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HomeMy WebLinkAbout11695ORDINANCE NO. 11,695 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF SEWER REVENUE BONDS OF THE CITY OF LITTLE ROCK, ARKANSAS FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING SEWER REVENUE BONDS OF THE CITY IDENTIFIED IN THE ORDINANCE AND PAYING THE COST TO THE CITY OF CONSTRUCTING EXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO THE SEWER SYSTEM OF THE CITY; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE SEWER REVENUE BONDS; PRESCRIBING OTHER MATTERS RELAT- ING THERETO; AND DECLARING AN EMERGEECY. WHEREAS in fun. °therance of the established policy of the Pollution Control Commission requiring that adequate waste treatment facilities be operative by the time of the completion of the nearest down- stream structure of the Arkansas River navigation project, the City of Little Rock, Arkansas (called "City ") has been directed to proceed to construct and to place into operation adequate waste treatment facilities for sewage and industrial waste presently being discharged into the Arkansas River; and WHEREAS the Sewer Committee of the City has had prepared by Forrest and Cotton, Inc., Dallas, Texas, and by Garver and Garver, Inc., Little Rock, Arkansas, Consulting Engineers, an engineering report on providing sanitary sever service for Arkansas River drainage area and estimates of cost of needed betterments and improvements (called "engineering report "), which engineering report has been approved by the Sewer Committee and recommended to the Board of Directors of the City: WHEREAS the Board of Directors has studied the engineer- ing report which, generally stated, recommends a construction ;;-ogram in three phases (called "sections" in the engineering report) at intervals of approximately one year, with Section 1 D0o'� Page 2 consisting of the construction of an interceptor, Section 2 consisting of the construction of an interceptor, force main, sewage lift station and sewage treatment plant, and Section 3 consisting of the construction of an interceptor, all with needed and related improvements and expenditures and, where necessary, the acquisition of lands and easements (all of which will be herein sometimes referred to as the "improvements "); WHEREAS it has been determined that the most feasible way to finance the cost to the City of the improvements (with it being contemplated that moneys will be obtained from governmental agencies other than the City in the form of a grant or grants which will be used in addition to the moneys furnished by the City from the sale of Sewer Revenue Bonds, hereafter referred to) upon the most favorable terms to the City and upon the most favorable terms and conditions to the users of the sewer system of the City will be by the issuance of Sewer Revenue Bonds to refund the outstanding Sewer Revenue Bonds of the City dated December 1, 1956 and the Sewer Revenue Bonds of the City dated April 12 1960 (which will. require approximately $3,560,000 in principal amount of bonds and certain moneys on hand and available for the purpose) and to obtain the necessary moneys to be supplied by the City for financing the improvements, paying all necessary expenses and making all necessary expenditures incidental thereto, to the refunding and to the issuance of Sewer Revenue Bonds (which will require approximately $49720,000), making a total bond issue of $8,280,000; � � i � • t Page 3 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: Section 1. That the improvements be accomplished. The accomplishment of the improvements shall be under the control and supervision of, and all details in connection therewith shall be handled by, the heretofore created and presently existing Sewer Committee, and the Sewer Committee shall make all con- tracts and agreements necessary or incidental to the performance of its duties and the execution of its powers. It shall let all construction contracts pursuant to and in accordance with exist- ing laws and shall require such performance bonds and insurance from the contractors as, in the ,judgment of the Sewer Committee, will fully insure the completion of the improvements in accord- ance with the plans, specifications and drawings of the consult- ing engineers (copies of which are on file in the office of the City Clerk and in the office of the Manager of the sewer system) so as to fully promote and protect the best interests of the City and the holders and registered owners of the Sewer Revenue Bonds authorized hereby. Section 2. That under the authority of the Constitution and laws of the State of Arkansas, including particularly Act 132 of the Acts of Arkansas for the year 1933, as amended, and Act 297 of the Acts of Arkansas for the year 1937, as amended, City of Little Rocs, Arkansas, Sewer Revenue Bonds are hereby authorized and ordered sold in the total principal amount of Eight Million Two Hundred Eighty Thousand Dollars ($8,280,000), the proceeds of the sale of which are necessary to provide sufficient funds to refund all of the outstanding Sewer i � Y � a + t � Page 4 Revenue Bonds of the City dated December 1, 1956, all of the outstanding Sewer Revenue Bonds of the City dated April 1, 1960, and to pay the cost to the City of accomplishing the improvements, including, without limitation, the acquisition of necessary rights of way, engineering fees, legal fees and other necessary expenses incidental to the accomplishment of the improvements, to the refunding, and to the issuance of the Sewer Revenue Bonds (which Bonds will be herein referred to sometimes as "Sewer Revenue Bonds" or "Bonds "). The Bonds shall be negotiable coupon bonds payable to bearer but shall be subject to registration as to principal only. Interest on the Bonds shall be evidenced by interest coupons. The principal and interest shall be payable at the principal office of the paying agent or alternate paying agent (the purchaser of the bonds is being granted the right to designate the Trustee and paying agent and the City reserves the right to designate an alternate paying agent, with such designations to be set forth in a resolution of the Board of the Directors of the City, hereafter referred to). The Bonds shall be dated February 1, 1966, interest thereon shall be payable semiannually on February l and August I of each year, commencing August 1, 1966, and the principal of the Bonds shall mature annually on February 1 of each year as follows, but shall be subject to redemption prior to maturity as hereafter set forth: t ; ♦ t � Page 5 YEAR PRINCIPAL AMOUNTS 1967 $ 1809000 1968 1859000 1969 190,000 1970 2009000 1971 2059000 1972 2102000 1973 220,000 1974 2252000 1975 235,000 1976 245,000 1977 250,000 1978 260,000 1979 2702000 1980 2 80, 000 1981 290,000 1982 300,000 1983 310,000 1984 320,000 1985 335.000 1986 345,000 1987 360,000 1988 370,000 1989 3802000 1990 395,000 1991 4102000 1992 4252000 1993 435,000 1994 450,000 The Sewer Committee is hereby authorized to sell the Bonds at public sale on sealed bids in such manner and on such terms as the Sewer Committee shall deem to be in the best interest of the City which shall dot bL- inconsistent with applicable provisions of this ordinance. Section 3. That the action of the Sewer Committee in accepting a bid for the Bonds at the public sale thereof, in approving the designation of the purchaser of the Trustee and Page 6 paying agent, and if it so determines, in recommending to the Board of Directors an alternate paying agent, and in approving the details of the maturity schedule shall be submitted to the Board of Directors for approval by resolution. In this regard the bonds shall be numbered consecutively beginning with number one (1) and shall be in such denominations as