75 Issuance of Sewer-Water Revenue Bonds
,a!~
ORDINANCE NO. 75.
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AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT MORE THAN ~~275, 000 .00
OF lPATER-SEWER REVEl-HJE BONDS OF THE CITY OF MERIDIAN, IDAHO, VlHICH
SHII,Ll, BE PAYABLE 011LY OUT OF THE EARNINGS AND REVENUES OF SAID SYS:..
TEMS; PROVIDING FOR THE FORM OF SAID B(~IDS AND INTEREST COUPONS TO.~._
BE ATTACHED THERETO; CREATING A SPECIAl FlJND IN THE OFiTICE OF :I'HE"'.- ~ ";~-.;..
CITY TREASURER TO BE KNOWN AS "WATER-SEWER REVET-Hm St'ECI.A1 Fli}TD.-QF-'_~ ,,'~ ---
1955", AFD C REAT INGA SPECIAL RESERVE ACCOUNT I:: THE I D AHOJi'IRST . -,-,:: -~~~
NATIONAL BAl-1K OF MERIDIAN, IDAHO; PRESCRIBING CERTAIN COVENANTS AND / -~~---'~
PROVIDING .B'OR THE PUBLICATION OF, AND EFFECTIVE DATE OF, THIS ORw:~.fJJCE.: c:::':::
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VmEIillAS, at an election duly held within said City of Meridi_~, ;-'-;->
IdallO, on ~he 30th day of August, 1955, .l.1.evenue Bonds in the amQunt .-,,-..'
of not more than $275,000.00 were authoriz.ed for \)ayment of the..9tlsJ~-"~,>'
of the acquisition and construction of a Sewage ';l.'reatment Pl'ant-"and~~ ",.,
trunk and lateral sewers, which for the sake of brevity is ref~rred'
to as "WORKS"; p'nr'1,
WHEREf.3, by Ordinance No. 74 the water works system revenues
have been pledged as additional security for the payment of the Rev-
enue Bonds to be issueQ for the purpose set forth above; and,
WHEREAS, for the sake of brevity the water works system and the
Sewage Collection System shall be refer-red to as "Systems" ;and
WHEREAS, there are certain requirements that must be ~omplied
with by the issuing corpoI'atioD prior to the issuance of these Rev-
enue Bonds,
NOW THEREFORE, BE IT ORDAI1~D BY THE MAYOR AND COUNCIL 0Ji' THE
CITY OF 1~RIDIAN, ADA COUNTY, IDAHO:
Section 1: That for the purpose of obtaining and providing
sufficient funds for the payment of the cost of the constI'uction
and installation and acquisition of said Works, and in ordeI' to pay
the costs of-the issuance of said nevenue Bonds and part of all
einglneering, inspection, fiscal and legal expenses, and interest
which is estimated will accrue during the construction neriod and
for six months thereafter on money gorrowed, there shall be issued
and sold by the City of Meridian, Idaho, Water-Sewer Revenue Bonds
of said City in the aggregate principal amount of Two Hundred Seventy-
five Thousand Dollars (275,OOO.00) which is the estimated cost and
expense of all the foregoing, which said bonds shall be dated October 1,
1955 or on such date agreeable to the purchaser as may be fixed by
the ~ayor and Council subsequent to the sale thereof, and shall bear
interest at a rate or rates, of not more than Four and one-half per
centum (4~%) per annum, payable semi-annually after'date, and shall
consist of Two Hundred Seventy-five (275) bonds of the denomination
of $1,000.00 each, numbered from One (l~ upward consecutively, shall
run for a period of Twenty-five (25) years from date of issue, and
shall mature and be payable as follows:
$ 5~000.00 in each of the years 1957 and 1958
6,000.00 in each of the years 1959 and 1960
7,000.00 in each of the years 1961 and 1962
8,000.00 in each of the years 1963 and 1964
9,000.00 in each of the year-s 19(5 and 1966
10;000.00 in each of the years 1967 and 1968
11,000.00 in each of the years 1969 and 1970
12~000.00 in each of the years 1971 and 1972
13,000.00 in each of the years 1973 and 1974
14,000.00 in each of the years 1975 and 1976
15,000.00 in each of the years 1977, 1978, and 1979
40,000.00 in the year 1980.
