HomeMy WebLinkAboutOrd.304.03-05-1986 ^ BILL N0 . 86-19 ORDINANCE N0. 304
ORDINANCE AUTHORIZING THE ISSUANCE OF
$1 , 400, 000 PRINCIPAL AMOUNT OF SEWERAGE
SYSTEM REVENUE BONDS, SERIES 1986 , OF THE
CITY OF CAPE GIRARDEAU, MISSOURI , FOR TNE
PURPOSE OF PROVIDING FUNDS FOR IMPROVING TNE
CITY ' S SANITARY SEWER SYSTEM INCLUDING FUNDS
TO CONSTRUCT A SANITARY INTERCEPTOR SEWER
�INE FROM APPROXIMATELY COMMERCIAL STREET
BETWEEN BLOOMFIELD ROAD AND WALNUT STREET
GENERALLY ALONG CAPE LACROIX CREEK TO THE
HAWTHORNE PUMP STATION, TO CONSTRUCT A
SANITARY SEWER LINE FROM THE NEW CAPE
LACROIX CREEK INTERCEPTOR TO THE RODNEY
TRUNK, TO CONSTRUC7 A TRUNK RELIEF SANITARY
SEWER IINE FROM THEMIS STREET TO KINGSWAY
DRIVE AND TO MAKE REPAIRS AT THE CITY ' S
WA5TEWATER TREATMENT PLANT; PRESCRIBING THE
FORM AND DETAILS OF SAID REVENUE BONDS AND
THE COVENANTS AND AGREEMENTS MADE BY THE
CITY TO FACILITATE AND PROTECT THE PAYMENT
THEREOF; AND PROVIDING FOR THE COLLECTION,
SEGREGATION AND APPLICATION OF THE REVENUES
� OF THE SEWERAGE SYSTEM OF THE CTTY FOR TNE
PURPOSE OF PAYING 7HE COST OF OPERATION AND
MAINTENANCE OF SAID SYSTEM, PAYING THE
PRINCIPAL OF AND INTEREST ON SAID REVENUE
BONDS, AND PROVIDING REASONABI_E AND ADEQUATE
RESERUE FUNDS .
WHEREAS, the City of Cape Girardeau , Missouri ( the
"City" ) , a municipal corporation and constitutional charter
city operating under a home rule form of go��rnment duly
created , organized and existing under the la�s of the State of
Missouri , no� o�ns and operates a re��nue producing Se��rage
System ser�ing the City and its inhabitants and desires to make
extensions and impro�ements to said syst�m (the "Syst�m" , as
hereinafter more fully defined) ; and
WHEREAS, the City is authorized under the pro�isions
of Sections 250 . 010 to 250 . 250, inclusiue , Missouri Re�ised
Statutes , as amended (the "Act" ) , to issue and sell re�enue
bonds for the purpose of paying all or part of the cost of
extending and impro�ing the System, prouided that the cost of
operation and maintenance thereof and the principal of and
int�rest on such reuenue bonds shall b� payable solely from the
reuenues deriued by the City from the operation of the System;
�-�,
and
WHEREAS, pursuant to the authority of the Act, a �
special election was duly held in the City on Tuesday, June 4,
1985, for the purpose of submitting to the qualified electors
of the City the question whether to issue the Sewerage System
re�enue bonds of the City in an amount up to $1 , 900,000 for the
purpose of pro�iding funds for impro�ing the City ' s sanitary
se�er system including funds to construct a sanitary
interceptor se�er line from east of High�ay 61 North generally
along Cape LaCroix Creek to the Hawthorne Pump Station, to
construct a sanitary se�er line from the ne� Cape LaCroix Creek
Interceptor to the Rodney Trunk , to construct a trunk relief
sanitary se�er line from Themis Street to Kings�ay Driue and to
make repairs at the City ' s Waste�ater Treatment Plant, the cost
of operation and maintenance of said System and the principal
of and interest on said re�enue bonds to be payable solely from
the reuenues deri�ed by the City from the op�ration of its
Se�erage System, including all future extensions and
improuements thereto, and it was found and determined that more
than a majority of the qualified electors of the City �oting on
the question had �oted in favor of the issuance of said re�enue
bonds for the purpose aforesaid , the �ote on said question
hauing been 1711 �otes for said question to 1683 uotes against
said question; and
WNEREAS, the go�erning body of the City has caused
plans and specifications for said extensions and impro�ements �,
and an estimate of the cost thereof to be made by the City ' s
Consulting Engineer and the same are hereby accepted and
appro�ed and are on file in the office of the City Clerk , the
amount of said �stimat�d cost being not less than $1 , 400, 000;
and
WHEREAS, none of the bonds so authorized by the uoters
of the City haue heretofore b�en issued , and it is hereby found
and determined that it is necessary that the City issue and
deli�er forth�ith its Se�erage System re�enu� bonds in the
principal amount of $1 , 400, 000 as herein prouided ; and
WHEREAS, the City does not haue outstanding any other
bonds or other obligations payable from the reuenues deriued by
the City from the operation of the System;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE
CYTY OF CAPE GIRARDEAU , MISSOURI , AS FOLLOWS :
ARTICLE I
DEFINITIONS
Section 101 . Definitions of Words and Terms . In
addition to words and terms defined else�here in this �
Ordinance , the following words and terms as used in this
Ordinance shall ha�e the follo�ing meanings :
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�
ARTICLE II
AUTNORIZATION OF BONDS
Section 201 . Authorization of Bonds . There is hereby
authorized and directed to be issued a series of Sewerage
System Re�enue Bonds , Series 1986 , of the City in the principal
amount of $1 , 400, 000 (the "Bonds " ) for the purpose of pro�iding
funds for impro�ing the City ' s sanitary se�er system including
funds to construct a sanitary interceptor sewer line from
approximately Commercial Stre.et bet�een Bloomfield Road and
Walnut Street generally along Cape LaCroix Creek to the
Ha�thorne Pump Station, to construct a sanitary seu�er line from
the ne� Cape LaCroix Cr�ek Interceptor to th� Rodney Trunk , to
construct a trunk relief sanitary se�er line from Themis Street
to Kingsway Driue and to make repairs at the City ' s Waste�ater
Treatment Plant, as pro�ided in this Ordinance .
Section 202 . S�curity for Bonds . Th� Bonds shall be
special obligations of the City payable solely from, and
secured as to the payment of principal and interest by a pledge
of, the reuenues deri�ed by the City from the operation of the
System, including re�enues deri��d from extensions and
impro�ements to the System hereafter constructed or acquired by
the City , and the taxing po�er of the City is not pledg�d to ,,,�
the payment of the Bonds either as to principal or interest .
The Bonds shall not be or constitute a general obligation of
the City , nor shall they constitute an indebtedness of the City
within the m�aning of any constitutional , statutory or charter
pro�ision, limitation or restriction .
Section 203 . Description of Bonds . The Bonds shall
consist of fully registere.d Bonds �ithout coupons , numbered
from R-1 consecutiuely up�ard in order of issuanc� , in the
denornination of $5, 000 or any integral multiple thereof . The
Bonds shall be substantially in th� form set forth in
Section 401 hereof, and shall be subject to registration,
transfer and exchange as pro�ided in S�ction 206 hereof. The
Bonds shall be dated March 1 , 1986 , shall become due serially
on March 1 in th� years (subject to r�demption prior to
maturity as pro�ided in Article III hereof) , and shall bear
interest at the rates p�r annum, as follo�s :
Maturity Principal Annual Rate
March 1 Amount of Interest
1987 $ 25 , 000 °,6
1988 25 , 000
1989 30, 000
1990 30, 000
1991 35 , 000 ,^
1992 40, 000
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"Act" means Sections 250. 010 to 250 . 250, inclusi�e , of
� the Re�ised Statutes of Missouri , as amended .
"Bond Reser�e Account" means the Reser�e Account for
Sewerage System Re�enue Bonds , Series 1986 , created by Section
501 of this Ordinance .
"Bonds" means the Sewerage System Re�enue Bonds ,
Series 1986 , of the City, in the aggregate principal amount of
$1 , 400, 000, authorized and issued pursuant to this Ordinance .
"City" m�ans the City of Cape Girardeau , Missouri , and
any successors or assigns .
"Construction Account" means the Se�erage System
Construction Account created by Section 501 of this Ordinance .
"Consulting Enginecr" means an independent engineer or
engineering firm, having a reputation for skill and experience
in the construction and operation of public utilities , at the
time employed by the City for the purpose of carrying out the
duties imposed on the Consulting Engineer by this Ordinance .
"Op�ration and Maintenance Account" m�ans th� Se�erage
System Operation and Maintenance Account created by SFction 501
of this Ordinance .
.�
"Ordinance" means this Ordinance as from time to time
am�nded in accordance �ith the terms h�reo� .
" Paying Agent and Bond Registrar" means The Boatmen ' s
National Bank of St . Louis , in the City of St . Louis , Missouri ,
and its successors and assigns .
"Principal and Interest Account" rneans the Principal
and Interest Account for S��verag� System Reuenue Bonds , Series
1986 , created by Section 501 of this Ordinance .
" Record Date" means the 15th day (�hethe.r or not a
business day) of the calendar month next preceding an interest
payment date .
