ORD 53-24 SEWER REVENUE BONDRT HF 7-16-53 6
AN ORDINANCE of the Town of Winslow, Washington,
providing for the issuance of $50,000 of sewer
revenue bonds of the town for the purposes set
forth in Ordinance No. 23 of the town, fixing
the date, form, terms and maturities of said
bonds, creating a Sewer Revenue Fund, creating
a Bond Redemption Fund for the payment of the
principal and interest thereof and a Reserve
Account, providing certain covenants and pro-
tective features safeguarding such payments,
reserving the right in the town to issue
additional revenue bonds on a parity with
said bonds, confirming the sale of the same,
and declaring an emergency.
WEEAS, by Ordinance No. 23 of the town, passed and approved
July 8, 1953, the issuance of sewer revenue bonds of the town in the
total principal sum of $50,000 was authorized for the purpose of pro-
vidin~ funds to construct and install a sanitary sewage disposal system
for the town; and
WHEREAS, it has been determined that theirown should now issue
the full amount of said bonds in order to provide the funds necessary to
construct and install said system; and
WHEREAS, the Town Council has accepted a written offer of
McLean & Company, investment bankers of Tacoma, Washington, to purchase
said bonds under the terms thereof as set forth herein;
NOW, THEEFOE, BE IT ORDAINED by the Council of the Town of
Winslow, Washington, as follows:
Section 1. That for the purpose of providing funds to con-
struct and install the sanitary sewage disposal system for the town
described in Ordinance No. 23, the town shall now issue its sewer revenue
bonds in the total principal sum of $50,000.
Such bonds shall be dated August l, 1953, shall be in de-
nominations of $1,000 each, shall be numbered from 1 to 50, inclusive,
shall bear interest at the rate of 4 1/2% per annum payable semi-
annually on the first days of February and August of each year, and
shall mature in order of their number as follows:
August l, 1955
August i 1956
August i 1957
August i 1958
August I 1959
August I 1960
August i 1961
August l, 1962
August l, 1963
August l, 1964
August l, 1965
August l, 1966
August l, 1967
August l, 1968
August l, 1969
$1 000
1 000
1 000
1 000
1 000
1 000
1 000
1 000
1 000
1 000
I 000
I 000
1.000
i 000
1.000
August 1, 1970 $ 1,000
August l, 1971 1,O00
August 1, 1972 1,000
August l, 1973 1,O00
August l, 1974 1,000
August l, 1975 1,O00
August l, 1976 2,000
August l, 1977 2,000
August l, 1978 2,000
August l, 1979 2,000
August l, 1980 2,000
August 1, 1981 2,000
August 1, 1982 2,000
August l, 1983 15,000
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, Washington, and shall be obligations only against
the special Bond Redemption Fund created by this ordinance.
The town hereby reserves the right to redeem any or all of
these bonds at par in inverse numerical order on any interest payment
date on and after five years from date of issue. Notice of any such
intended redemption shall be given by one publication thereof in the
official town newspaper not more than forty nor less than thirty days
prior to said redemption date and by mailing a like notice at the same
time to McLean & Company at its place of business in Tacoma, Washington.
Interest on any bond or bonds so called for redemption shall cease on
such redemption date.
Section 2. Said bonds shall be in substantially the following
form:
UNITED STATES OF AMERICA
NO. ~1,000
STATE OF WASHINGTON
TOWN OF WINSLOW
SEWER 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
August, 19 .... , the principal sum of
ONE THOUSAND DOT,T~RB
together with interest thereon at the rate of 4 1/2% per annum
payable semiannually on the first days of February and August
of each year as evidenced by and upon presentation and surrender
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 "Winelow 1953 Sewer Revenue Bond Redemption 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 five years from
date hereof. Notice of any such intended redemption shall be
given by one publication thereof in the official town newspaper
not more than forty nor less than thirty days prior to said
redemption date and by mailing a like notice at the same time
to McLean & Company at its place of business in Tacoma,
Washington.
