without
coupons, in the denomination of $5,000 or any integral multiple
thereof. The Registered Holder of any Bond or Bonds may
surrender the same in exchange for an equal aggregate principal
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amount of Bonds of any authorized denomination in the manner and
subject to the conditions provided in the Ordinance. No service
charge shall be made for any such transfer or exchange, but,
prior to any transfer or exchange, the registered owner hereof
shall pay to the City or the Bond Registrar an amount sufficient
to reimburse it or them for any tax or other governmental charge
required to be paid with respect to such transfer or exchange.
The City, the Bond Registrar and the Paying Agent may deem and
treat the person in whose name this Bond is registered as the
absolute owner hereof for the purpose of receiving payment of,
or on account of, the principal hereof and interest due hereon
and for all other purposes. If the date for making any payment
of interest or principal occurs on a Saturday, Sunday or holiday
in the City of Topeka, Kansas, then such payment may be made on
the next succeeding business day with the same force and effect.
----------------------------------------------------------------
(FORM OF ASSIGNMENT)
BOND ASSIGNMENT
FOR VALUE RECEIVED the undersigned does (do) hereby
sell, assign and transfer to
(Name and Address)
(Social Security or Taxpayer Identifying No.)
the bond to which this assignment is affixed in the outstanding
principal amount of $ , standing in the name of the
undersigned on the books of the Treasurer of the State of
Kansas, Topeka, Kansas. The undersigned does (do) hereby
revocably constitute and appoint
attorney to transfer the said
bond, on the books of said Treasurer of the State of Kansas,
with full power of substitution in the premises.
Dated
Signature
(Sign Here Exactly as Name or Names
Appear on the Face of the Certificate)
Signature Guaranteed:
(Bank, Trust Company or Firm)
By
Authorized Officer
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FORM OF CITY CLERK'S CERTIFICATE)
STATE OF KANSAS )
) SS.
COUNTY OF SALINE )
I, the undersigned, City Clerk of the City of Salina,
Kansas, do hereby certify that this Bond has been duly
registered in my office according to law.
WITNESS my hand and official seal.
(FACSIMILE SEAL]
(facsimile)
City Clerk
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nn -Cox Printing— Bah— Kansas
(FORM OF STATE TREASURER'S CERTIFICATE)
OFFICE OF THE TREASURER, STATE OF KANSAS
I, JOAN FINNEY, Treasurer of the State of Kansas, do
hereby certify that a transcript of the proceedings leading up
to the issuance of this Bond has been filed in my office and
that this Bond was registered in my office according to law on
19
WITNESS my hand and official seal.
JOAN FINNEY
[FACSIMILE SEAL] Treasurer of the State of Kansas
By
Assistant State Treasurer
Section 12. Uncertificated Bonds. There will be no
uncertificated bonds.
Section 13. Disposition of 1988 Bond Proceeds. All
accrued interest and premium, if any, received from the sale of
the 1988 Bonds shall be credited to and deposited in the 1988
Principal and Interest Account hereinafter created by Section 15
of this Ordinance.
Section 14. Water and Sewage Fund. The City
covenants and agrees that so long as any of the 1988 Bonds
remain outstanding and unpaid all of the revenues derived by the
City from the operation of its Water and Sewage Utility,
including all revenues from improvements, extensions and
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There shall next be deposited in the 1988 Reserve
Account hereinafter created by Section 13 of this Ordinance, the
sum of $300,000 from the proceeds received from the sale of the
Bonds.
The remainder of the proceeds received from the sale
of the 1988 Bonds shall be deposited in a separate fund hereby
created in the treasury of the City to be known as the "Combined
Water and Sewage Utility Construction Fund of 1988" (herein
called the "Construction Fund") and shall be used by the City
for the sole purpose of paying the cost of the Project in
accordance with the plans and specifications therefor prepared
by the City's engineers heretofore approved by the governing
body of the City and on file in the office of the City Clerk,
including any alterations in or amendments to said plans and
specifications deemed advisable by the City's engineers and
approved by the governing body of the City.
Withdrawals from the Construction Fund shall be made
only on duly authorized and executed warrant or check therefor
accompanied by a certificate executed by the City's engineers
that such payment is being made for a purpose within the scope
of this Ordinance and that the amount of such payment represents
only the contract price of the property, equipment, labor,
materials or service being paid for, or if such payment is not
being made pursuant to an express contract, that such payment is
not in excess of the reasonable value thereof. Nothing
hereinbefore contained shall prevent the payment out of the
Construction Fund of all costs and expenses incident to the
issuance of the Bonds without a certificate from the City's
engineers.
Upon completion of the Project as hereinbefore
provided, any surplus remaining in the Construction Fund shall
be deposited in the 1988 Principal and Interest Account created
by Section 15 of this Ordinance.
Section 14. Water and Sewage Fund. The City
covenants and agrees that so long as any of the 1988 Bonds
remain outstanding and unpaid all of the revenues derived by the
City from the operation of its Water and Sewage Utility,
including all revenues from improvements, extensions and
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Ku�nCo� Pri nlng — Saii a, Kansas
(f) "Reserve Account for Combined Water and Sewage
System Refunding Revenue Bonds, Series 1984" (the
"1984 Reserve Account")
and the same are hereby ratified and confirmed, and in addition
to the accounts aforesaid, there were created and established by
the 1987 Ordinance of the City two separate accounts known
respectively as the
(g) "Principal and Interest Account for Combined
Water and Sewage System Revenue Bonds, Series of
1987" (the "1987 Principal and Interest
Account"), and
(h) "Reserve Account for Combined Water and Sewage
System Revenue Bonds, Series of 1987" (the "1987
Reserve Account")
and the same are hereby ratified and confirmed, and in addition
to the accounts aforesaid, there are hereby created and
established in the treasury of the City the following two
separate accounts
(i) "Principal and Interest Account for Combined
Water and Sewage System Revenue Bonds, Series
1988 (the "1988 Principal and Interest Account"),
and
(j) "Reserve Account for
System Revenue Bonds,
Reserve Account").
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Combined Water and Sewage
Series 1988 (the "1988
enlargements in and to the Water and Sewage Utility, will be
paid and deposited in the City's "Water and Sewage Fund" and
that said revenues will not be mingled with the other funds of
the City and shall be administered and used solely as
hereinafter in this Ordinance provided.
