6011 Waterworks Revenue Bonds(PUBLISHED IN THE SALINA JOURNALt b r?`i -r�" �6) 17j5
ORDINANCE N0. 6011
AN ORDINANCE AUTHORIZING THE ISSUANCE OF $600000.00 WATERWORKS
REVENUE BONDS, SERIES Co OF THE CITY OF SALINA, KANSAS$ FOR THE
PURPOSE OF EITENDING$ ENLARGING AND IMPROVING THE WATERWORKS PLANT
AND SYSTEM OWNED BY SAID CITY, PRESCRIBING THE FORM AND DETAILS
OF SAID REVENUE BONDS, PROVIDING FOR THE COLLICTION$ SEGREGATION
AND APPLICATION OF THE REVENUES OF SAID WATERWORKS UTILITY FOR THE
PURPOSES AUTHORIZED BY LAW$ INCLUDING PAYING THE COST OF OPERATION,
MAINTENANCE AND IMPROVEMENT OF SAID UTILITYO PROVIDING AN ADEQUATE
DEPRECIATION FUND AND PAYING THE PRINCIPAL. OF AND THE INTEREST ON
THE WATERWORKS REVENUE BONDS OF SAID CITY ISSUED AGAINST SAID UTI-
LITY,
WHEREAS, pursuant to the provisions of Sections 10-1201
to 10-1212, inclusive$ General Statutes of Kansas, 1949$ and all
amendments thereto, including Chapters 74 and 75 of the Session
Laws of Kansas, 1953, the governing body of the City of Salina,
Kansas (hereinafter called the "City")$ heretofore caused to be
published in the official raper of the City a notice of the inten-
tion of the City to sake extensions, enlargements and improvements
of the waterworks plant and system, and for the construction of
facilities for the adaptation of river water for public use, owned
by said City and to authorize the issuance of $6009000,00 Water-
works Revenue Bonds of said City for the purpose of paying the cost
of said extensions$ enlargements and improvements, and
WHEREAS, within fifteen days after the publication of
said notice, no:written protest was filed with the City Clerk of
the City against such proposed extensions, enlargements and im-
provements or against the issuance of said waterworks revenue bonds,
and
WHEREAS$ Wilson & Company, the consulting engineers of
said City, have prepared plana and specifications covering the cost
of said extensions, enlargements and improvements and it now appears
and the governing body of said City hereby finds and determines that
the cost of said improvements will be in the sum of $600,000,00 and
that it is necessary at this time that sAid City proceed forthwith
to authorize the issuance of its waterworks revenue bonds in the
principal amount of $6009000,00 for the purpose of paying the cost
of said improvements,
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF
THE CITY OF SALINA, KANSAS, AS FOLLOWS:
ec -i pni, That the governing body of the City of Sa-
lina, Kansas, hereby finds and determines that the cost of making
extensions, enlargements and improvements of the waterworks plant
and system owned by said City as hereinbefore referred to and as
provided in the plans and specifications therfor prepared by the
City's consulting engineers, Wilson & Company, on file in the office
Of the City Clerk, is in the amount of $600,000.00; that said ex-
tensions, enlargements and improvements of the waterworks plant and
system owned by said City shall be made in accordance with said
plans and specifications heretofore and hereby approved by the
governing body of said City, including any alterations in or amend-
ments to said plans and specifications deemed advisable by the City's
consulting engineers and approved by the governing body of said City.
Section 2. That for the purpose of providing funds to
make extensions, enlargements and improvements of the waterworks uti-
lity owned by said City by the construction of facilities to adapt
river water to public use and to extend, enlarge and improve the
waterworks system, all in accordance with the plans and specifica-
tions of Wilson & Company, the consulting engineers of said City,
there is hereby authorized to be issued the Waterworks Revenue
1
Bonds, Series C, of the City of Salina, Kansas, in the principal
amount of $600,000.00. The City of Salina, Kansas' has heretofore
issued and now has outstanding $200,000,40 principal amount of
Waterworks Plant Revenue Bonds, Series A, of said City, dated Oct-
ober 19 19529 said bonds having been authorized by and described
in Ordinance leo. 5721 of said City, passed September 29, 19520 and
said Waterworks Plant Revenue Bonds, Series A, being dated October
1, 1R52P shall have preference in payment both as to principal and
interest over the $600,000.00 principal amount of Waterworks Reve-
nue Bonds, Series C, of said City herein authorized. The City of
Salina, Kansas, has also heretofore issued and now has outstanding,
$1,000,000.00 principal amount of Waterworks Revenue Bonds, Series
B, of said City, dated August 19 1953,said bonds having been author-
ized by and desribed in Ordinance Ido. 5798 of said City, passed
August 3. 1953p and said Waterworks Revenue Bonds, Series Bs dated,
as aforesaid, in the principal amount of $19000,000.00 shall have
preference in payment both as to principal and interest over the
$600,000.00 principal amount of Waterworks Revenue Bonds, Series
Co of the said,City herein authorized.
