HomeMy WebLinkAboutORDINANCE NO. 432 BONDSAI
Ordinance Book City of ho'burg, Rexburg, Idaho
ection lines acceptable to the City and connect the same to an existing city main sewer line
at a place to be determined by the City Council all at the cost and expense of said subdivider.
Water and sewer bills shall be combined and billed month y own o f
pa each building conn
acted to they WAIS collection syste sh be deemed pri marily l iable fortheymen o sew r ----
-- -- -
and wa
_ ter �ge to arrangements with the oimer, a tenan may pay_ such char -- _a
nd
e duce the oo rner's liability by the amount of an sucli --
—_ _ payment. A cceptance by the City o f such
ryment fro a tenant all not constitute - a waiver - 0 - 61Q of - the - owner Is primary liability
r
o charges not paid b,,, tenant. -
- -- -- - —_— - - --
All bills for water service or facilities, or sewer service or facilities, or both, shall be
mailed to customers on a regularly established day of each and every month, in the month next succeed-
ing the month in which the service was rendered. Bills shall be payable as of the date mailed and
shall be deemed delinquent if not paid within fifteen days thereafter. Service may be subject to
discontinued if the payment of a bill is more than sixty days delinquent. Sewer charges shall be
billed jointly with charges for water service of facilities. A delinquency charge of ten per cent
shall be added to each delinquent bill for each period of thirty days delinquency or fraction there-
of. In no case shall payment be .accepted from a user of both such services unless payment is made
in full for each such service. Upon disconnection for non- payment f bills, recone_ction shall be
;1.50 for each water connection and 05.00 for each serer connection.,
Section 2. All ordinances and parts of ordinances in conflict herewith are hereby repealed.
Section 3. This ordinance shall lake effect immediately upon its passage, approval and public-
ation.
Adopted and approved December 191th, 1962.
ATTEST:
Mayor.
City Clerk
(Seal)
ORDINANCE No. 432
AN ORDINANCE AUTHORIZING THIS ISSUANCE OF THE JOINT WA70
AND SEWER REVENUie BONDS OF THE CITY OF R>v'XBURG, DATED JAFI-
UARY 1 1903, IN THE AGGIEAGATE PRIr CIPAL AMOUNT OF zp330,
000.00, PAYABLE SOLEY FROM THE RATES AND CHARGES FOR THE
USE OF, AND THE SEaVICE RENDERED BY, THE MUNICIPAL JOINT
WATER AND SEWER SYSTEM, FOR THE PURPOSE OF PROVIDING FUNDS
TO DEFRAY THE COST OF IMPROVING, BETTERING AND EXTENDING
THE MUNICIPAL SEWER COLLECTION SYSTEM: PROVIDING THE FOIST+!,
TERMS AND CONDITIONS OF SUCH BONDS, THE MANNER AND TERMS
OF THEIR ISSUANCE, THE MANNER OF EXECUTION THEREOF, THE
METHOD OF PAYING THE BONDS, AND THE SECURITY THEREFOR:
PROVIDING FOR THE DISPOSITION OF THE REVENUES DERIVED FROM
SAID SYSTEH: PRESCRIBING OTHER DETAILS CONCERNING SaID
BONDS AND SAID SYSTEM, INCLUDING BUT HOT LIMITED TO COVEN*
ANTS AND AGREEMENTS IN CONNECTION THERWITH: RATIFYING ACTION
HERETOFORE TAKEN TOWARD IMPROVING, BETTERING AND EXTENDING
THE CITY'S JOPIT WATER AND SL "VILR STABILIZATION POND AND
INTERCEPTOR LINES, AND IMMPROVING, BETTERING AND EXTENDING
THE MENICIPAL SEWER COLLECTION SYSTEM: TOWARD THE ISSUANCE'
OF ITS JOINT WATER AND SEWER REVENUE BONDS THEREFOR, AND
TOWARD THE ISSUANCE OF ITS JOINT WATER AMD SEWER REVEI`!UE
BONDS THEREFOR, AND TOWARD HOLDING THE ELECTION ON SAID
BOND ISSUE: REPEALING ALL ORDINANCES IN CONFLICT HEREWITH:
AND DECLARING AM EMERGENCY AND PROVINDING FOR P_HE EFFECTIVE
DATE OF THIS ORDINANCE.
W HEREAS, the City of Rexburg (herein sometimes designated as the "City "), in the County of Mad-
ison and State of Idaho, is a municipal corporation duly organized and existing as a City of the
second class under the laws of the State of Idaho; and
WHEREAS, the City presently owns a sewer system, and a water system, and
-
WHEREAS, the interest of the City and of the inhabitants thereof, and the public intrest and
necessity, demand the contruction of a dewage stabilization pond and interceptor lines, and improve-
ment, betterment and extension of the municipal sewer collection systme; and
WHEREAS, the City has never pledged the revenues drived from the operation of said ; system
nor from said sewer system for the redemtion of revenue bonds payable from such revenues, or otherwise
with result that the net revenues to be drived from the operation thereof may be pledged lawfully and
irrevocably to secure the repayment of the City's joint water and serer revenue bonds issued for iLmprov-
_ A
Ordinance Book, City ®f Rexburg, Rexburg, Idaho
1951, and all laws threunto enabling; and
WHEREAS, the City had determined, and does hereby determine, to issue such joint water and sewer
revenue bonds payable from such revenues for the purpose of improving, bettering and extending the City's
joint water and sewer system by construction of a sewage stabilization pond and interceptor lines, and
improving, bettering and extending the municipal sewer collection s,rstem; and
WHEREAS, the City has further determined, and does hereby determine, that said water system or
facilities and said sewer system or facilities shall constitute and be operated as a single public utility
designated as the City's joint water and sewer system (herein sometimes designated as the "joint system"
or as the "system "); and
WHEREAS, said revenue bonds shall not be a debt of the City and it shall not be liable thereon,
nor shall said bonds be payable out of any funds other than the revenue from said system pledged to
the payment thereof: and
WHEREAS, in the judgment of said City Council, the danger to the public health arising from the
lack of proper sanitary facilities will be abated by such extension of said system; and
WHEREAS, at a special, municipal bond election duly held in the City on Tuesday, the 31st day
of July, 1962, there was submitted to the qualified electors of the City the following question:
''Shall the City of Rexb,trg, Idaho, be authorized to issue and
sell its negotiable, ,coupon; water and sewer revenue bonds, in
the aggregate principal amount of $330,000.00, or su ❑.ucli LL, :.o_
as may be necessary, in one or more series, bearing interest at
a rate not to exceed six per cent (6 %) per annum, maturing serially
commencing not later than two and ending not later than twenty -
one years from the date of said bonds, being subject to prior
redemption ten years from date or on any interest payment date
thereafter, upon such terms and conditions as the City Council
may determine, amd payable solely from the revenues of the water
and sewage works in accordance with the Revenue Bond Act of Idaho,
for the purpose of constructing a sewage stabilization pond and
interceptor lines, and improving, bettering and extending the
municipal sewer collection system in accordance with the provis-
ions of Ordinance No. 430, signed and approved the 6th day of
June, 1962 ?"
and
WHEREAS, said question for the issuance of said revenue bonds was approved by the affirmative vote
of two- thirds of the qualified electors of the City of Rexburg voting at said election'; and
WHEREAS, the Council has determined, and does hereby determine, that it is necessary and for the
best interests of the City and the inhabitants thereof that said bonds be so issued.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF REXBURO, IDAHO:
Section 1. Ratification. That all action heretofore taken (not inconsistent with the provisions
of this ordinance by the City Council and the officers of the City of Rexburg, directed toward improv-
ing, bettering and extending the City's joint water and sewer system by the construction of a sewage
stabilization pond and interceptor lines, and improvingg bettering and extending the municipal sewer
collection system, toward issuing the City's joint water and sewer revenue bonds therefor, and toward
holding the special, municipal, bond election for that purpose on Tuesday the 31st day of July, 1962,
be, and the same hereby is ratified, approved and confirmed.
Section 2. Bond Election That the City submitted said water and sewer revenue bond question at
said special municipal bond election held in the City on Tuesday, the 31st day of July, 1962, to the
qualified electors of the City; that more than two- thirds (2/3) of the qualified electors voting on
said question cast ballots for the issuance of said revenue bonds; that the result of said election
is hereby so declared; and that said election was held and conducted in due compliance with law.
Section 3• Improvements Authorized. That the City's joint water and sewer system shall be, and the
same is hereby ordered to be, improved, bettered and extended by the construction of a sewage stabili-
zation pond and interceptor lines, and improvement, betterment and extension of the municipal sewer
collection system; the same is hereby authorized, at a total cost of not exceeding $411,000.00; and
the necessity thereof is hereby so declared.
Section 4. Description of Improvements. That such improvements, betterments and extensions, brief-
ly and generally described, shall consist of the construction of a sewage stabilization pond and inter-
ceptor lines, and improvements, betterments and extensions to the municipal sewer collection system,
including without limiting the generality of the foregoing, appurtenances necessary, useful of conven-
ient for the collection of sewage of the City.
