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6546 Auth W/S Revenue Bonds1 1 F1 11 (PUBLI `SHED I1 THE SALINA JOURNAL 1961.) ORDINANCE NO. 6546 AN ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE OF $3,600,000 PRINCIPAL AMOUNT OF COMBINED WATER AND SE1,gA.GJ? SYSTEM REVENUE BONDS, SERIES OF 1961, OF THE CITY OF SALINA, KANSAS, $748,000 PRINCIPAL AMOUNT OF SAID BONDS BEING ISSUED FOR THE PURPOSE OF REFUNDING AN EQ,UAL PRINCIPAL AMOUNT OF OUTSTANDING WATERWORKS REVENUE BONDS, SERIES B, OF S`ID CITY, DATED AUGUST 1, 1953, $434,000 PRINCIPAL AMOUNT OF 31"ID BONDS BEING ISSUED FOR THE PURPOSE OF REFUNDING AN EQUAL PRINCIPAL AMOUNT OF OUTSTANDING WATERWORKS REVENUE BONDS, 3ERIES C, OF SAID CITY, DATED OCTOBER 1, 1955, $768,000 PRINCIPAL AMOUNT OF SAID BONDS BEING ISSUED FOR THE PURPOSE OF ALTERIdG, IMPROVING, EXTENDING A,ND ENLARGING THE WATERWORKS OF SAID CITY, AND ;1,650,000 PRINCIPAL AMOUNT OF SAID BONDS BEING ISSUED FOR THE PURPOSE OF ALTERING, IMPROVING, EXTEIIDING AIM ENLARGING THE SANITARY SEti^IER SYSTEM OF SAID CITY (SAID WATERWORKJI AND SAID SANITARY SEWER SYSTEM NOW HAVING BEEN COMBINED INTO A COIV:- BINED iTATER AND SEWAGE SYSTEM OF SAID CITY), PROVIDII`IG THE FORM AND DETAIL: OF SAID COMBINED WATER AND SEWAGE SYSTEM RETE NUE BONDS, PRO- VIDING FOR THE COLLECTION, SEGREGATION AND APPLICATION 0.`, THE REVENUE OF SAID WATER AND SEWAGE SYSTEM FOR THE PURPOSES AUTHORIZED BY LAW, AND MAKING CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT THERETO. WHERE.IS, pursuant to the provisions of =Sections 10-1201 to 10-1212, inclusive, General Statutes of Kansas, 1949, and all amend- ments thereto, the City of Salina, Kansas (hereinafter sorrietir,Les referred to as the "City''`), heretofore issued $1,000,000 I),oincipal .G amount of its •Tate_ Y^aolx.s Revenue Bonds, Series B, datedu,­ust 1 1��3, said bonds having been authorized by Ordinance No. 5798 of said City, 1 1 1 ki y; passed August 3, 1953, and of said series of bonds'j0,000 principal I amount remain outstanding and unpaid, being 48 bonds in tle denomina- tion of 'p1,000 each, numbered, becoming due serially on Y`.ugust 1 in each year, and beay-ing interest as follows: Principal Maturity Annual Date Numbers Arnount August 1 of Interest 253 - 315 $63,000 1962 3 1 2, 316 - -0)(78 63, 000 1963 3 1/2;: 379 - 441 63,000 1964 3 1/2; 442 - 504 63,000 1965 3 5/8 505 - 566 62,000 1966 3 5 56'( - 620 62, 000 196 7 3 5/8`b 629 - 690 62,000 1968 3 5/8 69l - 752 62,000 190 3 5%8 753 - 814 62,000 1970 3 5/85 81 1 1 8 a - 8 `� 6 l 62 �000 � 7 � >/ ; e ;',T - 938 02,000 10,72 3 5/0` 939 -1000 62,000 1973 3 5/0; interest on said bonds at the rates aforesaid being payable semi- annually on l-'ebruary 1 and �Iul=t 1 in each year, and, in acco--dance ?'jit'_c the proviAons of said ordinance and said bonds, elle gOVernin Cit7.% has called all of said bonds "o � reder�Dtion and lay - body o �. the - a ent on 19,1, and a WIHrjERE ", .srsuan , to the provi ions of Section 10-1201 to 10-1212, incl iSive, General Statute:: of Kansas, 1044, and all af.iend- ;,encs thereto, the Ci',,;;r of Salina, Kan.=as, heretofore issued $60o,000 i c principal amount of its Waterworks Revenue Bonds, Series C, dated f October 1, 1955, said bonds having been authorized by Ordinance No. 6011 of said City, passed November 0, 1955, and o: raid series 01 i bond , $43'r, 000 principal aii ount rc iiain outstandin`; and unpaid, being 4311- bond;., in the deno'lination of ,%Pl,OOO eac. d'_ie t serially on Au-us't 1 in each yea,_', and bearing interest as- '0110?! : i a i 4 1 i -2- 1 t P Fti it P r inc i p a 2- l at- u r it, y 11nnulol Hate TTb e r 3 !Ij T11; a u3t 1 of Inte est 167 - 2o6 $4o,00o lq(�- �)c_ 2 3/4�, -100 2 3/4/- 207 - 248 42,000 3� 2� 4 � L. , - 2 q2 4�,,, 000 196 3, 8 '000 106-- 293 333 3 339 386 278'000 1 66 3 337 - '136 --0,000 i�6 7 4137 488 - , 000 2 i 1900 31 489 - 54 3 1 5'-'000 1969 1 C! 5/44 - 600 5('000 197 0 3/; interest on said bonds at the rates aforesaid beinr, payable ,_`emi- annually on February 1 and August 1 in each yea -0, and, n accol-dan3e witl- t -1 -ie ,)rovi,-,ion,,:; of said o:L-dinance and jaid. bond,3, the cove---nin-, body of tll,.e City has called all of ,.;aid bonds fo-,2 -imayment on 11 u , u s -t- 1961, and Wllj:]IIHEP_S, pursuant to the ,r).covicions of !',')ec-Iion.3 10-1201 to 10-1212, inclusive, General Statute, of K-anoa-,, 104Q, and all ar,.end- T r i- ' ,-.en' tthereto, --he -overn4n- body of the City of Salina , an�-�a:�, he -e - LI tof ore caused to be published in the official City a notice of the intention of the City to alter, i.,-,-p2ove,, extend and enlac-,'e the 7-,Tate--,worIKs oi,-ined by said City by constructing a 12 `' line south '7-, plant to the vicinity of Ma,,�nolia and Fourth L­tC'reet-s, including pump and -Llanl,,, const2uct-in7, a 12" line north f----o-5,iI Ninth and Pine 'St-I-eet$ to the north city limits, constructing filter build -In- witl,. approxi - ii-iatcly eigh-L-1 filter:, const-ructin- other water- line mains and erten- cionsto,ethei, i,7ith hydrants, valves, fittings, and other appurtenance, LD and otherwise ey.tendinr,- improvingand improvinsaid wate.-wo2k3, including the acquisition of land and richt-of-tray, at a total co, -3t not exceedinc- X7bb,000, and to issue the waterworks improvement -,-even'u'Le bonds of said City in a principal amount not exceeding $768,000, to i:)cq-y the cost of said improvements and extensions, and ITIEEREAS, within fifteen days after the publication of the notice aforesaid, no written proteL3t Was filed iiith the City Cle,,11C of 1 n the City against said proposed alterations, ir:Iprovenent el -,tensions and enlarge_ ents or against the issuance of said �atervrorks ir-nrover.:ent revenue bonds, and the City is now authorized t -o make said iraproverients'1 and extensions and to issue its revenue bonds to pay the cost thereof, and TJHEIREAS, the governing body of Jaid Ci ty 11-ia s caused a rer)o ,-t i covering, said alterations, i::nprove rents, extension,--. and enlargements of the City'c vatIerworks and an estimate of the cost thereof, to be rade br the City's engineer and said re_oort and estimate have been and here I by are accepted and approved and are now on file in the office of the I City Clerk, and 1,11E1E11,S, it appears 'rorn the report and estimate of the City's engineer, and the governing body of the City hereby finds and determines that the cost of said alterations, ii-mprove?ients, extension, and enlargements of the City 's waterworks will be $768,000, and that it is now necessary t'r.at the City p--oceed for'�;hwith to aut tori ze andissue its revenue bonds in said amount for the p-,?rpose of paying the cost of said alterations, improvements, extensions and enlargements, and WHEREAS, pursuant to the provisions of Sections 10-1201 to 10-1212, inclusive, General Statutes of Kansas, 1949, and all amend - dents thereto, the governing body of the City of Salina, Kansas, here- tofore caused to be published in the official City newspaper a notice of the intention of the City to alter, il::prove, extend and enlarge the ,sanitary seVaer system of said City by constiucting sewage treat:;tent plant, facilities and interceptor seviers, sewer Blains, grit removal facilities, and other facilities and appurtenance relating to said system, including the acquisition of land and right -of -way, at a total cost not exceeding 1,650,000, and to issue the sewer system revenue -4- 1 1 bonds of said City in a principal amount not exceeding Y1,650,000 to pay the cost of said improvements and extensions, and W=REAS, within fifteen days after the publication of the notice aforesaid, no written protest was filed with the City Cler_L of the City against such proposed alterations, improvements, extension., and enlargements or against the issuance of said -sewer system revenue bonds, and the City is now authorized to :ake said ir.!provernents and extensions and to issue its revenue bonds to pay the cost