" Re�enue Fund" means thF Se�erage System Re�enue Fund
cr�at�d by S�ction 501 of this Ordinanc� .
"System" means the entire se�erage plant and system
owned and operated by the City for the collection, treatment
and disposal of se�age, to ser�e the ne�ds of the City and its
inhabitants and others , including all appurtenances and
facilities connected there�ith or relating thereto, together
with all extensions , impro�ements , additions and enlarg�ments
, thereto hereafter made or acquired by thF City .
—3—
^ 1993 45, 000
1994 50, 000
1995 50, 000
1996 60, 000
1997 65,000
1998 70, 000
1999 75, 000
2000 85, 000
2001 95,000
2002 100, 000
2003 110, 000
2004 125,000
2005 135, 000
2006 150, 000
The Bonds shall bear interest at the rates aforesaid
(computed on the basis of a 360-d�y y�ar of t�el�e 30-day
months) from the date thereof or from the most recent interest
payment date to which interest has been paid or duly pro�ided
for, payable semiannually on March 1 and September 1 in each
year, b�ginning on September 1 , 1986 .
Section 204. Designation of Pavinq Aqent and Bond
Reqistrar . The Boatmen ' s National Bank of St . Louis in the
^ City of St . Louis , Missouri , is hereby designated as the City ' s
paying agent for the paym�nt of principal of, redemption
premium, if any , and interest on the Bonds , and bond registrar
�ith respect to the r�gistration , transfer and exchange of
Bonds (herein called the " Paying Agent and Bond Registrar" ) .
Section 205 . Method and Place of Payment of Bonds .
The principal of, redemption premium, if any , and interest on
the Bonds shall be payable in la�ful money of the United States
of America .
The principal of and rFdempti.on premium, if any , on
each Bund shall be paid at maturity or upon earlier redemption
to the person in �hose name such Bond is registered at the
maturity or red�mption dat� ther�of, upon presentation and
surrender of such Bond at the principal office of the Paying
Agent and Bond R�gistrar .
The interest payable on each Bond on any interest
paym�nt date shall be paid by check or draft mailed by the
Paying Agent and Bond Registrar to the person in �hose name
such Bond is r�gister�d at the clos� of business on the R�cord
Date for such interest .
The Paying Agent and Bond Registrar shall keep in its
office a r�cord of paym�nt of principal of, red�mption pr�mium,
^ if any , and interest on all Bonds .
-5-
�ection 206 . Reqistration, Transfer and Exchanae of �
Bonds . The City co�enants that it will, as long as any of the
Bonds remain outstanding , cause to be kept at the office of the
Paying Agent and Bond Registrar books for the registration,
transfer and exchange of Bonds as herein pro�ided . Each Bond
when issued shall be registered in the name of the owner
thereof on the registration books kept by the Paying Agent and
Bond Registrar .
Bonds may be transferred and exchanged only upon the
registraion books maintained by the Paying Agent and Bond
Registrar as pro�ided in this Section .
Upon surrender thereof at the principal office of the
Paying Agent and Bond Registrar, the Paying Agent and Bond
Registrar shall transfer or exchange any Bond for a new Bond or
Bonds in any authorized denomination of the same maturity and
in the same aggr�gate principal amount as the Bond �hich �as
presented for transfer or exchange . All Bonds presented for
transfer or exchange shall b� accompanied by a �ritten
instrument or instruments of transfer or authorization for
exchange, in a form and with guarant�e of signature
satisfactory to the Paying Agent and Bond Registrar, duly
executed by the registered o�ner thereof or by the registered
o�ner ' s duly authorized agent . All Bonds presented for
transfer or exchange shall be surr�ndered to the Paying Agent
and Bond Registrar for cancellation . `"�
In all cases in �hich the pri�ilege of transferring or
exchanging Bonds is exercised, the Paying Agent and Bond
R�gistrar shall auth�nticate and deli�er Bonds in accordance
�ith the pro�isions of this Ordinance . The City shall pay the
fees and expenses of the Paying Agent and Bond R�gistrar for
the registration, transfer and exchange of Bonds prouided far
by this Ordinance and the cost of printing a r�asonable supply
of registered bond blanks , Any additional costs or fees that
might be incurr�d in the secondary market, other than fees of
the Paying Agent and Bond Registrar, are the responsibility of
the bondholders .
The City and the Paying Agent and Bond Registrar may
d�em and tr�at the person in �hos� name any Bond shall be
registered as the absolute owner of such Bond , �hether such
Bond shall be o�erdue or not, for the purpose of recei�ing
payment of, or on account of, the principal of, redemption
premium, if any , and inter�st on said Bond and for all other
purposes , and all such payments so made to any such registered
o�ner or upon the registered o�ner ' s order shall be valid and
effectual to satisfy and discharge the liability upon such Bond
to the extent of the sum or sums so paid, and neither the City
nor the Paying Agent and Bond Registrar shall be affected by
any notice to the contrary , but such registration may be �
changed as herein prouided .
—6—
^ Section 207 . Execution, Authentication and DeliuFrv
of Bonds . Each of the Bonds , including any Bond issued in
exchange or as substitution for the Bonds initially deli�ered ,
shall be signed by the manual or facsimile signature of the
Mayor, attested by the manual or facsimile signature of the
City Clerk and shall ha�e the official seal of the City affixed
thereto or imprinted thereon . In case any officer �hose
signature or facsimile thereof appears on any Bonds shall cease
to be such officer before the delivery of such Bonds , such
signature or facsimile thereof shall ne�ertheless be valid and
sufficient for all purposes , the same as if such person had
remained in office until deli�ery . Any Bond may be sign�d by
such persons who at the actual time of the execution of such
Bond shall be the proper officers to sign such Bond although at
the date of such Bond such persons may not ha�e been such
officers .
The Mayor and City Clerk are hFreby authorized and
directed to pr�par� and �x�cute th� Bonds as hereinb�fore
specified , and when duly executed, to deli�er the Bonds to the
Paying Agent and Bond R�gistrar for authentication . Upon
authentication, the Paying Agent and Bond Registrar shall
deliuer the Bonds to
, , the original purchaser of the Bonds ,
upon payment of the purchas� price of 100°� of the principal
,�►, amount thereof plus accrued interest thereon to the date of
deliuery .
The Bonds shall ha�e endorsed thereon a certificate of
authentication substantially in th� form set forth in Section
401 h�reof, which shall be manually executed by the Paying
Agent and Bond Registrar . No Bond shall be entitl�d to any
security or benefit under this Ordinance or be �alid or
obligatory for any purpose unl�ss and until such certificate of
authentication shall ha�e been duly executed by the. Paying
Agent and Bond R�gistrar . Such �xecut�d c�rtificate of
authentication upon any �ond shall be conclusi�e e�idence that
such Bond has been duly authenticated and deli�ered under this
Ordinance . The certificate of authentication on any Bond shall
be de�med to have b�en duly executed if signed by any
authorized officer or employee of the Paying Agent and Bond
Registrar, but it shall not b� necessary that the same officer
or employee sign the certificatF of authentication on all of
the Bonds that may be issued her�under at any one time .
ARTICLE III
REDEMPTION OF BONDS
Section 301 . Mandatory Redemption . The Bonds arF
^ subj �ct to mandatory red�mption and payment
prior to maturity
in �hole or in part, in in�erse order of maturity and by lot
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within a single maturity, on March 1 , 1989, at a redemption �
price equal to the principal amount thereof plus accrued
interest to the redemption date, from proceeds of the Bonds in
the City ' s Construction Account not expended for costs of
impro�ements to the System by January 1 , 1989 .
Section 302 . Optional Redemption . Bonds maturing on
March 1 , 1997 , and thereafter may be called for redemption and
payment prior to maturity at the option of the City , in whole
or in part, in in�erse order of maturity and by lot within a
single maturity , on March 1 , 1996 , or on any interest payment
date thereafter, at the redemption prices set forth belo�
(expressed as percentages of principal amount) plus accured
interest thereon to the date of redemption :
Redemption R�demption
Dates Prices
March 1 , 1996 and Sept�mber 1 , 1996 101 . 0°�
March 1 , 1997 and September 1 , 1997 100 . 5°�
March 1 , 1998 and th�r�after 100 . 0°�
Section 303 . Notice of Redemption . In the euent that
the City shall elect to rede�m and pay any of the Bonds prior
to the maturity thereof pursuant to Section 302 hereof, or �hen `,,
the redemption of Bonds is required pursuant to Section 301
hereof, the City or the Paying Agent and Bond Registrar acting
on behalf of the City shall giue writt�n notice of its
intention to rede�m and pay said Bonds , or portions thereof, on
a specified date , the same b�ing describ�d by number, principal
amount and maturity , said notice to be giuen by United States
register�d or certified mail addressed to ihe original
purchaser of the Bonds and the registered o�ner of each Bond ,
�ach such notice to be mail�d at l�ast 30 days prior to the
redemption date .
Section 304. Selection of Bonds to be Redeemed .