shall be requested by the purchaser and approved by the Sewer Committee. The resolution of the Board of Directors, referred to above, shall set forth in detail a maturity schedule reflecting the years, bond numbers, yearly principal maturities, semiannual interest and total principal and interest requirements, and the resolution shall specify the denominations of the bonds. Thereafter, the bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the seal of the City. The facsimile signature of the Mayor may be used upon compliance with the provisions of Act No. 69 of the Acts of Arkansas of the year 1959. Interest coupons attached to the bonds shall be executed by the facsimile signature of the Mayor. The Mayor's facsimile signature shall have the same force and effect as if he had personally signed the bonds and coupons. The bonds shall be executed by the manual signature of the City Clerk. The principal of and interest on the bonds shall be payable solely out of the Sewer Revenue Bond Fund, as hereafter set forth, and shall be a valid claim of the bond holders only against such fund and the revenues pledged to such fund, which revenues are hereby pledged and if mortgaged for the equal and ratable payment of the principal of and interest on the bonds and shall be used for no other purpose except as in this ordinance specifically provided. The t y f � � Page 6 paying agent, and if it so determines, in recommending to the Board of Directors an alternate paying agent, and in approving the details of the maturity schedule shall be submitted to the Board of Directors for approval by resolution. In this regard the bonds shall be numbered consecutively beginning with number one (1) and shall be in such denominations as shall be requested by the purchaser and approved by the Sewer Committee. The resolution of the Board of Directors, referred to above, shall set forth in detail a maturity schedule reflecting the years, bond numbers, yearly principal maturities, semiannual interest and total principal and interest requirements, and the resolution shall specify the denominations of the bonds. Thereafter, the bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the seal of the City. The facsimile signature of the Mayor may be used upon compliance with the provisions of Act No. 69 of the Acts of Arkansas of the year 1959. Interest coupons attached to the bonds shall be executed by the facsimile signature of the Mayor. The Mayor's facsimile signature shall have the same force and effect as if he had personally signed the bonds and coupons. The bonds shall be executed by the manual signature of the City Clerk. The principal of and interest on the bonds shall be payable solely out of the Sewer Revenue Bond Fund, as hereafter set forth, and shall be a valid claim of the bond holders only against such fund and the revenues pledged to such fund, which revenues are hereby pledged and if mortgaged for the equal and ratable payment of the principal of and interest on the bonds and shall be used for no other purpose except as in this ordinance specifically provided. The Page 7 principal of and interest on the bonds shall not constitute an indebtedness of the City within any constitutional or statutory limitation. Section 4. That the Bonds and coupons shall be in substantially the following form and the Mayor and City Clerk are hereby authorized and directed to make all recitals contained therein: Pa ge 8 UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK SEWER REVENUE BOND NO. KNOW ALL MEN BY THESE PRESENTS: That the City of Little Rock, County of Pulaski, and State of Arkansas (called 'City"), acknowledges itself to owe and, for value received, hereby promises to pay to bearer, or if this bond be registered, to the registered owner hereof, solely from the special fund provided as hereafter set forth, the principal sum of DOLLARS in such coin or currency as shall be legal tender for the payment of debts due the United States of America on the first day of February, 19„.,_,, and to pay solely from said special fund interest hereon at the rate of per cent (_7.) per annum, from date, semiannually on February 1 and August 1 of each year, commencing August 1, 1966, upon presenta- tion and surrender of the annexed coupons as they severally become due. Both principal and interest of this bond are hereby made payable at the principal office of (the "Trustee" and the "Paying Agent "), or, at the option of the holder, at the principal office of (the "Alternate Paying Agent"). This bond is part of an issue of bonds aggregating Eight Million Two Hundred Eighty Thousand Dollars ($8,280,000), numbered consecutively from one (1) to Page 9 ( ), inclusive, all of like tenor and effect, except as to number, denomination, rate of interest, maturity and right of prior redemption, and are issued for the purpose of refunding the outstanding Sewer Revenue Bonds of the City, being an issue of Sewer Revenue Bonds dated December 1, 1956 and an issue of Sewer Revenue Bonds dated April 1, 1960, and financing the cost to the City of construct- ing extensions, betterments and improvements to the Sewer System of the City. The bonds of this issue are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, particularly Act 132 of the Acts of Arkansas of 1933, as amended, and Act 297 of the Acts of Arkansas for the year 1937, as amended, and pursuant W an ordiance of the Board of Directors of the City, duly adopted and approved, as supplemented by a Resolution of the Board of Directors of the City, duly adopted and approved, (being Ordinance No. adopted and approved on the day of , 196 and Resolution No. , adopted and approved on the day of , 1966, (collectively referred to herein as the "authorizing ordinancet°) and do not constitute an indebted- ness of the City within any constitutional or statutory limita- tion. The bonds are not general obligations of the City, but are special obligations payable solely from revenues derived from tie operation of the Sewer System, a. sufficient amount of which is to be set aside in a special fund for that purpose t identified as the "Sewer Revenue /Bond Fund ", created by the authorizing ordinance, and reference is hereby made to the Page 10 authorizing ordinance for a detailed statement of the nature and extent of the security (the flow of Sewer Revenue Funds is first to an operation and maintenance fund, second to the Sewer Revenue Bond Fund and third to a depreciation fund), the rights and obligations of the City, the Trustee, and the holders and registered owners of the bonds and the terms and conditions upon which the bonds are issued, including, without limitation, the covenant of the City to maintain rates for sewer service which shall be sufficient at all times to produce revenues adequate for the payment of the expenses of operation and maintenance of the sewer system, for the payment for the principal of and interest on the bonds, including paying agent's fees, and to make the required deposit into the depreciation fund. Under the provisions of Act 132 of the Acts of Arkansas for the year 1933, as amended, a lien is fixed upon the land for any unpaid sewer charge, even though the use of the sewer system is by a tenant or lessee instead of the owner, and pursuant thereto the Board of Directors has directed that suit will be brought to enforce the lien and collect unpaid sewer charges. The bonds will be subject to redemption prior to matur- ity in whole or in part, at the option of the City, in inverse numerical order as follows: (1) From the unexpended proceeds of the sale of the bonds not needed for accomplishing the refunding and the cost of the City of the construction work at a price of the principal amount of the bonds being redeemed plus accrued interest to the date of redemption on any interest payment date on and after February 1, 1969; (2) From surplus Page 7l reverejes derived from the operation of the sewer system at a price of the principal amount of the bonds being redeemed plus accrued interest on any interest payment date on and after February 1, 1974; and (3) From funds from any other source on any interest payment date on and after February 1, 1974 at a price of the principal amount of the bonds being redeemed plus accrued interest to the date of redemption and plus a premium as follows: 4% if redeemed A% if redeemed 3% if redeemed M if redeemed 2% if redeemed 12% if redeemed 1% if redeemed k% if redeemed No premium thei February February February February February February February February = eafter. 