Any balance from the sale of said bonds over and above the for-
going costs will be deposited in the Water-Sewer Hevenue Special Fund
hereinafter created in this Ordinance. Any or all bonds maturing on
December first in each of the years 1966 to 1979, both and all yeaTS
inclusive, aggregating $174,000.00, .may be redeemed on any interest
payment date on or after December 1, 1965, and any or all bonds ma-
turing on December 1, 1980, aggregating $40,000.00, may be redeemed
on any interest payment date on or after December 1, 1958, the fore-
going redemptions being in the inverse order of the numbering of said
bonds, highest numbers :t'lrst, upon and after prior publication of notice
of the intention to redeem any of said bonds by publication of such
notice at lf8st once in a newspaper of gener-al circulation in said City,
at least thirty days prior to the date of intended redemption, and by
mailing notice of' said call at the same time to the purchaser- of said
bonds, and upon the date of such r-edemption interest upon said bonds
shall cease to accrue.
Section 2: The constructi In, acquisition, improvem,ent, equip-
ment, custody, operation and maintenance of these Wor-ks, and the co-
llection of reltenues from the Systems for the services render-ed tbere-
by, shall be under the supervision and control of the governing body
01' thio municipality. '
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ORDINANCE NO. 75.
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AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NO'r MORE THAN ~~275, 000 .00
OF ,,^r~4.TER-SEVVER REVENUE BONDS OF THE CITY OF MERIDIAN, IDAHO, VJHICH
SH ALl, BE PAYABLE Ol--TL Y OUT OF THE EARNINGS AND REVENUES OF SAID SYS~'
'TEMS; PROVIDING FOR THE FORM OF SAID BillJI)S AND INTEREST COUPONS, 1'0-'_'
BE ATTACHED THERETO; CREATING A SPECIAlL FUND IN THE Oji'J<'lCE U.J:l' :l'HE-.- - <~>::-
CITY TRE1~SURER TO BE KNOWN AS "WATER-SEWER REVEl\-rL1F. .S-PECIAL Flf1,TD-QF~~ ~ ~-~-
1955", AlJD CREATING A SPECIJ\L RESERVE ACCOUNT T:'~ THE TDAHOFTf(~' - -r.<;, ~-~S
NATIONAL BANK OF MERIDIAN, IDAHO; PRESCRIBING CEHTAIN COVET'TAN'l'S ANi) '.,../---:
PROVIDIEG ji'OR THE PUBLICATION all', AND EF1!'ECTIVE DATE OF, rrHIS ORW:~:A'NCE. ", -::::;.-::;
. - -" -::-:
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VlliEREAS, at an election duly held within said City of Merid~~,
Id8ilCi, on th e 30th day of Augll~ t, 1955, .devenue Bonds in the- amQllnt ,-,,--,'
of not more than $275,000.00 were authorized for oayment ort'he,obst~<">-
of the acquisition and construction of a Sewage '.1'reatment Pi'ant --and> ~- ;.,
trunk and lateral sewers, which for the sake of brevity is referred
to 8S "WORKS"; 81"1'1,
WHEREL3, by Ordinance No. 74 the water works system revenues
have been pledged as additional security for the payment of the Rev-
enue Bonds to be issued for the purpose set forth above; and,
VVIillREAO, for the sake of brevi ty the water works system and the
Sewage Collection System shall be referred to as "3ystems",;and,
WHEREAS, there are certain requirements that must be complied
with by the issuing cor:9orati on prior to the issuance 01' these Rev-
enue Bonds,
NOW THEREFORE, BE 11' ORDAINED BY THE MAYOR AND COUNCIl, OF lIRE
CITY OF MERIDIAN, ADA COUNTY, IDAHO:
Section 1: That for the purpose of obtaining and providing
sufficient funds for the payment of t~e cost of the cuns~ruction