(a) Bonds shall be r�deemed only in the principal
amount of $5, 000 or any integral multiple thereof . When less
than all of the outstanding Bonds of any series are to be
redeemed and paid prior to maturity , such Bonds shall be
redeemed in inuerse order of maturity , Bonds of less than a
full maturity to be selected by the Paying Agent and Bond
Registrar by lot in $5, 000 units of face ualue in such
equitable manner as the Paying Agent and Bond Registrar may
det�rmine .
(b) In the case of a partial redemption of Bonds by
lot wh�n Bonds of denominations greater than $5 , 000 are then
Outstanding , then for all purposes in connection with such .�
red�mption each $5, 000 of face �alue shall be tr�at�d as though
—8—
^ it were a separate Bond of the denomination of $5, 000 . If it
is determined that one or more, but not all , of the $5, 000
units of face �alue represented by any fully registered Bond is
selected for redemption, then upon notice of intention to
redeem such $5, 000 unit or units , the owner of such fully
registered Bond or th� o�ner ' s duly authorized agent shall
forthwith present and surrender such Bond to the Paying Agent
and Bond Registrar ( 1 ) for payment of the redemption price
(including the re.demption premium, if any , and interest to the
date fixed for redemption) of the $5, 000 unit or units of face
�alue called for redemption, and (2) for exchange , without
charge to the o�ner thereof, for a n�w Bond or Bonds of the
aggregate principal amount of the unredeemed portion of the
principal amount of such fully r�gistered Bond . If the o�ner
of any such fully registered Bond of a denomination greater
than $5 , 000 shall fail to pr�sent such Bond to the Paying Agent
and Bond Registrar for paym�nt and exchange as aforesaid , such
Bond shall , neuertheless , become due and payable on the
redemption date to the extent of the $5 , 000 unit or units of
face ualue called for redemption (and to that extent only) .
Section 305 . Effect of Call for Redemption . Whene�er
any Bond is called for redemption and payment as pro�id�d in
this Article, all interest on such Bond shall cease from and
after the date for which such call is made , prouided funds are
�^ a�ailable for its payment at the price here.inbefore specified .
ARTICLE IU
FORM OF BONDS
Section 401 . Form of Bonds . Each of th� Bonds , as
originally issued or issued upon transfer, exchange or
substitution, shall be in substantially the .follo�ing form:
,^-.
—9—
(FORM OF FULLY REGISTERED BOND) �,
UNITED STATES OF AMERICA
STATE OF MISSOURI
Registered Registered
No . R— $
CITY OF CAPE GIRARDEAU, MISSOURI
SEWERAGE SYSTEM REVENUE BOND
SERIES 1986
Interest Rate Maturity Date Dated Date CUSIP
°� March 1 , March 1 , 1986
REGISTERED OWNER :
PRINCIPAL AMOUNT: DOLLARS
The CITY OF CAPE GIRARDEAU, MISSOURI , a municipal
corporation and constitutional charter city in the County of �y
Cape Girardeau , State of Missouri (the "City" ) , for �alue
r�cei��d , hereby promis�s to pay to the Regist�red O�ner shown
abo�e , or registered assigns , the Principal Amount sho�n abo�e
on th� Maturity Date sho�n aboue , and to pay interest th�r�on
at the Interest Rate per annum sho�n aboue ( computed on the
basis of a 360—day year of t�elue 30—day months ) from the Dated
Date sho�n abo�e or from the most recFnt interest payment date
to which interest has been paid or duly pro�ided for, payable
semiannually on March 1 and September 1 in each year, beginning
on September 1 , 1986 , until said Principal Amount shall ha�e
been paid .
The principal of and redemption premium, if any , on
this Bond shall be paid at maturity or upon earlier r�demption
to the person in whose name this Bond is registered at the
maturity or redemption date hereof, upon presentation and
surrender of this Bond at the principal office of The Boatmen ' s
National Bank of St . Louis , in the City of St . Louis , Missouri ,
(the "Paying Agent and Bond Registrar" ) . The interest payable
on this Bond on any interest payment date shall be paid by
check or draft mailed by the Paying Agent and Bond Registrar to
the person in whos� name this Bond is r�gistered on the
registration books maintained by the Paying Agent and Bond
Registrar at the close of busin�ss on the Record Date for such
interest , �hich shall be the fifteenth day (�hether or not a �,,
business day) of the calendar month next preceding such
—10—
�' interest payment date . The principal of, redemption premium,
if any , and interest on this eond shall be payable in lawful
money of the United States of America .
THE TERMS AND PROVISIONS OF THIS BOND ARE CONTINUED ON
THE REVERSE SIDE HEREOF AND SUCH CONTINUED TERMS AND PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET
FORTH AT THIS PLACE .
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(FORM OF REVERSE SIDE OF BOND)
ADDITTONAL PROVISIONS
This Bond is one of a duly authoriz�d series of bonds
of the City designated "Sewerage System Re�enue Bonds , Series
1986" , aggregating the principal amount of $1 , 400, 000 (the
"Bonds " ) , issued by the City for the purpose of pro�iding funds
for improuing the City ' s sanitary se�er syst�m (said sanitary
se�er system, together with all future impro�ements and
extensions thereto herea�ter constructed or acquired by the
City , being herein called the "System" ) , under the authority of
and in full compliance �ith the Constitution and la�s of the
State of Missouri , including particularly Sections 250 . 010 to
� 250 . 250, inclusi�e, of the Revised Statut�s of Missouri , as
amended , and pursuant to an election duly held in the City and
an ordinance duly adopted by the gou�rning body of the City
(herein called the "Ordinance" ) .
The Bonds are subject to mandatory redemption and
payment prior to maturity in �hole or in part , in inuerse order
of maturity and by lot within a single maturity , on March 1 ,
1989 , at a red�mption price �qual to the principal amount
thereof plus accrued interest to the redemption date , from
proceeds of the Bonds in th� City ' s Construction Account not
expended for costs of impro�ements to the System by January 1 ,
1989 .
Bonds maturing on March 1 , 1997 , and thereafter may be
called for red�mption and paym�nt prior to maturity at the
option of the City , in �hole or in part , in inverse order of
maturity and by lot within a singl� maturity , on March 1 , 1996 ,
or on any interest payment date thereafter, at the redemption
prices sc.t forth belo� (�xpress�d as p�rc�ntages of principal
amount) plus accured interest thereon to the date of redemption :
Redemption R�d�mption
Dates Prices
March 1 , 1996 and Sept�mber 1 , 1996 101 . 0°,6
'"� March 1 , 1997 and September 1 , 1997 100 . 5°,6
March 1 , 1998 and th�reafter 100 . 0°,6
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In the event the City shall elect to so redeem and pay any
of the Bonds prior to maturity or when the redemption of Bonds �
is required as aforesaid, the City or the Paying Agent and Bond
Registrar acting on behalf of the City shall give written
notice of its intention to redeem and pay said Bonds on a
specified date, the same being described by number and
maturity , said notice to be gi�en by United States registered
or certified mail addressed to the original purchaser of the
Bonds , and to the registered o�ner of each Bond , each of said
notices to be mailed at l�ast 30 days prior to the date fixed
for redemption . Whenever any Bond is called for redemption and
payment as aforesaid , all interest on said eond shall cease
from and after the date for which such call is made, provided
funds are auailable for the payment of said Bond at the price
hereinbefore specified .
The Bonds are special abligations of the City payable
solely from, and secur�d as to the paym�nt of principal and
interest by a pledge of, the re�enues deri�ed by the City from
the operation of the Syst�m, and the taxing po��r of the City
is not pledged to the payment of the Bonds either as to
principal or interest . Th� Bonds shall not be or constitut� a
general obligation of the City , nor shall they constitute an
indebtedness of the City Within the meaning of any
constitutional , statutory or charter pro�ision, limitation or
restriction . Under th� conditions set forth in the Ordinance,
the City has the right to issue additional parity bonds payable `�
from the same source and s�cured by the same re�enues as the
Bonds ; pro�ided, ho�e�er, that such additional bonds may be so
issu�d only in accordance with �nd subject to the couenants ,
conditions and restrictions relating thereto set forth in the
Ordinance .
The City hereby co�enants �ith the holder of this Bond to
keep and perform a11 co��nants and agre�ments contained in the
Ordinance , and the City will fix , establish, maintain and
collect such rates , fees and charges for the use and �eruices
furnished by or through the System, as �ill produce re�enues
sufficient to pay the cost of operation and maintenance of the
System, pay the principal of and interest on the Bonds as and
when th� same become du� , and pro�ide reasonable and ad�quate
reser�e funds . Reference is made to the Ordinance for a
description of the co�enants and agr�ements made by the City
with respect to the collection , segregation and application of
the reuenu�s oF th� System, the nature and extent of the
security for the Bonds , the rights , duties and obligations of
the City with resp�ct thereto , and the rights of the holders
thereof .
ThF Bonds are issuable in the f�rm of fully registered
Bonds without coupons in the denomination of $5, 000 or any
integral multiple thereof . �
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^ This Bond may be transferred or exchanged , as provided
in the Ordinance , only upon the registration books kept for
that purpose at the abo�e—mEntioned office of the Paying Agent
and Bond Registrar, upon surrender of this Bond together �ith a
written instrument of transfer or • exchange satisfactory to the
Paying Agent and Bond Registrar duly executed by the registered
o�ner or the registered owner ' s duly authorized agent, and
thereupon a ne� Bond or Bonds in any authorized denomination of
the same maturity and in the same aggregate principal amount
shall be issued to the transferee in �xchange therefor as
pro�ided in the Ordinance, and upon payment of the charges
therein prescribed . The City and the Paying Agent and Bond
Registrar may deem and treat the person in whose name this Bond
is registered as th� absolute o�ner hereof for the purpose of
recei�ing payment of, or on account of, the principal or
red�mption price hereof and interest du� hereon and for all
other purposes .
