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HomeMy Public PortalAboutORD07664 '7 BILL N0. 13 ORDINANCE NO. 0 AN ORDINANCE AUMIORIZING A1D DIRE CTI G THE ISSUANCE OF NEGOTIABLE INTEREST-BEARL`dG SE1,=- REVENUE BONDS OF THE CITY OF JEFFERSON, COLE COUNTY, MISSOURI, IN THE PRINCIPAL AMOUI,IT OF 01,M- t✓iILLIOci DOLLARS (*l,000,000), OF FIVE MILLION, SIX IiUNIDRED THOUSAND DOLLARS (5,600,000) AUTHORIZED, FOR Tim PURPOSE OF EXTENDING AND IMPROVING THE SE- RAGE SYSTEM OF SAID CITY, INCLUDING THE CONSTRUCTION OF A SEWAGE TREA51ENT PLANT; PRESCRIBING THE- FOIU4 AIM INCIDENTS OF SAID BONDS; PROVIDING FOR THE COLLECTION, SEGREGATION, AND DIS1'''i IBUTION OF THEIREVEIv�JES TO BE DERIVED FROM THE OPERATION OF THE SEv]ERAGE SYSTEM OF SAID CITY IN AMOUNTS SUFFICIENT TO PAY Tit COST OF OPERATION AND MAINTENANCE THEREOF AND THE PRINCIPAL OF AND INTEREST ON SAID BONDS; AND MAKING PROVISION FOR OTHER FUNDS IN CONNECTION THERES•TITH. IMEREAS, the City Council of the City of Jefferson, Cole County, Missouri, having made and having caused to be made extensive studies concerning the adequacy of the existing sewerage system of said City, heretofore has found and does now again find and determine, upon the advice of competent engineers, that the said sewerage system is in need of extension and improvement, including, but not limited to, the laying of more adequate sewer lines and the construction of sewage treatment facilities; said sewerage system and all extensions and improvements thereto to be owned exclusively by said City; and STMWA.S, the said City Council heretofore has found and does now again find and determine, upon the advice of competent engineers, that the estimated cost of constructing such improvements and extensions is Five Million, Six Hundred Thous- nd Dollars ($5,600,000); and 1*1EREAS, the aforesaid sum is not now available in the treasury of said City of Jefferson; and IMEREAS, the said City is authorized, under the provisions of Section 250.010 et seq., Revised Statutes of Missouri, to borrow money for the aforesaid pur- pose and to evidence such loan by the issuance of bonds payable solely from the rev- enues to be derived from the operation of the sewerage system of said City, as so ex- tended and improved; provided, that the issuance of such revenue bonds be authorized at an election held for that purpose; and • 2. WHEREAS, the City Council of said City, by Ordinance No. 741, adopted on the 19th day of August, 1963, hereinafter referred to, did find and determine and does now again find and determine that it is necessary and in the public inter- est and essential for the protection of the public health that the aforesaid con- templated improvements be constructed; and WHEREAS, on the 21st day of August, 1963, the Mayor did approve the afore- said Ordinance No. 732 of said City entitled "AN ORDINANCE PROVIDING FOR AND DIRECT- ING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF JEFFERSON, COLE COUNTY, MISSOURI, AT A SPECIAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY, THE 8th DAY OF OCTOBER, 1963, OF A PROPOSITION FOR THE ISSUANCE OF SEWER REVENUE BONDS OF SAID CITY TO PROVIDE FUNDS FOR THE PURPOSE OF EXTENDING AND IMPROVING THE SEWERAGE SYSTEM OF SAID CITY, INCLUDING THE CONSTRUCTION OF A SEWAGE TREATMENT PLANT"; and WHEREAS, it was ordered and directed by the aforesaid Ordinance No. 7411 that a special election be held in the City of Jefferson, Missouri, on Tuesday, the 8th day of October, 1963, for the purpose of submitting to the qualified electors of said City the following proposition; PROPOSITION "Proposition to issue the sewer revenue bonds of the City of Jefferson, Missouri, to the amount of Five Million, Six Hundred Thousand Dollars ($5,600,000), to provide funds for. the purpose of extending and improving the sewerage system of said City, including the construc- tion of a sewage treatment plant; said bonds to be payable solely from the revenues to be derived from the operation of said system." and WIIEREAS, as directed by the aforesaid Ordinance No. 743.1; -the City Clerk of said City did prepare and cause to be published in the Post-Tribune, a daily newspaper published and .of general circulation in said City, a notice of said special election in substantially the. form as set forth in the aforesaid Ordinance; said ' 3. notice having been published in said newspaper on the 12th, 19th, and 26th days of September, 1963, and on the 3rd day of October, 1963) and said notice having i i been published in said newspaper once a week for at least three (3) consecutive weeks and on the same day in each week, the first publication of said notice in said newspaper having been made at least twenty-one (21) days before the date of said special election and the last publication in said newspaper having been made within two (2) weeks of the date of said special election; and WHEREAS, the said special election was duly and legally held in said City of Jefferson, Missouri, on the 8th day of October, 1963; and TIMMAS, the form of ballot prepared for and used by the electorate at• said special election was in substantially the form as set forth in the aforesaid Ordinance No. 7+31; and WHEREAS, the judges andclerks of said election, following the closing of the polls on the date of said election, did make out, certify,, and transmit to the City Council of said City of Jefferson the returns of said election; and WHEREAS, on the,21st day of October, 1963, the City Council did proceed to canvass the poll books and returns of said election as certified to it by the judges and clerks who conducted said election, whereupon, the said City Council did adopt a certain resolution