Section 15. Ratification and Creation of Funds and
Accounts. The establishment by the 1961 Ordinance of the City
of the two separate accounts known respectively as the
(a) "Combined Water and Sewage System Depreciation
and Emergency Replacement Account" (herein called
the "Depreciation and Emergency Replacement
Account"), and
(b) "Combined Water and Sewage System Extension and
Bond Retirement Account" (herein called the
"Extension and Bond Retirement Account")
be, and the same is, hereby ratified and confirmed, and in
addition to the accounts aforesaid there were created and
established by the 1977 Ordinance of the City two separate
accounts known respectively as the
(c) "Bond and Interest Account for Combined Water and
Sewage System Revenue Bonds, Series of 1977", and
(d) "Reserve Account for Combined Water and Sewage
System Revenue Bonds, Series of 1977"
and the same are hereby ratified and confirmed, and in addition
to the accounts aforesaid, there were created and established by
the 1984 Ordinance of the City two separate accounts known
respectively as the
(e) "Principal and Interest Account for Combined
Water and Sewage System Refunding Revenue Bonds,
Series of 1984" (the "1984 Principal and Interest
Account"), and
(f) "Reserve Account for Combined Water and Sewage
System Refunding Revenue Bonds, Series 1984" (the
"1984 Reserve Account")
and the same are hereby ratified and confirmed, and in addition
to the accounts aforesaid, there were created and established by
the 1987 Ordinance of the City two separate accounts known
respectively as the
(g) "Principal and Interest Account for Combined
Water and Sewage System Revenue Bonds, Series of
1987" (the "1987 Principal and Interest
Account"), and
(h) "Reserve Account for Combined Water and Sewage
System Revenue Bonds, Series of 1987" (the "1987
Reserve Account")
and the same are hereby ratified and confirmed, and in addition
to the accounts aforesaid, there are hereby created and
established in the treasury of the City the following two
separate accounts
(i) "Principal and Interest Account for Combined
Water and Sewage System Revenue Bonds, Series
1988 (the "1988 Principal and Interest Account"),
and
(j) "Reserve Account for
System Revenue Bonds,
Reserve Account").
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Combined Water and Sewage
Series 1988 (the "1988
Kinn -Gov Printing — Sa1 a. K.....
Section 16. Application of Moneys in Funds and
Accounts. Moneys paid and deposited in the "Water and Sewage
Fund" heretofore established by the City and hereinbefore
referred to shall be administered and disposed of by the City so
long as any of the 1988 Bonds remain outstanding, in the
following order, to wit:
(a) The City each month shall pay or make provision
for the payment of the reasonable and proper Operating Expenses
for the current month. No moneys in the Water and Sewage Fund
shall be used for the purpose of extending or enlarging the
City's Water and Sewage Utility, except as provided in paragraph
(g) of this Section 16.
(b) After paying or making provision for the payment
each month of the reasonable and proper expenses of operating
and maintaining the City's combined water and sewage system for
the current month, the City shall next pay or credit from time
to time from the Water and Sewage Fund to the Bond and Interest
Account for Combined Water and Sewage System Revenue Bonds,
Series of 1977, so long as any of the 1977 Bonds remain
outstanding, amounts (if any) at the time required to be paid or
credited by the provisions of the 1977 Ordinance.
(c) After making the payments and credits at the time
required to be made by the City under the provisions of
paragraphs (a) and (b) aforesaid the City shall pay or credit
from time to time from the Water and Sewage Fund to the Reserve
Account for Combined Water and Sewage System Revenue Bonds,
Series of 1977, so long as any of the 1977 Bonds remain
outstanding, any amounts at the time required to be paid or
credited by the provisions of the 1977 Ordinance.
(d) After making all payments and credits at the time
required to be made by the City under the provisions of
paragraphs (a), (b) and (c) aforesaid, the City shall next pay
or credit from the Water and Sewage Fund to the 1984 Principal
and Interest Account and the 1987 Principal and Interest Account
any amounts at the time required to be paid or credited to said
Account under the provisions of the 1984 Ordinance or the 1987
Ordinance, and at the same time such payments and credits are
made and on a parity therewith, the City shall pay or credit to
the 1988 Principal and Interest Account, to the extent necessary
to meet at the Stated Maturity thereof the interest on and
principal of the 1988 Bonds, the following amounts:
(i) Beginning on the first day of each month
from and after the delivery of the 1988 Bonds, and
continuing on the first day of each month thereafter
to and including March 1, 1989, an equal pro rata
portion of the amount of interest that will become
due on the 1988 Bonds on April 1, 1989, and beginning
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The accounts referred in (a) and (b) aforesaid shall be
maintained and administered by the City in accordance with the
provisions of the 1977 Ordinance, the 1984 Ordinance, the 1987
Ordinance and this Ordinance so long as any of the 1977 Bonds,
1984 Bonds, the 1987 Bonds or the 1988 Bonds remain outstanding
and unpaid. The accounts referred to in paragraphs (c) and (d)
aforesaid shall be maintained and administered in compliance
with the provisions of the 1977 Ordinance so long as any of the
1977 Bonds remain outstanding and unpaid. The accounts referred
to in paragraphs (e) and (f) aforesaid shall be maintained and
administered in compliance with the provisions of the 1984
Ordinance so long as any of the 1984 Bonds remain outstanding
and unpaid. The accounts referred to in paragraphs (g) and (h)
aforesaid shall be maintained and administered in compliance
with the provisions of the 1987 Ordinance so long as any of the
1987 Bonds remain outstanding and unpaid. The accounts referred
to in paragraphs (i) and (j) aforesaid shall be maintained and
administered by the City as hereinafter provided in this
Ordinance so long as any of the 1988 Bonds remain Outstanding.
Section 16. Application of Moneys in Funds and
Accounts. Moneys paid and deposited in the "Water and Sewage
Fund" heretofore established by the City and hereinbefore
referred to shall be administered and disposed of by the City so
long as any of the 1988 Bonds remain outstanding, in the
following order, to wit:
(a) The City each month shall pay or make provision
for the payment of the reasonable and proper Operating Expenses
for the current month. No moneys in the Water and Sewage Fund
shall be used for the purpose of extending or enlarging the
City's Water and Sewage Utility, except as provided in paragraph
(g) of this Section 16.
(b) After paying or making provision for the payment
each month of the reasonable and proper expenses of operating
and maintaining the City's combined water and sewage system for
the current month, the City shall next pay or credit from time
to time from the Water and Sewage Fund to the Bond and Interest
Account for Combined Water and Sewage System Revenue Bonds,
Series of 1977, so long as any of the 1977 Bonds remain
outstanding, amounts (if any) at the time required to be paid or
credited by the provisions of the 1977 Ordinance.
(c) After making the payments and credits at the time
required to be made by the City under the provisions of
paragraphs (a) and (b) aforesaid the City shall pay or credit
from time to time from the Water and Sewage Fund to the Reserve
Account for Combined Water and Sewage System Revenue Bonds,
Series of 1977, so long as any of the 1977 Bonds remain
outstanding, any amounts at the time required to be paid or
credited by the provisions of the 1977 Ordinance.
