Chapter 8
FINANCE
CONTENTS
ARTICLE I. IN GENERAL
§ 8-1. Fiscal year.
§ 8-2. Depository.
§ 8-3. Financial statement.
§§ 8-4 to 8-8. Reserved.
ARTICLE II. BONDS
DIVISION 1. SEWERAGE SYSTEM GENERAL OBLIGATION BONDS
ISSUE OF 2/1/73 (AUTHORIZED BY VOTERS ON APRIL 6, 1971)
§ 8-9. $57,000 (of an authorized $57,000) in Bonds issued.
§ 8-10. Bonds and coupons; form of.
§ 8-11. Bonds to be registered with state auditor.
§ 8-12. Tax levied to retire bonds and interest.
§ 8-13. Tax collection; manner of.
§ 8-14. Duty of city treasurer.
§ 8-15. Bonds to be executed.
§§ 8-16 to 8-18. Reserved.
DIVISION 2. WATER-SEWER SYSTEM REVENUE BONDS
(AUTHORIZED BY VOTERS ON APRIL 4, 1972)
§ 8-19. Cost estimates.
§ 8-20. $125,000 in Bonds issued ($17,500 refund and $107,500 new).
§ 8-21. Execution of bonds; manner of.
§ 8-22. Bonds and coupons; form of.
§ 8-23. Bonds are callable.
§ 8-24. Bonds to be retired by water-sewer system revenues.
§ 8-25. Proceeds to be deposited in Water-Sewer Construction Fund.
§ 8-26. Revenues to be deposited in Water-Sewer Revenue Fund.
§ 8-27. Sinking Fund.
§ 8-28. Payments into the Sinking Fund.
§ 8-29. Reserve Fund.
§ 8-30. Replacement and Extension Fund.
§ 8-31. Surplus revenues.
§ 8-32. Insufficient revenues; procedure to follow.
§ 8-33. Responsibilities of city to bondholders.
§ 8-34. Records.
§ 8-35. Requirements for issuance of additional Water-Sewer Revenue Bonds.
§ 8-36. Default.
§ 8-37. Provisions of ordinance to apply.
§ 8-38. Amendments.
§ 8-39. Severability.
§§ 8-40 to 8-42. Reserved.
DIVISION 3. GENERAL OBLIGATION WATERWORKS
SYSTEM BONDS - $125,000 SERIES 1984
§ 8-43. Definitions.
§ 8-44. Authorization of and security for the Bonds.
§ 8-45. Description of the Bonds, designation of Paying
Agent and Bond Registrar.
§ 8-46. Method and place of payment of principal of and
interest on the Bonds.
§ 8-47. Execution, authentication and delivery of the
Bonds.
§ 8-48. Registration, transfer and exchange of Bonds.
§ 8-49. Persons deemed owners of Bonds.
§ 8-50. Mutilated, lost, stolen or destroyed Bonds.
§ 8-51. Cancellation and destruction of Bonds upon payment.
§ 8-52. Redemption of Bonds prior to stated maturity.
§ 8-53. Form of Bonds.
§ 8-54. Disposition of Bond proceeds.
§ 8-55. Arbitrage covenant.
§ 8-56. Levy and collection of annual tax.
§ 8-57. Transfer of funds to Paying Agent and Bond Registrar.
§ 8-58. Defeasance.
§§ 8-59 to 8-99. Reserved.
ARTICLE III. PROCUREMENT POLICY
§ 8-100. Purchasing agent designated.
§ 8-101. Duties generally.
§ 8-102. Gifts and rebates.
§ 8-103. Purchase orders.
§ 8-104. Purchasing and competitive bidding.
§ 8-105. Notice defined.
§ 8-106. Bid opening procedure.
§ 8-107. Lowest qualified bidder.
§ 8-108. Justification of award.
§ 8-109. Tie bids.
§ 8-110. Open market procedure.
§ 8-111. Emergency purchases.
§ 8-112. Exemptions from procurement procedures.
§ 8-113. Surplus property.
§ 8-114. Announcement and method of sale.
§ 8-115. Minimum bid requirement and rejection of bids.
§§ 8-116 to 8-120. Reserved.
Chapter 8
FINANCE
ARTICLE I
IN GENERAL
Sec. 8-1. Fiscal year.
Each fiscal year shall commence on the first day of July and end on the last day of June following. (§301.005, 1978 Code)
Sec. 8-2. Depository.
The board of aldermen may at its first regular meeting in either the months of January, April, July or October of each year select a depository for the funds of the city for such length of time and under such rules and regulations as said board may by ordinance prescribe; provided always, that such depository shall be a bank in corporation or an individual banker or trust company doing business within the city; and provided further, however, that if such depository cannot be selected, or such satisfactory arrangements made, the board of aldermen shall have the power and authority to loan said funds of the city upon the same terms and under the same conditions as provided by law for the loaning of county and school moneys. (§301.009, 1978 Code)
Sec. 8-3. Financial statement.
The board of aldermen may semiannually in January and July of each year make out and spread upon their records a full and detailed account and statement of the receipts and expenditures and indebtedness of the city for the half year ending December 31st and June 30th, preceding the date of such report, which account and statement may be published in some newspaper in the city, provided however, should there be no newspaper published in the City of Vienna, then said statement may be published in the next nearest newspaper published in the county in which the City of Vienna is situated. (§301.017, 1978 Code)
Secs. 8-4 to 8-8. Reserved.
ARTICLE II
BONDS
DIVISION 1. SEWERAGE SYSTEM GENERAL
OBLIGATION BONDS ISSUE OF 2/1/73 (AUTHORIZED BY
VOTERS ON APRIL 6, 1971)
Sec. 8-9. $57,000 (of an Authorized $57,000) in Bonds issued.
(a) That for the purpose of constructing a sanitary sewerage system for said city, there shall be issued and hereby are issued Sewerage System Bonds of the City of Vienna, Missouri, in the total principal amount of $57,000.
(b) Said issue shall consist of 57 bonds, numbered from 1 to 57, inclusive, said bonds being in the denomination of $1,000 each. All of said bonds shall be dated February 1, 1973, and said bonds shall become due serially on February 1 in each year, without option of prior payment, and shall bear interest as follows:
MATURITY INTEREST
NUMBERS TOTAL FEBRUARY 1 RATE
1 $1,000 1974 5%
2 - 3 2,000 1975 5%
4 - 5 2,000 1976 5%
6 - 7 2,000 1977 5%
8 - 9 2,000 1978 5%
10 - 11 2,000 1979 5%
12 - 13 2,000 1980 5%
14 - 16 3,000 1981 5%
17 - 19 3,000 1982 5%
20 - 22 3,000 1983 5 1/4%
23 - 25 3,000 1984 5 1/4%
26 - 28 3,000 1985 5 1/4%
29 - 31 3,000 1986 5 1/4%
32 - 34 3,000 1987 5 1/4%
35 - 37 3,000 1988 5 1/4%
38 - 41 4,000 1989 5 1/2%
42 - 45 4,000 1990 5 1/2%
46 - 49 4,000 1991 5 1/2%
50 - 53 4,000 1992 5 3/4%
54 - 57 4,000 1993 5 3/4%
Bonds numbered 1 to 19, inclusive, shall bear interest at the rate of five percent (5%) per annum; bonds numbered 20 to 37, inclusive, shall bear interest at the rate of five and one-quarter percent (5 1/4%) per annum; bonds numbered 38 to 49, inclusive, shall bear interest at the rate of five and one-half percent (5 1/2%) per annum; and bonds numbered 50 to 57, inclusive, shall bear interest at the rate of five and three-quarters percent (5 3/4%) per annum.
