HomeMy WebLinkAboutOrdinance No. 501•
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BE IT ORDAINED BY ME COUNCIL OF TEE CITr OF LAUREL! FO MUTA, AS FOLIAWS:
Section 1. FindL%s. It is hereby found, determined and declared
that the City of Imurel has been and is now duly authorized by the provisions
of Chapter 24, Title 11 of the Revised Codes of Fontana 1947, as amended, and
by an election and other proceedings heretofore duly taken thereunder to re-
construct, improve, better and extend its municipally owned and operated water
systems, including but not limited to the supply and distribution systems and
all parts thereof and appurtenances thereto; to prescribe and collect just and
equitable rates, charges and rentals for connections therewith and for ser-
vices, facilities and commodities directly or indirectly furnished thereby,
to issue the City's revenue bonds in the aggregate principal amount of $390,000
to provide moneys to pay the cost of said undertaking, and to pledge and
appropriate to the payment of said bonds the net revenues to be derived from
the operation of said system, including improvements, betterments or extensions
thereof hereafter constructed or acquired; that such rates, charges and rentals
will be sufficient during the useful life of said improvements and the term
of said bonds to produce net revenues more than adequate to pay the principal
and Interest when due on said bonds and to create and maintain reasonable re-
serves therefor as herein prescribed; that the City has heretofore approved
plans and specifications Prepared by its Engineer for said undertaking, which
are now on rile in the office of the City Clerk, and it is necessary, and ex-
pedient for the City at this time to issue and sell said revenue,bonds in the
amount of $390,000, for the purpose of paying costs necessarily incurred and
to be incurred by the City in oom ction with said undertaking.
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Section 2. Terms of Bonds. The revenue bonds so to be issued shall
be designated as "Water System Revenue Bonds", shall be in the aggregate princi-
pal amount of $390,000, and in the denomination of $1,000 each, shall be 390
in number and numbered serially from 1 to 390, inclusive, and shall bear date
as of June 1, 1956. Said bonds shall bear interest at the rate of
per cent ( %) per annum, payable
January 1, 1957 and semiannually thereafter on July 1 and January 1 of each
years Said^bonds shall mature serially, lowest numbers first, in the amount
of $10,000 on July 1, 1957, and $20,000 on July 1 in each of the years 1958
through 1976. Bonds of said issue numbered 1 through 190 shall be payable
at their respective stated maturity dates without option of prior payment,
but those numbered 1.91 through 390 shall each be subject to redemption and
prepayment at the option of the City, out of surplus net revenues of said sys-
tem as hereinafter provided, on July 1, 1966 and any interest payment date
thereafter, at par plus interest to accrue to the date fixed for redemption
thereof; provided that not less than thirty days prior to the date specified
for redemption of any of said bonds, notice of the call thereof shall be
mailed by the City Treasurer, by registered mail, to the holder, if known,
of each bond to be red,eemed., and to Kalman & Company, Inc., at Minneapolis,
Minnesota, and to the Bank,
of , and shall also be published in one issue of a
daily newspaper at Laurel, Montana, and in one issue of a daily financial
newspaper published in New York City, New York. The City Treasurer is hereby
authorized and directed to maintain a record of the names and addresses of
the holders of prepayable bonds of said issue, so far as such information
is made available to him.. The principal of and interest on said bonds shall
be payable at said Bank,
in , in any coin or currency of the united States
of America which on the respective dates of payment is legal tender for public
and private debts. The City shall pay, as an operating cost of said system,
the reasonable and customary charges of said paying agent for the receipt and
disbursement of such moneys.
