283 Water & Sewer Revenue Bonds
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I
1_97
ARTICLE I
DEFINITIONS
That as us84 berei.n, tho following terms ehal1 bave the meanings i.ndicated wUess
the context otherwise clear1y requires: -
. 1.01 tlBoDflet'@;8bal.1 lIean the 12,3Z5,OOO Water and Sewer Revenue Bonde of the City
hereiii"'iUthorized, and. in Artic1es III, IV and VI hereof shal1 mean any Parity Bonds
hereinafter issued on a parity with the ~oncis hereia. authorized under the provisioDS
_ . of this ordiD8Jl.ce.
~ nCity't. shal1 meaD the City of Meridian, Ada COWltt, Idaho.
1.03 "Cost 01 Operation and Ma1.nteDaD.cen sbaJ.l lIean all costs reasonably and
necessarily incurred in connection with the operation and aaintenance of the,Systeaa,
inc1.udiDs repairs and renewa1s (other than capital. i1DproTeaaents) necessary to keep
the System in efficient operating conditioD, the cost ot audits hereinafterreCluired,
tees of the Depository and of u,y paying agent, psroperly a110cated charges for insurance
hereinafter required to be carried. on the System, ani, g$neral1y, all expenses (exclusive
of depreciation) which under general. accounting practices are properly chargeable.. to
operation" an. ..tnteDance; in every ilUStance, however, ow.,. CiUch expenses as are
reasonably and proper1,. necessary to the efficient operation and mainteJllaDce of the
System shall be included..
1-98
ORDI~ANCE NO. 283
_ 1.04 "Depository" shal.l lIlean Idaho First National BaDk, in the City of Meridian,
Idaho~f such bank shall become no lODger available to carry out its duties as De-
poeitory, the City shall select a Buccessor Depository bank which shall be a bank
having capita1 and surplus of not less than 81,000,000 and which is a member of the
Federal Depos1t Insurance Corporation at the ~i.ae of such appointment; similar successor
Depositories may be appointed thereafter frail time to time as such appointment beeODles
necessar1. Such successor Depository shall replace the original Deposito~ as Depository
and custodian of the Bond Redemption Fund including the Reserve Fund here1nafter created
and required to be held by the Depository,and there shall be paid over to each such
61lCCessor Depoeitor;r by ita predeceasor Depository all money, fUBds and other property
of every nature then held by such predecessor DepositorY under, the provisioIlS of this
ordinance, or any subsequent ordinaJ1ce authorizing the issuance of any Parity Boads.
1.05 "Fiscal Year" shall mean- the twelve month period used by the City for its
general accounting purposes as the same- ...y- be changed from time to time, initially being
a twelve month period beginning on January 1 and ending on the next sueceecii.ng Dee_bel- 31.
- - -
1.<:>6 "Net Revenues" shaJ.l mean all revenues after deducting therefrom all sums
expend.ed for payment of the Cost of Operation and. Mai.ntenance of the System, inol.ucti.q 1
all incid.enta1 costs, fees and expenses expended from Revenues 80 deposited or with.-
drawn and properly chargeable to Costs of Operation and Maintenance.
1.07 "Parity Bonds" sha11 inean any obligatiollB which may be hereafter issued. on -
a parity with the Bonds herein authorized pursuant to the condition8 and restrictions
bereinafter set forth in Article IV hereof..
1.08' "Revenue Bond. ActU shall mean Sections 50-1027 to 50-1042, inclusive, Idaho
Code,-as-amended. -
_ h22 t'Revenueslt shall mean aJ.l. revenues, income or profits of any kind howsoever
derived directly or indirectly trom water or sever services, or both, supplied by the
System, and from the use and operation of the System, including but without, limitation
monthly water and sewer service charges, connection fees, collected from and after the
date- of adoption of this ordinance, interest received on invested money and profits
realized from the sale of investments made with the Revenues of the System.
1.10 "Sewerage System" shall mean. the same as is defined in the Revenue Bond Act,
and as""iiSed herein shall apply to the facilities of the City coming wi thin such definition.
1.11 "Sinking Fund Year" shall mean the twelve month period beginning October 1 and
eni:1i.JiiOiithe-next succeecling September 30.
1.12 "System" Bball mean the public utility comprising the Water System of the City
to be improved and extended in part with the proceeds of the Bonds, and the Sewerage
System of the City to be improved and extended in part with the proceeds of the Bonds,
j;he whole to constitute and be operated as a revenue producing public utility for said
City, as it now and may hereafter exist and be improved and extended whi1e any of the
B01!lds or Parity Bonds remain outstanding, incl.ud1.ng all improvements, additions and
extensions made thereto and including all real and persona1 property of every nature
owned. by the City- and used or useful in the operation thereof, whether within or without
the bOWldaries of the City. -
1.13 "Water System" shall mean the same as is defined in Reven.ue Bond A.ct, and as
used herein_ shall-apply to the facilities ~f the City ~oming within such definition.
ARTICLE II
BOND DETAILS
~ That tor the purpose of providing funu with which to pay part of the cost of
constructiDg improvements and extensions to the System of the City, together with a11
necessary appurtenances, a1l purSU8Jlt to the prell.minary report therefor which has been 1'--
prepared and filed bY' J-U-B Engineers, Inc.,Coasulting EDgineers, -of~llampa, Idaho,
heretofore selected by the Council and Mayor ot the City tor such purpose, and em file
in the office of the City Clerk, and includ1J:ag the payment of incid.ental eng1neeriDg,
inspection, legal and fiscal costs, there shall. be b0rrowed upon the credit of the
Revenues of the System the sum of 52,325,000.