1, 1, 1, 1, 1, 1, 1, 1, 1974 or 1975 or 1976 or 1977 or 1978 or 1979 or 1980 or 1981 or August August August August August August August August 1, 1, 1, is 1, 1, 1, 1, 1974; 1975; 1976; 1977; 1978; 1979; 1980; 1981; Notice of the call for redemption shall be published one time in a newspaper published in the City of Little Rock, Arkansas and having a general circulation throughout the State of Arkansas, giving the number and maturity of each bond being called, the publication to be at least fifteen (15) days prior to the redemption date and after the date fixed for redemption each bond so called shall cease to bear interest, providing funds for its, payment are on deposit with the paying agent at that time. In addition, notice shall be given by first class mail to the registered owner of any bond registered as to the principal at the address of such owner reflected on the books of the Bond Registrar and if all outstanding bonds shall be registered as to principal, then notice by first class mail to the registered owners tthereof as aforesaid shall be sufficient and it shall not be necessary to publish notice of the redemption. i Page 12 This bond may be registered as to principal alone and may be discharged from such registration in the manner, with the effect and subject to the terms and conditions endorsed hereon. Subject to the provisions of registration endorsed hereon, nothing contained in this bond or in the authorizing ordinance shall affect or impair the negotiability of this bond and this Dond shall be deemed a negotiable instrument under/the laws of the State of Arkansas and is issued with the intent that the laws of the State of Arkansas will govern its construction. IT IS HEREBY CER'FIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and to be performed precedent to and in the issuance of this bond, have existed, have happened and have been performed in due time, form and manner, as required by law; that the indebtedness represented by the bonds of this issue does not exceed any constitutional or statutory limitations; and that sufficient revenues have been pledged to and will be set aside into the Sewer Revenue Bond Fund, referred to above, for the payment of the principal of and interest on the bonds of this issue. This bond shall not be valid until the Certificate of Authentication hereon shall have been signed by the Trustee. IN WITNESS WHEREOF, the City of Little Rock, Arkansas, by its Board of Directors, has caused this bond to be signed by the Mayor and City Clerk thereof (with either the manual or facsimile signature of the Mayor but with the manual signature of the City Clerk) and sealed with the seal of the City, and has caused the interest coupons attached to be signed by the r � r } t Page 13 facsimile signature of the Mayor, all as of the first day of February, 1966. ATTEST; City Clerk (SEAL) CITY OF LITTLE ROCK, ARKANSAS sy Mayor Page 14 (Form of Coupon) NO. February On the first day of August , 19 , the City of Little Rock, Pulaski County, Arkansas, unless the bond to which this coupon is attached is paid prior thereto, hereby promises to pay to bearer, solely out of the special fund specified in the bond to which this coupon is attached, DOLLARS in such coin or currency as shall be legal tender for the payment of debts due the United States of America at the principal office of or, at the option of the holder, at the principal office of , being six (6) months' interest then due on its Sewer Revenue Bond, dated February 1, 1966, and numbered CITY OF LITTLE ROCK, ARKANSAS By Mayor On each bond shall appear the following: CERTIFICATE OF AUTHENTICATION This is one of the bonds of the issue of Sewer Revenue Bonds of the City of Little Rock, Arkansas, dated February 1, 1966, and aggregating $8,280,000 in principal amount described in the bond to which this certificate is attached. By (Authorized Signature) Page '15 PROVISIONS FOR REGISTRATION AND RECONVERSION This bond may be registered as to principal alone on books of the City, kept by the Trustee as bond registrar, upon presentation hereof to the bond registrar, which shall make mention of such registration in the registration blank below, and this bond may thereafter be transferred only upon an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the bond registrar, such transfer to be made on such books and endorsed hereon by the bond registrar. Such transfer may be to bearer and thereafter transferability by delivery shall be restored, but this bond shall again be subject to successive registrations and transfers as befere. The principal of this bond, if registered, unless registered to bearer, shall be PaVable only to or upon the order of the registered owner or his legal representative. Notwithstanding the registration of this bond as to principal, the coupons shall remain payable to bearer and shall continue to be transferable by delivery. Payment to the bearer of the coupons shall fully discharge the City in respect tQ the interest therein mentioned whether or not this bond be registered as to principal and whether or not any such coupons be overdue. Date of Name of Registration Registered Owner Signature of Bond Registrar Page 16 Section 5. (a) That the City covenants that it will con- tinue in effect the present schedule of.rates for sewer services and that the rates will not be reduced except as hereafter provided in this section, which schedule of rates was established by Ordi- nance No. 11,679, adopted and approved on the 15th day of November, 1965 to which reference is hereby made for a detailed statement of the rates, and the provisions of said Ordinance No. 11,679 are here- by incorporated herein as though fully set forth at this point. (b) That the City covenants and agrees with the bond holders that said rates will produce a total revenue at least suffi- cient to pay the operation and maintenance expenses of the sewer system, pay the principal of and interest on the bonds, and paying agent's fees in connection therewith, and make the required de- posit into the depreciation fund. And, the City covenants and agrees that said rates shall, from time to time, as and when neces- sary, be increased to such an amount as will provide revenues at lease sufficient for the above set forth purposes. (c) That the City further covenants and agrees that said rates shall never be reduced, while any Sewer Revenue Bonds are outstanding, unless there is obtained from an independent certi- fied public accountant a written opinion, based upon the number of customers and customer usage as reflected by the records of the Sewer Committee, that the proposed new rates will produce suffi- cient revenue to provide for the cost of operation repair and de- preciation of the Sewer System for the then next succeeding fiscal • Page 17 year and leave a balance equal to at least one hundred forty per cent (140%) of the maximum amount that will become due in any year for principal, interest and service charges on all Sewer Revenue Bonds then