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HomeMy WebLinkAbout1968-1071 ORDINANCE I \7pC'E NO q f '� l t AN IJ OR I ``� rJs' � i. H i the City o `. It Yakima, t, d� :.J.L1� »aV.ti . f .� 1. tX:- l+,d. y .jt S`fasTl lnp l,on, authorizing the i.s5uance of $2,80 principal amount of water and sewer revenue bonds of the City to pay part of the cost of carrying out a plan for the acquisition, construction and installation of certain . additions and improvements to and extensions of the combined water and sewerage system of the City specified and adopted in its Ordinance No. 986 passed and approved January 2, 1968; providing that sa i bonds will be issued on a parity with certain outstanding water and sewer revenue bonds of the City; fixing the date, form, terms, maturities and covenants of said . bonds to be issued; providing and adopting certain covenant and protective features safeguarding the payment of the principal of and interest en said bonds; authorizing the sale thereof; and declaring an emergency. WHEREAS, , the . City o C Yakima, Washington (hereinafter called_ the "City"), by Ordinance e r o. 12-1714, passed the 18th day of July, 1955, b +.,i dlna No. ,,,_ as amended by Ordinance No. B-2793. passed thee 12th day of December, 1955, b ; r its system ;i4 se collection ai d i osal :, G i2_ �..:.>.. ?� e .� its :, � S v i,, C> I sanitary i , . i' y v w �'I e�, �, t disposal with its system of water. upp V7 and distribution it'• o z` , y'a' i��ir-T^� s � r C and authorized :1 7 � � li <111 �,.. t. .,�...� y et a m 1 to extensions A o f j and � t.�'I'. :£'Tl�s � c1a.. bX�E'n., :s T� ..... such C.� iii in. r system; t.n;., WHEREAS, by Ordinance fa . 986, adopted Janua y 2, 1964 this Council provided that such existing combined system should be improved by the acquisition, construction and installation of certain necessary improvements < d . t ... . t• s ' e r t o p r r- the City, additions, a.mJt'G'dca,.f3it4S ax..x �?_i,= vt1...1C`ia�: in order •,,, 3 ,, .Jt �..�? :.. = i i s 1. inhabitants and people living in the 'vicinity thereof with an adequate +.tate supply y t 1 } 4 - '� 1 ur u e declared h es t t t;'t') • i t i Lt'�} l� of potable �r water 1 C�)' a L) �.. -+,,. :, 3 t .._ t..�i: CA ... :� � �J such i' bremen'cs to be as near as nay be th '' sum of 5, >00 J CO $4,800,000 o f which would be p t of the proceeds ds h of water paid o:t �.<<., �' sale ^,_ �'�a and sewer revenue bonds of the City; and WHERi,AS, pursuant, nt, to sawn Ordinancc' No. 986, $2,000,n0 � '1 r;.,`, . oal amount of such bonds, r e 'Water ter �±n Sewer Revenue `r 1 unCls ,- 4�v .l .c�. . c ..zi t, .s �` 1... :�cT"'iE�.d. Bonds, 1968, c'. it sold data of 1 .� .:. / �S eribs A, were sold under da;.e o March 1, 1 j38; and • II/ WHEREAS, in order to part of the remaining part of the cost of such additions-, imp'rovements and extensions it is deemed necessary and advisable that the City now issue and sell the-balance of au- thorized : water -and sewer revenue bonds in the principal amount of - $2;800,000, and WHEREAS-, pursuant to Ordinance No. B-1794, adopted. December 12, 1955, the City issued and sold $400,000 principal amount of its water and sewer revenue bonds under date of January 1, 1956 which ordinance provided that additional water and sewer revenue bonds could be issued. on a parity withaach bonds if certain conditions could be met; and WHEREAS, pursuant to Ordinance No. 475, adopted November 4, 1963, the City issued and sold $1,500,000 principal amount of its water and sewer revenue bonds under date of January 1, 1964, on a parity with the outstanding January 1, 1956 revenue bonds; and • WHEREAS, said $2,000,000 principal amount of water and sewer revenue bonds issued pursuant to Ordinance No, 986 were issued on a parity with said outstanding January 1, 1956 and January 1, 1964 revenue bonds; and WHEREAS, it appears to this Council that said parity conditions may be met and that it is to the best interest of the City and its in- habitants that the bonds authorized herein be issued on a parity with such outstanding January 1, 1956, January 1, 1964 and March 1, 1968 water and sewer revenue bonds; and WHEREAS, it is necessary that the date, form, terms, maturities, covenants arid conditions of said bonds to be issued now be fixed; NOW, THEREFORE, BE IT ORDAINED by the City of Yakima, Washington: Section 1. As used in this ordinance the following words shall have the following meanings: a. The word - "System" shall mean the existing combined water and sewerage system of the tity as the same may be added to, improved and 2. • extended for as long as any of the Outstanding Parity Bonds, the • Authorized Bonds and any Parity Revenue Bonds are outstanding. b. The words 'Outstanding Parity Bonds" shall mean: (1) The water and sewer revenue bonds of the City issued under date of January 1, 1956 