HomeMy Public PortalAboutORD07934 O"
NO. ORDINANCE NO. 2% 9'
II .AN ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE
OF NEGOTIABLE IiNTM- EST-33EA.RING N�tiT�R �'VI;i1"uL POiTDS
or THC CITY OF JE, � • SON, COL. comuY, MISSOURI, III
THE PRINCIPAL AAOUNT OF ONE MILLION DOLLARS
01,000,000), OF FIVE MILLION, SIX IILRUDRED THOUSAIND
DOLLARS ($5,600,000) AUTI-IOiIZED, FOR TiIC PURPOSE OF
MING AND 31 PROVING Tim SEWERAGE SYST72.1 OF SAID
CITY, INCLUDING THE
CONSTRUCTION OF A SL'IIAGL Tr�AMH•:N�'
PLANT; PRESCRIBING THE FORT: AND EdCIDENTS OF SAID
BONDS; PROVIDING FOR THE COLLECTION, SEGREGATION, AND
DISTRIDUTION OF 51E RZ';Va ,0S TO DE DERIVED FROM TIC
OPERATION OF THE SO'ERA.GE SYSTII•i OF SAID CITY IN
AMOUNTS SUFFICIENT TO PAY T11D, COST OF OPERATION A14-D
MAT.NTEIFIANCE -OF AND THE PRINCIPAL, OF AND INTEREST
ON SAID 33ONDS; AND MAILING PROVISION FOR OTHER FUNDS
IN CONNLCTIOLS THMI ZTH.
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SIHEREA.S, 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
WIM , the said City Council here�ofore has found and does now again
find and determine, upon the advice of competent engineers, that,.the estimated cost
.,- a
constructing; such improvements and extensions is Five Million, Six Hundred T-hous-
and Dollars ($5,600,000); and
W 2REAS, the aforesaid sum is not now available in the treasury of said
City of Jefferson; and
WHEREAS, the said City is authorized, under the provisions of Section
250.O1O .et seq., Revised Statutes of Missouri, to borroir 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 fi,om 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. 7411, 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. 7411 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 AELD IN SAID CITY ON TUESDAY, THE 8th DAY OF
VOTOBW
ER.- 1963, OF A PROPOSITION FOR THE ISSUANCE OF SEWER REVI+ M BONDS OF SAID CITY
TO PROVIDE FUNDS FOR THE PURPOSE OF EXTENDING AND IMPROVING THE SSE 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 construe-
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
WHEREAS, as directed by the aforesaid Ordinance No. 7411; 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 substantie.11y the form as set forth in the aforesaid Ordinancd; 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
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
ity of Jefferson, Missouri, on the 8th day of October, 1963; and
WHEREAS, 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+11; and
WHEREAS, the judges andelerks of said election, following the closing
of the polls on the date of said election, did make out, certify, and transmit to
the City Counci]. 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, wbe reupon, the said City Council
did adopt a certain resolution entitled "A RESOLUTION DECLARING THE RESULT OF THE
PE-CIAL ELECTION GELD IN THE CITY OF JEST SON, COLE COUNTY, MISSOURI, ON OCTOBER, 8,
1963," 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, 5) 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 ($52600,000) 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 ($1,0001000), bearing date of March 1, 1964, heretofore have been
issued, sold and delivered; and
WHEREAS, of the bonds authorized as aforesaid, bonds aggregating One Million
Dollars ($1,000,000),bearing date of August 1, 1965, 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 Million
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 .t'he power and authority, in the discretion of the Council,
to issue the remaining Two Million, Six Hundred Thousand Dollars ($2,600,000) 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 CITY 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 bongs 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 an 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 September 1, 1967,
and shall bear interest from the date thereof at the rates per annum hereinafter set
forth, payable March 1, 1968 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
AM 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 State Bank & Trust
Company of Wellston, in the City of Wellston, State of Missouri. 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:
BOND NUMBERS RATE OF INTEREST AMOUNT MATURITY
(March 1
1 to ' 3, Incl. 5°1 $ 15,000 1971 .