thereof, and WHEREAS, the governing body of said City has caused a report covering said alterations, improvements, extensions and enlargements of the City's sanitary sewer 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 nOIIT 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 de- CD that the cost of said alterations, improvements, extensions and enlargements of the City's sanitary sewer system will be $1,050,000, and that it is now necessary that the City proceed forthtaith to autho- ize and issue its revenue bonds in said amount for the purpose of hay- ing the cost of said alterations, irnp2ovements, extensions and enlarge menu, and WHEIEAS, pursuant to the provisions of Sections 12-356 to 12-868, inclusive, 1959 Supplement to the General Statutes of Kansa,, 1049, the governing body of the City, by Ordinance No. 6544 , passed June 27 , 1961, has 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 com- bined water and sewage system ?gill be operated. and financed in accord- ance with the provisions of said statutes, and. -5- 11=1 RE I'll's, the governing body of the City of Salina, Kansas, he2eby finds and determines that it is necessary that said City issue its Combined Water and Sewage System Revenue Bonds pursuant to the provisions of Sections 12-868, 1959 Supplement to the General Statutes of Kansas, 1949, in the principal amount of ,3,600,000, p7;8,000 prin- cipal amount of said bonds to be issued to refund an equal p-incipal amount of Waterworks Revenue Bonds, ;fieri es B, of the City, dated August 11 1951, 4434,000 principal amount of said bonds to be issued to re- fund an equal 1)2incipal amount of Waterworks Revenue Bonds, Series C, of the City, dated October 1, 1955, ) f 768,000 principal amount osaid bonds to be issued to pa -,T the cost of altering, Lmproving, extending and enlarging the waterworks of said City, and 41,650,000 principal amount of said bonds to be issued to nay tLe cost of alterin;--, irprov- inr;, extending and enlarging the sanitary sewer system of said City, said waterworks and said sanitary sewer system now having, been conbined' into a combined water and sewage system of said City, NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS`: Section 1. That the )748,000 principal amount of Waterworks Revenue Bonds, Series B, of the City dated August 1, 1953, being bonds numbered 253 to 1,000, inclusive, each in the denomination of )1,000, hereinbef ore described, and the $434,000 principal amount of 11ater- worsts Revenue Bonds, Series C, of the City, dated October 1, 1955, being bonds nu?be2ed 167 to 600, inclusive, each in the deno:;lination of )1,000, hereinbefore described, small be redeemed, tarsen up and paid on August 1, 1961, by the issuance, sale and delivery of an equal principal ar:;ount, to -wit, 41,182,000 principal amount of Combined -n Sewage ' 'ystem Y1 S o y Wale- and Sev�age 'ystem Re,renue Bonds, Se,2ies of 1901, of 'he City, said bonds being a part of the p-,600,000 vrincipal amount of Combined Water and Sewage Syster., Revenue Bonds, Series of 1961, of t -he City -J- �7 1 herein authorized. Section 2. That the governing body of the City of -Salina, Kansas, hereby finds and determines that the cost of alte.r.ing, improv- incextending and enlarging the waterworks of said City pursuant to the notice of intention hem-etofore given by said ;;overninC body and published in the official City newspaper, as shown by the report and e --timate riiade by the City's engineer and on file in the office of the City Clerk, is in the amount of ?768,000; that said alterations, i:- p_�-ovements, extensions and enlargements shall be made in accordance with said report and estilMte as the same may be amended and supple- mented and approved by the governing bodIT of the City that the Ci t=T' s ' waterworks system and its sewage disposal system have now been com- bined pursuant to the provisions of Sections 12-856 to 12-868, inclu- sive, 1959 Supplement to the General Statutes of Kansas, 1949, and i that it is now necessary that $768,000 principal amount of Combined j "s Water and Sewage Systern Revenue Bonds, Series of 1961, of the City, be issued to pay the cost of said alterations, improvements, extensions i and enlare:ents, said bonds being a part of the $3,600,000 principal ii amount of Combined Water and Sewage System Revenue Bonds, Series of 1961, of the City, herein authorized. a Section 3. That the governing body of the City of Salina, s Kansas, hereby finds and determines that the cost of altering, ii�prov- f ing, extending and enlarging the sanitary sewer system of aaid City pursuant to the notice of intention heretofore given by said governing body and published in the official City newspaper,as shown by the P report and estimate made by the City's engineers and on file in the i office of the City Clerk, is in the amount of X1,650,000; that said i alterations, improvements, extensions and enlargements shall be made in accordance with -aid report and estimate as the same may be amended -7- 1 1 and supplemented and approved by the governing body of the City; that the City's waterworks system and its sewage disposal system nave now been combined pursuant to the provisions of Sections 12-856 to 12-868, I inclusive, 1959 Supplement to the General Statutes of Kansas, 1949, andl U. -at it is now necessary that y')1,650,000 principal amount of Combined Water and Sewage System Revenue Bonds, Series of 1961, of the City, be issued to pay the cost of said alterations, ir^..proverlents, extensions and enlargements, said bonds being a part of the $3,600,000 principal amount of Combined tilater and Sewage Systen Revenue Bonds, Se Hies of 1961, of the City, herein authorized. Section 4. That for the purpose of providing funds to re- deem, take up and pay off the �748,000 principal amount of outstanding Waterworks Revenue Bonds, Series B, of the City of Salina, Kansas, dated August 1, 1953, and the `434,000 princiral amount of outstanding Waterwo2l:3 Revenue Bonds, Series C, of said City, dated October 1, 1955; and for the purpose of providing funds in the amount of 768,000 to pay the cost of altering, improving, extending and. enlarging the wate_,works of said City, and in the amount of $1,650,000 to pay the cost of alter ing, iMproving, extending and enlarging the sanitary sewer 37Tste . of said City (said waterworks and said sanitary sewer system now having been coMbi.ned into a combined water and sewage system of said City), thele shall be issued and there are hereby authorized and di1,ected to be issued a series of Combined Water and Set1a`; e System tievenue Bond.:,, Series of 1961, of the City o- Salina, Kansas, in the principal ar'=nt of $3,600,000, said bonds being sor,ietlimes herein ref erred to as the 'bonds" or the "revenue bonds." Said series of Combined Water andSewage System l evenue Bond,: shall be designated "Series of 19!01, and shall consist oi' 3,1600 bonds, nuni eyed from 1 to 3,600, inclusive, each in 'che denomination of p1,000!. x'11 of said bonds shall be dated July 1, 1961, and paid bonds ;tall bo 1 1 nurlbereu and 6hall become due serially on llIuSu.st 1 in eac1-, year as ollo;vrs: Dond Principal T aturit-� N vers 1 - 103 11_,:ount X103j,000 August 1 1962- 9 2104 1o4- 208 105,000 1963 209 - 315 107,000 1964 316 - 425 110,000 1965 426 - 535 1102000 1966 536 - 650 115,000 1967 651 - 765 115,000 1968 766 - 885 1202000 1969 886 - 1,005 1200000 1970 1,006 - 1,125 120,000 1971 1,126 - 1,250 125,000 1972 11251 - 4375 125,000 1973 4376 - 1,505 130,000 1974 1,j506 - 1,640 135:000 1975 1,641 - 1,780 1402000 1976 4781 - 11930 150,000 1977 4931 - 2,085 155,000 1978 2,086 - 2,245 16o,000 1979 2.p246 - 2j,415 170, 000 1980 2,9416 - 2, 590 175,000 1981 21591 - 2,775 185,000 1982 2,776 - 2,970 195,000 1983 2,971 - 3,170 200,000 1984 31171 - 3080 210,000 1985 3081 - 31600 2202000 1986 Donds nti ibered 1 to 1,125 inclusive, shall becorille due out option o ' l�?'10_' payi :ent . Pit the ontlon of the Ci i jT, bonds n1' ;ibered 1,126 to 3, 6v�; inclsive, ay be called o-.