pursuant to Ordinance No. B-1794, $270,000 principal amount of which arernw outstanding; (2) The water and sewer revenue bonds of the City issued under date of January 1, 1964 pursuant to Ordinance No. 475, $1,425,000 principal amount of which are now outstanding; and (3) The water and sewer revenue bonds of the City issued under date of March 1, 1968 pursuant to Ordinance No. 986, $2,000,000 principal amount of which are now outstanding. The Outstanding Parity Bonds are the only revenue bonds of the City outstanding at time for the payment of the principal of and interest on which the gross revenue of the System has been pledged. c. The words "Outstanding Revenue Bond Funds" shall mean the "Water and Sewer Revenue Bond Fund, 1956" created by Ordinance No. B-1714 of the City as amended by Ordinance No. B-1793, the "Water and Sewer Revenue Bond Fund, 1964" created by Ordinance No. 475 of the City, and the "Water and Sewer Revenue Bond Fund, 1968" created by Ordinance No. 986 of the City, and shall include the "Principal and Interest Account" and the "Reserve Account" in the 1956 Bond Fund, the "Reserve Account" in the 1964 Bond Fund, and the "Reserve Account" in the 1968 Bond Fund. d. The words "Authorized Bonds" shall mean the $4,800,000 principal amount of water and sewer revenue bonds of the City authorized in Ordinance No. 986 to pay part of the cost of the additions and improve- ments to and extensions of the System authorized, in said ordinance. e. The words "Bond Fund" shall mean the fund entitled "Water and Sewer Revenue Bond Fund, 1968" crea:ed by Section 8 of Ordinance No. 986. f. The words "Reerve Account shall mean the account of that name created in the Bond Fund. g. The words "Bends, 1968, Series B" shall mean the $2,800,000 principal amount of the Authorized Bonds issued pursuant to this ordi- nance for the purpose of paying part of the cost of part of the additions and improvements to and extensions of the System authorized in Ordinance No. 986. h. The words "Parity Revenue Bonds" shall mean any revenue bonds of the City, other than the Outstanding Parity Bonds and the Bonds, 1968, Series B, issued after the-date of the issuance of the Bonds, 1968, Series B and having a lien upon the gross revenue of the System for the payment 411 of the principal thereof and interest thereon equal to the lien upon such gross revenue for the payment of the principal of and interest on the Outstanding Parity Bonds and the Bonds, 1968, Series B. Section 2. The plan of additions and improvements to and ex- tensions of the System set forth in Section 2 of Ordinance No. 986 is hereby respecified and readopted. However, the estimated cost of the acquisition, construction and installation of such additions, improvements and extensions is hereby now declared to be as near as may be the sum of $5,550,000, $4,800,000 of which shall come from the issuance and sale of the Authorized. Bonds, and $750,000 of which has been granted to the City from the United States Government. 111 Section 3. The City does hereby propose and adopt as an integral part of the plan for acquiring, constructing and installing the remaining , part of the additions and improvements to and extensions of the System authorized in Ordinance No. 986 that it shall issue the Bonds, 1968, Series B. 4. • The Bonds, 1968 Series B, shall be dated. December 1, 1968, shall. be in theedenomination of $5,000 each, -shall bear interest at a - • rate or rates of not to exceed 6% per annum payable on the first days of March and September of each year from date ofissue, and shall be . • numbered and mature In order of number on March 1 of the 'following years: Bond Nos. Year 410 ' Bond Nos. Year Amount . 1-22 .1990 $110,000 .231-271 1997 $205,000 23-53 1991 155,000 272-314 • 1998 .215,000 • • 54-85 - 1992 160,000 315-359 1999- - 225,00o . 86-119 1993 170,000 360-406 2000 235,000 • 120-154 1994 175,000 407-455 2001 245,000 155-191 1995 185,000 456-506 • 2002 255,000 192-230 1996 195,000 507-560 2003 - 270,000 Both principal of and interest on the Bonds,. 1968, Series B shall be payable in lawful money of United States of America at the 411 office of the City Treasurer in Yakima, Washington, or at the option of the holder at the fiscal agency of the State of Washington in the City - of New York, New York, and shall be obligations only of the Bond Fund. Section 4. The City hereby reserves the right to redeem any or all of the Bonds, 1968, Series 8 outstanding in whole, or in part in inverse numerical order, on the following interest payment dates and at the following prices expressed as a percentage of the principal amount, plus accrued interest to the date of redemption: • • On March 1 and September 1, 1981, at 104 On March 1 and September 1, 1982, at 103 1/2 On March 1 and September 1, 1983, at 103 On March 1 and September 1, 1984, at 102 1/2 On March 1 and September 1, 1985, at 102 On March 1 and September 1, 1986, at 101 1/2 • On March 1 and September 1, 1987, at 101 On March 1 and September 1, 1988, at 100 1/2 On March. 