(d) After making all payments and credits at the time
required to be made by the City under the provisions of
paragraphs (a), (b) and (c) aforesaid, the City shall next pay
or credit from the Water and Sewage Fund to the 1984 Principal
and Interest Account and the 1987 Principal and Interest Account
any amounts at the time required to be paid or credited to said
Account under the provisions of the 1984 Ordinance or the 1987
Ordinance, and at the same time such payments and credits are
made and on a parity therewith, the City shall pay or credit to
the 1988 Principal and Interest Account, to the extent necessary
to meet at the Stated Maturity thereof the interest on and
principal of the 1988 Bonds, the following amounts:
(i) Beginning on the first day of each month
from and after the delivery of the 1988 Bonds, and
continuing on the first day of each month thereafter
to and including March 1, 1989, an equal pro rata
portion of the amount of interest that will become
due on the 1988 Bonds on April 1, 1989, and beginning
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nn -Go. Panting — Salina, Kansas
on April 1, 1989, and continuing on the first day of
each month thereafter, an amount not less than one-
sixth (1/6) of the interest that will become due on
the 1988 Bonds on the next succeeding Interest
Payment Date; and
(ii) Beginning on the first day of each month
from and after the delivery of the 1988 Bonds, and
continuing on the first day of each month thereafter
to and including September 1, 1989, an equal pro rata
portion of the principal amount of the 1988 Bonds
that will become due on October 1, 1989; and
beginning on October 1, 1989, and continuing on the
first day of each month thereafter, an amount not
less than one -twelfth (1/12) of the principal amount
of the 1988 Bonds that will become due on the next
succeeding Stated Maturity; and
(iii) On the first day of each month preceding a
month in which fees of the Bond Registrar and Paying
Agent are scheduled to become due, such amounts as may
be required to pay such fees.
All amounts paid and credited to the 1988 Principal
and Interest Account shall be used and expended by the City for
the sole purpose of paying the interest on and principal of the
1988 Bonds as and when the same become due and the fees of the
Paying Agent and Bond Registrar for acting hereunder.
If at any time the moneys in the Water and Sewage Fund
shall be insufficient to make in full the payments and credits
at the time required to be made by the City to the principal and
interest accounts established by the City to pay the principal
of and interest on the outstanding revenue bonds of the City,
including only the 1984 Bonds, the 1987 Bonds, the 1988 Bonds
and any other combined water and sewage system revenue bonds of
the City hereafter issued and standing on a parity with the 1988
Bonds, the available moneys in the Water and Sewage Fund shall
be divided among such principal and interest accounts in
proportion to the respective principal amounts of said series of
combined water and sewage system revenue bonds of the City at
the time outstanding which are payable from the moneys in said
principal and interest accounts.
(e) Prior to or concurrently with the issuance and
delivery of the 1988 Bonds, there shall be paid and credited to
the 1988 Reserve Account, from proceeds received from the sale
of the Bonds as provided in Section 13 of this Ordinance, the
sum of $300,000 (the "Reserve Requirement").
All amounts paid or credited to the 1988 Reserve
Account shall be used and expended solely to prevent any default
in the payment of interest on or principal of the Outstanding
1988 Bonds of the City if the moneys in the 1988 Principal and
Interest Account hereinbefore created are insufficient to pay
the interest on or principal of the 1988 Bonds as they become
due. No part of said 1988 Reserve Account shall ever be
expended or used by the City to call any 1988 Bonds for payment
prior to their ultimate maturity unless all of the Outstanding
1988 Bonds be called for payment and funds are available to pay
the same according to their terms. So long as the amount on
hand in the 1988 Reserve Account aggregates the Reserve
Requirement, no further payments into the 1988 Reserve Account
shall be required, but if the City shall ever be compelled to
use and expend any part of the 1988 Reserve Account for the
purpose of paying the interest on or principal of 1988 Bonds of
the City and such expenditure shall reduce the amount of the
1988 Reserve Account below the Reserve Requirement, then the
City, after making all payments or credits at the time required
to be made by the City under the provisions of paragraphs (a),
(b), (c) and (d) hereof, will thereafter, each month, pay or
credit on the first day of each month from the Water and Sewage
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KJM1n-Gov Panting — S111- Kansas
Fund to the 1984 Reserve Account and the 1987 Reserve Account
any amounts at the time required to be paid or credited to said
Accounts under the provisions of the 1984 Ordinance and the 1987
Ordinance, and, at the same time such payments or credits are
made and on a parity therewith, the City shall pay or credit
from the Water and Sewage Fund to the 1988 Reserve Account the
sum of $10,000 each month until the Reserve Account aggregates
the Reserve Requirement.
At no time shall the balance of monies on hand in the
1988 Bond Reserve Account exceed the sum of $300,000.
If at any time the moneys in the Water and Sewage Fund
shall be insufficient to make in full the payments and credits
at the time required to be made by the City to the bond reserve
accounts established by the City to protect the payment of the
outstanding combined water and sewage system revenue bonds of
the City, including only the 1984 Bonds, the 1987 Bonds, the
1988 Bonds and any other combined water and sewage system
revenue bonds of the City hereafter issued and standing on a
parity with the 1988 Bonds, the available moneys in the Water
and Sewage Fund shall be divided among such bond reserve
accounts in proportion to the respective principal amounts of
said series of combined water and sewage system revenue bonds of
the City at the time outstanding which are payable from the
moneys in such bond reserve accounts.
(f) The Combined Water and Sewage System Depreciation
and Emergency Replacement Account shall be maintained and
administered by the City so long as any of the City's 1988 Bonds
remain outstanding. After making all payments and credits at
the time required to be made by the City under the provisions of
paragraphs (a), (b), (c), (d) and (e) aforesaid, the City shall
next pay or credit from the Water and Sewage Fund to said
Depreciation and Emergency Replacement Account on the first day
of each month, a sum not less than $2,500 until said account
shall aggregate in cash and securities not less than the sum of
$350,000 (including any amounts required pursuant to the
provisions of the 1984 Ordinance). Except as hereinafter
provided, all amounts credited to said account shall be used by
the City, if no other funds are available therefor, for the
purpose of making emergency maintenance, repairs and
improvements in and to the City's Water and Sewage Utility and
keeping the same in good repair and working order so that the
Water and Sewage Utility may continue in effective and efficient
operation. If no other funds are available therefor, moneys in
said account may be used to pay the cost of operating and
maintaining the City's Water and Sewage Utility and for the
purpose of making major extensions or enlargements of said
system.
So long as said Depreciation and Emergency Replacement
Account aggregates not less than $350,000 (including any amounts
required pursuant to the provisions of the 1984 Ordinance), no
further payments into said account shall be required, but if the
City be compelled to use and expend any part of said account for
the purpose specified in the last preceding paragraph hereof,
and such use shall reduce the amount of said account below the
sum of $350,000 (including any amounts required pursuant to the
provisions of the 1984 Ordinance), then the City, after making
all payments or credits at the time required to be made by the
City under the provisions of paragraphs (a), (b), (c), (d) and
(e) hereof, will thereafter pay or credit from the Water and
Sewage Fund to said Depreciation and Emergency Replacement
Account all sums in said Water and Sewage Fund until said
Depreciation and Emergency Replacement Account aggregates
$350,000 (including any amounts required pursuant to the
provisions of the 1984 Ordinance).