4 to 63 5% 15,000 1972
of
7 to 9, 5, 15,000 1973
10 to 12, " 5% 15,000 1974
13 to 16, " 5% 20,000 1975
17 to 20, " 5% 20,000 1976
21 to 24, " 5% 20,000 1977
25 to 30, " 4-1/2% 30,000 1978
31 to 36, " 4-1/2% 301000 1979
37 to' 42, " 4-1/2% 30,000 1980
43 to 49, " 4-1/2% 35,000 1981
50 to 56, " 4-1/2% 35,000 1982
57 to 64, " 4-1/20 4o,000 9
65 to 72, " 4-1/2% 4o,000 184
73 to 80, " 4-1/2% 4o,000 1985
81 to 88, " 4-1/2% 4o,000 1986
89 to 96, " 4-1/20 4o,0oo 1987
97 to 104, " 4-1/2/0 4o,000 1988
105 to 112, " 4-1/2% 4o,0oo 1989
113 to 121, " 4.601, 45,000 1990
122 to 130, " 4.60% 45,000 1991
131 to 139, 4.66%, 45,000 1992
140 to 148, 4.600/, 45,000 1993
149 to 157, 4.6o% 45,000 1994
158 to 166, 4.6o�A 45,000 1995
167 to 174, " 4.60, 4o,000 1996
175 to 181, �.6� 30,000 1998
182 to 187,
188 to 193, 4.60%, 30,000 1999
194 to 200, 4.60% 35,000 2000
6,
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Bonds maturing March 1, 1978 and thereafter may be called in, paid, and
redeemed on March 1, 1977, 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 One Hundred Twenty-five Dollars ($125) per bond. 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 re-
demption of said bonds, or any of them. Interest shall cease on any bonds so
called for redemption from and after the date fixed for the payment thereof, pro-
vided 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
substantially the following forms, to-wit:
7.
UNITED STATES OF AMERICA
'STATE OF MISSOURI
COUNTY OF TOLE
CITY OF JEFFERSON
SEWER REvENuE BOND OF 1967
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 12 1968 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-
Ak
ally become due.
Both principal of and interest on this bond are payable in lawful money
of the United States of America at the State Bank & Trust Company of Wellston, in
the City of Wellston, State of Missouri.
The right is reserved unto said City to call in, pay, and redeem.bonds
numbered from Twenty-five (25) to Two Hundred (200), both inclusive, of the issue of
which this bond is one, on March 1, 1977, or on any interest payment date there-
after,after, in the inverse 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 thereof
for each year or fraction thereof between the date of redemption and the respective
Am
maturity dates of the bonds called for redemption, such premium, however, in no
event to exceed $125 per bond;
T:
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provided, turther, that said bonds shall be rcdocimablc without a, premium on March 1,
1990, or on any interest payment date thereafter. Notice of the exercise of the
option to redeem bonds prior to maturity shall be -ivcn, 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::.
om 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 ($11000,000), 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 06th day of October, 1963. This bond
not constitute an indebtedness of said City within the meaning of any consti-
tutional 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 arrees 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 trnich 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
i
are outstanding, it will fix and maintain rates and malts and collect charges for the
service and facilities of said system, sufficient to provide for the payment of.the
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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-
1
pose.
It is hereby certified, recited, and dleclared that all acts, conditions,
d 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 law; 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 full faith of the City of Jefferson
s hereby irrevocably pledged.
IN TESTIMONY 1A1=-OF, the City of Jefferson, Missouri, acting by and
through its City Council, has caused this bond to be executed by the facsimile Big-
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 }
this bond to be dated the first day of September, 1967.
CITY OF JEPI=0N, MISSOURI .
By
Mayor
Attest;
City Clerk
f
fin
10.
(FORM OF INTEREST COUPONS NUMBERED FROM 1 to 19,
INCLUSIVE, TO BE ATTACHED 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
revenues to be derived by said City from the operation of its sewerage system, the
amount shown on this coupon at the State Bank & Trust Company of Wellston, in the
City of Wellston, State of Missouri, being interest due that date on its Sewer
Revenue Bond of 1967, dated September 1, 1967; and numbered
CITY OF JEFFERSON, -MISSOURI
By
City Clerk
(FORM OF INTEREST COUPONS NUMBERED FROM g0 to 65,
INCLUSIVE, TO BE ATTACHED To SAID BONDS. )
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
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. State Bank & Trust Company of Wellston, in the City of Wellston, State of
Missouri, being interest due that date on its Sewer Revenue Bond of 1967, dated
. . September 1, 1967, and numbered
CITY OF JEFFERSON, MISSOURI
By
City Clerk
Interest coupons attached to said bonds shall be payable in the follow-
ing amouits:
Bond Numbers Semi-annual coupons
1 to 24, Inclusive $125.00
25 to 112, " $112.50
113 to 200, $115.00
11.
