5798 Issue GO Bonds, Series B0
CONSOLIDATED -SALIN',
ORDINANCE NUMBER
.in the Salina Journ;
5798
,AN ORDINANCE authorizing and directing the issuance of $1,000,000.60 principal
amount of waterworks revenue bonds, Series "B", of the City of Salina, Kansas,
for the purpose of extending, enlarging and improving the waterworks plant and
system owned by said city, prescribing the form and details of said revenue bonds,
providing for the collection, segregation and application of the revenus of said
waterworks utility for the purposes authorized by law, including paying the cost
of operation, maintenance and improvement of said utility, providing for an
adequate depreciation fund and paying the principal of and the interest on the
waterworks revenue bonds of said city issued against said utility.
WHEREAS, pursuant to the provisions of Sections 10-1201 to 10-1212, inclusive,
General Statutes of Kansas, 19119, and Section 10-1201, 1951 Supplement to the
General Statutes of Kansas, 1949, the governing body of the City of Salina, Kansas,
(hereinafter called the "City"), heretofore caus3d, to be published in the official
paper of the City a notice of the intention of the City to make extensions,
enlargements and improvements of the waterworks plant and system owned by said city
by the construction and equipping of a water treatment plant, and to issue water-
works revenue bonds of said City in a principal amount not exceeding $1,000,000.00
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 pro-
test was filed with the City Clerk of the City against such proposed extensions,
enlargements and improvements or against the issuance of said waterworks revenue
bonds, and
WHEREAS, Wilson and Company, the consulting engineers of said city, have prepared
plans 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 $1,000,000.00
and that it is necessary at this time that said Cit
proceed forthwith to issue
deliver its waterworks revenue bonds in the principal amount of $1,000,000.00 foand
the purpose of paying the cost of said improvements, and
i
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS,
AS FOLLOWS:
Section 1. That the governing body of the City of Salina, Kansas, hereby
finds and determines that the cost of making extensions, enlargements and improve-
ments of the waterworks plant and system owned by said city as hereinbefore referred
to and as provided in the plans and specifications therefor prepared by the City's
consulting engineers, Wilson and Company, on file inthe office of the City Clerk,
is in the amount of $4000,000.00; that said extensions, 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 amendments 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, enlarge
and improvements of the waterworks utility owned by said city by the construction
and equipping of a water treatment plant, all in accordance with the plans and spec-
ifications of Wilson and Company, the consulting engineers of said City, there is
hereby authorized and directed to be issued an issue of Waterworks Revenue Bonds,
I
Series 11B11, of the City of Salina, Kansas, in the principal amount of $1,000,000.00.
The City of Salina, Kansas, has heretofore issued and now has outstanding
332,000.0o
Principal amount of Waterworks Plant Revenue Bonds, Series "A°, of said city, dated
October 1, 1952, said bonds having been authorized by and described in Ordinance
C CN SOLPI.\T E J -SAL. -::A
1
1
Ll
Number 5721 of said City, passed on September 29, 1952, and said Waterworks
Plant Revenue Bonds, Series "A", dated October 1, 1952, in the prin&ipal amount
of $332,000.00, shall have preference in payment both as to principal and interest
over the $1,000,000.00 principal amount of Waterworks Revenue Bonds, Series 'B",
Of said City herein authorized.