Interest on said bonds shall be payable February 1, 1974 and thereafter semiannually on August 1 and February 1 in each year.
Both principal of and interest on said bonds shall be payable in lawful money of the United States of America at the Maries County Bank, in the City of Vienna, Missouri. (§383.005, 1978 Code)
Sec. 8-10. Bonds and coupons; form of.
Said bonds shall be executed in the form and shall contain recitals substantially as follows:
No. __________ $1,000
UNITED STATES OF AMERICA
STATE OF MISSOURI
COUNTY OF MARIES
CITY OF VIENNA
SEWERAGE SYSTEM BOND
KNOW ALL MEN BY THESE PRESENTS: That the City of Vienna, in the County of Maries, State of Missouri, hereby acknowledges itself to be indebted and, for value received, hereby promises to pay to bearer the sum of
ONE THOUSAND DOLLARS
on the first day of February, 19___, with interest thereon from the date hereof at the rate of _________________ percent (_____%) per annum, payable February 1, 1974, and thereafter semiannually on August 1 and February 1 in each year, on presentation and surrender of the annexed interest coupons as they severally become due, both principal of and interest on this bond being payable in lawful money of the United States of America; and both principal of and interest on this bond are hereby made payable at the Maries County Bank, in the City of Kansas City, Missouri. And said City of Vienna, Missouri, is held and firmly bound by these presents, and the full faith, credit and resources of said City are hereby irrevocably pledged for the prompt payment of said principal and interest at maturity.
This bond is one of a series of 57 bonds of like date and tenor, excepting number, interest rate and maturity, aggregating the principal amount of $57,000 issued by said city for the purpose of constructing a sanitary sewerage system for said city, in full compliance with the constitution and laws of the State of Missouri, and pursuant to an election duly held in said city on April 6, 1971, at which election more than two-thirds of the legal voters of said city voting at said election voted in favor of the issuance of said bonds, and ordinances duly passed and proceedings duly held by the board of aldermen and approved by the mayor of said city.
And it is hereby declared and certified that all acts, conditions and things required by law to be done and to exist precedent to and in the issuance of this bond have been properly done and performed and do exist in due and regular form and manner as required by the constitution and laws of the State of Missouri; that a direct annual tax upon all of the taxable tangible property situated in said city has been levied for the payment of the principal and interest of this bond as they fall due, and that the total indebtedness of said city, including this bond and the series of which it is one, does not exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the City of Vienna, Missouri, has executed this bond by causing it to be signed by its mayor and attested by its city clerk, and its corporate seal to be hereto affixed, and has caused the annexed interest coupons to be executed with the facsimile signatures of said officers, and this bond to be dated this first day of February, 1973.
____________________________
Mayor
ATTEST:
____________________________
City Clerk
(FORM OF COUPON)
First Coupon Other Coupons
for 12 Months for 6 Months
due February 1, due August 1 and
1974 February 1
Bonds 1 - 19 $50.00 $25.00
20 - 37 52.50 26.25
38 - 49 55.00 27.50
50 - 57 57.50 28.75
No. __________ $ __________
On the first day of February/August, 19_______, the City of Vienna, Missouri, promises to pay to bearer the sum of ______________ dollars and _____ cents at the Maries County Bank, in the City of Vienna, Missouri, in lawful money of the
United States of America, being __________ months' interest due on that date on its Sewerage System Bond, dated February 1, 1973, No. _____.
_________(facsimile)________
Mayor
ATTEST:
_________(facsimile)_________
City Clerk
---------------------------------------------------------------------------------
OFFICE OF THE STATE AUDITOR
STATE OF MISSOURI )
) SS.
JEFFERSON CITY )
I, the undersigned, State Auditor of Missouri, do hereby certify that all the conditions of the laws of the State of Missouri have been complied with in the issuance of the within bond, and that all the conditions of the contract under which it was ordered to be issued have been complied with, the evidence of which is on file in my office; and I further certify that this bond has been duly registered in my office in compliance with the laws of the State of Missouri.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of my office at Jefferson City, this _____ day of ______________, 1973.
______________________________
State Auditor of Missouri
By _____________________________
Deputy State Auditor
(§383.007, 1978 Code)
Sec. 8-11. Bonds to be registered with state auditor.
When said bonds have been executed as aforesaid, they shall be submitted to the state auditor for registration as provided by law, and when duly registered, they shall be delivered to the Maries County Bank, Vienna, Missouri, the purchaser thereof, upon payment of the purchase price. (§383.009, 1978 Code)
Sec. 8-12. Tax levied to retire bonds and interest.
That for the purpose of providing for the payment of the interest and principal of said $57,000 of Sewerage System Bonds of the City of Vienna, Missouri, as they fall due, there is hereby levied upon all of the taxable tangible property situated in the City of Vienna, Missouri, a direct annual ad valorem tax sufficient to produce the following amounts for use in the following years:
INTEREST PRINCIPAL
YEAR FEBRUARY 1 AUGUST 1 FEBRUARY TOTAL
1974 $3,015.00
$1,482.50
$1,000 $5,497.50
1975 1,482.50
1,432.50
2,000
4,915.00
1976 1,432.50
1,382.50
2,000
4,815.00
1977 1,382.50
1,332.50
2,000
4,715.00
1978 1,332.50
1,282.50
2,000
4,615.00
1979 1,282.50
1,232.50
2,000
4,515.00
1980 1,232.50
1,182.50
2,000
4,415.00
1981 1,182.50
1,107.50
3,000
5,290.00
1982 1,107.50
1,032.50
3,000
5,140.00
1983 1,032.50
953.75
3,000
4,986.75
1984
953.75
875.00
3,000
4,828.75
1985
875.00
796.25
3,000
4,671.25
1986
796.25
717.50
3,000
4,513.75
1987
717.50
638.75
3,000
4,356.25
1988
638.75
560.00
3,000
4,198.75
1989
560.00
450.00
4,000
5,010.00
1990
450.00
340.00
4,000
4,790.00
1991
340.00
230.00
4,000
4,570.00
1992
230.00
115.00
4,000
4,345.00
1993
115.00
---
4,000
4,115.00
(§383.011, 1978 Code)
Sec. 8-13. Tax collection; manner of.
That the taxes above levied shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner that other city taxes are levied and collected, and the proceeds derived from said taxes shall be used exclusively for the payment of the principal and interest of the bonds herein authorized. (§383.013, 1978 Code)
Sec. 8-14. Duty of city treasurer.
The city treasurer is hereby authorized to forward to the Maries County Bank, in Vienna, Missouri, sums sufficient to pay both principal and interest of said bonds and interest coupons as the same become due, and also to pay the usual and customary bank collection charges made by banks throughout the United States of America for the collection of principal and interest. (§383.015, 1978 Code)
Sec. 8-15. Bonds to be executed.
Said bonds shall be signed by the mayor and attested by the city clerk of said city, and shall have the corporate seal of the city affixed thereto, and interest coupons shall be attached to said bonds, which coupons shall bear the facsimile signatures of the city clerk and mayor of said city. (§383.017, 1978 Code)
Secs. 8-16 to 8-18. Reserved.
ARTICLE II
BONDS
DIVISION 2. WATER-SEWER SYSTEM REVENUE BONDS
(AUTHORIZED BY VOTERS ON APRIL 4, 1972)
(Voters approved the issuance of $170,000 in Bonds - $19,500 to retire existing Waterworks Revenue Bond and $150,500 to improve the Water-Sewer System.)