Section 5. References to Further Material. That such improvements are more specifically shown and
described in the report, maps, plans and specifications prepared therfor by the Consulting
Engineer of the City, Cornell, Howland, Hayes g, Merrjfield, of Boise, Idaho; and reference for further
details is hereby made to said preliminary report, maps, plans and specifications now on file and
- available for inspecion in the office of the City Clerk.
Section 6. Necessity of Bonds and Way of Payment That for the purpose of providing funds to defray
in part the cost of so improving, bettering and extending the City's joint water and sewer system, it
is hereby declared necessary that the City issue its "City of Texburg Joint Water and Sewer Revenue Bonds,
Series January 1, 1963." in the aggregate principal amount of $330,000.00, said bonds to be payable,
both as to principal and inters, solely from the net revenues derived from rates and charges for the
.. . __ L__ _.. ._.,.+ ... + r,-;no +ha arnss revenues after
Urdinance Hoge, City of Rexburg, Rexbur� Idah
o.,smow.
bettering and extending the municipal ,joint water and sewer system, pursuant to Chapter 47, Session
Laws of Idaho, 1951, cited as the Revenue Bond Act of the State of Idaho, and as sections 50 -2.812 to
9 - ?27, both inclusive, Idaho Code, 1957 Republication of Volume 9, and all laws thereunto enabling.
Section 7. Authorization of Bonds. That in order to provide funds to defray in part the cost of
so improving, bettering and extending the City's joint water and sewer system by construction of a sew-
age st-- _'Kiza.tion pond and interceptor lines, and improving, bettering and extending the municipal sewer
collection system, the revenue bonds cf the City designated "City of Rexburg Joint Water and Sewer Reve-
nue Bons, Series January 1, 1963," are hereby authorized to be issued in the aggregate principal amount
of $330,000.00.
Section 8. Bond Details, That said bonds shall bear date as of January 1, 1963, consisting o!' 330
bonds in the denomination. of $1,000,00 each, numbered consecutively from 1 to 330, both inclusive, bear-
ing interest until maturity at a rate or rates not exceeding six per centum (6;'1) per annum, evidenced
until their respective maturites by interest coupons attached to said bonds, payable semi - annually, com-
mencina on the first day of July, 19" , and thereafter on the first days of January and July in each year
and being numbered and maturing serially in regular numerical order and being payable on the first day
of January in each of the designated years and amounts, as follows:
Bond Numbers
Years
Amounts
( All Inclusive
Maturing
Maturing
1 —
5
1964
:5 5, 000.00
6
- 12
_965
7,000.00
13 -
20
1966
8,000.00
21 -
29
1967
9,000.00
30 -
39
1968
10
40 -
50
1969
11,000.00
51 -
62
1970
12
63 -
76
1971
14,000.00
77-
91
1972
15,000.00
92 -
107
1973
16,000.00
103
- 124
1974
17,000.00
125 --
142
1975
189000.00
143
- 161
1976
19,000.00
162
- 131
1977
20
182
- 202
1978
21,000.00
203
- 225
1979
23,000.00
226
- 250
1930
25,000,00
251
- 275
1981
^25,000.00
276
- 302
1982
27,000,00
303
- 330
1983
28,000.00
The Principal. of and the interest accruing on said bonds shall be payable in lawful money of the
United States of America, without deduction for exchange or collection charges, at the Rexburg Branch
of the First Security Bank of Idaho, in Rexburg, Idaho. In the event any of said bonds shall not be
paid upon presentation at maturity, it shall continue to draw interest at the rate of six per centum
(6`'.) per annum until the principal thereof is paid in Full.
Section 9. Prior Redemption That bonds numbered 108 to 330, both inclusive, maturing on aid
after the first day of January, 1974, are subject to prior redemtion, in whole or in part, in inverse
numerical order, at the option of the City, on the first day of January, 1973, or on any interest pay-
ment date thereafter prior to maturity, at a price equal to the principal amount thereof, accrued interest
to the redemtion date, and a premium of ° per bond so redeemed. Notice of rederntion shall be given
by the City Treasurer, in its name, by publication of such notice at least once, not less then thirty
days nor more than sixty days prior to the rederntion date, in,a newspaper of general circulation in
said City, and a copy of such notice shall be sent by regiestered, firstclass, po� tage prepaid, mail
at least thirty days prior to the rederntion date:
A. To the original purchaser of the bonds (or to the managing partner of any purchsing syndicateO,
B. To Edward L. Burton &. Company, & Company, Salt Lake City 1, Utah, i.e., the City's fiscal agent,
and
C. To the Rexburg Branch of the First Security Bank of Idaho, in Rexburg, Idaho, i.e., the above
named paying agent bank.
Such notice shall specify the number or numbers of the bonds to be so redeemed (if less than all are to
be reddeemed) and the date fixed for rederntion, and shall further state that on such redemtion date there
will become and be due and Payable upon each bond so to be redeemed, at the Rexburg Branch of the First
Security Bank of Idaho, the principal amount, thereof with accured i terest to the redemption date, and
the stipulated premium, and that from and after such date interest will cease to accrue. Notice having
been given in the manner hereina.bove provided, the bond or bonds so called for rederntion shall become due
and payable on the rederntion date so designated, and upon presentation thereof at said benk, together
with the appurtenant coupons maturing subsequent to t'.ie redemtion date, the City will pay tire bond or
bonds so called for redemption.
Section 10. Negotiability That, subject to the provisions specifically made or necessarily implied
herein, the revenue bonds hereby authorized shall be fully negotiable acid shall have all the nualities of
negotiable coupon paper, arid the. holder or holders thereof shall possess all rights enjoyed by the holders
of negotiable instruments under the provisions of the Negotiable Instruments Law.
Section 11. Form and Execution of Bonds and Coupons That said bonds shall be payable to bearer
and executed and sued in the corporate name of the City by its Mayor and each bond shall be counter-
signed by the Treasurer thereof, and shall be attested by the signature of the Clerk under the official
seal of the City. The interest coupons shall be also payable to bearer, shall be attached to each of
such bonds, and shall be numbered from one upwards, consecutively, commencing with that coupon first.
maturing, and all such interest coupons shall state on the face thereof the amount thereof, the name
of tha (:i tin tho i-lcn +.i f =vino c�ri c ^c icc,ro anfl nnmhor nf' h.tip hnn rl in lrri'i t?h it, 7S at - ,ached. and each such
- m r s
�r
Ordinance Boob:, City of Rexburg, Rexburg, Idaho
or all of the persons whose signatures appear thereon shall have ceased to fill their respective offices.
Section 12. Incontestable Recital. That pursuant to Sectio 12 of the Revenue Bond Act the bonds
herein authorized shall recite that they are issued pursuant to said act, which recital shall be. conclusive
evidence of their validity and of the regularity of their issuance.
Sectio 13. Special Obligations. That all of said bonds, together with the interest accruin there-
on, shall be payable and collectible solely out of the net income to be derived from the operation of the
system, the income of which is so pledged; the holder or holders thereof may not look to any general or
other fund for the payment of principal and interest on such obligations, except the designated special
funds pledged therefor; and such bonds shall not constitutional or statutory provision or limitation; nor
shall they be considered or held to be general obligations of the City.
Section 14. Forms of Bonds and Coupons That said bonds, the coupons thereto attached, Lnd the
certificate to be endorsed theron shall be in substantially the folloiring form.
(Form of Bond)
STATE OF IDAHO
UNITED STATES OF AMERICA
CIT`I OF REXBURG
JOINT WATER AND SEVER REVLNUE BOND
SERIES JANUARY 1 1963
NO.
COUNTY OF ;MADISON
$1,000.00
The City of Rexburg, in the County of Madison and State of Idaho,
I
or value received, hereby promises to pay to the bearer hereof, solely
from the special funds provided therefor, as hereinafter set forth, on the
first day of January, 19_, the principal sum. of
ONE THOUSAND DOLLARS
and to pay from said special funds interest hereon from date until maturity
at the rate of
per centum ( �)
per annum,*(evdenced until maturity by one set of coupons designated °A",
plus additional interest at the rate of percentum
( %) per annum from the first day of , 1963, to
the first day of , 19_, evidenced by a second set of
coupons designated VB which are presentable for payment separately and
apart from other coupons, all inters being)* payable semiannually, commenc-
ing on the first day of July, 1963, and thereafter on the first days of
January and July, in each year, upon presentation and,surrender of this
bond and the annexed interest coupons as they severally become due. If
upon presentation at maturity, payment of this bond is not made as here-
in provided, interest shall continue at the rate of six per centum (61,
per annum until the principal hereof is paid in full. Both principal
end interest are payable in lawful money of the United States of America,
without deduction for exchange or collection charges, at the Rexburg Branch
of the First Security Bank of Idaho, in Rexburg, Idaho.
