No 46 Water Bond
ORDINANCE AUTHORIZING SALE OF WATER BONDS
Ordinance No. 46
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NEGOTIABLE WATER GENERAL OBLIGATION BONDS OF TEE CITY OF SODAVILLE, OREGON, IN THE PRINCIPAL, SUM OF $129,000.00 FOR THE PURPOSE OF PROVIDING A PORTION OF THE COSTS OF CONSTRUCTING A MUNICIPAL WATER SYSTEM AND PROVIDING FOR THE COLLECTION, HANDLING AND DISPOSITION OF REVENUES, AND AUTHORIZING AND DIRECTING THE CITY RECORDER TO ADVERTISE FOR WRITTEN BIDS ON THE SAID BONDS AND DECLARING AN EMERGENCY.
WHEREAS, on the 18th day of September, 1979; at a special city election in the City of Sodaville, Oregon, the legal voters of said city enacted an amendment to the charter of the City designated Section 47 thereof, authorizing the City to contract a bonded indebtedness in an amount not to exceed the sum of $130,000.00, in excess of any existing bond issue, for the construction, installation and maintenance of municipal water system improvements within the City of Sodaville, Oregon, hereinafter called "facility"; now, therefore,
THE CITY OF SODAVILLE, OREGON ORDAINS AS FOLLOWS:
Section 1.
Pursuant to voter approval of ballot measures No. 1 and 2 legally adopted by the voters of said City at a special election duly called and regulary [sic] held therein, on the 18th day of September, 1979, the City shall issue and sell its "City of Sodaville, Oregon General Obligation Bonds" in the principal sum of ONE HUNDRED TWENTY-NINE THOUSAND DOLLARS ($129,000.00) for the purpose of acquiring, constructing and installing a municipal water system, and paying for engineering and attorney fees, and other related costs.
Section 2.
The said bonds shall be negotiable coupon bonds, each shall be designated "City of Sodaville, Oregon Water Bonds", shall be in the denomination of $3,000.00 each, and shall bear interest at a net effective rate not to exceed 5% per annum payable semi-annually on the first day of January and the first day of July of each year during the life of the bonds, and shall be numbered consecutively from 1 to 43, both inclusive, and shall mature serially in numerical order as follows:
1981 3000 1990 3000 1998 3000 2006 3000 2014 3000
1982 3000 1991 3000 1999 3000 2007 3000 2015 3000
1983 3000 1992 3000 2000 3000 2008 3000 2016 3000
1984 3000 1993 3000 2001 3000 2009 3000 2017 3000
1985 3000 1994 3000 2002 3000 2010 3000 2018 3000
1986 3000 1995 3000 2003 3000 2011 3000 2019 6000
1987 3000 1996 3000 2004 3000 2012 3000 2020 6000
1988 3000 1997 3000 2005 3000 2013 3000 2021 6000
1989 3000
unless sooner redeemed, it being provided that any of all of said bonds be subject to redemption on any interest payment date after 1990, in inverse numerical order, at par, plus accrued interest. Both Principal and interest shall be payable in lawful money of the United States of America at the Office of the City Recorder of the City of Sodaville, Oregon. Said bonds shall be signed by the Mayor and countersigned by the City Recorder with the corporate seal of the said City affixed, and interest coupons shall be attached to said bonds, which coupons shall bear the facsimile signatures of the Mayor and City Recorder.
The bonds hereby authorized and the coupons attached thereto shall be substantially in the following form:
No. __________ $__________
UNITED STATES OF AMERICA
STATE OF OREGON
COUNTY OF LINN
CITY OF SODAVILLE, OREGON WATER BOND
The City of Sodaville, Oregon, for a value received, hereby acknowledges itself indebted, and hereby undertakes and promises to pay to the bearer the sum of $3,000.00 on the 1st day of January, 1981, with interest thereon at the rate of 5% per annum, payable semi-annually on the 1st days of January and July each year to the bearer of the respective coupons therefor and hereto attached upon presentation and surrender thereof as they severally and respectively mature, both principal and interest payable in lawful money of the United States of America at the office of the City Recorder of the City of Sodaville, Oregon.