1, 1989 and any interest payment date thereafter, at 100. Notice of any such intended redemption shall be given by one publication thereof in the official City newspaper not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to the purchaser or the account manager 5. . . or managers of the purchaser; of the Bonds, 1968, Series B at their 411 sale by the City at its or their main office or offices or principal place or places of business in the State of Washington, or to the busi- ness successor, if any, of said purchaser or account manager or managers at its or their main office or offices or principal place or places of business in the Stateof Washlngton. Interest on any Bond or Bonds, 1968, Series B so called for redemption shall cease on such redemption date unless the same are not redeemed upon presentation made pursuant to such call. The City further reserves the right whenever it has surplus revenue from the System over and above amounts necessary to pay current costs of maintaining and operating the System, costs of necessary addi- tions, betterments and improvements thereto and replacements .thereof , 411 when the same are not financed by the issuance of bonds or coupon war-• rants, all payments required to be made into any bond redemption fund or reserve account out of the gross revenue of the System, and all pay- ments required for any other proper purposes in connection with the opera- tion of the System, to use such surplus money at any time to purchase any of the Bonds, 1968, Series B in the open market for retirement only if the same may be purchased at a price not exceeding that at which Bonds, 1968, Series B could be called for redemption on the first succeeding date upon which they may be so called, plus accrued interest,. Section 5. This City Council hereby finds and determines, as required by Section 7 of Ordinance No. B-1794, Section 12 of Ordinance No. 475, and Sectionl3 of Ordinance No. 986, as follows: First, that at the time of the adoption of this ondinance and at the time of the issuance and delivery of the Bonds, 1968, Series B, all payments then required to have been made into the Outstanding Revenue Bond Funds have been or shall have been made. Second, that the Council has been assured that at the time of 6. the issuance of the Bonds, 1968, Series B the City will have on file a.certificate issued by James W. Poirot,- an independent registered professional engineer experienced in municipal utilities, showing..compliance with the requirements of Section 7(2) of Ordinance No. B- 1794, Section 12(2) o,f Ordinance No. 475, and Section 13(2) of Ordinance No. 986. Third, that by Section 8 of this ordinance the City has covenanted and provided that it will pay into and maintain in the Reserve Account created in Section 9 of Ordinance No. 986 the amounts required by Section 7(3) of said Ordinance No. B -1794, Section 12(3) of said Ordinance No. 475, and Section 13(3) . of said Ordinance No. 986 to be paid into and maintained in said Reserve • Account at the times required by said sections. • The conditions provided in Section 7 of Ordinance No. .B-1794, Section 12 of Ordinance No. 475, and Section 13 of Ordinance No. 986 having been complied with or assured, the payments required herein to be made out of the gross revenue of the System into the Bond Fund and Reserve Account to pay and secure the payment of the principal of and interest on the Bonds, 1968, Series B shall constitute a lien and charge upon such gross revenue equal in rank with the lien and charge thereon for the payments required to be made into the Outstanding Revenue Bond and the Bond Fund Funds /to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds. The City hereby further covenants and agrees that the Bonds, 1968, Series B will not be issued and delivered to the purchasers thereof . as bonds on a parity with the Outstanding Parity Bonds until the above- III described certificate, in form and contents satisfactory to the City and its counsel has been filed with the City. Section 6. That by Section 1 of Ordinance No. 900 of the City passed and approved April 11, 1967, there has been created a special 7. fund of the City known as the "Domestic Water Improvement. Fund" as a depositary for the moneys to c used to acquire, construct and install the additions and improvements to and extensions of the System author- ized in Ordinance No. 986 and for paying all costs incidental.. thereto. The proceeds of the sale of the Bonds, 1968, Series B (ex-- clusive of accrued interest received, which shall be paid into the Bond Fund), the anticipated grant or grants from the United States of America, and any