Sec&lan .3. Said issue of Waterworks Revenue Bonds, Series
C. shall consist of 600 bonds, numbered from 1 to 600, inclusive,
each of said bonds being in the denomination of $1,000.00. All of
said bondsahall be dated October 1, 1955, and said bonds shall be
numbered and shall become due serially on August 1 in each year, as
follows:
fiax"R
ff1 - 27
58
X77
58 - 91
92 - 128
129 — 166
167 — 206
207. 248
29 — 292
293 — 338
339 - 386
387 - 436
437 - 488
489 - 543
544 - 600
MATURITY
ti1t3.. US? i
$271,000
1957
34,000
1959
37000
1960
38000
1961
40,000
1962
42,0001963,
_
_4 �4" 60?i
9 4
46,000
1965
48,000
1966
503,000
1967
52,000
1968
559000
1969
57,000
1970
Bonds numbered 58 to 6009 inclusive, and each of them,
may be called for redemption and payment at the option of the City
on August 1, 1958s or on August 1 in any year thereafter prior to
the maturity of the bonds, at the par value thereof together with
accrued interest thereon to date of redemptions together with a
premium which shall be one and one-half per cent (1 1/2%) of the
principal amount of any bond redeemed.
In the event said City shall elect to call for redemp-
tion and payment any of the said bonds prior to maturity, then all
of said bonds so subject to redemption shall be redeemed and paid
prior to their ultimate maturity only in the inverse numbrical or-
der of said bonds, the outstanding bond having the highest nu tuber
being the first bond called for payment. In the event of any such
redemptions said City shall publish one* in the official State
paper of the State of Kansas not less than thirty days prior to the
date on which said bonds are called for payments a notice of the
intention of said City to call and pay said bonds, the same being
described by number. The City shall also mail a copy of said no-
tice of redemption to Lucar, Eisen & Walcherle, Inc., of Kansas
City, Missouri, or its successor, thirty (30) days prior to the date
of redemption. All interest upon any bond called for redemption
and payment in accordance with the provisions hereof shall cease
from and after the date for which such call is made, provided funds
are available for its payment at the price hereinbefore specified.
-2-
1
Said, bonds shall bear interest as follows
(1) Bonds N,1-20 and 28-47 3 V/Interest Per Annum.
Bondi "_red. 21-27 and 4§- Dict!- exceed 3 5/8g6pltiterost
(2)
(3)
58-79; 9Z -116}x'129453; 167-193 aP 207-236 A 3/4%
umbered 80-91;./11748; 1�4-166; 194-2# and 237-24P Not toexceed
Interest Per/Annum.
387 o • z►8 `�2 end
1579-600 Not td
YJ
q 16 �r
If 7-.7
9- ...325-338, ,371-;36, , 2
t Per Apnum.
' 420-436; 471-;- 524-543; and
xceed 3-1/8% Int�st Per Annum.
u-<° - .Y a - �' Gam► �� _, L�
c. yl0 , t r
Said interest shall be payable on February 1, 19569 and semiannually
thereafter on August 1 and February 1 in each year.
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,
Sogt-ton 4. Said bonds shall be signed by the mayor and
shall have the corporate seal of the City affixed thereto, attested
by the City Clerk. Interest coupons shall be attached to said bonds
representing the interest to mature thereon, and said interest cou-
pons shall bear the facsimile signatures of the Mayor and City Clerk
of the City.
Aeatlon.31. Each of said bonds and interest coupons# and
the certificates attached thereto, shall be in substantially the
following forms
No.