Section 3. Said issue of Waterworks Revenue Bonds, Series "B", shall consist
of 4000 bands, numbered from 1 to 1,000, inclusive, each of said bands being in
the denomination of $12000.00. All of said bonds shall be dated August 1, 1953,
and said bonds shall be numbered and shall become due serially on August 1 in
each year, as follows:
NUMBERSMATURITY
TOTAL
AUERJST 1
1-63
64-126
$63,000
$63,000
1958
1959
127-189
$63,000
1960
190-252
253-315
$63,000
$63,000
1961
316-378
$63,000
1962
1963
379-441
442-504
$63.,000
$63000
1964
505-566
$62,000
1965
1966
567-628
629-690
$62,000
$62,000
1967
691-752
$622000
1968
1969
753-814
815-876
$62,000
$62,000
1970
877-938
$62,000
1971
1972
939-1000
$62,000
1973
Bonds numbered 1 to 63, inclusive, shall become due without option, of prior
Payment but bonds numbered 64 to 1,000, inclusive, and each of them, may be called
for redemption and payment at the option of said City on August 1, 1958, or on
August 1 in anY year thereafter prior to the maturity of such bonds, at the par
value thereof together with accrued interest thereon to date of redemption, together
with a premium Mich shall be Three and three-quarters per center (3-3/4%) of the
Principal amount of any bond redeemed on said August 1, 1958, and which premium
shall thereafter be reduced by one quarter of one per cent (I of 1%) of the principal
amount of any bond so redeemed for each year between said, August 1, 1958, and the
date of redemption and payment.
In the event said City shall elect to call for redemptionand payment as afore-
said any of said bonds numbered 64 to 1,000, inclusive, 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 numerical order of said boyids, thP, outstanding
bonds having the highest number being the first bond called for payment. In the
event of any such redemption, said City shall publish once 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 payment, 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 notice of redemption to Stern Brothers & Co., of Kansas City, Missouri, or
its successor, thirty 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.
Said bonds shall bear interest as follows:
Bonds numbered 1 to Ohl, inclusive, Three and one-half per
cent (3-N) per annum; and
Bonds Numbered 442 to 1,000, inclusive, Three and five-
eighths per cent (3-5/8%) per annum.
Said interest shall be payable semiannually on February 1 and August 1 in each year,
beginning February 1, 1954.
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.
x Section 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 coupons shall bear the facsimile signatures of the Mayor and City
Clerk of said city.
Section 5. Each of said bonds and interest coupons, and the certificates
attached thereto, shall be in substantially the followingform:
No.
UNITED STATES OF ANERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
WATEIRWORKS REVENUE BOND-SERIES-"B"-
KNOW
OND_SERIES"B"-
$1,000.00
KNOW A -LL MEN BY THESE PRESENTS: That the City of Salina, in the County of Saline,
State of Kansas, for value received, hereby promises to pay, out of the revenues
hereinafter specified, to the bearer the sum of
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
percent ( %) per annum, payable semiannually on February 1st and
ugust 1st
in each year until the said principal sum shall have been paid, upon presentation
and surrender of the interest coupons hereto attached,bearing the facsimile signatures
of the Mayor and City Clerk of said city as said coupons severally become due, both
principal and interest on this bond being payable at the Office of the State Treas-
urer, in the City of Topeka, Kansas.
In bonds numbered 64 to 1,000, inclusive, insert here to following paragraph con-
taining redemption privilege:
This bond may be called for redemption and payment at the option of the City of
Salina, Kansas, on August 1, 1958, or on August 1st in any year thereafter prior
to the maturity of this bond, at the par value thereof together with accrued interest
thereon to date of redemption, together with a premium which shall be Three and
three-quarters per cent (3-3/4%) of the principal amount of this bond if redeemed
an August 1, 1958, and which premium shall thereafter be reduced by one quarter of
one per cent (4 of 1%) of theprincipal amount of this bond for each year between
August 1, 1958 and the date of redemption and payment; provided, however, that all
t
of the bands of the series of which this bond is one which are subject to redemption
and payment prior to their ultimate maturity, being bonds numbered 64 to 1,000,
inclusive, shall be redeemed and paid prior to their ultimate maturity only in the
inverse numerical order ofsaid bonds, the outstanding bond having the highest number
being the first bond called for payment, and provided further that in the event
of any such redemption, said City shall publish once in the official State paper
of the State of Kansas not less than thirty days prior to the date on which this
bond is called for redemption and payment, a notice of the intension of said City
to call and pay this bond, this bond being described by number. If this bond be
called for redemption and payment as aforesaid, interest on this bond shall cease
from and after the date for which such call is made, provided funds are available
for the payment of this bond at the price above specified.
