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ORD 53-22 WATER REVENUE BONDOBT ~F 3-31-53 7 ORDINANCE NO. AN ORDINANCE of the Town of Winslow, Washington, providing for the issuance of $100,000 of water revenue bonds of the town for the purpose of providing funds for the construction and in- stallation of a water supply and distribution system for the town as provided in Ordinance No. 12 and as ratified by the qualified electors of the town at a special election held therein on August 16, 1951, fixing the date, form, terms and maturities of said bonds, creatSng a Water Revenue Fund, a Bond Redemption Fund for the payment of the principal and interest of said bonds and a Reserve Account, providing certain other covenants and protective features safe- guarding such payments, reserving the right in the town to issue additional revenue bonds on a parity with said bonds, confirming the sale thereof, and declaring an emergency. WHEREAS, by Ordinance Ne. 12, passed and approved July 31, 1951, it was provided that a proposition for the construction of a water supply and distribution system and the issuance of water revenue bonds in the principal sum of $100,000 to pay the cost thereof be sub- mitted to the qualified electors of said to~n at a special election to be held therein on August 16, 1951; and WHEREAS, at said election said proposition carried by the requisite majority, and it is deemed necessary that said town now issue and sell such revenue bonds in order to provide funds for such purpose; NOW, THEREFORE, BE IT ORDAINED by the Council of the Town of Winslow, Washington, as follows: Section 1. That for the purpose of providing funds for constructing a water supply and distribution system for the town, as provi in subdivisions B to E, inclusive, of Section I of Ordinance No. 12, passed and approved July 31, 1951, and as authorized by the qualified electors of the town at a special election held therein on August 16, the town shall now issue and sell its water revenue bonds in the p2incip~l sum of $100,000. Sai6 bonds shall be dated May i, 1953 shall be in denominations oi' $500 each, and shall be numbered from 1 to 200, inclusive. Bonds hum- be:red 1 to 22 inclusive, maturing from May 1, 1955 through May 1, 1959, Y=~'and bonds numbered ~ to 200 inclusive maturing from May l, hrough # t ~y l, 1978, shall bear interest at the rate of 4~ per annum, and bonds -' t~,1 ,mbered 23 to ~ inclusive, maturing from l~y 1, 1960 through ~y 1, ~~, shall bear interest s.t the rate of 3 3/4% per annum, all of said interest being payable semiannually on the first days of ~My and November of each year. Said bonds shall mature in order of their number as follows May l, 1955 M~.y l, 1956 2,000 P~y l, 1957 2,000 Fay l, 1958 2,500 May l, 1959 2,500 May l, 1960 2,500 May l, 1961 2,500 Fzy l, 1962 2,500 Fzy l, 1962 2,500 May 1,196~ 3,000 M~ay 1, 1965 3,00q l~.y 1, 1966 May 1, 1967 May 1, 1968 M~y 1, 1969 Nay t, 1970 Nay 1 1971 ~y I 19 72 Nay I 1973 Nay i 1974 Mzy I 1975 May 1 1976 May I 19 77 ~y I 1978 3,500 3,500 3,5oo 3,5o0 4,000 ~,000 4,000 4,500 4,50o 5,000 5,000 25,000. Both principal and interest of said bonds shall be payable in lawful money of the United States of America at the office of the Town Treasurer in Winslow, ~shington, and shall be obligations only against the special Bond Redemption Fund created by this ordinance. The Town of Winslow hereby reserves the right to redeem any or all of the outstanding bonds of this issue at oar in inverse numerical order on any interest payment date on and after six years from date of issue by givin~ thirty days' notice of such intended redemption by one oublication thereof in a newspaper of general circulation within the town not more than forty nor less than thirty days orior to said redemption ~te. Interest on any bond or b~nds so called for redemption shall cease on such redem~otion date. Section 2. Said bonds shall be in substantially the following form: UNITED STATES OF AMERICA $500 STATE OF WASHINGTON TOWN OF ~NSLOW WATER REVENUE BOND 1953 KNOW ALL MEN BY THESE PRESENTS: That the Town of Winslow, a municipal corporation of the State of Washington, hereby acknowledges itself to owe and for value received promises to pay to bearer on the first day of May, 19 ~ the principal sum of FIVE HUNDRED DOLLARS together with interest thereon at the rate of - % per annum payable semiannually on the first days of May and November of each year as evidenced by and upon presentation and sur- render of the attached interest coupons as they severally become due. Both principal and interest are payable in lawful money of the United States of America at the office of the Town Treasurer in Winslow, Washington, solely out of the special fund of the town known as "Winslow 1953 Water Revenue Bond Rede~ntion Fund" created by Ordinance No. ~-~ of the town. The town has reserved the right to redeem any or all of the outstanding bonds of this issue at par in inverse numerical order on any interest payment date on and after six years from date hereof by giving thirty days' notice of such intended redemption by one publication thereof in a newspaper of general circulation within the town not more than forty nor less than thirty days prior to said redemption date. This bond is one of an issue of water revenue bonds of the town of like date and tenor in the total orincipal sum of $100,000 which are issued for the purpose of ~roviding funds for the construction of a water supply and distribution system by the town, and is payable solely out of the gross revenues of said system. The Town of Winslow hereby covenants and agrees with the holder of this bond that it will keep and perform all the covenants of this bond and of Ordinance No. ?