° redo lmll-ion and. n- y .ent p ui t oo ,atur_ty a 3 whole o_ In TD_'t in inve_,se nui.:e= _cal of dei an .':Lt L1 "v 1, � (,'i . c_ on any rote _-e3c cute "ILerea te"° at and accrued- to date O' 1'edeiiPJ t,1on, t.o` o i hc7 with h a „'c^' ' , ' C � J J� J_ L a;,1 0 ten_ ee -pe_ en:; the ?-I ncipal amount of each such bond so redeemed and paid. If the City shall elect to call for :-ede.nption and payment any o ' said bonds numbered 1,126 to 3,600, inclusive, nrior to the Cit T sizall , ublis?,. once :in t e official al Mate .raturity thereof, the _Dape� oil' the "3 ta te of Kansa., and once In a financial ti e City of Tie r `�'orl 1 e:,T 5ro 'it, notice o ti;e _L '., tion of t�:e .._ l,v t,,call cin ",i)c,y id bond�:�,ca-I.icn- d h-, 1 1 C ai d. no ­' Lce to be -cLzbl! 3_)ed in each of .,,aid )L! �e �s not le � t_•.an ; ,ty (30) da r,T ; _tor _,ore than i xty ( 50 ) oay:1 to t date on i l' Said ccalled .�,: �.., _.�aTr-,o The rr-� �-, � .. T n ��o!zd� a�°� __ __ _ .....ni, . _1_.. �.,_ i,J all also T� Of i_t' I' a_':_Oi1 to 'E oieC _.: _.Yld Via';% C.i_U bond'ti T_,ial.i i1 a CO y -- 'T c �t :tee :C11 c:aCi'e`.ie'� GG �11C 1,r United .> a _..a 1a ,e-' O i'.e nae. ti J ..0>_'_ i, -:ed fO--' _'ede'..-:ipi l on. If any bond be called :.'O_' _'edE 1�t101: nd !: _nt U afore ;aid, all ince::�e,�t oi'z . uc i bond sl"all cEa e "„oi.1 and e date o_° whi ch .such call i ; ade, i rOVldeCa Usids ane available .'o it,� �aJ, lent at ''hE price ',e:L einbe"!'o_�e „,�ecified. �a id bonds ; ;1all bea- into- eat f_'Ci da "le, payable 1952, and. thereafter ,�e-, iLannually on 1 and ':,,ebnua_,y 1 in each yea at such -rate o_- rates a � may be f i,Led 'r!ercafte zwt.T the ove 'n i n` body of the City. -'aid bonds and inteie �t cou,�oi1� to -oe attached t',e_,eto as he�reinaftler i)- °ovided shall be payable in latiaf"al 1:10ney of the United „aces of �ca atr!e o i i ice o.� Lt!e �� �e ea user of tie eta to i,.:_�,r, t Of Kan.,,a13, in the City of Topeka, Kansas. Section 5. maid bonds and each of the ri shall be executed i'or and on behalf of the City by th.e facsi:::ile si-natu_'e Of the ile1 and the fac si-,il 1e J1 ;nature Of the City Cler'{- T.iith the sea! of t'_:e City affixed. Interest coupons shall be attached to said bonds _^e'Ore ;I,entinF the ince est to ;:iatUle JL -,he ---eon, and said irate-rEOt coupon, shall bea tr e fac, iL-::ile siFnatures of t -.e r, ay0_- and City Cler of said City. 'Dection C7. Each Of said bonds and incel'est coupOi1;� ai2d tiiE CE �i l i CatEs attached ti e:_'et0 ,hall be i n substantially the f01- lowing form: -10- Saiu uOPa: , l .i'_a lOt7_CE G (JC O11EC not le: than '�.i1 (j0) �a�% ;107 0i E? than =�1<> (JO a_.�r; 10i G �__E C c. tE _'tTjT i, -:ed fO--' _'ede'..-:ipi l on. If any bond be called :.'O_' _'edE 1�t101: nd !: _nt U afore ;aid, all ince::�e,�t oi'z . uc i bond sl"all cEa e "„oi.1 and e date o_° whi ch .such call i ; ade, i rOVldeCa Usids ane available .'o it,� �aJ, lent at ''hE price ',e:L einbe"!'o_�e „,�ecified. �a id bonds ; ;1all bea- into- eat f_'Ci da "le, payable 1952, and. thereafter ,�e-, iLannually on 1 and ':,,ebnua_,y 1 in each yea at such -rate o_- rates a � may be f i,Led 'r!ercafte zwt.T the ove 'n i n` body of the City. -'aid bonds and inteie �t cou,�oi1� to -oe attached t',e_,eto as he�reinaftler i)- °ovided shall be payable in latiaf"al 1:10ney of the United „aces of �ca atr!e o i i ice o.� Lt!e �� �e ea user of tie eta to i,.:_�,r, t Of Kan.,,a13, in the City of Topeka, Kansas. Section 5. maid bonds and each of the ri shall be executed i'or and on behalf of the City by th.e facsi:::ile si-natu_'e Of the ile1 and the fac si-,il 1e J1 ;nature Of the City Cler'{- T.iith the sea! of t'_:e City affixed. Interest coupons shall be attached to said bonds _^e'Ore ;I,entinF the ince est to ;:iatUle JL -,he ---eon, and said irate-rEOt coupon, shall bea tr e fac, iL-::ile siFnatures of t -.e r, ay0_- and City Cler of said City. 'Dection C7. Each Of said bonds and incel'est coupOi1;� ai2d tiiE CE �i l i CatEs attached ti e:_'et0 ,hall be i n substantially the f01- lowing form: -10- U C C No . p 1, 000 UNITED STATES OF AMERIC STATE OF KANSAS COUNTY OF SALI dE CITY OF SILINA CONEINED WATER AND k'EWAGE �Y,�T 24 REVE,I\TUE BOND, 3ERIE13 OF 1961 KNOW ALL MEN BY T ,t,.SE PRESENT ID' : Thal(-, 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 ONE THOU3AND DOLLARS in lawful :: oney of the United States of A, -.erica, on the First day of August, 19 , and to pay interest thereon fro:ri the date hereof at the rate of per cent ( ;ger annu,., payable February 1, 1962, and thereafter semiannually on Au ;ust 1 and Feb-,ua_,y 1 in each year after the date he-.,eof until the said principal sura . hall i have been paid, upon presentation and surrender of the interest coupons j hereto attached, bear, inLD r, the f acsil; ile signatures of t -e 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 of' -ice of the State Treasurer, in the City of Topeka, Kansas. (In bonds numbered 1.,126 to 3,600, inclusive, insert here the redemption para;-raph here- inafter set forth.) THIS BOND is one of an authorized series o-' 3,600 bonds of like date and tenor, except as to number, Late of interest, privilege of redel:lption and maturity, a gregating the principal arlount of "1"500,000, n-=abered from 1 to 3,600, inclusive, each in the denomination of �1, 000, Y748,000 principal amount- of said bonds having been issued fo-o the C 1 1 THIS BOND and the series of which it is a x)art constitute a }j is lien on the revenues produced from the combined water and sewage sy3te,.­ of the City, and the City covenants with the molder of this bond to keep and perform all covenants and agreements contained in said ordi- nance of tie City authorizing the issuance of the series of bonds of ��i! ich this bond is a part, and the governing body of the City Will fi > rates, fees or charges for the use of or services rendered by its said combined water and sewage �y tem, which rates, fees or charges Will be sufficient to pay the coast of operation, improvement and maintenance o41 f said oyster: and pay the pi-incipal of and the interest upon said bonds when due. Under the terns of such ordinance the City has the right to issue additional parity bonds payable from t'., --.e sane source and secured by the same revenues as this bond and the series of ,ihich it is a part, provided, however, such additional bonds may be so i, sued only in accordance with and subject to the covenants, conditions and restl2ictiono i2ela ting 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 :Mate uditor of Kansas, and this bond and the coupons attached hereto a=^e negotiable. A1,D IT IS HEREBY DECL.CRE.D f;ND 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 performed and do exist in due and regular for-: and manner as required by the Constitution and laws of the State of Kansas. IN WITINESS HEREOF, the City of Sali.'la, in the State of Kansas, by its governing body, has caused this bond to be signed b7r the facsimile signature of its Nayor and attested by the facsi.iile signature of its City Clerk, and its corporate seal to be hereto af- -13- 1 1 filled and the interest coupons hereto attacked to be signed by the facsimile .signatures of said officers, and this bond to be dated this First day of July, 1961. ;i i= ( _"ac simile) or. n T i3T (faCs i111ile) City Clef?c. 