This bond is one of an authorized issue of 1,000 bonds of like date, denomination
and tenor, except as to number, interest rate, privilege of redemption, and maturity,
aggregating the principal amount of $1,000,000.00, numbered from 1 to 1,000, inclusive,
each in the denomnation of $1.,000.00, issued for thepurpose of paying the cost of
making, extensions, enlarg4ments and improvements of the waterworks plant and system
owned by said City, by the construction and equipping of a water treatment plant,
by the authority of andin full compliance with the provisions, restrictions, and
limitations of the Constitution and statutes of the State of Kansas, including Sec-
tions 10-1201 to 12-121, inclusive, General Statutes of Kansas, 1949 and all amend-
ments thereto, including Sections 10-1201, 1951 Supplement to the General Statutes
of Kansas, 1949, and all other provisions of the laws of said state applicable
thereto, and this bond and all interest hereon are to be paid by said City of Salina,
Khnsas, soler from the revenues derived from the rates, fees or charges collected
by said City from the operation of its said waterworks utility and not from any
other fund or source. Said City of Salina, Kansas, has heretofore issued and on the
date hereof has outstanding its Waterworks Plaint Revenue Bonds, Serines A, in the
principal amount of $3322000.00, dated October 1, 1952, and, under the provisions
of the laws of the State of Kansas, said bonds and the interest thereon have Pref-
erence in payment out of the revenues derived by said City from the operation of
its waterworks utility prior to the payment of this bond and the series of which
this bond is one. This bond has been duly registered in the office of the Clerk
of the City of Salina, Kansas, and in the office of the Auditor of the State of
Kansas, and this bond is negotiable.
•
And it is hereby declared and certified that all acts, conditions and things
required to be done and to exist precedent to and in the issuance of this bond have
been properly done and performed and do exist in due and regular form and manner
as require by the Constitution and laws of the State of Kansas.
IN WITNESS iniMEOF, the said City of Salina, in the State of Kansas, by its governing
body, has caused this bond to be signed by its Mayor and its corporate seal to be
hereto affixed, attested by its City Clerk, and the coupons hereto attached to be
signed with hhe facsimile signatures of said officers, and this bond to be dated this
.First day of August, 1953. f
Attest:
City 1lerk
) _ ` _ - - - _ - - -
STATE OF(ANSAS
) SS
COUNTY OF SALINE )
I,the undersigned, City Clerk of the City of Salina, Kansas, hereby certify
that the within Waterworks Revenue Bond, Series B, of the City of Salina, Kansas,
has been duly registered in my office according to law.
WITNESS my hand and official seal thisof
------ � , 1953.
City er
C0N,10I.II)h.TFD-$ 1I.:\:-
of the $1,000,000.00 principal amount of Waterworks Revenue Bonds, Series B, herein
authorized.