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
WATERWORKS REVENUE BOND
1/11 11 RRII ES 1! -1�1 �gll�lrl
$1,000.00
KNOW ALL MEN BY THESE PRESINTSt 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
ONE THOUSAND DOLLARS
in lawful money of the United States of America, on the
First day of August, 19,_,,,.,,,, with interest thereon from
the date hereof at the rate of per cent (_-_-.�'o )
per annum, payable February 1, 1956, and semiannually
thereafter on August 1 and February 1 in each year until
the said principal sum shall have been paid, upon presen-
tation and surrender of the interest coupons hereto attach-
ed, 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,
-3—
This amend ImAy be callvd for redemption and * *nt
at the option of tho City of Salinas Kansas $ ou Axa ast It
1938# or on ,Augusset i in any year thereafter pricer to the
maturity of this bondn at the par vaal mo there*. to ethor
with accrued interest thereon to data of arodeemp+tl*n,, together
with a premium which shall be one and One-half per cent (I i / Z )
of the principal amount of this bond if rodeo ; .perovided
howeverp that all of the bonds of the aeries of which this bond
is one shall be redeemed and paid id prior to their ultimate
maturity only in the Invorse nuxerrical carder of said bondasas
the outstanding bond having the highest number being the first
f.. and called fuer payment# ovd provided further that In the event
of ansuch reC3emption# said Ci f shall publish onceinLuxe
Y
official State paper of the State of Kansans* not less than
thirty (30) d,V* prior to the date on which this bond is called
{ for redemptIon and payments, a notice or the intention of said
City to call and pay this bond, this bond being domoribeeed by
nusabor,& if this bond be called for redemption and payment,
ase aforoaseaid, Interest on this band shaall aaeaso from and after
the dates for which such casal.l is made, provided INwds are a-
vailable for the payment of this bond at the price above sspoe-
i bade
This bond is one of an authorized, issue of six
hundred (600) bonds of like datee# denomination and toners
except as to numbers Interest rates, privilege of reedemption,
and maturity, aggregating the principal amount of 600*000«000
numbered from 1 to 6009 inclusive, each in the denomination of
$11,000900# issued, for the purpose of p:71nt the cost *: kine
eatensionae, onlaar omentop and Improvements of the wuteerworks
plant and system awned by said City& and by th* construction
of facilities for than adaptation of river water to public use,
by the authority of and in full compliance with the provisionss,
restrictions and limitations of the Constitution and statutes:
of the state of Kanaast,s, including Sections 10-1201 to 10-121&-o
inclusive# Oenoral. Statutes of Kaxso9vt 1.949# seed All ae nd-
montas thereto, i ncal.udin 'Chapters 74 and 75 of ,.%* Zesaslon Lac y
of Kanssasss 19339 and all other provisions of tho laws of said
State applicable thereto; aqui this mend and, r-Ll Interest here-
on are tra bo paid by ss4iad City of aai"_.na, KansAa., solely fro
the reevonuos derived f a the ratose, fees or chargees collected
by #aid Ci,t;r from the operation Of :its said w terworkss utility
and not from any other fund or sourco. Said City Of Zali naa:
Kaanasasss has heretofore issued, and on tai* date hereof has *-ut-
astandings its 'aterwortes Plant Revonuo BoUdiss Sori,eev A& in
the principal ameunt of V200j000.00# dated Ootobor 1, 1952s
and under the provisions of the laws of the State Of i aansas#
said bonds and the Interest thereon have preefersenco in payment
out of the revenues derived by said City from the operation
of Its waterworks utility pricer to the payment of this brand
and the wort** of which this bond is ones. Said City of Salinas,
kansass, has also heretofore issseued# and on the date hereof has
outstsanding, its Waterworks Revenue Bonds, .5eeriese Vis, In the
;principal amount of 1#000,000*00# dated August i, 19339 and
under the provision* of the laws of the state of Kansasser said
bonds and the interest thereon have preeforenoo in payment
out of the revenues derived by said City from the operation
of Ito waterworks utility prior to the psseys+ ont of this bond
and the series of which this bond is ono. This bond has
boon duly registered in the officRo of the Clerk of the City of
Salina, Kansas* and in the o:ffioe of the Kud.itor of t1lo State
of janssus, and this bond is negotiable,*
And it is hereby declared and certified that all accts,
conditions and things realuired tee be done and to exist pre-
oodaent to and in the issuance of this bond have been properly
done and performed and dee exist in due and regular form and
manner as required by the Constitution and laws of the State
of Kansas.
.4.