outstanding. (d) That none of the facilities or services afforded by the Sewer System shall be furnished without a charge being made therefor. In the event that the City or any department, agency, or instrumentality thereof shall avail itself of the facilities and services afforded by the Sewer System, the reasonable value of the service or facilities so afforded shall be charged against the City or such department, agency or instrumentality and shall be paid for as the charges therefor accrue. The revenues so received shall be deemed to be revenues derived from the operation of the Sewer System and shall be used and accounted for in the same manner as the other revenues derived from the operation of the Sewer System; provided, however, that nothing herein shall be construed as requiring the City or any department, agency or instrumentality thereof to-avail itself of the facilities or services afforded by the Sewer System. Section 6. Sewer Fund. The Sewer System shall be con- tinuously operated as a revenue producing undertaking and all revenues derived from the operation of the System shall be paid into a special fund, which is hereby created and designated "Sewer Fund ". The revenues so deposited in the Sewer Fund are hereby pledged and shall be applied to the payment of the reasonable and necessary expenses of operation, repair and maintenance of the System, to the payment of the principal of and the interest on the Sewer Revenue Bonds, and to the J Page 1,g providing of a Depreciation Fund, as hereafter set forth. The Sewer Fund, and the other special funds hereafter in this Ordinance provided for, shall be maintained in such depositories of the City as shall from time to time be designated by the Sewer Committee, with all such depositories to hold membership in the Federal Deposit Insurance Corporation, and with all deposits in any depository in excess of the amount insured by the Federal Deposit Insurance Corporation to be secured by bonds or other direct or fully guaranteed obligations of the United States of America. Section 7. Sewer Operation and Maintenance Fund. There shall be paid from the Sewer Fund into a fund which is hereby created and designated "Sewer Operation and Maintenance Fund" on the first business day of each month while any of the bonds are outstanding an amount sufficient to pay the reasonable and necessary monthly expenses of operation, repair and mainte- nance of the System for such month and from which disbursement shall be made only for th ©se purposes. Fixed annual charges such as insurance premiums and the cost of major repair and maintenance expenses may be computed and set up on an annual basis, and one - twelfth (1/12) of the amount thereof may be paid into the Sewer Operation and Maintenance Fund each month. If in any month for any reason there shall be a failure to transfer and pay the required amount into said fund, the amount of any deficiency shall be added to the amount otherwise required to be transferred and paid into said fund in the next succeeding month. If in any fiscal year a surplus shall be accumulated in the Sewer Operation and Maintenance Fund over and above the amount which shall be necessary to defray the Page 19 reasonable and necessary cost of operation, repair and maintenance of the System during the remainder of the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred and deposited in the Sewer Revenue Bond Fund (hereinafter created) or to the Sewer Depreciation Fund (hereinafter created) as the Sewer Committee may designate; provided, however, that any such transfer into the Sewer Revenue Bond Fund shall be in addition to all other payments required to be made into said fund, Section S.. Sewer Revenue Bond Fund. (a) After making the monthly deposit into the Operation and Maintenance Fund, there shall be transferred and paid from the Sewer Fund into a special fund, which is hereby created and designated "Sewer Revenue Bond Fund" the sums in the amounts and at the times hereafter stated in subsection (b) for the purpose of providing funds for the payment of the principal of and interest on the bonds and the paying agent's fees as the same become due according to the maturity schedule to be set cut in the resolu- tion of the Board of Directors, heretofore referred to in Section _ 31 hereof, and to create a reserve for contingencies. (b) There shall be paid from the Sewer Fund into the Sewer Revenue Bond Fund on the first business day of each month until all outstanding Sewer Revenue Bonds, principal and interest, have been paid in full, or provision made for such payment, a sum equal to one -sixth (1/6) of the next installment of interest and.one- twelfth (1/12) of the next installment of principal, plus an amount sufficient to provide for the paying agent's fees, on all outstanding bonds. In addition it is hereby agreed that there shall be established in the bond fund Page 20 a res,_�r ,ye for contingencies in the amount of the maximum amount that will become due in any year, as reflected by the maturity schedule to be set forth in the resolution subsequently adopted, heretofore referred to, for principal and interest on the out- standing bonds, which reserve for contingencies in said amount shall be established over a ten (10) year period. To that end a sum equal to at least ten (10) per cent of the required amount shall be paid into the reserve for contingencies each year payable in equal monthly installments in advance (insofar as possible). (c) If the revenues of the Sewer System are insufficient to make the required payments into the Sewer Revenue Bond Fund on the first business day of any month, then the amount of any deficiency in the payment shall be added to the amount otherwise required to be paid into the Sewer Revenue Bond Fund on the first business day of the next month. (d) If for any reason there shall be a failure at any time to make any of the required payments into the Sewer Revenue Bond Fund, any sums then held in the reserve for contingencies shall be used to the extent necessary for the payment of the principal of and interest on the bonds, and the paying agent's fees, but the reserve for contingencies shall be reimbursed from the Sewer Fund before any of the moneys in the Sewer Fund shall be used for any other purpose except for,making the required monthly payments into the Operation and Maintenance Fund and into the Sewer Revenue Bond Fund. The reserve for contingencies shall be used solely as herein provided. (e) When the moneys in the Sewer Revenue Bond Fund, including the reserve for contingencies, shall be and remain 1 Page t1 sufficient to pay the principal of and interest on all Sewer Revenue Bonds then outstanding, and the paying agent's fees, there shall be no obligation to make any further payments into the Sewer Revenue Bond Fund. (f) All moneys in the Sewer Revenue Bond Fund shall be used solely for the payment of the principal of and interest on the bonds and the paying agent's fees, except as herein specifically provided. If a surplus shall exist in the Sewer Revenue Bond Fund over and above the amount necessary to insure the prompt payment of the principal of and interest on the bonds as the same become due and the paying agent's fees and over and above the required reserve for contingencies, such surplus may be used, at the option of the Sewer Committee, for the redemption of the bonds prior to maturity or for constructing extensions, betterments, and improvements to the Sewer System. (g) There shall be withdrawn from the Sewer Revenue Bond Fund at least five (5) days before the maturity date of any bond or interest coupon and deposited with the paying agent an amount equal to the amount of such bond or coupon for the sole purpose of paying the same, together