Sec. 8-19. Cost estimates.
(a) That the board of aldermen of the City of Vienna, Missouri, hereby recites, finds, and determines that an estimate of the cost of improving and extending the combined waterworks and sewerage system of said city by constructing a sewerage system has been made, the amount of such estimate being $760,580.00.
(b) That said improvements and extensions to the combined waterworks and sewerage system of said city shall be constructed in accordance with the plans and specifications therefore prepared by the city's consulting engineer, heretofore approved by the board of aldermen and on file in the office of the city clerk, including any alterations in or amendments to said plans and specifications deemed advisable by the city's consulting engineer and approved by the board of aldermen. (§384.003, 1978 Code)
Sec. 8-20. $125,000 in Bonds issued ($17,500 refund and $107,500 new).
(a) That for the purpose of extending and improving the combined waterworks and sewerage system of said city by constructing a sewerage system and paying, retiring and refunding $17,500 principal amount of Waterworks Revenue Bonds of said city now outstanding, there is hereby authorized and directed to be issued the interest bearing Combined Waterworks and Sewerage System Revenue Bonds of the City of Vienna, Missouri, in the principal amount of $125,000, said Bonds to be payable solely from the net income and revenues arising from the operation of the combined waterworks and sewerage system of the city, as hereinafter provided.
(b) That the issue of Combined Waterworks and Sewerage System Revenue Bonds in whatever form issued shall be dated as of the date of their sale and delivery to the purchaser and full payment is made therefor, which date shall not be prior to July 1, 1975. Said Bonds shall become due and shall bear interest as follows:
ANNUAL
PRINCIPAL MATURITY INTEREST
AMOUNT JULY 1 RATE
$2,000 1978 5%
2,000 1979 5%
2,000 1980 5%
2,000 1981 5%
2,000 1982 5%
2,000 1983 5%
2,000 1984 5%
2,000 1985 5%
2,000 1986 5%
2,000 1987 5%
2,000 1988 5%
3,000 1989 5%
3,000 1990 5%
3,000 1991 5%
3,000 1992 5%
3,000 1993 5%
3,000 1994 5%
4,000 1995 5%
4,000 1996 5%
4,000 1997 5%
4,000 1998 5%
4,000 1999 5%
5,000 2000 5%
5,000 2001 5%
5,000 2002 5%
5,000 2003 5%
6,000 2004 5%
6,000 2005 5%
6,000 2006 5%
6,000 2007 5%
6,000 2008 5%
7,000 2009 5%
7,000 2010 5%
The Bonds shall be either coupon Bonds or fully registered Bonds without coupons as hereinafter provided, as designated by the original purchaser of the Bonds.
The Bonds shall be numbered from 1 consecutively upward in order of maturity. Serial numbers on each fully registered Bond shall be preceded by the letter "R" so as to distinguish between coupon Bonds and fully registered Bonds. Coupon Bonds shall be in the denomination of $1,000 or multiples thereof. Registered Bonds without coupons shall be in any denomination requested by the holder not to exceed the aggregate principal amount of Bonds purchased or surrendered for exchange. Coupon Bonds shall bear interest from their date. Registered Bonds shall bear interest from the effective date of registration, which date shall be set forth on the registration blank provided on the Bond. Interest shall be payable annually on July 1 of each year and, at the option of the purchaser, interest only may be payable in annual installments for not more than five years after the date of said Bond and thereafter both principal and interest may be payable in one annual installment calculated in an amount necessary to pay both the principal and the interest on said Bond from its date to its maturity.
Coupon Bonds and the interest thereon shall be payable to bearer in lawful money of the United States of America upon presentation and surrender of such Bonds or interest coupons as they respectively become due at St. Louis Union Trust Company, St. Louis, Missouri, said bank being hereby designated as the city's paying agent for the payment of the principal of and interest on the coupon Bonds herein authorized and referred to herein as the "Paying Agent."
The principal of and interest on fully registered Bonds without coupons shall be payable by check or draft in lawful money of the United States of America made payable to the order of the registered owner of said Bonds by the treasurer of said city who shall act as Bond Registrar for all such registered Bonds and shall keep in his office a record of all such registered Bonds.
The original purchaser of any subsequent owner of said Bonds may designate a place certain that the principal and interest of the Bonds shall be payable, other than the Paying Agent for coupon Bonds or the Bond Registrar for registered Bonds hereinbefore designated. Such designation shall be made by registered or certified mail addressed to the mayor of said city and mailed not less than 40 days prior to any due date of principal. Said Bonds shall be subject to redemption and payment prior to the stated maturity thereof only as provided in Section 8-23 of this Division. (§384.005, 1978 Code)
Sec. 8-21. Execution of Bonds; manner of.
(a) The Bonds, including any Bonds issued in exchange or as substitutions for the Bonds initially delivered, shall be executed for and on behalf of the city by the signature of the mayor and attested by the clerk of said city under the seal of said city. Any interest coupons attached to said Bonds representing the interest thereon shall bear the facsimile signatures of said mayor and clerk.
(b) The mayor and clerk of the City of Vienna, Missouri, are hereby authorized and directed to prepare and execute the Combined Waterworks and Sewerage System Revenue Bonds herein authorized and to cause the delivery of said Bonds to the purchaser thereof in the form designated by him in writing and delivered to the city clerk and accept payment of the purchase price as provided by written agreement between the purchaser and the city; provided, however, the city shall deposit in escrow with the paying agents for said $17,500 principal amount of outstanding Waterworks Revenue Bonds of said city, dated March 1, 1954, sums sufficient to redeem and pay said outstanding bonds, including accrued interest and premiums on March 1, 1975, concurrently with the payment by the purchaser to the city of the purchase price for the $125,000 principal amount of Combined Waterworks and Sewerage System Revenue Bonds herein authorized and said Combined Waterworks and Sewerage System Revenue Bonds shall be delivered to the purchaser only after the payment, retirement and surrender of said Waterworks Revenue Bonds, dated March 1, 1954. Upon the payment, retirement and surrender of said Waterworks Bonds and all interest coupons pertaining thereto, said Waterworks Revenue Bonds and all interest coupons pertaining thereto shall be cancelled, destroyed and rendered valueless and proper evidence of the cancellation and destruction of said Bonds and coupons shall be filed in the office of the city clerk.(§384.009, 1978 Code)
Sec. 8-22. Bonds and coupons; form of.
All coupon Bonds issued or exchanged, the interest coupons attached thereto and all fully registered Bonds issued or exchanged shall be in substantially the following form:
(FORM OF COUPON BOND)
No. _____ $ _______
UNITED STATES OF AMERICA
STATE OF MISSOURI
COUNTY OF MARIES
CITY OF VIENNA
COMBINED WATERWORKS AND SEWERAGE SYSTEM
REVENUE BOND
KNOW ALL MEN BY THESE PRESENTS: That the City of Vienna, Missouri, for value received, hereby promises to pay out of the funds hereinafter specified, to the bearer, the sum of
__________ DOLLARS
in lawful money of the United States of America, on the first day of July, 19___, with interest thereon from the date hereof at the rate of five percent (5%) per annum, payable July 1, 1976, and thereafter annually on July 1 in each year until the said principal sum shall have been paid, upon presentation and surrender of the annexed interest coupons as they severally become due. Both principal of and interest on this Bond are hereby made payable at the office of St. Louis Union Trust Co., in the City of St. Louis, Missouri (herein referred to as the "Paying Agent").
