5721 Issue Waterworks Revenue Bonds1
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ORDINANCE NUMBER
CO: OLIDAT[C - (Published in the Salina Journal
1952)
AN ORDINANCE authorising and directing the issuance of waterworks revenue bonds,
Series "A", of the City of Salina, Saline County, Kansas, in the principal sum
of $ 3320000600, for the purpose of1providing funds to pay a part of the cost of
extending and enlarging the mains and improving the munieipal waterworks plant
of said city
j WHEREAS, the City of Salina is a municipality as defined by Section 10-101 and as
defined in Article 12 of Chapter 10, all in the General Statutes of Kansas, 1949;
and,
WHEREAS, the City of Salina, Kansas, has a population of less than 100,000 inhabi-
tants, owns and operates a waterworks plant and system of a revenue producing
sharacater for the purpose of furnishing said city and its inhabitants with water;
and,
WHEREAS, no other waterworks plant or system is operated in or for the use of said
city and its inhabitants by a private utility; and
WHEREAS, said city is authorized by the laws of the State of Kansas to issue general
obligation bonds for the acquisition, construction, reconstruction, alteration,
repair, extension or enlargement of such utility, and by the terms of said Article
12, Chapter 10 of the General Statutes of Kansas, 1949s is authorised and empowered
to issue and sell revenue bonds of the city to pay the cost of extending, enlarging
the mains and improving such a utility; and
WHEREAS, the governing body of said city has found it to be necessary and adviseable
for the said waterworks plant and system to be extended, enlarged and improved at
a total cost of #350,000.00 and that it is necessary to issue revenue bonds to
pay #3320000.00 upon the cost thereof, and said governing body now finds that such
project will not cause duplication of existing utility service furnished by a
private utility; and
.EAS, the governing body of said city duly caused to be published a notice of
its intention (1) to initiate and complete said project and (2) to issue revenue
bonds, as aforesaid, to pay a part of the cost thereof, all in compliance with
the statutes in such oases made and provided; and
WHEREAS, no written protest was filed relating thereto as authorized by said notice
and the law relating thereto; and
'VIAS, plans, specifications and estimates of the cost of such extension, enlarge-
ment and Improvement have been filed with the City Clerk of said city and contracts
will be let to complete said project; and
WHEREAS, it is necessary for said city, to proesed to issue, sell and deliver said
bonds in the principal sum of #332,000.00 to pay a part of the cost of the same;
and
WHEREAS, no such bonds are now outstanding or liens on the revenues of said depart-
ment;
NOIR, THEREFORE, BE IT ORDAINED BY THE BOARD OF 00MUSSIONERS OF THE CITY OF SALIVA,
KANSAS:
Section 1. That it is necessary to extend, enlarge the mains and improve the
existing facilities of the Waterworks Department of the City of Salina, in accord-
ance with the plans, specifications and estimates on file with and In the Office
of the City Clark of said city and approved by this board.
Section 2e That #18,000.00 of the estimated cost of said project shall be
defrayed from surplus revenues now on hand in the waterworks Department fund of
said city.