and installation and acquisition of s~id Works, and in order to pay
the costs of-the issuance of said aevenue Bonds and part of all
eingineering, inspection, fiscal and legal expenses, and interest
which is estimated will accrue during the construction period and
for six months ~here~fter on money ~orrowed, there shall be issued
and sold by the City of Meridian, Idaho, Water-Sewer Revenue Bonds
of said City in the aggregate principal amount of Two Hundred Seventy-
five Thousand Dollars \275,000.00) which is the estimated cost and
expense of all the foregoing, which said bonds shall be dated October 1,
1955 or on such date agreeable to the purchaser as may be fixed by
the ~ayor and Council subsequent to the sale thereof, and shall bear
interest at a rate or rates, of not more than Four and one-half per
centum (4'~%) per annum, payable semi-annually aft er dat e, and sha 11
consist of Two Hundred Seventy-five (275) bonds of the denomination
of ~~l, 000.00 each, nwnbered fl"om One (1' upward cons ecut i v ely, shall
run for a period of Twenty-five (25) years from date of issue, and
shall mature and be payable as follows:
$ 5,000.00 in each of the years 1957 and 1958
6,000.00 in each of the years 1959 and 1960
7,000.00 in each of the years 1961 and 1962
8,000.00 in each of the years 1963 8nd 1964
9,000.00 in each of the years 1965 and 1966
10,000.00 in 9ach of the years 1967 and 1968
11,000.00 in each of the years 1969 and 1970
12;000.00 in each of the years 1971 and 1972
13,000.00 in each of the years 1973 and 1974
14,000.00 in each of the years 1975 and 1976
15,000.00 in each of the years 1977, 1978, and 1979
40,000.00 in the year 1980.
Any balance from the sale of said bonds over and above the for-
going costs will be deposited in the WeGex-3ewer Revenue Special Fund
hereinafter created in this Ordinance. Any or all bonds maturing on
December first in each of the years 1966 to 1979, both and all years
inclusive, aggregating $174,000.00, may be redeemed on any interest
payment date on or after December 1, 1965, and any or all bonds ma-
turing on December 1, 1980, aggregating $40,000.00, may be redeemed
on any interest payment date on or after December 1, 1958, the fore-
going redemptions being in the inverse order of the numbering of said
bonds, highest numbers 1'irst, upon and after prior publication of notice
of the intention to redeem any of said bonds by publication of such
notice at least onoe in a newspaper of general ctr~\]lAtion in said City,
at least thirty days prior to the date of intended r-edemption, and by
mailing notice of' said call at the same time to the purchaser of said
bonds, -- and upon the dat e of such r-edempt ion int eres L upon said bonds
shall cease to accrue.
Section 2: The constl'\Jcti Dn, acquisition, improve!l1ent. equip-
ment, custody, operation and maintenance of' these Works, and the co-
llectionof reffenues from the Systems for the services rendered there-
by, shall be under the supervision and control of the governing body
or this municipality. . .
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. Section 3: That the rorm of said bonds and the'interest coupons~
WhlCh shall be attached thereto and the Certificate of the Clerk and
the Treasurer of said City, which shall be printed upon the back of
each bond, shall be sUbstantially in the following form, viz:
Ord # 75 Cont'd
Page No 2
No.
~~l,OOO.OO
UNITED
ATvlliHIC A
S'l'A'l'ES
OF.