In evideDce of the sum to be so borrowed. there shall be-issued the negoti-
able revenue bonds of th.e City, pursuant to the provisions of OrdiXlaJ1ce Number 214 and of
the Revenue Bond.' Act, whiCh revenue' bonds eha11 be payabl.e solel,. troll the Revenues to
be "rived from the operation and ownership of the System, as more specifically herein
provided. -
, - ~ That said Bonda shall be des~ted "\later 8J1d Sewer Revenue Bondatl, shall
be in the total principal amount of $2,325,000, shall be dated October 1, 1975, shall
be in the de1!lominati~n of S5,~ each, shall be nWlil)ered 1 to 465, inClusive, and shall
bear interest at the rate or rates hereiDa.tter set out, payable April 1, 1976. and
semiannually thereafter on the first day~ of April and October of each year. The Bonds
shall be payable as to both principal and interest in lawful money of the United states
of America at Idaho First National Bank in the City of Meridian, Idaho, and shall be
numbered and mature serially in numerical order on October l-of each of the years and
bear interest as follows:
:199
ORDINANCE NO. 283
- BOHD IfUMBERS AMOUNi' !!@ _ INTEREST RATE
lto5 S 25,000 197" ~
6 to 10- 25 ,000 1978 7%
11 to 1.5 2.5,000 1979 - - ~
16 M 21 30 ,000 1980 7%
22 to 27 30 ,000 1981 ~-
28 to 34 35,000 1982 7'J6
35 to 41 35,000 1983 .",
42 1lli 49 40 ,000 1984 ~
50: to 57 40,000 1985 .",
58 to 66 45,000 J 1986 :!.~;,. 7%
67 to 76 50,000 1987 .,;,
71 to 87 55,000 1988 7%
88 to 98 55,000 1989 ~
99 to 111 65,000 "~990 $ 7" - ~
112 to 124 65,000 1991 7.2!$
I 125 1;0 138 70,000 1992 7.40%
139 to 154 80 ,000 1993 7.41$
155 to 1'70 80 ,000 1994 2~ ~ 7.~
171 to 188 90 ,000 19QC; - : 7.60%
189 to i5J7 95,000 1996 7.6~
208 to 228 105,000 1997 7.~
229 1;0 251 115,000 1998 7.60%
252 to 275 120,000 1999 7.6C:/IJ
- 276 to 301. 130,000 2000 7.7%
302 to 329 140 ,000 2001 7.7%
330 to 359 150,000 2002 7.7%
360 to 392 165,000 2003 7.7~
393 to 427 175,000 2004 7.7~
1+28 to 465 190,000 2005 I ~~ 7.75%
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200
ORDINANCE NO. 283
promises to pay to bearer or, if this boad is then registered as to principal, to the-
registered holder hereof ,- in the manner and from ,the -funds hereinafter provicied, the
SUI of Five Thousand. Dollars ($5,000) on the first day of October, ~, and to pay
interest on said sum from the date hereof until payaent of principal at the rate of
per cent ( %) per annum, payable ilIitial.ly on April 1, 1976, and. eemi-
annually thereafter on the first days of April and October of each year, interest fall-
iDg iue on and. prior to llaturity being payable upon. presentation and surrender of the
annexed interest coupons as the same severally become due. Both principal of and
interest on this bond are payable in lawful money of the United States of America at
Idaho 1st National Bank, in the City of Meridian, Idaho.
This bond is one of aD issue of $2,325,000 bonds 811 of like date, tenor and. effect,
except as to elate of maturity, option of redemption. (and interest rate), issued by the
Oity of Meridian Wlder the provisions of the Revenue Bond Act of the State of Idaho, for
the purpose of providing funds with which topa,. part of the costs of constructing improv-
ments and extensions to the combined municipal water system and municipal sewerage system
of said city, and said bonds, together with such bonds as may be hereafter issued on a
parity therewith, are payable only fro. the net revenues to be drived from the operation ,
of the combined public util.ity comprising the lIIWlioipal water system and municipal I
sewerage system of said city, the same to constitute and be operated as a revenue pro_
duci.ng public utility for said city, as such system" now and may hereafter exist and be
improved and extended, a portion of which revenues has been set aside as a special fund.
identified as "Cityo of Meridian, Idaho, Joint Water, and Sewer Revenue Bond Redemption '
Fund", and irreTOcably pledged to the payment of principal of and interest on said
bonds. This bond does not constitute an indebtedness of the City of Meridian within
the meaning of any constitutional or statutory limitation of indebtedness, is not pay_
abl.e from or a charge upon any funds of the City of, Meridian other than said "Cit,. of
Meridian, Idaho,. Joint Water and Sewer Revenue Bond, Redemption Fund", and the City of
Meridian shall not be subject to any liability thereon. No holder or hol.ders of this
bond shall ever have the right to compel any exercise of the taxing power of the City
of Meridian to pay this bond or interest thereon nor to enforce payment thereof against
any property of the, City of Meridian, nor sha11 this bond constitute a charge, lien or
encumbrance, legal or equitable, upon any property of the City of Meridian, except the
net revenues above mentioned. _
The boads of the issue of which this bond. is one, maturing after October 1, 1985,
are subject to the right of said city to redeem the same in inverse .J1umeric81 order Oil
that date and on any interest payment date thereafter at par and accrued interest, plus
a premium (expressed as a percentage of principal amount of each bond so c811ed for re-
'demption) of'~ for each bond 80 c811ed for redemption on or prior to October 1, 1986,
a premium of % for each bond so Called for redemption thereafter, and OD or prior to
October 1,.1990, a premium of 2% for each bond so_called for redemption thereafter ani
all or prior to October 1, 1995, and a premiua of 1$6 for each bond. so ca1led :for redempt-
ion thereafter prior to maturity.
Notice of any such redemption shall be given not less than thirty (30) days prior
to the da.te fixed tor redemption by pub~icat1on of an appropriate notice one time in a
financial newspaper or journal published in the City of New York, New York," Chicago,
Illinois, or San Francisco, California, and sent by registered mall to the place of
payment of. the bonds and to the original purchasers of the bonds. If a:ny bond which is
called for redemption is, at the time of such call, registered as to principa1, thirty
(30) d4:"s notice of redemption sha.~l be given-by registered mail sent to the registered
hol~er at the address shown on the Registrar's Registration Books. No failure to give
any such notice, or any defect therein, or in the mailing or publication thereof, shall
affect the effectiveness of the call for redemption of any of the bonds to be. so redeemed.
The City of Meridian has covenanted and hereby covenants and agrees at all times
,while this bond, or a:n.y bond of the issue of w1d.ch it 1.0 a part, is outstanding and unpaid,
to fix and maintain such rates for water and sewer services furnished by said public
utility as will be tully sufficient to provide for the,payment of the interest on and I
principal. of aJ.l of said bonds as interest and principal become due, to create a
proper reserve therefor, and to provide for the payment of the expenses of operating'
and maintaining said public utility. For a more particular statement of the covenants _
and prmsions securing the bonds, the conditions under which. the holders of 7% of
the bonds payable from said net revenues may consent to modification of the authorizing
ordinance and the conditions under which parity bonds may be issued on a parity with
the Water and Sewer Revenue 'Bonds, reference is made to Ordinance Number 283 adopted by
the City COWlcil. of said City on October 28, 1975, authorizing this issue.
- This bond and the issue Qf which it is a part are issued in conformity with and
after full compliance with the Constitution of the State of Idaho and pursuant to the
provisions of the Revenue Bond Act of the sta'te of Idaho, and all other lawrs appl.icable
thereto, after having been authorized by vote of more than a majority of the qualified
electors of said city at an election held on March 11, 1975.9It 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
have existed, have happened and have been performed in due time, form and manner as
requir'd by law, that the amount of this bond, together with the issue of which it forms
a part, does not exceed any limitation prescribed by the Constitution or statutes of the
state of Idaho, that an amount of the revenues to be derived from the operation and
ownership of the combined municipal water system and municipal sewerage system of the
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2Q:1
ORDINANCE NO. 283
City of Meridiu has been pledged and vill be set aside into a special fund by said
city aufficient for the prompt payment of the principal of and interest on this bond.'
and the issue of which it fDNS a part, and that the revenues of the combined lIRUlie1-
pal water system anclllUD.icipal sewerage systea are not pledged, hypothecated. or anti-
cipate. in any vs:y other than by the issue ot bonds ot vhi.ch this bond is one, an4
that this boad is exempt troll taxation, except transfer and estate taxes, in the
State of Idaho.
This boad is by statute made tully negotiable, but may be registered as to princi-
pal only in the maDDer and with the effect for which provision is made on the back hereof.