with the paying agent's fee. Such deposit shall be at the sole risk of the City and shall not operate as a payment of the bond or coupon until so applied. Page .2Z Section 9. Sewer Depreciation Fund. After making the required payments into the Operation and Maintenance Fund and the Sew ,6r Revenue Bond Fund, there shall be paid from the Sewer Fund into a fund, which is hereby created and designated "Sewer Deprecia- tion Fundt° on the first business day of each month while any of the bonds are outstanding, three per cent (3 %) of the revenues of the Sewer System which remain after the required payment into the Operation and Maintenance Fu7:.d has been made. The moneys in the Sewer Depreciation Fund snail be used solely for the purpose of paying the cost of replacements made necessary by the depreciation of the Sewer System, provided, however, that moneys in the Sewer Depreciation Fund may be used to the extent necessary to prevent a default in the pay..ment of the principal of and interest on the bonds as the same become due. If in any fiscal year a surplus shall be accumulated in the Sewer Depreciation Fund over and above the amount necessary to defray the cost of the probable replace- ments during the then current fiscal year and the next ensuing fiscal -year, such surplus may be transferred and paid into the Sewer Revenue Bond Fund; provided, however, that such payments into the Sewer Revenue Bond Fund shall be in addition to all other pay- ments hereinbefore required to be made into the said Sewer Revenue Bond Fund. Section 10. All amounts on deposit in the Sewer Fund, the Sewer Operation and Maintenance Fund, the 1956 Sewer Revenue Bond Fund (excluding, however, the reserve for contingencies there- in) and the Sewer Depreciation Fund presently being maintained pursuant to the provisions of the ordinances authorizing the bonds being refunded by the bonds of this issue shall be transferred from each such fund to the corresponding fund created hereby. Page 23 Section 11. That any surplus in the Sewer Fund, after making the required monthly deposits into the other funds as set forth above, may be used, at the option of the City, (a) for the redemption of the bonds of this issue prior to maturity in the manner and upon the terms set forth herein pertaining to redemption prior to maturity; or (b) for the construction of extensions, better- ments and improvements to the Sewer System (including pal—nent of the principal of and interest on bonds issue therefor); or (c) for any lawful purpose. Section 12. That the City hereby agrees that all pay- ments on the bonds, principal and interest, shall be paid only through the designated Paying Agent or Agents. All bonds paid or purchased either at or before naturity shall be cancelled when such payment or purchase -is made, together with all unmatured cou- pons appertaining thereto, and held by the Manager- Engineer of the Sewer System and shall not be reissued. All unpaid interest coupons maturing on or prior to the date of such payment or pur- chase shall continue to be payable to the respective bearers thereof. Section 13. That the Sewer System shall be operated on a fiscal year basis beginning January, 1 and ending December 31 of each wear. Section 14. That the bonds shall be subject to redemp- tion prior to maturity in the manner and upon the terms set forth in the bond form appearing in Section 4 hereof. Section 15. That as long as any of the bonds authorized hereby are outstanding, the City shall not issue or attempt to issue any bonds or obligations claimed to be entitled to a priority of lien on the revenues of the Sewer System over the lien securing Page 2.4 the bonds of the issue herein authorized, including the herein authorized and any and all future extensions, betterments and im- provements. However, nothing in this ordinance shall be construed to prevent the issuance by the City of additional bonds to finance or pay the cost of constructing any future extensions, better- ments and improvements to the Sewer System; provided, the City shall not authorize or issue any such additional bonds ranking on a parity with the outstanding bonds of this issue unless and until there shall have been procured and filed with the Trustee a state- ment by an independent certified public accountant not in the regular employ of the City reciting the opinion based upon necessary inves- tigation that gross revenues derived from the operation of the Sewer System for the preceding fiscal year were sufficient in amount to provide for the annual cost of operation, repair, maintenance and depreciation of the Sewer System after the then contemplated ex- tensions, betterments and improvements shall have been completed and placed in operation, and to leave a balance equal to at least one hundred forty per cent (140 %) of the maximum amount that will be- come due in any year for principal, interest and service charges on all Sewer Revenue Bonds then outstanding and the Sewer Revenue Bonds then proposed to be issued. Section 16. That it is covenanted and agreed by the City with the holders of the bonds, or any of them, that the City and the Sewer Committee will faithfully and punctually perform all duties with reference to the Sewer System required by the Constitution and laws of the State of Arkansas, including the charging and collecting of reasonable and sufficient rates lawfully established for services rendered by the Sewer System, the segregating of the revenues of the Sewer System as herein required and the applying of said revenues to Page .25 the respective funds herein created and referred to. Section 17. That the City and the Sewer Committee covenant and agree that they will maintain the Sewer System in good condition and operate the same in an efficient manner and at reasonable cost. [Haile any Sewer Revenue Bonds are outstanding, the City and the Sewer Committee agree that they will insure and at all times keep insured, in the amount of the actual value thereof, in a responsible insurance company or companies authorized and qualified under the laws of the State of Arkansas to assume the risk thereof, all properties of the Sewer System against loss or damage thereto from fire, lightning, tornado, winds, riot, strike, civil commotion, malicious damage, explosion, and against loss or damage from any other causes customarily insured against by private companies en- gaged in a similar type of business. The insurance policies are to be taken with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, and are either to be placed in the custody of the Trustee or satis- factory evidence of said insurance shall be filed with the Trustee. In the event of loss, the proceeds of such insurance shall be applied solely toward the reconstruction, replacement or repair of the System, and in such event the City and the Sewer Committee will, with reasonable promptness, cause to be commenced and completed the reconstruction, replacement and repair work. If such proceeds are more than sufficient for such purposes, the balance remaining shall be deposited to the credit of the Sewer Fund and if such proceeds shall be insufficient for such purposes, the deficiency shall be supplied, first, from moneys in the Sewer/Depreciation Fund, and S �i Page 26 second, from moneys in the Sewer Operation and Maintenance Fund, and third, from available moneys in the Sewer Fund. Nothing herein shall be construed as requiring the City to expend any funds for operation and maintenance of the Sewer System or for premiums on its insurance which are derived from sources other than the opera- tion of the Sewer System, but nothing herein shall be construed as preventing the City from doing so. Section 18. That the City and the Sewer Committee coven- ant and agree