STATE
CITY
IDAHO
IvllilU LJ I AN
OF
OF
T,'lATEH-SEWEi:{ H.l:NEI'UJ:t.: >30ND OB' 1955
KNOW ALL ~lll<.;N B:i 'l'Hl<.;S.c.: PHK3.r>;1\:"TS: That the C1 ty of" Meridian Ada
. ,
County, Idaho, for value received hereby promises to pay to bearer
on the first day of , 19 , the principal sum of
ON.!!; TdOUSAND 1J01LA~ .
($1,000.00), with interest thereon from date hereof at the rate of
per centum (_11,) per anrlLUtl, paYClLlle tlsmi-anrually on
the first day of . and the first day of in
e8ch year, upon the presentation and surrender of this bond at its
maturity, and upon the presentation and surrender of the annexed
interest C01..',')on8 dS tiJey se"TT~";:'~_~3' become payable, 1~c":.,",-Cirincipal
and interest being payable in Imvful money of the United 3tates of
America at the office of the treasurer of the City of Meridian,
in Meridian, Idaho.
This bond snd the interest thereon arB pay~ble solely from a
S:pecial Water-Sewer Revenue Fund named and known as the "Water-
Sower Revenue Speoial Fund of 1955," created by Ordinance No
of said City, passed and approved December 5, 1955, and hereafter
duly publlshed, providi.r..g for the monthly payment, commencing VIIi th
the month of , 195 , or upon the month following the
completion of the work, into sarli Special Wet er-Sewer ~c{evenue Fund
from the eArnines and revenues of the water-sewer svstems of said
City of fixed amounts of the revenues of said syste~s sufficient to
pay the principal and interest of this bond and of the issue of
bonds of which this is one, as the same become payeble, and 08 p~o-
vided in said Ordinance; and the City of Meridian hereby covenants
and agrees with the holder of this bond, and each subsequent holder
thereof, that it will pay, and cause to be paid, into said Fund
monthly after date hereof from such revenues an amount sufficient '
to pay such principal and interest at maturity and as they accrue
and become payable and as provided in said Ordinance; and will per-
. form and keep all the covenants and provisi:Jlls of said Ordinance
No. and of Ordinance No. 74; that said City Shall not sell,
leage:-or in any manner dispose of, said systems, or as the same
may be improved, bett.ered OT' extended hereafter, or any substantial
part or unit thereof, until this bond and the bond issue of which
it is one, together with interest hereon, shall be paid in full,
unless and until provisiun sl11::111 h/:lve been made for the l~ull payment
of all of said bonds, and interest; that, said City, until all of
~8id bonds and the interest thereon shall have been fully paid,
shall not reduce the rates required by it for Sewer and Water ser-
vice from said Systems so that the gross revenues of said Systems
(/:lfter subtracting the cost of operation end luaintenance thereof) shall
be insufficient to permit the making of the pay~ent of the fixed
amounts into said Special Water-Sewer Revenue Fund as required by
Ordinance No. and as recited herein; that 11' at any time the
gross revenues of said Systems, or as hereafter bettered, extended,
added to and improve, shall not be sufficient to pay said" costs of
operation and maintenance and charges thereon by said Ordinance
created in favor of the bonds authorized by said Ordinance, it, the
said City, shall increase its said rates La tluch rates and amounts
8S will be sufficient toprovide for the payment of all such costs
of operation and maintenance of said systems and of the principal
and interest of the bonds authorized by said Ordinance; that in order
to oreserve the priority of the said Special Water-Sewer Revenue Fund,
the' said Oity shall not create, or permit to be created, so long
as any of said bonds shall be outstandigg and unpaid, any indebted-
nABS or charge whatsoever which shall be a charge against the rev-
Dnues 6/ ~a1d Systems superior to the charges created by said Or-
dinance; that any future charge or special fund indebtedness which
may be cr eat ed by Ba id Oi ty, to be payabl e '::'1:.+; :~f the revenues of
said Systems, shall constitute a charge and lien SUbject and junior
to the charge and lien thereon created by said Ordinance. The City
of Meridian covenants and agrees that it will maintain at all times
a Special Reserve Account equal to $17,500.00, in addition to the
Water-Sewer Revenue Special Fund of 1955.