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 3ysteri Revenue Bond, Series of 1961, of the City of Salina, Kansas, has been duly registered in my office according to law. 1961. WITH SS riw hand and official seal this day of July, Ci t,% Cle'"'. OFFICE OF THE STATE AUDITOR OF KANSAS I, Clay E. IIedrick, State Auditor of Kansas, 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 and t'r_e coupons attached thereto were registered in my office according to latinr thi s WITNESS ray hand and official seal. Mate Auditor of Kansas By Director of Post-'Wdits. -11E- 1 1 (COUPON) (First interest coupon due February 1, 13162 - 7 months) Coupon No. February, On the First day of August, 19 , the City of Salina, Kansas, will nay bearer, solely :from the revenues deceived by said City from the rates, fees or cha rre s collected by said City frog: the operation of its col�bined water and sewage system and not iron any other and or source, Dollars and Cents, in la,-Iful money of the United States of An.erica, at the office oi' the State Treasurer, Topeka, Kansas, beim; Months' interest on its Combined Water and Sewage System Revenue Bond, dated July 1, 1961, Series of 1961, No. (f ac simile ) Mayor. ATTEST: (facsimile) Citir Clerk. February 1, August 1, 19 City of Salina, I• ansa: . 1t :p Bonds numbered 1,1126 to 3,600, inclusive, shall contain the follotainu additional te,, t : At the o-otion ol' ti --e City Of Salina, Kansas, bonds' nu:lbered 10126 to 3,600, inclu3ive, of t1ie series of vahich this bond i3 a part .lu,,r be edeer-ied and r)a' d p_ for to -15- I I I �.iatu._Luy a;� a ,,chole or in pai,,t in inverse nur,,,e,..--Ical order on August, 1, 1971, ol, on any inte_--e3t. .-)a;-,.nent date thei-e- at .,.-a-., and acc.-ued intlerc3t- to da -Ce of -_­ede7-,,i,-)tion., -DA -- a of ­:oee pe -i, cent, 0- �e i:)-_-inc!-;_)al a­,-Iountl of cacif), -;uch bond :-,,o _wede_e-._Ied and paid. I-t1his bond be called for -ed -I -_,:i -,.t -Lon aad, -,,.)ay,,,crit to -�7T, 11-o City will once in the p L ,)e-,, 3.'7' a o- ', an; ­L,s and once in - LI "inancial 1 LTI Cit- ol' liew Yo -IC, 7.-1ei-7 Yc-_,I:. not ie ti a -,-i 7 tl`ilu'r ('�10) dayI3 no-_� '�;han to 'L -,:-c date of a notice o2 t-l'o intention of `L -";,o Cit to .,,all and pay this bond on a s-pecii`ied date. If t'li_-10 bond be called for redemption and payment ac aforesaid, all in- terest on this bond shall cease fi-ar, and after the date for - which such call is i.-Iade, p,--ovided fundo I -.-,,,e available 2o - the -oaylmen- of this bond at the mice hereinbefore Section The j T�`aY­ oand C -It -7.7- C_le-_o!,�: a: -c JjC]:Ieb7T aj_j'L_-C)_­j , I ­ � - 'Ze( _, and di_--ec'Clod to and e::ec-�,,te In ti -le manner '.-_--.,ci-nbefo;,O L i - died. t1 -ie Co-.,n_bined 'Ta -e- and "c-­a('c Revenue '11_33ondc, �o­le3 of 1991, of the C i 'G, I T herein aut-1iorized, and to caa;,O ,-mid bond;3 to 0 a.,� -:provided 1-,-T icw, and, -,.-TI-,en duly e,-.,ecuted and tO -I- d-_,lI_vc-_ ,--,aid Cond3 t0 the t-n-e--cof on pay�,...e-t oi I, the U? 0i1 o-' the -ou-ochase Of the 'Cond:�� h,c-2eln au- �/ J u _L �, 1 j - J_ tU _LzecL, tl--.c Ciy __all use ';1,182,000 of suc.h 000 o,' of I-a7r ink �] t e -p il n c i T) a 1 a Y. -i o,,_, i it, of e Nu, _L L) _. Ij - - 1.,� 'L--venuc Dond 1-i e,,; Tj, of t- I ie C1 t -T, da'' ed being -I-d1-cli�fvI ,1 134,000 of out-.-,ImdIn,:bondLbc,cD to 1,000, lne and 1, 3 iaevcnae TBonds, 13e -21e,-3 C, of the �C_J'-,y dated Octolbe:p 1, 1" beinz )ond3 nu-mbeced l_','j 7 t() 600, inclusive. ".11 LJ J 1 �tandill` ?'iatC_':TO 'ks ieveni'e T'ond.-� of the Ci ty : i7a11 be aid b`r tine City the ---even U"e of the ie Ci -z`' 3 wate "ido 'i --s c cc rul ty -�2io-, to file delive "' of the bond3 herein author_-ized. U- on payeTi O said ol ttitandinL; ,Taterwo­,;..:. 'Heveii,.lo :-3ond,, ids bond- and the e"'e coli)ons attached the"Veto shall be canceled anc. Filed in the office oi' tiie City Clerk. Ti -ie balance o_' the purchase price o ' the bonds herein au- thorized, el.cl:., ive of the accrued interest tif.ereon, ,hall be deposit --d1 in a separate _lnd hereby establis ,ed to be i no.an a,,3 the "Cor:lbined Water and etiva e Systerl Con:-33t,Fund" and shall be u�3ed by :;aid City f Or the :tole pul_Tose of payin - the cost of alter i.n-, prOViil�, el tendin` and enlal'Zinr,; the o " -aid Ci Gy by const'1'Uctin , a 12 line south i i'or,1 the plant 'GO th-e Vicinity Of 'tia-nolia and i' oLl_'th �_ .) ,} eets, including booster pu p and tanly, coi L- ctin a 12'' line north. '_'o:; Nin ,h and Pine 3t.-eeta to L, e north L, city limits, constr;�ctin f ilte 2 b-,,iIdin� .•ri t approxi -ma te1- eight filters, constructinP, Oti.elyr Water line plains and extensions to eche- iiith hydrants, valves, i fittin-s, and other appurtenances, and Othe2wlse extendin and ii:lprov- int said%Taterwo--f ts, including the acquisition of land and ri"rl.t-Of- ?lay, and to pay the cost of altering, i,:lprovi:_a„ ex'tendin- and enlar�- -Ln,c,,, the sanitary sclaer system of said City by constructi nL, set ale treatment plant, facilities and intercept svwer,s, sevier plains, ^it r er;:Oval f acili.ties, and other facilities and ai-)Pur tenance _, relatiiz 'GO said sy te:` 1, includiri- the acquisition O_r' land and riLght-of -way, Said �' atervlo'iLs and said ,,unitary sewer system nova laving been combined into a corlbined water and sev7aCe system of said City. Withdrawals from said fund shall be rlade orl d-al;y authorized and executed T.,a_,'rant therefor acco;lpanied by a certificate executed by the City's cons,.,"ltin�11 engineers that such -payment is beim; rade for a nu:, -nose within the SCO?fie Of this ordinance and that the ar:10L'.nt of 'such �ayi`:lent genre.: e n t 1 1 �J only the contract price or reasonable value of the property, labor, r:aterials, :service or obligation being paid for, or, if ,_uch payment is not being r;iade pursuant to an express contract, that such payment is not in excess of the reasonable value thereof. Nothing hereinbefore contained 1-3hall prevent the payment of all costs and ex-nenzes incident to the issuance of the bonds herein authorized without a certificate frog the City's consulting engineers. «ny surplus in aid "Con3t.-21-10- tion Fund" not required to make said alterations, improvements, ex- tensions and enlargements shall be used to redeem or purchase bonds of the series herein authorized in accordance with the provisions herein- after contained in O3ection 11 (e) of this ordinance relating to the redemption or purchase of bonds. Any ailount -,-eceived by the City on account of accrued interest or premium on such bonds shall be deposited in the "Bond and Interest Account for Combined Water and Sewage System Revenue L'oiZds, Series of 1J61" created by Section 10 of this ordinance and used and applied as provided in Section 11 (b) hereof. Section S. The principal of and the interest on the y -3,600,000 principal amount of Co?rlbined Water• and :sewage Syste :l Revenue Bonds, Series of 1961, of the City, dated July 1, 1961, herein au- tho-.-ized, 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 acqui-ied by said City, and not frog_ any other fund or source. Said bonds shall not be or constitute genes -al obligations of the City, and no taxes> shall be levied or col- lected to pay either the principal of or the interest on :said bonds. O aid bonds shall constitute a lien on the revenues produced -,'2o,-.i the combined water and sewage system of the City, including improvements, extensions or enlar(-e7zents of said combined water and sewage system hereafter constructed or acquired, and said bonds shall be ne-otiable. -18- 1 1 Section 9. There is hereby created and ordered to be estab- lished a separate fund hereby designated as the "Water and Sewage Fund." 