I�
IN WITNESS WHEREOF, the said City of Salina, in the
State of Kansas, by its governing body, has caused this bond
to be signed by its Mayor and its corporate seal to be here.
to affixed, attested by its City Clerk and the coupons here-
to attached to be signed with the facsimile signatures of said
officers, and this bond to be dated this First day of October,
19550
Attests
"ity Clerk
Mayor
- - - - r w w w w r w w - - w w w w r • - W r w w r w ..
STATE OF KANSAS }
) as
COUNTY OF SALINE )
I, the undersigned, City Clerk of the City of
Salina, Kansas, hereby certify that the within Waterworks
Revenue Bond, Series Co of the City of Salina, Kansas, has
been duly registered in my office according to law,
WITNESS my hand and official seal this day
o f ____ _ .w..,..w.� s 1955.
City Clerk
4 w w - - w - - - w w i w w • - A 1.. m w m • ■r w w w - w w
OFFICE OF THE STATE
__..._...11IDTTOR OF KAUSAS
I, George Robb, State Auditor of Kansas, do here-
by 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 the coupons attached thereto were
registered in my office according to law this
WITNESS my hand and official seal,
State Auditor of Kansas
By
Director of Post -Audits
—5—
L
Coupon No.
February,
On the First day of August, 19.._,
the City of Salinas Kansas, will
pay the bearer, solely from the
revenues derived by said City
from the rates, fees or charges collected by
said City from the operation of its waterworks
utility and not from any other fund or source,
—Dollars
and cents, in lawful
money of the United States of America, at the
office of the State Treasurer, Topeka, Kansas,
being six months` interest on its Waterworks
Revenue Bond, Series C. dated October 1, 1955.
No.
(fac im ,je )
Mayor
Attest:
f faesimile )
City Clerk
February 1,
August 1, 19
City of Salina,
Kansas
Sect on 6. The Mayor and City Clerk are hereby authorized
and directed to prepare and execute the bonds hereinbefore de-
scribed and, When duly executed and regis-
tered, to deliver said abonds to the purchasers thereof, on payment
of the purchase price.
The principal amount received from the sale of said bonds,
exclusive of any premium therefor or accrued interest thereon, shall
be deposited in a separate fund hereby created in the treasury of
the City, to be known and hereinafter referred to as the "Waterworks
Improvement Construction. Fund" and shall be used by said City for
the sole purpose of paying the cost of making extension, enlargements,
and improvements in the waterworks utility owned by the City as
hereinbefore specified. Withdrawals from said fund shall be made
on duly authorized 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 ordin-
ance, and that the amount of such payment represents only the
contract price or reasonable value of the property, labor, materials,
service or obligation being paid for. Any amount received by the
City on account of accrued interest on said bonds shall be deposited
in the "Sinking Fund for Waterworks Revenue Bonds, Series C", created
by Section 9 of this ordinance.
1
If, upon the completion of the extensions, enlargements,
and improvements in the waterworks utility owned by the City as
hereinbefore referred to, any balance shall remain in said "Water-
works Improvement Construction Fund", then said balance shall be
transferred by the City to a fund which shall be known as the
"Redemption Fund for Waterworks Revenue Bonds, Series C"; and the
City shall use and apply all moneys in said "Redemption Fund for
Waterworks Revenue Bonds, Series C", for the purpose of redeeming
and paying prior to their ultimate maturity in accordance with
the provisions hereinbefore and in the bonds not forth, the
Waterworks Revenue Bonds, Series C, herein authorised, including
the interest and premium thereon. If none of said bonds at the
time be subject to redemption and payment, the City may invest
the moneys in said Redemption Fund in bonds or other obligations
of the United States Government or unconditionally guaranteed
by the United States Government, maturing on or before the earliest
date or dates on which any of said outstanding Waterworks Revenue
Bonds, Series C, of the City, shall be subject to redemption and
payment; and in the event of any such investment, the City shall
use the Coneys and bonds in said Redemption Fund for the purpose of
redeeming and paying prior to their ultimate maturity said Water-
works Revenue Bonds, Series Co herein authorized, including the
interest and premium thereonp as and when said bonds are by their
terms subject to redemption; or the City may at any time use the
moneys in said Redemption Fund and also any bonds in said fund if
the moneys therein or any part thereof be invested in bonds as here-
inbefore provided, for the purpose of purchasing at the market price
thereof any of said Waterworks Revenue Bonds, Series C, herein
authorized, then outstanding, including the interest thereon and
any premium required to effect said purchase.