Section 8. So long as any of the Waterworks Revenue Bonds, Series B, of the
City of Salina, Kansas, herein authorizedremain outstanding and unpaid, said City
covenants and agrees that it will maintain the "Waterworks Department Fund" referred
to in Section 8 of Ordinance Dumber 5721 of said City passed September 29, 1952, being
the ordinance which authorized the issuance of $332,000.00 principal amount of
Waterworks Plant Revenue Bonds,Series "A", of said City dated October 1, 1952, 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 constructed 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 Department Fund," shall be used only
for the purposes authorized by law, including paying the cost of operation, main-
tenance., alteration, 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
I
October 1, 1952, and paying the principal of and interest on the Waterworks Revenue
Bonds, Series B of the City dated AugQst 1, 1953, herein authorized
r
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Section 9. There is Yereby created in the treasuryof the City a sinking fund
for the payment of the Waterworks Revenue Bonds, Series B, herein authorized, and
the interest thereon, said fund to be known and hereinafter referred to bs the
"Sinking Hind for waterworks Revenue Bonds", Series B, and so'1
ong as any of said
i
bonds remain outstanding and unpaid, the City covenants and agrees that it will
maintain said Sinking Flind and will administer the same in accordance with all of
the provisions contained in this mmlg ordinance, subject to the provisions of the
States of the State of Kansas applicable thereto. The Cit out
y of the "Waterworks
Department Fund" hereinbefore referred to in Section 8 of this ordinance, after
j Paying the cost of operation and maintenance of said waterworks utility and pro-
viding for any other obligations imposed by law, andsubject to the obligations
imposed upon by the City by Ordinance IJumber 5721, hereinbefore referred to, with
respect to $332,000.00 principal amount of Waterworks Plant Revenue Bonds, Series
dated October 1, 1952, will pay into said "S'
zxiki Fund for
� Waterworks Revenue
Bonds, Series B," at monthly intervals, beginning on August 1, 1953, and continuing
on the first day of each succedd'
zng month, an amount not less than (I) one sixth
i
of the amount of i:nterestthat will become due on said bonds on -the next succeeding
interest payment date, and (II) beginning on August 1, 1957, one twelfth 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 blind" fcr Waterworks
Revenue Bonds, Series B," shall be expended and used for the sole purpose of paying
the interest on said principal of said Waterworks Revenue Bonds, Series B, herein
authorized.
Section 10. 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 B, and so long as any of the Waterworks Revenue Bonds, Series
B, 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 beginning on September 1, 1953, 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: Number 5721, here
inbefore referred to, with respect to $332,000.00 principal amount of Waterworks
Plant Revenue Bonds, Series A, dated October 1, 1952, until there shall have
accu mzlated in said "Reserve Fund for Waterworks Revenue Bonds, Series "BIT, the
sum of One Hundred Thousand Dollars. If at any time or times the amount of cash
on hand in the "Sinking Fund for Waterworks Revenue Bonds, Series "B", created by
Section 9 of this ordinance, shall be insufficient to pay either the interest on or
the principal of said Waterworks Revenue Bonds, Series B, as and when the same
become due, the City shall use the moneys in said"Reserve Fund for Waterworks Revenue
Bonds, Series B", 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 B. After said Reserve Fund aggregates the principal amount of One Hurd red
Thousand Dollars, no further payments into said fund shall be required or made, but
If the City shall ever be compelled to expend and use a part of themoneys in said
Reserve Fund for the pyn'pose aforesiad,then the City shall continue or resume monthly
payments into said Reserve rund as aforesaid until there shall have accumulated in
said Reserve Fund not less than the sum of One thousand Dollars. No part of the
moneys of said Reserve Fund shall ever be expended or used by said City to call any
of said Waterworks Revenue Bonds, Series B, for payment prior to their ultimate
maturity unless all of said outstanding bonds be called for payment and funds are
available to paym the same according to their terms.