IN WITNESS WEREOJ', the City of Meridian, Idaho, acting through its City Council,
has caused this bond to be signed b,. its Mayor, countersigned by its City Treasurer and.
attested by its City Clerk (the signatures of said. Mayor and City Treasurer being by
f'acs1mile) and has cauaed the tacsi.ll1le of the official aeal ot 88id city to be printed
hereon, and bas causecl the interest COUpoDS hereto attached to be executed bY- the
facsimile signature of said City Treasurer, all as of this firstday' of October, 197.5.
Mayor
(Facsimile Signature)
Countersigne":
(Facsimile Signature)
City Treasurer
Attest:
Cit,. Clerk
(FACSIMn.E SEAL)
(Form-of Coupon) -
Number
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On the first d.8.y -of , , unless the hereinafter mentioned. bond is then
caLlable tor redemption and bas been 80 called and provision for the redemption thereof
clul;ymade, the Ci t,. of Meridian, Idaho, will pay to bearer the amount shown hereon in
the manner and out of the funds described in the 'bond to which this coupon 1s attached,
in lawful lIoney of the UDited Statesot AlGerica, at Idaho First Nationa1 Bank, in the
Cit;y of Meridian, Idaho, being interest then due on its Water and. Sever Revenue Bond
dated October 1, 1975, and numbered .
(Facsimile Signature)
Ci ty Treasurer
(Registration Certificate)
We, the uadersigned City Clerk and City Treasurer of the City of Meridian, Idaho,
40 hereby certif,. that tlie within bond has been cl1tly registered in permanent public
record books kept in our respective offices for the purpose ot 8uchregistration, in
full compliance with the provisions ot Title 57, Chapter 2, Idaho Code, and laws amenda-
tory thereot, such registration showiDg the nueber, date, amount of the boad. rate of
interest thereon, date of matUrity, place ot P81IIent and the number and denomination of
the attached coupons, and the D8IIeS of the purchasers and date of the delivery _of the _
bon4; and the UD.dersigned Cit1 Treasurer does hereby certify that before the delivery of
this bond he received the proper consideration therefor.
IN WI'l'NESS WBEREDF, we have subscribed our off1.cia1 baAde.
(Facsimile Signature)
City Treasurer
(Facsimile Signature)
City Clerk
(Form of Registration Certificate)
This bond ID8.J' be registered as to principal. only, in. the Dame of the holder, on the
books of the City Treasurer in the City of Meridian, whiCh registration shall be noted
by the City Treasurer in the blank below. Upon presentation of this bond by a registered
holder or by a bank or trust company authorized to do -business iD Idaho, with a written
request that it be registered in th$ name of aaother person or in the name of bearer,
the Cit;y Treanrer sha1l so register it. While registered in the name of a holder the
principal hereof shall be payable oDly to Iluch registered holder or his legal representa-
tive but after registration to bearer this bond shall again be transferable by delivery
but may be again registered as before. The registrat-ion of this bond as to principal
:aB2.
ORDINANCE NO. 283
shall not affect the negotiability of the coupons hereto attacbed, which shall con-
tinue to be transferable by delivery.
Date of Registration
In Whose
Name Registered
Signature
of Registrar
ARTICLE III
F.LQW OF FUNDS
3.01 That the Net Revenues are hereby pledged to the payment of principal of and
,interest and redemption premiums on the Bonds, and the Bonds shall be secured bya
prior and paramount lien on and first pledge of the Net Revenues. All of the Bonds
shall be equally and ratably secured by said pledge and lien without priority one over
the other by reason of date of Bal.e or del.ivery. 1
That the Bonds shall not be payable from or charged upon any funds of the City
of Meridian other than the Revenues to be derived from the operation and ownership of .
the System, nor shall the City ever be subject to 8:JJy liability thereon. No holder
or holders of any of the Bonds shall ever have the right to compel 8I1Y exercise of the
taxing power of the City to pay any of the Bonds or interest thereon or to enforce
payment thereof against any property of the City and such Bonds shall not constitute
a charge, lien or encumbrance, legal or equitable, upon rmy property of the City, other
than the Revenues received from the operation and ownership or the System.
3.02 That there is hereby established in the hands of the City Treasurer a
special fund to be kept separate and apart from all other funds of the City to be known
as the "City of Meridian Gross Income Joint Water and Sewer System Account" (hereinafter
sometimes referred to as the "Income Account") into which fund, from and after. the date
of the delivery of the Bonds, there shal.l. be credited all Revenues of the System as
promptly as possible upon the receipt thereof. The Income Account shall be maintained
so long as any of the Bonds remain outstanding in a bank or trust company which is a
member of the Federal Deposit Insurance Corporation, and the funds credi tad to said
Income Account shall be expended only in the manner herein specified.
~ That there shall.-be first paid from the Income Account into a special. fund
hereby established in the Income Account to be_known as the "City of Meridian Joint
'Water and Sewer System Operation and Maintenance Fund" (hereinafter sometimes referred
to astl1.e "Operation and Maintenance Fund"), on the first day of each calendar month,
the amount necessary to pay the Cost of Operation and Maintenance of _ the System as the
same become due and payable. The Superintendent or Manager of the System may accumu-
late as a Cost of Operation and Maintenance equitable allowances for accruals and
accumulations of accruals of amounts to cover the cost of periodic payments of operation
and maintenance expenses, such as, insurance premiums and expenditures for renewals,
replacements and repairs normally classified as operation and maintenance expenditures.
Payments from the Operation and Maintenance Fund shall be made by cheek or draft
signed by the Mayor, City Clerk and Treasurer after such officials shall have determined
~th4t the amounts of such payments are properly due and owing.
3.04 That there is hereby establiehed in the Depository for the purpose of paying
principal of and interest on the Bonds and such Parity Bonds as may hereafter be issued
on a parity therewith a special fund to be kept separate and apart from all other funds
of the City to be known as the "City of Meridian, Idaho, Joint Water and-Sewer Revenue
Bond Redemption Fund" (hereinafter sometimes called the "Bond Redemption Fund").
~ That upon the delivery of the Bonds that porticm of the proceeds thereof
which represents accrued interest shall be paid into the Bond Redemption Fund. In _each
linking Fund Year, after there shall have been transferred trom the Income Account in I.
each calendar month int.o the Operation and Maintenance Fund the amounts above required,
the City shall, on the first day of each calendar month, transfer from the Income
Account to the Bond Redemption Fund one-sixth of the amount of the interest due on
the - Bonds on -.tliEi-'luitxt succeeding interest payment date and, commencing on October 1,
l.976, and on the first day of each calendar month thereafter, ome-twelfth of the
amount of the principal. of the Bonds t'al.~ing due on the next succeeding principal pay_
memt date (except that prior to the payment of the first maturing amounts of' principal.
and interest coming due on any of the Bonds, BUch additional or greater transfers shall
be made as may be necessary to assure t.he prOJDpt payment of such principal. and intereat
wen due).
_3.06 That there :is hereby ~establ.ished in the Bond Redemption Fund for the purpose
of establishing a reserve for the "purpose of paying principal of and interest on the
Bonds. a special fund to be kept separate and, apart from all other funds of the City,
to be known as_ the "City of' Meridian, Idaho, Water and Sewer Revenue Bond Reserve Fund!'
