8546 W&S Bonds 1977(PUBLISHED IN THE SALINA JOURNAL myth /4-, 19 77)
ORDINANCE NO. 8546
AN ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE OF $3,000,000
PRINCIPAL AMOUNT OF COMBINED WATER AND SETIAGE SYSTEM REVENUE BONDS,
SERIES OF 1977, OF THE CITY OF SALINA, KANSAS, FOR THE PURPOSE OF
PROVIDING FUNDS FOR REPAIRING, ALTERING, EXTENDING, RECONSTRUCTING,
ENLARGING AND IMPROVING THE COMBINED WATER AND SEWAGE SYSTEM OF SAID
CITY, PRESCRIBING THE FORM AND DETAILS OF SAID COMBINED WATER AND
SEWAGE SYSTEM REVENUE BONDS, PROVIDING FOR THE COLLECTION, SEGREGA-
TION AND APPLICATION OF THE REVENUES OF SAID COMBINED WATER AND
SEWAGE SYSTEM FOR THE PURPOSES AUTHORIZED BY LAW, AND MAKING CERTAIN
COVENANTS AND AGREEMENTS WITH RESPECT THERETO.
WHEREAS, pursuant to the provisions of K.S.A. 12-856 to
12-868, inclusive, 1959 Supplement to the General Statutes of Kansas,
1949, 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 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
12-868, inclusive, and all amendments thereto, the governing body
of the City of Salina, Kansas (hereinafter sometimes called the
"City"), heretofore caused to be published 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 said City, at a total cost not exceeding $3,972,900,
to be paid for by the use of $972,900 of available Federal funds and
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 such proposed repairs, alterations, ex-
tensions, reconstruction, enlargements and improvements or against
the issuance of said revenue bonds, and the City is now authorized
to make said repairs, alterations, extensions, reconstruction, en-
largements and improvements 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 said repairs, alterations, extensions, reconstruction,
enlargements and improvements of the City's combined water and sewage
system, 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 said repairs, alterations, extensions,
reconstruction, enlargements and improvements of the City's combined
water and sewage system will be $3,972,900, 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 part of the cost of said
repairs, alterations, extensions, reconstruction, enlargements and
improvements,
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF
THE CITY OF SALINA, KANSAS, AS FOLLOWS:
Section 1. That the governing body of the City of Salina,
Kansas, hereby finds and determines that the cost of repairing,
altering, extending, reconstructing, enlarging and improving the
combined water and sewage system of said City pursuant to the notice
of intention heretofore given by said governing body and published
in the official City newspaper, as shown by the report and estimate
made by the City's engineers and on file in the office of the City
Clerk, is in the amount of $3,972,900; that said repairs, altera-
tions, extensions, reconstruction, enlargements and improvements
shall be made in accordance with said report and estimate as the
same may be amended and supplemented and approved by the governing
body of the City; and that it is now necessary that $3,000,000 prin-
cipal amount of Combined Water and Sewage System Revenue Bonds,
Series of 1977, of the City, herein authorized, be issued to pay part
of the cost of said repairs, alterations, extensions, reconstruction,
enlargements and improvements, the remainder of said cost to be paid
with available Federal funds.
Section 2. That for the purpose of providing funds to
pay part of the cost of repairing, altering, extending, reconstructing,
enlarging and improving the combined water and sewage system of said
City, there shall be issued and there are hereby authorized and
directed to be issued a series of Combined Water and Sewage System
Revenue Bonds, Series of 1977, of the City of Salina, Kansas, in the
principal amount of $3,000,000, said bonds being sometimes herein
referred to as the "bonds" or the "revenue bonds".
Section 3. Said series of Combined Water and Sewage
System Revenue Bonds shall be designated "Series of 1977", and
shall consist of 600 bonds, numbered from 1 to 600, inclusive, each
in the denomination of $5,000. All of said bonds shall be dated
April 1, 1977, and said bonds shall be numbered and shall become
due serially on April 1 in each year as follows:
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Bonds becoming due on or prior to April 1, 1987, shall
become due without option of prior payment.
At the option of the City, bonds becoming due on or after
April 1, 1988, and each of them, may be called for redemption and
payment prior to maturity as a whole or in part in inverse numerical
order on April 1, 1987, or on any interest payment date thereafter
at the principal amount thereof plus accrued interest to date of
redemption, together with a premium of three percent (3%) of the
principal amount of each such bond so redeemed and paid.
If the City shall elect to call for redemption and payment
any of said bonds so subject to redemption and payment prior to the
maturity thereof, the City shall publish once in the official State
paper of the State of Kansas and once in a financial journal published
in the City of New York, New York, a notice of the intention of the
City to call and pay said bonds, the same being described by number,
said notice to be published in each of said papers not less than
thirty (30) days prior to the date on which said bonds are called
for payment. The City shall also give written notice of its inten-
tion to redeem and pay said bonds by mailing a copy thereof by United
States registered mail addressed to the manager of the underwriting
group purchasing said bonds, said notice to be mailed not less than
thirty (30) days prior to the date fixed for redemption. If any bond
be 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 available for its payment at the price here-
inbefore specified.