Se -inn Z. The $600,000.00 principal amount of Water-
works Revenue Bonds, Series Co of the City of Salina, Kansas, herein
authorized is hereby made a lien on the revenues produced from the
waterworks utility of said City, subject only to (1) the lien of
the outstanding Waterworks Plant Revenue Bonds, Series A, of the
City, dated October 1, 19320 presently aggregating the principal
amount of $200,000.00; and (2) the lien of the outstanding Water-
works Revenue Bonds, Series B, of the City, dated August I. 1953s
aggregating the principal amount of $19000,000,00. Under the pro'-
visions of the laws of the State of Kansas, said outstanding Water-
works Plant Revenue Bonds, Series A, and the interest thereon, and
said outstanding Waterworks Revenue Bonds, Series B, and the inter-
est Ahereons have preference in payment out of the revenues derived
by said City from the operation of its waterworks utility prior to
the payment of the $6009000.00 principal amount of Waterworks Reve-
nue Bonds, Series C, herein authorized.
SeetI n g. So long as any of the Waterworks Revenue
Bonds, Series C, of the City of Salina, Kansas, herein authorized,
remain outstanding and unpaid, said City covenants and agrees that
it will.-cintain the "Waterworks Department Fund" referred to in
Section 8 of Ordinance No. 5721 of said City passed September 29,
19.29 being the ordinance which authorized the issuance of
$3329000.00 principal amount of Waterworks Plant Revenue Bonds,
Series A, of said City, dated October 1, 1952, $200,000.00 thereof
being outstanding, and that all of the revenues derived by the City
from the operation of its waterworks utility, including all revenues
of all extensions and improvements to said utility hereafter con-
structed or acquired, will be paid and deposited in said "Waterworks
Department Fund", and that said revenues will not be mingled with
the other funds of said City. The moneys in said "Waterworks De-
partment Fund" shall be used only for the purposes authorized by
law, including paying the cost of operation, maintenance, altera-
tion, reconstruction, repair, improvement, extension and enlargement
of said utility, providing an adequate depreciation fund, paying
the principal of and interest on the Waterworks Plant Revenue Bonds,
Series A, of the City, dated October 1, 1932, paying the principal
of and interest on the Waterworks Revenue Bonds, Series B, of the
—7-
City, dated August 1, 19539 and paying the principal of and in-
terest on the Waterworks Revenue Bonds, Series C, of the City,
dated November 19 1955p herein authorized.
Seetinn 9. There is hereby created in the treasury of
the City a sinking fund for the payment of the Waterworks Revenue
Bonds, Series C, herein authorized, and the interest thereon, said
fund to be known and hereinafter referred to as the "Sinking Fund
for Waterworks Revenue Bonds, Series C", and so long as any of said
bonds remain outstanding and unpaid, the City covenants and agrees
that it will maintain said Sinking Fund and will administer the same
In accordance with all of the provisions contained in this ordinance,
subject to the provisions of the statutes of the .Mate of Kansas
applicable thereto. The City, out of the "Waterworks Department
Fund" hereinbefore referred to in Section 8 of this ordinance, after
paying the cost of operation and maintenance of said waterworks
utility and providing for any other obligations imposed by law, and
subject to (1) the obligations imposed upon the City by Ordinance
No. 57219 hereinbefore referred to, with respect to $200,000.00
principal amount of Waterworks Plant Revenue Bonds, Series A, out-
standing, dated October 1, 1952; and (2) the obligations imposed
upon the City by Ordinance No, 5798 hereinbefore referred to, with
respect to $190009000.00 principal amount of Waterworks Revenue
Bonds, Series B, dated August 19 1953, will pay into said "Sinking
Fund for Waterworks Revenue Bonds,.;Series B", at monV.ty intervals,
beginning on november 1, 1955, and continuing on the first day of
December, 1955, and on the first day of January, 1956, an amount
not less than one-third (113) of the amount of interest that will
become due on said bonds on February 1, 1956; and, beginning on
Nvember 1� and continuing on the first day of each month
thereafter to and including July Is 1956, an amount not less than
one-sixth (1/6) of the amount of interest that will become due on
August 1, 1956, and, beginning on August 1, 19569 and continuing
on the first day of each suczceding Aonth, an amount not less than
(1) one-sixth (1/6) of the amour;t of interest that will become due
on said bonds on the next succeeding interest payment date, and (ii)
one -twelfth (1/12) of the amount of principal of said bonds that
will become due on the next succeeding principal payment date, All
amounts paid and deposited in said "Sinking Fund for Waterworks Rev-
enue Bonds, Series C", shall be expended and used for the sole pur-
pose of paying the interest on and principal of said Waterworks
Revenue Bonds, Series C, herein authorized.