Section 3. Form of Bonds. Said bonds and the interest coupons
appurtenant thereto shall be in substantially the following form:
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equal to not less than one-twelfth of the total principal and interest pay-
ments to fall due within the then next succeeding twelve months on all bonds
of said authorized issue than outstanding, and into which shall also be paid
all of the remaining net revenues until a reserve shall have been accumulated
therein, over and above said current monthly payments, which reserve shall
thereafter be maintained by the transfer of additional net revenues whenever
necessary, in a sum equal to the maximum amount of principal and interest to
fall due within axW subsequent fiscal year on all then outstanding bonds of
said authorized issue; that out of said account the City will pay only the
principal of and interest on bonds of said authorized issue as such principal
and interest respectively become due; that said rates and charges will from
time to time be made and kept sufficient to provide gross income and revenues
adequate for prompt payment of the reasonable and current expenses of operation
and maintenance of said system and to produce sufficient net revenues, in ex-
cess of such current expenses, for the aforesaid payments into said Revenue
Bond Account and for an allowance for depreciation and replacement as required
by said ordinance; that said payments to the Revenue Bond Account constitute
a first and prior lien and charge on the entire net income and revenues to be
derived from the operation of said systems and of all future additions thereto
and betterments thereof; that bonds may be issued on a parity herewith for the
purpose of refunding bonds of said authorized issue, provided that such refund-
ing bonds mature subsequent to the last maturity date of bonds not so refunded,
but no other obligation will be incurred and made payable from said net revenues,
whether or not such obligation shall also constitute a general obligation and
indebtedness of the City, unless the lien thereof shall be expressly made sub-
ordinate to the lien of the bonds of said authorized issue on said net income
and revenues; that all provisions for the security of the holders of this bond
set forth in said Ordinance No. will be punctually and faithfully
performed as therein stipulated; that all acts, conditions and things required
by the Constitution and laws of the State of Montana and the ordinances of
said City to be done, to exist, to happen and to be performed in order to
make this bond a valid and binding special obligation of said City according
to its terms have been done, do exist, have happened and have been performed
as so required; and that the issuance of this bond did not cause the indebted-
ness, whether general or special, of said City to exceed any constitutional
or statutory limitation of indebtedness.
IN WITIOSB f' the City of Iaaarel, Yellowstone County, Montana,
by its City Council, has caused this bond to be executed in its behalf by
the signatures of its Mayor and its City Treasurer, countersigned by its
City Clerk, and sealed with its corporate seal, and the appurtenant interest
coupons to be executed and authenticated by the facsimile signatures of said
officers; and has caused this bond to be dated as of .Juse 1, 1956.
Mayor
Countersigned:
City Clerk City Treasurer
(SL)
(Form of Coupon)
No.
On the let deny of January (July), 19_,_, the City of Laurel,
Yellowstone City, Montana, will pay to bearer at
in , out of the ' special fund and
account named in the band described below,. the sum of
DOI&= lawful money of the Ualted States of America for interest then due on
its Water System Revenue Bond, dated 1, 1956, No. .
(Facsimile signature) (FacsimileJSignature) (Facsimile signature)
Clerk Treasurer Mayor
(Coupons numbered 21 and uVWxds shall also contain
the phrase: "Unless the bond described below is called
for earlier redemption".)
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Section 4. Rxecution of Bonds. Baid bonds shall be forthwith pre-
pared for execution under the direction of the City Clerk and the bond pur-
chaser, and when so prepared shall be executed on behalf of the City by the
signatures of the Mayor and City Treasurer and countersigned by the City
Clerk, and the interest coupons appurtenant to each of said bonds shall be
executed and authenticated by the engraved, printed or lithographed facsimile
signatures of said officers; and after being registered by the City Treasurer
in the nemner specified in Section 11-2318 Revised Codes of Montana 1947,
said Treasurer shall cause said bonds to be delivered to
of , as
purchaser thereof, upon payment of the purchase price as specified in the con-
tract of sale heretofore made and executed pursuant to the bid of said pur-
chaser and the published notice of sale of said bonds, which contract is hereby
approved, ratified and confirmed, and said purchaser shall not be obligated
to see to the application of the purchase price.