(g) After all amounts required at the time to be paid
or credited by the City from the Water and Sewage Fund to the
accounts hereinbefore named in paragraphs (a) (b), (c), (d), (e)
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and (f) of this Section shall have been so paid or credited, and
if at the time the City shall not be in default in the
performance of any covenant or agreement contained in this
Ordinance, all moneys remaining in the Water and Sewage Fund
shall be credited monthly to the Extension and Bond Retirement
Account. Except as hereinafter provided, moneys in the
Extension and Bond Retirement Account shall be used solely for
the following purposes as determined from time to time by the
governing body of the City:
(i) Paying the cost of operation, maintenance and
repair of the City's Water and Sewage Utility to
the extent that may be necessary after the
application of the moneys held in the "Water and
Sewage Fund" under the provisions of paragraph
(a) of this Section.
If such engineers shall certify that in their opinion
there is an excess in said account, such excess moneys in the
Extension and Bond Retirement Account shall be used by the City
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(ii) Anticipating payments into or increasing the
amounts of the accounts referred to in paragraphs
(b), (c), (d) and (f) of this Section, or any of
them, or establishing or increasing the amount of
any principal and interest account or principal
reserve account created by the City for the
payment of any combined water and sewage system
revenue bonds of the City hereafter issued under
the conditions hereinafter specified.
(iii) Paying the cost of improving, extending or
enlarging the City's Water and Sewage Utility as
hereinafter in this Section 16(g) provided.
(iv) Redeeming or paying prior to maturity combined
water and sewage system revenue bonds of the City
but only as hereinafter in this Section 16(g)
provided.
The City covenants and agrees that it will not expend
or permit the expenditure of any moneys in the Extension and
Bond Retirement Account for any extensions, improvements or
enlargements of the City's combined water and sewage system
which are not economically sound or which will not properly and
advantageously contribute to the efficient and economical
conduct of the operation and business of said system as
evidenced by a written report and recommendation of the
superintendent or manager of said system, nor will it make any
such extension, improvement or enlargement costing in excess of
$100,000 for any single purchase or improvement without securing
from the City's Consulting Engineers a report and recommendation
with respect thereto, nor will it make such purchase or
improvement except in accordance with such report and
recommendation.
At least once in every two years the City's Consulting
Engineers hereinafter referred to in Section 20(d) of this
Ordinance, after making their examination and report on the
condition, operation and needs of the City's Water and Sewage
Utility as provided in said Section 20(d), shall, by written
instrument filed in the office of the City Clerk, and sent by
such engineers by United States registered mail to the
Underwriters, certify whether or not in their opinion the moneys
in the Extension and Bond Retirement Account are in excess of
the amount reasonably required to be maintained in such account
for extending, improving or enlarging the City's Water and
Sewage Utility, and, if so, the amount of such excess; provided,
however, the aforesaid report of the City's Consulting Engineers
shall not be required from and after the time that all of the
1977 Bonds, the 1978 Bonds, the 1984 Bonds and the 1987 Bonds
are either defeased or no longer outstanding.
If such engineers shall certify that in their opinion
there is an excess in said account, such excess moneys in the
Extension and Bond Retirement Account shall be used by the City
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K�M1n_Cox Priming — Salina, Hansas
and (f) of this Section shall have been so paid or credited, and
(ii) Anticipating payments into or increasing the
amounts of the accounts referred to in paragraphs
(b), (c), (d) and (f) of this Section, or any of
them, or establishing or increasing the amount of
any principal and interest account or principal
reserve account created by the City for the
payment of any combined water and sewage system
revenue bonds of the City hereafter issued under
the conditions hereinafter specified.
(iii) Paying the cost of improving, extending or
enlarging the City's Water and Sewage Utility as
hereinafter in this Section 16(g) provided.
(iv) Redeeming or paying prior to maturity combined
water and sewage system revenue bonds of the City
but only as hereinafter in this Section 16(g)
provided.
The City covenants and agrees that it will not expend
or permit the expenditure of any moneys in the Extension and
Bond Retirement Account for any extensions, improvements or
enlargements of the City's combined water and sewage system
which are not economically sound or which will not properly and
advantageously contribute to the efficient and economical
conduct of the operation and business of said system as
evidenced by a written report and recommendation of the
superintendent or manager of said system, nor will it make any
such extension, improvement or enlargement costing in excess of
$100,000 for any single purchase or improvement without securing
from the City's Consulting Engineers a report and recommendation
with respect thereto, nor will it make such purchase or
improvement except in accordance with such report and
recommendation.
At least once in every two years the City's Consulting
Engineers hereinafter referred to in Section 20(d) of this
Ordinance, after making their examination and report on the
condition, operation and needs of the City's Water and Sewage
Utility as provided in said Section 20(d), shall, by written
instrument filed in the office of the City Clerk, and sent by
such engineers by United States registered mail to the
Underwriters, certify whether or not in their opinion the moneys
in the Extension and Bond Retirement Account are in excess of
the amount reasonably required to be maintained in such account
for extending, improving or enlarging the City's Water and
Sewage Utility, and, if so, the amount of such excess; provided,
however, the aforesaid report of the City's Consulting Engineers
shall not be required from and after the time that all of the
1977 Bonds, the 1978 Bonds or the 1984 Bonds are either defeased
or no longer outstanding.
If such engineers shall certify that in their opinion
there is an excess in said account, such excess moneys in the
Extension and Bond Retirement Account shall be used by the City
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if at the time
the City shall not be in default in the
performance of
any covenant or agreement contained in this
Ordinance, all
moneys remaining in the Water and Sewage Fund
shall be credited
monthly to the Extension and Bond Retirement
Account. Except
as hereinafter provided, moneys in the
Extension and
Bond Retirement Account shall be used solely for
the following
purposes as determined from time to time by the
governing body
of the City:
(i)
Paying the cost of operation, maintenance and
repair of the City's Water and Sewage Utility to
the extent that may be necessary after the
application of the moneys held in the "Water and
Sewage Fund" under the provisions of paragraph
(a) of this Section.
(ii) Anticipating payments into or increasing the
amounts of the accounts referred to in paragraphs
(b), (c), (d) and (f) of this Section, or any of
them, or establishing or increasing the amount of
any principal and interest account or principal
reserve account created by the City for the
payment of any combined water and sewage system
revenue bonds of the City hereafter issued under
the conditions hereinafter specified.
(iii) Paying the cost of improving, extending or
enlarging the City's Water and Sewage Utility as
hereinafter in this Section 16(g) provided.
(iv) Redeeming or paying prior to maturity combined
water and sewage system revenue bonds of the City
but only as hereinafter in this Section 16(g)
provided.
The City covenants and agrees that it will not expend
or permit the expenditure of any moneys in the Extension and
Bond Retirement Account for any extensions, improvements or
enlargements of the City's combined water and sewage system
which are not economically sound or which will not properly and
advantageously contribute to the efficient and economical
conduct of the operation and business of said system as
evidenced by a written report and recommendation of the
superintendent or manager of said system, nor will it make any
such extension, improvement or enlargement costing in excess of
$100,000 for any single purchase or improvement without securing
from the City's Consulting Engineers a report and recommendation
with respect thereto, nor will it make such purchase or
improvement except in accordance with such report and
recommendation.