The Bonds are not subject to redemption prior to July 1, 1986. Each of the Bonds of the series of which this Bond is one maturing on July 1, 1987 through July 1, 2010, inclusive, including installments of principal of fully registered Bonds maturing on said dates, is subject to redemption and payment at the option of said city in whole or in part on July 1, 1986, or on any interest payment date thereafter, at the par value thereof plus accrued interest thereon to the date fixed for redemption and payment without premium as follows:
Redemption Period
(Dates Inclusive)
All of said Bonds becoming due in the years 1987 to 2010, inclusive.
All Bonds so called for redemption will cease to bear interest on the specified redemption date provided funds or securities in which such funds are invested for their redemption are on deposit with the Paying Agent prior to the redemption date and shall no longer be entitled to the benefits and protection of the covenants contained in the ordinance authorizing this Bond and shall not be deemed to be outstanding under the provisions of said ordinance.
In the event any of the Bonds are called for redemption as aforesaid, notice thereof identifying the Bonds to be redeemed will be given by publication at least once in a financial journal published in New York, New York, not more than sixty days nor less than thirty days before the date fixed for such payment, and thirty days' notice in writing shall be given to the Paying Agent before the date so fixed for such redemption; provided, however, that said published notice of redemption need not be given in the event that all of the Bonds to be so redeemed are held by a single owner, and notice in writing by certified or registered mail is given to such owner not more than sixty days nor less than thirty days before the date so fixed for redemption. Prior to the date fixed for redemption, funds shall be deposited with the Paying Agent sufficient to pay the principal amount of the Bonds called for redemption and accrued interest thereon.
Both principal of and interest on this Bond are hereby made payable in any coin or currency which, on the respective dates of payment of principal and interest, is legal tender for the payment of debts due the United States of America.
This Bond is one of a series of Bonds aggregating the principal amount of $125,000, $17,500 principal amount of said bonds or the proceeds thereof to be used for the purpose of paying, retiring or refunding an equal principal amount of waterworks revenue bonds of said city now outstanding, and the remaining $107,500 principal amount of said bonds to be used for the purpose of extending and improving the combined waterworks and sewerage system of said city by constructing a sewerage system, said sewerage system to be a part of said combined waterworks and sewerage system and is issued pursuant to the Constitution and laws of the State of Missouri, including particularly Sections 250.010 to 250.250, inclusive, Revised Statutes of Missouri, 1969, and pursuant to an election duly held in said city on April 4, 1972, at which more than four-sevenths of the qualified voters of said city voting on the proposition voted in favor of the issuance of said Bonds, and pursuant to the ordinances duly passed and proceedings duly had by the board of aldermen of said city.
The principal and interest on this Bond are payable only from the net income and revenues arising from the operation of the combined waterworks and sewerage system of said city, after providing for costs of operation, maintenance, depreciation and necessary extensions and enlargements, including income and revenues derived from extensions and improvements of said combined waterworks and sewerage system hereafter constructed or acquired by such city, and neither this Bond nor the interest hereon shall be payable in whole or in part out of the funds raised by taxation. The governing body of said city pledges such net income and revenues to the payment of both principal and interest on this Bond. This Bond shall not be or constitute a general obligation of the city, nor shall it constitute an indebtedness of such city within the meaning of any constitutional or statutory limitation. This Bond herein authorized shall constitute a first claim upon the said net income and revenues of said combined waterworks and sewerage system, according to the terms of this Bond and the authorizing ordinance. Under the terms of such ordinance the city has the right to issue additional parity bonds payable from the same sources and secured by the same revenues as this Bond, provided, however, such additional bonds will be so issued only in accordance with and subject to the covenants, conditions and restrictions relating thereto set forth in said ordinance.
Said city hereby covenants with the holder of this Bond to keep and perform all covenants and agreements contained in the ordinance of said city authorizing the issue of Combined Waterworks and Sewerage System Revenue Bonds of said city of which this Bond is a part, and said city will fix, establish, maintain and collect such rates, fees, or charges for the services furnished by or through the combined waterworks and sewerage system of said city, including all extensions and improvements thereto hereafter constructed or acquired by said city, as will produce income and revenues sufficient to provide funds to pay the cost of the operation and maintenance of said combined waterworks and sewerage system and to pay the principal of and interest on this Bond as and when the principal and interest on same become due, and to provide adequate reserves therefore.
This Bond may be surrendered by the holder hereof, with all unmatured coupons attached, to the Bond Registrar, in exchange for an equal aggregate principal amount of fully registered Bonds without coupons, subject to the conditions and upon the payment of the charges provided in the Bond Ordinance. In like manner, subject to such conditions and upon payment of such charges, the owner of any fully registered Bond or Bonds without coupons may surrender the same (together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his duly authorized attorney), in exchange for an equal aggregate principal amount of coupon Bonds with appropriate coupons attached, in any denomination authorized by the ordinance authorizing this Bond consistent with the schedule of maturities set out therein.
This Bond is negotiable. To the extent provided in the aforesaid ordinance authorizing the issuance of this Bond, the provisions of this Bond, or of said ordinance, including any amendment or supplement thereto, may be modified or amended by the city only with the written consent of the holders and it shall not be necessary to note hereon any reference to such modification or amendment. Any holder or prospective purchaser or holder of this Bond, shall have the right to examine the provisions of said ordinance and any and all of its amendments or supplements. A copy of said ordinance, and of any and all of its amendments and supplements, will, so long as this Bond is outstanding, be kept on file in the office of the clerk of said city and will be made available for examination as aforesaid, and upon payment of the reasonable cost of preparing the same a certified copy of such amendment or supplement of ordinance will be sent by the said clerk to any such bondholder or prospective purchaser or holder of this Bond.
It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Bond, in order to make the same a legal and binding obligation of said city according to its terms, do exist, have happened and have been performed in due time, form and manner as required by law, and that before the issuance of this Bond provision has been duly made for the collection and segregation of the income and revenues of the combined waterworks and sewerage system of said city, including the income and revenues of extensions and improvements to said combined waterworks and sewerage system hereafter constructed or acquired, and for the application of the same for the purpose of paying the cost of the operation and maintenance of such combined waterworks and sewerage system and to the payment of the principal of and interest on this Bond, as and when the payments become due, and to provide adequate reserves therefore. The city hereby covenants and agrees that there will be prompt payment of the principal and interest installments on this Bond, and that there will be faithful performance in due time and manner of each and every official act necessary therefore, and the city hereby pledges said net income and revenues of the combined waterworks and sewerage system for the payment of this Bond as aforesaid, and covenants that no other or prior pledge of or claim upon said income and revenues has been made or exists.
IN WITNESS WHEREOF, the City of Vienna, Missouri has caused this Bond to be signed by its mayor and its corporate seal to be hereto affixed, attested by its clerk, and the annexed interest coupons to be executed with the facsimile signatures of said officers, and this Bond to be dated ___________ .
________________________________
Mayor
ATTEST:
________________________
City clerk
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(FORM OF COUPON)
No. ______ $ ________
On the first day of July, 19___,/20___, the City of Vienna, Missouri, will pay bearer, wholly and only from the net income and revenues arising from the operation of the combined waterworks and sewerage system of said city, after providing for costs of operation, maintenance, depreciation, and necessary extensions and enlargements, the sum of __________, at the office of St. Louis Union Trust Co. in the City of St. Louis, Missouri, being _______ months' interest due on that date on its Combined Waterworks and Sewerage System Revenue Bond dated ____________, No. ____.