This bond is one of an issue of the Water-Sewer Revenue Bonds of
2lt.l Or-d No. 75 Cont'd page 3.
~ 5 of said City, of like dat e, tenor and effect, exc ept as to dat es of
maturity and varying rates of interest, aggregating Two Hundr-ed Jeventy-
five Thousand Dollars in principal amount, nWllbered from Or:.e (1) to Two
Hundred Seventy-five (275), both inclusive, of the denomination of $1,000.00
each maturing in numberical order, lowest numbers forst, on :...
fir~t over the years 1957 to 1980, both and all yeaTS .therein inclusive
as shown by the Schedule on the back hereof; Provided, however, that-
Bonds Nos. 62 to 235, both inclusive" or any of them, matuTing on and
after 1, 1966, are subject to the right of prioI' redemp-
tion at the option of the City on any interest payment date on or after
1, 1965 and Bonds Nos. 236 to 275, both inclusive, or
any of them, maturing on 1, 1980, are subJeuL Lo Lhe right
of prior redemption at the option of the City on any--interest lJayment date
on or after 1, 1958, such redemptions being in the inverse
order of the numbering Of said bonds, highest numbers first, upon and
after prior publication of a notice at the intention of the City. thus to
redeem any of said bOIlds, by lJUblication of such notice at least once tn
a newspaper of general circulstion in said City at least thirty (30) days
prior to the date of intended tedemption, and by mailing notice of.said
call at the same time to of I
' the purchaser of said-
bonds; and upon the dote thus fixed for redemption, interest upon the
bonds thus called for redemption shall cease to accrue, The foregoing
bonds have been. issued by the Ci ty of Meridian, Idaho, for the purpose ... -
of acquiring funds to pay the cost of the acquisition and construction of
a Sewage Treatment Plant and trunk and lateral sewers as provided in
Ordinance No. 74 of said Cit.y and as 8uthorizeo At an election held within
said City on August ~O, 1955. This bond'has been issued undei the authority
of and in strict compliance with the Constitution and laws of the State
of Idaho and with Chapter 47 oE the 1951 Session Laws of Idaho, and the
Ordinances and Resolutions,of said City.
It is hereby certified that all acts, conditions and things required
by the Constitution and laws of said State and by the Ordinances and Res-
olutions of said City to happen, extist and be done and performed pr-ecedent
to and in the issuance of ttis bond have duly happened, have existed and
do exist, and have been done and performed, and that th is bond and the
bond issue of which it is one are not affected by any constitutional or
other municipel debt limitation.
IN "WITNESS WHEREOli' the CITY OF MERIDIAN, ADA COUNTY, ID.AHO, has
caused this bond to be signed in its corporate na~ue, by .the Mayor of said
City, countersigned by its Treasuere, and attested by its City CleTk
under the seal of said City, and the coupons hereto attached to be signed
by the Treasurer 01' said City by his facsimile signatur-y, which of'flulal,
by the execution hereof, does adopt as and tor his proper signature his
facst~ilA signAture appearing on each of said coupons, this first day of
, 1955.
(form of Interest Coupon)
cl,
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CITY OF MERIDIAN, ADA COUNTY, IDAHO
BY t>O.&t SI!3:,1l
ITS MAYOR
ATTEST:
1:> 0 .,.${ ![:h.
. City Clerk
Countersigned:
~o ffit $1'9'11
i ty 'l'reasurer
No.
( )
On the first day of ( ), 19 , the City of Mer-
idian, Idaho,. will Day. to bearer at the. office of the Treasurer 01' said
City in Meridian, Idaho, . Dollars($ )
in lawful money of the United States of America solely from the "Water-
Sewer Hevenue Special ].'und of 1955" of said City created by Or-dinance
No. , passed and approved December 5, 1955, and solely from the
earnings and r-evenues 01' said Water-Sewer systems, bei.ng the secni-snnual
interest then payable on its Water-3ewer Revenue 2>ond of 1955, ci2.1Led
1, 1955, Bond No. .