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This Bond shall not b� ualid or become obligatory for
any purpose or be entitled to any security or benefit under the
Ordinance until the Certificate of Authentication h�reon shall
ha�e been executed by the Paying Agent and Bond Registrar .
^ IT IS HEREBY CERTIFIED AND DECLARED that all acts ,
conditions and things required to exist , happen and be
performed precedent to and in th� issuanc� of th� Bonds ha�e
existed , happened and been performed in due time , form and
mann�r as required by la�, and that before the issuance of the
Bonds prouision has becn duly made for the collection and
segregation of the reu�nu�s of the System and for the
application of the same as hereinbefore prouided .
�'`�
—13—
IN WITNESS WHEREOF, the CITY OF CAPE GIRARDEAU, �
MISSOURI, has executed this Bond by causing it to be signed by
the manual or facsimile signature of its Mayor and attested by
the manual or facsimile signature of its City Clerk , and its
official seal to be affixed hereto or imprinted hereon, and
this Bond to be dated the Dated Date shown abo�e .
CERTIFICATE OF AUTHENTICATION CITY OF CAPE GIRARDEAU,
MISSOURI
This eond is one of the Bonds
of the issue described in the
within-mentioned Ordinance . By
Mayor
Registration Date :
THE BOATMEN ' S NATIONAL BANK OF (Seal)
ST. LOUIS,
Paying Agent and Bond Registrar
ATTEST:
By
Authorized Officer City Clerk
�
�..�
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� __________________________________________________=_____________
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells ,
assigns and transfers unto
Print or Type Name, Address and Social Security Number
or other Taxpayer ldentification Number of Transferee
the within eond and all rights thereunder, and hereby
irre�ocably constitutes and appoints
agent to transfer the within Bond on the books kept by the
Paying Agent and Bond Registrar for the registration thereof,
with full po�er of substitution in the premis�s .
Dated :
NOTICE : Th�� signature to this
assignment must correspond
with the name of the R�gis—
t�red O�ner as it appears
/�•* upon the fac� of the within
Bond in euery particular .
Signature Guarant�ed By :
(Name of Bank)
By
Title .
/'`
—15—
ARTICLE V
�
ESTABLISHMENT OF FUNDS AND ACCOUNTS
Section 501 . Creation of Funds and Accounts . There
are hereby created and ordered to be established in the
treasury of the City the following separate accounts to be
kno�n respecti�ely as the :
(a) Se�erage System Construction Account (the
"Construction Account" ) .
(b) Sewerage System Re�enue Fund (the "Re�enue Fund" ) .
(c) Se�erage Syst�m Operation and Maintenance Account
(the "Operation and Maintenance Account" ) .
(d) Principal and Int�rest Account for Se�erage
System Reuenue Bonds , Series 1986 (the " Principal
and Interest Account" ) .
(e) Reserue Account for Se�erage System Re�enue
Bonds , Series 1986 (the "Bond Reser�e Account") .
Section 502 , Administration of Funds and Accounts .
The funds and accounts �stablished pursuant to Section 501
hereof shall be maintained and administE�red by the City solely '"�
for the purpos�s and in thc manner as prouided in this
Ordinance so long as any of the Bonds remain outstanding and
unpaid .
ARTICLE VI
APPLICATION OF BOND PROCEEDS
Section 601 . Disposition of Bond Proceeds . The
proceeds recei�ed from the sale af the Bonds , including any
premium or accrued interest thereon, shall be deposited
simultaneously �ith the deliuery of th� eonds , as follows :
(a) There shall be deposited in the Principal and
Interest Account any premium on the Bonds and any
amount recei�ed on account of accrued interest on
the Bonds .
(b) There shall be deposited in the Construction
Account the r�maining balance of the proceeds of
the Bonds .
—16— �
^ Section 602 . Application of Moneys in the
Constructinn Account . Except as other�ise pro�ided in Section
604 hereof, moneys in the Construction Account shall be used by
the City for the sole purpose of paying the cost of extending
and improuing the System as hereinbefore pro�ided , in
accordance with the plans and specifications therefor pr�pared
by the Consulting Engineer, heretofore approued by the City
Council of the City and on file in the office of the City
Clerk , including any alterations in or amendments to said plans
and specifications d�emed ad�isable by the Consulting Engineer
and appro�ed by the City Council of the City , and for paying
the costs and expenses incident to the issuance of the Bonds ,
Section 603 . Withdrawals from Construction Account .
Withdra�als from the Construction Account shall be made only
upon receipt of a certificate executed by the City Manager or
his designat�d representati�e that such payment is being made
for a purpose �ithin the scope of this Ordinance and that the
amount of such payment represents only the contract price of
the property , equipment, labor, materials or seruice being paid
for or, if such payment is not being made pursuant to an
express contract, that such payment is not in exce.ss of the
reasonable �alue thereof.
Section 604 . Surplus in Construction Account . Upon
�'"'`' completion of the extensions and impro��m�nts to th� System as
hereinbefore pro�ided , any surplus remaining in the
Construction Account shall be held in the Construction Account
solely for use on extensions and impro�ements to the System
authorized herein and �hich are currently scheduled to be
completed in subsequent years , or deposited in the Principal
and Interest Account . Any pro�ision in this Ordinance to the
contrary notwithstanding , any surplus in the Construction
Account on January 1 , 1989 , shall be d�posited in the Principal
and Interest Account for the redemption of Bonds on March 1 ,
1989 , in accordance with the pro�isions of Section 301 her�of .
ARTICLE VII
APPLICATION OF REVENUES
Section 701 . Re�enue Fund . The City co�enants and
agrees that from and after th� deliuery of the Bonds , and
continuing as long as any of the Bonds remain outstanding and
unpaid , all of the re�enu�s d�ri�ed and collected by the City
from the operation of the System v�ill be paid and deposited
into the Re��nue Fund , and that said revenues shall be
segregated and kept separate and apart from all other re�enues ,
funds and accounts of the City and shall not be mingled with
any other revenues , funds and accounts of the City . The
�' R��enue Fund shall be administer�d and applied solely for the
purposes and in the manner pro�ided in this Ordinance .
—17—
Section 702 . Application of Moneys in Funds and
Accounts . The City covenants and agrees that from and after ~�
the deli�ery of the Bonds and continuing so long as any of the
Bonds shall remain outstanding and unpaid, the City will on the
first day of each month administer and allocate all of the
moneys then held in the Revenue Fund as follows :
(a) There shall first be paid and credited to the
Operation and Maintenance Account an amount sufficient to pay
the estimated cost of operating and maintaining the System
during the ensuing month .
All amounts paid and credited to the Operation and
Maintenance Account shall be expended and used by the City
solely for the purpose of paying the reasonable and proper
expenses of operating and maintaining the Syst�m and k�eping
the System in good repair and working order, including , without
limiting th� generality of the foregoing , salaries , wages ,
costs of materials and supplies , annual audits , periodic
consulting engineers ' reports and insurance .
(b) There shall next be paid and credited to the
Principal and Interest Account, to the extent necessary to meet
at maturity thereof the payment of all interest on and
principal of the Bonds , the following sums :
(i) Beginning on April 1 , 1986 , and continuing v
on the first day of each month th�reafter to and
including August 1 , 1986 , an amount not less than 1/5
of th� amount of interest becoming due on the Bonds on
September l , 1986 ; and thereaftFr, beginning on
Septembe.r 1 , 1986 , and continuing on the first day of
each month thereafter so long as any of the Bonds
shall remain outstanding and unpaid, an amount not
less than 1/6 of the amount of interest that will
become due on th� Bonds on th� n�xt succeeding
interest payment date;
(ii) Beginning on April 1 , 1986 , and continuing
on the first day of each month ther�after to and
including February 1 , 1987 , an amount not less than
1/ il of the amount of principal becoming due on the
Bonds on March 1 , 1987; and thereafter, beginning on
March 1 , 1987 , and continuing on the first day of each
month thereafter so long as any of the Bonds shall
remain outstanding and unpaid , an amount not less
than 1/ 12 of the amount of principal that �ill become
due on th� Bonds on the next succ�eding principal
payment date ; and
(iii) On the first day of each month preceding a
month in �hich fees of the Paying Agent and Bond ",,
Registrar are scheduled to become due , such amounts as
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� may be required to pay such fees of the Paying Agent
and Bond Registrar becoming due in the next month .
All amounts paid and credited to the Principal and
Interest Account shall be expended and used by the City for the
sole purpose of payin9 the interest on and principal of the
Bonds as and when the same become due and the fees of the
Paying Agent and Bond Registrar for acting as fiscal agent in
the payment of said principal and interest .