'he City covenants and agrees that so long as any of the Combined Water and Sewage System Revenue Bonds, Series of 1961, of the City herein au- thorized remain outstanding and unpaid, all o: the revenues derived by the City from the operation_ of ito combined water and sewage system f ror and after the date of the delivery of any of the bonds herein au- thorized, including all revenues from improvements, extensions and en- larger. encs in and to said combined via'ter and -3ewage system, hereafter constructed or acquired by the City, will be -paid and deposited in :raid', "Water and Sewage Fund" and that the moneys in said Nater and Se?aage Fund" will be administered and used solely as hereinafter in this ordi nance x)rovided. section 10. There are hereby created and ordered to be es- tablished in the Water and Sewage Department of the City four separate accounts, each of which shall be maintained and ad.,linistered by the City ac hereinafter provided, so long ac any of the bonds herein au- thorized re rain outstanding and un-Daid, to -;grit: (1) "Bond and Interest Account for Combined Water and Sewage System Revenue Bonds, Series of 1961," hereinafter sor,.etimec referred to as the "Bond and Interest Account." (2) "Reserve Account for Combined Water and Sewage System Revenue Bonds, Series of 1901, here - inaf ter sometimes ref erred to as the "Bond Reserve Account. ;r (3) "Combined Water and Sewage Nysten. Depreciation and Emergency Replacement Account," hereinafter sometimes referred to as the 'Depreciation and � S1 Emergency Account. -19- 11 C u (LL) "Combined Water and Sewage system Extension and Bond Retirement account.` rection 11. Moneys paid and deposited in the ;Water and I ewage Fund" hereinbefore established shall be administered and dis- posed 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 wate_- and sewage system for the current month and keeping the same in good repair and wor'_cing order, inclading,' Without limiting the generality of the foregoing, salaries, wageo, costs of materials and supplies, insurance, and cost of power. INTo rioneys in the "elates and Sewage Fund" shall be used for the purpose of i iprovin[;, extending or enlarging the City's combined ,Tater and sewaF,e system except after the transfer of such moneys to the ''Co :,;"eines lvlater and Sewage Systeri Extension and Bond Reti-^ernent Account" as here- inafter provided. (b) After paying or r..iaking provision for the payment, each month, of the reasonable and proper expenses of operating and maintain- ing the City' t: s combined water and sewage syseni for the current Mont`!, the City shall next pay out of the "Water, ana 3eirage Fund'' into the "Bond and Interest Account" to the eluent necessary to meet at i;iaturity thereof all interest on and principal of the bonds herein authorized the following sums: (i) On the first days of September, October, Novelrber and December, 1961, and on the first day of January, 1962, one-fifth of the amount required to pay the interest that will become due on the bonds herein authorized on Februa:.°y 1, 196'); and, on the first day of February, 1962, and continuing on the first day of each month thereafter so long as any of said -20- 1 1 herein authorized$ Series of 1961s, if the moneys in the stBond 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 "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 "Bond Reserve Account" after such call and payment, the sum of Three Hundred Thousand Dollars ($300,000), unless all of the bonds herein authorized be otherwise paid. When and after the money and investments in said "Bond Reserve Account" shall aggregate not less than Three Hundred Thousand Dollars ($300,000), no further payments into said "Bond Reserve Account" shall be required, but if at any time or from time to time the City shall be aom- pe lied to use and expend any part of said "Bond Reserve Account" for the purpose of paying the interest on or principal of the bonds herein author- ized and such use shall reduce the amount of said stBond Reserve Account" below the sum of Three Hundred Thousand Dollars ($300,000), then the City, after making all payments into the "Bond and Interest Account" at the time required to be made by the City under the provisions of paragraph (b) of this Section, will continue or resume said monthly payments of Six Thousand Dollars ($6,000) each from the Vater and Sewage Fund" into the ttBond Reserve Account" until said "Bond Reserve Account" aggregates Three Hundred Thousand Dollars ($300,000). The obligation of the City to make said payments into said ''Bond Reserve Account's shall be subordinate to the obligation of the City to pay from the "Water and Sewage Fund" the principal of and interest on any combined water and sewage system revenue 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 1961s herein authorized* -22- LJ Moneys in the "Bond Reserve Fund" shall be used to pay and retire the last outstanding bowls herein authorized unless such bonds and all interest thereon be otherwise paid. (d) After all amounts required at the time to be paid from the "Water and Sewage Fund" into the "Bond and Interest Account" and into the "Bond Reserve Account" under the provisions of paragraphs (b) and (c) of this Section shall have been so paids there shall next be paid out of the "Water and Sewage Fund" into the "Depreciation and Emergency Account" the sum of Two Thousand Five Hundred Dollars ($22500) each monthp beginning not later than October 1., 1961, and continuing on the first day of each month thereafter,9 until there shall have accumulated in said "Depreciation and Emergency Account" not less than the sum of One Hundred Twenty -Five Thousand Dollars ($1250000). Except as hereinafter providedp all amounts credited to said account shall be used by the City, if no other funds are available therefor$ 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 continue in effective and efficient operation. If no other funds are available therefore 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. When and after the amount of said "Depreciation and Emergency Account" shall aggregate not less than One Hundred Twenty -Five Thousand Dollars ($125.,000)p 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 thereofv and such use shall reduce the amount of said account below the sum of One Hundred Twenty -Five Thousand Dollars ($125,000), then the City covenants and agrees that after making all payments at the -23- Ll 1 1 s time required to be made by the City under the provisions of paragraphs (b) and (c) of this Sections it will thereafter continue or resume said monthly yk 3 payments of Two Thousand Five Hundred Dollars ($2.,500) each from the "Water and Sewage Fund" into the "Depreciation and Emergency Account" until said "Depreciation and Emergency Account" aggregates One Hundred Twenty -Five Thousand Dollars ($125..000). (e) When and after there shall be in the "Water and Sewage Fundt' an amount sufficient to pay the reasonable and proper expenses of operating and maintaining the City t s combined water and sewage system for the current month as provided in paragraph (a) of this Sections and when and after the City shall have made from the "Water and Sewage Fund" all payments., allo- cations and credits at the time required to be made under the provisions of paragraphs (b)s (c), and (d) of this Section$ all moneys remaining in the "Water and Sewage Fund" shall be credited monthly to the "Combined Water and Sewage System Extension and Boni Retirement Account." Except as hereinafter provided,, moneys in said "Combined Water and Sewage System Ex- tension 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 operations maintenance and repair of the Cityts 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 paragraph (a) of this Section. (ii) Anticipating payments into or increasing the amounts of the "Bond and Interest Accountt' the "Bond Reserve Account"$ or the "Depreciation and Emergency Account"$ -24- J 1 referred to in paragraphs (b), (c), and (d) of this Section, 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 nay- ment of any combined water and sewa-e systeri: revenue bonds of the City hereafter, issued under the conditions hereinafter specified and standing on a parity aitn the bonds herein authorized. (iii) Paying the cost of improving, extending or enlarging the City's combined water and se.vage system as here- inafter in this Section 11 (e) 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 (e) provided. The City covenants and agrees that :it will not expend or diture of any moneys s in said ''Combined dater and Setaa& II permit the expen J Y system Extension and Bond Retirement r.ccount'` for an- y extensions, irlprovemen'c or enlarsements of the City's combined water and sewage system wl; ich l are not economically sound or which will not properly and advantageous ly contribute to the efficient and economical conduct of the operation i and business of said systei-.a as evidenced by a written report and recommendation of the Superintendent or Manager of said system, nor i' will it slake any such extension, i -.