* bond is one of a series subject to prior redemtion in inverse
numerical order at the option of the City on Januaryl, 1973, or on any interest
payment date thereafter, at a price equal to the principal amount thereof,
accured interest to the redemtion date, and a premium of "25.00 per bond so
redeemed. Redemption shall be made upon not less than thirty days prior
notice by publication in a newspaper of general circulationiin the City,
in the manner and upon the conditions provided in the ordinance authoriz-
ing the issuance of this bond.)
Payment of this bond and the interest theron shall be made solely
from, and as security for such payment there are pledged, pursuant to
Ordinance No. 432, duly passed and approved the 2nd day of January 1963,
two special funds identified as the "City of Rexburg Joint Water and Sew-
er Revenue Bonds, Series Januaryl, 1963m Interest and Bond Retirement
Fund,t{ into which the City covenants to pay from the revenues derived from
the operation of its municipal joint water and sewer system, after pro-
vision only for all necessary and reasonable expenses of the operation
and maintenance of said system, sums sufficient to pay when due the
principal of and the interest on the bonds of the series of which this is
one, and to create and maintain a reasonable and specified reserve for .
such purpose. For a description of said funds and the nature and extent
of the security afforded thereby for the payment of the principal of and
interest on said bonds, reference is made to said ordinance.
The City covenants and agrees with the holder of this bondand with
each and every person who may become the holder hereof that it will keep
and perform all the covenants of said ordinance, including but not limited
to its covenant against the sale or mortgage of said system or any part
thereof unless provision shall have been made for the payment of the princi-
pal of and the interest on the bonds of the series of which this is one,
its covenant that it will prescribe and collect rates, fees and charges.
_: H P
Ordinance Book, City of Rexburg -y, Rex OF U, Idaho
prescribe and collect rates, fees and charges, including the levy or assessment of such rates, fees, and
charges against governmental units or departments or agencies, including the state of Idaho and its sub-
divisions, for the servies and facilities Furnished by the municipal joint ;later and sewer system, and its
covenant that it will provied mehtods of collections and penalies, to produce revenues or earnings annually
to pay operating and maintenance charges, and one hundred forty per centum (11 %) of both the principal
of and the interest on bonds and anl other obligations payable from the revenues of the system, excluding
reserves therefor.
This bond and the series of which_it is one constitue an irrevocable first lien (but not necessarily
an exclusively first lein) on the net revenues derived from rates and charges for the use of, and the serv-
ices rendered by, the system. Bonds in addition to the bonds of the series of which this is one may be
issued pa.ybale from the net revenues of the system and having a lien thereon inferior and .junior to the lien,
or subject to designated conditions having a. lien theron on a parity whith the lien, of the bonds of the
series of which this is one, in accordance with the provisions of said ordinance.
This bond is one of a duly authorized issue of three hundred and thirty (330) bonds known as "City
of Rexburg Joint Water andStwer Revenue Bonds, Series Januaryl, 1963" for the purpose of providing funds
to defray in past the cost of improving, bettering and extending the City's Joint ;dater and Seder System
by construction of a sewage stabilization pond and interceptor lines, and improving, bettering and extend-
ing, the municipal sewer collection system, under the authority of and in full conformity with the Constitu-
tion and laws of the State of Idaho, and pursuant to an ordinance of the City adopted, published and made
law of the City prior to the issuance of this bond. The issuance of this bond was authorized by the aSfirma-
tive vote of more than two- thirds of the qualified electors of the City of Rexburg voting at an election
in the City on the 31st day of July, 1962),
This bond is subject to the conditions, and every holder hereof by accepting the same agrees with
the obligor and every susequent holder hereof, that (a) the delivery of this bond to any transfereee shall
vest title in this bond and in the interest coupons attached hereto in such transferee to the same extent
I
or all purposes as would the delivery under like circumstances of any negotiable instrument payable to
bearer; (b) the obligor and any agent of the obligor may treat the bearer of this bond as the absolute
owner hereof for all purposes, and shall not be affected by any notice to the contrary; (c) the principal
of and the interest on this bond shall be paid, and this bond and each of the coupons appertaining thereto
are transferable, free from and without regard to any equities between the obligor and the original or
any intermediate holder hero£ or any set -offs or cross - claims; and (d) the surrender to the obligor of any
agent of the obligor of this bond and of each of the coupons shall be a good discharge to the o'cli_= for
the same.
It is hereby recited that this bond and the series of which it is one are issued pursuant to the
Revenue Bond Act, being Chapter 47, Session Laws of Idaho, 1951, and all other laws thereunto enabling, and
this recital shall- be conclusive evidence of the validity of said bonds and the regularity of their issuance.
This bond and the series of which it is one do not constitute a debt of the City of Rexburg within the mean-
ing of any constitutional or statutory limitations or restrictions, and the City shall not be liable thereon,
nor is this bond payable out of any funds other than the revenue pledged For the payment thereof, but is
payable soley from the revenue so pledged. This bond and the is ue of which it is one, together with the
interest thereon, are exempt from ta_xarion under the laws of the State of Idaho, except transfer and estate
taxes.
It is further certified, recited and warranted that all requirements of law have been fully complied
with by the proper officers of the City of Rexburg in the issue of this bond.
Ifs TESTIDIO_'Iff WHEiiEOF, the City of Rexburg has caused this bond to be executed and signed in the
corporate name of the City of Rexburg by its Hayor, countersigned by the City Treasurer, and attested by
the City Clerk under the official seal of the City of Rexburg, and has caused the attached coupons to be
signed with the facsimile signature of "hie City Treasurer, which official by the execution of this bond
does adopt as and For his own proper signature his facsimile simature appearing on said coupons, all as of
the first, day of January 1963.
CITY OF RE„ BURG
' tilayo
Countersigned:
(SEAL)
City Treasurer
Attest
City Clerk
*(To be inserted in each bond, if any, bearing interest payable by two sets, i.e., nAu and "B ",
coupons.)
Is (To be inserted in bonds numbered 108 to 330, both inclusive, maturing on and after the- first
day of January, 1974.)
(End of Form)
(Form of Coupon)
Coupon
No. *
.inl,r
Ordinance Boob., L ;Ity of Rexburg, Rexburg, Idaho
collection charges, at the Rexburg Branch of the First Security Bank of Idaho, in Rexburg, Idaho, the
above designated amount solely from and secured by a pledge of two special funds created from the net
revenues derived from the operation of the municipal joint water and sewer system of the City, and provid—
ing for the payment of the semiannual interest on ist City of Rexburg Joint Mater and Sewer Revenue Bond,
Series Januaryl, 1963, and bearing
Bond
No.
(Facsimile Signature)
City Treasurer
*(Insert "Al' or "B" as well as the coupon number in each coupon, if the interest designated by
the purchaser is payable by two, rather than one, sets of coupons.)
"'(Insert in coupons maturing on and after Julyl, 1973, attached to bonds numbered 103 to 330,
both inclusive, maturing on and after Januaryl, 1974.)
(End of Form of Coupon)
(Form of Registration Certificate)
We, the undersigned, the duly appointed, qualified
respectively, of the City of Rexburg, Kadison County, Idaho,
been duly registered in permanent public record books kept
compliance with law, showing the number, rate of interst, da
and the names and addresses of the purchasers.
and acting City Clerk and City Treasurer,
do hereby certify that the within bond has
in our office for said purpose in full
to and amount of sale, when and where payable,
IN WITNESS IHREOF, we have hereunto set our hands and the seal of the City of Rexburg, Idaho,
as of the first day of January, 1963.
City Clerk
(SEAL) City Treasurer
(End of Form of Registration Certificate)
Section 15. Period of Facilities' Usefulness. That it is hereby determined and recited that the
period of usefulness of the facilities to be constructed or acquired with the proceeds of the bonds herein
authorized is not less than twenty years from the date of said bonds, i. e., from the first day of January,
1963.
Section 16. Disposition of Bonds and Bond Proceeds. A. Execution and Delivery. That the Mayor
and the City Clerk are herby authorized and directed to prepare and execute said bonds as herein provided.
When said bonds have been duly executed and sold, the City Treasurer shall deliver them to the lawful pur—
chaser thereof on receipt of the agreed purchase price.