(hereinafter sometimes called the "Reserve Fund").
.2!QZ That in each Sinking Fund Year after there sha1l. have been transferred troil
the Income Account in each calendar month into the Operation and Maintenance Fund and
into the Bond Redemption Fund the amounts above required, the Citysball, commenciDg
on January 1, 1976, and on the f:irst day of each January, April, July and October
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2.03
ORDINANCE NO. 283
thereafter, transfer from the Income Account to the Reserve Fund. the sum of 110,200
until there has 'been accUDlulated in the Reserve Fund. an ..ount equal. to 1204,000 to be
usecl only to. pay currentl,. maturiDg principal. of aDd. !aterest on the Bonds whenever
and to the exteat necessar,. to prevent a aefaul.t.
3.08 . That after the Reserve Fund. shall. haTe.. beeD. so aocumul.ated, the llouth1y pay-
ments sO made into the Bond Redemption Fund. on the first day of each cal.endar month shall.
be onl.,. those hereinabove required. to meet interest on Boncls payable from the Sou
Redellption Fund. due on the next interest pa,aent date and the principal due within the
next succeeding twelve month period. SJ1d. the quarterly payments so made into the Reserve
J'.!md on the first day ot eacb. January, April., Jul.,. and october 1!5haJ.l. 'be on1,. those here-
iDabove required to maintain the Reserve Fund. in the required amount if money sha11 ever
be. paid out of the Reserve Fund for the purpose for which it wa;s created. Whenever
Parity Bonds are issued, the proceec:U.ngs authoriziDg the issuance thereof shall. provide
that the monthl,. deposits into the Bond Redemption Fwul shal.l. be increased by all amount
equa1ing at leaet one-halt of the interestfa1l.iAg aue on such additional Bonds on the
next succeeding intereat payaent date ana one-twelfth of the principal of such addit-
ional. Bonds uturing during the next succeediDg twelve month period, if any and shall
provide that the quarterly deposits into the Reserve Fund sba11 be increased b;y an
amount equal to one-twentieth of the highest ann\1Al. prinoipal. and. interest requirements
of such aclditiouJ. Bonds until. the funds and investments in the Reserve Fund equia the
combined. highest annual principal and. interest payaeJllts on all Bonds and Parit,. Bonds
then outstanding and payable from the Bond Redemption Fun4, to be held as a reserve.
Whenever there is a deficienc,. in paJlllenta iDto the Reserve Fund or, whenever after
the initial accumulation of the full aJlount required to be accumulated therein, the
amount in said Reserve Fund. falls below such required accumulation, such deficiepc,. shall
be made up from the mone,. in the Income Account whenever and to the extent such-lioney is
not needed for payment of the Cost of Operation and Maintenance and for current principal.
and interest requirements, resardl.ee8 of the forego:i.Jag l.imitation on quarte;rJ.;y payuaellts.
.. The 1I0ney in the Bond Redemption Fund, _ and the aoney in the Reserve Fund when
necessary, shal;J. be applied to the payJllent of currently IIaturing principal and interest
without further instructions. The Depository and aDJ successor Depository sba1l. make
such arrangement with the payillg agent bank as will. assure prompt payment of mat~ng
Bonds and interest coupons when due to the extent of avai.lable funds.
~ That all money remaining in the Incolle Account each Sinking Fund Year after
&1.1 payments hereinabove required to be raade in such year have been IIade and after al.l
deficiencies existing from preViOUS years have been remedied sha1J. be regarded as
surplus and may be used by the City for the making of improvements or additions to the
System, for the creation of a special f\md to be acclIIIu1ated and applied to such purpose,
for the payment of principal of and interest falling due on general obl.igation bonds of
the City issued for water or sewer purposes", for the paYllent at principa1, interest and
redemption premiums on junior l.1en bonds 1s6ued for the makins of improvements apd ex-
tensions to the System, for the retirement of Bonds payable trom the Bond Redemption
FUnd in advance of maturity or tor any other lawful corporate pUrpose. Any such retire-
ments sO made prior to maturity may be made either through the purchase of Bonds on the
open market at the best price or prices obtainable not in excess of the lowest price at
which any Bonel& payab;Le from the Bond Redemption Fund are then red.emabl.e under their
.terms, or through the calling of Bonds for redemption pursuant to the right therein
reserved.
3.10 That all money held by the Depository in the Bond Redemption Fund, including
the Reserve Fund aboye created, shall be held as special and not general deposits; and
all. money hel.d in the Bond Redemption Fund, including the Reserve Fund, shall be held
as a special trust fund, the beneficial interest in which shall be in the holders from
tilDe to time of the Bonds outstanding. All money so. held in excess of the amount
guaranteed by the Federal Deposit Insurance Corporat1on ahal.l. be secured either (a) b,.
lodging with the trust department of t~ Depository or with some other depositoryapprowd
by the City, as collateral security, direct obligatioDS of or obligations, the principal
and interest of which areUDco~itionally guaranteed by the United states of America,
having a market value (eXClusive of accrued interest) at least equal to the amount of
suoh deposit, or (b) in such manner as may then be required by a11. appl.icabl.e state pr
Federal l.aws and regulations regarding the security for or granting preference ip the
caee of the deposit of trust funds.
Money in the Bond Redemption Fund required for the payment of prinCipal and. interest
shall at the request of the City be invested in direct obligations of the United states
of America maturing at l.eastten days prior to the date as of which principal or interest
falls due. MaDey held in the Rel5erve Fund portion of the Bond Redemption Fund shall. at
the request of the City be invested in direct obligations of the United states or any of
its agencies, or in obligations the principal. of and intereat on which are guaranteed by
the United States. It shall upt be necessary for the Depository to give security for the
depasi t of ~ lIoney which is SO invested. Obligations 80 purchased shall be de,emed at
all times to be a part of the fund for Which the obligations weTe purchased. Interest
accruing thereon and 8.111 profit real;i.zed frail such investments shall be paid intp the
Income Account. The Depository sba1l. eel.1 at prevailing market prices or shall. ~esent
for redemption an,. obligations SO purchased whenever it shall be necessary so to do in
order to provide mone," to meet any payment due frail the Bond Redemption Fund, including
the Reserve Fund..
~.lJ..
ORDINANCE NO. 283
~ll \fIhenever there is sufficient available money in the Bond Redemption Fund.
inclu ng the Reserve Fund, to retire all Bonds then outstanding on the next-interest
payment date, or to pay principal and interest to maturity, or applicable redemption
date, together with applicable redempt~on premiums, on all Bonds payable from the Bond
Redemption Fund r~maining outlStandih#5.'the money in the Bond Redemption Fund, in~1.uding
the Reserve Fund,' shall be used for such purpose and no additional payments need be made
into the Bond Redemption Fund or the Reserve Fund unless necessary to replace moneys
lost or otherwise dissipated.
3.12 Each monthly or quarterly payment required to be made pursuant to Sections
_-3.05 and 3.07 hereof aha1.1. be made on the first day of each e&1.endar month, except when
the first day of a month shall be a Sunday - or a legal. holiday, in which event the pay-
ment shaJ.l be ~de on the next succeeding secular day.