This bond is one of a series of like tenor, except as to issue and maturity dates, issued as a part of the total issue of $129,000.00 for the purpose of providing funds with which to acquire, construct and install, within the corporate limits of the City of Sodaville, Oregon, a municipal water system, authorized and issued by virtue of a majority vote of the legal voters of the City of Sodaville, Oregon, voting at a special election called and held on the 18th day of September, 1979, and by virtue of Ordinance No. 40 of the City of Sodaville, Oregon, duly passed by the City Council and approved by the Mayor of said City on August 13, 1979, and pursuant to the constitution and laws of the State of Oregon, the Charter of the City of Sodaville, and laws amendatory thereof and supplemental thereto.
Said City of Sodaville, Oregon, reserves the right to take up and cancel this bond on any interest payment date after July 1, 1990 upon the payment of the face value thereof with interest accrued thereon to the date of redemption at the Office of City Recorder of the City of Sodaville, Oregon, but only after giving notice of such redemption at least 30 days prior to the redemption date specified therein, by publication in one issue of a newspaper of general circulation and published in the County of Linn, State of Oregon.
This bond and the series of which it is one, with interest thereon, is a general obligation of the City of Sodaville, Oregon, and in addition is payable as to principal and interest from the net revenues of the water facilities of said City. For the punctual payment of the principal of this bond with interest thereon as aforesaid, the full faith and credit of the City of Sodaville, Oregon, are hereby irrevocably pledged.
It is hereby certified that every requirement of the constitution and laws of the State of Oregon have been duly complied with in the issuance thereof, and that this bond is within every debt and other limitations prescribed by the constitution and laws of the State of Oregon and Charter of the City of Sodaville, Oregon.
IN WITNESS WHEREOF, the City of Sodaville, Oregon, has caused this bond to be signed by its Mayor and countersigned by its City Recorder under the corporate seal of said City and interest coupons attached hereto to bear the facsimile signatures of such Mayor and City Recorder all as of the ____ day of __________, 19 ____.
CITY OF SODAVILLE, OREGON
By ____________________________
Mayor
Countersigned:
_________________
City Recorder
(Coupon)
No. __________ $__________
On January 1, 19____
On July 1, 19____
CITY OF SODAVILLE, OREGON
will pay to the bearer the sum of THREE THOUSAND DOLLARS ($3,000.00) in lawful money of the United States of America, at the Office of the City Recorder of the City of Sodaville, Oregon, being interest then due on its, the City of Sodaville, Oregon, Water Bond dated __________, and bearing No. ____, unless said bond is sooner redeemed as therein provided, which redemption shall render this coupon void.
__________
Mayor
Countersigned:
_________________
City Recorder
Section 3.
The net revenues of the water system after payment from gross revenue of the system of the ordinary operation and maintenance expenses thereof, hereby is pledged to the payment of the principal of and interest upon the said bonds.
The funds derived from such sources shall be carried by the City Recorder in a separate book account to be designated SODAVILLE WATER BOND FUND and shall be expended only in the payment of the principal of and interest on said City of Sodaville, Oregon Water Bonds until all of said obligations and any that may be issued to refund them have been fully paid and redeemed or until the provision for the payment or redemption thereof has been made.
Section 4.
As provided in Oregon Revised Statutes 287.002, the City Recorder is hereby authorized and directed to advertise the said "City of Sodaville, Oregon Water Bonds", for public sale upon written bids at a price not less than par value and the full amount of accrued interest on said bonds, and at an effective interest rate of not more than 5% per annum, the said sale to be held on such date as the City Council shall direct and the notice thereof to specify that the City reserves the right to reject any or all bids for the bonds. Should the bids received for the bonds not be acceptable to the City Council, the City Council May readvertise the bonds for sale as provided in Oregon Revised Statutes 287.002 or may sell them to the Federal Government or to any department or agency thereof at such price and at such effective interest rate, not exceeding that contained in the most favorable competitive bid received for the bonds, as the City Council shall deem advisable. In the event the City sells the bonds to the Federal Government or to any department or agency thereof, they may, at its option, issue the bonds in the form of one or more installment bonds.
Section 5.
The Council desires and deems it necessary and advisable for the immediate preservation of the health, peace and safety of the City of Sodaville that this ordinance take effect at once, for the reason that the water system of said City is necessary to meet its health needs and must be commenced at one in order to be ready for use as soon as possible and therefore an emergency is hereby declared to exist and this ordinance shall be in full force and effect from and after its passage and approval.