entitled "A RESOLUTION DECLARING THE RESULT OF THE SPECIAL ELECTION HELD IN THE CITY OF JEFFERSON, COLE COUNTY, MISSOURI, ON OCTOBER, 8, ® 19631" wherein it was found and declared that at said election held on the 8th day October, 1963, a total of four thousand, four hundred forty-one (4,441) votes had been cast on the aforesaid Proposition, of which three thousand, four hundred five (3,405) votes were cast in favor of the aforesaid Proposition and one thousand, thirty- six (1,036) votes were cast against the same; and WHEREAS, by the aforesaid resolution adopted on the 21st day of October, 1963, the City Council of said City of Jefferson did find and declare and does now again find and declare, that the aforesaid Proposition was assented to at the aforesaid • 4. special election by more than four-sevenths of the qualified electors of said City voting on said Proposition; and WHEREAS, the said City of Jefferson thereupon was fully authorized by Sec- , tion 250.010 et seq., Revised Statutes of Missouri, as aforesaid, to issue its nego- tiable interest-bearing revenue bonds in the amount of Five Million, Six Hundred Thousand Dollars ($5,600,000) to provide funds for the purpose of extending and improving the sewerage system of said City, including the construction of a sewage treatment plant; and WHEREAS, of the bonds authorized as aforesaid, bonds aggregating One Million Dollars ($1,000,000), bearing date of March 1, '1964, heretofore have been ® issued, sold and delivered; and WHEREAS, the City Council of said City of Jefferson heretofore has deter- mined to proceed at this time with the sale and issuance of an additional One Mil- lion Dollars ($1,000,000) in principal amount, of the aforesaid authorized issue of Five Million, Six Hundred Thousand Dollars ($5,600,000), of Sewer Revenue Bonds, reserving and retaining unto itself the power and authority, in the discretion of the Council, to issue the remaining Three Million, Six Hundred Thousand Dollars ($3,600;000) of bonds at a later date or later dates as hereinafter provided; and WHEREAS, the City Council of the City of Jefferson does now find and de- termine that it is necessary and advisable and in the public interest that bonds of ® said City in the principal amount of One Million Dollars ($1,000,000) be issued forthwith as authorized at the aforesaid special election, and as hereinafter provided: NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE C= OF JEFFERSON, COLE COUNTY, MISSOURI, AS FOLLOWS: SECTION 1. That the negotiable interest-bearing revenue bonds of the City of Jefferson, Cole County, Missouri, be and the same are hereby authorized, ordered, and directed to be issued in the principal sum of One Million Dollars ($1,000,000), being part of an authorized issue of Five Million, Six Hundred Thousand Dollars ($5,600,000), to provide funds for the purpose of extending and improving the sewer- age system of said City, including the construction of a sewage treatment plant, said system to be owned exclusively by said City; the principal of and the interest on said revenue bonds to be payable solely from the revenues derived by the City of 5 Jefferson from the operation of the said sewerage system, all in accordance with and as authorized by Section 250.010 et seq., Revised Statutes of Missouri, and pursuant to and in accordance with the authority of a special election held in said City on the 8th day of October, 1963) as set forth in the preamble to this Ordinance. SECTION 2. That the aforesaid bonds shall bear date of August 1, 1965, and shall bear interest from the date thereof at the rates per annum hereinafter set forth, payable March 1, 1966 and semi-annually thereafter on September 1 and March 1 in each year until the principal thereof, respectively, shall have been fully paid. Interest to accrue on said bonds on and prior to the respective maturity dates thereof shall be payable upon presentation and surrender of interest coupons to be attached to said bonds. The said bonds shall be payable, both as to principal and interest, in lawful money of the United States of America at the Chemical Bank New York Trust Company, in the Borough of Manhattan, City of New York, State of New York. The said bonds shall be of the denomination of Five Thousand Dollars ($5,000) each, shall be numbered, shall bear interest at the rates per annum, and shall mature in the amounts and at the times following, to-wit: RATE OF MATURITY BOND NUMBERS INTEREST AMOUNT (March_11 1 to 3, Inclusive 4-1/2% $15,000 1970 4 to 6 " 4-1/2p 15,000 1971 7 to 9 " 4-1/2% 15,000 1972 10 to 12 " 4-1/2% 15,000 1973 13 to 15 " 4-1/2% 15,000 1974 16 to 18 " 4-1/2% 15,000 1975 19 to 21 " 3-1/2% 15,000 1976 22 to 25 " 3-1/2f 20,000 1977 26 to 29 " 3-1/2'% 20,000 7978 30 to 33 " 3-1/20 20,000 1979 34 to 37 " 3-1/2p 20,000 1980 38 to 41 ° 3-1/2p 20,000 1981 42 to 45 " 3-1/2% 20,000 1982 46 to 49 3-3/4% 20,000 1983 50 to 53 3-3/ 20,000 1984 54 to 58 3-3/4% 25,000 1985 59 to 63 3-3/4% 25,000 -1986 64 to 69 3-3/4% 30,000 1987 70 to 76 3-3/4% 35,000 1988 77 to 83 3-3/4% 35,000 1989 84 to go 3-3/4% 35,000 1990 91 to 98 3-3/44 40,000 1991 99 to 107 3-3/4% 45,000 1992 lo8 to 116 " 3-3/4p 45,000 1 993 „ 117 to 125 3-3/4% 45,000 1994 126 to 135 3-3/4% 50,000 1995 136 to 146 IT 3.80t, 55,000 1996 11 147 to 158 3.8o% 60,000 1997 159 to 171 3.80 65,000 1998 172 to 185 " 3.8080 70,000 1999 186 to 200 " 3. , 75,000 2000 6. Bonds maturing March 1, 1976 and thereafter may be called in, paid, and redeemed on March 1, 1975, or on any interest payment date thereafter, in the in- verse order of their numbers, at par and accrued interest, plus a premium of one- fourth of one per centum (1/4 