Soatlangin, There is hereby created in the treasury of
the City a special fund to be known and hereinafter referred to as
the "Reserve Fund for Waterworks Revenue Bonds, Series C", and so
long as any of the Waterworks Revenue Bonds, Series C, of the City
herein authorized remain outstanding and unpaid the City of Salina,
Kansas, covenants and agrees that it will maintain said fund.
Said City further agrees to pay into said Reserve Fund, after making
the payments hereinbefore required to be made under the provisions
of Sections 8 and 9 of this ordinance, at monthly intervals, be-
ginning on December 1, 1955, all legally available revenues in the
"Waterworks Department Fund" referred to in Section 8 of this
ordinance, subject to the obligations imposed upon the City by
Ordinance Nos. 5721 and 5798, hereinbefore referred to, with re-
spect to $200,000eOO principal amount of Waterworks Plant Revenue
Bonds, Series A, dated October 1, 1952, and to the $1,000,000.00
principal amount of Waterworks Revenue Bands, Series B, dated
August 10 1953, until there shall have accumulated in said "Reserve
Fund for Waterworks Revenue Bonds, Series C", the sum of Thirty
Thousand Dollars ($30,000.00). If at any time or times the amount
of cash on hand in the "Sinking Fund for Waterworks Revenue Bonds,
Series C", created by Section 9 of this ordinance, shall be in-
sufficient to pay either the interest on or the principal of said
Waterworks Revenue Bonds, Series C, as and when the same become
-8-
,I:K�i ��, / _"gyp^V`+L"��i�l!✓Rj��(� �-- � " �.
due, the City shall use the Moneys in said "Reserve Fund for
Waterworks Revenue Bondsy Series C"$ to pay said interest or
principal and to prevent any default in the payment of either
interest on or principal of said Waterworks Revenue Bonds,
Series C. After said Reserve Fund aggregates the principal
amount of Thirty Thousand Dollars ($30$000.00)$ no further pay-
ments into said fund shall be required or made# but if the City
shall river be compelled to expend and use a part of the money or
resume monthly payments into said Reserve Fund, as aforesaid, un-
til there shall have accumulated in said Reserve Fund not less
than the sum. of Thirty 'Thousand Dollars ($30$000,00), no part
of the moneys in said Reserve Fund shall ever be expended or used
by said City to call any of said Waterworks Revenue Bonds, Series
C: for payment prior to their ultimate maturity unless all of said
outstanding bonds be called for payment, and funds are available
to pay the same according to their terms.
-9-
a {n _.U. That the City of Salina duly created a
fund known and referred to as "Waterworks Replacement and Ex-
tension Fund" in strict compliance with the said Section 11 of
Ordinance No, 5798, That the City will not add to the $50$000.00
aforesaid un til the $3Os000.00 reserve required by Section 10 of
this ordinance actually exists in money. If at any time or
times the amount on hand in the "Sinking Fund for Waterworks
Revenue Bonds, Series C", hereinbefore created by Section 9 of
this ordinance$ and in the "Reserve Fund for Waterworks Revenue
Bonds, Series C", hereinbefore created by Section 10 of this
ordinances shall be insufficient to pay either the interest on
or the principal of said Waterworks Revenue Bonds, Series C, if
and when the same become due and the City shall have no other
funds available to pay said interest or principal, the City shall
use any money in said "Waterworks Replacement and Extension Fund"
for the purpose of paying said interest or principal and to pre-
vent any default in the payment of either interest on or o princi-
pal of said Waterworks Revenue Bands, Series C; subject, neverthe-
less, to the prior right and duty to allocate said "Waterworks Re-
placement and Extension Fund" to the payment of interest or princi-
pal on "Waterworks Revenue Bonds* Series B"$ in the principal sum
of $1,0000000.00 and accruals thereon.