that so long as any Sewer Revenue Bonds are outstand- ing, that they will not mortgage, pledge or otherwise encumber the Sewer System, or any part thereof or any revenues derived from the operation thereof, except as herein specifically provided, and will not sell, lease or otherwise dispose of any substantial portion of the same. Section 19. That the Sewer Committee shall keep or cause to be kept proper books of accounts and records (separate from all other records and accounts of the City) in which complete and correct entries shall be made of all transactions relating to the construction of the herein authorized extensions, betterments and improvements and relating to the operation of the Sewer System and its revenues. And such books shall be available for inspection by the holders of any of the bonds at reasonable times and under rea- sonable circumstances. The City and the Sewer Committee agree to have these records audited by an independent certified public accountant at least once each year, and a copy of the audit shall be delivered to the Trustee and to any bondholder who shall have placed his name and address on file with the Sewer Committee for Page 27 that purpose. Inthe event the City and the Sewer Committee fail or refuse to make the audit, the Trustee may, and upon request of the holders of not less than ten per cent (W%) in principal amount of the Sewer Revenue Bonds then outstanding shall, have the audit made, and the cost thereof shall be charged against the Sewer Operation and Maintenance Fund. In addition, at least once in each twelve (12) months during the construction of the herein authorized extensions, betterments and improvements, the City and the Sewer Committee shall cause an audit to be made by a certified public accountant covering all moneys pertaining to the construction fund (hereinafter created and referred to), and the security held there- for and any investments thereof, and all disbursements made pur- suant to requisitions filed by the Manager- Engineer of the Sewer System, and copies of such audit shall be furnished to the Trustee and furnished to any bondholder who shall have filed his name and address with the Sewer Committee for that purpose. Section 20. That the owner or owners of all improved property lying within the area that will be served by the Sewer System, after the proposed extensions, betterments and improvements have been completed, are hereby directed and required, upon written request from the Sewer Committee, to connect,all, toilet and waste water facilities of such improved property with the Sewer System; and the owners of property that is improved after the completion of the proposed extensions, betterments and improvements to the Sewer System shall, upon written request of the Sewer Committee, immediately connect the toilet and waste water facilities of such property with the Sewer System. The required notice by the Sewer 1 Page 28 Committee shall be given at least thirty (30) days prior to the final date for connection, and if any property owner shall fail to make such connection after having been so requested in writing, the City and the Sewer Committee Hereby covenant and agree to insti- tute appropriate proceedings in a court of competent jurisdiction to compel such connection. Furthermore, any property owner who fails or refuses to connect his improved property with the Sewer System after having been so requested by the Sewer Committee shall be guilty of a.�miisdemeanor and upon conviction shall be fined in any sum not less than $2.00 and not more than $10.00, and each day's failure or refusal after the expiration of the time fixed in the notice to make the connection shall be a separate offense; provided, however, that the provisions hereof pertaining to a misdemeanor shall be effective only in the event that the City Health Officer, or other duly designated individual or board, has found and declared that such failure on the part of any particular property owner constitutes a hazard to the public health and safety of the City and its inhabitants. 1 . f i Page 29 Section 21. (a) That the City covenants and agrees that the holders and registered owners of the Sewer Revenue Bonds shall have the protection of the provisions of Section 13 of Act 132 of the Acts of Arkansas of 1933, as amended, (Ark. Stats. 19.4113), and that the City will diligently proceed to enforce the lien of unpaid sewer charges against the premises served by the System and to collect the amount due together with the penalty and expenses authorized by said Act 132. And, if the City shall fail to proceed within thirty (30) days after written request shall have been filed by the Trustee, the Trustee may, and upon the written request of the holders and registered owners of not less than ten per cent (107.) in principal amount of the Sewer Revenue Bonds then outstanding shall proceed to enforce said lien in accordance with and pursuant to the authorization of said Act 132. Pane 30 (b) That if there be any default in the payment of the principal of or interest on any Sewer Revenue Bond, or if the City defaults in any Sewer Revenue Bond Fund requirement or in the per- formance of any of the other covenants contained and set forth in this Ordinance, the Trustee may, and upon the written request of the holders of not less than ten per cent (10 %) in principal amount of Sewer Revenue Bonds then outstanding shall, by proper suit compel the performance of the duties of the officials of the City as set forth in Act 132 of the Acts of Arkansas of 1933, as amended, and Act 297 of the Acts of Arkansas of 1937, as amended. And, in the case of a default in the principal of and interest on any of the outstanding Sewer Revenue Bonds, or if the City fails to complete any other obligation Which it herein assumes, and such default shall continue for thirty (30) days thereafter, the Trustee may, and upon the written request of the holders and registered owner of not less than ten per cent (107.) in principal amount of the Sewer Revenue Bonds then outstanding shall, apply in a proper action to a court of competent jurisdiction for the appointment of a receiver to administer the System on behalf of the City and the holders and registered owners of the bonds with power to charge and collect (or by mandatory injunct -.on or otherwise to cause to be charged and collected) rates sufficient to provide for the pay- ment of the expenses of operation, repair and maintenance and to e, Page 31 nay the bonds and interest outstanding and to apply the revenue in conformity with the provisions of Act 132 of 193:, as amended, Act 297 of 1937, as amended, and with this Ordinance. When all defaults in principal and interest payments have been cured, the custody and operation of the Vystem shall revert to the City. (c) No holder or registered owner of any of the out- standing Sewer Revenue Bonds shall have any right to institute any suit, action, mandamus or other proceeding in equity or in law for the protection or enforcement of any right under this Ordinance or under said Act 132 of 1933, as amended, and Act 297 of 1937, as amended, unless such holder previously shall have given to the Trustee written notice of the default on account of which such suit, action or proceeding is to be taker., and unless the holders and registered owners of not less than ten per cent (10 7.) in principal amount of the ISewer Revenue Bonds then outstand- ing shall have made written request of the Trustee after the right to exercise such powers or right of action, as the case may be, shall have accrued, and shall have afforded the Trustee a reason- able opportunity either to proceed to exercise the powers herein granted or granted by said Act 132 of 1933, as amended, and Act 297 of 1937, as