(Facsimile Signature)
'Treasure:, cf the City of Meridian, Idaho.
(The following additional language will be printed upon the coupons
of the bonds subject to prior I'edemption, vi~:
In the event of prior r-edemption of the annexed bonds
all unearned interest evidenced hereby as of the date
of such prior redemption shall cease to be payable.
CERTIFICNIiE OF CITY CLEHKAND CITY TRKliSURER
(to be printed upon the back of each bond)
We, the undersigned Clerk and the Treasurer of the City of Meridian,
Idaho, do heI'eby certify tJ..lCl L. the withIn bond has been duly register-ed
in permanent record books kept in our respective offices for the Dur-
po:=;e of su';i-: regiS.;I'atio.l1., in 1'.'.11 COLO.p' ~ al-ce w' tL the Dravis i 0 s'.
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Ord No. 75 Cont'd Page 4. .
of Chapter 262 of the Session Laws of the State of Idaho, of' 1927, ~)5
and as amended, and Chapter 47 of the Sessions -Laws of the State of
Idaho of 1951, and all other laws applioable thereto, such registration
showing the number, date, amount of the bond, rate of interest thereon,
date of maturity~ Plaoe of payment and the number and deno.minations of
the attaohed coupons; and the undersigned Treasurer does hereby certify
that before the delivery of thio bond he received the proper consid-
eration therefor.
(Do Not ':Jign) (Do Not Si~n)
Clerk of the City of Meridian, Treasurer 01' the Clty of Merldian,
Ada, County, Idaho. Ada County, Idaho.
(END OF BOND FORM)
Seotion 4; There shall be, and there is hereby createdand
established in the offioe of the Treasurerof the City of Meridian,
IdahO, a Special Water-Sewer Fund whfu~hshall be known ,and dexcribed
as the "WATER-SEWER REVE1\T()E SPECIAL FUND OF 1955" of the City of Mer-
idian, into which Fund for the purpose of naying the principel and
interest of said bonds, aocording to their maturities, shall be paid
monthly by said City, and the proper officers of said City shall pay
monthly, and this City Council, by this. Ordinance docs hereby promise
and agree, and obligates and binds the Gity of Meridian, to set aside
and payout of the gross earnings and revenues of said Systems (SUbject
to the primary deductions therefrom of sums equal to the costs and ex-
pensesof operation and maintenance of such Systems), a definit~ sum
~9.llthl:'l___in--e:v:1iXY_Jl1onUt__du;I'ing the life. _Clf said bonds ,--co-mm:encine;-nw1th
---------- 1,195, or upoIlt,.tle..IllQI1th follQwing the comple-
tion of tl1.Ei..Wo.rk,s, and until the full payment of said bonds and all
nT'E'er-esf,-,-equal in amount (in each such month in B8Ch year during sald
periOd of monthly payments) to one-twelfth of the aggregate amount of
hond principal which shall be payable during, and at the expiration of,
each such year during the life of said bonds, and as specifically set
forth hereinbefore, plus one-twelfth (in each month) of the bond in-
teres L accI'uing and be ing payabl e within each such year.
It is hereby made the mandatory offioial duty of the Treasurer of
the City of Meridian, Idaho, for the time being, to maintain said
Special Water-Sewer Revenue Fund continuously in his said office, and
to pay, and to caase to be paid, into said Special Water-Sewer Rev-
enue Fund out of the said revenues of said Syotems, the foregoing bonds,
and to apply said moneys for the D:nr'1lant and retirement of said Water-
Sewer Revenue Bonds According to their terms.