money which the City now has or will later have on hand to be used in payment of the cost of said additions and improvements to and extensions of the System, shall all be paid into said Improvement Fund and shall be used solely for the purpose of paying the cost of acquiring, constructing and installing the additions and improvements to and exten- inns of the System provided for herein, including all costs incidental . thereto. In the event there are any moneys left in said Fund after payment of all of such costs, the same shall be transferred to the Bond Fund for the uses and purposes for which such Fund was created. Section 7. The Bond Fund has been heretofore created for the sole purpose of paying the principal of and interest on the Authorized Bonds. The City hereby obligates and binds itself to set aside and pay into the Bond Fund out of the gross revenue of the System the following fixed amounts necessary to pay the principal of and interest on the Bonds, 1968, Series B as the same shall become due and payable. Such amounts shall be paid into the Bond Fund on or before the twentieth day of each • month as hereinafter provided , a. Beginning with the month of December, 1968 and continuing through the month of February, 1969, an amount equal to at least one -- third of the interest to become due and payable on March 1, 1969 on all of the Bonds, 1968, Series B. 8. • b. Beginning with the month of March, 1969 and continuing as long as any of the Bonds, 1968, Series B are outstanding and unpaid, an amount equal to at least one-sixth or the interest to become due and payable on the next interest payment date on all of the Bonds, 1968, Series B then outstanding. c. Beginning with the month of March, 1989 and continuing as long as any of the Bonds, 1968, Series B are outstanding and unpaid, an amount equal to at least one-twelfth of the principal of the Bonds, 1968, Series B to become due and payable on the next principal payment date. Said amounts so pledged to be paid into the Bond Fund and the amounts hereinafter pledged to be paid into the Reserve Account out of the gross revenue of the System are hereby declared to be a prior lien • and charge upon such gross revenue superior to all other charges of any kind or nature (including any transfer of money to other funds of the City and taxes-or payments in lieu of taxes payable to the City) except the normal expenses of maintenance and operation of the System (which expenses may include pro rata budget charges for City departments where such charges represent a reasonable distribution of share of actual cost), and equal in rank to the charges upon such gross revenue to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds and to any charges which may be made later thereon to pay and secure the payment of the principal of and interest on Parity Revenue Bonds. In the event that money and/or direct obligations of the United States of America maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money if necessary) suf- ficient to redeem and retire the Bonds, 1968, Series B in accordance with their terms are set aside in the Bond Fund to effect such redemption and retirement, and such money and/or the principal of and interest on such obligations are irrevocably set aside and pledged for such purpose, then 9. no further payments need be made into the Bond Fund for the payment of 411 the principal of and merest on the Dond, 1968, Series B, and the holders of the Bonds, 1968, Series B and the appurtenant coupons shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive the funds so set aside and pledged, and the Bonds, 1968, Series B and/or such coupons shall be deemed not to be out- standing hereunder. Section 8. The Reserve Account has heretofore been created as a depositary of moneys to secure the payment of the principal of and interest on the Authorized Bonds outstanding. The City hereby covenants and agrees that it will set aside and pay into the Reserve Account out of the gross revenue of the System and any other moneys legally available therefor, in equal monthly installments commencing not later than the month of December, 1968 and continuing through the month of November, 1973, an aggregate amount which, with the aggregate amount required to be paid into the Reserve Account in the first paragraph of Section 9 of Ordinance No. 986, will be at least equal to the average annual debt service requirements for the Authorized Bonds. The City further covenants and agrees that after said 5-year period it will from time to time if necessary set aside and pay into the Reserve Account out of the gross revenue of the System, or out of any other funds legally available therefor, such amounts as may be necessary to provide an aggregate amount; in the reserve accounts securing the pay- ment of the Outstanding Parity Bonds and the