Section 5. Water_ System mprovement Fund. The purchase price of
said bonds, except accrued interest and premium, shall be credited and paid
into a separate and special fund which is hereby created and shall be main-
tained upon the books of the City, designated as the "Water System Improvement
Fund," and shall be deposited and secured, as provided in Section 9 hereof.
From said account there shall be paid as incurred all such items as constitute,
in accordance with sound accounting practices, proper costs of the reconstruc-
tion, iWovement, betterment and extension of said system as provided in the
plans and specifications therefor which have heretofore been approved; includ-
ing, but without linitation, all engineering, inspection, fiscal and legal
expenses, the costs of 7amds and easements, the reimbursement of any advances
heretofore made by the City, and all other expenses in connection with the
financing and construction of said undertaking. The moneys in said fund shall
be used only for the purposes above set forth, provided that if any moneys
shall remain after the,completion of the undertaking described in Section 1
hereof and after p nt,of all costs thereof., such remaining moneys shall be
transferred to the Water Fund referred to below.
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in the amount of * , which sum is hereby found and determined
to be available from net revenues heretofore received and is hereby, appropri-
ated for said purpose, and said reserve shall be maintained in said amount or
in such increased amount as shall be determined by the City Council in its
reasonable discretion to be adequate to meet contingencies arising in the
operation and maintenance of said system; but no moneys shall be transferred
to said Operating Reserve after the effective date of this ordinance unless
all current payments into the Revenue Bond Account have been duly made as re-
quired below. Moneys in the Operating Account shall be used solely for the
payment of current operating expenses of said water and sewer system as herein
defined.
8.02 Revenue Bond Account. The net revenues of said system, as referred
to in this ordinance, are hereby defined to include the entire amount remain-
ing of said gross revenues upon each such monthly apportionment, after credit-
ing to the Operating Account the amount required in part 8.01 hereof, exclusive
of WW sum required to maintain the Operating Reserve. Upon each of said
monthly apportionments there shall be set aside and credited to the Revenue
Bond Account out of the net revenues an amount equal to not less than one-
twelfth of the total sum of the principal and interest to become due on all
bonds of the issue herein authorised, and on all bonds refunding the same,
within the then next succeeding period of twelve months; and the entire re-
mainder of said net revenues on hand sha11 also be credited to the Revenue Bond
Account on each such apportionment until there shall have been accumulated in
said account an additional reserve, which shall thereafter be maintained by
the transfer of additional net revenues whenever necessary, in an amount at
all times at least equal to the maximum mount of principal and interest to
fall due on &U such bonds within wW subsequent fiscal year. Moneys from
time to time held in add Revenue Bond Account shall be disbursed only to meet
payments of principal and interest on such bonds when such:-payments become
due, and said reserve shall be used only to pay maturing principal and interest
when other moneys within the account are insufficient therefor; provided that
on wW date when all outstanding bonds of the authorized issue are redeemable
by their.terms, if the amount then on hand in the Revenue Bond Account, in-
cluding said reserve, equals the total principal and interest then due thereon,
the entire amount on hand may be used to retire and prepay said bonds. If
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any payment of principal or interest becomes due when moneys in the Revenue
Bond Account are temporarily insufficient therefor, said payments shall be
advanced out of aqy surplus not revenues theretofore segregated and then on
hand in the Operating Reserve or the Replacement and Depreciation Account or
the Surplus Account.