B. Acquisition Account That except as herein otherwise specifically provided, the proceeds
derived from the sale of the bonds herein authorized shall be deposited promtly upon the receipt thei:eof
in a separate account in a bank designated by tie Council, which account shall be known as the "City of
Rexburg Joint Water and sewer Revenue Bonds, Series January 1, 1963, Construction and Other Acquistion
Account.'t herein sometimes designated the "Acquistion Account." The monies in the Acquisition Account, c
except as herein otherwise specifically provi ded, shall be used and paid out solely for the purpose of
defraying the cost directly or indirectly as permitted by law, of improving, bettering and extending the
City's ,joint water and sewer system by contruction of a sewage stabilization pond and interceptor linesi
and improving, bettering and extending the municipal sewer collection system, to serve the City, its in—
habitants and the territory adjacent thereto. Monies shall be withdrawn from the Acquistion Account for
the purpose of defraying such cost only upon warrants or checks drawn and signed by the Mayor of said
City and its Clerk. No warrant for any sum for construction work shall be issued until the Council has
received engineering appproval certifying that such sum is due and owning for work for the system, nor
shall such warrant be issued until the Council has adopted a resolution accepting such certificate and
directing the drawing of such warrant or check. The designated approval shall be by the Project Engineers
who shall be ither, Cornell, Howland, Hayes & Merryfield, consulting engineers of Boise, Idaho, heretofore
retained by the City for the purpose of supervising the improvement, betterment and extension of the
system, or such successor engineers as may be appointed by the Council with the ap3raval of the original
purchaser (or managing partner of any purchasing syndicate) of the bonds. The appproval of the Project
Engineers must be in the form of a written certificate stating that the payment therein approved is being
made to pay for materials supplied or work satisfactorily completed in sibstantial accordance with the
plans and specifications for the work involved. Such certificates of approval shall be in appropriate
form, shall be signed by the Project Engineers or their duly accredited representative, and shall be
filed with the City Clerk prior to the time such payment are authorized by resolution.
C. Completion of Project That when such work shall have been completed in =laccordance with such
plans and specifications, and when all amounts due therefor. including all nrnner incidental exranges_
4 t� A
k�
O rdinance Book, City of Rexburg, Rexburg, Idaho
D. Initial Reserve Fund Deposit That `515,000.00 of the bond proceeds, shall be promptly deposited
into the "Reserve Fund, 11 as an initial contribution to said Fund, to be suppleraentd pursuant to paragraph
C of Section 19 of this ordinance.
E. Accrued Interest and Premium That all monies received as accuued intrest at the titre of del-
ivery of said bonds from the sale thereof and any premium therefor shall be deposited into the Bond Fund,
to apply on the payment of interest next due on the bonds payable therefrom.
F. Purchaser Not Responsible That the purchaser of tine bonds herein authorized, however, shall
in no manner be responsible for the aPllication disposal 1�y the City or by its officers of the finds de-
rived from the sale thereof or of any other funds herein designated.
Section 17. Fiscal Year Tilat for the purpose of this ordinance the municipal joint water and
sewer system shall be operated upon a fiscal year basis commencing on the first day of January in each
year and ending on the last da-r of December of the same
Section 13. Income Fund That for the purposes of this ordinance, a special fund and bank acc-
ount in hereby authorized and shall be maintained and kncawu as the 'City of Rexburg Gross Income Joint
,•later a id Sewer System Fund." (herein sornetime.s referred to as tine ItIncome Fur-d. So long as any o
the bonds hereby authorized shall be outstanding, either as to principal or interest, all income an
revenues derived from the operation of the system shall be deposited into the Income Fund.
Section 19. Administration, of I nco me Fund That so long as any of the bonds hereby authorized
shall be outstanding, wither as to principal or interest, the following pa�vnen
Income Fund: te shall be made from the
A.
0 :4 Expense Firstly, as a first charge thereon, there shall be set aside each month
as an operation and maintenance fund, such reasonable percentage of the Income Fund as the Council shall
_d_eh2m to be reasonable and necessary for tine proper operation and maintenance of the system, - dila , "" .
said monies shall be used solely therefor, - includin- but not limited to the cost of all salaries, nec-
essary repairs, labor, materials, adequate insurance, and bank collection and other proper charges con -
cerning the accounts and revenue bonds, and other obligations in connection with the System. Any Sur=
plus remaining at the end of tin fisc a- and not needed for operation and maintenance purposes, shall
be transferred to the Income Fund and be used for the purposes thereof, as herein provided.
B. Principal and Interest Payments Secondly, and subject to the aforesaid provisions, from any
monies remaining in he Income Fund, i, e., from tie net income and revenues, there shall be deposited
and paid into a bank account to be known as tine "City of Rexburg Joint Mater and Se, Revenue Bonds,
Series Januaryl, 1963, Interest and �Ond Retirement Fund,' herein sometimes referrred to as the "Bond
Fund," the following:
1. Monthly, commencing on the first day of the oinnth immediately succeding
the delivery of any of the bonds herein authorized, an amount in equal monthly
installments necessary, together with any moneys therein and available therefor,
to pay the next maturing installment of interest on the outstanding bonds of said
series, and monthly thereafter commencing on each interest payment date one -sixth
of the amount necessary to pay the next maturing installment of interest on the
outstanding bonds authorized hereby.
2. Monthly, corraitencing on the first day- of tine month immediatley succeeding
the delivery of any of the bonds herein authorized, an amount in equal monthly
installments necessary, together with any moneys therein and available therefor,
to pay the next maturing installment of principal o£ the outstanding bonds, and
monthly thereafter commencing on each principal payment date one- tr"elfth of th
amount necessary to pay the next maturing installment of principal oti the ponds
authorized hereby.
C. Reserve Funds Payments Thirdly, in addition to the deposit of tine initial amount of $15,000
into the Reserve Fund, pursuant to paragraph D. of Section 16 of this ordinance, and concurrently with
the payments required by the next preceding paragraph B, except as provided by paragraphs D and E of
this Section 19 of this ordinance, monthly commencing on the first day of January, 1963, t.iie sume of
($300.00 each month shall be deposited into a bank account to be known as the "City of Rexburg Joint and
Sewer Revenue Bonds, Series Januaryjl, 1963, Reserve Fund,' herein," herein sometimes referred to as
the r'Reserve Fund," until a reserve has been accumulated, including said initial deposit, in an amount
or amounts, if any shall be deposited monthly from any monies remaining in the Income Fund, into the
Reserve Fund necessary to maintain said Reserve Fund as a continuing reserve in an amount not less than
$25,000.00, herein sometimes designated as the °Minimum Resye,r to meet possible deficiencies in
deposits in said Bond Fund so long as tine monies therein shall equal not less than the Minimum Reserve.
The monies in the Reserve Fund stall be accumulated and maintained as a continuing reserve to be used
except as hereinafter provided in said paragraphs D and E of this Section 19, only to prevent deficienc-
ies in the payment of the principal of and interest on the bonds hereby authorized resulting from the
fa lure to deposit into the Bond Fund sufficient funds to pay said principal and interest as the same
accrue.
D. Termination Upon Deposits to Maturity No payment need be made into the Bond Fund, the Res -
axve Fund, or both, if the amount of the Bond Fund and the amount in the Reserve Fund total a sum at
least equal to the entire amount of the outstanding bonds herein authorized, both as to principal and
interest to their respective maturities, and both accrued and not accrued, in which case monies in
said two funds in an amount at least equal to such principal and interest requirments shall be used
solely to pay such as the same become due, and any monies in excess thereof in said tMo funds and any
other monies derived from the operation of the system may be used in any lgwful manner determined by
the Council.
E. Meeting Any Delinquencies - Use of Bond and Reserve Funds If, in any month, the City shall
I
or any reason, fail to pay into the Bond Fund the full amount above stipulated from the net income and
revenues of the system, then an amount shall be paid into the Bond Fund in such month ;'nom said Reser -re:
Fund equal to the difference between that paid from said net income and revenues and 2mo'uit so
stipulated. The money so used shall be replaced in the Reserve Fund from the first revenues thereafter
received from the operation of the system not required to be otherwise applied. If, in any month the
City shall, for any reason, fail to pay into the Reserve Fund the full amount above stipulated f rom the
net income and revenues of +.h-
Ordinance Book, City of Rexburg, Rexburg, Idaho
be used solely and only for the purpose of paying the principal of and the in'terst on the bonds issued ,
hereunder; prcvided, ho, that any monies at any time in excess of ;x25,000.00 in the Reserve Fund may
be withdraim therefrom and used as herein provided for net income and revenues derived from the system;
and provided that any monies in the Bond Fund and the Reserve Fund in excess of secured and unaccrued
princip ^.l and interest requirements to the respective maturities of outstanding bonds may be used as here -
inabove provided in paragraph D of this Section 19 of this ordinance,
F. Use of Remaining Revenues for Additional Bonds Fourthly, any balance remaining in the In-
come Fund after making the payments hereinabove provided, shall be used by the City for the payment of
interest on and the principal of any additional bonds or other obligations hereafter authorized to be issued
outstanding and payable fromfthe revenues of the system, including reasonable reserves therefor, as the
same accrue; provided that; the lien of such additional bonds or other obligations on the net income and
revenues of the s,'ytem and the pledge for the payment therof shall be on a parity with, or subordinate to,
tje lien and pledge of the bonds herein authorized, as hereinafter provided.