ARTICLE IV
COVENANTS AND UNDERTAKINGS
-The City covenants and agrees With the SUCcessive holders from time to time of the
Bonds and the coupons representing interest thereon, that so long as any of the Bonds I"
remain outstanding and upaid as to either principal or interest:
4.01 That the City will-maintain the System in good repair and working order and
wi1.1. 'Q'Perate it efficient1.,- and wi1.1 faithtul.ly and punctua1.l,- perform a1.1. duties with
reference to the System required by the Constitution and laws of the State of Idaho.
and, that it will make and collect sufficient rates and charges for water and sewer
service furnished by the System and villsegregateand apply the Revenues derived there-
from in the D1amLer provided in this ordiaance.
4.02 . That the City wi1.l fi.x and co1.1.ect rates, fees and charges for &1.1. water and
sewer service suppli.ed by the System fully sufficient, after making due allowance for
delinquencies in collection, to provide for the payment of the Cost of Operation and
- Maintenance, to provide for the payment of interest on and principal. of al.l ob1.igations
payable from the Net Revenues of the System"includiilg the Bonds herein authorized, as
and when the same become due, and to establish the Bond Redemption Fund, including the
Reserve Fund therefor hereinabove required.
4.03 That in order to assure adequate Revenues to effect maximum security o~ the
Bonds herein authorized and thereby reduce the rate of interest at which such Bonds may
be sold, so far as it may legally do so, the City will fix and collect rates, fees and
charges for all water and sewer service supplied by the System which will be fully
adequate and sufficient to make possible the prompt making of all payments herein-re-
quired to be made and vill produce in each SiDking Fund Year Net Revenues available for
principal and interest equal. to not 1.eaa than 1~25 times the amount required to pe paid
into the Bond Redemption fund for the paymentot principal of and interest on all Bonds
payable therefrolDin such Sinking Fwld Year..
4.04 That the City vill not permit free use or free water or sewer service from
the Sy;t;m to be given to the City or any department thereof or :to any person, firm or
- corporation, publd.c or private, or to any pub1.ic agenCy or instrumentality.
The reasouble cost and value of all water 'and sewer service rendered to the City,
and its various departments, by the System shall be charged against the City and will
be paid for as the service accrues from current funds of the City. All payments so
made shall be considered Revenues of the System and shall be applied in the manner here-
inabove provided for the application of the Revenues of the System.
4.05 ',' That the City will cause to be kept proper books of records and account,
separate and apart from all other records and accoU!l.ts of the City, in which there shall
be madeful1. and correct entries of all transactions rel.ating to the System. Such books
shall be kept in accordance with standard accounting practices and procedures customarily
used for Systems of similar nature. The City will cause such books to be audited anmially
by an independent certified public accountant or. firm of public accountants and will
annually within one hundred twenty (120) days a:f\er the close of each Fiscal Year File
with the Depository, a sufficient nUmber, but not less than ten, copies of said report I
accomPanied by a certificate by said accountant or firm. Each such audit, in addition
to whatever other matters may be thought proper by the accountant to be included there-
1.n, shal.l incl.ude the to1.1.owing:
1. A statement in detail of the income and expenditures of the System for such .
Fisca1 Year.
2. A balance sheet as of the end of such Fiscal. Year.
3. The accountant's comments regarding the manner in which the City has carried
out the requirements of this ordinance and the accountant'a recommendations for any
changes or improvements in the opell'atioD of the System.
4. A list of insurance policies andfidel:Ji'ty bonds in force at the end of the
Fiscal. Year. setting out as to each policy and. bond the amount of the policy, the risks
covered, the name of the insurer and the expiration date.
5. The number of metered water customerB of the System and the number of unmetered
water customers, if any.
6. The' umber of sewer customers of the City.
7. The amount of money in each of the fuDds and accounts enumerated in Article III
iereof at the beginning and at the end of the Fiscal. Year and the amount of money paid
into and expended from each of said funds during such Fiscal Year.
8. The total dollar amount billed for water and sewer service during the Fiscal
Year and the average monthly billing per customer for each class of service.
I
I'
OiDmANCE NO. 283
2.05
9. All schedules of rates and charges in effect during such Fiscal Year.
10. The nuberof gallons of water passing through the master meter in' such jear~
the nWBber ot gallons ot water used fJ,r nusl:li Jig maillS and fighting fires' and the number
ot gallons ot Water unaccounte!i for.
11. A general statement concerning any events or circumstances which might affect
the financial status of the System.
4.06 That all expenses incurred in the iIIaking of the aud! ts required herein shall
be regarded and paid as a Cost of Operation and Maintenance. . The City further agrees
to furnish a copy of each such audit to the original purchasers of the Bonde and to the
hol.der of any of the Bonds who shall request the same in writing, and that any such
holder of the Bonds shall have the right to discuss with the accountant making the audit
the contents of the audit and to ask for such additional information as he may reasonably
require. Bud books of record and account shall be open at aJ.l.reasonable times for,
inspection by the holder or holders of any of the Bonds or the duly authorized attorney
or agent for said bondholder during normalbl1#3iness hours.
4.07 That the City agrees to procure or' cause, to be procured, and maintain, so
long as any of the Bonds or Parity Bonds are outstanding, fire and extended coverage
insurance on a1.l phyaical properties of the System normall.;)" insured by public utility
companies engaged in the operation of a Water and Sewerage System, in amounts sufficient
to provide for nO,t less than full recovery whenever the loss from causes covered by in-
suraJic(t ':j.oes; Dot exceed ""1!'1ghtt p_~ aeit (8O-'tQt~~!1e, fUJ.l insurabJ.e vaJ.ue of the damaged
facilit,.~ Intheueven't of any damage to, -or the de-struction of any building or facility
constituting part of the System, the City Council shall forthwith reconstruct the damaged
_, or destroyed portion thereof, or shall replace an.y such building or facility with like
facilities of equal or greater capacity, and shall arrange for the application of the
proceeds of the 1nsurance for that purpose. .
The City also agrees to prooure or caUS&" to be procured, and maintain, so long as
any of the Bonds or Parity Bonds are outstanding, public liability insurance with
limitations ot not less than 1100,000 for One person and $300,000 for more than one
person involved in ODe accident to protect the City from claims for bodily injury and
. death, or both, which may arise from the operations of the System, or any other facUi-
ties ,owned by the City the Revenues of which are pledged to the payment of the Bonds.
The City also agrees to procur. or cause to be procured and maintain, so long as
.any of the Bonds or Parity Bonds are outstanding, 'Yehicular public liabiJ.ity 1nsUrance
with J.imits of not less than 1100,000 for one person and 1300,000 for more than one
person invoJ.ved in ODe accident to prckect the Cit7 !roa claims for bodily injury and
death, or both, which illay arise trom the operation by the city employees of vehicles
owned by the C1 ty and non-owned vehicles operated tor the beneti t of the C1 ty.