The foregoing Special Water-Sewer Revenue f'und created hereby,
and the funds paid therein, as required hereinbefore, shall be used
solely for the purpose of the payment of the principal of sAidhondR
authorized hereby as they mature and become payable, and for the pay.:..
ment of the interest thereon as the same accrues and becomes payable,
as provided in the interest coupons which shall be attached Lo ~aiQ
bonds, without preference or priority of the interest upon one bond
over another bond maturing in any year, by reason of its numbering,
priority of issuance or 'otherwise.
The City Council and the corporate authorities of the City of
Meridian hereby declare that in fixing the amounts to be paid into ~aid
Special Water-Sewer Revenue Fund, as aforesaid, they have exer<<ised
due regard to the cost of operation and maintenance of said municipal s
systems and that no portion of said revenues nor charges has been pre-
viously pledged for any other indebtedness.
Section 5; Said City hereby covenants and agrees with the owne~s
and holders of each of said bonds that the City will maintain and
collect rates and charges from said Systems, and will make available
for the payment of the principal and interest of all of such bond~ ~s
the same shall acorue an amount equivalent to 1.4 times the amount
required each year for the principal and interest payments due on all
such outstanding bonds. The amount "available for the payment of t.he
principal and interest of all such bonds as the same shall accrue" is
hereby def'lIled !:H3 the gross r-evenues of the said Systems less oxpenses
of Maintenance and operation. The 1.4 coverage shall remain in effect
until there has been accumulated the sum of $17,500.00 which will be
placed in a Special Reserve Account created in Section 6 hereof.
Section 6: There shall be, and there is hereby created and est-
ablished by SQid City, in addition to the "Water-Sewer Revenue Special
Fund of 1955","8 Special Reserve Account, and in addition to the sums
above requirec}," said City shallset aside and pay into said,SpeJ;:ial
Reserve AccolJ_nt, out of the gross revenues of said Syst7mS-,:--{3ft-t;t~~_the
primary deductions therefrom have been made of sums equa-:)..-,..t,Q_-.!o.he':C:Qsts
and expenses of aeration and maintenance of said Syst'ems.,<and -a.;ft~X-:::.the
monthly payments into said Special Water-Sewer Renenlle- Funa^--have^ b~ ..
made, as provided in Section 4 hereof, all surplus earnin:g..s..,~~2roh mo;Hh,
commencing with the month of , 195,_or- ''J.IjOn~ the~-2
month following the completion of Lhe works and mo.c,thly: tb.e..rafter -y-n~il
said Special HeReI've Account equals the sum of $17500.00....~ '1'lie__...8ityof
Meridian heEeby covenants and agrees with the holders of-saic=r:_bonds
Ord No. 75 Cont'd Page 5
that said sum of $17500.00 shall be collected within five years from
date of said bonds. When the sum of $17500.00 has been 'deposited in said
-SueniAl Reserve Account no further payments shall be made into said Special
R'eserve Account. Said City Further agrees that I L will at all timeD main-
tain said sum of $17500.00 in said Special rteserv~ Account. In the event
of B deficiency in the said Special Water-Sewer Revenue Fund for the
payment of maturing prin?ipal and interest amounts! s~ch ~efi~iency shall
be made up from the S08clal Reserve Account and sald npeclal heserve
Account shall be rej,mtursed out or Lhe next available revenues arisine,
from said Systerns after making necessary-provision for the re~uired pay-
ments into bhe SpeniAl WAt~r-Sewer Revenue Fund and "costs and expenses
of maintenance and operation. The Foregoing funds deposited in the
Special Reserve Account must be deposited in the Idaho First National
B~nk of MeridIan, Idaho, or invested in securities as authorized by
Chapter 185 of the 1953 Session Laws of Idaho.
This balance will be maintained until there is a sufficient amount
in the Special Water-Sewer Revenue ~'und and Special Reserve Account to
retire all the outstanding bonds.