At least once in every two years the City's Consulting
Engineers hereinafter referred to in Section 20(d) of this
Ordinance, after making their examination and report on the
condition, operation and needs of the City's Water and Sewage
Utility as provided in said Section 20(d), shall, by written
instrument filed in the office of the City Clerk, and sent by
such engineers by United States registered mail to the
Underwriters, certify whether or not in their opinion the moneys
in the Extension and Bond Retirement Account are in excess of
the amount reasonably required to be maintained in such account
for extending, improving or enlarging the City's Water and
Sewage Utility, and, if so, the amount of such excess; provided,
however, the aforesaid report of the City's Consulting Engineers
shall not be required from and after the time that all of the
1977 Bonds, the 1978 Bonds or the 1984 Bonds are either defeased
or no longer outstanding.
If such engineers shall certify that in their opinion
there is an excess in said account, such excess moneys in the
Extension and Bond Retirement Account shall be used by the City
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Kinn -Cox ting — Salina, Kansas
J
1
1
from time to time for the purpose of redeeming and paying prior
to maturity any of the Bonds of the City herein authorized if
any of such Bonds be subject to redemption, or, at the option of
the City, for purchasing an escrow comprised entirely of direct
obligations of the United States Government to provide for
payment of the Bonds or for purchasing any of the Bonds herein
authorized in the open market at the lowest price at which such
bonds may be purchased not exceeding the call price, or, if none
of the Bonds herein authorized is at the time subject to
redemption, then for the purpose of purchasing such Bonds in the
open market at the lowest price at which such bonds may be
purchased; provided, however, that if the City in conformity
with the provisions hereinafter contained shall hereafter issue
one or more series of its combined water and sewage system
revenue bonds which stand on a parity with the bonds herein
authorized, moneys in the Extension and Bond Retirement Account
available for the redemption or purchase of bonds shall be
divided among and applied to the redemption or purchase of bonds
of the respective series of combined water and sewage system
revenue bonds at the time outstanding in proportion to the total
principal amount of bonds of said respective series then
outstanding, whether or not the bonds of any series are at the
time subject to redemption. Bonds so redeemed -or purchased
shall be cancelled.
Section 17. Deficiency in Payments or Credits into
Funds or Accounts. If at any time the revenues derived by the
City from the operation of its Water and Sewage Utility shall be
insufficient to make any payment or credit on the date or dates
hereinbefore specified, the City shall make good the amount of
such deficiency by making payments or credits out of the first
available revenues thereafter received by the City from the
operation of its Water and Sewage Utility, such payments and
credits being made and applied in the order hereinbefore
specified in Section 16 hereof.
Section 18. Use of Other Accounts to Pay Bonds and
Interest. If at any time the moneys in the 1988 Principal and
Interest Account and in the 1988 Reserve Account are not
sufficient to pay the principal of and interest on the Bonds as
and when the same become due, then the amount of such deficiency
shall be made up by transfer of moneys from other funds and
accounts hereinbefore referred to in the following order:
First, from the Extension and Bond Retirement Account, secondly
from the Depreciation and Emergency Replacement Account, and
thirdly from moneys held in the Water and Sewage Fund, provided,
however, that there shall always remain in the Water and Sewage
Fund an amount sufficient to pay the reasonable and proper
expenses of operating and maintaining the City's Water and
Sewage Utility during the next succeeding period of thirty days.
Section 19. Investments. Any moneys held in any fund
or account which are not immediately needed for the purposes of
such fund or account may be invested by the City in direct
obligations of the United States Government or in any other
investment permitted by law; provided, however, that no such
investment shall be made for a period extending longer than to
the date when the moneys invested may be needed for the purpose
for which such fund or account was created. Cash moneys in each
of the funds and accounts herein created or established shall be
deposited in a bank or banks in the City of Salina, Kansas,
which are members of the Federal Deposit Insurance Corporation,
and all such bank deposits shall be adequately secured by the
banks holding such deposits. Except as to interest accumulated
in the Bond and Interest Account and in the Reserve Account
relating to the 1977 Bonds, which interest shall be deposited in
the escrow account for the 1977 Bonds, all interest on any
investments held in any fund or account created by or referred
to in this Ordinance shall accrue to and become a part of such
fund or account, except that interest on investments in the 1988
Reserve Account and interest on investments in the Depreciation
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hn-Cox Panting — Salina, Kansas
1
1
and Emergency Replacement Account if the City shall not be in
default in making any payment into said accounts at the time
required to be made by the provisions of Section 16, shall
immediately be paid and credited to the Water and Sewage Fund
and used and applied for the purposes and in the order
hereinbefore specified in Section 16 of this Ordinance. In
determining the amount held in any fund or account under any of
the provisions of this Ordinance, obligations in which moneys
are invested shall be valued at the market value thereof.
Section 20. Particular Covenants of the City. The
City covenants with each of the purchasers and owners of any of
the Bonds that so long as any of said Bonds remain outstanding
and unpaid:
(a) Rates. The City will fix, establish and maintain
rates, fees and other charges for the sale of water and sewage
services and commodities of the Water and Sewage Utility as
shall be required to provide Revenues at least sufficient in
each fiscal year to pay: (i) Operating Expenses during such
fiscal year, including reserves, if any, provided for in the
annual budget for such fiscal year; (ii) an amount equal to at
least 125% of the Aggregate Debt Service for such fiscal year;
(iii) an amount, if any, to be paid during such fiscal year into
the 1988 Reserve Account; (iv) to the extent not otherwise
provided for, an amount equal to debt service on the 1977 Bonds
for such fiscal year; (v) an amount, if any, to be paid into the
reserve account for the 1977 Bonds and into the Depreciation and
Emergency Replacement Account during such fiscal year; and (vi)
any and all charges or liens whatsoever payable out of Revenues
during such fiscal year.
(b) No Free Service; Service to City. None of the
facilities or services afforded by the Water and Sewage Utility
will be furnished to any user without a reasonable charge being
made therefor. The City will require the prompt payment of
accounts and will discontinue water and sewage service to any
customer delinquent in the payment of his account for a period
which shall not exceed sixty (60) days. The City will pay
monthly into the Water and Sewage Fund for the water and sewage
service furnished the City in accordance with effective
applicable rates, fees and charges.
(c) Good Repair. The City will maintain in good
repair and working order the City's Water and Sewage Utility and
will operate the same in an efficient manner and at reasonable
cost.
(d) Engineering Report. At least once in every two
years the City will employ Consulting Engineers and will cause
such Consulting Engineers to make an examination and report on
the condition and operation of the City's Water and Sewage
Utility, such report to include recommendations as to any
changes in such operation deemed desirable. Such report shall
also make reference to any unusual or extraordinary items of
maintenance and repair and any extensions or improvements that
may be needed in the ensuing year. A copy of each such report
will be filed in the office of the City Clerk and duplicate
copies thereof shall be mailed promptly to the Underwriters.
