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HomeMy WebLinkAboutOrd1955-258 r I I ! 10, I ORDINANCE NO. 258 AN ORDINANCE of the City of Seward, Alaska, creating an Electric Utility Construction Fund, providing for the payment of certain moneys therein, authorizing the issuance of warrants to be drawn thereon, also creating an Electric Utility Temporary Construction Fund, providing what moneys will be paid therein, and authorizing payments to be made therefrom. WHEREAS, pursuant to Ordinance No. 253 of the city of Seward, Alaska, passed and approved January 24, 1955, a special i election within the city was held at which el~ction the qualified electors of the city authorized the issuance and sale of electric utility revenue bonds in the principal sum of not to exceed $3,500,000 ) in order to provide funds to acquire, construct and install certain additions and improvements to and extensions of the utility electric system of the city; and WHEREAS, it appears that the city will incur certain expenses for the acquisition, construction and installation of part or all of said additions, improvements and extensions and for expenses incidental and necessary to such acquisition, contructi(~ and installation prior to the issuance of said revenue bonds or any part thereof and, therefore, that it will be necessary to create a Construction Fund of the city, provide for the payment of certain moneys therein, fix the purposes for which such moneys may be ex- pended, and authorize the issuance of warrants drawn on said Fund; and WHEREAS, it further appears necessary that another fund cS the city be created into which the moneys received from the sale of said warrants will be paid so that such money may be disbursed in payment of the costs of the acquisition, construction and installation of part or all of such additions, improvements and extensions and all costs incidental thereto for which said warrants were authorized; I' i I ! r I NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Seward, Alaska, as fOllows: Section 1. That there be and is hereby created a special fund of the city to be known as the "Electric Utility Construction Fund." All moneys received from the sale of the electric utility revenue bonds of the city authorized by Ordinance No. 253, and ap- proved by the qualified electors of the city at the special election held therein on February 23, 1955, or any part of said bonds so authorized, shall be paid into said Construction Fund. The money . therein shall be used for the sole purpose of paying the cost of acquiring, constructing and installing those additions and improvements to and extensions of the electric utility system of the city and all expenses incidental thereto as authorized in said Ordinance No. 253 and by vote of the qualified electors of the city. Section 2. In the event it is found necessary from time to time to carry out part or all of said plan of additions and improvements to and extensions of the electric utility system or to pay any costs incidental thereto and it is not deemed advisable that the city issue part of said revenue bonds at such time or times to pay the cost thereof, the city may issue and sell its warrants drawn on said Electric Utility Construction Fund to provide funds to pay such cost, including any of said incidental expenses, upon authorization by the Common Council. Such warrants shall be numbered, be dated, be in such amounts, mature at such time or times, be callable at such time or times, bear interest 2. ~ .- at the rate of 5% per annum from the date of their issuance to the date of redemption, and be made payble to such person, firm, corporation or bank as shall be authorized by the Common Council, and shall be redeemed in order of their number out of the first moneys derived from the first sale of said electric utility revenue bonds or any part thereof that shall be paid into said Construction FUnd as herein- above provided. Section 3. That there be and is hereby created another special fund of the city to be known as the "Electric Utility Temporary Con- struction Fund." All moneys received from the sale of the warrants drawn on the Electric Utility Construction Fund hereinabove created shall be paid into said Temporary Construction Fund. Such moneys shall be used for the sole purpose of paying the costs of carrying out said plan of additions and improvements to and extensions of the electric utility system for which the warrants drawn on said Construction Fund were authorized. s~tion 4. This ordinance shall take effect immediately upon its passage,~proval, execution and posting or publication in the manner required by law and ordinances of the City of Seward. PASSED by the Common Council of the City of Seward October approved by its Mayor this ~ day of ~;~, 1955. CITY(~:~:~ ' ~~ ? By ~<4~~.) and Maypr:> ATTEST~f??t~ ~, City Clerk 3.