of 1%) of the principal amount of said bonds for each year or fraction thereof between the date of redemption and the respective maturity dates of the bonds called for redemption, such premium, however, in no event to ex- ceed Twenty-five Dollars ($25.00) per $1,000. Provided, further, that said bonds shall be redeemable without a premium on March 1, 1990, or on any interest payment date thereafter. If any of the said bonds are so called for redemption prior to maturity as herein provided, the City of Jefferson, Missouri, shall give written ® notice of its intention to call in, pay, and redeem said bonds, and such written notice shall be delivered to the bank herein named as the paying agent for said bonds not less than thirty (30) days in advance of the date set for the redemption of said bonds, or any of them. Interest shall cease on any bonds so called for re- demption from and after the date fixed for the payment thereof, provided that funds shall be available for such payment on such date. SECTION 3. That the said bonds shall be executed by the facsimile signa- ture of the Mayor of said City, under the corporate seal of said City, attested by the manual signature of the City Clerk, and the interest coupons to be attached to said bonds shall be executed by the facsimile signature of said City Clerk. ® SECTION 4. That the said bonds and the interest coupons shall be in sub- stantially the following forms, to-wit: ?• ® UNITED STATES OF AMERICA STATE OF MISSOURI COUNTY OF COLE CITY OF JEFFERSON SEW REVENUE BOND OF 1965 No. $5,000 The City of Jefferson, a municipal corporation in the County of Cole, State of Missouri, acknowledges itself indebted and, for value received,.hereby ® promises to pay to bearer, solely from the revenues to be derived by said City from the operation of its sewerage system, as hereinafter provided, the sum of FIVE THOUSAND DOLLARS ($5,000) on the first day of March, , together with interest thereon from the date hereof at the rate of per centum ( �� per annum, payable March 11 1966 and semi-annually thereafter on September 1 and March 1 in each year until this bond shall have been fully paid. Interest accru- ing on this bond on and prior to the maturity date hereof shall be payable upon presentation and surrender of the interest coupons hereto attached as they sever- ally become due. Both principal of and interest on this bond are payable in lawful money ® of the United States of America at the Chemical Bank New York Trust Company, in the Borough of Manhattan, City of New York, State of New York. The right is reserved unto said City to call in, pay, and redeem bonds numbered from Nineteen (19) to Two Hundred (200), both inclusive, of the issue of which this bond is one, on March 1, 1975, or on any interest payment date there- after, in the inverse order of their numbers, at par and accrued interest, plus a premium of one-fourth of one per centum W4 of 1%) of the principal amount thereof for each year or fraction thereof between the date of redemption and the respective maturity dates of the bonds called for redemption, such premium, however, in no event to exceed $25.00 per $1,000 of principal redeemed; ' 3. .A providod, further, that said bonds shall be redeemable without a premium on March 10 1939, or on any interest payment date thereafter. Notice of the exercise of the option to redeem bonds prior to maturity shall be given, in writing, to the paying agent designated in this bond not less than thirty (30) days prior to the date set for the redemption thereof. Interest shall cease on any bond so called for redemp- tion from and after the date so fixed for the payment and redemption thereof, pro- vided that funds are available for such redemption on the date so set for such re- demption. This bond is one of a series of two hundred ( 200 ) bonds, numbered:. from One (1) to Two Hundred ( 200 ), both inclusive, of like date, tenor, and effect, except as to rate of interest, date of maturity, and provision for re- demption prior to maturity, as hereinabove set forth, aggregating the principal sum of One Million'Dollars ($1,000,000), of Five Million, Six Hundred Thousand Dol- lars ($5,600,000) authorized, issued to provide funds for the purpose of extending and improving the sewerage system of said City, including, the construction of a sewage treatment plant to be owned exclusively by said City, and is issued pursu- ant to the Constitution and Laws of the State of Missouri, including Section 250.010 et seq., •Revised 'Statutes of Missouri, and pursuant to an Ordinance of the City of Jefferson, and with the approval of four-sevenths of the qualified electors of said City voting at a special election held on the Sth day of October, 1963 . This bond does not constitute an indebtedness of said City within the meaning of any consti- Otutional or statutory limitation or provision, and the taxing power of said City is not pledged to the payment hereof, either as to principal or interest. The City of Jefferson covenants and agrees that -it will apply the proceeds of the issue of which this bond is one to the purpose above set forth and that, as long as this bond or any bond of the issue of which it is one or any of the interest coupons thereto attached are outstanding, it will operate and maintain its sewerage system; that, as long as any of said bonds or the interest coupons attached thereto are outstanding, it Z•rill fix and maintain rates and make and collect charges for the service and facilities of said system, sufficient to provide for the payment of..the " 9• principal of and the interest on said bonds as the same shall mature and accrue and for the operation