This bond is one of an issue of sewer revenue bonds of like
date and tenor in the total principal sum of $50,000, which
bonds are issued for the purpose of constructing and installing
a sanitary sewage disposal system for the town, and is payable
solely out of the gross revenue of such 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 Ordinances No. 23 and No. X~
to be by it kept and performed. The town does hereby pledge
and bind itself to set aside from the money in the Sewer Revenue
Fund of the town and to pay into said Bond Redemption ~o?d ~d
the Reserve Account created therein by said Ordinance ~
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 money in said
Sewer Revenue Fund superior to all other charges of any kind
or nature except the necessary cost of maintenance and opera-
tion of said sewer system.
The town has further bound itself to maintain said sewer
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 sewage disposal
service that will provide revenue equal to at least 1.5 times
the amount required each calendar year (exclusive of any balloon
maturity year) to pay the principal and interest due on the
bonds of this issue and on any bonds which may later be issued
on a parity therewith after necessary costs of maintenance and
operation of said system have been paid but before depreciation.
I~ is hereby certified and declared that said bonds are
issued pursuant to and in strict compliance with the Constitution
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 preceden~ to and in the issuance of this bond have
happened, been done and performed 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 with
the corporate seal of the town impressed hereon, and the in-
terest coupons attached hereto to be signed with the facsimile
signatures of said officials, this first day of August, 1953-
TOWN OF WINSLOW, WASHINGTON
ATTEST:
By
Nayor
Town Clerk
The interest coupons to be attached to said bonds shall be in
substantially the following form:
NO. $22.50
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 TWENTY-TWO AND
50/100 DOLLAR8 in lawful money of the United States of
America out of the special fund of the town known as
"Winslow 1953 Sewer Revenue Bond Redemption Fund", said
sum being the semiannual interest due that day on its
Sewer Revenue Bond dated August l, 1953, and numbered
TOWN OF WINSLOW, WASHINGTON
ATTEST:
By
May o r
Town Clerk
Section 3- Said bonds shall be signed on behalf of the town
by its NaBor and attested by the Town Clerk with the corporate seal of
the town impressed thereon, and the interest coupons attached thereto
shall be signed with the facsimile signatures of said officials.
Section 4. 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
"Sewer Revenue Fund", into which fund shall be paid as collected all
f the gross earnings and revenue of the sanitary sewage disposal system
of the town and all additions and improvements thereto and extensions
thereof. All costs of maintaining and operating said sewer system
and all payments required by this ordinance to be made into the Bond
Redemption Fund and Reserve Account hereinafter created shall be paid
out of said fund.
Section 5- That there be and is hereby also created in the
office of the Town Treasurer a special fund of the town to be known as
"Winslow 1953 Sewer Revenue Bond Redemption Fund", which fund is to be
drawn upon for the sole purpose of paying the principal of and interest
Jn 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 the Sewer Revenue
Fund certain fixed amounts necessary to pay the principal of and interest
on all the outstanding bonds authorized herein as the same respectively
become due and payable.
Such payments shall be made into said Bond Redemption F~nd
on or before the twentieth day of each month in the amounts hereinafter
specified:
(a) Beginning with the month of August, 1953, and continuing
as long as any of said bonds 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-month period on all of said bonds
then outstanding.
(b) Beginning with the month of August, 1954, and continuing
as long as any of said bonds are outstanding and unpaid, an amount
~qual to at least one-twelfth of the principal of said bonds to become
due and payable on the next principal payment date.
When there is sufficient money in said Bond Redemption Fund
and the Reserve Account hereinafter created to pay the principal and
interest to .m~turity of all the outstanding bonds payable out of said
Bond Redemption Fund, then no further payments need be made therein.
Said amounts so pledged to be paid into said Bond Redemption
Fund and the Reserve Account hereinafter created are hereby declared to
be a prior lien and charge upon the money in said Sewer Revenue Fund
superior to all other chargeB of any kind or nature except the neces-
sary cost of maintenance and ooeration of said sewer system.
Section 6. 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 surplus money in the Sewer
Revenue Fund and out of any other money which it may now or later have
on hand and available for such purpose the sum of $3,500 by August l,
1958.