amended, or by the laws of the State of Arkansas, or to institute such action, suit or proceeding in its name, and unless, also, there shall have been offered to the Trustee reason- able security and indemnity against the costs, expenses and lia- bilities to be incurred.therein, or thereby, and the Trustee shall have refused or neglected to comply with such request within a Page 32 reasonable time, and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to the execution of the powers and trusts of this Ordinance or to any other remedy hereunder. It is understood and intended that no one or more holders or-registered owners of the bonds hereby secured shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Ordinance, or to enforce any right hereunder except in the manner herein pro vided, that all proceedings at law or it equity shall be instituted, had and maintained in the manner herein provided and for the benefit of all holders and registered owners of the outstanding bonds and coupons, and that any individual rights of action or other right given to one or more of such holders and registered owners by law are restricted by this Ordinance to the rights and remedies herein provided. (d) That all rights and remedies enforceable by the Trustee, may be enforced by it without the possession of any of the bonds or coupons appertaining thereto, and any such suit, action or proceeding instituted by the Trustee shall be brought in its name for the benefit of all the holders of such bonds and coupons, subject to the provisions of this Ordinance. (e) That no remedy conferred upon or reserved to the Trustee or to the holders of the bonds is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing or available at law or in equity. Page 1.4.3 (f) That no delay or omission of the Trustee or of any holders or registered owners of the bonds to exercise any right or power accrued upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein; and every power and remedy given by this Ordinance to the Trustee and to the holders and registered owners of the bonds, respectively, may be exercised from time to time and as oaten as may be deemed expedient. (g) That the Trustee may, and upon the written request of the holders and regist ^-reed otmers of not less than ten per cent (10 %) in principal amount of ewer Revenue Bonds then out- standing shall, waive any default which shall have been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted under the provisions of this Ordinance or before the completion of the enforcement of any other remedy, but no such waiver shall extend to or affect any other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon. Page 34 Section 22. The Trustee shall only be responsible for the exercise of good faith and reasonable prudence in the execu- tion of its trust. The recitals in this ordinance and in the face of the bonds are the recitals of the City and not of the Trustee. The Trustee shall not be required to take any action as Trustee unless it shall have been requested to do so in writing by the holders and registered owners of not less than ten per cent (10 %) in principal amount of the Sewer Revenue Bonds then outstanding and shall have been offered reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10) days' notice in writing to the City, and the majority in value of the holders and registered owners of the outstanding Sewer Revenue Bonds at any time, with or without cause, may remove the Trustee. In the event of a vacancy in the office of Trustee, either by resignation or by removal, the majority in value of the holders and registered owners of the outstanding Sewer Revenue Bonds may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the City Clerk. If the majority in value of the holders and registered owners of the outstanding Sewer Revenue Bonds shall fail to fill a vacancy within thirty (30) days after the same shall occur, then the City shall forthwith designate a new Trustee by a written instrument filed in the office of the City Clerk. The original Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trust impos- ed upon it or them by this ordinance, but only upon the terms and conditions set forth in this ordinance and subject to the provisions Page 35 of this ordinance, to all of which the respective holders and regis- tered owners of the bonds agree. Such written acceptance shall be filed with the City Clerk, and a copy thereof shall be placed in the bond transcript. Any successor Trustee shall have all the powers herein granted to the original Trustee. Any Trustee that resigns or is removed pursuant to the provisions hereof shall cease to be paying agent and any successor Trustee shall be and become paying agent. The alternate paying agent may -resign, may be removed and a successor may be named in the same manner and upon the same terms set forth above with reference to the Trustee and the Paying Agent provided, however, it shall not be mandatory that a vacancy in the office Alternate Paying Agent be filled. Section 23. That when the bonds have been executed by the Mayor and City Clerk and the seal of the City impressed, as herein provided, they shall be delivered to the Trustee, which shall authenticate them and deliver them to the purchaser upon the payment of the purchase price. The Trustee shall see that the necessary notices of redemption for the bonds being refunded have been published as required. The total sale proceeds shall be handled as follows: (a) There shall be deposited into the Sewer Revenue Bond Fund the amount of the accrued interest paid by the purchaser; (b) The amount necessary to accomplish the refunding of the outstanding bonds being refunded hereby shall be withdrawn from the total sale proceeds and utilized for that purpose either by depositing the same in a trust or escrow fund to be held and used for the purpose or by investing the same in lawful invest- ments maturing or subject to redemption prior to maturity at such Page 36 times as to make available on the redemption date the amount neces- sary to accomplish the refunding on that date; and (c) The balance of the total sale proceeds shall be paid into a special fund of the City which is hereby created and designated "Sever Construction Fund" (sometimes called 9°Construction FundB°). The Construction Fund shall be maintained in a depository or depositories, designated by the Sewer Committee, that is a member of the Federal Deposit Insurance Corporation. The moneys in the Construction Fund in excess of the amount insured by the Federal. Deposit Insurance Corporation shall be continuously secured by bonds or other direct or fully guaranteed obligations of the United States of America or shall be invested as hereafter authorized. The moneys in the Construction Fund shall be disbursed for the pay- ment of the cost of accomplishing the improvements, paying neces- sary expenses and making necessary expenditures incidental thereto, paying engineering fees, paying legal fees, and paying the expenses of the authorization and issuance of the bonds. For each disburse- ment there shall be prepared a requisition signed by the City Treasurer and the Manager- Engineer of tree Sewer System stating in respect of each such payment: (1) The item number of the payment; (2) The name of the person, firm or corporation to whom payment is due; (3) The amount to be paid; and (4) The purpose by general classification for which the obligation to be paid was incurred. Each requisition shall be accompanied by a certificate signed by the Manager- Engineer of the Sewer System certifying: Page 37 (1) That obligations in the stated amounts have been incurred by the City and that each item thereof is a proper charge against the Construction Fund and has not been paid; (2) That