8.03 Replacement and Depreciation Account. There shall next be set
aside and credited upon each such apportionment to the Replacement and De-
preciation Account such portion of the net revenues of the system, in excess
of the current requirements of the Revenue Bond Account (which portion of the
net revenues is herein referred to as "surplus net revenues"), as the City
Council shall determine to be required for the accumulation of a reasonable
allowance for depreciation of said system and for replacement or renewal of
worn out or obsolete properties comprised therein; provided that the portion
of the surplus net revenues so credited shall be sufficient to produce in each
fiscal year a sum equal to not less than 5% of the gross revenues received
during such fiscal year. Moneys in said account shall be used only for the
purposes above stated or, if so directed, to redeem and prepay or to purchase
bonds of said authorized issue in the meaner and subject to the conditions
provided in part 8.04 (a) and (b) hereof, or to pay principal or interest
when due thereon as required in part 8.02 hereof; provided that in the event
that the City shall hereafter issue bonds over and above the amount authorized
herein, for the purpose of financing the construction and installation of
additional improvements or additions to the water system, surplus net revenues
from time to time received may be segregated and paid into one or more sepa-
rate and additional accounts for the payment of such bonds and interest there-
on, in advance of payments required to be made into the Replacement and
Depreciation Account.
8.04 Sur 1us Account. Any amount of the surplus net revenues from
time to time remaining after the above required applications thereof shall
be credited to the Surplus Account, and the moneys from time to time in said
account, when not required to restore a current deficiency in the Revenue
Bond Account as provided in part 8.02 hereof, may be used for any of the
following purposes and not otherwise:
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(a) Tb redeem and prepay bonds payable from the net revenues
when and as such bonds become prepayable according to their terms; or
(b) To purchase such bonds on the open market, at a price to
yield the City a net return, based on the dollar amount of interest
payable to the maturity of each bond so purchased or to the earliest
date upon which such bond is prepayable according to its terms, which
bonds shall be cancelled forthwith upon being so purchased; or
(c) Tb be held as a reserve for redemption and prepayment of
bonds payable from the net revenues which are not then but will later
be prepayable according to their terms; or
(d) To pay for repairs or for the construction and installation
of improvements or additions to the water system; or
(e) To restore the Operating Reserve or increase the same when
determined to be necessary by the City Council.
(f) No moneys shall at any time be transferred from the Surplus
Account or any other account of the Water Fund to any other fund of
the City, nor shall such moneys at any time be loaned to other municipal
funds or invested in warrants, special improvement bonds or other obli-
gations payable from such other funds.
Section 9. Re sit and Investment of EgAs. The City Treasurer
shall cause all moneys pertaining to the Water Fund and the Water System Im-
provement Fund to be deposited as received with one or more depositary banks
duly qualified in accordance with the provisions of Section 16.2618 of the
Revised Codes of Montana 1947, in a deposit account or accounts which shall
be maintained separate and apart from all other bank accounts of the City of
Laurel, so long as any of the bonds issued hereunder and the interest thereon
shall remain unpaid; and the balance in such accounts, except such portions
thereof as shall be guatwteed by federal deposit insurance, shall at all
times be secured to its full amount by bonds or securities of the types set
forth in said section 16-2618. No moneys shall at any time be withdrawn from
said deposit account or accounts except for the purposes of the Water Fund
and the Water'System Improvement Fund as defined and authorized in this ordin-
ance; provided that moneys from time to time on hand in either of said funds,
in excess of amounts required to be paid from said funds within the next
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succeeding twelve months, may at any time, in the discretion of the City
Council, be invested in securities which are general obligations of the
United States of America, maturing not more than one year from the date of
such investment; and provided, further that moneys pertaining to the Surplus
Account of the Water Fund may, in the discretion of the Council, be invested
in securities which are general obligations of the United States of America
or in general obligation bonds of the City of laurel, without limitation as
to maturity. The income received from any such investments shall be credited
to the fund and account from whose moneys the investment was purchased, and
handled and accounted for in the same manner as other moneys in that fund or
account.
Section 10. Additional Cove ts. The City of Laurel further
covenants and agrees with the purchaser and holders from time to time of all
bonds of said authorised issue and bonds issued to refund the same:
10.01 That it will maintain and hold said system free from all liens
thereon or on the income therefrom other than the liens herein granted or
provided for.
10.02 That it will continue to operate said system as a public utility
and convenience of the City and will not establish or authorize any other
system for supplying service in competition therewith.