Said bonds shall bear interest from date at the rates
hereinbefore specified payable on April 1, 1978, and thereafter
semiannually on October 1 and April 1 in each year.
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BOND
PRINCIPAL
MATURITY
ANNUAL RATE
NUMBERS
AMOUNT
APRIL 1
OF INTEREST
1 -
2
$ 10,000
1982
5.800
3 -
5 -
4
6
10,000
10,000
1983
1984
5.90%
6%
7 -
8
10,000
1985
6%
9 -
10
10,000
1986
6%
11 -
34
120,000
1987
5 1/2%
35 -
60
130,000
1988
5 1/2a
61 -
87
135,000
1989
5 1/2%
88 -
116
145,000
1990
5 1/20
117 -
147
155,000
1991
5 1/20
148 -
180
165,000
1992
5 1/2$
181 -
216
180,000
1993
5 1
217 -
254
190,000
1994
5 1/2%
255 -
294
200,000
1995
5.60%
295 -
337
215,000
1996
5.80%
338 -
383
230,000
1997
5.80%
384 -
432
245,000
1998
5.800
433 -
484
260,000
1999
5.90%
485 -
540
280,000
2000
60
541 -
600
300,000
2001
6%
Bonds becoming due on or prior to April 1, 1987, shall
become due without option of prior payment.
At the option of the City, bonds becoming due on or after
April 1, 1988, and each of them, may be called for redemption and
payment prior to maturity as a whole or in part in inverse numerical
order on April 1, 1987, or on any interest payment date thereafter
at the principal amount thereof plus accrued interest to date of
redemption, together with a premium of three percent (3%) of the
principal amount of each such bond so redeemed and paid.
If the City shall elect to call for redemption and payment
any of said bonds so subject to redemption and payment prior to the
maturity thereof, the City shall publish once in the official State
paper of the State of Kansas and once in a financial journal published
in the City of New York, New York, a notice of the intention of the
City to call and pay said bonds, the same being described by number,
said notice to be published in each of said papers not less than
thirty (30) days prior to the date on which said bonds are called
for payment. The City shall also give written notice of its inten-
tion to redeem and pay said bonds by mailing a copy thereof by United
States registered mail addressed to the manager of the underwriting
group purchasing said bonds, said notice to be mailed not less than
thirty (30) days prior to the date fixed for redemption. If any bond
be 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 available for its payment at the price here-
inbefore specified.
Said bonds shall bear interest from date at the rates
hereinbefore specified payable on April 1, 1978, and thereafter
semiannually on October 1 and April 1 in each year.
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Said bonds and interest coupons to be attached thereto as
hereinafter provided shall be payable in lawful money of the United
States of America at the office of the State Treasurer of the State
of Kansas, in the City of Topeka, Kansas.
Section 4. Said bonds and each of them shall be executed
for and on behalf of the City by the facsimile signature of the
Mayor and the facsimile signature of the City Clerk, with the seal
of the City affixed or imprinted thereon. Interest coupons shall
be attached to said bonds representing the interest to mature thereon,
and said interest coupons shall bear the facsimile signatures of the
Mayor and City Clerk of said City.
Section 5. Each of said bonds and interest coupons and
the certificates attached thereto shall be in substantially the
following form:
No.
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
COMBINED WATER AND SEWAGE SYSTEM REVENUE BOND,
SERIES OF 1977
$5,000
KNOW ALL MEN BY THESE PRESENTS: That the City of Salina,
in the County of Saline, State of Kansas, for value received, hereby
promises to pay, out of the revenues hereinafter specified, to the
bearer, the sum of
FIVE THOUSAND DOLLARS
in lawful money of the United States of America, on the First day
of April, 19 and to pay interest thereon from the date hereof at
the rate of percent ( %) per annum, payable
April 1, 1978, and thereafter semiannually on October 1 and April 1
in each year after the date hereof until the said principal sum
shall have been paid, upon presentation and surrender of the inter-
est coupons hereto attached, bearing the facsimile signatures of the
Mayor and City Clerk of said City, as said coupons severally become
due, both principal of and interest on this bond being payable at
the office of the State Treasurer in the City of Topeka, Kansas.
At the option of the City of Salina, Kansas, bonds of
the series of which this bond is a part becoming due on or after
April 1, 1988, may be redeemed and paid prior to maturity as a whole
or in part in inverse numerical order on April 1, 1987, or on any
interest payment date thereafter, at the principal amount thereof
plus accrued interest to date of redemption, together with a premium
of three percent (3%) of the principal amount of each such bond so
redeemed and paid. In the event of any such redemption and payment
prior to maturity, the City will publish once in the official State
paper of the State of Kansas and once in a financial journal published
ZM
in the City of New York, New York, not less than thirty (30)
days prior to the date of redemption, a notice of the intention
of the City to call and pay such bonds on a specified date, the
same being described by number. If any bond be called for re-
demption 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 available for its payment at the price herein-
before specified.