and maintenance of said sewerage system in good repair and working order, and to provide other funds in connection therewith, all as set forth in the Ordinance pursuant to which the said bonds are issued; and that such an amount of the revenues of said system as will maintain an interest and sinking fund sufficient to pay.the principal of and the interest on this bond and the issue of which it is one, as the same shall mature and accrue, is hereby irrevocably pledged to said pur- pose. It is hereby certified, recited, and declared that all acts, conditions, and things required to exist, to happen, and to be performed precedent to and in the issuance of this bond and of the series of which it is one, in order to make the same legal and binding obligations of said City according to the terms thereof, do exist, have happened, and have been performed in due and regular time, form, and manner, as required by law; that this bond and the issue of which it is one, to- gether with all indebtedness of said City of Jefferson, Missouri, do not exceed any limit of indebtedness prescribed by lair; and that, for the performance in due time and manner of all covenants herein, for the prompt payment of the principal of and the interest on this bond, and for the performance in due time and manner of each and every official act necessary therefor, the Hill faith of the City of Jefferson is •hereby irrevocably pledged. Iff TESTIMONY 'WHEREOF, the City of Jefferson, Missouri, acting by and ® through its City Council, has caused this bond to be executed by the facsimile sig- nature of the Mayor of said City, under the corporate seal of said City, attested by the manual signature of the City Clerk, and has caused the interest coupons hereto annexed to be executed by the facsimile signature of said City Clerk and i this bond to be dated the first day of August, 1965. CI OF 0 MIS I By or Attest: City Clerk R 10. (FORM OF INTEREST COUPONS NMIBERED FROM 1 to 19, .3NCLU- SIVEv TO BE,ATTACM TO SAID BONDS.) No. .�._... ._,..._. March, On the first day of September, �, the City of Jefferson, Missouri, will pay to bearer in lawful money of the United States of America, solely from the I Ii revenues to be derived by said City from the operation of its sewerage system, the amount shown on this coupon at the Chemical Bank New York Trust Company., in the Borough of Manhattan, City of New York, State of New York, being interest due that date on its Sewer Revenue Bond of 1965, dated August .l, 1965, and numbered j i • f CITY OF JEFFERSON, MISSOURI By City Clerk f (FORM OF INTEREST COUPONS NUMBERED FROM 20 to 69, IN- � CLUSIVE., TO BE ATTACHED TO SAID BONDS) I No. March, On the first day of September, , unless the hereinafter mentioned bond theretofore shall have been called for redemption and provision for such re- demption duly made, the City of Jefferson, Missouri, will pay to bearer in lawful j money of the United States of America, solely from the revenues to be derived by said City from the operation of its sewerage system, the amount shown on this cou- pon, at the Chemical Bank New York Trust Company, in the Borough of Manhattan, City of New York, State of New York, being interest due that date on its Sewer Revenue i Bond of 1965, dated August 1, 1965, and numbered CITY OF .TE TMON, MISSOURI t By City Clerk Interest coupons attached to said bonds shall be payable in the follow- 'ing amounta: Coupons due Subsequent semi- Bond Numbers March 1, 1966 annual coupons 1 to 18, Inclusive $131.25 $112.50 19 to 45 it 102.08 87.50 , . 46 to 135 " 109.38 93.75 136 to 200 " 110.83 95.00 11. SECTION 5. That the bonds herein authorized and directed to be issued shall be payable, both as to principal and interest, solely from the revenues derived by the City of Jefferson from the operation of the sewerage system of said City. No bond issued hereunder shall constitute an indebtedness{ of said City within the mean, tng of any constitutional or statutory restriction, limitation, or provision, and the tarring power of said City is not pledged to the payment of any of the bonds authorized hereby, either as to principal or interest. SECTION 6. That the said sewerage system shall be operated on a fiscal year basis, beginning on the first day of January of each year and ending on the last day of December in said year. All revenues derived from the operation of• the sewer- age system of the City of Jefferson shall be set aside as collected and shall be de- posited in a fund hereby created and designated the "SEWER FUND" of the City of Jefferson. SECTION 7. That sums in the Sewer Revenue Fund shall be set aside for, allocated to, and deposited in the following accounts, which are hereby created, by the City Treasurer of the City of Jefferson, without further direction of or action by the City Council or other authority of said City. Such allocations and deposits shall be made on the first business day of each and every month as long as any of the bonds authorized hereby, or the interest coupons attached thereto, shall remain outstanding and unpaid; provided, however, that such allocation to and deposit in the Operation and Maintenance Account, hereinafter provided for, may be made in ® semi-monthly installments: (1) Into an account designated the "SEWER OPERATION AND 14AINTEDTANCE ACCOUNT" there shall be deposited a sum suffi- cient to pay the estimated cost of operating and maintaining the sewer system in good repair and working order during such month. (2) Into an account designated the "SYM REVENUE BOND ACCOUNT" there shall be deposited in each month a sum at least equal to one-sixth of the amount of interest that ifill become due on all bonds