Section 7: It is the ~uty of the City to transfer fron the General
Fund to the account, or accounts, of th~ Special Water-Sewer Revenue Fund
or the Special Reserve Account, 8. sum, or sums, 01' money for -furnishing
t-he municipality, or any of its department s, boards or- aceno ioo , wit h
the services and facilities of such Systems.
Section B: T~at in Addition to the covenants set forth in Ordinance -.
no 7401' this City and in this Ordinance, the said City Council further
covenants and agrees that none of the funds specifically pledged have hereto-
fore been pledged ror tIle peyment of any speciol fund indebtedness what-
soever and that the rf'venues of s8i~ 3yst,ems are sufficient in amount to
fully ~AY the foregoing bqnds hereby authorized in addition to all other
charges thereon.
Language expressing ihe terms or sub~tance of this Section and the
covenanLs contained in Ordinance No. 74 shall be set fnrth in the fore-
going bonds in the form of, and as, a COJ8Ddut ana 3creement of said City
with 8ach and all of the owners and holders at any time of said bonds or
any of them. '
Section-9. It is further resolved, covenanted and ~gre8d by this
municipality, that :(01' the protection of said municipality'and for the
further securing of said bonds, the municipality shall obtain and main-
tain at all times during ~he life of said bonds, the fol~owing insurance:
, (Use and ~CCUpancy insurance if available)
That this insurance p01ice, or p61icies, shell be in an amount, or
ar:lounts, sllffj<;iAnt to protect said municipality and the holders of said.
bonds from any and all loss which may result to them during the life or
said bon.ds and until the full payment thereof from any interruption of
said Systems, or from any interruption in making the payments 'out of RAid
facilities for the payment of said bonds and interest thereon.
Said Insurance pOlicy, or policies, shall be in such amo~nts and terms,
and be in such insuTance company, or cOlnpanies, as in the judgInen~ of' this
City will be adequate for the reason~ble protection of the foregoing bond
issue. In the event of any loss of, or diminution in, and during the neTiod
of any loss or diminuti&n in, the earnings, of the foregoing Systems,
insurance payments sufficient to adequately protect the bondholders will be
:;Jaid into the '.'.ater-Sewer Hevenue Special Fund of 195).
Section 10: A complete set of books of account of said Systems shall
be kept in the of'fice of the Treasurer of said City and shall be open to
inspection by the public at any time during office hour"s. The books of
Account shall be audited Annually by a Certified Public Accountant
appointed by Lhe City of Meridian, Idah~.
Section 11: When_ for any reason the City of Meridian, or any of it'S
duly authorized agents, have not deposited sufficient moneys in the Water-
Sewer Revenue Special Fund of 1955, and there has been a ~efault in the
payment of the principal and-interest of the bohds outstanding and payable,
then, and in that event, one, or any number- of t.hehol (JAY'S of the bonds
representing thirty per centum (39%) of the outstanding bonds, are en- '
titled to the appointment of a Re6eiver, ~hich Receiver may enter and
take possession of such Systems, operate and maintaIn tIle same, prescribe
rates, fees, tolls or charges and collect and receive and apply all revenue
thereafter arisine, th_erefrom in the same manner as the City of Meridian
itself might do.
Se(~t~op_ 12: If any section, subsection, sentence, clause 01' phTase
of t.q._i,]3-v~iDgmce is rUT tiny re8son held to be unconstitutional, such de-
cisj:;-o.n:- sh~)l -not, affect the validity of the remaining :portions of this Ordinance
'-::::. Sei0ti orl:' ,1 3 : This Ordinance shall take effect and be in full force upon
i:Fa._--:passa-g~, appr:wal and pub).ication in one issue of the Meridian 'Times,
a3~~~-wspa-:pE;:r,_of general circulation in said City, published at Meridian, IdaBo,
~Hl being..the official Newspoper of said City. ,
r,c " P,"~~-- _'_ ed :~n(r- 8Dproved this 5th dr:or Decembe ~ 19_55
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