-,-o rovement or enlargement costing { 4' in excess of One Hundred Thousand Dollars (�100,000) for any single purchase or improvement without securing from the City's consulting engineer or engineers a report and reco==,endation with respect theretoa nor will it make such purchase or improvement except in accordance s: with such report; and recommendation. At least once in every two years the City's consulting engineers hereinafter referred to in Section 15 (d) of this ordinance,; -25- 1 L D after making their examination and report on the condition, operation, and needs of the City's combined water and sewage system as provided in said Section 15 (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 "Combined Water and Sewage System 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 "Combined Water and Sewage System 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 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 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 con- formity 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 "Combined Water and Sewage System Extension and Bond Retirement Account" available for the redemption or purchase of bonds shall be divided among and applied to the redemp- tion or purchase of bonds of the respective series of combined water and sewage system revenue -26- 1 C 1 bonds at the time outstanding in proportion tc the total principal amount of bonds of said respective series tier outstanding, whether or not tl.e bonds of any series are at the time su.bJject to redemption. Bond �o redeemed or n -.;-chased shall be canceled. rection 12. If at any time the revenues derived by the City "ro z the one- ation oi" its combined water and sevrage syste shall be insufficient to mrake any payment or credit on t -_e date o, dates here- inbefore specified, the City shall make good the amount of such de- ficienclr 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 nay tents and credits being ade and applied in the order hereinbefore specified in rection 11 hereof. rection 13. Ii at any time the moneys in the "Bond and In - terest Account" and in the "Bond Reserve ,`,OCOLLnt7I 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 Trade up by transfer of moneys from the other Funds and accounts herein- before created in theollowing order: First, from the "Combined ;dater and Sewage System Extension and Bond Retirement Account"; secondly, from the "Depreciation and Emergency Account``; and; thirdly, from moneys hel� in the "Water and Selvage Fund," provided, however, that there shall always remain in the "Water and Selvage Fund" and in the "Combined Water: and 3e?,;ar�e System Extension and Bond Retirement 1",.ccount ` amounts which in 'the aggregate are sufficient to pay the reasonable and proper ex- penses of operating and maintainin the City's combined water and sewage system during the next succeeding period of thirty days. Section 14. Any surplus moneys held in the "'Wates and Sewage Fund," the "Bond and Interest Account," the "Depreciation and Emergency Account, �' and the "Combined Water and Sewage 1 ystem Extension and Bond Retirement Account" may be invested by the City in direct obligations 1 1 1 a of the United States Government, provided, however, that no ouch in- vestment shall be made for a period extending longer than to the date when the moneys invested r:Zay be needed for the purpose for which such fund or account was created, and in no event in obligations maturin longer Urian two years from date of purchase. I%Toneys held in the 'Bond Reserve recount" raay be invested by the City in bonds or ot'r.er direct obligations of the United States Goverment or unconditionally guaranteed as to the payment of principal and interest by the United States Government having a fixed _redemption value o---- becoming due vaith- in 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 they 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 o., referred to in this ordinance shall accrue to and becorle 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 w1en the amount held in any fund or account shall be in excess of the amount required by the provisions of this ord=inance, the City may direct tr-at such excess be paid into the Nater and Sewa e Fund" or into the ''Co~nbined `later and Sewage System Extension and Bond Retire- ment A --count," as the City may determine. Section 15. The City of Salina, Kansas, covenants ?,!itl each of the purchasers and owners of any of the Coi.bined ,tater and Sewage Syoter. Revenue Bonds of the City, Series of l,)ol, herein authorized, that so long as any of said bonds remain out-,,tand ng and unpaid: (a) The City will fix, establish, .aintain and collect ;_such -ate s, fees and cha ' e �3 for t'r'ee use of of : e_ vi ce 2 r ende_ ea by the -20- I I L coL,bined water and sewage ny:ten of said City, including imynovenents, extenDion3 and enlarjenents thereof, which rates, fee3 on cha2Sev shall be oufficient Oo pay the coat of operation, inp2ovement and naintenance of waid system and pay the principal of and the interest on all 3on- bined 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 aZoees that it will at all times maintain and collect rates, fees and charges for tne uje of on cenvicec rendered by ito combined water and sewaEe system vVich will be sufficient to onabic the City to have in each fincal yea-, a net oT-,e2atinS income from ouch system in an a".ount that will to at least one hundred th12ty-five rev cent (1355) of the avount 2equi7cd to be paid by the City in such year on account of boV arincinal of and intc2est on Ue bonds herein authorized at the tiEe outstanding. (b) None of the facilitie3 or services afforded by the coTbined water and 3ewage system of the City will be furnished to any u3c2 without a 2caoonable change being made therefor. The City will "Water and jewaZe Fund" fop all water and sewaEe pay monthly into the service fu2ni3hed by the Citylo coMned wate2 and sewage system to the City on any of its departments at fair and reasonable rates. (c) The City will .mini ntain in good re Jail' and working order its combined water and 'ie wage system and will operate the cans in an efficient manner and at reasonable coot. In ouch aneration the City will sequire the prompt payment of accounts and will discontinue 3ervice to any customer delinquent in the payment of his account for a period which shall not exceed sixty (60) days. (d) At least once in every two years the City will employ an independent consulting engineer or firm of con3ultinZ engineers having a renutation fop knowledge, skill and exnarienae in the con otpuction and operation of municipal water and 3ewage jyste-ns and will -29- n 1 1 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 exten- sions 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 there- of 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, exten- kion or enlargement thereof,, nor will it sell, lease or otherwise dispose of said system or any material part thereof, provided, however, the City may disposeof any property which has become obsolete, nonproductives 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 "Combined Water and Sewage System 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 insurable nature, the amount of such insur- ance 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 damages the City, with all reasonable dispatchp will use the proceeds of such insurance in reconstructing and replacing the property damaged or destroyed., oro