Bonds, 1968, Series B at least equal to the next succeeding calendar year's debt service on such 410 bonds. The City further covenants and agrees that when the aggregate amount required in the second paragraph of this section has been deposited in the Reserve Account it will at all times maintain that amount therein until there is a sufficient amount in the Bond Fund and Reserve Account 10. . . to pay the principal of, premium if any, and. interest on all outstanding Bonds, 1968, Series B, at which time the money in the Reserve Account may be'used to pay such principal; premium if any, and interest. In the event there shall be a deficiency in the Bond Fund to , . meet maturing installments of on or principal of and interest on the Bonds, 1968, Series B, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any deficiency created in the Reserve Account by reason of any such with- drawal shall then be made up from the gross revenue of the System.first available therefor after making necessary provisions for the required' payments into the Bond Fund. The money required in the second. paragraph of this section to' be paid into the Reserve Account may be kept in cash or invested in direct obligations of the United States having a guaranteed redemption price prior to maturity or maturing not later than twelve years from date of purchase, and in no event maturing later than the last maturity of the Bonds, 1968, Series 5 outstanding at the time of such purchase. Interest earned on and any profits made from the sale of any such investments made pursuant to the previous paragraph hereof shall be deposited in and become a part of the Reserve Account until there shall be an amount therein equal to the average annual debt service require- ments for the Bonds, 1968, Series B as aforesaid, after which such interest and any profits shall be deposited in and become a part of • the Bond Fund. Section 9. The corporate authorities of the City hereby declare that in fixing the amounts to be paid into the Bond Fund and the Reserve Account as hereinbefore provided, they have exercised due regard to the normal expenses of maintenance and operation of the System . and to the 'amounts required to pay and secure the payment of the prin- cipal of and interest on the Outstanding Parity Bonds, and have not 11. • obligated the City to set aside and pay into said Fund and Account a 41 " greater amount of the revenue of the :7yscem than in their judgment will be available over and above such normal expenses of maintenance and ' operation and the amounts necessary to pay the principal of and interest on such Outstanding Parity Bonds. Section 10. The City hereby binds itself irrevocably not to sell, lease, mortgage or in any manner encumber or dispose of all of the property of the System now belonging to it or which may hereafter belong ' to it, including all additions, betterments and extensions thereof at any time made unless provision is made for payment into the Bond Fund of a sum sufficient to pay the principal of and interest on all the out- standing Authorized Bonds in accordance with the terms thereof and, further, hereby binds itself irrevocably not to mortgage, sell, lease, or in any manner dispose of any part of the System, including all addi- tions, betterments and extensions thereof at any time made thatare used, useful or material in the operation of the System unless provision is made for the replacement thereof or for payment into the Bond Fund of an amount which shall bear the same ratio to the amount of outstanding Authorized Bonds as the revenue available for debt service for said Authorized Bonds for the twelve months preceding such sale, lease, en- cumbrance or disposal from the portion of the utility so leased, encumbered or disposed of bears to the revenue available for debt service for said Authorized Bonds from the entire utility for the same period. Any such moneys so paid into the Bond Fund shall be used to retire out- standing Authorized Bonds at the earliest possible date. The City further covenants and agrees to maintain the System in good repair, working order and condition and to operate the System and the business in connection therewith in an efficient manner and at a reasonable cost. The City further covenants and agrees with the owner and 12. - , holder of.each of the Authorized Bonds that it will establish, maintain_ 110 and. collect rates and charges for water and for sanitary sewage disposal service for as long as any of the Outstanding Parity Bonds, the Author- - ized Bonds and any ParityRevenue Bonds are outstanding that will make available for the payment of the principal of and interest on all of such bonds as the same shall become due an equal to at least 1.4 times the amount required each calendar year hereafter for the payment of all of such principal and interest