If at any time the moneys in the Re�enue Fund shall be
insufficient to make in full the payments and credits at the
time required to be made by the City to the principal and
interest accounts established by the City to pay the principal
of and interest on the outstanding Sewerage System re�enue
bonds of the City , including only the Bonds and any other
Sewerage System re�enuF bonds of the City hereafter issued and
standing on a parity with th� Bonds , the auailable moneys in
the Re�enue Fund shall be diuided among such principal and
interest accounts in proportion to the respecti�� principal
amounts of said series of Sewerage System re�enue bonds of the
City at the time outstanding which are payable from the moneys
in said principal and interest accounts .
( c) After a11 paym�nts and credits required at the
/^` time to be made by the City under the pro�isions of paragraphs
(a) and (b) of this Section have been made , there shall n�xt be
paid and creditcd to the Bond Reser�e Account the sum of $4, 500
each month until said Account shall aggregate an amount equal
to the maximum annual principal and interest payable on the
Bonds (hereinafter the " Res�ru� R�quir�ment" ) . Except as
hereinaftFr prouided in this section, all amounts paid and
cr�dited to th� Bond R�seru� Account shall be exp�nded and us�d
by the City solely ta pre�ent any default in the payment of
int�r�st on or principal af th� Bonds if th� moneys in the
Principal and Interest Account are insufficient to pay the
int�r�st on or principal af said Bonds as th�y become due .
After the E�ond Reseruc Account aggregates the amount of the
Res�r�� R�quir�m�nt , no further paym�nts into said Account
shall b� required , but if the City shall ever be required to
expend and us� a part of th� mon�ys in said Account for the
purpose herein authorizFd and such expenditure shall reduce the
amount oF said Account belo�,� the amount of th� R�serve
Requirement , the City shall resume and continue said monthly
payments into said Account until said Account shall aggregate
the amount of the Reser�e Requirement .
Mon�ys in the Bond Res�rve Account may be used to call
the Bonds for redemption and payment prior to their maturity
pro�ided all of the Bonds at th� time outstanding are called
for payment and funds are available to pay the same according
°� to th�ir terms . Moneys in th� Bond Reserue Account shall be
used to pay and retire the last outstanding Bonds unless such
Bonds and all interest thereon are oth�rwise paid .
—19—
If at any time the moneys in the Re�enue Fund shall be �.
insufficient to make in full the payments and credits at the
time required to be made by the City to the bond reser�e
accounts established by the City to protect the payment of the
outstanding Sewerage System re�enue bonds of the City ,
including only the Bonds and other Sewerage System re�enue
bonds of the City hereafter issued and standing on a parity
�3th the Bonds , the a�ailable moneys in the Re�enue Fund shall
be di�ided among such bond reser�e accounts in proportion to
the r�specti�� principal amounts of said series of Se�erage
System re�enue bonds of the City at the time outstanding �hich
are payable from the moneys in such bond reserue accounts .
(d) After all payments and credits required at the
time to be made by the City under the pro�isions of paragraphs
(a) , (b) and (c) of this Section haue been made, all moneys
remaining in th� R�u�nue Fund may be �xpend�d and used for the
following purposes as determined by the City Council of the
City :
(i) Paying th� cost of the operation,
maintenance and r�pair of the Syst�m to the extent
that may be necessary after the application of the
moneys held in the Operation and Maintenance Account
under the pro�isions of paragraph (a) of this Section;
(ii) Paying t-he cost of extending , enlarging or �
improuing the System;
(iii) Pre�enting default in, anticipating payments
into or increasing th� amounts in th� Principal and
Interest Account or the Bond Reser�e Account referred
to in paragraphs (b) and (c) o� this Section, or
either one of them, or establishing or increasing the
amount of any principal and interest account or bond
reserue account created by the City for the paymFnt of
any S���rage System re�enu� bonds of the City
hereafter issued under i.he canditions hereinafter
specified and standing on a parity with the Bonds ; or
(iu) Calling , redeeming and paying prior to
maturity , or, at the option of the City , purchasing in
the open market at the best price obtainable not
exceeding the call price (if any bonds are callable) ,
the Bonds or any other Se�erage System re�enue bonds
of the City hereaft�r issued und�r th� conditions
hereinafter specified and standing on a parity �ith
the Bonds , including principal , interest and
redemption premium, if any .
So long as any of th� Bonds r�main outstanding and
unpaid , no moneys deriued by thF City from the operation of the ,,.,,
Syst�m shall be di�erted to the general gouernmental or
—20—
^ municipal functions of the City ; pro�ided , howe�er, this
restriction does not prohibit the proper reimbursement or
payment to the City General Fund of obligations of the System
for o�erhead costs , payments in lieu of utility gross receipts
taxes , or other specific costs incurred as a result of the
operation of the System.
Section 703 . D_eficiency of Payments into Funds or
Accounts . If at any time the reuenues deri�ed by the City From
the operation of the System shall be insufficient to make any
payment on the date or dates h�reinbefore specified , the City
�ill make good the amount of such deficiency by making
additional payments or credits out of the first available
reuenues thereafter receiued by the City from the operation of
the System, such paym�nts and credits being made and applied in
the order hereinbefore specified in Section 702 of this
Ordinance .
If at any time the moneys in the Principal and
Interest Account and in th� Bond Res�rve Account are not
sufficient to pay the principal of and interest on the Bonds as
and when the same become due , then mon�ys in the Reuenue Fund
may and shall be used by the Gity to prevent any default in the
payment of the principal of and interest on the Bonds .
'� Section 704. Transfer of Funds to PaVinq Aqent and
Bond Reqistrar . The Finance Director of the City is hereby
authorized and directFd to �ithdra� from the Principal and
Interest Account, and , to the extent n�cessary to preuent a
default in the payment of either principal of or interest on
the Bonds , from th� Bond Res�rue Account and the Re�enue Fund
as pro�ided in Sections 702 and 703 hereof, sums sufficient to
pay the principal of and inter�st on th� Bonds and the f��s of
the Paying Agent and Bond Registrar as and �hen the same become
due , and to for�ard such sums to the Paying Agent and Bond
Registrar prior to dates �hen such principal , interest and fees
of the Paying Agent and Bond Registrar will becom� due . If,
through lapse of time , or otherwise , the holders of Bonds shall
no longer be entitled to enforc� payment of their obligations ,
it shall be the duty of the Paying Agent and Bond �egistrar
forthwith to r�turn said funds to the City . All moneys
deposited �ith the Paying Agent and Bond Registrar shall be
deemed to be deposited in accordanc� with and subject to all of
the pro�isions contained in this Ordinance .
ARTICLE UIII
DEPOSIT AND INUESTMENT OF MONEYS
Section 801 . Deposits of Moneys . Cash moneys in each
^' of the funds and accounts created by and refFrred to in this
Ordinance shall b� d�posited in a bank or banks located in the
—21—
State of Missouri which are members of the Federal Deposit
Insurance Corporation, or shall be deposited in one or more `�
sa�ings and loan associations located in the State of Missouri
which are members of the Federal Sauings and Loan Insurance
Corporation, and all such deposits shall be continuously and
adequately secured by the banks or sa�ings and loan
associations holding such deposits as pro�ided by the la�s of
the State of Missouri .
Section 802 . In�estment of Moneys . Moneys held in
any fund or account referred to in this Ordinance may be
inuested by the City in direct obligations of, or obligations
the principal of and interest on which are unconditionally
guaranteed by , the United States of America or in such other
obligations as may be permitted by la�; provided, however, that
no such in�estment shall be made for a period extending longer
than to the date when the moneys inuested may be ne�ded for the
purpose for which such fund or account �as created; pro�ided
further, that no such inuestment shall be mad� which would
cause the interest on the Bonds to become subject to federal
income taxation . All interest on any in�estments held in any
fund or account shall accrue to and become a part of such fund
or account . In determining the amount held in any fund or
account under any of the pro�isions of this Ordinance ,
obligations shall be �alued at the principal amount or the
market �alue thereof, whiche�er is lower . If and when the
amount held in any fund or account shall be in excess of the "�
amount required by the prouisions of this Ordinance, the City
shall direct that such excess be paid and credited to the
Reuenue Fund .
Section 803 . Arbitrage Co�enant . The City couenants
and agrees that it will use the proce�ds of th� Bonds as soon
as practicable and with all reasonable dispatch for the purpose
for �hich th� Bonds are issued as hereinbefore s�t forth , and
that no part of the proceeds of the Bonds shall be in�ested in
any securities or obligations except for the temporary period
pending such use, nor used , at any time, directly or
indirectly , in a manner which, if such us� had been reasonably
anticipated on the date of issuance of the Bonds , would have
caused any of the Bonds to be or become "arbitrage bonds"
�ithin thF mcaning of Section 103 ( c) of the Internal Re�enue
Code of 1954, as am�nded, and the regulations of the Tr�asury
Department thereunder .
ARTICLE IX
PARTICULAR COVENANTS OF THE CITY
The City couenants and agrees with each of the
purchasers and o�ners of any of the Bonds that so long as any
of the Bonds remain outstanding and unpaid :
-22- �"�
r'` Section 901 . Efficient and Economical Operation . The
City �ill continuously o�n and will operate the Syst�m in an
efficient and economical manner and will ke�p and maintain the
same in good repair and �orking order .