(e) Disposal of Property. The City will not
mortgage, pledge or otherwise encumber the Water and Sewage
Utility or any part thereof or any improvement, extension or
enlargement thereof, nor will they sell, lease or otherwise
dispose of said Water and Sewage Utility or any material part
thereof, provided, however, that the City may dispose of any
property which has become obsolete, nonproductive or otherwise
unusable to the advantage of the City. Any cash proceeds
derived from the sale of such property shall be used by the City
to improve, extend or enlarge the City's Water and Sewage
Utility.
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Kuhn -Cox P ling — Sli , Kansas
(f) Insurance. The City will carry and maintain a
reasonable amount of all-risk insurance upon the properties
forming a part of the Water and Sewage Utility insofar as they
are of an insurable nature, the amount of such insurance being
such amount as would normally be insured by a private
corporation engaged in a similar type of business. In the event
of loss or damage, the City, with all reasonable dispatch, will
use the proceeds of such insurance in reconstructing and
replacing the property damaged or destroyed, or, if such
reconstruction or replacement be unnecessary, then in redeeming
or purchasing outstanding bonds of the City, such redemption or
purchase being made in accordance with the provisions of the
Ordinance authorizing the issuance of the bonds. The City in
operating the Water and Sewage Utility will carry and maintain
public liability and workmen's compensation insurance in such
amounts as would normally be maintained by a private corporation
engaged in a similar type of business, and the proceeds derived
from any such policies shall be used in paying the claims on
account of which such proceeds were received, provided, however,
that the City may elect to accept the provisions of the
Workmen's Compensation Act of the State of Kansas as authorized
by K.S.A. 44-505 and any amendments thereto hereafter enacted,
and, in such event, may elect to carry its own risk in
accordance with the provisions of the statutes of the State of
Kansas. The cost of all insurance referred to in this paragraph
(f) shall be paid as an Operating Expense out of the revenues of
the City's Water and Sewage Utility.
(g) Books and Records; Annual Audit. The City will
install and maintain proper books, records and accounts
(entirely separate from all other records and accounts of the
City) in which complete and correct entries will be made of all
dealings and transactions of or in relation to the properties,
business and affairs of the Water and Sewage Utility of the
City. Such accounts shall show the amount of revenue received
from said Water and Sewage Utility, the application of such
revenue, and all financial transactions in connection therewith.
Said books shall be kept by the City according to standard
accounting practices as applicable to the operation of water and
sewage utilities. The City will operate the Water and Sewage
Utility on the basis of a fiscal year beginning on January 1st
and ending on December 31st. Annually, as soon as possible
following the close of each fiscal year, the City will cause an
audit to be made by a competent firm of certified public
accountants experienced in public utility accounting of the
accounts of its Water and Sewage Utility for the preceding
fiscal year. In addition to such matters as are customarily
included in the audit report, the accountants shall, without
limiting the generality of the foregoing, furnish to the City
separately a compiled statement of the number of customers
served, the amount and character of all insurance carried and a
statement and summary of the accountants' recommendations as to
the City's practices and procedures of water and sewage system
operations. Within thirty (30) days after the completion of
each such audit, said accountants shall file a copy thereof in
the office of the City Clerk and shall forward copies of such
audit to the Underwriters.
If such audit shall disclose that proper provision has
not been made for all of the requirements of the law under which
the Bonds herein authorized are issued, and of this Ordinance,
the City covenants and agrees that it will promptly proceed to
cause to be charged for the services rendered by the City's
Water and Sewage Utility rates which will adequately provide for
such requirements.
(h) Right to Inspect. The Holder of any of the Bonds
of the City herein authorized shall have the right at all
reasonable times to inspect the Water and Sewage Utility and all
records, accounts and data relating thereto, and any such Holder
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Kl— Gl. P-11, — Saline, Kenses
shall be furnished by the City all such information concerning
said Water and Sewage Utility and the operation thereof which he
may reasonably request.
(i) Operation and Maintenance. The City will
punctually perform all duties and obligations with respect to
the operation and maintenance of the Water and Sewage Utility,
including all improvements, extensions and enlargements thereof,
now or hereafter imposed upon the City and by the Constitution
and laws of the State of Kansas, and by the provisions of this
Ordinance.
Section 21. Additional Bonds. The City of Salina,
Kansas, hereby covenants and agrees that so long as any of the
Bonds herein authorized remain outstanding and unpaid, said City
will not issue any additional bonds or other obligations payable
out of the Revenues of its Water and Sewage Utility which have a
claim on Revenues superior to the Bonds and that it will not
issue any such additional bonds or obligations which stand on a
parity or equality with the Bonds herein authorized unless all
of the following conditions are met:
(a) The issuance of the additional bonds shall be
authorized or permitted under the laws of the State of Kansas.
(b) Either (i) Revenues Available for Debt Service of
any 12 consecutive calendar months out of the 24 calendar months
next preceding the issuance of such additional bonds are not
less than 1.25 times the maximum Aggregate Debt Service for any
succeeding fiscal year (excluding the year of final maturity of
any series of bonds) on all bonds which will be outstanding
immediately after the issuance of the proposed additional bonds
or (ii) the estimated Revenues Available for Debt Service for
the fiscal year immediately following the year in which the
project, the cost of construction of which is being financed by
such additional bonds, is to be in commercial operation are not
less than 1.25 times the maximum Aggregate Debt Service for any
succeeding fiscal year (excluding the year of final maturity of
any series of bonds) on all bonds which are outstanding in such
fiscal year.
Prior to the issuance of any additional bonds the City
shall obtain a certificate of an Authorized Officer evidencing
full compliance with the provisions of clause (i) of paragraph
(b) of this Section or a certificate of the Consulting Engineers
evidencing full compliance with the provisions of clause (ii) of
paragraph (b) of this Section, as the case may be.
In determining the amount of Revenues Available for
Debt Service for the purposes of (i) above, the Authorized
Officer of the City may adjust the Revenues Available for Debt
Service by adding thereto, in the event any adjustment of rates
with respect to the Water and Sewage Utility shall have become
effective subsequent to the beginning of the 12 -month period
selected pursuant to (i) above, an estimate made by an
Authorized Officer of the City of such additional Revenues
Available for Debt Service for such 12 -month period which would
have resulted had such rate adjustment been in effect for the
entire period.
In determining the amount of estimated Revenues
Available for Debt Service for the purpose of (ii) above, the
Consulting Engineers may adjust the estimated Revenues Available
for Debt Service by adding thereto any estimated increase in
revenue resulting from any increase in water and sewer rates
which, in the opinion of the Consulting Engineers, are
economically feasible and reasonably considered necessary based
on projected operations of the Water and Sewage Utility.
Notwithstanding the restrictions upon the issuance of
additional bonds set out above, additional bonds may be issued
if it is necessary in the opinion of the Consulting Engineers to
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Kinn -Cox Pr�ntinq — Sabina, Kansas
Section 22. Tax Matters. The City will comply with
all applicable provisions of the Internal Revenue Code of 1986
(the "Code"), including Section 103 thereof, and the regulations
of the Treasury Department thereunder, from time to time
proposed or in effect, in order to maintain the exclusion from
gross income for purposes of federal income taxation of the
interest on the Bonds.