then outstanding on the then next interest payment date; also, beginning March 1, 1968, a sum at least equal to one-twelfth of the amount of principal that will become due on said bonds on the then next maturity date shall be deposited into the said Revenue Bond Account. Sums in said Account shall be used only for the payment of principal of and the interest on the bonds authorized hereby as the salve shall become due. • kk 12. (3) into an account designated the "SM-rrM COiITINGKIT ACCOUNT" there shal?. be deposited for each month the sum of Two Hundred Fifty Dollars (4250) until the sum of Twenty-five Thousand Dol- lars (4"25,000) shall have been accumulated in said Account. When and as 'long as said amount shall be on deposit in said Ac- count, no further deposits need be made therein. If said Ac- count should be depleted to any extent for any cause, includ- ing payments therefrom made in accordance with this Ordinance, then such monthly payments shall be resumed until said Account shall be restored. Sums in said Account shall be expended only for unforeseen contingencies and to meet emergencies arising from the operation and maintenance of the aforesaid sewer system as may be necessary from time to time for the continued effective and efficient operation of the sewer system. . (4) Into an account designated the "SEMMM DEPRECIATION ACCOUNT" there shall be deposited for each month the sum of Five Hundred Dollars ($500) until the sum of Fifty Thousand Dollars (y50,000) shall have been accumulated in said Account. 1,rhen and as long " as said amount shall be on deposit in said Account, no further deposits need be made therein. If said Account should be de- plated to any extent for any cause, including any payments made therefrom in accordance with this Ordinance, then such monthly deposits shall be resumed until such Account shall be restored. Sums in said Account shall be expended for any repairs or re- placements to the sewer system as may be necessary from time to time for the continued effective and efficient operation of the said system. (5) Into an account designated the "SMTER REV MWLM BONt RESERVE ACCOUNT" there shall be deposited for each month the sum of Four Thousand, Five Hundred Dollars ($4,500) until the sum of Three Hundred Fifteen Thousand Dollars (315,000) shall have been accumulated in said Account. Zdhen.and as long as said amount + shall be on deposit in said Account, no further deposits need be made therein. If said Account shall be depleted to any extent for any cause, including payments therefrom made in accordance with this Ordinance, then such monthly deposits shall be resumed until said Account shall be restored. Sums in said Account shall be expended only to pay bonds at maturity or interest as it accrues when and to the extent that other funds are not available for that ® purpose. (6) Into an account designated the "S-7- -ER REHABILITATION ACCOUNT" there shall be deposited on January 1, 1966, and on the first day of each month thereafter to and including December 1, 1975, the sum of Two Thousand, Five Hundred Dollars (2,500) . Sums in said Account shall be expended for the costs of rehabilitating the existing seder system in and of said City. (7) Arty surplus remaini-ag in the Sewer Revenue Fund after making the required deposits described above, shall be deposited in the construction account until such time as the construction of the project shall have been certified by the Consulting Engineers as having been completed according to plan and paid for. There- after any surplus shall be deposited in the Sewer Revenue Bond Reserve Account until such time as the sum of Three Hundred Fifteen Thousand Dollars ($315,000) is on deposit. Thereafter such surplus 13. ' shall be deposited in the Sewer Contingent Account until such time as the sum of Twenty-five Thousand Dollars ($25,000) is on deposit. Thereafter such surplus shall be deposited in the Sewer Depreciation Account until such time as the sum of Fifty Thousand Dollars ($50,000) is on deposit. After these accounts have on deposit the specified maximum, the surplus may be allocated by order of the Council of the City of Jeffer- son from time to time as follows: (a) Into an account designated the "SE47ER, EXTENSION AND IMPROVEMENT ACCOMTT" an amount not to exceed fifty per centum (50%) of the surplus. These funds are to be used for construction of extensions and improvements to the system. (b) Into an account designated the "SaTER REVENUE BOND REDEMPTION ACCOUNT" the remainder of the surplus to be used for the redemption of sewer revenue bonds prior to their maturity. , Provided, that, if at any time the balances standing to the credit of the Accounts created .in paragraphs (2) and (5) above should be insufficient to pay maturing principal or accruing interest, or both, then and in that event any balances then standing to the credit of the Accounts created in paragraphs (3), (4), (6), and (7) above shall be used to pay such principal or interest, or both, and the said Accounts shall be restored subsequently out of future revenues of said sewer sys- tem. SECTION 8. That, if the revenues derived from the operation of the sewer system should be insufficient at any time to make the payments or deposits required by Section 7 of this Ordinance, the -deficiency shall be made good by additional pay- ments to be made out of the first available revenues of said system received during Oany succeeding month or months. Whenever and as long as sums actually on deposit in the Sewer Revenue Bond Account, the Sewer Revenue Bond Reserve Account, and the Sewer Revenue Bond Redemption Account, together, shall equal the principal amount of all outstanding bonds, plus the amount of all interest due thereon until the respective maturity dates of all such bonds, then no further deposits need be made into said Accounts. Except as herein otherwise expressly provided, all sums in the Fund and Accounts created by Sections 6, 7 and 15 hereof shall be kept on deposit in a bank which is a member or banks which are members of the Federal Deposit Insurance Corporation and'at all times shall be continuously secured as provided by the Laws liE. a of the State of Missouri for other funds of said City; or, in the discretion of the City Council, may be invested in bonds or other obliGations of the United States of America maturing or being redeemable at par at or prior to the time when such sum% may be required for use• under the terms of this Ordinance. SECTION. 