THIS BOND is one of an authorized series of 600 bonds of
like date and tenor, except as to number, rate of interest, privilege
of redemption and maturity, aggregating the principal amount of
$3,000,000, numbered from 1 to 600, inclusive, each in the denomina-
tion of $5,000, issued for the purpose of providing funds to pay
part of the cost of repairing, altering, extending, reconstructing,
enlarging and improving the combined water and sewage system of
said City, and is issued by said City by the authority of and in
full conformity with the provisions, restrictions and limitations
of the Constitution and statutes of the State of Kansas, including
K.S.A. 12-856 to 12-868, inclusive, and all amendments thereto,
and all other provisions of the laws of said State applicable thereto,
and this bond and the interest hereon are to be paid by the City of
Salina, Kansas, 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 and not from any other fund or
source. This bond and the series of which it is a part have been
authorized and issued under the provisions of Ordinance No.
of the City, passed and adopted on , 1977, to which
ordinance 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 combined water and sewage system, 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.
THIS BOND and the series of which it is a part constitute
a lien on the revenues produced from the combined water and sewage
system of the City, and the City covenants with the holder of this
bond to keep and perform all covenants and agreements contained in
said ordinance of the City authorizing the issuance of the series
of bonds of which this bond is a part, and the governing body of
the City will fix rates, fees or charges for the use of or services
rendered by its said combined water and sewage system, which rates,
fees or charges will be sufficient to pay the cost of operation,
improvement and maintenance of said system and pay the principal of
and the interest upon said bonds when due. This bond and the series
of which it is a part are junior and subordinate with respect to the
payment of principal and interest with a series of Combined Water
and Sewage System Revenue Bonds, Series of 1961, of the City, dated
July 1, 1961, of which series bonds in the principal amount of
$1,820,000 remain outstanding. Under the terms of such ordinance
authorizing this bond and the series of which it is a part, the
City has the right to issue additional parity bonds payable from
the same source and secured by the same revenues as this bond and
ME
the series of which it is a part, provided, however, such additional
bonds may be so issued only in accordance with and subject to the
covenants, conditions and restrictions relating thereto set forth
in said ordinance.
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
State Treasurer of Kansas, and this bond and the coupons attached
hereto are negotiable.
AND 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 this bond have been properly done and per-
formed 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 of Salina, in the State of
Kansas, by its governing body, has caused this bond to be signed by
the facsimile signature of its Mayor and attested by the facsimile
signature of its City Clerk, and its corporate seal to be affixed
or imprinted hereon and the interest coupons hereto attached to be
signed by the facsimile signatures of said officers, and this bond
to be dated this First day of April, 1977.
(facsimile)
Mayor
ATTEST:
(facsimile)
City Clerk
STATE OF KANSAS )
) SS.
COUNTY OF SALINE )
I, the undersigned, City Clerk of the City of Salina,
Kansas, hereby certify that the within Combined Water and Sewage
System Revenue Bond, Series of 1977, of the City of Salina, Kansas,
has been duly registered in my office according to law.
WITNESS my hand and official seal this day of
1977.
City Clerk
�7_
OFFICE OF THE STATE TREASURER OF KANSAS
I, Joan Finney, State Treasurer of Kansas, hereby certify
that a full and complete transcript of the proceedings leading up
to the issuance of this bond has been filed in my office, and that
this bond and the coupons attached hereto were registered in my
office according to law this
WITNESS my hand and official seal.
Treasurer of the State of Kansas
By
Assistant State Treasurer
(COUPON)
(First interest coupon due
April 1, 1978 - 12 months)
Coupon
No.
April, )
On the First day of October, 19 the )
City of Salina, Kansas, will pay bearer, ) April 1,
solely from the revenues derived by said City from ) October 1, 19
the rates, fees or charges collected by said City )
from the operation of its combined water and sewage )------------------
system and not from any other fund or source, )
Dollars and Cents, ) City of Salina,
in lawful money of the United States of America, ) Kansas.
at the office of the State Treasurer, Topeka, )
Kansas, being months' interest on its )------------------
Combined Water and Sewage System Revenue Bond, )
dated April 1, 1977. ) $
Series of 1977, No. )
( facsimile) )
Mayor )
ATTEST: )
(facsimile) )
City Clerk )
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Section 6. The Mayor and City Clerk are hereby authorized
and directed to prepare and execute in the manner hereinbefore
specified the Combined Water and Sewage System Revenue Bonds, Series
of 1977, of the City herein authorized, and to cause said bonds to
be registered as provided by law, and, when duly executed and regis-
tered, to deliver said bonds to the purchasers thereof on payment
of the purchase price.
