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75 Issuance of Sewer-Water Revenue Bonds ,a!~ ORDINANCE NO. 75. ~ ' 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:::'::: - ." . ~...... - " 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. ' .... ", I I ,a..l~, ORDINANCE NO. 75. ~ ' 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. ", -::::;.-::; . - -" -::-: '..- ...... '. - , , . 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. . . I I I I t~ . 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, 'l? I 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'. ~ -- I I 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 At~ _ -. . _~ -- 01 / 7~--~ c~ I,v/-C! - ,I atS 1,- -. I