_________(facsimile)_________
Mayor
ATTEST:
_________(facsimile)_________
City Clerk
(FORM OF FULLY REGISTERED BOND)
$125,000
UNITED STATES OF AMERICA
STATE OF MISSOURI
COUNTY OF MARIES
CITY OF VIENNA
COMBINED WATERWORKS AND SEWERAGE SYSTEM
REVENUE BOND
_____________________________________
KNOW ALL MEN BY THESE PRESENTS: That the City of Vienna, Missouri (hereinafter referred to as the "City"), for value received hereby promises to pay, but only from the net income and revenues arising from the operation of the combined waterworks and sewerage system owned exclusively by said city, to the United States of America acting through the Farmers Home Administration, United States Department of Agriculture, or its registered assigns, the sum of
ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS
and to pay interest thereon from the effective date of registration (which date is set forth on the last page of this Bond) at the rate of five percent (5%) per annum, payable July 1, 1976, and thereafter annually on July 1 in each year on the unpaid principal balance until paid in full.
The principal of and interest on this Bond shall be payable in installments as follows:
Interest only shall be payable annually on July 1, 1976 and July 1, 1977 and thereafter both principal of and interest on this Bond shall become due in installments of $7,812 on July 1, 1978 and annually thereafter on July 1 until the principal and interest are fully paid except that the final installment of the entire remaining principal and interest on this Bond, if not sooner paid, shall be due and payable on July 1, 2010.
Every payment made on any indebtedness evidenced by this Combined Waterworks and Sewerage System Revenue Bond shall be applied first to accrued interest and then to principal.
This Bond is not subject to redemption prior to July 1, 1986. This Bond, including installments of principal of this Bond, is subject to redemption and payment at the option of said city in whole or in part on July 1, 1986, or on any interest payment date thereafter, at the par value thereof plus accrued interest thereon to date fixed for redemption and payment without premium.
If this Bond or any installment of principal of this Bond be called for redemption as aforesaid, interest on this Bond or on such installments of principal of this Bond will cease on the specified redemption date provided funds or securities in which such funds are invested for such redemption are on deposit with the Bond Registrar prior to the redemption date and if all of the unpaid installments of principal of this Bond be called for redemption, this Bond shall no longer be entitled to the benefits and protection of the covenants contained in the ordinance authorizing this Bond and shall not be deemed to be outstanding under the provisions of said ordinance.
In the event this Bond be called for redemption in whole or in part as aforesaid, notice thereof identifying this Bond and the installments of principal of this Bond called for redemption will be given by notice in writing sent by certified or registered mail addressed to the registered owner not more than sixty days and not less than thirty days before the date so fixed for redemption. Prior to the date fixed for redemption funds shall be deposited with the Bond Registrar sufficient to pay this Bond or the installments of principal of this Bond called for redemption and accrued interest thereon.
During such time as this Bond is outstanding and unpaid, interest and principal installment payments accruing on this Bond, except for the final payment of the entire indebtedness, shall be payable without presentation of this Bond at the office of the city treasurer in the City of Vienna, Missouri (herein referred to as the "Bond Registrar"). Final payment of the entire indebtedness evidenced by this Bond shall be payable upon presentation and surrender of this Bond at the office of the Bond Registrar, in the City of Vienna, Missouri, or at such other place as may be designated by the owner by registered or certified mail, addressed to the mayor of said city, mailed not less than 40 days prior to an installment payment due date.
Both principal of and interest on this Bond are hereby made payable in any coin or currency which, on the respective dates of payment of principal and interest, is legal tender for the payment of debts due the United States of America.
The principal of this Bond or the proceeds hereof is to be used for the purpose of paying, retiring, or refunding $17,500 principal amount of Waterworks Revenue Bonds of said city now outstanding and the remaining $107,500 principal amount of this Bond is to be used for the purpose of extending and improving the combined waterworks and sewerage system by constructing a sewerage system, said sewerage system to be a part of said combined waterworks and sewerage system and is issued pursuant to the constitution and laws of the State of Missouri, including particularly Sections 250.010 to 250.250, inclusive, Revised Statutes of Missouri, 1969, and pursuant to an election duly held in said city on April 4, 1972, at which more than four-sevenths of the qualified voters of said city voting on the proposition voted in favor of the issuance of said Bond, and pursuant to the ordinances duly passed and proceedings duly had by the board of aldermen of said city.
The principal and interest on this Bond are payable only from the net income and revenues arising from the operation of the combined waterworks and sewerage system of said city, after providing for costs of operation, maintenance, depreciation and necessary extensions and enlargements, including income and revenues derived from extensions and improvements of said combined waterworks and sewerage system hereafter constructed or acquired by such city, and neither this Bond nor the interest hereon shall be payable in whole or in part out of the funds raised by taxation. The governing body of said city pledges such net income and revenues to the payment of both principal and interest on this Bond. This Bond shall not be or constitute a general obligation of the city, nor shall it constitute an indebtedness of such city within the meaning of any constitutional or statutory limitation. This Bond shall constitute a first claim upon the said net income and revenues of said combined waterworks and sewerage system according to the terms of this Bond and the authorizing ordinance. Under the terms of such ordinance the city has the right to issue additional parity bonds payable from the same sources and secured by the same revenues as this Bond, provided, however, such additional bonds will be so issued only in accordance with and subject to the covenants, conditions and restrictions relating thereto set forth in said ordinance.
Said city hereby covenants with the holder of this Bond to keep and perform all covenants and agreements contained in the ordinance of said city authorizing this issue of Combined Waterworks and Sewerage System Revenue Bonds of said city, and said city will fix, establish, maintain and collect such rates, fees, or charges for the services furnished by or through the combined waterworks and sewerage system of said city, including all extensions and improvements thereto hereafter constructed or acquired by said city, as will produce income and revenues sufficient to provide funds to pay the cost of the operation and maintenance of said combined waterworks and sewerage system and to pay the principal of and interest on this Bond as and when the principal and interest on same become due, and to provide adequate reserves therefore.
This Bond shall be registered as to principal and interest on the registration books of the city kept by the city treasurer, as Bond Registrar, upon presentation hereof at such office and the notation of such registration endorsed hereon by the Bond Registrar, and this Bond may thereafter be transferred only on such books, by the registered owner in person or by duly authorized attorney, and evidence of such transfer shall be in like manner endorsed hereon. Such registration may be to bearer, and thereby transferability by delivery shall be restored, subject, however, to successive registrations and transfers as before. The principal and interest on this Bond, unless registered to bearer, shall be payable only to the registered owner or his legal representative.
Subject to the conditions and upon the payment of the charges provided in the bond ordinance, the owner of this Bond may surrender the same (together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his duly authorized attorney), in exchange for an equal aggregate principal amount of coupon Bonds with appropriate coupons attached, in any denomination authorized by the ordinance authorizing this Bond consistent with the schedule of maturities set out therein.