10.03 That it will at all times keep said system and the various parts
thereof insured by reputable carriers, in amounts and against all risks for
which like properties are customarily insured by prudent owners thereof, and
will at all times keep persons handling funds of said system adequately bonded
for the faithful performance of their duties and to account for and pay over
such moneys to the City, and in the event of loss or default covered by any
such insurance or bond, will use and apply the proceeds thereof to restore
the loss or damage or to pay and redeem bonds issued hereunder.
10.04 That no portion of the gross or net revenues at way time derived
from said water system will ever be•loaned, invested, used or applied in any
manner or for any purpose other than as specifically prescribed and permitted
in this ordinance.
10.05 That it will at all times keep proper and adequate books of account
showing all receipts and disbursements of moneys derived from the operation of
said system and the bonds issued hereunder, in accordance with the laws of the
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State of Montana and the regulations of the Public Service Commission adopted
pursuant thereto, which books shall show the segregation and application of
the revenues of said system, in accordance with the provisions of this ordi-
nance, and said books skull be open to inspection and copying during all
reasonable business hours by the holder of $5,000 or more principal amount of
the bonds issued hereunder or his agent or attorneys.
10.06 That it will cause said books to be audited annually by certified
public accountants mutually agreeable to the City and to said Kalman & CoaLwmy,
Inc., which audit shall be completed and available for bondholders' examination
not later than two months following the end of each fiscal year, and will on
request, without cost, furnish a copy of the report of any such audit to anyy
holder of $5,000 or more principal amount of bonds issued hereunder. The City
will also cause to be prepared and forwarded to said Kalman & CompwW, Inc.
not later than the 15th day of each month a report showing the cash receipts
of and expenditures from each of the several accounts of the Water Fund during
the preceding month, and the cash balance on hand in and the amount of out-
standing and unpaid warrants on each of said accounts as of the last day of
such preceding month.
10.07 That the holders of 20% or more in aggregate principal amount of
the bonds of the authorized issue and of say bonds issued to refund the same
which are at any time outstanding may, either at law or in equity, by suit,
action, mandemus, or other proceedings, protect and enforce the rights of
all owners of such bonds, and enforce and compel the performance of ally-cove-
nants and duties of the City and its officials as herein specified, including
the fixing and maintaining of sufficient rates, charges and rentals for the
services afforded by the system, the collection and proper segregation of the
revenues, and the proper application thereof.
10.08 That the insurance and fidelity bond premiums and the cost of
the bookkeeping and audits herein provided for and of the billing and collec-
tion of the water rates, charges and rentals shall be payable from said
Operatitig Account.
10.09 That except as herein expressly authorized, no obligation will
be iucurxed by the City and made payable frail revenues of said system, whether
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or not such obligation shall also constitute a general obligation and indebt-
edness of the City, unless the lien thereof shall be expressly made subordi-
nate to the lien of the bonds of said authorized issue--on the net income and
revenues of said system.
10.10 That the schedules and bases of rates, charges and rentals imposed
and to be imposed for the services and facilities provided by said system shall
be fixed and revised from time to time in aceardance with any regulations in
respect thereto made by the Public Service Commission of the State of Montana,
so that the gross revenues of said system will be at least sufficient to pay
the operating expenses thereof as herein defined, and to produce net revenues
adequate to pay principal and interest when due on all bonds of the issue
herein authorized and to create as soon as may be, and thereafter to maintain,
an additional revenue bond reserve at all times equal to the maximum amount
of the principal and interest payments to became due within any succeeding
fiscal year on all bonds payable from the Revenue Bond Account, and also to
produce surplus net revenues adequate for a reasonable allowance and reserve
for replacement and depreciation of said system as provided in part 8.03 here-
of plus a reasonable return upon the City's investment therein; and it is
further found and determined to be necessary and it is hereby covenanted and
agreed that said rates, charges and rentals shall be so fixed and revised as
to produce net revenues each month at least equal to one-eighth of the sum of
the principal and interest payments required to be made from the Revenue Bond
Account within the next succeeding twelve months, it being the intent hereof
that the net revenues received during each fiscal year shall be not less
than one and one-half times the sum of the principal and interest payments
to be made from said account during such fiscal year.