The purchase price of the bonds herein authorized, exclusive
of the accrued interest or premium thereon, shall be deposited in a
separate fund hereby established to be known as the "Combined Water
and Sewage System Construction Fund of 1977" and shall be used by
said City for the sole purpose of paying part of the cost of repair-
ing, altering, extending, reconstructing, enlarging and improving
the combined water and sewage system of said City as hereinbefore
provided. Withdrawals from said fund shall be made on duly author-
ized and executed warrant therefor accompanied by a certificate
executed by the City's consulting 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 or
reasonable value of the property, labor, materials, service or obliga-
tion 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 of all costs and expenses incident to the issu-
ance of the bonds herein authorized without a certificate from the
City's consulting engineers. Any surplus in said "Construction
Fund" not required to make said repairs, alterations, extensions,
reconstruction, enlargements and improvements shall be deposited
in the "Bond and Interest Account for Combined Water and Sewage
System Revenue Bonds, Series of 1977", hereinafter created and
ordered to be established by Section 9 of this ordinance. Any
amount received by the City on account of accrued interest or
premium on such bonds shall be deposited in said "Bond and Interest
Account for Combined Water and Sewage System Revenue Bonds, Series
of 1977".
Section 7. The principal of and the interest on the
$3,000,000 principal amount of Combined Water and Sewage System
Revenue Bonds, Series of 1977, of the City, herein authorized, shall
be payable solely from the rates, fees or charges collected by the
City from the operation of its combined water and sewage system,
including improvements, extensions and enlargements thereto hereafter
constructed or acquired by said City, and not from any other fund or
source. Said bonds shall not be or constitute general obligations
of the City, and no taxes shall be levied or collected to pay either
the principal of or the interest on said bonds. Said bonds shall
constitute a lien on the revenues produced from the combined water
and sewage system of the City, including improvements, extensions
or enlargements of said combined water and sewage system hereafter
constructed or acquired, and said bonds shall be negotiable. Said
bonds shall be junior and subordinate with respect to the payment
of principal and interest from the revenues derived by the City
from the operation of its combined water and sewage system with
a series of Combined Water and Sewage System Revenue Bonds, Series
of 1961, of the City dated July 1, 1961, of which series bonds in
the principal amount of $1,820,000 remain outstanding.
Section 8. The City has heretofore created and ordered to
be established, by Ordinance No. 6546 of the City, passed on July
11, 1961, being the ordinance which authorized the Combined Water
and Sewage System Revenue Bonds, Series of 1961, a separate fund
designated as the "Water and Sewage Fund". The City covenants
and agrees that so long as any of the Combined Water and Sewage
System Revenue Bonds, Series of 1977, of the City herein authorized
remain outstanding and unpaid, all of the revenues derived by the
City from the operation of its combined water and sewage system,
including all revenues from improvements, extensions and enlarge-
ments in and to said combined water and sewage system hereafter
constructed or acquired by the City, will be paid and deposited
in said "Water and Sewage Fund" and that the moneys in said "[dater
and Sewage Fund" will be administered and used solely as hereinafter
in this ordinance provided.
Section 9. The creation and establishment, by Ordinance
No. 6546 hereinbefore referred to, of four separate accounts in
the Water and Sewage Department of the City known respectively as
the:
(a) "Bond and Interest Account for Combined Water
and Sewage System Revenue Bonds, Series of
1961", hereinafter referred to as the "1961
Bond and Interest Account",
(b) "Reserve Account for Combined Water and
Sewage System Revenue Bonds, Series of 1961",
hereinafter referred to as the "1961 Bond
Reserve Account",
(c) "Combined Water and Sewage System Depreciation
and Emergency Replacement Account", herein-
after referred to as the "Depreciation and
Emergency Account", and
(d) "Combined Water and Sewage System Extension
and Bond Retirement Account", hereinafter
referred to as the "Extension and Bond Retire-
ment Account",
be, and the same is, hereby ratified and confirmed, and in addition
to the accounts aforesaid there are hereby created and ordered to
be established in the treasury of the City two separate accounts
to be known respectively as the
(e) "Bond and Interest Account for Combined Water
and Sewage System Revenue Bonds, Series of
1977", hereinafter referred to as the "1977
Bond and Interest Account", and
(f) "Reserve Account for Combined Water and Sewage
System Revenue Bonds, Series of 1977", here-
inafter referred to as the "1977 Bond Reserve
Account".
The accounts referred to in paragraphs (a) and (b) afore-
said shall be maintained and administered by the City in accordance
with the provisions of said Ordinance No. 6546 of the City so long
as any of the Combined Water and Sewage System Revenue Bonds, Series
of 1961, of the City remain outstanding. The accounts referred to
in paragraphs (c) , (d) , (e) and (f) aforesaid shall be maintained
and administered by the City as hereinafter provided so long as
any of the Combined Water and Sewage System Revenue Bonds, Series
of 1977, of the City herein authorized remain outstanding.
Section 10. Moneys paid and deposited in the "Water and
Sewage Fund" hereinbefore established shall be administered and
disposed of as follows:
(a) The City, each month, shall pay or make provision for
the payment of the reasonable and proper expenses of operating and
maintaining the City's combined water and sewage system for the
current month and keeping the same in good repair and working order,
including, without limiting the generality of the foregoing, salaries,
wages, costs of materials and supplies, insurance, and cost of power.
No moneys in the "Water and Sewage Fund" shall be used for the pur-
pose of improving, extending or enlarging the City's combined water
and sewage system except after the transfer of such moneys to
the "Extension and Bond Retirement Account" as hereinafter pro-
vided.