Sectionll. There is hereby created in the treasury of the City a special
fund to be known and hereinafter referred to as the "Waterworks Replacement and
Extension Fund" and, so long as arry of the Waterworks Revenue 3onds, Series B, 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 covenants
and agrees to pay into said "Wateraworks Replacement and Extension Fundi after making
the payments hereinbefore required to be made under the provisions of Sections
8,9, and 10 of this ordinance, and when there shall have accumulated and be on
hand in the "Reserve Fund for Waterworks Revenue Bonds, Series B," created by
Section 10 of this ordinance the sum of One Hun&red Thousand Dollars, and subject
to the obligations imposed upon the City by Ordinance Number 5721, hereinbefore
referred to, with respect to $332,000.00 principal amount of Waterworks Plant
Revenue Bonds, Series "A", dated October 1, 1952, at monthly intervals, all legally
available revenues in the "Waterworks Department Fund" referred to in Section 8 of
this ordinance, until there shall have accumulated in said"Waterworks Replacement
and Extension Fund the sum of Fifty Thousand Dollars (.$50,000.00). If at any
time the governing kW body of said city shall determine that: it is necessary or
advisable to use any moneys in said "Waterowkrs Replacement and Extension Fund"
for the purpose of making any replacement or repair in said waterworks utility
necessary in order to assure the successful continued operation ofsaid utility or
to improve, extend or enlarge said waterworks utility, then said city shall have
the right to use moneys in said "Waterov&rs Replacement and Extension Fund" for the
purpose of paying the cost of said replacement and repair or for the purpose of
paying the cost of such improvement, extension or enlargement. Aftersaid "Water-
works Replacement and Extension Fund" aggregates the principal amount of Fifty
Thousand Dollrs ($50,000.00), provided, however, the total payments into said
"Waterworks Replacement and Extension Fund" shall not exceed Fifty Thousand Dollars
in any one calendar, fiscal or operating year. If at any time or times the amount
on hand in the "Sinking Fund for Waterworks Revenue Bonds, Series B", hereinbefore
created by Section 9 of this ordinance and in the "Reserve Fund for Waterworks
Revenue Bonds, Series B,", hereinbefore created by Section 10 of this ordinance,
in -
shall be/sufficient to pay either the interest on or the principal of said Waterworks
Revenue Bonds, Series B, as 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
moneys in said "Waterworks Replacement and Extension Fund" for the purposex of paying
said interest or principal and to prevent anydefault in the payment of either interest
on or principal of said Waterworks Revenue Bonds, Series B.
Section 112. When the City of Salina, Kansas, shall have made all the
payments at the time requiredto be made under the provisions of Sections 8, 9, 10
and 11 hereof, and when there shall hava accumulated and be on zkft hand in the
"Reserve Fund for Waterworks Revenue Bonds, Series B," created by Section 10
of this ordinance the sum of One Hundred Thousand Dollars, and when there shall have
accumixulated and be on hand in the "Waterworks Replacement and Extension Fund"
created by Section 11 of this ordinance, the sum of Fifty Thousand Dollars,and if
the City shall not be in default in the performance of any covenant or agreement
contained in Ordinance Number 5721 of said City authorizing $332,000.00 principal
amount of Waterowkrs Plant Revenue Bonds, Series "A«, dated October 1, 1952, and
if the City shall not be in defaalt in the performance of any = covenant or
agreement herein contained, the City may use revenues then available in the
"Wateroi&rs Department Fund" referred to in Section 8 of this ordinance for the
purpose of making replacements or repairs in its waterworks utility or for the
purpose of improving, extending or enlarging the same, or for the purpose of
redeeming and paying prior to their ultimate maturity in accordance with the pro-
visions hereinbefore and in the bonds set forth, the Waterworks Revenue Bonds,
Series B, herein authorized, including the interest and premium thereon, or if none
of said bonds is at the time subject to redemption and payment, for the purpose
of purchasing at the market price thereof any of said Waterworks Revenue Bonds,
Series B, herein authorized.
x Nothing contained in this Section 12 or in this ordinance shall prohibit
or restrict the right of the City to issue additional revenue bonds for the
purpose of altering, repairing, improving, extending or enlarging the City's
waterworks utility and to provide that the interest on and principal 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 Section 8 of this
ordinance provided at the time of the issuance of such additional revenue bonds
the City shall not be in 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 Bonds, Series B, herein auth-
orized, so that If at any time the City shall be in default in paying either interest
on or principal of the Waterworks Revenue Bonds, Series B, herein authorized, or if
the City shall be in default in making any payments required to be made by the pro-
visions of this ordinance, 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.
Section 13. If at any time the moneys in the "Waterworks Department Fund"
referred to in Section 8 of this ordinance shall be insufficient to make any of the
payments hereinbefore provided by Sections 9, 10, 11 and 12 of this ordinance on
the date or dates hereinbefore specified, the City shall make good the amount of
such deficiency kV by making payment thereof in the order hereinbefore in said
sections specified out of the first legally available revenues thereafter accruing.