if such reconstruction or replacement be unnecessaryp then in redeeming or purchasing outstanding combined water and sewage system revenue bonds of the City including only the bonds herein authorized or other combined water and sewage -30- 1 �7 1 syster:i _revenue bonds of the City he-eafter issued in accordance with the conditions contained in this ordinance and standing on a parity with the bonds herein authorized, such redeiiption or purchase being made in accordance with the provisions hereinhefoi2e contained in Sec- tion 11 (e) of this ordinance relating to the redemption or purchase of bonds. The City in operating its combined water and 3ewaE;e system Trill carry and maintain public liability and v,Tor.:men's compensation insurance in such amounts as would nor ally be maintained b7T a private corporation engaged in a similar type of business and the proceeds derived from any such policies shall be used in paying the clai_,as on account of which such proceeds were received, provided, however, the City may elect to accept the provisions of the ,do,_-l-r,,ien's Compensation A::t of the State of Kansas as authorized by Section 44-505, 1959 3UO- element to the General 13tatutes of Kansas, 19,49, and any ar�,iendr:ents the,-,eto heretofore or hereafter enacted, and, in such event, may elect to carry its own risk in accordance with tine provisions of said I1ct The cost of all insurance referred to in tIis paran;raph (f) shall be paid as an operating cost out of the revenues of the City's co?-,ibi ned grater and sewage system. (g) The City will install and maintain proper books, records and accounts (entirely separate from all other records and accounts o%' the City) in which complete and correct entries will be made of all dealings and transactions of or in relation to the prop- erties, business and affairs of the City's ca-nbined water and sewage system. Such accounts shall show the amount of revenue received fron said system, the application of such revenue, and all financial trans- actions in connection therewith. Said books shall be kept by the City according to standard accounting practices as applicable to the opera- tion of municipal Trate and sewn ;e systems. The City will operate it combined ?rater and sewage system on the basis of a fiscal year be- -31- 1 1 1 Sinning on January 1 and ending on Deember 31 m-ivally, as soon as possible following the close of each fiscal year, the Cit7r will cause an audit to be made by a competent firrri of certified public accountants experienced in public utility accountin` of the accounts of its coTibined water and sewage system for the )recedin fiscal yea Each Such audit, in addition to such mu-tte s aS l'.ay be thought ?)roper by said accountants shall, without li;iiting the generality of the fore doing, include the following: (i) A classified statement of the gross revenues, of the operating and maintenance e.>penses, excluding capital expenditures, if any, aiZd of the net operating revenues of the City's cor:cined T,,rater and sewage �ysterl for the precedin fiscal year; (ii) A balance sheet as of tr e 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 :sections r;', 9, and 10 of this o_ dinance; (iii) A statement showing the cost of additiono to the system during such fiscal year; (iv) A otate.nent of all co-.bi.ned water and sewage s7dTste- revenue bonds called, purchased, matured or paid during such fiscal year, and a stater,.ent of all interest naid 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 be - ginnin- and also at the end of such fiscal year; (vi) statement showing the amount and character of the insurance carried by the City on the property con- stituting its combined water and sei,vage syste;:i and -32- n 1 .l:o,rin the iia ::es o ' the he ellipzra`-ion date S the T)ol icie -, and t'_:F, thei-eon and (vii } 'cof:f,.ents °elative to the ,. arine in �-e �3,7-, ,e .a,u been o.,�e_-ated, and a�, to ti:e i1.1_'ill .ei�t o�' the covenan'u-3 and L'OVi _On conta fined _i _+ ;': i_ oi'dinan3e, and af_ o 'Gale Cit y' :.3 accou tlf-i n p J :"G COC, a't Cl ;Cii o'---, co -qTents aL, ;,aid co"..ntar_t air J�:.1n Vii�l' U in l.e'_' "Gime ^.O ':r'�_C ` 10 O c uhl: ✓Cil Lld1 ;, �co�ztan�w :,all i le a co-� she .'eo.= in o �.;.0 ,_>_a11 foLrra_,d ;;o -ie ,s oi" slucr: ,.4di., �o _lc, V n C e i i r �� rr--� . O_ ii a. , I 1 aild "GO .,i c llu O i1 J_i1 le . ,:ri+ in 011; 11 Cid tic o d: he_'ein autho:,ized. If such audit shall disclose that nro ger provision s not been made for all of the requirement, of the la,v under which the bond:,: C l -cin autho-2i zed are issued, and of tido Ordinance," -.,0 Cit r V n <n-, and a _-ee Gr at , t veyll nro;, ntl r roceec_ to a e to E e ae;C'Vi C3:_ enCle 'c (JET file lit t jTOi;iined ?'da vend -,C �r�'�0::: a'� ' ii._LC1 T'diii adequately 'OV1Ge , s J L eq J_1 _'E_:_en:; i 7olde of P - oI.;,=e "i)oiid'.. -' ryi - r ' �O' O i.11E; v v j e._ � n 1, tl�o._�izeu ull :cavo �..c 1'1`,� � � a u all e �i.:.e;. '�o i-_;ec t ,.� 0.._ nedTa and �C-,7 —e r Old 01 G e 'ry. 'G, r:d count) and 0 LII -i -)d a ;7uc-; :olde � > 'all -, c i- - ri- I,'--cCi i^ 'i __ f ,'J1 "Gis L113u1.c- _ i n o_..ia" D Con'; e ---n 7 V . .,._11Y =i � ,e C �- ri nc L..al�� _:e. _o._,. :� _ o_ n of .,_0_�..3 :'Ji ;, e:,:, ;_ �o c;'e�.,on and ..alntenance o_"' I .., co.:�ci-zeu U 1 1 enlar`,ements thereof, now or hereafter ir,:posed upon the City by tile Constitution and laws of tine State of Kansas and by the provisions of this ordinance. Section 15. The City of Salina, Kansas, hereby covenants and agrees that so long as any of the bonds herein authorized^el:.ain out- otandin- and unpaid, said City will not issue any additional bonds or o'l- er obligations payable out of the revenues of its co;.bined ?•rater and sewage system which stand on a parity or equality with the bonds herein authorized unless both of the followint condition_- are -,.-,et: (a) The ave2age annual net income de-,ived 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 reasonable expenses of operation, maintenance and repair of such system but before any other pays encs or cha_­,es, for the two fiscal years next precedi n the i ssu- ance of additional bonds, shall have been equal to at least one handred thirty-five per cent (135;5) of the riaximum a :fount required to be pa id out of said income in any succeeding fiscal year on account o botr_ principal and inte-2est becoming due with respect to all col-:lbined Ovate_,' and setivage system revenue obligations of the City, including the addi- tional revenue bondo proposed to be issued. (b) The City shall not be in default in making any payr:ient. at the time required to be made by it into the respective funds and accounts c_„eated or established by this ordinance. Additional combined water and sewage system revenue bonds, of the City issued under the conditions hereinbefore in this Section set o2th shall stand on a parity with_ t'r_e bonds herein aut .orized and ;hall enJoy complete equality of lien on and claim. against the -2evenlet of the City's combined water and sev,a e system with the bonds herein authorized and the Cit;; may L'_a_7r.e equal p_°ovisi on for paying ,7.:ai d bonds and file interest thereon out of the 111ater and SeT,da ge und” and. ;.7ay 1 1 1 lil:eVii.se-o-ovii dC J'i G1iC C_.'C: vlon O._ ,-;On : 010 on Ci dnQ aY7ci �, ,_ ea �;Onable "1 OY1C1 1'iC .Olint, _�O".' -G II C-' O -- t adcLi'c on:.:1 bond aY1d o� ., Of,on ry yiz _ _ id 1.T tand jc,V,;c11.1 liOtil7.11 �Y1 G!:1.._ �C:'.t _On COntuliled ;11 'O1 !'ti ! t Cl _-i, ''i, t o. the Ci '-s- 1 ' �" �� �O 1_..,..Lle aCLQi Gi011& �O_ i�?ined ,dL.teand 0 7d O+ O'�1�C ' 1'evenl'.e O l ! _; ti0i1`_' O ' i'"ie 1_. 'n0 e O i e.: O.'?,_: 11 a,l RC1"i11`° i eila7. 