(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 and credit monthly from the
"Water and Sewage Fund" to the "1961 Bond and Interest Account"
and the "1961 Bond Reserve Account" any amounts at the time required
to be so paid and credited by the provisions of Ordinance No. 6546
of the City.
(c) The City shall next pay out of the "Water and Sewage
Fund" into the "1977 Bond and Interest Account" to the extent neces-
sary to meet at the maturity thereof all interest on and principal
of the bonds herein authorized the following sums:
(i) On the first day of October, 1977, and con-
tinuing on the first day of each month there-
after so long as any of said bonds remain
outstanding and unpaid, an amount not less
than one-sixth of the amount of interest
that will become due on said bonds on the
next succeeding interest payment date; and
(ii) On the first day of each month beginning on
April 1, 1981, and continuing on the first
day of each month thereafter so long as any
of said bonds remain outstanding and unpaid,
an amount not less than one -twelfth of the
principal amount of said bonds that will
become due on the next succeeding bond
maturity date.
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It
1
All amounts paid into said "1977 Bond and Interest Account" shall
be used and expended by the City for the sole purpose of paying the
principal of and interest on the bonds herein authorized, Series
of 1977, as and when the same become due.
(d) There shall next be paid out of the "Water and
Sewage Fund" into the "1977 Bond Reserve Account on April 1, 1977,
the sum of $260,000, said sum to be obtained from funds held in
the "1961 Bond Reserve Account" which are in excess of the amount
required to be held in said account by the provisions of Ordinance
No. 6546 of the City and which excess funds in the amount of
$260,000 are hereby directed to be transferred from said "1961
Bond Reserve Account" and paid into the "Water and Sewage Fund"
pursuant to the authorization contained in Section 14 of said
Ordinance No. 6546. The City shall next pay out of the "Water
and Sewage Fund" into the "1977 Bond Reserve Account" the sum of
$2,000 each month, beginning on April 1, 1978, and continuing on
the first day of each month thereafter until there shall have accumu-
lated in said "1977 Bond Reserve Account" the sum of $320,000. All
amounts paid into said "1977 Bond Reserve Account" shall be used and
expended by the City solely to prevent any default in the payment
of the principal of or interest on the bonds herein authorized,
Series of 1977, if the moneys in the "1977 Bond and Interest Account"
are insufficient to pay the principal of or interest on said bonds
as they become due and if no other funds are available to pay said
principal and interest. No part of said "1977 Bond Reserve Account"
shall ever be used or expended by the City to call any of said bonds
for payment prior to their ultimate maturity unless there shall
remain in said "1977 Bond Reserve Account" after such call and
payment, the sum of $320,000, unless all of the bonds herein author-
ized be otherwise paid.
When and after the money and investments in said "1977
Bond Reserve Account" shall aggregate not less than $320,000, no
further payments into said "1977 Bond Reserve Account" shall be
required, but if at any time or from time to time the City shall
be compelled to use and expend any part of said "1977 Bond Reserve
Account" for the purpose of paying the interest on or principal of
the bonds herein authorized and such use shall reduce the amount
of said "1977 Bond Reserve Account" below the sum of $320,000, then
the City will continue or resume said monthly payments of $2,000
each from the "Water and Sewage Fund" into the "1977 Bond Reserve
Account" until said "1977 Bond Reserve Account" aggregates the sum
of $320,000. The obligation of the City to make said payments into
said "1977 Bond Reserve Account" shall be subordinate to the obliga-
tion of the City to pay from the "Water and Sewage Fund" the prin-
cipal of and interest on any combined water and sewage system reve-
nue bonds of the City hereafter issued by the City in conformity
with the provisions hereinafter contained and standing on a parity
with the Combined Water and Sewage System Revenue Bonds, Series of
1977, herein authorized.
Moneys in the "1977 Bond Reserve Fund" shall be used to
pay and retire the last outstanding bonds herein authorized unless
such bonds and all interest thereon be otherwise paid.
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(e) There shall next be paid out of the "Water and
Sewage Fund" into the "Depreciation and Emergency Account" created
by Ordinance No. 6546 of the City the monthly payments of $2,500
each required to be so paid by the provisions of Section 11(d) of
said Ordinance No. 6546, until there shall have accumulated in said
"Depreciation and Emergency Account" not less than the sum of
$125,000, and said "Depreciation and Emergency Account" shall be
maintained at said amount so long as any of the bonds herein author-
ized remain outstanding. 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 replacements in
the combined water and sewage system of the City and keeping the
same in good repair and working order so that said system may con-
tinue 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 said system. Moneys in said -account
shall not be used for the purpose of extending or enlarging said
system.
So long as said "Depreciation and Emergency Account" shall
aggregate not less than $125,000, no further payments into said
"Depreciation and Emergency Account" shall be required, but if the
City shall ever be compelled to use and expend any part of said
account for the purposes specified in the last preceding paragraph
hereof, and such use shall reduce the amount of said account below
the sum of $125,000, then the City covenants and agrees that it will
thereafter continue or resume said monthly payments of $2,500 each
from the "Water and Sewage Fund" into the "Depreciation and Emergency
Account" until said "Depreciation and Emergency Account" aggregates
$125,000.