Section 902 . Rate Covenant . The City will fix ,
establish, maintain and collect such rates , fees and charges
for the use and ser�ices furnished by or through the System,
including all extensions and impro�ements thereto hereafter
constructed or acquired by the City , as �ill produce re�enues
sufficient to (i) pay the cost of the operation and maintenance
of the System; (ii) pay the principal of and interest on the
Bonds as and �hen the same become due ; (iii) enable the City to
ha�e in each fiscal year, commencing as of July 1 , 1986 , net
operating re�enues from the System in an amount that �ill be
not less than 110°� of the amount required to be paid by the
City in such fiscal y�ar on account of both principal of and
interest on all Se�erage System re�enue bonds at the time
outstanding ; and (i�) pro�id� r�asonabl� and adequate reser�es
for the payment of the Bonds and the interest thereon and for
the protection and benefit of th� System as prouided in this
Ordinance . The City will require the prompt payment of
accounts for seruice render�d by or through the System and will
promptly take �hate�er action is legally permissible to enforce
and collect delinquent charg�s .
�
Section 903 . Reasonable Charges for all Ser•�ices .
None of the facilities or s�r�ic�s pro�ided by the System �ill
be furnished to any user (excepting the City itself) without a
r�asonable charge being mad� ther�for . In the �uent that the
reuenues deri�ed by the City from the System shall at any time
be insufficient to pay th� reasonable exp�nses of op�ration and
maintenance of the System and also to pay all intFrest on and
principal of th� Bonds as and when the same become due , then
the City will thereafter pay into the Reuenue Fund a fair and
reasonable payment in accordanc� with effecti�� applicable
rates , fees and charges far al.l ser�ices or other facilities
furnish�d to the City or any of its departments by th� Syst�m,
and such paym�nts �il.l continue so long as the same may be
n�c�ssary in order to pre��nt or r�duce thc amount of any
default in the payment af the interest on or principal of the
Bonds .
Section 904. RFstrictions on Mortgage or Sale of
System. The City will not mortgage , pledge or oth�rwise
encumber the System or any part thereof, nor will it sell ,
lease or otherwise dispos� of the Syst�m or any material part
thereof; pro�ided , howe�er, the City may sell any portion of
such prop�rty which shall ha�e b��n replaced by other similar
property of at least equal �alue , or which shall cease to be
necessary for the �fficient operation of th� System. The
'� proceeds of any such sale or sales shall be paid and deposited
into the Re�enue Fund . The City may cease to operat� , abandon
—23—
or otherwise dispose of any property which has become obsolete,
nonproducti�e or otherwise unusable to the ad�antage of the `�
City .
Section 905 . Insurance . The City u�ill carry and
maintain a reasonable amount of fire and extended co�erage
insurance upon all of the properties forming a part of the
System insofar as the same are of an insurable nature, such
insurance to be of the character and co�erage and in an amount
as would normally be carried by a pri�ate corporation engaged
i�� a similar type of business . In the e�ent of loss or damage ,
the City , �ith reasonable dispatch, �ill use the proceeds of
such insurance in reconstructing and replacing the property
damaged or destroyed , or, if such reconstruction or replacement
be unnecessary , then the City �ill pay and deposit the proceeds
of such insurance into the Reuenu� Fund . The City in operating
the System will carry and maintain public liability and
t�orkmen ' s compensation insurance in such amounts as would
normally be maintained by a private corporation engaged in a
similar type of business , and the proceeds deriued from such
insurance shall be used in paying the claims on account of
�hich such proc�eds �ere recei�ed . The cost of all insurance
obtained pursuant to the requirements of this subsection shall
be paid as an operating cost out of th� re�enues of the
System. The City may become self—insured , in �hole or in part ,
for any such couerage mentioned herein, taking into account the
cost and a�ailability of insurance and the effect of the terms ``�
and rates of such insurance upon the City ' s costs and charges
of its operation of the System, pro�ided that such
s�lf—insuranc� shall be of the character and coverage and in an
amount as �ould normally be carried by a pri�ate corporation
engag�d in a sirnilar typ� of business .
Section 906 . Books Records and Accounts . The City
�ill install and maintain proper books , records and accounts
(Fntirely separate from all other records and accounts of the
City) in which complete and correct entries will be made of all
dealings and transactions of or in relation to the System of
the City . Such accounts shall show th� amount of re�enues
recei�ed from the System, the application of such reuenues , and
all financial transactions in connection therewith . Said books
shall be kept by the City according to standard accounting
practices as applicable to the operation of municipal
utilities .
Section 907 . Annual Budget . Prior to the commence—
ment of each fiscal year, the City Manager will cause to be
prepared and filed �ith the City Council a budget sFtting forth
the estimated receipts and exp�nditures of the System for the
next succe�ding fiscal year . The City Manager will mail a copy
of said budget to the original purchaser of the Bonds . Said
annual budget shall be prepared in accordance �ith the
�
—24—
�'` requirements of the laws of Missouri and shall contain all
information as shall be r�quired by such laws .
Section 908 , Annual Audit . Annually , promptly after
the end of the fiscal year, the City �ill cause an audit to be
made of the System for the preceding fiscal year by a certified
public accountant or firm of certified public accountants to be
employed for that purpose and paid from the re�enues of the
System. Said annual audit shall include :
(i) A classified statement of the gross re�enues
recei�ed , the expenditures for operation and
maintenance, the net operating re�enues and the amount
of any capital exp�nditures made in connection with
the System during the pre�ious fiscal year;
(ii) A balance she�t as of the end of each fiscal
year �ith the amount on hand at the end of such year
in �ach of the funds and accounts cr�ated by and
referred to in this Ordinance;
(iii) A statement showing the profit or loss for
such fiscal year;
^ (i�) A statement of all Sewerage System reuenue
bonds matured or redeemed and interest paid on bonds
during said fiscal year;
(�) A statement of the number of customers
serued by the System al- the b�ginning and the end of
such fiscal year;
(�i) A statement showing th� arnount and character
of the insurance carri�d by the City on th� property
constituting the System and showing the names of the
insurers , the expiration dat�s of the polici�s and the
premiums th�reon; and
(�ii) Such remarks and recommendations regarding
the City ' s practic�s and procedur�s of op�rating the
System and its accounting practices as said
accountants may deem appropriate .
Within 30 days after the completion of each such
audit , a copy ther�of shall be fil�d in the office of the City
Clerk , and a duplicate copy of said audit shall be mailed to
the original purchaser of th� Ronds . Such audits shall at all
times during the usual business hours be open to the
�xamination and inspection by any taxpayer, any user of the
seruices of the System, any Holder of any of the Bonds , or by
� anyone acting for or on behalf of such taxpayer, us�r or
Nolder .
—25—
As soon as possible after the completion of such
annual audit, the go�erning body of the City shall re�ie� such "
audit, and if any audit shall disclose that proper pro�ision
has not been made for all of the requirements of this Ordinance
and the law under which the Bonds are issued, the City
co�enants and agrees that it will promptly cure such deficiency
and wil7. promptly proceed to increase the rates , fees and
charges to be charged for the use and ser�ices furnished by the
System as may be necessary to adequately pro�ide for such
requirements .
Section 909 . Consultinq Enqineer Report . At least
once euery three (3) years , the City will cause the Consulting
Engineer to make an examination of and report on the condition
and operations of the Syst�m, such report to include
recommendations as to any changes in such operations deemed
d�sirable . Each such report shall also make ref�rence to any
unusual or extraordinary items of maintenance and repair and
any ext�nsions or impro��m�nts that may be need�d in the
ensuing three (3 ) year period . A copy of each such report
shall be filed in the office of the City Clerk and , upon
request, sent to the original purchaser of the Bonds or any
bondholder .
Section 910 . Bondholders Riqht of Inspection . The
Holder or Holders of any of the Bonds shall ha�e the right at
all reasonable times to inspect the System and all records , `'�
accounts and data relating ther�to, and any such Holder shall
be furnished all such information concerning the System and the
operation thereof which �uch Holder may reasonably request and
for �hich the City may require reasonable charges for the cost
of any reproduction .
Section 911 . Performance of Duties . The City �ill
faithfully and punctually p�rform all duties and obligations
with respect to the operation of the System, including all
extensions and improu�ments thereto , no� or hereafter impos�d
upon the City by the Constitution and laws of the State of
Missouri and by the pro�isions of this Ordinance .
Section 912 . Miscellaneous Co�enants Reqardinq Tax
Exemption . Until such tim� as the City shall receiue an
opinion of nationally recognized bond counsel that failure to
comply with one or more of the following pro�isions will not
affect the tax—exempt status of the Bonds , the City co�enants
and agrees that it will comply with each of the following
prouisions so long as any of the Bonds remain outstanding and
unpaid :
1 . Proceeds of the Bonds in an amount equal to or
exceeding the less�r o� 10°� of said proceeds or
$10 million shall not be used directly or �
indirectly in any trad� or business carried on by
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,�. any person other than a qualified go�ernmental
unit . Proceeds of the Bonds in an amount equal
to or exceeding the lesser of 5°� of said proceeds
or $5 million shall not be used directly or
indirectly to make or finance loans to any person
other than a qualified go�ernmental unit .