there has not been filed with or served upon the Sewer Committee notice of any lien, right to lien, attachment upon, or claim affecting the right to receive payment of any of the moneys payable to any of the persons, firms or corpora- tions named in such requisition, which has not been released or will not be released simul- taneously with the payment of such obligation; and (3) That such requisition contains no item repre- senting payment on account of any retained percentage which the City is at the date of such certificate entitled to retain. In the case of all expenses over which the Consulting Engineers shall exercise supervision (which generally shall include all expenses and expenditures except engineering fees, legal fees, expenses pertaining to the authorization and issuance of the bonds and incidental expenses not directly related to the Construction), the applicable requisition shall be accompanied by a certificate signed by a duly authorized reresentative of the Consulting Engineers certifying approval ta:ereof. One copy of each requisi- tion with accompanying certificates shall be filed with the depository of the Construction Fund, one copy shall be filed with the Manager- Engineer of the Sewer System and one copy shall be filed with the City Treasurer. Upon receipt of each requisition the depository of the Construction Fund shall issue its check upon the Construction Fund payable to the :person, firm or corporation designated in the requisition. And, the City shall cause each r.-iository of the Construction Fund to execute an appropriate igeement whereby it accepts its responsibilities as set forth E -bove . Page 38 When the improvements have been completed and all authorized expenditures from the Construction Fund shall have been made, if there be any remaining balance in the Construction Fund, the City Treasurer and the Manager - Engineer of the Sewer System shall file a certificate with the depository of the Construction Fund, with a copy of the certificate to be filed with the Trustee, stating that the improvements have been accomplished and that all authorized expenditures have been made and specifying the disposition to be made of the remaining balance in the Construction Fund. In this regard, any such remaining balance may be used for redeeming bonds prior to maturity or may be transferred to the Sewer Fund, as shall be determined by the Sewer Committee. Upon receipt of the certi- ficate the depository of the Construction Fund shall transfer or disburse the remaining balance as directed in the certificate. Page 39 Section 24. (a) That moneys held for the credit of the Construction Fund shall, as nearly as may be practicable, be continuously invested and reinvested by the Sewer Committee in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder not later than six (6) months after the date of such investment. (b) Moneys held for the credit of the reserve for contingencies in the Sewer Revenue Bond Fund shall be continuously invested and reinvested by the Sewer Committee in direct obliga- tions of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than five (5) years after the date of such investment. (c) Moneys held for the credit of any other Sewer System Fund may, at the option of the Sewer Committee, be invested and reinvested by the Sewer Committee in direct obligations of, or obligations, the principal of and interest on which, are uncondi- tionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the date or dates when the moneys held for the credit of the particular fund will be required for the purposes intended. (d) Olbigations so purchased as an investment of moneys in any such fund shall be placed in the custody of the City Treasurer and shall be deemed at all times to be a part of such 3 � � J Page 40 fund and the interest accruing thereon and any profit realized from such investment shall be credited to such fund, and any loss resulting from such investment shall be charged to such fund, provided, however, that if earnings on investments of moneys in the reserve for contingencies increase the amount thereof in ex- cess of the required amount (the maximum annual requirements of the bonds as above specified), the earnings to the extent of said excess may be transferred out of the reserve for contingencies and into the Sewer Revenue Bond Fund and used as any other moneys may be used in the Sewer Revenue Bond Fund. Section 25.Tr1.at in the event the office of Mayor, City Clerk, City Treasurer, Manager- Engineer of the Sewer System, Board of Directors, or attorney for the Sewer Committee shall be abolished, or any two or more of such offices shall be merged or consolidated, or in the event the duties of a particular office shall be transferred to another office or officer, or in the event of a vacancy in any such office by reason of death,*resigna- tion, removal from office or otherwise, or in the event any such officer shall become incapable of performing the duties of his office by reason of sickness, absence from the City or otherwise, all powers conferred and all obligations and duties imposed upon such office or officer shall be performed by the office or officer succeeding to the principal functions thereof, or by the office or officer upon whom such powers, obligations and duties shall be imposed by law. 4146 � A Page 41 Section 26. That the provisions of this Ordinance shall constitute a binding contract between the City and the holders and registered owners of the outstanding bonds and coupons issued hereunder, and the City will at all times strictly adhere to the terms and provisions hereof and fully discharge all of its obligations hereunder. Subject to the terms and provisions contained in this section and not other- wise, the holders and registered owners of not less than seventy -five per cent (75 %) in aggregate principal amount of the bonds then outstanding shall have the right, from time to time, anything contained in this Ordinance to the contrary notwithstanding, to consent to and approve the adoption by the City of such Ordinance supplemental hereto as shall be necessary or desirable for the purpose of modify- ing, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Ordinance or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any bond issued hereunder, or (b) a reduction in the principal amount of any bond or the rate of interest therein, or (c) the creation of a lien upon or a pledge of revenues other than the lien and pledge created by this Ordinance, or (d) a privilege of priority of any bond or bonds over any other bond or bonds, or (e) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. Section 27 . That this ordinance shall not create any right of any kind and no right of any kind shall arise here- under pursuant to it until the bonds authorized by this ordinance shall be issued and delivered. 11 Page 42 Section 28. That the provisions of this ordinance are hereby declared to be separable and if any provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of the ordinance. Section 29. That all ordinances and parts of ordinances in conflict herewith are hareby repealed to the extent of such conflict. Section 30. That it is hereby ascertained and de- clared that the improvements must be accomplished as soon as possible in order to alleviate immediate hazards to the health, safety and welfare of the City, its inhabitants and their property, and that the improvements can be accomplished only by the issuance of the bonds. It is, therefore, declared that an emergency exists and this ordinance being necessary for the immediate pre- servation of the public peace, health and safety shall take effect and be enforced from and after its passage. PASSED: December 20, 1965 ATTEST: City Clerk APPROVED: Mayor