G. Investment of Monies Any monies in any f.md designated in Sections 13 and 19 of this ord-
inance not needed to defray operation and maintenance expenses for the system for the current fiscal ;;ear
nor to defray principal arzd interest requirements for bonds payable from the systemis revenues for the
current and next succeedin fiscal year, may be invested or reinvested by the City Treasurer in bills,
certificates of indebtedness, notes or bends which are direct obligations of, or the principal and interest
of which obligations are in this ordinance sometimes designated as ;:Federal Securities," which shall be
subject to redemtion at face value by the holder thereof at the option of such holder, or which shall
mature not later than three years from the date of such.investmentn except that Federal Securities in the
Reserve Fund shall so be subject to redemtion at face value or shall mature at least fifteen days prior
to the last principal payment date of the bonds herein authorized and outstanding at the time of such in-
vestment, or not later than ten ,years from the date of such investment, whichever limitation is shorter
at the date of the investmen4. The'PederalcSecurities so- ourchased :,an investmen ol.monies in said
fund shall be deemed at all times to be a part of said fund, and the ins-erst accurLag theron and any profit
realized therefrom shall be credited to the fiend, and any loss remilti:ig from such investment shall be
charged to the fund. The City Treasurer shall, present for redemtion or sale on the prevailing market any
Federal Securities so purchased as an investment of monies in the fund whenever it shall be necessary to
do so in order to provide monies to meet any apyment or transfer from such fund.
H. Places and Times of Deposits Eash of the funds and accounts hereinabove designated in Sec-
tion 10, 18 and 19 of this ordinance shall be maintained and kept separate from all other funds and acc-
ounts in a bank or banks, each of which is a member of the Federal Deposit Insurance Corporation. Each
monthly payment shall be made into the proper fund and account on the first day of each month shall be
a Sunday or legal holiday, then such payment shall be made on the next preceding secular day.
ih6withstanding any other provision herein to the contrary monies shall be depostied with the Rexburg
Branch of the ; Security Bank of Idaho, in Rexburg, Idaho, at least five days prior to each interest
payment date herein designated sufficient to pay the interest on and any principal of the bonds herein
authorized then becoming due.
I. Use of Surplus Revenues After making the payments herein above required to be made by
paragraphs A to F, both inclusive, of Section 19 of this ordinance, the remaining income and revenues
derived from the operation of the system, if any, shall be applied to all of the following purposes, or
to any combination thereof, as the Council may determine:
1. The improvement, betterment, and extension of the sytem;
2. The prior redemtion of the bonds herein authorized, as herein provided;
provided, however, that no bond shall be redeemed from surplus revenues of
the system prior to its maturity unless all the bonds of said issue which
remain•aoutstanding are redeemed, or the amount in the Reserve Fetid equals at
least ,$25,000.00; and
3. Any other lawful purpose or purposes authorized by the Constitution and
laws of the State of Idaho, as the Council may direct, including but not necess-
arily limited to the purposes not herinabove dtated but provided in Section 7
of the Revenue (ions Act (Section 50 -2818, Idaho Code), as the same may be here-
- � reafter from time to time amended and supplemented.
Section 20. First Lien Bonds That the bonds authorized herein, subject to
the payment of all necessary and reasonable expenses of the operation and main-
tenance of the system, constitute an irrevocable and first (but not necessarily
an exclusively first) lien upon the revenues derived from the operation of the
system.
Section 21. Additional Bonds.
A. Limitations upon Issuance That nothing in this ordinace contained shall
be construed in such a manner as to prevent the issuance by the City of addi-
tional bonds or other obligations payable from the income or any revenues
derived from the operation of the system and constituting a lien upon said
revenues on parity with, but not prior nor superior to, the lien of the bonds
herein authorised, nor to prevent the issuance of bonds or other obligations
refunding all or a part of the bonds herein authorized; provided, however,
that before any such additional parity bonds or other parity obligations are
authorized or actually issued, other than refunding bonds or other refunding
obligations (unless any lien on any revenues of the system of the bomds re-
funded is subordinate to the lien of the bonds herein authorized and the lien
on revenues of the system of the refunding bonds is on a parity with the lien
thereon of the bonds herein authorized), firstly, the smount in the Reserve
Fund must equal at least the Minimum Reserve, and secondly, the revenues de-
rived from the operation of said system for the fiscal year immediately pre-
ceding the date of the issuance of such additional parity obligations shall have
been sufficient to pay the costs of operation and maintenance for said fiscal year,
and, in addition, sufficient to pay an amount representing one hundred forty
centum (140 %) of the combined maximum annual principal and interest require-
ments of the outstanding revenue bonds and other obligations of the City pay -
.,..i e v,,,.m +k- f tha czrct.em and the hands or other obligations pro-
411
Ordinance Book, City of' Rexburg, Rexb rg, 1C ho
B. Certification of Larnings Awritten certified public accountant, to be employed
by the City, that said annual earnings, when adjusted as hereinafter provided, are
sufFicient to pay said amounts, shall be conclusively presumed to be accurate in
determining the right of the City to authorize, issue, sell and deliver said addi-
tional bonds or other obligations on a parity with the bonds herein authorized.
C. Consideration of Additional Expenses In determining whether or not additional
parity bonds or other parity obligations may be issued as a foresaid, consideration
shall be given to any probable increase (but not reduction) in operating and main-
tenance expenses that will result from the expenditure of the funds proposed to be
derived from the issuance and sale of the said bonds or other obligations.
D. Junior Obligations Nothing herein contained shall be construed so as to prevent
the City from issuing bonds or other obligations payable from the revenues of the
system and having a lien thereon inferior and junior to the lien, ofr -the bonds auth-
orized to be issued by this ordinance.
E. Superior Obligations Nothing herein contained shall be construed to permit the
City to issue bonds or other obligations payable from the revenues of the system
and having a lien thereon prior and superior to the bonds herein authorized to be
issued.
F. Use of Proceeds The proceeds of any additional bonds or other obligations pay-
able from revenues of the system shall be used only for improving, bettering and
extending the system.
G. Payment Dates for Additional Obligations Any additional parity or junior lien
bonds or other parity or unior lien obligations issued in compliance with the terms
hereof shall bear interest payable semiannually on the first days of January and
July in each year, except that the first coupon on any bond may represent interest
accruing for any period not in excess of one year, and such obligations shall mat-
ure on the first day of January in the ,years designated by the Council during the
term of said bonds or other obligations.
Section 22. Refunding Bonds. That the provisions of Section 21 hereof are subject
to the exception that if at any time after the bonds or other obligations herein or hereafter
authorized, or any part therof, shall have been issued, the Council shall find it desirable to
refund said bonds or other obligations, said bonds or other obligations, or any part thereof, may
be refunded (but only with the consent of the holder or holders thereof, unless the bonds or other
obligations have matured, or are then callable for prior redemption and have been properly called),
without changing the priority of the lien for the payment of the refunding obligations on the reve-
nues of the system; and the refunding bonds or other obligations so issued shall enjoy complete
equality of lien with the portion of said bonds or other obligations which is not refunded, if any
there be; and the holder or holders of the refunding bonds or other obligations shall be subrogated
to all of the rights and privileges enjoyed by the holder or holders of the bonds or other obliga-
tions refunded thereby. The refunding bonds of other obligations shall be issued, subject to the
provisions of paragraph G of Section 21 of this ordinance, with such details as the Council may be
ordinance provide; provided, however, that if only a part of the outstanding bonds or other obliga-
tions is refunded, and if such bonds or other obligations is refunded, and if such bonds or other
obligations are refunded in such manner that the interest rate thereof is increased or if any re-
funding obligation matures at an earlier date than the maturity date of the corresponding obliga-
tions refunded thereby, then such obligations may not be refunded thereby, then such obligations
may not be refunded with ^ut the consent of the holder or holders of the unrefunded portion of said
obligations; and that the refunding bonds or other obligations shall either be sold for cash at not
less than the par value and accrued interest, and the proceeds thereof shall be used to pay the bonds
refunded, or if so permitted by law and then only with the consent of the holder or holders of the
bonds or other obligations refunded, the refunding bonds or other obligations shall be delivered
dollar for dollar in exchange for the bonds or other obligations refunded.
Section 23• Equality of Bonds That the bonds authorized to be issued hereunder and
from time to eime outstanding shall not be entitled to any priority one over the other in the app-
lication of the revenues of the system, regardless of the toke or times of their issuance, it being
the intention of the Council that there shall be no priority among the bonds authorized to be issued
pursuant to this ordinace regardless of the fact that they may be actually issued and delivered at
different times.
Section 2L,. Protective Covenants. That the City hereby covenants and agrees, so long
as any of the bonds hereby authorized are outstanding and unpaid, with each and every holder thereof:
A. Use of Bond Proceeds That the City, with the proceeds derived from the sale of the
bonds herein authorized, will proceed to improve, better and extend the system without
delay, as hereinabove provided.
B. Payment of Bonds herein Authorized That the City will promptly pay the principal
of and the interest on every bond issued hereunder and secured hereby at the place, on
the dates and in the manner specified herein and in said bonds and in the coupons there-
to appertaining according to the true intent and meaning hereof. Such principal and
interest are paygble solely from the net income to be derived from the operation of the
resultant rates and charges for the use of, and the products and service rendered by,
the joint water and sewer system, and nothing in the bonds or coupons or in this ordin-
ance shall be construed as obligating the City to redeem any of said bonds, principal
or interst, from, and the holder or holders thereof may not look to, any general or o
other fund except the income which is pledged under the provisions of this ordinance.