Section 3. That the balance of #332,000.00 of the cost of such improvement
amd extensions of said waterworks plant of said city, as aforesaid, be paid by
the issue and sale of Waterworks Department Revenue Bonds of the City of Salina,
under authority and provisions of Article 128 Chapter 10 of the General Statutes
Of Kansas, 1949 and Article 1, Chapter 10 of the said Geheral Statutes of Kansas,
1949, and that for such #332,000.00 there shall be and are hereby issued, waterw,rks
plant revenue bonds of the City of Salina, Kansas, in the aggregate sum of #332,00000
as hereinafter provided, to-witx
�ONSLIUDATED -SILI i1 %
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Section 4• That said issue of revenue bonds shall consist Of three hundred
thirty-two (332) bonds, each of the denomination of One Thousand Dollars
($4000.00), numbered one to three hundred thirty -tyro inclusive, due serially
bonds numbered 1 to 66 each bearing interest at the rate of
shereinafter not Porth,
per annum andlbonds num ere o eac an a ear�ng Wn r
- X
at the rate of 1 e ann
X t herate /, payable April let and October lot of each
year after the effective date of said bonds, the first interest payment date to
be April 1, 1953; that interest coupons shall be attached to said bonds; and said
bonds shall be due and payable as follows$ to -crit: bonds numbered one to sixty-
six, inclusive, in the aggregate scan of $66,000,00 being payable October is 19538,
bonds numbered sixty-seven to one hundred thirty -tyros inclusive, in the aggregate
sum of #66,1000.00, being payable October is 1954s, bonds numbered one hundred thirty-
three
hirtythree to one hundred ninety -eights in the aggregate sum of $66,OOO*OO being payable
October 1, 1955, bonds nmabered one hundred ninety-nine to two hundred sixty -fives
inclusive, in the aggregate sun of $67,000.00 being payable October is 1956, and
bonds numbered two hundred sixty -nix to three hundred thirty-two, inclusive,
in the aggregate sum of $67,000.00 being payable October 1, 1957; provided always,
however, the City of Salina, Kansas, expressly reserves the right and option to
calls redeem, and pay any or all of such bonds for retirement on the first day of
October of any year prior to the maturity thereof by written notice of intention
so to do delivered more than thirty (30) days prior to the said first day of October
of said year to the Fiscal Agency of the State of Kansas and by publication notice
of said intention so to do once in the official d#tate paper at least thirty (30)
days prior to said date, as aforesaid, and provided further that said right,
privilege and option of call and redemption so reserved shall be exercised by call.
Ing said bonds in inverse numerical order*
Section N That said revenue bonds shall be signed by the Mayor and attested
by the Clerk of said City of Salina, Kansans and shall have the corporate seal of
said city thereto affixed, and the interest coupons on said bonds shall be signed
by the Mayor and the Clerk, provided, however, that the facsimile signatures of
said Mayor and City Clerk may be lithographed or printed thereon, and both the bonds
and coupons thereto attached shall be payable at the Fiscal Agency of the State of
Kansas, located in the Office of the State Treasurer of the State of Kansas in
Topelra, Kansas, all as is provided by the laws of Kansas applicable thereto,
Section 6. That said bonds shall be executed in the form and, shall contain
certain recitals substantially as following, torwits
COI:SO�i DATE U - SA Li`�-
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UNITED STATES OF AMERICA
C91 ffOFF9E
CITY OF SAL I NA
WATMMRKS PLANT RE7EM BDNDS
#1' x_00 ..._
KNOW ALL MEN BY THESE PRESENTS:
Series "A"
No.
That the City of Salina, in the County of Saline, State of Kansas, hereby
acknowleges itself, for malue reosived, to be indebted to and promises to pay
to the bearer the sun of One Thousand Dollars (#1#000.00) in lawful money of the
United States on the let day of October, 19�_, with interest thereon at the
rate of per centum (n per annus, payable semi-annually on the first
days of !pRl and October of each year after the date hereof until the said prin-
cipal sum shall have been paid, upon the presentdtion and surrender of the proper
interest coupon hereto attached, bearing the facsimile signatures of the Mayor and
Clerk of said city, as they severally become due, and both principal and interest
are payable at the Fiscal Agenoy of the State of Kansas, at the office of the
State Treasurer in the City of Topeka., Kansas
That the principal and interest of lmdmrm said bond as aforesaid shall be paid
solely and exclusively by and from the revenues derived from and shall constitute
a lien upon the revenue produced from the Water plant of said City of Salina, Kansas,
from the rates, fee or charges collected by said city from the operation of said
planter and from no other source or fund, over and above Amd subject to the cost of
operation, maintenance, and improv etaent of said Water plant, the provision of an
adequate depreciation fund therefor, and for the provision for payment of the
principal and interest on outstanding general obligation bonds arising from the
construction of operation of said plant and not payable from any other source,
and for the payment of the principal and interest upon said bond when due. The
said City of Saliba, Kansas, hereby counts and aggees to fix rates, fees and
charges sufficient to Mmse to be charged for the utility service by said water
plant rendered rates which will adequately provide for the requirements hereinbefore
set forward, by appropriate enactment of the governing body of said city or other
proper officers having the control and management thereof and to do all other acts
and things in such case made and provided by the Statutes of Kansas in order to
insure the prompt payment of this bond and the interest thereon at aforesaid.