(f) When and after there shall be in the "Water and Sewage
Fund" an amount sufficient to pay the reasonable and proper expenses
of operating and maintaining the City's combined water and sewage
system for the current month as provided in paragraph (a) of this
Section, and when and after the City shall have made from the "Water
and Sewage Fund" all payments, allocations and credits at the time
required to be made under the provisions of paragraphs (b), (c),
(d) and (e) of this Section, 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
said "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 combined water and sewage
system to the extent that may be necessary after
the application of the moneys held in the "Water
and Sewage Fund" under the provisions of para-
graph (a) of this Section.
(ii) Anticipating payments into or increasing the
amounts of the "Bond and Interest Accounts"
the "Bond Reserve Accounts", or the "Deprecia-
tion and Emergency Account", referred to in para-
graphs (b), (c), (d) and (e) of this Section,
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or any of them, or establishing or increas-
ing the amount of any bond and interest
account or bond 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 and standing on a
parity with the bonds herein authorized.
(iii) Paying the cost of improving, extending or
enlarging the City's combined water and
sewage system as hereinafter in this Sec-
tion 11(f) 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
11(f) provided.
The City covenants and agrees that it will not expend or
permit the expenditure of any moneys in said "Extension and Bond
Retirement Account" for any extensions, improvements or enlarge-
ments 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 improve-
ment without securing from the City's consulting engineer or 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 14(d) of this ordinance,
after making their examination and report on the condition, opera-
tion, and needs of the City's combined water and sewage system as
provided in said Section 14(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 First Securities Company of Kansas,
Inc., and to the manager of the underwriting group purchasing the
bonds herein authorized, 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 combined water and
sewage system, and, if so, the amount of such excess. 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 from time to time
for the purpose of redeeming and paying prior to maturity, or pur-
chasing in the open market, any of the Combined Water and Sewage
System Revenue Bonds, Series of 1961, as provided in Section 11(e)
of Ordinance No. 6546, or after such bonds have been paid, for
redeeming and paying prior to maturity any of the bonds of the City
herein authorized if any of such bonds be subject to redemption,
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or, at the option of the City, 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 pur-
chase 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 canceled.
Section 11. If at any time the revenues derived by the
City from the operation of its combined water and sewage system
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 combined water and sewage system, such payments
and credits being made and applied in the order hereinbefore speci-
fied in Section 10 hereof.
Section 12. If at any time the moneys in the "1977 Bond
and Interest Account" and in the "1977 Bond Reserve Account" are
not sufficient to pay the principal of or interest on the bonds
herein authorized as and when the same become due, then the amount
of such deficiency shall be made up by transfer .of moneys from the
other funds and accounts hereinbefore created in the following
order: First, from the "Extension and Bond Retirement Account";
secondly, from the "Depreciation and Emergency 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" and in the "Extension and Bond Retirement Account" amounts
which in the aggregate are sufficient to pay the reasonable and
proper expenses of operating and maintaining the City's combined
water and sewage system during the next succeeding period of thirty
days.
Section 13. Any surplus moneys held in the "Water and
Sewage Fund", the "1977 Bond and Interest Account", the "Deprecia-
tion and Emergency Account", and the "Extension and Bond Retirement
Account" may be invested by the City in direct obligations of the
United States Government, 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, and in no event in obligations maturing
longer than two years from date of purchase. Moneys held in the
"1977 Bond Reserve Account" may be invested by the City in bonds
or other direct obligations of the United States Government or
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unconditionally guaranteed as to the payment of principal and
interest by the United States Government having a fixed redemption
value or becoming due within ten years from the date of purchase.
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. All interest on any investments
held in any fund or account created by or referred to in this ordi-
nance shall accrue to and become a part of such fund or account.
In determining the amount held in any fund or account under any
of the provisions of this ordinance, obligations of the United
States Government shall be valued at the market value thereof. If
and when the amount held in any fund or account shall be in excess
of the amount required by the provisions of this ordinance, the City
may direct that such excess be paid into the "Water and Sewage Fund"
or into the "Extension and Bond Retirement Account", as the City
may determine.
Section 14. The City of Salina, Kansas, covenants with
each of the purchasers and owners of any of the Combined Water and
Sewage System Revenue Bonds of the City, Series of 1977, herein
authorized, that so long as any of said bonds remain outstanding
and unpaid:
(a) The City will fix, establish, maintain and collect
such rates, fees and charges for the use of or services rendered
by the combined water and sewage system of said City, including
improvements, extensions and enlargements thereof, which rates,
fees or charges shall be sufficient to pay the cost of operation,
improvement and maintenance of said system and pay the principal
of and the interest on all combined water and sewage system revenue
bonds issued by the City against said system and to create and
maintain reasonable reserve funds and accounts as hereinbefore
specified. The City covenants and agrees that it will at all times
maintain and collect rates, fees and charges for the use of or
services rendered by its combined water and sewage system which will
be sufficient to enable the City to have in each fiscal year a net
operating income from such system in an amount that will be at least
one hundred twenty-five percent (125%) of the amount required to be
paid by the City in such year on account of both principal of and in-
terest on all combined water and sewage system revenue bonds of the
City at the time outstanding.