C. Use Charger That while the bonds authorized herein or any of them remain outstand-
ing and unpaid, the rates for all services rendered by the system to the Oity shall. be
3 in habitants and to all consumers within or without the boundaries of the City shall
be reasonable and just, taking into account and consideration the cost and value of
the system and the cost of maintaining and operating the system, and the proper and
necessary allowances for the depreciation thereof and the amounts necessary for the
retirement of all bons and other securities or obligations payable form the revenues
of HIP G,.. +em_ the accurina interest theron, and reserves therefor; and there shall
4-
Ordinc -Ln ,e Boole., City of e XTburg, Rexburg, Idaho
principal of and interest on bonds and any other obligations payable annually from
the revenues thereof, excluding the reserves therefor, all of which revenues, including
thos received therefor, all of which revenues, including thos received from the City,
shall be subject to distrivution to the payment of the cost of operating and main-
taining the system and the payment of principal of and interest on all obligations
payable from the revenues of the system, including reasonable reserves therefor; that
no free service, facilities nor commodities shall be furnished by said system; that
should the City elect to use for municipal pprposes the water or sewer facilities of
said system, or in any other manner use the system, or any part thereof, any use of
the system by or of the services rendered thereby to the City, or any department, board
or agency thereof, will be paid for from the City's general fund or other available
revenues at the reasonable value of the use so made, or service, facility or commodity
so rendered; that all the income so derived from the City shall be deemed to be income
derived from the operation of the system, to be used and accounted for in the same manner
as any other income derived from the operation of said system.
D. Levy of Charges That the City will forthwith and in any event prior to the delivery
of any of the bonds herein authorized, fix, establish and levy the rates and charges
which are reouired by paragraph C. of Section 24 of this ordinance, if such action be
necessary therefor. No reduction in any initial rate schedule for the system may be
made unless:
(1) The City has fully complied with the provision of Section 19 of
this ordinance for at least the full fiscal year immediatley preceding
such reduction of the initial rate scedule.
(2) The audit required by a certified public accountant by paragraph
H of this Section 24 of this ordinance for the full fiscal year immediately
preceding such reduction discloses that the estimate revenues resulting
from the proposed rate schedule, after its proposed redution, will be
sufficient to pay an amount at least equal to the annual cost for said period
of operation and maintenance, and, in= addition, one hundred forty per cent -
um (140°0 of both the principal of and the interest on bonds and any other
obligations payable from the revenues of the system, including reasonable
reserves therefor.
E. Efficient Operation That the City will operate said system so long as any of the
bonds herein authorized are outstanding, to. maintain said system in efficient operating
condition and to make such improvements, extensions, enlargements, repairs and better-
ments thereto as may be necessary or advisable to insure its economical and efficient
operation at all times and to an extent sufficient to supply: public or private demands
for service within the City and the territoy adjacent thereto.-
F. Records. That so long as any of the bonds remain outstanding, proper books of record
and account will be kept by the City, separate and apart from all other records and acc-
counts, showing compete and correct entries of all transactions relating to the system.
Such books shall include (but not necessarily beelimited to), monthly records showing:
(1) The number of i-:ater customers and of sewer customers.
(2) The revenues received from water 'charges rand from sewer charges by
classes of customers.
(3) A detailed statement of the expenses o£ the system.
G. Right to Inspect That any holder of any of the bonds, or any duly authorized agent
or agents of such holder, shall have the right at all reasonable times to inspect all
records, accounts and data relating thereto and to inspect the sytem and all properties
comprising said system.
H. Audits That the City further agrees that it will, within sixty days following the
close of each fiscal year, cause and audit of such books and accounts to be made by a
certified public accountant, showing the receipts and disbursements for the account of
the system, and that such audit will be available £or,inspection by any holder of any of
the bonds. Each such audit, in addition to whatever matters may be thought proper by the
accountant to be included therein, shall include the following:
(1) A statement in detail of the income and expenditures of the system
for such fiscal year.
(2) A balance sheet as of the end of such fiscal year, including all
funds created by the various ordinances and other proceedings authoriz-
ing the issuance of outstanding bonds and other obligations payable
from the revenues of the system.
(3) The accountant's comment regarding the manner in which the City has
carried out the requirements of this ordinance, and any other ordinance
and other proceedings authorizing the issuance of outstanding bonds or
other obligations payable from the revenues of the system, and the acc-
outantis recommendation.£ro any change or imrpvement in the operation
of the system.
(4) A list of the insurance policies in force at the end of the fiscal
year, setting out as to each policy the amount of the policy, the risks
covered, the name of the insurer and the expiration date of the policy.
(5) A recapitulation of each fund or account created by the various
ordinances and other proceedings authorizing the issuance of outstanding
bonds and other obligations payable from the revenues of the systems,
into which fund are put monies derived from the operation of thesystem
or derived from the sale of the securities, such analysis to show the
balance in such fund at the beginning of the fiscal ,year, the deposits
and withdrawals during said year, and the balance at the end of said
year.
(6) The number of any metered wate r connections, any unmetered water
connections, any metered sewer connections andany unmetered sewer conn-
ections at the beginning and at the end of the year.
W The number of eustomers per class of customers, if there be classes
of7eustomers, and revenues per class of customers.
All expenses incurred in the making of the audits and reports required by this section
shall be regarded and paid as a maintenance and operations expense. The City agrees to
furnish forthwith a copy of each of such audits and reports to the holder of any of the
Y�
_S. 1
O r dinance Boom, Oty of Rexburg, Rex. b u 3 o, 1dLLho
(2) To the Rexburg Branch of the First Security Bank of Idaho, In Rexburg, Idaho,
i.e., the above -named paying agent bank or to any successor depository bank, after
each such aduit and report has been prepared, and that any such holder shall have
the right to discuss with the accountant or persons making the audit and report has
been prepared, and that any such holder shall have the right to discuss with the
accountant or persons making the audit and report the contents thereof and to ask
for such additional information as he may reasonably require.
I. Billing Procedure That all bills for water service or facilities, or sewer service or faci-
lities, or both water and sewer, furnished or served by or through the system shall be rendered
to customers on a regularly established day of each and every month either monthly in advance
or in the month next succeeding the month in which the service was rendered and shall be due
within twenty days from the date rendered; and in the event said bills are not paid within in
ninety days after the date when rendered, the rates and charges due shall be collected in a L
lawful manner, including but not limited to the denial of water service and the cost of dis-
connetion and reconnection therof. Sewer charges shall be billed jointly rtith charges for
water service or facilities; and each such bill shall show separately water and sewer charges.
In no case shall payment be accepted from a user of both such services unless payment is made
in full for each such service.
J. Use of Bond and Reserve Funds That the "City of Rexburg Joint Water and Sewer Revenue Bonds,
Series January 1, 1963, Interestaand Bond Retirement Fund,'t and the 'City of Rexburg Joint Water
and Sewer Revenue Bonds, Series January 1, 1963, Reserve Fund shall be used solely and only
and said funds are hereby pledged, for the purpose of paying the interest on and the principal
of the bonds herein authorized, except such monies in said Bond. Fund and in said Reserve Fund
as are in excess of the interest on and principal of sain bands, both accrued and not accrued,
to their respective maturities, and except such monies in said Reserve Fund in excess of the
specified 'inimum Reserve, as hereinabove prescribed.
K. Charles and Liens Upon System That from the revenues of the system the City will pay all
taxes and assessments or other municipal or governmental charges, if any, lawfully levied,
assessed upon or in respect of said system, or any part thereof, when the same shall become due,
and it will duly observe and comply with all valid requirements of any municipal or govern-
mental authority relative to any part of said system, that it will not create or suffer to be
created and lien or charge upon said system or upon the revenues therefrom except as permitted
by this ordinance, or that it will make adequate provision to satisfy and discharge within sixty
days after the same shall accrue all lawful claims and demands for labor, materials, supplies
or other objects, which, if unpaid, might by lace become a lien upon said system or upon the
revenues therefrom; provided however, that nothing herein shall renuire the City to pay or cause
to be discharged, or make provision for any such tax assessment, lien or charge before the time
when payment thereof shall be due or so long as the validity thereof shall be due or so long
as the validity thereof shall be contested in good faith by appropriate legal proceedinETs.