after normal expenses of maintenance and operation (including pro rata budget charges for City departments as • , provided in Section 7 above) have been paid but before depreciation and Outstanding Revenue before any transfer of moneys to any funds of the City other than the/Bond Fundsand before taxes or payments in lieu taxes payable to the City. The City also covenants and agrees that it will not furnish water'or sanitary sewage collection and disposal service to any customer whatsoever free of charge. Section 11. The City will, while any of said Puthorized Bonds remain outstanding, keep proper books of accountsand records separate and apart from other accounts and records in which complete and correct entries will be made of all transactions relating to the System, and it will furnish the original purchaser or purchasers of the Authorized Bonds or any subsequent holder or holders thereof at the written request of such holder or holders, complete operating income statements of the System in reasonable detail covering any calendar year not more than ninety days after the close of such calendar year, and it will grant to any holder or holders of at least 25% of the outstanding Authorized Bonds the right at all reasonable times to inspect the entire System and all records, 111 accounts and data of the City relating thereto. Copies of such operating and income statements shall be placed on file in the office of the City Clerk and shall be open at any reasonable time by any holder of any_of the Authorized Bonds or any other outstanding bonds . 13. • of the City payable out of the revenue of the System. All expenses • incurred in the maintenance of such book 3 and accounts and the pre- paration of such statements may be regarded and paid as an expense of operation of the System. Section 12. The City further covenants and agrees that it will not hereafter issue any water and sewer revenue bonds or refunding water and sewer revenue bonds which shall constitute a charge or lien against the gross revenue of the System prior to or on a parity with the charge or lien against the same for the payments required to be made into the Outstanding Revenue Bond Funds created to pay and secure the payment of the Outstanding Parity Bonds and into the Bond Fund for the payment of the Bonds, 1968, Series B; provided, however, that it hereby reserves the right to issue additional and/or refunding water and sewer revenue bonds (hereinbefore defined as "Parity Revenue Bonds") which shall constitute a charge and lien upon the gross revenue of the System on a parity with the Outstanding Parity Bonds and the Bonds, 2968, Series B if the following conditions shall be met and complied with at the time of the issuance of such additional and/or refunding bonds, to wit: (1) That all *payments then required by Ordinances No. B-1794, No. 475, No. 986, this ordinance and all ordinances authorizing the issuance of Parity Revenue Bonds to pay and secure the payment of all of the bonds issued pursuant to such ordinances shall have been made. (2) The annual net revenues (hereinafter defined) of the System based upon the historical experience of the entire System or the pro forma revenues under the then existing rates ovcr a period of any twenty-four 111 consecutive months out of the thirty-six months immediately preceding the time of the issuance of such Parity Revenue Bonds will equal at least 1.40 times the maximum amount required to be paid in any calendar year thereafter on account of interest to accrue and principal to become 14. • payable with respect to all indebtedness. of the City payable solely • from the revenues of the System to be outstanding immediately subse- quent to the incurring of the proposed additional indebtedness... Such determination of the sufficiency of the revenu.es shall be made and _certified to by an independent registered professional engineer ex- perienced in municipal utilities. The net revenues of the System shall mean the amount remaining from the gross operating revenues after deducting therefrom all costs of operating and maintaining the utilities but before depreciation. Provided, however, that if such additional bonds proposed to be so issued are for the sole purpose of refunding Outstanding Parity Bonds,. the Bonds, 1968, Series B or Parity Revenue Bonds, such' certification of coverage shall not be required if the amount required for payment of the Ilk principal and •interest of each year for the refunding bonds is not in -. creased over the amount required for the bonds to be refunded thereby and the maturities of said refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby. And (3) The ordinance authorizing the issuance of such additional bonds shall provide that an - amount equal to the average annual debt service requirements for.such additional bonds to be issued