D
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Section 14. Moneys held in the "Reserve Hand for Waterworks Revenue Bonds"
may, Series t'B", and in the "Waterworks Replacement and Extension Fund" maybe
invested by the City, if at the time permitted by law, in bonds or other obligations
of the United States Government or unconditionaly 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 15. The City of Salina, Kansas, covenants with each of the purchasers
or owners of any of the Waterworks Revenue Bonds, Series B, herein authorized, that
so long as any of said bonds remain outstanding and unpaid
(a) The City will fix, establish, maintain and collect such rates, fees or
charges for the use of or services rendered by the waterworks utility of said City,
including extensions and improvements thereto, which rates, fees or charges shall
be sufficient to pay the cost of operation, improvement and maintenance of said
utility, provide an adequate depreciation Bind, and pay the principal of and the
interest on all waterworks bonds issued by said City against said utility.
z (b) None 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
therefor, except to the City itself. If at any time the revenues of said utility
are insufficient to pay the cost of operation, maintenance and improvement of such
utility, provide an adequate depreciation fund, and pay the principal of and interest
upon the $332,000.00 principal amoufrt of waterworks Plant Revenue Bonds, Series A
of the City of Salina, dated October 1, 1952, now outstanding, and the $1,000,000.00
principal amount of Waterworks Revenue Bonds, Series B, of the City, dated August
1, 1953, herein authorized, the reasonable cost and value of any water or water
service furnished by said utility to the City shall be charged a#ainst the City
and payment 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 in good repair
and working order the
waterworks
utility
of said city and will operate the same
in an efficient manner
and at
reasonable cost, provided, however, that said City may abandon or cease to operate
any property which has become nonproductive or otherwise unusable to the advantage
of the City.
(d) The City will not mortgage, pledgeor otherwise encumber its waterworks
utility or any part thereof or any extension or improvements thereto,nor will it
sell, lease or otherwise dispose of said waterworks utility or any material part
thereof.
(e) The City will carry and maintain such r4asonable amount of insurance,
Including public liability and workmen's compensation insurance, on its waterworks
utility and on its operation as would normally be carried by a private corporation
engaged in a similar type of business. All of the cost of said insurance will
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 entries 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 accounting practice as
applicable to the operation of waterworks utilities by municipalities. Annually,
at the end of each calendar, fiscal or operating year, the City will cause an audit
to be made by a competent fimofindependent auditors of the operation of its
waterworks utility, and if said audit shall disclose that proper provision has
not been made for all of the requirements of this ordinance and of the laws of
the State of Kansas, then the governing body of the City will promptly proceed to
cause to be charged for the utility service rendered by the waterworks utility
of said city, rates will adequately provided for the requirements hereinbefore
and in the laws of the State of Kansas set forth. Within thirty 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 Stern
Brothers & Co., 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 lb. The Cityof Salina, Kansas, shall have the right, if it shall find
it desirable to refund arXy of the Waterworks Revenue, Series B Bonds, 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 withapy of
the bonds issued hereinunder which are not refunded, if any there be, 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 increated, or if the refunding bonds mature at a maturity date earlier
than any of the bonds not refunded, then such bonds may be refunded only by and
with the consent of all of the o err of the bonds herein authorized not refunded.
Section 17. The provisions of this ordinance shall constitute a contract
between the City of Salina, Kansas, and the holders of the Waterworks Revenue
Bonds, Series B, of said City, dated Auger t 1, 1953, and the holder of any one
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or more of said bonds may, by suit, action, mandamus, injunction or other pro-
ceedings, either at law or in equity, enforce or compel performance of all duties
and obligations required by this ordinance to be done or performed by said City.
Nothing contained 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 B, 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 Salina Journal, the official City
newspaper.
Attest:
Y
City Clerk
27
Introduced: July U� 1953
Passed: August 3
assed:
ib, 1953
maw