Payments shall be made into said Reserve Account at the rate
of at least $500 by August l, 1954, and at least $750 by August I of
each year thereafter to and including August l, 1958.
The town further agrees, when said sum of $3,500 has been paid
into said Reserve Account, that it will at all times m~intain that
amount therein until there is a sufficient amount in the Bond Re-
demption Fund and Reserve Account to pay the principal and interest
to maturity of all the outstanding bonds of this issue.
In the event there shall be a deficiency in the Bond Re-
demp~tion Fund to meet maturing installments of either principal or
interest of the bonds authorized herein, such deficiency shall be
~ade up from the Reserve Account by the withdrawal of cash therefrom.
Any deficiency created in the Reserve Account by reason of any such
withdrawal shall then be m~de up from money in the Sewer Revenue Fund
first available after making necessary provision for the required pay-
ments into said Bond Redemption Fund.
All money in the Reserve Account above provided for m~y be
kept in cash or invested in direct obligations of the United States of
America maturing not later than five years from date of purchase and
in no event later than the last maturity of the outstanding bonds of
the issue authorized herein. Interest earned on any such investments
shall be deposited in and become a part of the Bond Redemption Fund.
Section 7~ The corporate authorities of the town hereby
declare, in fixing the amounts to be paid into said Bond Redemption
Fund and Reserve Account, that ~hey have exercised due regard to the
cost of maintenance and operation of said sewer system and have not
obligated the town to set aside and pay into said Fund and Account a
greater amount or proportion of the revenue of said system than in
their judgment will be available over and above such cost of maintenance
and operation and the amount~ necessary to pay such principal and
interest.
Section 8- The Town of Winslow hereby covenants with the
owner and holder of each of the bonds authorized heroin as follows:
(a) That it will establish, maintain and collect rates and
charges for sewage disposal service for as long as any of the bonds
authorized heroin and any sewer revenue bonds which may be later
issued on a parity therewith are outstanding that will m~ke available
for the payment of the principal and interest of such bonds as the
/~me shall become due an amount equal to at least 1.5 times the amount
required each calendar year to pay all of such principal and interest
(except for any balloon maturity year as hereinafter defined).
The amount "available for the payment of the principal and
interest of such bonds as the same shall become due" is hereby defined
as "the gross revenue of the sanitary sewage disposal system and all
additions and improvements thereto and extensions thereof, less expenses
of maintenance and operation of such system but before depreciation."
(b) That if necessary it will set aside out of the proceeds
of the sale of the bonds herein authorized and will deposit in said
~ond Redemption Fund an amount sufficient to pay the interest on the
bonds authorized herein until such time as charges for sanitary sewage
disposal service are made, and such interest payments shall be con-
sidered as part of the cost of the construction of the sewer system
authorized by Ordinance No. 23-
(c) That it will at all times keep and m~intain said sewer
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
the properties of such system unless provision is made for payment
into said Bond Redemption Fund of a sum sufficient to pay the prin-
cipal and interest of all of the outstanding bonds authorized herein
in accordance with the terms thereof, nor will it sell or otherwise
dispose of any portion of such system unless provision is made for
payment into said Bond Redemption Fund of an amount which shall be
n at least the same proportion to the amount of outstanding bonds
of the issue authorized herein 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 service of said bonds from the
entire system for the same period. Any such money so paid into the
Bond Redemption Fund shall be used to retire said outstanding bonds
at the earliest possible date.
(e) That it will not create any special fund or funds for
the payment of any other sewer revenue bonds which will rank on a
parity with or have any priority over the payments out of the Sewer
,~venue Fund into the Bond Redemption Fund and Reserve Account created
herein, except that the town hereby reserves the right, for
(1) the purpose of redeeming, or purchasing and retiring
prior to their maturity, any outstanding sewer revenue bonds of the
tol~n, Or
(2) the purpose of acquiring, constructing and installing
additions and improvements to and extensions of, acquiring necessary
equipment for or making necessary replacements or other capital im-
provements to the sewer system,
to issue additional sewer revenue or sewer revenue refunding 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 Sewer Revenue Fund of the town sufficient to pay
the principal and interest on such additional or refunding 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
~ewer Revenue Fund into the Bond Redemption Fund and Reserve Account
created herein, upon compliance with the following conditions:
First, that at the time of the issuance of such additional
or refunding bonds there is no deficiency in the Bond Redemption Fund
and Reserve Account created herein or in any bond redemption fund or
reserve account which may have been created for the payment of the
principal and interest of any sewer revenue bonds issued on a parity
with the bonds authorized herein and prior to the issuance of such
additional or refunding bonds.