shall be • accumulated as a reserve in the•bond redemption. fund created for such additional bonds or in a separate reserve fund, said amount to be accumulated within five years after the date of issuance of such • additional bonds by substantially equal annual payments, and said reserve to be maintained in such amounts so long as any of said addi- tional bonds are outstanding to the last maturity thereof. • Such ordinance shall also covenant that after said 5 -year period the City shall from time to time if necessary set aside and pay into such reserve out of the gross revenue of the System or out of any other funds legally available therefor, such amounts as may be necessary to provide 15. • an aggregate amount in the reserve accounts securing the payment of the Outstanding Parity Bonds, the Authorized Bonds, any Parity Revenue .Bonds theretofore issued, and the Parity Revenue Bonds being issued at least equal to the next succeeding year's debt service on such bonds. Nothing herein contained shall prevent the City from issuing revenue bonds or warrants (coupon or otherwise) the payment of the . principal of and interest on which is a charge upon the gross revenue of the System junior or inferior to the payments required to be made . out of such gross revenue to pay or secure the payment of the principal of and interest on the Outstanding Parity Bonds, the Authorized Bonds, and any Parity Revenue Bonds. Section 13. The Bonds, 1968, Series B shall be in substan- tially the .following form: 411, UNITED STATES OF AMERICA NO. $5,000 • STATE OF' WASHINGTON CITY OF YAKIMA WATER AND SEWER REVENUE BOND, 1968 SERIES B The City of Yakima, a municipal corporation of the State of Washington (hereinafter called the "City"), hereby ac- knowledges itself to owe and for value received promises to pay to bearer on the first day of March, 19 , the principal amount of FIVE THOUSAND DOLLARS together with interest thereon at the rate of % per annum 111' payable on the first days of March and September of each year from date hereof upon presentation and surrender of the attached interest coupons as they severally become due, or until such principal amount Shall : have been paid or duly provided for. • 16. 411 Both principal of and interest on this bond are payable in lawful money of the United States of America at the office of the City Treasurer in Yakima, Washington, or at the option of the holder at the fiscal agency of the State of Washington in the City of New York, New York, solely out of the special fund of the City known as the "Water and Sewer Revenue Bond Fund, 1968" (hereinafter called the "Bond Fund") created by Ordinance No. 986 of the City. The City has reserved the right to redeem any or all of the bonds of this series outstanding in whole, or in part in inverse numerical order, on the following interest payment dates and at the following prices expressed as a percentage of the principal amount, plus accrued interest to the date of redemption: On March 1 and September 1, 1981, at 104 On March 1 and September 1, 1982, at 103 1/2 On March 1 and September 1, 1983, at 103 On March 1 and September 1, 1984, at 102 1/2 On March 1 and September 1, 1985, at 102 On March 1 and September 1, 1986, at 101 1/2 On March 1 and September 1, 1987, at 101 On March 1 and September 1, 1988, at 100 1/2 On March 1, 1989 and any interest payment date thereafter, at 100. Notice of any such intended redemption shall be given by one publication thereof in the official City newspaper not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to 411 This bond is one of a series of water and sewer revenue bonds of the City of like amount, date and tenor except as to • number, interest rate and date of maturity, in the aggregate principal amount of $2,800,000, which bonds are issued pursuant to ordinances of the City duly and regularly adopted, for the 17. purpose of providing. part ofthe funds to pay part of the cost of acquiring, constructing and installing additions and improvements to and extensions of the combined water and sewerage system of the City. All of such bonds are payable • solely outof the gross revenue of such combined system and all additions, improvements and extensions that may be made thereto. . . The City covenants and agrees with the owner and holder of this bond that it.will keep and perform all the covenants of this bond and of Ordinances No. 986 and No. /07/ to be by it kept and performed. The City does hereby pledge and bind itself to set aside from the gross revenue of the combined water and sewerage system of the City and all additions, improvements and extensions which may be made thereto and to pay into said Bond Fund. and the Re- serve Account created therein by said Ordinance No. 986 the various amounts required by Ordinances No. 986 and No. /e27/ to be paid into and maintained in