L. Completion Bond Tha;ts =the City will require each person, firm or corporation with whom it
may contract for labor qr materials cof construction to furnish a performance bond in the full
amount of any contract exceeding 'j,�5 000.00 in amount, or in lieu thereof to deposit with the
Treasurer of the City, of insure completion and performance, marketable securities having a.
market value equal to the amount of such contract, aL,_ eligible as security for the deposit of
trust funds under the regulations of the Board of Governors of the Federal Reserve System. In
the event`of default under such contract and upon being notified in writing of such default
by the Mayor of the City, its Treasurer shall sell any securities so deposited at the prevail-
ing market to the extent requested by the Mayor, and will apply the proceeds to the removal of
such default. as directed by the Mayor. Any such contract for labor or materials of consturct-
ion will provide that payment thereunder shall not be made by the City in excess of ninety per
centun (9M of the current estimates until the completion of the project and its acceptance
by the City.
M. Insurance That the City in its operation of the system will carry fireand extended cover-
age insurance, worknenrs compensation insurance and public liability insurance and other type
of insurance in such amounts and to such extent as is normally carried by private corporations
operating public utilities of the same type. The cost of such insurance shall be considered
one of the operating costs of the system. In the event of property loss or damage, insurance
proceeds shall be used first for the purpose of restoring or replacing the property lost or
damaged, any remainder shall`'be subject to distrivution in the manner provided hereinabove
in Section 19 of this ordinanence for net income and revenues derived from the operation of
the system.
N. Completing System That as long as any of the bonds hereby authorized are outstanding, the
"City shall not grant any franchise or license to a cometing system, nor shall it permit, during
said period (except as it may legally be required to do so) any person, association, firm or
corporation to sell water or sewer service or facilities, or any combination thereof, to any
consumer, public or private, within the City.
0. Alienating System That the City will not sell, lease, mortgage, pledge, or otherwise en-
cumber, or in any manner dispose of, or otherwise alienate, the system, or any part thereof,
including any and all extensions and additions that may be made thereto, until all the bonds
herein authorized to be issued shall have been paid in full, both principal and interest,
exceptthat the City may sell any portion of said property which shall have been replaced by
other property of at least equal value, or which shall cease to be necessary for the efficient
operation of the system, but in no manner nor to such extent as might prejudice the security
for the payment of the bonds herein authorized, provided, however, that in the event of any
sale as aforesaid, the proceeds of such sale shall be distributed as net income or revenues
of the system in accordance with the provisions of Section 19 of this ordinance.
P. Extending Interest Payments That in order to prevent any accumulationoof coupons or claims
for interest after maturity the City will not directly or indirectly, extend or assent to the
extension of the time for the payment of any coupon or claim for interest on any of the bonds
issued hereunder and it will not directly or indirectly be a party to or approve any arrange-
ment for any such extension or for the purpose of keeping alive any of said coupons; and in
case the time for payment of any such coupons shall be extended, such coupons or installment
or installments or interest after such extension or arrangement shall be entitled in case of
default hereunder to the benefit or security of this ordinance except subject to the prior
payment in full of the principal of all bonds issued hereunder and then outstanding, and of
matured interest on such bonds the payment of which has not been extended.
Q. Management of System That the City shall appoint a manager of the system with suitable
experience in the operation of similar systems. In the event of default on the part of the
City in paying principal of or interst on said bonds promptly as each falls due, or in the
- -1 __� to ....,,N .t,.P I+ chnll rnn+.inne fnr a, period of
1 -1
Ordinance Book, City of Rexburg, Rexburg, Idaho
a firm of competent management engineers skilled in the operation of joint water and sewer
systems to assist the manager of the system so long as such default continues or the net
revenues are less than the amount hereinabove designated. The manager shall have full
control over the system and shall operate the system for the City, and shall enforce such
reasonable rates and charges as will be sufficient to make the payments required by this
ordinance, and shall in all things so operate the system as to comply fully with all o£
the requirements and provisions of this ordinance. The right of the holder or holders of
the bonds herein authorized to require the retention of such management engineers shall
not be exclusive, and in the event of default as herein outlined, such holder or holders
shall have the right to proceed in law or equity to require the performance of the coven-
ants herein contained in any action which to them shall seem appropriate, as hereinafter
provided in Sections 25, 26, and 27 of this ordinance.
R. Surety Bonds That each municipal official or other person having custody of any funds
derived from operation of the system, or resposible for their handling, shall be bonded in
an amount at least equal to the total funds in his custody at any one time, which baond shall
be conditioned upon the proper application of said funds. The cost of each such bond shall
be considered one of. ' the operating costs of the system,
S. Performing Duties That the City will faithfully and punctally perform all duties with
respect to the system required by the Constitution and laws of the State of Idaho and the
ordinances and resolutions of the City, including but not limited to the making and collect-
ing of reasonable and sufficient rates and charges for service rendered or furnished by the
system as hereinbefore provided, and the proper segregation of the revenues of the system
aid their application to the respective funds,
T. Other Liens That other than as provided by this ordinance, there are no liens or en-
cumbrances of any nature, whatsoever on or against said system or the revenues derived or
to be derived from the operation of the same.
U. Corporate Existence That the City will maintain its corporate identity and existence
so long as any of the bonds herein authorized remain outstanding.
Section 25. Events of Default That each of the following events is hereby declared an
"event of default," that is to say;
A. Payment of the principal of any of the bonds herein authorized to be issued shall not
be made when the same shall become due and payable, either at maturity or b;- proceedings for prior
redemption or otherwise.
B. Payment of any installment of interest shall not be made when the same becomes due and
pauable or within thirty days thereafter.
C. The City shall for any reason be rendered incapbalbe of fulfilling its obligations here-
under.
D. The City shall make default in the due and punctual performance of its covenants or con-
ditions, agreements and provisions contained in the bonds or in this ordinance on its part to be
performed, and if such default shall continue for sixty days after written notice specifying such
default and requiring the same to be remedied shall have been given to the City by the holders of
twenty -five percent in principal amount of the bonds then outstanding.
Section 26. Remedies for Defaults That upon the happening and continuance of any of the
events of default as provided in Section 25 of this ordinance, then and in every case the holder
or holders of not less than twenty -five per centum (25%) in principal amount of the bonds then out-
standing, including but not limited to a trustee or trustees therefor, amy proceed against the City,
its governing body, and its agents, officef+s and employees to protect and enforce the rights o£,any
bondholder under this ordinance by mandamus or other suit, action or special proceedings in equity
or at law, in any court of competent jurisdiction, either for the appointment of a receiver or for
the specific performance of any covenant or agreement contained herein or in an award of execution
of any power granted for the enforcement of any proper, legal or equitable remedy as such bondholder
or bondholders may deem most ei'fectual to protect and enforce the rights aforesaid, or thereby to
enjoin any act or thing which may be unlawful or a violation of any right of any bondholder, or to
require the governing, body of the City to act as if it were the trustee of and expressed trust, or
any combination of such remedies. All such proceedings at lew,or in equity shall be instituted, had
and maintained for the equal benefit of all holders of the bonds and coupons then outstanding. Any
receiver appointed in any proceedings to protect the rights of the bondholders hereunder, the consent
to any such appointment being hereby expressly granted, may enter and take possession of the system.
operate and maintain the same, prescribe rates, fees or charges and collect, receive and apply all
revenues arising after the appointment of such receiver in the same manner as the City itself might
do. The failure of any bondholder so to proceed shall not relieve the City or any of-its 'officers, r
agents;' €or,employees of any liability for failure to perform any duty. Each right or privilege of
any bondholder (or trustee thereof) is in additon and cumulative to any other right or privilege,
and the exercise of any right or privilege, by or on behalf or any bondholder shall not be deemed
a waiver of any other right or privilege thereof.
Section 27. Duties Upon Defaults That upon the happening of any of the events of default
as provided in Section 25 of this ordinance, the City in addition, will do and perf all proper
acts on behalf of and for the bondholders to protect and preserve the secuuity,(rfeated for the
payment of their bonds and to insure the payment of the principal of and interest on said bonds
promptly as the same become due. All proceeds derived therefrom, so long" as- any the bonds herein
authorized, either as to principal or interest, are outstanding and uppaid, shall be paid into the
Bond Fund, or in the event of outstanding bonds issued during said period of time on a parity with
the bonds herein authorized, into such bond funds on an equitable and pro -rated basis, and used for
the purposes therein provided. In the event the City fails or refuses to proceed as in this section
provided, the holder or holders of not less than twenty -five per cent in principal amount of the
bonds then outstanding, after demand in writing, may proceed to protect and enforce the rights of
the bondholders as hereinabove provided.
Section 28. Prior Charge Upon Lower Rates That if it should be legally determined that any
legislative or other body, commission or authority has poer to lawfully prescribe a lower schedule
of rates than that contemplated by this or other ordinances, and if such lower rate shall be prescri-
be a lower schedule or rates than that contemplated by this or other ordinances, and if such lower
rate shall be prescribed, then the payment of interest on and the principal of said bonds, issued
pursuant to the provisions of this ordinance, shall constitute a first and prior charge on the rev-
enues received from said system, together with the bonds and other obligations the lien or lien there-
on of the bonds herein authorized, anything in this ordinance contained to the contrary notwithstanding.