Seatinnla, When the City of Salina, Kansas, shall
have made all the payments at the time required to be made under
the provisions of Sections 8, 9, 109 and 11 hereof, and when
there shall have accumulated and be on hand for the "Reserve Fund
for Waterworks Revenue Bonds, Series B", as made and provided for
in Ordinance No. 5798 in the sum of $100,000.00; and when there
shall have accumulated and be on hand in the "Waterworks Replace-
ment and Extension Fund", ratified and supplemented by Section 11
of this ordinance the sum of $50,000,00; and when there shall be
accumulated and be on hand in the "Reserve Fund for Waterworks
Revenue Bonds, Series C"$ the sum. of", $30000.00; and if the City
shall not be in default in the performance of any covenant or
agreement contained in Ordinance No. 5721 of said City authorizing
$332,000,00 principal amount of Waterworks Plant Revenue Bands,
Series A, there now being $200!000.00 thereof outstanding and un-
paid, dated October 1, 1952; and if the City shall not be in de-
fault in the performance of any covenant or agreement contained
in Ordinance No. 5798 of said City providing for the issuance of
$1,000,000.00 principal amount of Waterworks Revenue Bonds, Series
Bs dated August 1, 19533 and if the City shall not be in default
in the performance of any covenant or agreement herein contained,
the City may use revenues then available in the "Waterworks Depart-
ment Fund" referred to in Section $ of this ordinance for the pur-
pose of making replacements or repairs to its waterworks utility
or for the purpose og improving, extending, or enlarging the same,
or for the purpose of redeeming and pay ing, prior to their ulti-
mate maturity, in accordance with the provisions hereinbefore and
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in the bonds set forth, the Waterworks Revenue Bonds, Series C.
heretofore authorized, as aforesaid, including the interest and
prekium thereon; or if none of said bonds is at the time subject
to redemption and payments for the purpose of purchasing at
the market price thereof any of said Waterworks Revenue Bondss
Series C9 herein authorized.
Nothing contained in this Section 12 or in this
Ordinance shall prohibit c restrict the right of tie City to
issue additional revenue b.,,IIs for the purpose of alterin-, re -
pairings improving, extending, or enlarging the;..Cityss wat,r-
works utility and to provide that the interest on and the prin-
cipal of said additional revenue bonds shall be payable out of
the net revenues of said utility., contained in the "Waterworks
Department Fund" referred to in :lection 8 of this Ordinance,
provided at the time of the issuance of such additional revenue
bonds that the City shall not be Ind default in the performance of
any covenant or agreement herein contained, and provided further
that such additional revenue bonds shall be junior and subordinate
to the Waterworks Revenue Bondss Series C9 herein authorized so
that if at any time the City shall be in default in paying either
interest on or principal of the Waterworks Revenue Bondss Series
Cs herein authorized, or if the City shall be in default in mak-
ing any payments required to be made by the provisions of this
Ordinances the City shall make no payments of either interest on
or principal of said junior and subordinate bonds until said
default or defaults be cured and no default shall exist on the
part of the City under the covenants, agreements and conditions
contained in this ordinance.
Santa �►, ..$,. * If at any time the moneys in the "Waterworks
Department Fund"s referred to in Section 8 of this ordinances shall
be insufficient to make any of the payment hereinbefore provided
by Sections 99 109 11 and 12 of this Ordinance on the date or
dates hereinbefore specified, the City shall make good the amount
of such deficiency by making payment thereof in the order herein-
before in said sections specified out of the fhmt legally avail-
able revenues thereafter accruing.
SentIn,JA, Moneys held in the "Reserve Fund for Water-
works Revenue Bonds, Series Bps "Reserve Fund for Waterworks
Revenue Bonds, Series Cop and in the "Waterworks Replacement and
Extension Fund" may be invested by the City, if at the time per-
mitted by law, in bonds or other obligations of the United States
Government or unconditionally guaranteed by the United States
Government# having a fixed redemption value or marketable issues
maturing within ten (10) years from the date of purchase.
Section li. The City of Salinas Kansas, covenants
with each of the purchasers or owners of any of the Waterworks
Revenue Bondss Series Cs herein authorized, that so long as any
of said bonds remain outstanding and unpaids
(a) The City will fix# establish, maintain and
collect such rates, fees or charges for
the use of or services rendered by the water-
works utility of said Citys including exten-
sions and improvements thereto# which rates#
fees* or charges shall be sufficient to pay
the cost of operations improvement and mainte-
nance of said utility# provide an adequate de-
preciation fund, and pay the principal of and
the interest on all waterworks bonds issued
by said City against said utility.