2 . The City will submit a report to the Secretary of
the Treasury concerning the issuance of the Bonds
not later than the 15th day of the second
calendar month after the close of the calendar
quarter in �hich the Bonds are issued .
3 . At least 5�,6 of the net proceeds of the Bonds �ill
be spent within 30 days after the date of issue
to carry out the go�ernmental purpose of the
Bonds . Net proceeds means the proceeds of the
Bonds reduced by issuance costs (including
under�riter ' s discount) and any reasonably
requir�d res�r�� �und .
4. All proceeds of the eonds �ill be spent �ithin
three years after the date of issue of the
Bonds .
�.., 5 . Proceeds of the Bonds dedicated for acquisition
of tangible property not expended within 30 days
of the date of issue �ill be in�ested at a yield
not materially higher than the yield on the Bonds .
6 . Proceeds of the Bonds dedicated for construction
of capital improu�m�nts not expended i,�ithin the
earliest of the follo�ing periods will be
in�ested at a yield not materially I�igh�r than
the yield on the Bonds :
a) as of the date of substantial (i . e .
90°�) completion of tl�e im{�ro��m�nts to
the System, �heth�r or not �ully paid
for ;
b) an amount equal to the proceeds of the
Bonds has b�en spent on impro�ements to
the System (euen if from othFr sources ) ;
c) as of' three y�ars from th� date of
issue of the Bonds ; or
d) three years from the date construction
of the impro�em�nts to the System
begins .
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7 . The City will not make any in�estment which will
constitute a "prohibited payment" as defined in `-'
Section 1 . 103-15AT of the United States Treasury
Department Regulations , and will make appropriate
annual calculations of the yield on in�estments
of funds associated with the Bonds and make
appropriate repayment of excess earnings in
accordance with applicable federal la�.
8 . The City will perform all obligations required by
la� to assure that interest on the Bonds remains
exempt from federal income taxes so long as any
of the Bonds remains outstanding and unpaid .
ARTICLE X
ADDITIONAL BONDS
Section 1001 . Prior Lien Bonds . The City co�enants
and agr�es that so long as any of th� Bonds remain outstanding
and unpaid , the City �ill not issue any additional bonds or
other debt obligations payabl� out of th� re�enues of the
System or any part thereof which are superior to the Bonds .
Section 1002 . Parity Lien Bonds . The City covenants
and agrees that so long as any of the Bonds remain outstanding '''
and unpaid , the City will not issue any additional bonds or
other long-term obligations payable out of the revenues of the
System or any part thereof which stand on a parity or �quality
�ith the Bonds unless all of the following conditions are met :
(a) The City shall not be in default in the payment
of principal of or interest on the Bonds or in making any
payment at the time required to be made into the r�spectiue
funds and accounts created by and referred to in this
Ordinance ; and
(b) The City shall obtain a certificate of the
Consulting Engineer showing either of the follo�ing :
(i) The annual net re�enues deriued by the City
from the operation of the System, such net re��nues
being defined as the gross revenues less only the
r�asonabl� expens�s of operation, maintenance and
repair of the System but before other payments or
charges , for the fiscal y�ar immediately preceding the
issuance of additional bonds shall ha�e been equal to
at least 125% of the maximum amount required to be
paid out of said re�enues in any succeeding fiscal
year on account of both principal and inter�st
becoming due with respect to al.l Se�erage System
reu�nue obli ations of the Cit �
9 y , including the
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�, •additional bonds proposed to be issued . In
determining the net re�enues of the Syst�m for the
purpose of this subsection, the Consulting Engineer
may adjust said net re�enues by adding thereto, in the
e�ent the City shall ha�e made any increase in rates
for the use and seruices of the System and such
increase shall not ha�e been in effect during all of
the fiscal y�ar immediately preceding the issuance of
additional bonds , the amount, as estimated by the
Consulting Engin�er, oF the additional net reuenues
�hich would ha�e resulted from the operation of the
System during said preceding fiscal year had such rate
increase been in effect for the entire pFriod ,
(ii) The estimat�d annual net r�v�nues deri�ed by
the City from the operation of the System, as defined
abo�e , for the fiscal year immediat�ly follo�ing the
date of issue of such additional bonds shall be equal
to at least 125°� of the maximum amounl- r�quired to be
paid out of said net reuenues in any succeeding fiscal
year on account of both principal and interest
be.coming due with respect to all Se�erage System
re�enue obligations of the City , including the
additional bonds proposed to be issued . In
determining the amount of estimated net re�enues of
,� the System for the purpose of this subsection, the
Consulting Engin�er may adjust said �stimated net
revenues by adding thereto any cstimated increase in
net r�uenues resulting from any incrcase in rat�s for
the use and ser�ices of the System �hich , in the
opinion of th� Consialting Engin�er , arc �conoinically
feasible , and reasonably considered n�cessary bas�d on
projected operations of the Syst�m.
Additional revenue bonds of the City issued under the
conditions set forth in this Section shall stand on a parity
with the Bonds and shall enjoy completF equality or lien on and
claim against the re�enu�s of the Syst�m �ith the Bonds , and
the City may make equal pro�ision for paying said bonds and the
inter�st thereon out of the Reu�nue Fund and may lik�wise
pro�ide for the creation of reasonable principal and interest
accounts and bond reser�e accounts for th� payment of such
additional bonds and the interest there.on out of moneys in the
R���nue Fund .
Section 1003 . Junior Lien Bonds . Nothing in this
Section contained shall prohibit or restrict the right of the
City to issue additional revenue bonds or other reuenue
obligations for the purpose of �xtending , impro�ing , enlarging ,
repairing or altering the System and to pro�ide that the
principal of and interest on said re�enue bonds or obligations
^ shall be payable out of thF reuenuFs o� the System, pro�ided at
the tim� of the issuance of such ad<iitional revenue bonds or
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obligations the City shall not be in default in the performance
of any co�enant or agreement contained in this Ordinance, and �-'
pro�ided further that such additional revenue bonds or
obligations shall be junior and subordinate to the Bonds so
that if at any time the City shall be in default in paying
either interest on or principal of the Bonds , or if the City
shall be in default in making any payments required to be made
by it under the pro�isions of paragraphs (a) , (b) and (c) of
Section 702 of this Ordinance , the City shall make no payments
of either principal of or interest on said junior and
subordinate re�enue bonds or obligations until said default or
defaults be cured . In the e�ent of the issuance of any such
junior and subordinate revenue bonds or obligations , the City ,
subject to the prouisions aforesaid , may make pro�ision for
paying the principal of and interest on said re�enue bonds or
obligations out of moneys in th� R��enue Fund .
Section 1004 . Refunding Bonds . The City shall have
the right , if it shall find it desirable , to refund any of the
Bonds under the pro�isions of any la� then a�ailable . Said
Bonds or any part thereof may be refunded and the refunding
bonds so issued shall enjoy complete equality of pledge with
any of the Bonds which are not refund�d, if any , upon the
reuenues of the System; pro�ided , howe�er, that if only a
portion of th� Bonds be r�fund�d and if said Bonds are refunded
in such manner that the refunding bonds bear a higher rate of
interest or become du� on a dat� earlier than that of the Bonds `�'
which are refunded, then said Bonds may bF refunded only by and
with the written consent of the Holders of a majority of the
Bonds not refunded .
ARTICLE XI
DEFAULT AND REMEDIES
Section 1101 . Acceleration of Maturity in E�ent of
Default . The City co�enants and agr�es that if it shall
default in the payment of the principal of or interest on any
of the Bonds as the sam� shall b�come due , or if the City or
its go�erning body or any of the officers , agents or employees
thereof shall fail or refuse to comply with any of the
prouisions of this Ordinance or of the Constitution or statutes
of the State of Missouri , or oF this Ordinance and such default
shall continue for a period of 30 days , then, at any time
th�reafter and while such default shall continue , th� holders
of 25°� in principal aRiount of the Bonds then outstanding may ,
by written notice to the City filed in th� office of the City
Clerk or deli�ered in person to said City Clerk , declare the
principal of all Bonds then outstanding to be due and payable
immediately , and upon any such declaration giuen as aforesaid ,
all of said Bonds shall become and be immediately due and
payable , anything in this Ordinance or in the Bonds contained ''�
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^ to the contrary not�ithstanding . This pro�ision, ho�ever, is
subject to the condition that if at any tim� after the
principal of said outstanding Bonds shall have been so declared
to be due and payable , all arrears of interest upon all of said
Bonds , except interest accrued but not yet due on such Bonds ,
and all arrears of principal upon all of said Bonds shall ha�e
been paid in full and all other defaults , if any , by the City
under the prouisions of this Ordinance and under the pro�isions
of the statutes of the State of Missouri shall ha�e been cured ,
then and in e�ery such case the Holders of a majority in
principal amount of the Bonds then outstanding , by written
notice to the City gi�en as hereinbefore specified , may rescind
and annul such declaration and its consequences , but no such
rescission or annulment shall extend to or affect any
subsequent default or impair any rights consequent thereon .