This Bond is negotiable. This Bond shall be registered and transferred in accordance with the provisions printed on this Bond and subject to the terms and conditions set forth in the authorizing ordinance. During the time this Bond is registered to bearer, each successive holder of this Bond is conclusively presumed to forego and renounce his equities in favor of subsequent holders for value without notice and agree that this Bond may be transferred by delivery by any persons having possession hereto, howsoever such possession may have been acquired, and that any holder who shall have taken this Bond from any person for value and without notice, thereby has acquired absolute title thereto, free from any defenses enforceable against any prior holder and free from all equities and claims of ownership of any such prior holder, and the city and its officials and the Bond Registrar hereinabove named shall not be affected by any notice to the contrary. To the extent provided in the aforesaid ordinance authorizing the issuance of this Bond, the provisions of this Bond, or of said ordinance, including any amendment or supplement thereto, may be modified or amended by the city only with the written consent of the holders and it shall not be necessary to note hereon any reference to such modification or amendment. Any holder or prospective purchaser or holder of this Bond shall have the right to examine the provisions of said ordinance and any and all of its amendments or supplements. A copy of said ordinance, and of any and all of its amendments and supplements, will, so long as this Bond is outstanding, be kept on file in the office of the clerk of the city and will be made available for examination as aforesaid, and upon payment of the reasonable cost of preparing the same a certified copy of such amendment or supplement or of said ordinance will be sent by the said clerk to any such bondholder or prospective purchaser or holder of this Bond.
It is hereby certified, recited, and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Bond, in order to make the same a legal and binding obligation of said city according to the terms thereof, do exist, have happened and have been performed in due time, form and manner as required by law, and that before the issuance of this Bond provision has been duly made for the collection and segregation of the income and revenues of the combined waterworks and sewerage system of said city, including the income and revenues of extensions and improvements to said combined waterworks and sewerage system hereafter constructed or acquired, and for the application of the same for the purpose of paying the cost of the operation and maintenance of such combined waterworks and sewerage system and to the payment of the principal of and interest on this Bond, as and when the payments become due, and to provide adequate reserves therefore. The city hereby covenants and agrees that there will be prompt payment of the principal and interest installments on this Bond, and that there will be faithful performance in due time and manner of each and every official act necessary therefore, and the city hereby pledges said net income and revenues of the combined waterworks and sewerage system for the payment of this Bond as aforesaid, and covenants that no other or prior pledge of or claim upon said income and revenues has been made or exists.
IN WITNESS WHEREOF, the City of Vienna, Missouri, has executed this Bond by causing it to be signed by its mayor and attested by its clerk, and its corporate seal to be hereto affixed and this Bond to be dated _______________ .
___________________________
Mayor
ATTEST:
_______________________________
City Clerk
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The following forms shall be printed on a separate page being the last page of said Bond and shall be a part of said Bond:
PROVISIONS FOR REGISTRATION
(No writing to be placed hereon except by Bond Registrar)
This Bond shall be registered on the books of the city kept by the city treasurer, as Bond Registrar, at such office in the City of Vienna, Missouri, upon presentation hereof to the Bond Registrar who shall make notations of such registration in the registration blank below, and this Bond may thereafter be transferred only upon a duly executed assignment of the registered holder or his legal representative in such form as shall be satisfactory to the Bond Registrar, such transfer to be made on such books and endorsed hereon by the Bond Registrar. If the last transfer recorded on the registration books shall be to bearer, the principal and interest on this Bond shall be payable to bearer and it shall be in all respects negotiable, but this Bond shall again be subject to successive registrations and transfers as before. This Bond, unless registered to bearer, shall be payable only to or upon the order of the registered holder or his legal representative.
DATE OF NAME OF SIGNATURE OF
REGISTRATION REGISTERED OWNER BOND REGISTRAR
_____________________ United States of America __________________
_____________________ acting through the Farmers
_____________________ Home Administration, City Treasurer
_____________________ United States Department City of Vienna,
_____________________ of Agriculture Missouri
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__, 19___. The effective date of registration of this Bond is _____
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto _____________________________ the within Combined Waterworks and Sewerage System Revenue Bond, dated ______________ of the City of Vienna, Missouri, and hereby authorized the transfer to this Bond on the registration books of the Bond Registrar.
Dated _________________________ .
________________________________
IN THE PRESENCE OF ____________________________
(§384.011, 1978 Code)
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Sec. 8-23. Bonds are callable.
(a) The coupon Bonds, and the respective installments of principal corresponding thereto, in the case of fully registered Bonds, shall be subject to redemption or prepayment prior to maturity at the option of the city, as follows:
(1) The Bonds are not subject to redemption prior to July 1, 1986, except as hereinafter provided.
(2) Each of said Bonds, and the respective installments of principal corresponding thereto in the case of a fully registered Bond, shall be subject to redemption and payment at the option of the city, in whole or in part, on July 1, 1986, or on any interest payment date thereafter at the par value of said Bond; plus accrued interest thereon to the date fixed for redemption and payment without premium as follows:
Redemption Period
(Dates Inclusive)
All of said Bonds becoming due in the years 1987 to 2010, inclusive.
Bonds to be redeemed pursuant to this paragraph shall be redeemed in inverse order of maturity.
Any of the Bonds subject to redemption may be redeemed or prepaid at the option of the city on any interest payment date prior to their respective maturities, either in whole or in part, and if in part, in the inverse order of the numbers of the Bonds in the case of coupon Bonds, and in the inverse order of the maturity dates of said principal installments in the case of fully registered Bonds, upon payment of the principal amount of the Bonds or of the principal installments thereof to be redeemed, without premium, plus accrued interest on such principal amount to the date fixed for redemption.
(b) Notice of intention to redeem (including, when only a portion of the Bonds is to be redeemed, the numbers of such Bonds, or principal installments thereof) shall be given by or on behalf of the city by publication in a financial journal published in the City of New York, New York, at least once not more than sixty (60) days nor less than thirty (30) days, before the date fixed for such payment\ and thirty (30) days' notice in writing shall be given to the Paying Agent before the date so fixed for such redemption; provided, however, that such published notice of redemption need not be given in the event that all of the Bonds to be so redeemed are held by a single owner or all of said Bonds being redeemed are registered as herein provided with none registered to bearer and notice in writing shall be given by certified or registered mail to such single or registered Bond owner not more than sixty (60) days nor less than thirty (30) days before the date so fixed for redemption. Prior to the date fixed for redemption, funds shall be deposited with the Paying Agent or the Bond Registrar in the case of registered Bonds, sufficient to pay the principal amount of the Bonds called for redemption and accrued interest thereon. Upon the happening of the above conditions, said Bonds thus called shall not bear interest after the call date, and except for the purpose of payment, shall no longer be protected by this Ordinance. If no Bonds payable to bearer are to be redeemed, published notice of such redemption need not be given. (§384.013, 1978 Code)
Sec. 8-24. Bonds to be retired by Water-Sewer System Revenues.
That the principal of and interest on the Combined Waterworks and Sewerage System Revenue Bonds of the city herein authorized shall be payable solely from the net income and revenues arising from the operation of the combined waterworks and sewerage system owned by said city, including income arising from extensions and improvements to said combined waterworks and sewerage system hereafter constructed or acquired, which net income and revenues for the payment of such principal and interest are hereby irrevocably pledges by the city. Neither said Bonds nor the interest thereon shall be payable in whole or in part out of funds raised by taxation; such Bonds shall not be or constitute a general obligation of said city, nor shall they constitute an indebtedness of said city within the meaning of any constitutional or statutory limitation. The Bonds shall constitute a claim upon the said net income and revenues of said combined waterworks and sewerage system according to the terms of this Ordinance. (§384.015, 1978 Code)
Sec. 8-25. Proceeds to be deposited in Water-Sewer Construction Fund.