9. That the City of Jefferson covenants and agrees with the holder or holders of the bonds herein authorized to be issued that it will perform all duties with respect to the operation and maintenance of said sewer system; with respect to the fixing, maintaining, and collecting of the rates, fees, and charges for the services and facilities thereof; with respect to the establishment of the I'and and Accounts herein authorized and created; and with respect to all other matters and things required by law and by this Ordinance, and that it will do or . cause to be done, in apt time and season, each and every official,act necessary for the payment of the principal of and the interest on the bonds herein authorized to be issued, as the same shall mature and accrue. Said City further covenants with the holders of said bonds as follows: (a) That the sewer system of the City of Jefferson shall be improved and extended in accordance with plans and specifica- tions therefor heretofore adopted by the City Council of said City and now on file in the off ice of the City Clerk. (b) That, as long as any of the bonds or interest coupons authorized by this Ordinance are outstanding and unpaid, it vri.11 operate and maintain the sewer system of said City as improved and extended. (c) That, as'lono as any of said bonds or the interest coupons pertaining thereto remain outstanding and unpaid, the said City will fix and maintain rates and make and collect charges for the use and services of the said sei-rer system, sufficient to pay the cost of maintenance and operation of the said system, to pay the principal of and the interest on all revenue bonds or other obli- gations issued by said City chargeable to the revenues of said system, and to provide ample fluids to meet all requirements of this Ordinance. (d) That, as long as any of said bonds or interest coupons shall renmin outstanding and unpaid, the said City shall carry i and maintain all-risk insurance upon all the properties forming a part of said seiner system ifnich may be of an insurable nature; such insurance to be of the type and kind and for such amount or amounts as carried and maitained by similar municipalities. 15. The proceeds of all such insurance shall be used on]y, for the maintenance and restoration of said system, for the payment of the principal of and the interest on the bonds authorized to be issued by this Ordinance, or as herein permitted. (e) That said City shall set up and maintain a proper system of accounts showing the amount of revenue received from the sever system and the application of such revenues. Such as- counts shall be separate and distinct from the other accounts of said City and, at least once a year, shall be properly audited by certified public accountants. The report of such audit shall be open to the public and to all bondholders. Each such report shall include: (1) A classified statement of gross revenues re- ceived, of the operating expenditures, of the net operating revenue, and of the amount of any capital expenditures in connection with the said system for the fiscal year. op (2) A. balance sheet as of the end of eacl fiscal ® year including a statement of the amount on hand at the end of the fiscal year in each of the Ac- counts created by Section 7 of this Ordinance. (3) A statement of the number of customers served by the said system at the beginning and the ending of the fiscal year. (1�) 'A statement of the amount and character of insurance carried on the properties of the said system, and of the names of the insurers and of the expiration dates of the several policies; and (5) Such comments regarding the method of operation. and accounting practices as the auditor may deem desirable. (f) That any holder or holders or any purchaser of not less than twenty-five per centum (25%) in principal amount of said bonds then outstanding shall be permitted, at all reasonable times, to inspect said sewer system and all records, accounts, and data relating thereto. (g) That any holder or holders or any purchaser of not less than twenty-five per centum (25 `0) in principal amount of said bonds then outstanding shall be furnished all data and infor- mation relating to said sewer system zinich may be.reasonably requested. (h) That, as long as any of the said bonds or the coupons pertaining thereto shall remain outstanding and unpaid, the said City shall not sell, lease, loan, mortgage, pledge, or otheriaise encumber or in any manner dispose of said sewer sys- tem, or any revenue-producing part thereof, unless the bonds authorized hereby shall have been paid in full, both as to principal and interest, or unless adequate provision shall have been made which shall assure the full payment of said bonds and the interest thereon to maturity in full, according to their terms. 