(b) None of the facilities or services afforded by the
combined water and sewage system of the City will be furnished to
any user without a reasonable charge being made therefor. The
City will pay monthly into the "Water and Sewage Fund" for all
water and sewage service furnished by the City's combined water
and sewage system to the City or any of its departments at fair
and reasonable rates.
(c) The City will maintain in good repair and working
order its combined water and sewage system and will operate the
same in an efficient manner and at reasonable cost. In such
operation the City will require the prompt payment of accounts
and will discontinue service to any customer delinquent in the
payment of his account for a period which shall not exceed sixty
(60) days.
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(d) At least once in every two years the City will
employ an independent consulting engineer or firm of consulting
engineers having a reputation for knowledge, skill and experience
in the construction and operation of municipal water and sewage
systems and will cause such consulting engineer or engineers to
make an examination and report on the condition and operation of
the City's combined water and sewage system, 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 improvements or extensions
that may be needed in the ensuing two-year period. A copy of each
such report will be filed in the office of the City Clerk and
duplicate copies thereof shall be mailed promptly by the consulting
engineer or engineers to the First Securities Company of Kansas,
Inc. and to the manager of the underwriting group purchasing the
bonds herein authorized.
(e) The City will not mortgage, pledge or otherwise
encumber its combined water and sewage system or any part thereof
or any improvement, extension or enlargement thereof, nor will it
sell, lease or otherwise dispose of said system or any material
part thereof, provided, however, 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 become a part of the "Extension
and Bond Retirement Account".
(f) The City will carry and maintain a reasonable amount
of all-risk insurance upon the properties forming a part of its
combined water and sewage system in so far as they are of an in-
surable 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 unneces-
sary, then in redeeming or purchasing outstanding combined water
and sewage system revenue bonds of the City including only the
Combined Water and Sewage System Revenue Bonds, Series of 1961,
or after all of said bonds have been paid, the bonds herein author-
ized or other combined water and sewage system revenue bonds of the
City hereinafter issued in accordance with the conditions contained
in this ordinance and standing on a parity with the bonds herein
authorized, such redemption or purchase being made in accordance
with the provisions hereinbefore contained in Section 10(f) of
this ordinance relating to the redemption or purchase of bonds.
The City in operating its combined water and sewage system 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. The
cost of all insurance referred to in this paragraph (f) shall be
paid as an operating cost out of the revenues of the City's combined
water and sewage system.
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(g) 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 City's combined water and
sewage system. Such accounts shall show the amount of revenue
received from said system, 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 municipal water and sewage systems.
The City will operate its combined water and sewage system on the
basis of a fiscal year beginning on January 1 and ending on December
31. 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 combined water and sewage system
for the preceding fiscal year. Each such audit, in addition to
such matters as may be thought proper by said accountants shall,
without limiting the generality of the foregoing, include the
following:
(i) A classified statement of the gross revenues,
of the operating and maintenance expenses,
excluding capital expenditures, if any, and
of the net operating revenues of the City's
combined water and sewage system for the
preceding fiscal year;
(ii) A balance sheet as of the end of such fiscal
year, showing the amount on hand at the end
of such year in each of the funds and
accounts created by and referred to in
Sections 6, 8 and 9 of this ordinance;
(iii) A statement showing the cost of additions
to the system during such fiscal year;
(iv) A statement of all combined water and sewage
system revenue bonds called, purchased, matured
or paid during such fiscal year, and a state-
ment of all interest paid during such year on
all such revenue bonds of the City;
(v) A statement of the number of customers served
by the combined water and sewage system at
the beginning and also at the end of such
fiscal year;
(vi) A statement showing the amount and character
of the insurance carried by the City on the
property constituting its combined water and
sewage system and showing the names of the
insurers, the expiration dates of the policies,
and the premiums thereon; and
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(vii) Comments relative to the manner in which the
system has been operated, and as to the ful-
fillment of the covenants and provisions
contained in this ordinance, and as to the
City's accounting practices, and such other
comments as said accountants may deem appro-
priate.
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 First
Securities Company of Kansas, Inc. and to the manager of the
underwriting group purchasing the bonds herein authorized.
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 combined
water and sewage system rates which will adequately provide for
such requirements.
(h) The holder of any of the bonds of the City herein
authorized shall have the right at all reasonable times to inspect
the combined water and sewage system of the City, and all records,
accounts and data relating thereto, and any such holder shall be
furnished by the City with all such information concerning said
system and the operation thereof which he may reasonably request.
(i) The City will punctually perform all duties and
obligations with respect to the operation and maintenance of its
combined water and sewage system, including all improvements,
extensions and enlargements thereof, now or hereafter imposed
upon the City by the Constitution and laws of the State of Kansas
and by the provisions of this ordinance.