4.08 That the City shal.l not seJ.J., J.ease, encumber, alienate or in any manner
dispose of the System or any substantial part thereof untU all of the BondS have beeD.
paid in f'u1l as to both principal. and interest; provided, that this covenant shalJ.'not
be eonstured to prevent the disposal by the City ot property which in its judgment has
become inexpedient to use in connection with the S;rstea, when other property' of equal
.value 1s substituted therefor.
~ That the, City will commence and complete the construction of the improvements
and extensions to the combined inmicipa1 Water System and municipal Sewerage System for
which the Bonds herein authorized are issued with all practical dispatch and will cause
all construction to be effected in sound and economical manner.
4.10 That the City will from time to time duly pay and discharge or cause to be
paid 8iid"'"discharg~d all taxes, assesaents and other goverDllental charges, if any,
lawfully imposed upon the System or any part thereof or upon the Revenues, as well as
any 'lawful claims, for labor, materials or supplies which if unpaid might by J.aw become
a lien or charge upon the System or the Revenues or aDJ part thereot or which might
impair the security of tke Bonds.
4.11 That the City will not hereatter permit nor grant a franchise for the
operat'iOii of any competing Water System or aDy competing Sewerage System in the City.
4.12 'That the City in order to assure the efficient management and operation of
the System and to assure the holders flam tille to tiile of the Bonds that same 'will be
operated on so1U1d business prinCiples, will_ploy competent and experienced management
for the System, will use its best efforts to see that the System is at all times oper-
ated and maintained in first class repair and condition ani in such manner that the
operati..ug efficiency thereof shall be of the highest character, and w:UJ. use its best
efforts to see that the cost of sUch operation aad maintellaJice is at no time in excess
of the Revenues reasoubly available for the paJIIent'thereof.
4.13 That the holders of the Bonds from tiIIe to time shalJ. be entitJ.ed to exer-
cise all rights and powers for which provision is Mde in the Revenue Bond Act; t _inclucl-
i118 spec:l.fica117, if eAy of the Bollds shall be perlllitted to default as' to princi.pal
or interest, the right to appl,. to a court of competent jurisdiction to appoint a
receiver for the System who may enter 'and take possession of the System, operate, and
maintain the System, and prescribe charges and col.lect, receive and appl.y the Revenues
arising therefrom in such manner as the court may direct and as will assure the carrying
out of all the covenants contained in this ordinance. Such receiver shall be appointed
only when request for such appointment shall have been made by the holders of not less
than forty per cent in principal amount of the Bonds which are then outstanding, or by
a trustee acting in behalf ot the holders of such percentage of Bonds, and such request
shall be represented by a written instrument or concurrent written instruments signed
by such holders and tiled with the application for the appointment of such receiver.
ORDINANCE NO. 283
4.14 That the Bonds shall enjoy complete priority of lien on the Revenues and ~hat the
~ity will issue no other Bonds or obligations of a:ay kind or nature payable from or
enjoying a liel'I'. on the ReTenues unless such other bonds or obligations are made su~
ordinate to the Bonds herein authorized; provided,o however, that additional Parity Bonds
may be authorized by ordinance of the City Counc:il. and :issued on a parity with ,the Bonds
herein authorized if all of the following conditions are met:
A. (1) The City Clerk files a certificate with the Depository certifying that the
City is in full. compliance with all of the covenants and undertakings in connection with
all Bonds and Parity Bonds of the City then outstanding and payable from the Net Revenues
of the System or any portion thereof.
(2) The Net Revenues of the System for the last complete Fiscal Year next pre-
ceding the adoption by the City Council of the City of the ordinance authorizing the
issu~ce and confirming the sal.e of the additional Parity Bonds, as shown by an audit
rendered by an independent public accountant employed by the City, when added to the
estimated amount of the incr,ease in the .et Revenues for the first full Fiscal Year in
which the improvements, extensions, additions or betterments to the System to be acquired
with the proceeds of the additional Parity Bonds will be in operation (such estimate to
be eVidenced by a certificate of an independent consUlting engineer of recognized skill l_
and experience in the field of waterworks and sanitary engineering,- which certificate
- shall be approved by the Mayor and by reolution of the Oi ty Council), are equal to at
least 1.25 times the highest annua1 debt service- on all Bonds and Parity Bonds then
outstanding and payable from the Bond Fund and on the additional Parity Bond& then
proposed to be issued.
(3) Such additional Parity Bonds maybe issued only for the purpose of improv-
ing the System, or for the purpose of acquiring, constructing or providing extensions,
additions or betterments to the System.
(4,) The ordinance authorizing the issuance of such additional Parity Bonds
shall provide that the last matUrity date of the additional. Parity Bonds shall. not be
earlier than the last maturity date of any Bonds theretofore issued and then outstand-
ing payable from the Bond Fund and shall provide for fixed serial maturities or manda-
tory min:imum sinking fund payments, or any combination thereof', in such, amounts as will
be sufficient to provide for the payment or retirement of all such additional Parity
Bonds on or before their respective maturity dates.
(5) The payments required to. be made into the various funds and accounts pro-
vided in Article III hereof must be current and it is agreed and understood that the
fUll amounts required hereunder or in any 1'u.ture ordinance to be accumu1.ated iil tile
Reserve Fund need not have been accumulated at the time of the issuance. of such Parity
Bonds, if all required' quarterly deposits thereinto shall have been made and are current.
(6) The additional Parity Bonds must be payable as to principal on October 1 of
each year in which principal and interest falls due and payable as to interest on
April 1 and October 1 of each-year.
(7) The proceedings authorizing the issuance of the additional Parity Bonds
must provide that the amount to which the Reserve Fund is to be accumulated be increased
to an amount at l.east equal. ;to the combined highest annual principal and interest pay_
ments on all Bonds then outstanding and payable from the Bond Fund, including the addi-
tional Parity Bonds so proposed to be issued, within five years from and after the
delivery of the additional Parity Bonds. .
B. The Bonds (including Parity Bonds) or any part thereof may be refunded with the
coneent of the hol.dars thereof (except that as to maturing Bonds or Bonds which.. are then
optional for, redemption and have been properly called for redemption, such consent shall
not be necessary) and the refunding bonds so issued shall enjoy complete equality of lien
with the portion of the Bonds which is not refunded, if any there be, and the refundiD.g
bonds shall continue to enjoy whatever priority of lien over subsequent issues that may
have been enjoyed by the Bonds refunded, but no refunding bond may mature on a date
earlier or bear interest at a rate higher than the corresponding Bond refunded thereby
without the consent of the holders of the unrefunded portion of the Bonds then outstanding. I'
4.15 That the City shall bill each customer receiving both water and sewer service
from the City in a single bill, will refuse to accept payment for either service unless
payment for the other service is also made, and if payment for either service is per-
mitted to become delinquent and remain so for a period of sixty days~ will discontinue
the service of water to any premises the owner or occupant of which shall be so delin~
quant, and will. not recommence the supply of water to such premises until all delinquent
charges With penalties shall have been paid in full. The City will do all things and
exercise all remedies legally available to assure the prompt payment of charges for all.
service supplied by the System.