The principal amount received from the sale of said Bonds shall be deposited in a separate fund to be known and hereafter referred to as the "Combined Waterworks and Sewerage System Construction Fund' with some bank or banks which are insured by the Federal Deposit Insurance Corporation and shall be used by said city solely for the purpose of paying and retiring the $17,500 principal amount of Waterworks Revenue Bonds of said city dated March 1, 1954, and for the purpose of extending and improving the combined waterworks and sewerage system of said city by constructing a sewerage system, said sewerage system to be a part of said combined waterworks and sewerage system, as herein provided; provided, however, that withdrawals from said fund shall be made only for the purpose within the scope of this Ordinance and only for such purposes as shall have been previously specified in a signed certificate of purpose filed with and approved by the purchaser of said Bonds. Any sum received by said city on account of accrued interest on said Combined Waterworks and Sewerage System Construction Fund shall be deposited in the Sinking Fund. Any excess Bond proceeds remaining in the Combined Waterworks and Sewerage System Construction Fund after completion of construction and not required to pay unpaid costs of construction shall be used for the prepayment of the principal of said Bonds. (§384.017, 1978 Code)
Sec. 8-26. Revenues to be deposited in Water-Sewer Revenue Fund.
There is hereby created in the treasury of the city a special fund and it is hereby ordered that a separate bank account be established for the purpose of handling all income, revenues and expenses of the combined waterworks and sewerage system owned and operated by said city to be known and hereafter referred to as the "Combined Waterworks and Sewerage System Revenue Fund" and so long as any principal of the Combined Waterworks and Sewerage System Revenue Bonds of said city herein authorized remains outstanding and unpaid, said city covenants and agrees that it will maintain said Combined Waterworks and Sewerage System Revenue Fund and that all of the income and revenues of the combined waterworks and sewerage system of said city, including all income and revenues of all extensions and improvements thereto hereafter constructed or acquired, will be paid into said Combined Waterworks and Sewerage System Revenue Fund and that the same will not be mingled with the other funds of said city. The current expenses of the sewerage system as hereinafter defined, shall be paid by said city from month to month as a first charge against the Combined Waterworks and Sewerage System Revenue Fund as the same become due and payable. Such current expenses shall include all reasonable and necessary costs of operating, repairing, maintaining and insuring the combined waterworks and sewerage system but shall exclude depreciation and payments into the Sinking Fund, Bond Reserve Fund, and Replacement and Extension Fund provided for by the terms of this Ordinance. The city covenants and agrees that the current expenses of the operation and maintenance of the combined waterworks and sewerage system in any year shall not exceed the reasonable and necessary amounts therefore.
All moneys held in said Combined Waterworks and Sewerage System Revenue Fund and in the special funds and accounts created and maintained under the terms and provisions of the Ordinance shall be kept on deposit in separate bank accounts in a bank or banks which are insured by the Federal Deposit Insurance Corporation. (§384.019, 1978 Code)
Sec. 8-27. Sinking Fund.
There is hereby created in the treasury of the city a principal and interest sinking fund for the payment of the Combined Waterworks and Sewerage System Revenue Bonds herein authorized and the interest thereon, said fund to be known and hereinafter referred to as the "Sinking Fund." So long as the Combined Waterworks and Sewerage System Revenue Bonds herein authorized remain outstanding and not paid in full, said city covenants and agrees that it will maintain such Sinking Fund and establish and maintain the same as a separate bank account and will administer the same in accordance with all of the provisions contained in this Ordinance subject to any provisions of the statutes of the State of Missouri applicable thereto; provided that said moneys may be used for the purpose of paying not more than twenty-four months' interest on advance construction loans made by the original purchaser of said Bonds prior to their delivery to said original purchaser and the receipt of full payment of the purchase price by the City. (§384.021, 1978 Code)
Sec. 8-28. Payments into the Sinking Fund.
So long as any of the principal of the Combined Waterworks and Sewerage System Revenue Bonds, herein authorized, remains unpaid, the city will, out of the Combined Waterworks and Sewerage System Revenue Fund hereinbefore created, pay each month the current expenses of the operation and maintenance of the combined waterworks and sewerage system and after making provision for the payment of the estimated current expenses of operating and maintaining said combined waterworks and sewerage system for the next ensuing month, said city will pay into the Sinking Fund, hereinbefore created, at monthly intervals, on the first day of the month following one full calendar month's operation of the combined waterworks and sewerage system of the city, all remaining moneys in said Combined Waterworks and Sewerage System Revenue Fund until such time as the funds accumulated therein are sufficient to pay the next installment of interest and principal becoming due (together with sums sufficient to pay the charges of the fiscal agent, if any, for paying the same).
The amounts required to be paid, as aforesaid, into said Sinking Fund shall be used by said city for the sole purpose of paying the interest on and principal of the Bonds herein authorized; provided, however, that said city may use the moneys in said Sinking Fund for the purpose of prepayment of the entire remaining principal and interest balance on said Bonds in the manner hereinbefore specified. (§384.023, 1978 Code)
Sec. 8-29. Reserve Fund.
There is hereby created in the treasury of said city, to be kept and maintained as a separate bank account, a special fund to be known and hereafter referred to as the "Bond Reserve Fund." Said city covenants and agrees that as long as any of the principal or interest of the Combined Waterworks and Sewerage System Revenue Bonds herein authorized remains unpaid, it will maintain said Fund, and that it will, after making the payments hereinbefore provided, pay into said Bond Reserve Fund the remaining moneys derived from operation of said combined waterworks and sewerage system (which amount shall be not less than $800 in each operating year) until there has accumulated in said Fund the sum of not less than $8,000 either in cash or in the then current market or redemption value of any investment authorized by the terms of this Ordinance. After there has accumulated in said Bond Reserve Fund the sum of $8,000 no further deposits shall be required, but if any moneys in said Fund are used for any purpose herein authorized, said city shall thereafter resume said deposits until there accumulates the sum of $8,000 in said Fund. Moneys in said Bond Reserve Fund shall be used for the purpose of paying the principal of and interest on the Bonds herein authorized, if the moneys in said Sinking Fund are insufficient to pay the same as the same become due. No moneys in said Bond Reserve Fund shall be used for the purpose of prepayment of principal of the Bonds herein authorized, unless the entire remaining unpaid principal balance of said Bonds is paid. (§384.025, 1978 Code)
Sec. 8-30. Replacement and Extension Fund.
After making all payments, transfers and deposits provided for by Sections 8-24, 8-25, 8-26, and 8-27* of this Ordinance there shall be created in the treasury of the City a "Replacement and Extension Fund." So long as any of the principal or interest of the Combined Waterworks and Sewerage System Revenue Bonds of the city remains unpaid, the city covenants and agrees to maintain said Fund and establish and maintain the same as a separate bank account and to deposit in said Fund and bank account, from and after its creation, monthly, on the first day of each month, all remaining moneys in said Combined Waterworks and Sewerage System Revenue Fund until such time as the Funds in said Replacement and Extension Fund, including the current market value of any investments authorized by the terms of this Ordinance, shall aggregate the principal amount of $8,000. Said Replacement and Extension Fund shall be expended and used, upon appropriate certification to the treasurer of the city, solely to pay the cost of any unusual or extraordinary maintenance, repairs or replacements, exclusive of any current expenses, or for the purpose of paying the cost of the extensions or improvements to the combined waterworks and sewerage system which will either enhance its revenue producing capacity or provide a higher or better degree of service or for the purpose of replacing or repairing portions of the system or major items of the plant and equipment which have been either fully depreciated and are worn out or have become obsolete, uneconomical or inefficient. In the event the available balances in the Sinking Fund shall on any interest or principal payment date be insufficient to pay the next maturing installment on the principal of and interest on said Bonds and to maintain the Bond Reserve Fund in the required amount, the treasurer of said city shall immediately transfer from said Replacement and Extension Fund such amounts as are necessary to eliminate the deficiencies in said Sinking Fund and said Bond Reserve Fund. Whenever any moneys in said Replacement and Extension Fund are used for any purpose authorized by this Ordinance, the city covenants and agrees to resume said monthly payments until said Replacement and Extension Fund aggregates the principal amount of $8,000. (§384.027, 1978 Code)
*NOTE: Possibly the Ordinance should refer to Sections 8-25, 8-26, 8-28 and 8-29.