That this bond is one of a series of a total sum and amount of #3328000.000 oon-
slating of three hundred thirty -Iwo bonds of like date, tenor, denomination, and
interest rate, excepting the aerial number and maturity thereof, issued by said
City of Salina, Kansas, to pay a part of the cost of extending, enlarging the mains
and improving the Waterworks Plant of said city, raider and by virtue of the pro-
visions of Article if, Chapter 108 General Statutes ofKansas, 1949, and of Article
1, Chapter 10 of said General Statutes of Kansas, 1949, and in oompliance with and
pursuant to an ordinance of said city duly and legally adopted by the Board of
Commlasioners of the City of Salina, Kansas„ on the day of
1952s It is hereby recited, declared and certified mall things, sots and
conditions required to be done and to exist precedent to and in the issuance ce
this bond, have been properly done and performed, and do exist in regular anddue
form as required by t he constitution and the laws of the State of Kansas that this
bond is executed and issued in conformity with the provisions, restrictions and
limitations of the authorities hereinbefore cited, that the principal and interest
thereon will be paid by the City of Salina, Kansas, from the rates, fees and charges
hereinbefore referred to and from no other fund or source, that this bond has been
registered, with all other bonds of this series and issue, in the office of the
City Clerk of the City of Salina, Kansas, and in, the Office of the State Auditor
of the State of Kansas, and that this bond is negotiable.
The right and option to call this bond for payment and redemption on the first
day of October of any year is expressly reserved by the City of Salina, Kansas and
such right and option shall be exercised by notice in writing duly delivered to the
Fiscal Agency of the State of Kansas, at Topeka, Kansas and by publication of said
intention soe 8 by notice published once in the official state
of saa notice b both paper of the State
j " y publicat'o d writing being given more than thirty (30)
days prior to the first day of off said
year in which said option to call is
exercised and upon the eacercis8 of said option to call in the manner and time afore-
said, if this bond is not presented for payment on the first day of October in said
Year in which said option to call is exercised, then the interest payment thereon as
evidenced by the interest coupons hereto attached, shall cease and determine as of
that said date.
IN WITNESS, WIDUMF, the said City of Salina, Kansas, by its Board of Commissioners
has caused this bond to be signed by its Mayor, attested by its City Clerk, its
corporate seal to be affixed hereto, and this bond to be dated on October 1, 1952s
( SEAT, )
fittest: r, Mayor
City 1,ierk
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C0,1SOLMATED - SAL-:
Section 7. That the interest eoupons to be attached to said bonds shall be
substantially in the following form, t6 -wits
INTEREST COUPON
No.
On the first day of , 19 the City of Salina, Kansas, will
pay to bearer Dollars lawful money of the United
State of America, derived so ely from the revenue produced from the Waterworks
Plant of siad city, at the office of the State Treasurer, Topeka, Kansas, being
six months interest on its Waterworks Plant Revenge Bond No, dated,
October 1, 1952.
(SF-kL) Cit f1'
Attests
Chas. E. Banker,
City Clerk
y o sa ina, Kansas
Ward E. Baroefer,
Mayor
the stub of said interest ooupons, and each of them, being in the usual, customary
and statutory form.
Section 8.- In order to pay the principal and interest of said bonds at
maturity, or on call or redemption thereof, it shall be and it is hereby provided
that all revenue derived from the operation of the Waterworks Plant of the City of
Salina, Kansas, shall be paid into the treasury of the municipality and kept in a
separate fund, being the present Waterworks Department Fund of said city= that said
revenue shall be used only for the purpose of paying the cost of pperation, maintenance
alteration, reconstruction, repair, improvement, extension and enlargement of such
utility, and providing for an adequate fund to pay the principal and interest on
the bonds to be issued, as aforesaidg Said city covenants to maintain said special
Waterworks Department F'imd to and until the maturity of the last numbered bond of
this issue, as aforesaid, to pay and deposit into said fund all revenue derived
from said Waterworks Plant as aforesaid and not to mingle or aomingle the same with
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any other monies or fund; that the said bonds shall constitute and be a lien upon
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said revenue so derived as aforesaid, subject only to the preference and priorities
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stated
j hereinbefore
WbLtXM4 and that the governing body of said city shall annually provide
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for the payment of the principal and the interest on said bonds as they severally
become due, in the manner hereinbefore and hereinafter set forward.