4.16 That the City will require the ower, tenant or occupant of each lot or
parcel. of l.and in the City upon which a buil.ding shal.l have been constructed for resi-
dential, commercial or industrial usa within 300 feet, measured along an accessible
route, of any sanitary sewer line to connect such building with the sewage collection
system of said City and to cease to use any other method for the disposal of sanitary
or industrial sewage. If within a period of 15 days after the owner of any such lot or
parcel shallove beam notified to make such sewer'connection, such connection is not
made, the City will discontinue the service of water to such lot or parcel and will not
recommence supplying water thereto until such sewer connection shall have been made.
~
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ORDINANCE NO. 283
207
4.17 That in addition to' all other, rights enjoyed by the holders ot the Bonds,
such holders shall haTe the right by mandamus or other appropriate suit or action iJ:J.
any court ot _ competent jurisdiction to enforce his or their rights ae;ainst theCi ty,
the governing b~y thereof, and any officers, officials and agents thereof, including,
but without limitation, the right to require the City and. its governing body to fix
and collect rates and charges ~ly adequate to carry out all of the provisions and
agreements contained in this ordi~ence.
- ~ That all paymente falling due on the Boacla for principal and interest
shall be made to the holders thereof at par and all charges made by the Depository
and arr:I paying agent bank shall be paid by the City.
4.19 That prior to the delivery of the Bonds, the City shall have adopted an
ordinance establishing schedule of rates and charges to be imposed for water and
sewer service rendered by the System.
Said schedule of charges shall be considered a lIIinimum while any of the Bonds
remain outstanding, and shall be subject to SU9h inorease from time to tille as may
be necessary to pe1"lllit f'ul.1 comp11aace with all of' the provisions and requirements
- of this 'ordinance, but ehal.l be subject to reduction only when and to the extent that
the Revenues available for payment into the Bond Redemption FUnd in each of the two
immediately preceding Fiscal Years shall have, exceeded one and one-half times the
total prinCipal and interest payable from said fund during each such re,pectiTe pre-
ceding Fiscal Year.
ARTICLE V
SALE OF BONDS AND APPLICATION OF PROCEEDS
, 5.01 That the sale of the Bonds herein author:i.zed to Miller-Schroeder Municipals,
lilc.,-of MinneapOlis, Minnesota, and associates, at the price of par and accrued-
interest to the date of delivery and a premium of S ;.;.0- ' is hereby in all respects
ratified and confirmed. Said Boads shall be printed and executed as soon as may be
and thereupon sball be delivered to the aforementioned purchaser upon receipt'bythe
Treasurer of the City of Meridian of the agreed purohase price.
- 5~02 ,That so much of the proceeds of the ea.le, of, the Bonds as represents accrued
interest shall be paid into the Bond Fund. The remainder, of the proceeds of the sale
of the 50nds not required to pay expenses acident to the issuance of the Bonda which
are payable at the time of the delivery of the Bonds, shall be paid into,a separate
fund to be used, together with state and Federal grants available for'the purpose, for
the payment of the cost of constructing the improTements and extensions to the 51stem
for which the Bonds are issued. The tmoney in such fund shall be held in the hands of
Farmers & Merc:hants State Bank, in Meridian. Idaho, in a separate account thercd.n to
be known as the nCity of Meridian Joint Water and. Sewer System Construction Accountn
(hereinafter sometimes referred to as the "Construction Account"). The funds in the
Construction Account shall be held and paid out sole11 for the purpose for which the
Bonds are hereiD. authorized and until so paid shall be subject to a lien and charge in
faTor of the holders of the Bonds berein authorized outstanding at any time andahaJ.l
be held for the further securitl of such holders until sO paid out. The money in the
Construction Account to be used for the payment of the cost of constructing the afore-
said improvements and extensions to the System shaJ.l be withdrawn from the Construction
Account from time to time by the Treasurer of the City onll upon submission to him of
the follow:i.Dg: _
(a) A requisition signed by the Public Works Superintendent stating specifically
the purpose for which the req14aition is issued and. indicating that the payment for
which the requisition 1s issued bas been approved bl the City CounCil; and
(b) "Each requisition for withdrawal of funds by the Public Works Superintendent
for payment to a contractor or contractors for work done in connection with the
construction of improvements and extensions to the System shall aleo be accompanied
by a certificate executed by the engineer in charge of construction stating the
nature of the work completed and the amount due and payal;lle thereon.
Monels in the Construction Account shall be secured by the bank holding the same
in the manner prescribed by law for the securiDg of public funds. If moneys on
deposit in the Construction Account exceed the estimated construction disbursements
for the next sixty (6Q) days. t~e City Treaf;lurer may invest, or cause to be invested,
such excess funds in direct obligations of, or obligations the principa.1 of and
interest on whioh are guaranteed by, the United States Government, which shall mature
not later than 18 months after the date of such investment and which shall Qe subject
to redemption at any time by the holder thereof. The earnings from any such invest-
ment shall be deposited into the Construction.Account. After all construction costs
have been paid, the engineer in charge of.the same shall certify to the City that the
construotion bas been completed according to said plans and speCifications, and'upon
'approval of the completion of the work based upon the engineer's certifiCate by the
City and after all C05tS have been paid, the sngineer 6hall execute a 'certiticateand
file it with the bank holding the Construction Account certifying that the construction
has been completed in accordance with the plans and specifications ,and that all costs
. have been paid. .'
~ That the principal proceeds of the sale of said Bonds shall be devoted to
and used with due diligence for the completion of. the construction of improvements and
extensions to the System for which said Bonds are hereby authorized to be issued.
.
After the construction of the improvements ana extensions to the System shall have been
completed. any money remaining in the Construction Account from the proceeds of the sale
of Bonds herein authorized or from a:n.y earnings on investments, after all costs sha1l
have been paid or reserved. shall be deposited into the Reserve Fund.
ass
ORDINANCE NO. 283
The City represents and certifies that:
(1) the City ha.e heretofore incurred or, within six months after delivery-of the
Bonds expects to incur, substantial binding obligations with respect to said
construction; said binding obligations ,comprising a contract with J-U-B E@gineers,
Inc.,-for the design and supervision of the sewer and" water system in the amount of
not les6 than 1100,000;
(2) the City expects that over 8~ of the spendable proceeds of said Bonds
(including investment proceeds) will be expended on or before October 1, 1978, for
the-:_Il'llrpgse-'of paying the cost of said construction, said date being within three
years -following the date of issue of said Bonds;
(3) work on the said construction is expected to proceed with due diligence to
completion;
(4) said System has not been and is not expected to be sold or otherwise disposed
of in whole or in part prior to the last maturity of said Bonds;
(5) all of the principal proceeds of the Bonds are needed for the purposes stated
in the fonn of Bond above set out, including the expenses incidental. to such purpose
and to the issuance of the Bonds; and
(6) to the best of the knowledge and belief of the City there are no facts, esti-
mates or circWnstances that wou.1d materially- change the conclusions and repre-
sentations set out in this section.