The City covenants and agrees that it will use the
proceeds of the Bonds as soon as practicable and with all
reasonable dispatch for the purpose for which the Bonds are
issued as hereinbefore set forth, and that no part of the
proceeds of the Bonds shall be invested in any securities,
obligations or other investments except for the temporary period
pending such use nor used, at any time, directly or indirectly,
in a manner which, if such use had been reasonably anticipated
on the date of issuance of the Bonds, would have caused any of
the Bonds to be or become "arbitrage bonds" within the meaning
of Section 103(b)(2) or Section 148 of the Code and the
regulations of the Treasury Department thereunder proposed or in
effect at the time of such use and applicable to obligations
issued on the date of issuance of the Bonds.
The City represents and warrants that (i) it is a
governmental unit under Kansas law with general taxing powers,
(ii) none of the Bonds is a private activity bond as defined in
Section 141 of the Code, (iii) 95% or more of the net proceeds
of the Bonds will be used for local governmental activities of
the City and (iv) the aggregate face amount of all tax-exempt
bonds (other than private activity bonds and current refundings
of outstanding obligations) issued by the City (and all
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repair any damage or loss to the Water and Sewage Utility if the
Water and Sewage Utility has been destroyed or damaged by
disaster to such an extent that it cannot be operated or if it
is necessary to keep the Water and Sewage Utility in good
operating condition.
(c) The City shall not be in default in making any
payments at the time required to be made by it into the
respective funds and accounts created or established by this
Ordinance.
Additional bonds of the City issued under the
conditions hereinbefore in this section set forth shall stand on
a parity with the Bonds herein authorized and shall enjoy
complete equality of lien on and claim against the Revenues of
the City's Water and Sewage Utility with the Bonds herein
authorized, and the City may make equal provision for paying
said Bonds and the interest thereon out of the Water and Sewage
Fund and may likewise provide for the creation of reasonable
reserve accounts out of moneys in said Water and Sewage Fund.
Nothing in this section contained shall prohibit or
restrict the right of the City to issue additional water and
sewage system revenue bonds or other revenue obligations for the
purpose of reconstructing, altering, repairing, improving,
extending or enlarging the City's Water and Sewage Utility and
to provide that the principal of and interest on said revenue
bonds or obligations shall be payable out of the revenues of the
City's Water and Sewage Utility, provided that such additional
revenue bonds or obligations shall be junior and subordinate to
the Bonds so that if at any time the City shall be in default in
paying either interest on or principal of the Bonds the City
shall make no payments of either principal of or interest on
said junior and subordinate revenue bonds or obligations until
said default or defaults be cured. In the event of the issuance
of any such junior and subordinate revenue bonds or obligations,
the City, subject to the provisions aforesaid, may make
provision for paying the principal of and interest on said
revenue bonds or other revenue obligations out of moneys in the
Water and Sewage Fund.
Section 22. Tax Matters. The City will comply with
all applicable provisions of the Internal Revenue Code of 1986
(the "Code"), including Section 103 thereof, and the regulations
of the Treasury Department thereunder, from time to time
proposed or in effect, in order to maintain the exclusion from
gross income for purposes of federal income taxation of the
interest on the Bonds.
The City covenants and agrees that it will use the
proceeds of the Bonds as soon as practicable and with all
reasonable dispatch for the purpose for which the Bonds are
issued as hereinbefore set forth, and that no part of the
proceeds of the Bonds shall be invested in any securities,
obligations or other investments except for the temporary period
pending such use nor used, at any time, directly or indirectly,
in a manner which, if such use had been reasonably anticipated
on the date of issuance of the Bonds, would have caused any of
the Bonds to be or become "arbitrage bonds" within the meaning
of Section 103(b)(2) or Section 148 of the Code and the
regulations of the Treasury Department thereunder proposed or in
effect at the time of such use and applicable to obligations
issued on the date of issuance of the Bonds.
The City represents and warrants that (i) it is a
governmental unit under Kansas law with general taxing powers,
(ii) none of the Bonds is a private activity bond as defined in
Section 141 of the Code, (iii) 95% or more of the net proceeds
of the Bonds will be used for local governmental activities of
the City and (iv) the aggregate face amount of all tax-exempt
bonds (other than private activity bonds and current refundings
of outstanding obligations) issued by the City (and all
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Ku C.. Printing — Salina, Kansas
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subordinate entities thereof) during the calendar year 1988 is
not reasonably expected to exceed $5,000,000. The City hereby
covenants that the City and all its subordinate entities will
not issue in excess of $5,000,000 of tax-exempt bonds (including
the Bonds but excluding private activity bonds and current
refunding of outstanding obligations) during the calendar year
1988 without first obtaining an opinion of nationally recognized
counsel in the area of municipal finance that the excludability
of the interest on the Bonds from gross income for federal tax
purposes will not be adversely affected.
The City hereby designates the Bonds as "qualified
tax-exempt obligations" as defined in Section 265(b)(3)(B) of
the Code. The aggregate face amount of all tax-exempt
obligations (excluding private activity bonds other than
qualified 501(c)(3) bonds) issued or to be issued by the City
(and all subordinate entities thereof) during calendar year 1988
is not reasonably expected to exceed $10,000,000. The City
hereby covenants that the City and all its subordinate entities
will not issue in excess of $10,000,000 of qualified tax-exempt
obligations (including the Bonds but excluding private activity
bonds other than qualified 501(c)(3) bonds) during the calendar
year 1988 without first obtaining an opinion of nationally
recognized counsel in the area of municipal finance that the
designation of the Bonds as "qualified tax-exempt obligations"
will not be adversely affected.
Section 23. Amendments. The provisions of the Bonds
authorized by this Ordinance and the provisions of this
Ordinance may be modified at any time by the City with the
written consent of the Holders of not less than sixty-six and
two-thirds percent (66 2/3%) in aggregate principal amount of
the Bonds at the time Outstanding; provided, however, that no
such modification or amendment shall permit or be construed as
permitting (a) the extension of the maturity or the principal of
any of the Bonds, or the extension of the maturity of any
interest on any Bonds, or (b) a reduction in the principal
amount of any Bonds or the rate of interest thereon, or (c) a
reduction in the aggregate principal amount of Bonds the consent
of the Holders of which is required for any such amendment or
modification. Any provision of the Bonds or of this Ordinance
may, however, be modified or amended in any respect with the
written consent of the Holders of all of the Bonds then
Outstanding. Amendments to this Ordinance which correct errors
or which add to or supplement the security of the Holders of the
Bonds may be adopted by the City without the consent of such
Holders. Every amendment or modification of a provision of the
Bonds or of this Ordinance to which the written consent of the
Holders is given as above provided shall be expressed in an
ordinance and shall be deemed to be a part of this Ordinance.
It shall not be necessary to note on any of the Outstanding
Bonds any reference to such amendment or modification, if any.