jSection 9. In consideration of the premises herein contained, the said City
of Salina, Kansas, does hereby, with any purchaser or owner of said bonds, or each,
any, or all of then, covenant and agree;
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(a) That sufficient revenues from the operation of said Water Plant shall
each year be set aside in a reserve account for the
pay*ent of one year's principal
and interest in addition to the current yearts principal and interest upon said
bonds, which said reserve account shall be established and maintained until the
CO'J SO.! DATED - S4'_I;. 1
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retirement of this issue of bonds in its entirety.
(b),That provision shall be made by appropriate enactment of the governing
body of the said city or other proper officers having the control and management
of the said Waterworks Plant for the payment of said bonds by fisting rates, fees
or charges for the use of and services rendered by said plant sufficient to pay
the cost of operation, improvement, and maintenance of the said Plant, provide an
adequate depreciation fund, and pay the principal of and the interest on said bonds
when due, as well as the payment of the principal of and interest upon general
forth.
obligation bonds outstanding as hereinbefore sett.
(c) No water service shall be furnished by said Plant except for a reasonable
charge therefor, except to the minicipal facilities of said city and in the *=
event funds to meet the provisions of the preceding subparagraph are i nsuff—
icient, then a reasonable charge for said service so furnished said municipal
facilities as aforesaid shall be made.
(d) This issue of bonds shall have priority and preference from and against
said Waterworks Plant, and the revente s therefrom derived, as against any subsequent
issue of bonds against or pledging said Plant or the revenues therefrom.
repair
(e) The said Waterworks Plant shall be kept in good Meed and effective and
efficient working order by said city, and no facility thereof shall be abandoned
unless and until such facility becomes unproductive, during the term of this issue
of bonds.
(f) The said City shall not pledge, mortgage, or sell the said Waterworks
Plant, nor any part thereof, during the term of this issue of bonds.
(g) Reasonable insurance coverage shall be maintained by said City on and
over said Waterworks Plant as an operating cost thereof, including public liability
and workmen(s compensation insurance, during the term of this issue of bohds.
(h) The City shall cause annually an audit to be made by an independent firm
of competent a#ditors of the Waterworks Fund of said City, and if said audit shall
disclose that proper provision has not been made for all of the requirements of the
foregoing, and as provided by law in like cases, then the governing body or other
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officers having the control and management of said Plant shall promptly proceed to
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cause to be charged fro said water service rendered rates which will adequately
provide
4sGMtdO& for such requirements; within thirty days after the completition of said
audit a copy of the same shall be filed with the City Clerk and be open to public
inspection.
(i) All duties imposed by the constitution
and laws of
the State of Kansas
upon the City of Salina or the governing body thereof, in connection with the
operation of said Waterworks Plant or the
Payment of the principal and interest of
this issue of bonds shall be duly and faithfully performed,
(3) This ordinance shall constitute a contract by and between the City of
Salina, Kansas, and any purchaser or owner of these bonds, or each an
theins the provisions of wbe en£vrceabhich shall ' y, or all of
� le, and the breach of
which shall be
CO N, O'.I D,IT ED -Sk LI^.4
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actionable at law or equity in amy appropriate prooeeding, but no jurisdiction
shall therefrom be acquired to compel, require, or raise the duty in said city
of Salina, Kansas or its governing body to levy taxes to pay either the principal
or interest of said bonds.
Section 10. That the Mayor and City Clerk are hereby authorized and directed
without unnecessary delay to cause said bonds to be prepared and to execute the
same as in this ordinance provided and that when executed said bonds shall be reg—
istered with the City Clerk of said City of Salina, Kansas, and the auditor of the
State of Kansas, as required by law, and shall be by the Mayor of said city sold
as provided by law, and the proceeds therefrom used in the extension and improve—
went of the Waterworks Plant of said city as hereinbefore set forward.
force
Section 11. That this ordinance shall take effect and be in full/from and
after its publication once in the official city paper.
Attestt
Intro ducedt September 8, 1952
Passedr1952