Second, that at the time of the issuance of such additional
r refunding bonds the town shall have on file a certificate from an
independent licensed professional engineer or engineering firm not then
employed by the town except for the purpose of giving such certificate,
showing that the net revenue of the sewer system received from the
twelve months operation immediately preceding the issuance of such
bonds equals at least 1.5 times the amount required to pay principal
and interest each calendar year (exclusive of any balloon maturity
year) on the outstanding bonds of this issue and that such net revenue,
together with the net revenue estimated by said engineer or engineering
thereafter,
firm to be received each calendar year/will equal at least 1.5 times
the amount required to pay the principal and interest each calendar
lOo
year (exclusive of any balloon maturity year) on the outstanding
bonds of this issue, on any bonds which may have been theretofore
issued on a parity therewith, and on such additional or refunding
bonds then being issued.
In the event that the sewer system of the town has
not been in operation for twelve months immediately preceding the
issuance of such additional bonds, the same may still be issued on
~ parity with the bonds authorized herein upon compliance with the
conditions required in paragraph First above and upon receipt by the
town of a certificate from such engineer or engineering firm showing
that his or its estimate of the net revenue of such sewer system to
thereafter
be received each calendar year/will equal at least 1o5 times the amount
required to pay the principal and interest each calendar year (exclusive
of any balloon maturity year) on the outstanding bonds of this issue
and on such additional bonds then being issued.
(f) The words "net revenue" as above used are hereby defined
to be "the gross revenue of such sewer system, including all additions
and improvements thereto and extensions thereof, less maintenance and
_potation expenses of such system but before depreciation."
The words "balloon maturity year" are hereby defined
as "any last maturity year in which the outstanding amount of bonds
of any one issue or series are scheduled to msoture (regardless of
any reservation of prior redemption rights) is more than 1.25 times
the average annual principal maturities of the outstanding bonds of
said issue or series for the three years immediately preceding such
balloon maturity year."
(g) Nothing herein contained shall prevent the town from
issuing sewer revenue bonds which are a charge upon the money in the
~ewer Revenue Fund Junior or inferior to the payments required to be
llo
made into the Bond Redemption Fund and Reserve Account created herein,
or from issuing sewer revenue bonds to refund maturing bonds for the
payment of which moneys are not otherwise available.
(h) That it will cause to be prepared each calendar year an
annual statement of revenues and expenditures and a balance sheet
covering all of the operations of said sewer utility, and will forward
a copy of the same to McLean & Company at its place of business in
-~acoma, Washington, by March first of the succeeding year.
Section 9. The moneys derived from the sale of the bonds
authorized herein shall be used solely for the purposes provided in
Ordinance No. 23 of the town and as authorized herein. The proper
officials of the town are hereby authorized and directed to do every-
thing necessary for the prompt issuance, execution and delivery of
these bonds to the purchaser thereof and for the proper use and
application of the funds derived from the sale thereof.
Section lO. The sale of these bonds under the terms thereof
as set forth in the written offer to purchase the same received from
_~cLean & Company, investment bankers of Tacoma, Washington, under date
of June 10, 1953, as modified by a supplemental offer from said company
dated July 3, 1953, and as provided 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 public peace, property, health
and safety of the people of the Town of Winslow, Washington. An emer-
gency is hereby declared to exist, and this ordinance is hereby declared
to be in full force and effect from and after its passage, approval
12.
and publication as provided by law.
PASSED by the Council of the Town of Winslew, Washington,
and approved by its Mayor at a regular meeting held on July 21, 1953.
TOWN OF WINSLOW, WASHINGTON
By _J~~
Nayor