-~/of the town to be by it kept and performed. The town does hereby pledge and bind itself to set aside from the gross revenue of said water system and all additions and improvements thereto and extensions thereof paid into the Water Revenue Fund of the city, and to pay into said Bond Redemption Fund and the Reserve Account created therein by said Ordinance No. ~, the various amounts required by said ordinance to be paid into and maintained in said Fund and Account, all within the times provided by said ordinance. Said amounts so pledged are hereby declared to be a prior lien and charge upon the gross revenue of said system, including all additions and improvements thereto and extensions thereof, superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of said system. The town has further bound itself to maintain said system in good condition and repair, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect rates and charges for water that will provide revenue equal to 1.5 times the amounts necessary to pay the annual principal and interest due on the bonds of this issue and on any revenue bonds that may be issued on a parity therewith (exclusive of any balloon maturity year or years) after the necessary cost of main- tenance and operation of said system has been paid. It is hereby certified and declared that said bonds are issued oursuant to and in strict compliance with the Constitutio~ and Laws of the State of Washington and Ordinances of the Town of Winslow, and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and oerformed as required by law. IN WITNESS WHEREOF, the Town of Winslow has caused this bond to be signed by its Nayor and attested by its Clerk under the corporate seal of the town, and the interest coupons attached hereto to be signed with the facsimile signatures of said officials~ this first day of Nay, 1953. TOWN OF WINSLOW, WASHINGTON By Nayor ATTEST: Town Clerk The interest coupons to be attached to said bonds shall be in substantially the following form: NO. $ On the first day of , 19. , the Town of Winslow, Washington, will pay to bearer at the office of the Town Treasurer in Winslow the sum of DOLLARS in lawful money of the United States of America out of a special fund of said town known as "Winslow 1953 Water Revenue Bond Redem~otion Fund," said sum being the semiannual interest due that day on its Water Revenue Bond dated May !, 19~, and numbered TOWN OF WINSLOW, WASHINGTON By Nayor ATTEST: Town Clerk Section 3. Said bonds shall be signed on behalf of the town by its Mayor and attested by the Tovm Clerk under the corporate seal of t~.e to~.m, and the interest coupons attached to said bonds shall be signed with the facsimile signatures of said officials. Section ~. That there be and iS hereby created in the office of the Town Treasurer a special fund of the town, to be known as the "~ter Revenue Funds" into which fund sP~ll be paid as collected all If the gross earnings and revenue of said water system and all additions and improvements thereto and extensions thereof, and the gross earnings and revenue of any sanitary sewage disposal system of the to~m and any additions and improvements thereto and extensions thereof if the same eL.all be combined with said water system in the manner provided by law. All costs of maintaining and operating said water system, and all pay- ments recuired by this ordinance to be made into the Bond Redemption Fund and Reserve Account heroinafter created shall be paid out of said Fund. Section 5. That there be and is hereby created in the office of the Town Treasurer a special fund of the town to be known as "'~'inslow 1g~3 Water Revenue Bond Redemption Fund," which fund is to be drawn upon for the sole -ourpose of paying the principal and interest of the bonds authorized. herein as the same shall become due. The town hereby obligates and binds itself to set aside and pay into said Bond Redemption Fund, out of the money in said Water Revenue Fund and other available funds, certain fixed amounts necessary o pay the principal and-~.nterest of the bonds authorized herein as the same respectively become due and payable. Said payments shall be made into paid Bond Redemption Fund on or before the twentieth day of each month in the amounts n.ereinafter specified: (a) Beginning with May, 1953, and continuing as long as any of the bonds authorized herein are outstanding and unpaid, an amount equal to at least one-sixth of the interest to become due and payable at the end of the next ensuing 6-months period on all of said bonds then outstanding; (b) Beginning with May, 19,54, and continuing as long as any ~' the bonds authorized herein are outstanding and unpaid, an amount equal to at least one-twelfth of the principal of sail bonds to become due and payable on the next principal payment date. When there is sufficient money in the Bond Redemption Fund and the Reserve Account hereinafter created to pay the principal and interest to maturity of all the outstanding bonds of the issue au- thorized herein, then no further payments need be made into said Bond Redemr~tion Fund. Said amounts so pledged and the