I
,Section 29. Definition of System That notwithstanding any provisions contained herein, the
,'1
Ordinance Book, City of Rexburg, Rexburg, Idaho
and used in connection with the joint grater and se,•,er system of the City, and in anywise ap_erta-
ining thereto, wheteher situated within or without the limits of the City; and the term "revenues"
or "incomelr from the sytem shall include all income and revenue derived by the City from the opera-
tion of the municipal joint water and sewer system, or any part thereof, whether resulting from im-
jrovements, extensions, enlargements, repairs or betterments to the system, or otherwise, and shall
include all revenues received by the City of Rexburg, or any municipal corporation succeding to
the rights of the City of Rexburg, from siad system and from the sale of water and sewer service,
facilities, or commodities, or any combination therof, to the inhabitants of what is now the City
of Rexburg, (including all territorial annexations which may be made while said revenue bonds or
any part thereof are outstanding), or from the sale of water and sewer service, facilities or
commodities or any combination therof, by means of said system owned and operated by the City as
the same :ray at any time exist to serve customers outside the City limits as well as customers with-
in the City limits,
Section 30. Compulsory Sewer Connection That the Council has determined, and does here-
by determine, that it is for the best interest of the City and the inhabitants thereof for health
and sanitary purposes that inhabited Property be connected to the sewer facilities of said system;
and the Council hereby- orders that the own ers of inhabited property within the City, any boundary
of such property being within 1.50 feet of a sewer service line, shall connect such property to the
line without expense to the City within 130 days from the date of publication of this ordinance,
or if such a line is not then available within 130 days from the date such a line is extended to
within 150 feet of a boundary line of the tract or prrcel of land. In the event that any tract
or parcel of land is not so connected within the period of time hereinabove designated, in addition
to all other fees, tolls and charges levied and collected in connection with the system, a connect-
ion fee of j�100.00 is hereby lbvied thereagainst and shall be promptly collected from the o�vaier or
owners thereof. The City shall also enforce and compel such connection in the case of a failure
so to connect within the time herein prescribed by suit, action, or special' proceedings in equity
or at law; and the City may prescribe rules and regulations to govern, regulate and enforce such
11 connections, including but not limited to fixing penalties for the failure so to connect, and to
entering into agreements with any other public corporation or political subdivision of the State
of Idaho, or any agency or instrumentality therof, e.g., the County of Madison or its health depart-
ment, if any, necessary or desirable to effect the provisions hereof.
Section. 31. Delegated Powers That the officers of the City be, and they hereby are,
authorized and directed to take all action necessary or appropriate to effectuate the provisions
of this ordinacce, including, without limiting the ,!�enera.lity of the foregoing:
A. Printing Bonds. The printing of the bonds herein authorized, including, if specified
by the purchaser, on each a certified true copy of bond councel s approving opinion; and
B. Final Certificates The execution of such certificates as may be reasonably required
by the purchasers therof relating, inter alia, to the signing of the bonds, the tenure and identity
of the municipal officaials, delivery of the bonds and the receipt of the bond purchase price and
the absence of litigation, pending or threatened, affecting the rralidity thereof.
Section 32. Amendment of Ordinance
A. Limitations Upon Amendments That this ordinance may be amended or supplemented by
ordinances adopted by the Council in accordance with the laws of the State of Idaho, without re-
ceipt by the City of any ad consideration, but with the written consent of the holder of
three- fourths of the bonds authorized by this ordinance and outstanding at the time of the adop-
tion of such amendatory or supplemental ordinance (not including in any case any bonds which may
then be held or owned for the account of the City but including such refunding bonds as may be
issued for the purpose of refunding any of the bonds herein authorized if such refunding bonds
are not owned by the City): provided, however, that no such ordinance shall have the effect of
permitting:
(1) An extension of the maturity of any bond authorized by this ordinance; or
(2) .A reduction in the principal amount of any bond, the rate of interst thereon,
or the prior redemtion premium payable theron; or
(3) The creation of a lien upon or a pledge of revenues ranking prior to the lien of
pledge created by this ordinance; or
(4) A reduction of the principal amount of the bonds required for consent to such
amendatory or supplemental ordinance; or
(5) The establishment of priorities as between bonds issued and outstanding under
the provisions of this ordinance; or
(6) The modification of or otherwise affecting the rights of the holders of less
than all of the bonds then outstanding.
B. Notice of Amendment whenever the City shall propose to amend or modify this ordin-
ance under the provisions of this section, it shall cause notice of the proposed amendment to be
published one time in a financial newspaper or journal published in Salt Lake City, Utah. Such ao
notice shall briefly set forth the nature of the proposed amendment and shall state that a copy
of the proposed amendatory ordinance is on file in the office of the Clerk for public inspection.
C. Time for Amendment Whenever at any time within one year from the date of the publica-
tion of the said notice there shall be filed in the office of said Clerk an insturment or instruments
executed by the holders of at least seventy -five percentum (75 %) in aggregate amount of the bonds
then outstanding as in this section defined, which instrument or instruments shall refer to the pro-
posed amendatory ordinance described in said notice and shall specifically consent to and approve
the adoption thereof, therupon, but not otherwise, the Council may adopt such amendatory ordinance
shall become effective.
D. Binding Consent to Amendment If the holders of at least seventy -five per centum (755;)
in aggregate principal amount of the bonds outstanding as in this section defined, at the time of the
adoption of such amendatory ordinance, or the predecessors in title of such holders, shall have
consented to and 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 section pro-
vided, shall have any right or interest 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.
�� ��
r
Ordinance Boob, City of Rex'Ourg, Rexburg, Idaho
E. Time Consent Binding Any consent given by the holder of a bond pursuant tothe provisions of
this section shall be irrevocable for a period of six months from the date of the publication:of the notice
above provided for and shall be conslusive and binding upon all future holders of the same bond during
such period. Such consent may be revoked at any time after six months from the date of the publication
of such notice by the holder who gave such consent or by a successor in title by filing notice of such
revocation with the Clerk but such revocation shall not be effective if the holders of seventy -five per
centum (7550 in aggregate principal amount of the bonds outstanding as in this section defined have,
prior to the attempted revocation, consented to and approved the amendatory ordinance refferred to in
such revocation.
P. Proof of Instruments. The fact and date of the execution of any instrument under the pro-
visions of this section may be proved by the certificate of any officer in any jurisdiction who by the
laws is suthorized to take acknowledgment of deeds within such jurisdiction, that the person signing such
instrument acknowledged before him the execution thereof, or may be proved by an affidavit of a witmess
to such execution sworn to before such officer.
G. Proof of Bonds The amount and numbers of the bonds held by any person executing such instur-
ment and the date of his holding the same may be proved by a certificate executed by a resposible 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.
Section 33. Ordinance Irrepealable That after any of the bonds herein authorized are issued,
this ordinance shall be and remain irrepealable until the bonds and the interest thereon shall be fully
paid, cancelled, and discharged, as herein provided.
Section 34. Severability Clause. That if any section, paragraph, clause or provision of this o
ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability
of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this
ordinance.
Section 35. Repealer Clause That all by -laws orders, resolutions and ordinances, or parts there-
of, inconsistent herewith or hereby repealed to the extent only of suh inconsistency. This repealer shall
not be construed to revive any by -laws, order, resolution or ordinance, or part thereof, heretofore repealed.
Section 36. Emergency Clause and Effective Date That, by reason of the fact that the City of Rex-
burg needs to improve, better and extend its joint water and sewer system by construction of a sewage
stabilization pond and interceptor lines, and improving, bettering and extending its municipal sewer coll-
ection system, and forthwith abate a serious health problem, it is hereby declared that an emergency exists,
consisting of "riot, infectiouse or contagious disease, or other impending danger," that this ordinance
is necessary to the immediate preservation of the public pease, health and safety, and that it shall be
in full force and effect from and after its passage, approval and 'publication, as provided by law.
1963.
(SEAL)
ATTEST:
CITY CLERK
PASSED AND APPROVED by the City Council of'the City dE Rexburg, Idaho, this 2nd day of January
CITY COUNCIL
c
.............
J
MAYOR
Councilman A. H. Brock seconded the motion for the adoption of said ordinance.
The Clerk was then instructed to call the roll on the passage of the ordinance and the roll call
on said passage of said ordinance resulted as follows;
Those Voting Aye:
Those Voting Nay:
Those Absent:
John C. Porter
Laurn Ashliman
A. L. Klingler
A. H. Brock
Charles W. Zollinger
None
Gordon Smith
The ordinance was thereupon declared by the MayOr to have been duly passed.
It was moved by Councilman Laurn Ashliman and seconded by Councilman A. L. Klingler that the
Clerk of the City be ordered to publish said ordinance in full immediatley and in at least one issue of
the Rexburg Journal, a newspaper of general circulation in the City of Rexburg, Madison County, Idaho.
Thereupon, the Clerk was ordered to call the roll on said motion and the roll call upon said
motion was as follows:
Those Voting Aye: John C. Porter
Charles W. Zollinger
Laurn Ashliman