The City- also certifies and further covenants with the purcha~er5 and ho~der5 ot
said Bonds from time to time outstanding that so long as any- of said Bonds remain out-
standing, moneys on deposit in any fund or account in connection with said Bonds,
whether or not such moneys were derived from the proceeds of the sale of said Bonds or
from any other sources, will not be used in a manner which willc-ause such Bonds to be
"arbitrage bonds" within- the meardng at Section 103(d) of the Internal Revenue_ Code of
, 1954, as _amended, and any lawful regu~ations promulga~ed or proposed thereunder,. includ-
ing Sections 1.103-13 and 1.l03~14 of the Income Tax Regulations (26 CFR Part 1), as
the same presently exist, or may from time to time hereafter b~ amended, supplemented or
revised. The City reserves the right, hqwever, to make any investment of such moneys
permitted by etate law. if, when and to the extent that" said Section 103(d) or regulations
promulgated thereunder shall be repealed or relued or shall be held void by ftnal dec1s:iDn
of a court of competent jurisdiction, but oJ31Y if any investment made by "firtueof such
repeal, relaxat1.on or decision wou1d not, 1.n the opinion of counsel of recognized com-
petence in such matters, result in making the interest on said Bonds subject to Federal
income taxation.
I
ARTICLE VI
MODIFICATION
6.01 That the provisions of this ordinance shallcconstitute a contract between
the City and the holders from time to time of the Bonds (including Parity Bonds) and
after the issuance of any of the Bonds, no change, var:iation or a1teration of a:1J::/ ld.nd
in the provisions in this ordinance may be made except as follows.
6.02 That the holders of seventy-five per cent in principal amount of the Bonds
at anY""time outstanding (not includ1.ng in any case any Bonds which may then be held or
owned by or for the account of the City, but including such refunding bonds as may be
-issued for the purpose of refunding any of the Bonds and are not owned by the City) sha11
have the right from time to.time to consent to and approve the adoption by the City of an
ordinance or ordinances modifying. or am_ding any of the terms or provisions contained in
this ordinance:;~ provided, however, that th1.s ordinance may not be so" mod.1.fied or amended
in such manner as to:
(a) Make any challge . in the maturity of the Bonds.
(b) Make any change in the rate of interest borne by 811y.of the Bonds.
(c) Reduce the amount of the principal or redemption premiums payable on the Bonds.
(d) Modify the terms of paJ'lllent of principal or of iritere15t or _ of redemption
premiums on the Bonds or any of them or impose any oonditions with respeot to such pa;yment.
(e) Affect the rights of the holders of fewer than all of the Bonds then outstanding.l.
(f) Amend this Article.
6.03 That whenever the City shall propose to amend or modify this ordinance under
the provisions of tMs Article, it shaJ.i cause notice of thepropoeed amendment to be
published one time "in a financial newspaper or journal published in the City of New
York, New York, San Francisco, California, or Chicago, Illinois, and on or before the
date of suah pub~ication the City shall cause to be mailed a copy of suoh notice to the
registered holders of any of the Bonds arid. Pari ty "Bonds which are then registered as to
principal. Such notice shall briefiy set forth the nature of the proposed 8Dlendment
and shall .state that a copy of the proposed amendatory ordinance is OD file in the office
of the City Clerk for public inspection.
6.04 That whenever at any time within one year from the date of the publication of said
. nOtice .tbere shall be filed in the- office of said Clerk an instrumeiltat instrumem ts emcu~tllby' tm hrilderi30f at least
seventyo..fLveP:~~n aggregate tlrincipal amount of the Bonds then outstanding as in this Article
definea, which instrument or instruments shall refer to the proposed amendatory ordinanoe.
described in said notice and shall specifically consent to and approve the adoption
thereof, thereupon, but not otherwise, the City Counoil may adopt such amendatory ordinance
and such ordinance shall , become effective.
.. If the holders of at least seventy-five per cent in aggregate principal amount of
the Bonds as in'this Article defined, at the time of the adoption of such amendatory
ordinance, or the predecessors in title of such holders, shall have consented to and
I
I
...=.--"
ORDIDNCE NO. 283
209
approved the adoption thereof as herein provided, no holder of any Bond whether or not
such holder shall have consented to or shall have -revoked any consent as in this
Article ~ov1ded ~ have any right or interest to object to the adoption of such
amendatory ordinance" or to object to any of the terms or provisions therein contained
or to the operation thereof or to enjoin or restrain the City from taking any action
pursuant to the provisions thereof.
6.05 That any consent given by the holder of a Bond pursuant to the provisions
or this Article shal1be irrevocable for a period of six months from the date of the
publication of the notice above provided for and shall be conclusive and binding
upon all future holders of the same Bond during such period. Such consent ltay be
revoked at any time after six months from the date oftbe publication of such notice
by the holder who gave such consent or by a successor in title by filing notice of
such revocation with said City Clerk, but such revocation shall not be effective if
the holders of seventy-five per cent in aggregate principal amount of the Bonds out-
standing as in this Article defined bave Prior to the attempted revocation consented
to-~~'an.Q,oapIj~",ov~.d the amendatory ordinance referred to in such revocation.
The fact and date of the executipn of any instrument under the provisions of this
Article may be proved by the certificate of any officer in any jurisdiction who by lawe
thereof is authorized to take acknowledgments of deeds within such jurisdiction, that
the person signing such instrument acknowledged before him the execution thereof, or
may be proved by any affidavit of a witness to such execution sworn to before such
officer. As to any Bonds registered as to" principal, the ownership thereof for purposes
.. of this Article shall be established by the Registrar's registration books. As to any
Bonds not so registered, the amount and numbers of the Bonds held by any person execut-
ing such instrument and the date of his holding the same may be proved by a certificate
executed by any responsible bank or trust company showing that on the date therein
mentioned such person had on deposit with such bank or trust company the bonds described
in such certificate. ~ ,
ARTICLE VII
MISCELLANIDUS
7.01 That immediately after theissU&Dce of the Bonds herein authorized, a certi-
fied copy of this ordinance shall be filed b7 the City Clerk with the Depository,
together with the certificate by the City Clerk that such Bond& have been so issued and
are outstanding.
7.02 That if anyone or more provisions, clauses, paragraphs, sections or articles
of this ordinance or the application thereof to any Bet of circumstances shall be held
to be invalid for any reason, such holding shall not affect the validity or enforceability
of the remAi ni ng provisions, clauses, paragraphs, section. and articles hereof, nor the
application thereof to other sets of circumstances.' 0
~ That the Mayor and City Council and the City of Meridian, in consideration of
the purchase of" sa:i.d Bonds by the aforesaid purchasers, hereby covenant and agree with
the holders of the Bonds from time to time, that neither the City nor the Mayor and
City Council of said City will e:ver waive, or agree to waive, as to the March 11, 1975
bond election, the time limitation provisions of subsection B of Section 34-200lA of the
Idaho Code.
7.04 That all ordinances or parts thereof in conflict herewith are.to'~.he extent
of such conflict hereby repealed, and that this ordinance shall be publi:she-d ih-J?ne
issue of the Valley News-Times, the official journal of said City, and~l: take~~:!ffect
and be in full torce immecliately upon its passage, approval and pub],ication. '~>._:-:"'~
1&22 ~t an emergency existing therefor, which emergency is :hereby--ae-clare_a~~
exist, this ordiDance shall be in full force and effect immediately upo:q,i~.-adoptio~
and approval. ," , ~ ~:
PASSED AND APPROVED this 28th day of October, 1975. - .",
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