amounts pledged herein to be paid into the Reserve Account hereinafter created are hereby de- ~_ared to be a prior lien and charge upon the gross revenue of said 6. water system and all additions and improvements thereto and extensions thereof and upon the moneys in said Water Revenue Fund, superior to all other c.harges of any kind or nature except the necessary cost of main- tenance and operation of said system. Sectio~_~. A Reserve Account is hereby created in said Bond Redemption Fund, and the town hereby agrees that it will set aside and pay into said Reserve Account, out of the moneys in said Water Revenue mund and out of any other moneys which it may now or later have on hand available for such purpose, the sum of $7,000, which sum is to be paid into said Reserve Account at the rate of at least $150 per month, com- mencing with May, 1954, so that the full sum of $7,000 shall be paid into said Reserve Account by May l, 1958. The town further agrees that when said sum of $7,000 has been paid into said Reserve Account, it will at all times maintain that amount therein until there is a sufficient amount in the Bond Redemption Fund and Reserve Account to pay the principal and interest to maturity of all the outstanding bonds of the issue herein authorized. In the event there shall be a deficiency in said Bond .edemption Fund to meet maturing installments of either principal or interest, such deficiency shall be made up by the withdrawal of cash from the Reserve Account. Any deficiency thus created in the Reserve Account by reason of any such withdrawal shall be made up from moneys in the Water Revenue Fund or from other available funds after making necessary provision for all required payments into the Bond Redemption Fund. All moneys in the Reserve Account above provided for may be kept in cash or invested in United States Government obligations having a guaranteed market, or, if such obligations are not available, t!~en in United States Government obligations maturing not later than twelve years from date of purchase and in no event later than the last ms~turity of the outstanding bonds of this issue. Interest earned on any such investments shall be deposited in and become a part of the Bond Redemption F~nd. Section 7- The corporate authorities of the Town of Winslow hereby declare in fixing the amounts to be paid into the Bond Redemption · 'und and the Reserve Account created therein as aforesaid that they have exercised due regard to the cost of maintenance and operation of said water system, and have not obligated the town to set aside and pay into s~!d Bond Redemntion Fund and Reserve Account a greater amount or pro- portion of the revenues of said system than in their judgment will be available over and above such cost of maintenance and operation. Section 8. The Town of Winslow hereby covenants with the ovmer and holder of each of the bonds authorized herein as follows: (a) That it will establish, maintain and collect rates and charges for water service, including hydrant rentals, (and if the sewer utility is combined with said water system, rates and charges for sewage disposal service) for as long as any of the bonds authorized herein and any revenue bonds that may be issued on a parity therewith are outstanding, that will make available for the payment of the principal and interest of all of such bonds as the same shall become due an amount equal to 1.5 times the amount required each year for the principal and interest due on all of such outstanding bonds exclusive o~ any balloon maturity year or years. The amount "available for the payment of the principal and interest of all of such bonds as the same shall become due" is hereby ¸8° defined as "the gross revenues of the water system (and, if the sewage disposal system is combined with the water system, of the combined w~ter and sewage disposal systems) and all additions and improvements thereto and extensions thereof less expenses of maintenance and opera- tion but before depreciation." (b) That it will set aside out of the proceeds of the sale of the bonds herein authorized and deposit in the Bond Redemption F~nd an amount sufficient to pay the interest on the bonds herein provided or during the term of the construction of said water system and until said system is completed and charges for water service can be made, such interest payments to be considered as part of the construction cost of said water system. (c) That it will at all times keep and maintain said water system and all additions and improvements thereto and extensions thereof in good repair, working order and condition, and will at all times operate said system and the business in connection therewith in an efficient manner and at a reasonable cost. (d) That it will not sell or otherwise dispose of all of she properties of such system unless provision is made for payment into the Bond Redemption Fund of a sum sufficient to pay the principal and interest of all the outstanding bonds payable out of said Fund in accordance with the terms thereof~ nor will it sell or otherwise dis- pose of any portion of such system unless provision is made for payment into said Bond Redemption Fund of an amount which shall be in at least the same oro~ortion to the amount of outstanding bonds payable out of said Fund that the net revenue available for debt service of said bonds for the twelve months preceding such sale or disposal from