Section 11. Regulations for Water Service. The employees of the
City's Water Department shall, under the direction and control of this Council,
keep the books of account, issue the statements and collect the bills for the
rates, charges and rentals for water service and for other moneys currently
receivable on account of said system. All moneys so collected shall be de-
posited with the City Treasurer daily, and receipt taken therefor and the
duplicate of such receipt shall be deposited with the City Clerk by the City
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Treasurer. The rules and regulations for operation of the Water Department
and the use of water service from said system shall be as provided in the
existing ordinances of the City and ordinances subsequently adopted amendatory
thereof or supplemental thereto; provided that all bills for water service
shall become due and payable on the tenth day of each month, and if any bill
is not paid on or before the 30th day of the month when due, or upon failure
of any customer to comply with said rules and regulations within ten days
after notice of violation thereof, the water service to the premises involved
shall be discontinued and shall not be resumed until payment of all past due
bills for water service and compliance with all such rules and regulations.
Failure on the part of the Water Superintendent to enforce the provisions here-
of with reference to the payment of bills or compliance with the regulations
shall constitute malfeasance for which such Superintendent and the surety or
the sureties on his bond shall be personally liable.
Section.12. Water Rates and Charges. Until otherwise prescribed
by ordinance, the gates,, charges and rentals for the services and facilities
provided by the water system shall be those filed by the City with the Public
Service Commission of the State of Montana pursuant to said Commission's
Order No. 2500 Docket No. 4257 ?0 dated March, 21 , 19_a;
Mater meters shall be installed and maintained in all public buildings owned
by the City of Laurel and all other public corporations and political sub-
divisions, and the water service to each such public building shall be billed
to the public corporation concerned at the same rates as those applicable to
private patrons of the water system. The City of Laurel shall also pay the
sum of * per month in respect of each water brdrant now or here-
after maintained by it, such sum being found and determined to represent the
reasonable cost and value of water service to be furnished and made available
to the City for purposes of sanitation and maintenance of streets, parks and
public plaaes and fear fire protection. All amounts to become due in respect
of service furnished and avqWXe to the City shall be included in the annual
budget and shall be,psid as the service accrues out of the City's general
funds. Amounts so received.from the City and Pram all other public corporations
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shall be handled and accounted for in the some manner as other revenues of
said water system.
Section 13. Re Pals. All provisions of ordinances, resolutions
and other actions and proceedings of the City and of the City Council which
are in amy wavy inconsistent with the terms and provisions of this ordinance
are hereby repealed, amended and rescinded to the full extent necessary to
give full farce aad effect to the provisions of this ordinance.
Section 14. Effective Date. This vrdinanae shall be in full force
and effect from and after its final passage and approval according to law.
Passed by the City Council and approved by the Mayor of the City
Of Laurel, Montana, this day of , 19?6.
Approved:
)k or
Attest:
City clerk
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IS.
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STA'1'& Or MONTA )
) so.
COUIM OF YMLhOWBTM )
I, the uVders4PDd, being the duly qualified and acting City Clerk
Of the City of Laurel, Montana, hereby certify that the attached and fore-
going is a full, true and correct copy of Ordinance No. of said
City, which was duly passed by the City Council at a meeting thereof duly
called and held on the date therein indicated, a quorum being present at
said meeting and not less than a majority of the whole number of the City
Council voting in favor thereof, and said ordinance has been duly approved
by the Mayor of the City of Laurel and recorded as required by law, and no
amendments thereto have subsequently been adopted, and said ordinance is now
in full force and effect.
WIT my hand and the seal of said city this day of
City Clerk
(SEAL)
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