Sec. 8-31. Surplus Revenues.
After making all payments, transfers and deposits provided for by Section 8-24, 8-25, 8-26 and 8-27* of this Ordinance, any surplus remaining thereafter in said Combined Waterworks and Sewerage System Revenue Fund may be expended by the city for the purpose of prepaying principal of the Combined Waterworks and Sewerage System Revenue Bonds herein authorized in the manner herein authorized, or for extending and improving the combined waterworks and sewerage system, but for no other purpose. (§384.029, 1978 Code)
*NOTE: Possibly the Ordinance should refer to Sections 8-25, 8-26, 8-28, 8-29 and 8-30.
Sec. 8-32. Insufficient revenues; procedure to follow.
If at any time the net income and revenues derived by the city from the operation of its combined waterworks and sewerage system shall be insufficient to make any payment on the date or dates hereinbefore specified the city shall make good the amount of such deficiency by making additional payments out of the first available net income and revenues thereafter received by the city from the operation of its combined waterworks and sewerage system.
Cash moneys in the funds established by this Ordinance shall be kept in a bank or banks which are insured by the Federal Deposit Insurance Corporation. The cash moneys held in the Sinking Fund, Bond Reserve Fund, and Replacement and Extension Fund may be invested by the city if permitted by law, in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States Government which have a fixed redemption value or become due within five years from the date of purchase and which may readily be converted into cash. Investment income derived from any fund shall remain a part of such fund and shall be used only for the purposes for which such funds may be used unless otherwise specifically provided in this Ordinance. (§384.031, 1978 Code)
Sec. 8-33. Responsibilities of city to Bondholders.
The city covenants with each of the holders of said Combined Waterworks and Sewerage System Revenue Bonds that so long as any of the said Bonds remain outstanding and unpaid:
(a) The city will fix, establish, maintain and collect such rates, fees or charges for the services furnished by or through the combined waterworks and sewerage system of the city, including all extensions and improvements thereto hereafter constructed or acquired by the city, as will produce income and revenues sufficient to provide funds to pay the cost of the operation and maintenance of said combined waterworks and sewerage system, and to pay the principal of and interest on said Combined Waterworks and Sewerage System Revenue Bonds as principal and interest on the same become due, and to provide for the establishment of reasonable reserves as hereinbefore specified.
(b) None of the facilities or services afforded by the combined waterworks and sewerage system of the city will be furnished to any user of the combined waterworks and sewerage system without a reasonable charge being made therefore.
(c) The city will not mortgage, pledge or otherwise encumber its combined waterworks and sewerage system or any part thereof or any improvement, betterment or extension thereto, or the revenues therefrom, except as provided herein, nor will it sell, lease, or otherwise dispose of said combined waterworks and sewerage system or any material part thereof.
(d) The city will maintain in good repair and working order the combined waterworks and sewerage system of said city and will operate the same in an efficient manner and at a reasonable cost, provided, however, that the city may abandon or cease to operate any portion of the combined waterworks and sewerage system which has become nonproductive or otherwise unusable to the advantage of the city.
(e) The city will carry and maintain a reasonable amount of all-risk insurance on its combined waterworks and sewerage system in amounts which would normally be carried by a private corporation engaged in a similar type of business, and in the event of loss or damage, the city will use the proceeds of such insurance in reconstructing and replacing the property damaged or destroyed, or, if such reconstruction or replacement be unnecessary, said proceeds will be deposited in the Bond Reserve Fund hereinabove created. The city, in operating its combined waterworks and sewerage system will carry and maintain public liability and workmen's compensation insurance in such amount or amounts as would normally be maintained by a private corporation engaged in a similar type of business. All of the costs of such insurance shall be paid as an operating cost out of the income and revenues of the combined waterworks and sewerage system of said city. All employees of the city handling the funds and accounts of the city's combined waterworks and sewerage system shall be bonded at all times in an amount equal to the total funds in their possession or custody at any one time.
(f) The city will furnish to the holder of said Bonds, annually, upon request, an operating budget of income and expenses. The city will keep proper books, records and accounts in which complete and correct entries will be made of all transactions relating to the combined waterworks and sewerage system of the city. Said books will be kept by the city according to standard accounting practices as applicable to the operation of utilities by municipalities. Such books, records and accounts, at least once a year, shall be properly audited by an independent public accountant employed for such purpose. The city will furnish any holder of the Bonds, herein authorized, on the written request of such holder, and not more than sixty (60) days after the close of each fiscal year, a complete report of such audit covering in reasonable detail the operation of said combined waterworks and sewerage system during said year. Any such holder shall have the right at all reasonable times to inspect the combined waterworks and sewerage system of the city and all books, records, accounts and data of the city relating thereto.
(g) As long as any of the Bonds herein authorized remain outstanding and unpaid, the city will not issue any additional bonds or other obligations having an equal or parity claim on the revenues arising from the operation of said combined waterworks and sewerage system or any part thereof, unless the net revenues, such net revenues being defined as the gross income less only the reasonable expenses of operation, maintenance and repair of such system but before any other payments or charges, for the fiscal year next preceding the issuance of additional bonds, shall have been equal to at least 120% of the average annual debt service requirements required to be paid out of said income in any succeeding fiscal year on account of both principal and interest becoming due with respect to all combined waterworks and sewerage system revenue obligations of the city, including the additional revenue bonds proposed to be issued, PROVIDED HOWEVER, that this restriction shall not apply to parity bonds of the city being issued to complete the project for which the Bonds authorized by this Bond Ordinance are being issued. Junior lien bonds may be issued by the city at any time without restriction.
Additional Combined Waterworks and Sewerage System Revenue Bonds of the city (other than junior lien bonds) issued under the conditions hereinbefore in this Section set forth shall stand on a parity with the Bonds herein authorized and shall enjoy complete equality of lien upon or claim against the revenues of the city's combined waterworks and sewerage system with the Bonds herein authorized, and the city may make equal provision for paying said Bonds and the interest thereon out of the "Combined Waterworks and Sewerage System Revenue Fund" and may likewise provide for the creation of a reasonable "Sinking Fund" and a reasonable "Bond Reserve Fund" for the payment of such additional bonds and the interest thereon out of the moneys in said "Combined Waterworks and Sewerage System Revenue Fund."
(h) The city will punctually perform all duties with respect to the operation of its combined waterworks and sewerage system imposed upon the city by the constitution and laws of the State of Missouri. (§384.035, 1978 Code)
Sec. 8-34. Records.
The city covenants that it will, as long as any of the Bonds herein authorized remain outstanding, keep at the office of the Bond Registrar books for the registration of Bonds as herein provided. Fully registered Bonds without coupons shall be made payable to the registered owner. Title to any coupon Bond and to any coupons shall pass by delivery as negotiable instruments payable to bearer.
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