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(b) Alone of the facilities or services afforded
by the waterworks utility of the City will
be furnished to any water user without a
reasonable charge being made therefors ex-
cept to the City itself. If at any time the
revenues of said utility are insufficient
to pay the cost of operations maintenance
and improvement of such utility, provide an
adequate depreciation funds and pay the princi•.
pal of and interest upon the $3329000.00 prin-
cipal amount of Waterworks Plant Revenue Bonds,
Series As of the City# dated October 1s 1932s
$200#000.00 being now outstanding# and the
$1,0009000.00 principal amount of Waterworks
Revenue Bonds# Series Bs of the City# dated
August is 1953# authorized by Ordinance No. 57989
and the $600,000.00 principal amount of Water-
works *nue Bonds, Series C# of the City,
- ` dated( q, bei is 1955,, herein authorised# the
reasonable cost and value of any water or
water service furnished by said utility to the
City shall be charged against the City and pay-
ment therefor shall be made monthly from the
general funds of the City and such payment shall
be made into the "Waterworks Department Fund"
referred to in Section 8 of this ordinance.
(c) The City will maintain it good repair and work-
ing order the waterworks utility of said City
and will operate the same in an efficient manner
and at reasonable costs provided, however# that
said. City may abandon or cease to operate any
property which has become non-productive or
otherwise unuseable to the advantage of the City.
(d) The City will not mortgage* pledge or otherwise
encumber its waterworks utility or any part thereof
or any extension or improvement thereto# nor will
it sell, lease or otherwise dispose of said water-
works utility or any material part thereof.
(e) The City will carry and maintain such reasonable
amount of insurances including public liability and
workmen's compensation insurances on its water-
works utility and on its operation as would
normally be carried by a private corporation engaged
in a similar type of business. All of the costs of
said insurance shall be paid as an operating cost
out of the revenues of the waterworks utility of
said City.
(f) The City will keep proper books, records and
accounts (separate from all other records and
accounts) in which complete and correct entties
will be made of all transactions relating to the
waterworks utility of the City. Said books will
be kept by the City according to standard account-
ing practice as applicable to the operation of said
waterworks utilities by municipalities. Annually*
at the end of each calendars fiscal or operating
years the City will cause an audit to be made by
a competent firm of independent auditors of the
operation of its waterworks utility; and if said
1
audit shall disclose that proper provision has not
been made for all of the requirements of this ordi-
nance and of the laws of the State of Ransas, then
the governing body of the City will promptly pro-
ceed to cause to be charged for the utility service
rendered by the waterworks utility of said City
rates which will adequately provide for the require-
ments hereinbefore and in the laws of the State of
Kansas set forth. Within thir.ty00) days after
the completion of said audit a copy of the same
will be filed with the City Clerk and will be open
to public inspection, and a copy thereof will be
mailed to Lucas, Eisen & Walcherle$ Inc., or its
successor or successors,
(g) The City will punctually perform all duties with
respect to the operation of its waterworks utility
imposed upon the City by the Statutes of the State
of Kansas.
Section 16, The City of Salina, Kansas$ shall have the
right, if it shall find it desirables to refund any of the Water-
works Revenue Bonds* Series C, herein authorized then subject to
redemption or becoming due, under the provisions of any law then
available. Said bonds or any part thereof may be refunded, and the
refunding bonds so issued shall enjoy complete equality of pledge
with any of the bonds issued hereunder which are not refunded$ if
any therebe, provided, however, that if only a portion of said
bonds then outstanding be refunded$ and if said bonds are refunded
in such manner that the interest rate on the refunding bonds is
increased, or if the refunding bonds mature at a maturity date
earlier than that of the bonds being refunded, then such bonds may
be refunded only by and with the consent of all of the holders of
the bonds herein authorized, not refunded.
Seg, lIgn 1 7. The provisions of this ordinance shall consti-
tute a contract between the City of Salina, Kansas, and the holders
of any one or more of said bonds may, by suit, action, mandamus,
injunction or other proceedijtgs, either at law or inequity, enforce
or compel performance of all duties and obligations required by
this ordinance to be done or performed by said City. Nothing con-
tained in this ordinance, however, shall be construed as imposing
on said City any duty or obligation to levy any taxes either to
meet any obligation contained 'herein or to pay the principal of or
interest on the Waterworks Revenue Bonds, Series C$ of said City
herein authorized.
Section 18. This ordinance shall take effect and shall
be in.. full force from and after its publication once in The Sa-
lina Journal$ the official City newspaper.
Introduced October 18th 1955•
November 'i , }
Passed _ _........... r. , .._.�._,�.._... 935.
)8'x A
(", LL
Mayor
Attests
City Clerk
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