A certified copy of every such amendatory or supplemental
ordinance, if any, and a certified copy of this Ordinance shall
always be kept on file in the office of the City Clerk and shall
be made available for inspection by the Holder of any Bond or
prospective purchaser or Holder of any Bond authorized by this
Ordinance, and upon payment of the reasonable cost of preparing
the same, a certified copy of any such amendatory or
supplemental ordinance or of this Ordinance will be sent by the
City Clerk to any such Holder or prospective bondholder.
Section 24. Acceleration in the Event of Default.
The City agrees that it shall default in the payment of the
principal of or interest on any of its Bonds as the same shall
become due and such default shall continue for a period of
thirty (30) days, or if the City or its governing body or any of
the officers, agents or employees thereof shall fail or refuse
to comply with any of the provisions of this Ordinance or of the
statutes of the State of Kansas, then, at any time thereafter
and while such default shall continue, the Holders of twenty-
five percent (25%) of the amount of the Bonds then Outstanding
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Kuhn-C- Printing — Salina. Kansas
may, by written notice to the City filed in the office of the
City Clerk or delivered in person to said City Clerk, declare
the principal of all Bonds then Outstanding to be due and
payable immediately, and upon any such declaration given as
aforesaid, all of said Bonds shall become and be immediately due
and payable, anything in this Ordinance or in said Bonds
contained to the contrary notwithstanding. This provision,
however, is subject to the condition that if at any time after
the principal of said Bonds shall have been so declared to be
due and payable, all arrears of interest upon all of said
Outstanding Bonds, except interest accrued but not yet due on
such Bonds, and all arrears of principal upon all of said Bonds
shall have been paid in full, and all other defaults, if any, by
the City under the provisions of this Ordinance and under the
provisions of the statutes of the State of Kansas shall have
been cured, then, and in every such case, the Holders of a
majority in amount of the Bonds then Outstanding, by written
notice to the City given as hereinbefore specified, may rescind
and annul such declaration and its consequences, but no such
rescission or annulment shall extend to or affect any subsequent
default or impair any rights consequent thereon.
Section 25. Enforcement. The provisions of this
Ordinance, including the covenants and agreements hereinbefore
contained, shall constitute a contract between the City and the
Holders of the Bonds, and the Holder or Holders of not less than
ten percent (10%) of the Bonds at the time Outstanding shall
have the right, for the equal benefit and protection of all
Holders of Bonds similarly situated:
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(a) By mandamus or other suit, action or proceeding
at law or in equity to enforce his or their rights against the
City and its officers, agents and employees, and to require and
compel the City and its officers, agents and employees to
perform all duties and obligations required by the provisions of
this Ordinance or by the Constitution and laws of the State of
Kansas.
(b) By suit, action or other proceeding in equity or
at law to require the City, its officers, agents and employees
to account as if they were the trustees of an express trust.
(c) By suit, action or other proceeding in equity or
at law to enjoin any acts or things which may be unlawful or in
violation of the rights of the Holders of the Bonds.
Nothing contained in this Ordinance, however, shall be
construed as imposing on the City any duty or obligation to levy
any taxes either to meet any obligations incurred herein or to
pay the principal of or interest on the Bonds.
No remedy conferred hereby upon any holder of the
Bonds herein authorized is intended to be exclusive of any other
remedy, but each such remedy is cumulative and in addition to
every other remedy and may be exercised without exhausting and
without regard to any other remedy conferred hereby. No waiver
of any default or breach of duty or contract by the Holder of
any Bond shall extend to or affect any subsequent default or
breach of duty or contract or shall impair any rights or
remedies thereon. No delay or omission of the Holder to
exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a
waiver of any such default or acquiescence therein. Every
substantive right and every remedy conferred upon the Holders of
the Bonds may be enforced and exercised from time to time and as
often as may be deemed expedient. In case any suit, action or
proceeding to enforce any right or exercise any remedy shall be
brought or taken and then discontinued or abandoned, or shall be
determined adversely to the Holders of the Bonds, then, and in
every such case, the City and the Holders of the Bonds shall be
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n -Cox Panting — Salina, Kenses
restored to their former positions and rights and remedies as if
no such suit, action or other proceeding had been brought or
taken.
Section 28. Severability. If any part of this
Ordinance, whether large or small, shall be held invalid, the
invalidity thereof shall not affect the other provisions of this
Ordinance.
Section 29. Effective Date. This Ordinance shall
take effect and be in full force from and after its passage and
publication once in the official City newspaper.
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Section 26. Defeasance. When all of the 1988 Bonds
shall have been paid and discharged, then the requirements
contained herein and the pledge of Revenues made hereunder and
all other rights granted hereby shall cease and determine.
Series 1988 Bonds shall be deemed to have been paid and
discharged within the meaning of this Ordinance if there shall
have been deposited with the Paying Agent, or with a Kansas bank
having full trust powers, at or prior to the maturity or
redemption date of such 1988 Bonds, in trust for and irrevocably
appropriated thereto, moneys and/or direct obligations of, or
obligations the principal of and interest on which are
guaranteed by, the United States of America, which, together
with the interest to be earned on such investments, will be
sufficient for the payment of the principal of such 1988 Bonds,
the redemption premium thereon, if any there be, and interest
accrued to the date of maturity or redemption, as the case may
be, or if default in such payment shall have occurred on such
date, then to the date of the tender of such payments; provided,
however, always that if any such 1988 Bonds shall be redeemed
prior to the maturity thereof, the City shall have elected to
redeem such 1988 Bonds and notice of such redemption shall have
been given. Any moneys and obligations which at any time shall
be deposited with said Paying Agent or Kansas bank by or on
behalf of the City, for the purpose of paying and discharging
any of the 1988 Bonds, shall be and are hereby assigned,
transferred and set over to such Paying Agent or Kansas bank in
trust for the respective Holders of the 1988 Bonds, and such
moneys shall be and are hereby irrevocably appropriated to the
payment and discharge thereof. All moneys deposited with said
Paying Agent or bank shall be deemed to be deposited in
accordance with and subject to all the provisions contained in
this Ordinance.
Section 27. Approval of Preliminary Official
Statement and Official Statement. The Preliminary Official
Statement dated October 28, 1988, a copy of which has been
submitted to and reviewed by the Governing Body of the City on
the date hereof and is attached hereto as Exhibit "A", and the
final Official Statement, in substantially the form of the
Preliminary Official Statement, and the public distribution of
the same by the Underwriters is hereby approved. The Mayor of
the City is hereby authorized and directed to execute and
deliver said final Official Statement on behalf of the City with
such changes therein or amendments or supplements thereto as
shall be approved by the Mayor, the Mayor's execution thereof to
be conclusive evidence of said representative's approval
thereof.
Section 28. Severability. If any part of this
Ordinance, whether large or small, shall be held invalid, the
invalidity thereof shall not affect the other provisions of this
Ordinance.
Section 29. Effective Date. This Ordinance shall
take effect and be in full force from and after its passage and
publication once in the official City newspaper.
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K UM1n-Cox Pnnli, — Sabina. Kansas
PASSED by the governing body of the City of Salina,
Kansas, this j1=-- day of November, 1988.
ATTEST:
—City Clerk
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