1'1nr- :i'�_�`-i T.:C ,� �.n�r. ev�endin ; Or nli ai, n coi:lo n e d v c- n -c .a c S t C _ L cL to p,-ovide �'_ a'� the L�rinci -,a1 0:_' and _ _ncc ­ on �3aid i_-cven,..e -ons or obli- ation h'L ll be T,_Yable o -t o_t', e revenue, of the Ci , .r' c,r biiied v a`c r and se;,mr-e r:l, ozr-ded a„ ,-he t_ ::e of "c 1e i �'suance o.::' such additional � cvenue bond- o--, obligations the Cit7% shall not be in de "au1 t in t e e_'='oi li,Ce O_` any COVEnunt OL ani Cei.ient COntainCd in ti i O:i'dlnanCE , -and -?Drovided furt1:er ti.at :3ucl additional reven'ae bond o.'� obl � ~ration s sli-all not in thei_' entirety peCO:rCIe due r)_^lOr to ,�eptai',be_o 1, 1Jcr')b; unle � 3 all of the bonds herein a,_1tho _,ized and all into e s'., t<'e_.�_ on be sooner LLoaid, an-) li ovi ded furti:Cr that ouch additional 'eVeY7Lle bond, or obligations shall be lunioi and aUoo'dinate to the bond., herein aU 't.or zed C L,llat if at any ti -.r, -,e the City :31lall be in dei aiuit in pav n% eithe, interest on or principal Of the bonds herein authorized, O_' the City shall be in default in r:;akin ; any _,Da-,, ents 2eauired to be rilade b r it under the p_-ovisions of this ordinance, the Ci --shall ;:.ake no paT:.ent of either p -incipal of o_, interest on paid junior- and su'c3crdi- nate revenue bond, or obli rations until said default o_^ dei ault: be cu -,ed and no de"ault shall exist on t -he part of the City '•:nde1, t -1,e covenant,, a reement-s and conditions contained in this ordixlance. In the event of t_,e issuance of any such junior and subordinate revenue bonds or obl1mations, file City, sub eCt to the �roviolon s a"o e -aid, !'a-' -35- ii r,lake p_y ovision 1'or payinE; the sale out of any available honeys in the "Water and aetirage Fund . '' ( erection 17. The provisions of the bonds authorized by thl.s ordinance and tie -provisions of this ordinance may be modified or q a=,fended at any time by the City v.,ith the vi-_2itten consent of 'che holde_­, , si+ of not less gran seventy-five .er cent (75A in aggregate principal %itl ' amount o ' the bond" herein authorized at the ti :1e outstanding; provided,` however, that no such modification or shall permit or be !i const_-ued as ­)ermittin ; (a) the extension of the maturity of the prin- LL cipal of any of t''l-le bonds issued hereunder, or the extension of the i maturity of any interest on any bonds issued hereunder, (b) a re- `( duction in the principal amount of any bonds o:, the rate of interest Mi thereon, or (c) a reduction in the aggregate p:,incipal amount of bonds the consent o ' the holders of vrY_ich is required for any such arlendn:en_c or modification. Any provision of the bonds or of this ordinance may, however, be modified or amended in any respect with ti.--- written Consent, I�of 'crle holde23 of all of the bonds then OLitaGandin�, every amendment or modification of a provision of the bonds or of this o_-dinance to thiel the T-_-i'-ten consent of the bondholders is given as above provided' 'i shall be expressed in an ordinance of the City amending or supplernen'ci. t I, ' the provisions of this ordinance and s_all be deemed to be a part of this ordinance. It shall not be necessary to note on any of the out- standing bonds any reference to such amendment o,., modification, if anv. A certified copy of every :such amendatory or supplemental ordinance, if any, and a certified copy of this ordinance shall alrra'T;� be kept on I rP r file in the office of the City Clerk and shall be made. available o_ inspection by the holder of any bond or prospective purchaser or holder of any bond authorized by this ordinance, and upon pay-ment of the reason- able cost of preparing the sane, a certified copy of any such arendatory i or supy,ler:en'cal ordinance or of this ordinance will be sent by the City ,; -36- 1 1 1 Clerk to any such bondholder or nrocoective bondholder. Section 18. The City agrees that i:�' it shall default in the payment of tie principal of o -r 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) daJTs, or il' the City or its ;overning Cody or any of the officers, agents, or errployees theroof shall fail or _-e- fuse to comply iv, th any of tie provisions of this ordinance or of the statutes of the 13tate of Kansas, then, at any tir:le thereafter and while: 2,uch default shall continue, the holders of t,�ientlr-five per cent (2� in amount of the bonds herein authorized then outstandin,- m. y, by written notice to the City filed in the office of the City Clerk or delivered in person to said City Clerk, declare tl�e principal o_' all bonds herein authorized then outstanding to be due and payable iriJ:.e- diately, and upon any such declaration given as aforesaid, all of said bonds shall become and be immediately due and payable, anyt ing in this ordinance or in said bonds contained to the contrary notwithstanding. i This provision, however, is subject to the condition that i at any time a='ter the principal of said bonds shall have been so declared to be due and payable, all arrears of interest upon all of said out-3tand- ing 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 nrovi- cions of this ordinance and under the provisions of the statutes of the State of Kansas :Tall have been cured, then and in every such cage, the folders of a majority in amount of the bonds herein authorized then outstanding, by written notice to the City given as hereinbefore speer fled, may rescind and annul such declaration and its consequences, but no such rescission or annulment shall extend to or affect any subse- quent default or innair any rights consequent thereon. _3�_ 1 Section 19. 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 herein autho_'i zeId I and the holder or holders of riot less than ten per cent (10') of the bonds at the time outstanding shall have the right, for the equal benefit and nnotection of all holder: of bonds similarly ;situated: (a) By mandamus o'_' other suit, act__on or Y.Droceeding at law or in equity to enfo_°ce his or their ri hts a ;ai n -t the City and its officers, a encs and employees, and to _'equi._I'E: and compel the City and y to perfor a all duties and oblira- cs officers, agents and e,�plo�ees, g i tions required b7T the provisions of said ordinance or by the Constitu- tion and latus of the State of Kansas. (b) By suit, action or ocher proceeding in equity or at lay. 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 laz,r 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 con- strued as imposing on the City any duty or obligation to lev7T any taxes either to meet any obligation incurred herein or to pay the principal of o' interest on the bonds herein auth.ori zed. No remedy conferred hereby upon any holder of the bonds herein authorized is intended to be exclusive of any oti'_er ref ed -r, b.i- each such remedy is cumulative and in addition to every other 'cmedy and T�iay be exercised without exhausting and ti,,itl-lout re a_'d to any other remedy conferred hereby. No waiver of any defaul'- or breach of dut7T or contract by the holder of any bond sInall extend to or affect any subsequent default or breach of duty or contract or scall i:inair any rfights or rerredics thereon. No delay or o;ni scion of t__e holder -38- 1 1 1 to exercise any right or power accruing upon any default shall i.:,pair any such right or Powe-_- or shall be construed to be a ,�iai ver of any such default or acquiescence therein, Every substantive right and every re:aedy conferred upon the holders oi' t -;e bonds may be enforced i and e..ercised from ti71e to time and a:3 often as r:1ay be deemed expedient. i In case any suit action or proceedin'( to enfo-,ce any ri lg-h r �.�1 � or exercise any rer.edy 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 ,hall be restored to their former positions and riShts and rerledie°s as ii no ;uch suit, action or other nroceedin had been brought or taken. ection 20. This ordinance shall tare effect and be in full force from and alter its passage and publication once in the official City n e w s p a- PArS'LD by ti -,ie Co.:lr,:ission of the City of ralina, Kansas, tt:_is T. - day of July 1961. (;:-)'I G 11LD ATTEST: / City Clerk. -39- j Mayo:--.