16. SRCTION 10. That, from and after the issuance of the Five Million, Sir. Hundred Thousand Dollars (,5,600,000) bonds authorized at and by the aforesaid election held on October B, 1963, or so much thereof as may be necessary, no addi- tional bonds shall be issued or obligations incurred by said City which are in whole or in part payable from or chargeable to the revenues derived or to be de- rived from the operation of said sewer system (except obligations incurred in the operation and maintenance thereof), unless such additional bonds or obligations are in all respects junior and subordinate to the bonds authorized hereby; provided, however, in the event that the average annual revenues derived from the operation of said sewer system for the two (2) then next preceding fiscal years shall be equal to or exceed the sum of the following: (a) An amount equal to the average annual operation and maintenance expenses for the last two fiscal years, plus (b) The annual amount, if any, required during the last fiscal year to maintain the Contingent Account, plus (c) The annual amount, if any, required during the last year to maintain the Bond Reserve Account, plus (d) One Hundred thirty-five per centum (1355) of the average amount which thereafter shall become due in any fiscal year as principal of and interest on all bonds then outstanding and on all bonds then to be issued. Then, and in these events, additional bonds or other obligations may be issued on a parity with the bond, authorized by and issued under this Ordinance. The restrictions upon the issuance of additional bonds or other obliga- tions set out in this Section shall not apply to the issuance of the remaining bonds of the $5,600,000 issue authorized at the aforesaid election held October 8, 1963, and shall not apply in the following circumstances and in such circumstances ' r only: (1) That the sewer system of the City of Jefferson here- after should be destroyed or damaged by disaster to such an extent that it cannot: be operated; (2) That all funds received from insurance or otherwise available shall be insufficient to pay the cost of the restoration of said system to such a condition that it can again be operated, such cost of such restoration to 17 . be determined by the estimate of a reputable and competent engineer or engineering firm or corporation selected by the City, which estimate shall be based upon plans and specifications for the restoration of the system prepared for that purpose; and �3) That the holders of at least sixty-five per centum 65V,) of the principal amount of the bonds authorized by this Ordinance then outstanding shall give written consent to the issuance of additional bonds on a parity with the bonds authorized hereby and shall file such written con- sents with the City Clerk- of the City of Jefferson, such consents being acknowledged before a notary public and stating the precise amount of additional bonds which may be issued. Upon the occurrence'of all the circumstances above set out, additional bonds may be issued solely for the purpose of paying the cost of restoring the sewer system ® to reasonable working order in an amount not greater than the amount stated in the consents filed by the holders of the outstanding bonds . SECTION 11. Prior to the commencement of each fiscal year, the Mayor shall cause to be prepared a budget, setting out the estimated receipts and expenditures of the sewer system of the City for the then ensuing fiscal year. This budget shall contain: (a) An estimate of the receipts expected to be derived from the operation of the system; (b) A statement of the estimated cost of operating such system during the next-ensuing fiscal year; (c) A statement of any unusual and extraordinary expenses of operation or maintenance which might be reasonably anticipated • and an estimate of the cost thereof; (d) A statement of what replacements to the system may be anti- cipated and the estimated cost thereof; (e) A . statement of the amount of interest to become due during the ensuing year on the bonds authorized hereby then outstand- ing; (f) A statement of the principal of such bonds which will be- come due absolutely by their terms during the next-ensuing fis- cal year; (g) A statement of the total amount anticipated to be payable from the revenues of the system during the next-ensuing year; and (h) A statement of the amount on .deposit in each of the accounts created by Section 7 ,of this Ordinance. le. ' •.t SECTION 12. That the p rovisions of this Ordinance shall constitute a contract between the City of .Jefferson and the holders from time to time of the bonds and interest coupons herein authorized to be issued, and, after the issuance of any of said bonds, no changes, additions, or alterations of any kind shall be made hereto in any manner except upon consent of the holder or holders of seventy- five per centum (75%) in principal amount of all of said bonds then outstanding. Such consent shall be evidenced by an instrument or instruments of such holder or holders and duly acknowledged in the manner of a deed for the conveyance of real estate in the State of Missouri, and such instrument or instruments shall contain or be accompanied by proof of ownership of the bond or bonds concerning which such consent is given and shall be filed in the office of the City Clerk of said City of Jefferson and shall be a public record; provided, however, that no such modifica- tion or alteration shall. extend the maturity of, reduce the interest rate on, or otherwise alter or impair the obligation to pay the principal of or the interest on any bond at the time and place, at the rate, and in the currency as provided therein, without