Section 80.
The town of Falls City is hereby authorized and empowered to construct, operate, and maintain
water works within and without the limits of said Town, for the purpose of supplying the Town and
its inhabitants with water, and to charge tolls therefor. For the purposes in this section stated
said Town may purchase all real property, whether located within or without the limits of said
Town necessary for reservoirs, pumping stations, other buildings and pipe lines, and may purchase
all waters of lakes and streams and riparian rights necessary or convenient therefor. If the
said Town shall be unable to agree with the owner of such property for the purchase thereof, the
said Town may appropriate and condemn to its own use for the purposes aforesaid and all real
property, waters, streams, and riparian rights, whether located within or without the limits of
said Town. The proceeding in such action to condemn shall be the same as those provided by the
laws of Oregon for the condemnation of lands for railway purposes. For the purposes aforesaid
said Town is hereby authorized to issue interest-bearing negotiable coupon bonds of the Town, to
run not more than twenty years from the date of their issue, to the amount of $30,000.00, which
bonds shall draw interest not to exceed the rate of seven per centum per annum, payable annually
or semi-annually at such place as the council by Ordinance shall designate.
Section 81.
The money arising from the sale of said bonds shall be expended in the construction or purchase
of a system of water works, for the purpose of supplying the inhabitants of said town with good
and wholesome water for domestic purposes, for fire and power purposes, for the construction or
purchase of gas or electric plant for the lighting of said town and heating and power purposes,
for the construction of a sewerage system in said town, for the improvement of streets and
highways in said town, for the erection of public municipal building in said town, or on land
owned by said town, or for either or all of said purposes; provided, that the operating plant or
pipe lines of such gas, electric, or water works may be located outside of said town limits of
said town or held by said town under perpetual lease or right of way.
Section 82.
Before the bonds aforesaid, or any part thereof, shall be issued, the question of issuing the
same or any part thereof, shall be submitted to the voters of said town at a regular town election,
or at a special election held therefor, which special election shall be conducted as far as may
be in all respects in the same manner as a regular town election; provided, that the notice of
said general or special election shall contain a statement of the object or objects of the
proposed issue, and the estimated cost of each and every one of the said proposed objects.
Section 83.
If a majority of the legal voters of the said town shall be in favor of the issue of said bonds,
they shall be issued, or such part thereof as shall be authorized at said election, by the city
council of said town.
Section 84.
Before the issue of the bonds as aforesaid, an advertisement shall be inserted in some newspaper
or general circulation, published within the State, for at least four consecutive weeks, and may
be advertised in such other manner as the council may authorize, and said bonds shall be sold to
the highest bidder; provided, said bonds shall not be sold for less than their face value;
provided further, that the council shall reserve the right to reject any and all bids.
Section 85.
That said bonds as aforesaid shall be in denomination of not less than $100 nor more than $1,000
as the council may elect, and shall be signed by the mayor, with his name of office, and attested
by the recorder.
Section 86.
The city council of the said town shall at the same time the tax for general purposes is levied,
and at least once in each year, levy and collect a special tax on all taxable property in said
town sufficient to raise money enough, which taken together with the net revenue derived during
that year from any water works or light plant which may be erected or acquired with money derived
from the sale of said bonds, will pay the semi-annual or annual interest on said bonds, and to
pay one-twentieth of the face or par value of said bonds, which tax, when collected, shall be a
sinking fund, and shall be used to pay semi-annual or annual interest and to pay said bonds on
their maturity. Said tax to provide for said sinking fund may be included in other taxes of
said town and considered a part thereof for the purpose of levying and collecting the same; but
as fast as the tax is collected, its proportion to the other taxes collected with, or included in
the sum collected shall be set apart from the other taxes as the aforesaid sinking fund, and shall
only be used for the purpose of the semi-annual or annual interest on said bonds, and for the
payment of said bonds on maturity and for no other purpose whatsoever.
Section 87.
The money belonging to the sinking fund, provided for in the preceding section of this act, shall
be by the city council, invested from time to time in interest-bearing bonds of the United States,
or of this State, or of Polk County, or of some municipal corporation or school district of this
State, or used in purchasing any outstanding bonds of the town, for the payment of which said
sinking fund was created; And the council shall have the power to collect any of the securities
herein mentioned when due and to collect the interest arising therefrom when said interest shall
become due and payable. And the council shall place said interest, when collected, in the
sinking fund provided for in this act, and the same shall thenceforth be considered a part of
said sinking fund, and shall be kept and used in the manner as hereinbefore provided for the
keeping and use of said fund.
Section 88.
The money arising from the sale of any of the bonds provided to be sold under this act, shall not
be used for any purpose other than as set out on the notice of election held to authorize the
issuance thereof. And if there be any surplus after the purpose for which the bonds were issued
shall have been accomplished, the same shall be placed in the sinking fund herein provided,
provided, that the said surplus may be used for other purposes authorized in section 81 of this
act, if such use be authorized by a majority of the legal voters of the town expressed at a
regular election or a special election held therefor, proper notice being given as provided in
section 82 of this act.