Section 1102 . Remedies . The pro�isions of this
Ordinance, including the covenants and agreements herein
contained , shall constitut� a contract b�t�een the City and the
Holders of the Bonds , and the Holder or Holders of not less
than 10°� in principal amount of the Bonds at the time
outstanding shall ha�e the right for the equal benefit and
protection of all holders of Bonds similarly situated :
(a) by mandamus or other suit, action or proceedings
^� at law or in equity to enforce the rights of such Holder or
Holders against the City and its officers , agents and
�mploy�es , and to require and compel duties and obligations
required by the pro�isions of this Ordinance or by the
constitution and la�s of the State of Missouri ;
(b) by suit, action or other proceedings in equity or
at law to require th� City , its offic�rs , agents and �mploy�es
to account as if they �ere the trustees of an express trust; and
( c) by suit, action or oth�r proce�dings in equity or
at la� to enjoin any acts or things which may be unlawful or in
uiolation of the rights of the Holders of the Bonds .
Section 1103 . Limitation on Riqhts of Bondholders .
No on� or mor� bondholders secur�d h�r�by shall haue any right
in any manner whatever by his or their action to affect ,
disturb or prejudice th� security grant�d and prouided for
herein , or to enforce any right hereunder , except in the manner
herein pro�ided , and all proc��dings at la� or in �quity shall
be instituted , had and maintained for the equal benefit of all
holders of such outstanding Bonds .
Section 1104 . Remedies Cumulati�e , No remedy con-
ferred herein upon the bondhold�rs is intend�d to be exclusi�e
of any other remedy , but each such remedy shall be cumulatiue
^ and in addition to e��ry other remedy �nd may b� exercised
�ithout exhausting and �ithout regard to any other remedy
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conferred herein . No wai�er of any default or breach of duty y,
or contract by the holder of any Bond shall extend to or affect
any subseque.nt default or breach of duty or contract or shall
impair any rights or remedies thereon . No delay or omission of
any bondholder to exercise any right or power accruing upon any
default shall impair any such right or po�er or shall be
construed to be a wai�er of any such default or acquiescence
therein . Euery substanti�e right and �very remedy conferred
upon the holders of the Bonds by this Ordinance may be enforced
and exercis�d from tim� to time and as often as may be deemed
expedient . In case any suit, action or proceedings taken by
any bondholder on account of any default or to enforce any
right or exercise any remedy shall haue been discontinued or
abandoned for any r�ason, or shall have been determined
ad�ersely to such bondholder, then , and in every such case , the
City and the holders of th� Bonds shall b� restored to their
former positions and rights hereunder , respecti�ely , and all
rights , remedies , pow�rs and duties of th� bondholders shall
continue as if no such suit, action or other proceedings had
b�en brought or tak�n .
Section 1105 . No Obliqation to Le�v Taxes . Nothing
contained in this Ordinance shall be construed as imposing on
the City any duty or obligation to le�y any taxes either to
meet any obligation incurred her�in or to pay the principal of
or interest on the Bonds .
�
F.�xrTICLE XII
DEFEASANCE
Section 1201 . Defeasance . When all of the Bonds
shall haue b�en paid and discharg�d , then the requir�ments
contained in this Ordinance and the pledgF of reuenues made
h�reunder and all oth�r rights grant�d hereby shall t�rminate .
Bonds shall be deemed to haue be�n paid and discharged �ithin
the m�aning of this Ordinance if there shall haue b�en
deposited with the Paying Agent and Bond Registrar, or other
bank located in th� State of Missouri and hauing full trust
powers , at or prior to the maturity or redemption date of said
Bonds , in trust for and irre�ocably appropriated thereto ,
moneys and/or direct obligations of, or obligations the
principal of and interest on which are guaranteed by , the
United States of America �hich , together �ith the interest to
be earned on any such obligations , will be sufficient for the
payment of the principal of said Bonds , the redemption premium
thereon; if any , and interest accru�d to the dat� of maturity
or redemption, as the case may be , or if default in such
payment shall haue occurred on such date , th�n to the date of
the tender of such payments , pro�ided , ho�e�er, that if any
such Bonds shall be r�deemed prior to the maturity thereof, the .�
City shall have elected to redeem such Bonds and notice of such
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� redemption shall ha�e been gi�en . Any moneys and obligations
�hich at any time shall be deposited with the Paying Agent and
Bond Registrar or other bank by or on behalf of the City , for
the purpose of paying and discharging any of the Bonds , shall
be and are hereby assigned , transferred and set ouer to the
Paying Agent and Bond Registrar or other bank in trust for the
respecti�e holders of the Bonds , and such moneys shall be and
are hereby irreuocably appropriated to the payment and
discharge hereof . All moneys deposited with the Paying Agent
and Bond Registrar or other bank shall be de�med to be
deposited in accordance �ith and subject to all of the
pro�isions contained in this Ordinance .
ARTICLE XIII
AMENDMENTS
Section 1301 . Amendments . The rights and duties of
the City and the bondholders , and the terms and pro�isions of
the Bonds or of this Ordinance , may be amended or modified at
any time in any r�spect by ordinance of the City with the
�ritten consent of the holders of not less than 66-2/3°� in
principal amount of the Bonds then outstanding , such consent to
be e�idenced by an instrument or instruments executed by such
^� holders and duly acknowledged or proued in the manner of a d�ed
to b� recorded , and such instrument or instruments shall be
fil�d �ith the City Clerk , but no such modification or
alteration shall :
(a) extend the maturity of any payment of principal
or int�rest due upon any Bond ;
(b) effect a reduction in the amount which the City
is required to pay by �ay of principal of or
interest on any Bond ;
(c ) permit the cr�ation of a lien on the re�enues of
the System prior or equal to the lien of the
Bonds or additional bonds h�reafter issued on a
parity with the Bonds as hereinbefore pro�ided ;
(d) permit prefer�nc� or priority of any Bonds o�er
any other Bonds ; or
(e) reduce the perc�ntage in principal amount of
Bonds required for the written consent to any
modification or alt�ration of the pro�isions of
this Ordinance .
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Any pro�ision of the eonds or of this Ordinance may ,
howe�er, be amended or modified by ordinance duly adopted by �-'
the go�erning body of the City at any time in any respect �ith
the written consent of the holders of all of the Bonds at the
time outstanding .
Any and all modifications made in the manner herein-
above provided shall not become effecti�e until there has been
filed �ith the City Clerk a copy of the ordinance of the City
hereinabo�e pro�ided for , duly certified , as �ell as proof of
consent to such modification by the holders of not less than
66-2/3% in principal amount of the Bonds th�n outstanding . It
shall not be necessary to note on any of the outstanding Bonds
�ny reference to such amendme�t or modification .
ARTICLE XIV
MISCELLANEOUS PROVISIONS
Section 1401 . Notices Consents and Other Instruments
by Bondholders . Any notice , consent, r�quest, direction,
approval , objection or other instrument required by this
Ordinance to be sign�d and executed by the bondholders may be
in any number of concurre.nt �ritings of similar tenor and may
be signed or executed by such bondholders in person or by ag�nt
appointed in �riting . Proof of the execution of any such `-''
instrum�nt or of the writing appointing any such agent and of
the o�nership of Bonds , if made in the follo�ing manner, shall
be sufficient for any of the purpos�s of this Ordinance , and
shall be conclusi�e in favor of the City and the Paying Agent
and Bond Registrar with r�gard to any action taken , suffer�d or
omitted under any such instrument , namely :
(a) The fact and dat� of the �xecution by any person
of any such instrument may be pro�ed by a
certificat� of any offic�r in any jurisdiction
�ho by la� has power to take acknowledgments
within such jurisdiction that the person signing
such instrument acknowledged befor� such officer
the ex�cution thereof, or by affida�it of any
�itness to such execution .
(b) The fact of own�rship of Bonds , the amount or
amounts , numbers and other identification of
Bonds , and th� date of holding the same shall be
proued by the registration books of the City
maintained by the Paying Agent and 8ond R�gistrar .
Section 1402 . Se�erability . If any section or other
part of this Ordinance , �hether large or small , shall for any
reason be held in�alid , the in�alidity thereof shall not affect
the �alidity of the other pro�isions of this Ordinance . �`''
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�
.
�'"` Section 1403 . Governing La�. This Ordinance shall be
go�ern�d exclusi�ely by and constru�d in accordance with the
applicable laws of the State of Missouri .
Section 1404. Effecti�e Date . This Ordinance shall
take effect and be in full force 10 days from and after its
passage by the City Council .
PASSED by the City Council of the City of Cape
Girardeau , Missouri , this 5th day of March, 1986 .
(S e a 1) J -� ;--'��
Mayor
ATTEST :
City Clerk
�
�
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� CERTIFICATE
STATE OF MISSOURI )
) SS.
COUNTY OF CAPE GIRARDEAU )
I , the undersigned, City Clerk of the City of Cape
Girardeau, Missouri , her�by certify that the abov� and
foregoing constitutes a full , true and correct copy of
Ordinance No . 304 duly adopt�d by th� governing body of the
City at a m�eting duly and rFgularly held on March 5 , 1986 ;
that said Ordinance has not been modified , amended or rep�al�d ,
and is in full force and effect as of the date hereof; and that
the same is on file in my office .
�-,
WITNESS my hand and offici.al seal this 5th � day of
March, 1986 .
.
(SFal) City Clerk
�
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