the express consent of the holder of such bond; nor reduce the per- centage of bonds required for the affirmative vote or written consent to a modifi- cation or alteration; nor alter or impair the covenants set forth in Section 9 of .this Ordinance. Any and all modifications or alterations made in the manner herein- 'above provided shall not become effective until there shall have been filed with the ®said City Clerk proof of the consent to such modification or alteration by the holder or holders of seventy-five per centum (75%) in principal amount of all bonds then outstanding. SECTION 13. The holder of any bond authorized hereby or of any coupon representing interest accrued -thereon may, by a civil action either at law or in equity, by mandamus, injunction, or otherwise, compel the City of Jefferson or the. officials thereof or any successors thereto to perform all duties imposed upon said City by the provisions of this Ordinance or otherwise imposed by law, including the continued operation of the sewer system, the fixing and collecting of sufficient rates and charges for the services thereof, the segregation, allocation, and disposi- •tion of the revenues derived from said system, the payment of any bonds chargeable to the revenues of said system or the interest thereon, and the performance of any covenant set out in this Ordinance. 19. •n Such suit or action at law or in equity shall lie, regardless of whether or not any bond or the interest thereon shall be in default at the time of the fil- ing of such suit, in the event that the City of Jefferson or any official thereof shall have neglected or failed to perform any material duty imposed by law or any covenant set out in this Ordinance. SECTION 14. That all bonds issued hereunder shall be payable equally and ratably, witbout regard to the date when said bonds shall be actually delivered, and shall enjoy parity of lien, one with the other, upon the revenues of said system. SECTION 15. That the principal proceeds derived from the sale of said bonds hereby authorized shall be deposited in a separate account hereby created and designated W'SEWER CONSTRUCTION ACCOUNT" and shall be applied solely and only to the payment of the cost of extending and improving the sewer system of the City of Jefferson, Missouri, in accordance with the plans and specifications hereinbefore referred to. The said pro- ceeds shall be disbursed only upon proper warrant issued pursuant to certification by the consulting engineer or consulting engineers for the City of Jefferson, stating: (a) that the purpose for which the payment is to be made is within the scope of the improvements contemplated'by this Ordinance; (b) that the work done is or the materials furnished are in accordance with the contract therefor (if such work is done or such materials are furnished under a contract) or that such work is or that such materials are suitable for the purpose (if such payments are not covered by an express contract); and (c) that the amount. of such payment is in accordance with the contract or is reason- able. Nothing herein shall be construed to prohibit the payment without such a certifi- cate of the expenses necessarily incident to the issuance and sale of the bonds herein authorized. The words "principal proceeds derived from the sale of said bonds" as used in this Section shall, not include any sum representing accrued interest received upon delivery of said bonds or any sum representing premium received upon delivery of said bonds. Any sum so received as a premium and any sum so received as accrued interest shall be deposited in the "Sewer Revenue Bond Account" created under paragraph (2) of Section 7 of this Ordinance. SECTION 16. That, at least five days prior to March 1 and September 1 of each year, the City Treasurer shall remit to­the paying agent designated herein the 20. sums then due as principal or interest or both principal and interest on the bonds herein authorized to be issued. Each such remittance shall include the sum then due as the customary charge of the paying agent for its services and responsibility under the terms of this Ordinance, which charges shall be deemed to be expenses of operation and shall be charged to and payable from the Operation and Maintenance Account provided for in paragraph (1) of Section 7 of this Ordinance. SECTION 17. That when the bonds authorized hereby shall have been pre- pared and executed they shall be lodged with the City Treasurer, who shall deliver them to the purchasers thereof upon payment of the purchase price in accordance with the contract of sale. ' SECTION 18. That the right shall be and is hereby expressly reserved unto the City of Jefferson, in the discretion of the City Council thereof, hereafter to issue and sell all or any part of the remaining Three Million, Six Hundred Thousand Dollars (3,600,000) Sewer Revenue Bonds authorized at the aforesaid election held on the 8th day of October, 1963, and said remaining bonds may be issued on a parity with the bonds issued hereunder as provided hereinbefore in Section 10. SECTION 19. That, if any section, paragraph, clause, or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause, or provision shall not affect any other provision of this Ordinance. SECTION 20. That all ordinances or resolutions, or parts thereof, in con- flict with this Ordinance, to the extent of such conflict only,are hereby repealed. SECTION 21. That this Ordinance shall be •.in force said take effect from and after its passage and approval. Passed this day of , 65. May r an 9x-Officio President o the Council Attest: rA City Clerk Approved thiai day • r Mayor Attest: City Clerk