Immediately after the proclamation by the Secretary of State stating the population of the cities of Ohio, as determined by the Federal census decennially taken, the Council shall redivide the City into wards upon the basis of one ward for each seven thousand (7,000) population or major portion thereof. Wards so formed shall be as nearly equal in population as may be composed of contiguous and compact territory, and bounded by natural boundaries or street lines. When any territory is annexed to the City the Council shall by ordinances declare it a part of the adjacent ward or wards. But if the highest vote cast in any such annexed territory at the last preceding regular election for any State, County or Municipal office exceeded two thousand (2, 000) then such annexed territory shall become and remain a separate ward or wards, entitled to elect one Councilman for each ward having a population of approximately seven thousand (7, 000) persons, until the City is next redivided into wards. If there is any territory within the City of Lima not assigned to or included in any ward, then the Council shall by ordinance declare such territory a part of the adjacent ward or wards.  Persons who are incarcerated in any penal institution within the city shall not be counted as part of the population of the city for purposes of dividing the city into wards pursuant to this section. (Amended 5-7-13)