said Fund. and Account, all within the times provided by said ordinances. Said amounts so pledged to be paid out of said gross revenueinto said - Bond , Fund and Reserve Account are hereby declared to be a prior lien and charge upon such gross revenue superior to all other charges of any kind or nature except the normal expenses of maintenance and operation of said system and equal in rank to the charges made thereon to pay the prin- cipal of and interest on the outstanding water and sewer revenue 411 bonds of the City issued under dates of January 1, 1956, January 1, 1964 and March 1, 1968, and to any charges that may be made later on 'sai.d, 'gross revenue to pay and secure the pay- ment of. the principal of and interest on any revenue bonds that the City may later issue on a parity with said outstanding 18. • , - January 1, 1956, January 1, 1964 and March a,'1968 bonds and 411 the bonds of this series, The City has further bound itself to maintain said'cOmbined water and sewerage system in good condition and repair, to operate the same in an efficient manner and at a reasonable • cost, and to establish, maintain and collect rates and charges for water supplied and sanitary sewage collection and disposal service furnished for as long as any of the January 1, 1956, January 1, 1964 and March 1, 1968 bonds, the bonds of this series, and any bonds which may be issued later on a parity therewith are outstanding that will make available for the payment of the principal of and interest on all of such bonds as the same shall become due an amount at least equal to 1.4 times the amount required each calendar year .hereafter- for the. • payment of all of such principal and interest after normal ex- penses of maintenance and operation of said system have been paid but before depreciation. • It is hereby certified and declared that the bonds of this series are issued pursuant to and in strict compliance with the Constitution and laws of the State of Washington and the Charter and ordinances of the City of Yakima and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed. IN WITNESS WHEREOF, the . City of Yakima has caused this bond to be signed with the facsimile signature of its Mayor, to be attested by its Clerk, the corporate seal of the City to be im- pressed hereon, and the interest coupons attached hereto to be executed with the facsimile signatures of said officials, this first day of December, 1968. CITY pF•YAKIMA, WASHINGTON ATTEST: By Mayor City Clerk 19, The interest coupons attached to the Bonds, 1968, Series B shall be in substantially the following form: NO. ' $ • On the first day of , 19, the City of Yakima, Washington, will pay to bearer at the office of • the City Treasurer in Yakima, or at the option of the holder at the fiscal agency of the State of Washington in New York, New York, the amount shown hereon in lawful money of the United States of America out of the ,special fund of the City known as "Water and Sewer—Revenue Bond Fund, 1968," said amount being the interest due that date on its water and sewer revenue bond dated December 1, 1968, and numbered. CITY OF YAKIMA, WASHINGTON • By Mayor_ ATTEST: City Clerk Section 14. The Bonds, 1968, Series B shall be signed on behalf of the City with the facsimile signature of its Maybr, shall . be attested by its Clerk, and shall have the corporate seal of the • City impressed thereon. The interest coupons attached thereto shall be executed. with the facsimile signatures of said officials. Sectlon 15. The Bonds, 1968, Series B shall be sold at public sale upon sealed proposals to be received by the City Clerk at her office in the City Hall until 1:00 o'clock P.M. Pacific Standard Time on Novem- ber 18, 1968, at which time the bids submitted therefor will be publicly opened and read. The City Council will consider and act upon said bids at its regular meeting to be held in the Council Chambers at the City Hall at 8,:00 o'clock P.M. Pacific Standard Time on the same day. The proper City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery 20. . . , . of the Bonds, 1968, Series B ucon their sale and for the proper use 110 and application of the proceeds of such sale. Section 16. Becase it is necessary that the City receive the proceeds of the sale of the Bonds, 1968, Series B in the near future, this ordinance is one to provide for the immediate preservation of the public property, welfare and safety of the people of the City, and an emergency is hereby declared to exist. This ordinance shall be in full force and effect immediately upon its passage, approval and .publication as provided by law and by the City Charter. PASSED by the City Council, signed and approved this 21st day of October, 1968. CIT OF YAKE WAS1 GTON qp By Mayor III ATMST: d / City Clerk APP , OVED AS TO FORM: 4 ) _ qk ..._. & !.., City Attbrney 411 • 21.