Section 15. The City of Salina, Kansas, herebv covenants
and agrees that so long as any of the bonds herein authorized re-
main outstanding and unpaid, said City will not issue any additional
bonds or other obligations payable out of the revenues of its com-
bined water and sewage system which are superior in security or
lien to the bonds herein authorized. The City further covenants
and agrees that it will not issue any such additional bonds or
other obligations which stand on a parity or equality with the
bonds herein authorized unless both of the following conditions
are met:
(a) The average annual net income derived by the City
from the operation of its combined water and sewage system, such
net income being defined as the gross income less only the reason-
able expenses of operation, maintenance and repair of such system
but before any other payments or charges, for the two fiscal years
next preceding the issuance of additional bonds, shall have been
equal to at least one hundred twenty five per cent (125%) of the
maximum amount required to be paid out of said income in any
succeeding fiscal year on account of both principal and interest
OV -19
becoming due with respect to all combined water and sewage system
revenue obligations of the City, including the additional revenue
bonds proposed to be issued; PROVIDED, HOWEVER, that if the City
shall have made any increase in its charges for water or sewage
service and such increased charges shall not have been in effect
during all of the two fiscal years next preceding the issuance of
additional bonds, the City may retain an independent consulting
engineer or firm of consulting engineers having a reputation for
skill and experience in the construction and operation of public
utilities to make an investigation and report as to the amount of
the average annual net income which the City would have received
during said last two fiscal years if said increased rates had been
in effect during all of said two years and said amount as determined
and reported by said engineer or firm of engineers shall govern in
determining the right of the City to issue additional parity bonds
under the provisions aforesaid.
(b) The City shall not be in default in making any pay-
ments at the time required to be made by it into the respective
funds and accounts created by or referred to in this ordinance.
Additional combined water and sewage system revenue 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 combined water and sewage system with the
bonds herein authorized and the City may make equal provision for
paying said bonds and the interest thereon out of the "[Tater and
Sewage Fund" and may likewise provide for the creation of a reason-
able "Bond and Interest Account" and a reasonable "Bond Reserve
Account" for the payment of such additional bonds and the interest
thereon out of moneys in said "Water and Sewage Fund".
Section 16. Nothing in this Section contained shall
prohibit or restrict the right of the City to issue additional
combined water and sewage system revenue bonds or other revenue
obligations for the purpose of reconstructing, altering, repairing,
improving, extending or enlarging the City's combined water and
sewage system 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 combined water and sewage system, provided
at the time of the issuance of such additional revenue bonds or
obligations the City shall not be in default in the performance
of any covenant or agreement contained in this ordinance, and
provided further that such additional revenue bonds or obligations
shall be junior and subordinate to the bonds herein authorized so
that if at any time the City shall be in default in paying either
interest on or principal of the bonds herein authorized, or if the
City shall be in default in making any payments required to be made
by it under the provisions of this ordinance, 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 de-
faults be cured and no default shall exist on the part of the City
under the covenants, agreements and conditions contained in this
ordinance. In the event of the issuance of any such junior and
subordinate revenue bonds or obligations, the City, subject to the
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provisions aforesaid, may make provision for paying the same out
of any available moneys in the "Water and Sewage Fund".
Section 17. The provisions of the bonds authorized by this
ordinance and the provisions of this ordinance may be modified or
amended at any time by the City with the written consent of the
holders of not less than seventy-five percent (75%) in aggregate
principal amount of the bonds herein authorized at the time outstand-
ing; provided, however, that no such modification or amendment shall
permit or be construed as permitting (a) the extension of the matur-
ity of the principal of any of the bonds issued hereunder, or the
extension of the maturity of any interest on any bonds issued here-
under, 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. Every amendment or modification
of a provision of the bonds or of this ordinance to which the written
consent of the bondholders is given as above provided shall be ex-
pressed in an ordinance of the City amending or supplementing the
provisions of this 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 ordi-
nance or of this ordinance will be sent by the City Clerk to any
such bondholder or prospective bondholder.
Section 18:. The City agrees that if it shall default in
the payment of the principal of or interest on any of its bonds
herein authorized 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%) in amount of the bonds herein authorized
then outstanding may, by written notice to the City filed in the
office of the City Clerk or delivered in person to said Citv Clerk,
declare the principal of all bonds herein authorized 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
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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 herein authorized then out-
standing, by written notice to the City given as hereinbefore
specified, may rescind and annul such declaration and its con-
sequences, but no such rescission or annulment shall extend to or
affect any subsequent default or impair any rights consequent
thereon.
Section 19. The provisions of this ordinance, including
the covenants and agreements hereinbefore contained, shall consti-
tute a contract between the City and the holders of the bonds
herein authorized 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 said 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 viola-
tion 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 obligation incurred herein or to pay
the principal of or interest on the bonds herein authorized.
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 de-
fault 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 abandaned, 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
restored to their former positions and rights and remedies as if
no suit, action or other proceeding had been brought or taken.
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Section 20. This ordinance shall take effect and be in
full force from and after its passage and publication once in the
official City newspaper.
this
ATTEST:
1
PASSED by the Commission of the City of Salina, Kansas,
7th day of March , 1977.
City Clerk
5wz