the portion of the system sold or disposed of bears to the net revenue available for debt servi ~ of said bonds from the entire system for the same ~eriod. Any such money so oaid into the Bond Redemption Fund shall be used ~o retire such outstanding bonds at the earliest possible date. (e) That it will not create any special fund or funds for the payment of any other revenue bonds which will rank on a parity with or have any priority over the payments out of the Water Revenue Fund into the Bond Redemption Fund and the Reserve Account created therein, except that the town hereby reserves the right for (1) the purpose of redeeming or purchasing and retiring prior to their maturity any outstanding water revenue bonds of the town, or (2) the purpose of acquiring, constructing and installing additions and improvements to and extensions of, acquiring necessary eculpment for, or making necessary replacements or other capital im- provements to the water system, or (3) if said sewage disposal system is hereafter combined with said water system, then for the purpose of acquiring, constructing and installing additions and improvements to said combined system, or purchasing necessary equipment therefor, or making replacements or other capital improvements to such combined system, to issue additional revenue bonds therefor and to create a special fund or funds for the payment of the principal and interest thereof, into which fund or funds payments may be made from the Water Revenue Fund of said town sufficient to pay the principal and interest on such additional bonds and to maintain an adequate reserve therefor if the same is required, which such payments may rank equally with the payments out of the Water Revenue Fund into the Bond Redemption Fund and Reserve Account created herein, upon compliance with the following conditions: (1) That at the time of the issuance of such additional revenue bonds there is no deficiency in said Bond Redemption Fund and Reserve Account created therein, or in any bond redemption fund or account which may have been created for the payment of the principal f and interest on any revenue bonds issued on a parity with the lO. outstanding water revenue bonds of the town authorized herein. (2) That it will provide in each ordinance creating a fund for the payment of the principal and interest of such additional revenue bonds for a reserve account into which must be paid within five years from the date of issue of such additional bonds an amount which, plus the amounts to be paid into the Reserve Account created herein, will equal the maximum principal and interest required to be naid in any calendar year on the bonds authorized herein and on such additional bonds (exclusive of any balloon maturity year or years). (3) That at the time of the issuance of such additional revenue bonds the town shall have on file a certificate from an inde- pendent licensed professional engineer or engineering firm, setting forth his or its estimate of the net earnings to be received by the system as a result of the additions and improvements thereto and ex- tensions thereof to be acquired, constructed or installed from the proceeds of the sale of such additional bonds, showing that such net earnings will equal at least 1.5 times the greatest amount required to be paid in any calendar year thereafter (exclusive of any balloon ~turity year) into the Bond Redemption Fund and Reserve Account for the principal and interest on any revenue bonds then outstanding, on any revenue bonds which may have been later issued on a parity there- with, and on such additional revenue bonds being issued. (f) Nothing herein contained shall prevent the town from issuing revenue bonds which are a charge upon the revenue of such system or the moneys in the '~ater Revenue Fund Junior or inferior to the pay- ments to be made into the Bond Redemption Fund and Reserve Account created herein, or from issuing revenue bonds to refund maturing bonds for the payment of which moneys are not otherwise available. 11. Section 9- The moneys derived from the sale of the bonds authorized herein shall be used sole].y for the purposes provided in Ordinance No. 12 of the to~m as set forth in the plans and specifi- cations for said work prepared by the Town Engineer and on file in t.~e office of the Town Clerk, which plans and specifications are hereby declared to be necessary changes and additions to the com.. prehensive plan set forth in said Ordinance No. 12 and do not ma- terially alter such ~lan. Section 10- The action of the Town Council and the Nayor $.nd Clerk of ~aid to~n on ~rch 20, 1953, ~n accepting the written offer of Metcalf & Thompson of Seattle, Washington, of even date to ~rchs. se said bonds under the terms and conditions set forth in said ~offer as amended by the Council on April~, 1953, and as fixed in this ordinance, is hereby in all respects ratified and confirmed. Section ll. This ordinance is declared to be one necessary for the immediate preservation of the health and safety of the people ef the To~n of Winslow, ~a~ington. An emergency is hereby declared ~ exist, and this ordinance is hereby declared to be in full force and effect I~rom and after its passage, approval and publication or postin~ as provided by law. PASSED by the Council of the Town of Winslow, Washington, a~ spproved by its ~L~yor this/~ day of April, 1933. TOI~N OF ~NBLOW, WASHINGTON Town Clerk Nayor 12.