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ORD 57-55 INSTALLATION OF AN EXTENSION OF WATEROP~TNANCE NO. 55 AN ORDINANCE providing for the construction and installation of an;extension of water distribution service, providing for its subsequent operation, maintenance and control, establishing its costs and providiD4~ a mode of payment, providing terms, provisions, covenants and obligations of the Town incident to said payment, creating a special fund, providing for the sale of warrants, declaring an emergency and authorizing an emergency expenditure in connection therewith. WHEREAS, the Town of Winslow has been and is operating a municipally owned water system and in the Judgment of its council It is in the best interest of the public health, safety and welfare that water service be extended at the earliest practicable time so as to reach and serve the area abutting on both sides of G~ow Street from the intersection at Wyatt Avenue, north a distance of approxi- mately 2600 feet, all within the limits of the Town of Winslow, and WHEREAS, no general indebtedness is to be incurred by the Town of Winslow in the acquisition, construction, installation, main- tenance or operation of such extension, and WHEREA~, it is intended that such extension, the reasonable cost of which is estimated to be $7,000.00, shall be paid for by the proceeds of a sale of revenue warrants, which warrants in such principal amount shall be a claim only against the special fund herein created. BE IT ORDAINED by the Town Council of the Town of Winslow in regular session as follows: SECTION 1. There shall be constructed and installed at the earliest practicable time, an extension of the Town of Winslow water distribution line from the existing line at the intersection of 'Wyatt Avenue and Grow Street north along Grow 8treat a distance of approximately 2600 feet, all in accordance with engineer's preliminary drawings heretofore recetved~ SECTION 2. The total cost of doing all the foregoing, it is estimated, will not be in excess of $7,000.00, which emil be produced by the issuance of revenue warrants of the Town of Winslow as authorized by this ordinance. SECTION 3- The Town of Winslow is hereby authorized to sell and to issue its warrants as berethalter described, in the principal amount and not in excess of $7,000,00, which warrants shall bear interest at the rate of four percent (4%) per annum payable annually after date, to pay the cost of the construction of such extension. Said warrants and interest thereon shall not constitute an indebtedness of the Town of Winslow but shall be payable and paid solely out of and from a fixed amount of the earnings and revenues from said system of water. SECTION 4. ~hat there be and is hereby created a special fund of the Town to be known as mWinslow May let, 1957 Water Revenue Warrant Redemption Pundm, which fund is to be drawn upon for the sole purpose of paying the principal of and interest on the water revenue warrants authorized herein. From and after the date of issue of said warrants, and as long as any of the same are outstanding and unpaid, the Town Treasurer shall set aside and pay into said Wartsrot Redemption Fund out of the Water Revenue Fund of the Town created by Ordinance No. 22, at least thirty days prior to the respective dates on which the interest or principal and interest of said warrants shall become due, amounts sufficient to pay such principal and interest. SECTION 5- Said Warrant issue, not in excess of $7,000.00, shall consist of twenty-eight (28) warrants of the denomination of $250.00 each, numbered from i to 28, both inclusive, shall run for a period of ten (lO) years from date of issue but may be called for pay- ment at par in inverse numerical order on any interest payment date. Said warrants shall be serial in form and bear interest of the rate of four percent (4%) per annum payable annually after date of issue of said warrants and maturing according to the following schedule: -2- WABRANT NO. 1 and 2 3 and 4 5 and 6 7 and 8 9, 10 and 11 12, 13 and 1~ 15, 16 and 17 18, 19 and 20 21, 22, 23 and 2~ 25, 26, 27 and 28 WARRANT SCHEDULE DENOMINAT I ON MATURITY T OrAL $250.00 May 1, 1958 $500.00 $250.00 May l, 1959 $500.00 $250.00 May l, 1960 $500.00 $250.00 May l, 1961 $500.00 $250.00 May 1, 1962 $750-00 $250.00 May l, 1963 $750.00 $250 · O0 May l, 1964 $750.00 $250.00 May 1, 1965 $750-00 $250.00 May 1, 1966 $1,000.00 $250.00 May l, 1967 $1o000.00 $7,ooo.oo Said warrants shall be payable at the office of the Town of Winslow in Winslow, Kitsap Oounty, Washington, and shall be signed for the Town of Winslow by the Mayor thereof and attested by the Clerk of the Town, and consistent with the provisions hereln elsewhere made the said warrants and the interest thereon shall be payable only out of the special fund heroin created. Said warrants and the interest thereon thus issued against ~he fixed amount of revenues and special fund shall be a valid claim of the holder thereof only as against said fixed amount of revenues and said special fund (after firs~ deducting the cost of operation ar~ maintenance of the extended portion of the system as heretofore provided and after deducting that part of revenues which may have heretofore been committed by ordinance) and the money required hereby to be paid therein shall not constitute an indebtedness of the Town of Winslow within the meaning of the Constitution and the laws of the State of Washington, and each warrant shall state on its face that it is payable from said Special Extension Fund of May 1st, 1957, and shall name this ordinance which created such special fund by reference to its number. The Town Council does hereby state and certify that in creating such special fund and in setting aside and providing for the payment into such special fund of the amounts necessary for the payment of the principal and interest of the warrants, that this Town Council has taken into consideration and has had due regard to the costs of operation and maintenance of the extended portion of this system as heretofore provided, and to all portions and parts of revenue previously pledged as a fund for the payment of bonds, warrants or other indebtedness, and the Town Council will maintain rates adequate to service such warrants and maintain the extended portion of the system as heretofore defined in sound financial condition. SECTION 6. It is further covenanted and ordained that the Town Council, until all of said warrants and the interest thereon shall have been fully paid, shall not reduce the rates required by it for use of the extended portion of the system as heretofore defined, or O£ the water system itself, so thst the gross revenues shall be insufficient to permit the making of payments into said special fund as heroinbefore required, and that if at any time such gross revenues shall not be sufficient to pay the costs of operation and maintenance and service such other obligations as to which the Town has heretofore become committed, and the charge upon revenues hereby created in favor of the warrants heroin authorized, then the said Town shall increase its rates to such revenues in an amount as will be sufficient to provide for the payment of all such costs of operation and maintenance and for the servicing of the debt created hereby; and that in order to preserve the priority of this special fund, the Town of Winslow shall not create or permit to be created so long as any of said warrants shall be outstanding and unpaid, any indebtedness or charge whatsoever which shall be a charge s~ainst the revenues of the water system superior to the charges created by this ordinance and that any future charge or spools1 fund indebtedness which may be created by the Town of Winslow made payable out of the revenues of the water system shall constitute a charge and lien subject to the charge and lien created by this ordinance. SECTION 7. The moneys derived from the sale of said warrants shall be used solely for ~he purpose provided hemin, and the proper officials of the Town are hereby au~horized and directed to do everythlr~ necessary for the execution, sale and delivery of said warrants and for the prompt construction and installation of said extension to the water system of the Town out of =he proceeds of the sale thereof. 8ECTION 8. 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, Washin[ton. An emergency is hereby declared to exist and this ordinance is hereby declared to Be in full force and effect from and after its passage, approval and publication as provided by law. SECTION 9. If any section, sub-section, sentence, clause or phrase of this ordinance is for any reason held to be invalid or uncons~itutlonel, such decision shall not affect the validity of the remainin[ portion of this ordinance. PASSED unanimously by the Council of the Town of Winslow, Weshin~ton, and approved by its Mayor at a regular meetin~ held on ~he/g~ day of ~J~ , 1957. Clerk