SECTION 5. That the bonds herein authorized and directed to be issued
sha1l 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- -
ing of-any constitutional or statutory restriction, limitation, or provision, and
the taking 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
'i
ay 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 REVENUE FUND" of the ,City
of Jefferson. 7
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 I
sha11 be made on the first business day of each and every month as long as any of t
the bonds authorized hereby, or the interest coupons attached thereto, shall remain
aatstandinG and unpaid; provided, however, that such allocation to and deposit in
Qae Operation and Maintenance Account, hereinafter provided for, may be made in
semi-monthly installments:
(1) Into an account designated the "SEWER OPERATION AND
MATNTIIWCE 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 "SEWER REVENUE BOND
ACCOUNT" there shall be deposited in each month a sum at
least equal to one-sixth of the amount of interest that will
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 aforesaid authorized
bonds as the same shall become due.
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12.
(3) Into an account designated the "S MER CONTINGENT ACCOUNT"
there shall be deposited for each month the cum of Two Hundred
Fifty Dollars (;250) until the sum of Twenty-five Thousand Dol-
lars (4 5,000) shall Iuave been accumulated in said Account.
When and as long as said amount shall be on deposit in eaid 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 tame for the continued effective
and efficient operation of the sewer system.
(4) Into an account designated the "SMM DEPRECIATION ACCOUNT"
there shall be deposited for each month the sum of Five Hundred
Dollars ($500) until the sum of Fifty Thousand Dollars ($50,000)
shall have been accumulated in said Account. Mien 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-
pleted to any extent for any cause, including any payments made
therefrom in accordance i-rith 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 "SMIER REVENUE BOND 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. When.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 "SE,W REMUILITATION 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 sewer system in and of said City.
(7) Any surplus remaining 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
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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 "SEWER EXTENSION AND
IMPROVEMENT ACCOUNT" an amount not to exceed fifty per
centui i (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 "SEWER REVENUE BOND
REDEMPTION ACCOUNT" the remainder of the surplus to be
AM 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
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
any succeeding month or months. Whenever and as long as sums actually ondeposit
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
C xporation and at all times shall be continuously secured as provided by th* Laws
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 sums 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
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 sever 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 office 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
will operate and maintain the sewer system of said City as
i, improved and extended.
(c) That, as long 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 sewer 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 funds to meet all requirements of
this Ordinance.
(d) That, as long as any of said bonds or interest coupons
shall remain outstanding and unpaid, the said City shall carry
and maintain all-risk insurance upon all the properties forming
a part of said sewer system which 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.
Jok
15.
Tile proceeds of all such insurance shall be used only 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
sewer 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
MW
the fiscal year.
(2) A balance sheet as of-the end of each 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.
(4) 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-rive 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 (250) in principal amount of said
bonds then outstanding shall be z'urnished all data and infor-
mation relating to said sewer system vfnich 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
otherwise 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.
SECTION 10. That, from and after the issuance of the Five Killion, six
Hundred Thousand Dollars ($5,6001000) bonds authorized at and by the aforesaid
election held on October a, 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
Jf 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 eentum (13s0 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
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 3,
1963, and shall not apply in the following circumstances and in such circumstances
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 par the cost of the
restoration of oaid system to such a condition that it
can again be operated) such cost of such restoration to
be determined by the estimate of a reputable -and competent
en;ineer 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
65,) 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
e 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.
la. .
SECTION 12. That the provisions 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 eentum (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
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estate in the State of Missouri, and such instrument or instruments shall contain
r 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-
.on 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.
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i
a
19.
' Such suit or action at law or in equity shall lie, regardless of whether
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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
i
covenant set out in this Ordinance.
SECTION 14. That all bonds issued hereunder shall be payable equally
and ratably, without 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
reby authorized shall be deposited in a separate account hereby created and designated
"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 thy; scope of the
improvements contemplated by this Ordinance; (b) that the work done �s 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);
'd (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-
sate 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
lach year, the City Treasurer shall remit to the paying agent designated herein the
20.
s 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 rf the prying 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, Two Million, Six Hundred Thousand
Dollars ($2,600,000) 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- `
ict with this Ordinance, to the extent of such conflict on y,are hereby repealed.
SECTION 21. That this Ordinance shall be'An force and take effect from
and after its passage and approval.
Passed this day,pf ou. 196 ,
i
3y.
or and Ex-0 fi 'o Preside the Council
Attest:
k^
.: City Clerk
! Approved this of , 67.
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` Mayor
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west:
City Clerk