Ordinance 1990-2
An Ordinance of the Town of Millersburg authorizing the issuance of waterworks revenue bonds for the purpose of providing funds to pay the cost of certain additions, extensions and improvements to the municipal waterworks of said Town, providing for the safeguarding of the interests of the owners of said bonds, other matters connected therewith, including the issuance of notes in anticipation of bonds, and repealing ordinances inconsistent herewith
WHEREAS, the Town of Millersburg (the “Town”) now owns and operates an unencumbered municipal waterworks in accordance with the provisions of Title 8, Article 1.5 of the Indiana Code, and acts amendatory thereof and supplemental thereto (the “Act”), furnishing the public water supply to said Town and its inhabitants; and
WHEREAS, the Town Council now finds that the waterworks of the Town is in need of certain additions, extensions and improvements (the “Project”), the estimated cost of which, based on bids received, is in the amount of One Million Twenty-three Thousand Two Hundred Twenty-eight Dollars ($1,023,228); and
WHEREAS, the Town Council now finds that project costs in the amount of $73,228 have been paid previously and that it does not have sufficient funds available to pay the remaining costs of said Project and that it will be necessary to obtain such funds by the issuance and sale of waterworks revenue bonds in the estimated amount of Nine Hundred
Fifty Thousand Dollars ($950,000) payable out of the revenues of said waterworks and if necessary, bond anticipation notes (the “BANs”), and
WHEREAS, the Town has heretofore issued certain Water Utility Refunding and Improvement Bonds dated August 1, 1961 (the “1961 Bonds”), pursuant to an ordinance adopted January 24, 1961, which bonds are now outstanding in the principal amount of $6,000, bearing interest at the rate of 5% per annum, maturing annually on March 1 over a period ending March 1, 1991, and which 1961 Bonds constitute a first charge against 57% of the gross revenues of the waterworks; and
WHEREAS, the Town Council finds that there are sufficient funds to defease the now outstanding 1961 Bonds and that sufficient funds will be set aside in an Escrow Account to meet the principal of and interest on said 1961 Bonds when said payments become due in order to economically defense the 1961 Bond and that accordingly, the additional revenue bonds to be issued hereunder shall be technically junior and subordinate to the now outstanding 1961 Bonds; and
WHEREAS, the Town desires to authorize the issuance of BANs hereunder, if necessary, payable solely from the proceeds of waterworks revenue bonds issued to finance the aforementioned cost of the Project, and to authorize the refunding of said BANS, if issued; and
WHEREAS, all conditions precedent to the adoption of an ordinance authorizing the issuance of said bonds and BANs have been complied with in accordance with the provisions of the Act; now therefore,
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF MILLERSBURG, IN:
Section 1. Issuance of Bonds and BANs.
(a) That the Town, being the owner of and engaged in operating a municipal waterworks furnishing the public water supply to said Town and its inhabitants, now proceed with the Project, the cost of which shall not exceed $1,023,228 plus investment earnings on the BANs and bond proceeds without further authorization from the Town Council, and the financing thereof by the issuance of revenue bonds pursuant to and in the manner prescribed by the Act, which revenue bonds shall be payable solely out of the hereinafter defined Net Revenues of the waterworks, including all extensions thereof and additions and improvements thereto subsequently constructed or acquired and which bonds shall be technically junior and subordinate to the now outstanding 1961 Bonds.
(b) That the Project shall be constructed and installed in accordance with the plans and specifications heretofore prepared by Commonwealth Engineers, Inc., consulting engineers of Greenwood, Indiana, employed by said Town, which plans and specifications are hereby approved and which plans are by reference made a part of this ordinance as fully as if the same were attached hereto and incorporated herein and two copies of which are now on file in the office of the Clerk-Treasurer and are open for public inspection.
(c) The Town shall issue, if necessary, its BANs for the purpose of procuring interim financing to apply on the cost of said Project. The Town shall issue its BANs in an amount not to exceed Nine Hundred Fifty Thousand Dollars ($950,000) to be designated “Waterworks Bond Anticipation Notes.” Said BANs shall be numbered consecutively from 1 upward, shall be in multiples of $1,000, shall be dated as of the date of delivery thereof, and shall bear interest at a rate not to exceed 9% per annum (the exact rate or rates to be determined through negotiations with a financial institution or the Indiana Bond Bank) payable upon maturity. The BANs will mature one year from their date of delivery. The BANs are subject to renewal or extension at an interest rate or rates not to exceed 9% per annum (the exact rate or rates to be negotiated with a financial institution or the Indiana Bond Bank). The term of the BANs and all renewal BANs may not exceed five years from the date of delivery of the initial BANs. The BANs shall be registered in the name of the purchasers thereof.
The BANs shall be issued pursuant to IC 5-1-14-5 if sold to a financial institution or pursuant to IC 5-1.5-8-6.1 if sold to the Indiana fond Bank. The principal of and interest on the BANs shall be payable solely from the issuance of revenue bonds pursuant to and in the manner prescribed by the Act. The revenue bonds will be payable solely out of and constitute a first charge against the hereinafter defined Net Revenues of the waterworks, including the works heretofore constructed and all additions and improvements thereto and replacements thereof presently or subsequently constructed or acquired, technically subject to the outstanding 1961 Bonds.
(d) The Town shall issue its bonds, designated “Waterworks Revenue Bonds of 19___ “, to be completed with the year in which the bonds are issued, in the principal amount of NINE HUNDRED FIFTY THOUSAND DOLLARS ($950,000) for the purpose of procuring funds to apply on the costs of said Project, issuance costs and refunding the BANs, if issued.
Said bonds shall be sold at a price not less than 97.5% of the par value thereof, shall be issued in the denomination of One Thousand Dollars ($1,000) each or integral multiples thereof, numbered consecutively from 1 upward, dated as of the first day of the month in which they are sold or the date of delivery if sold to the Indiana Bond Bank and shall bear interest at a rate or rates not to exceed 7.5% per annum for bonds maturing January 1, 1992 through January 1, 1996; 8.0% per annum for bonds maturing January 1, 1997 through January 1, 2001; 8.5% per annum for bonds maturing January 1, 2002 through January 1, 2006; and 996 per annum for bonds maturing January 1, 2007 through January 1, 2011 (the exact rate or rates to be determined by bidding or through negotiation with the Indiana Bond Bank) payable semiannually on January 1 and July 1, beginning on January 1, 1991.
The BANs are prepayable by the Town, in whole or in part, at any time upon seven days’ notice to the owner of the BANs without any premium. The bonds of this issue maturing on or after January 1, 2002 are redeemable, at the option of the Town on January 1, 2001, or any interest payment date thereafter, on thirty days’ notice, in whole or in part, In inverse order of maturity and by lot within a maturity, at face value, together with the following premiums
3% if redeemed on January 1, 2001 or July 1, 2001;
2% f redeemed on January 1, 2002 or July 1, 2002;
1% if redeemed on January 1, 2003 or July 1, 2003;
0% if redeemed on January 1, 2004, or thereafter prior to maturity;
plus in each case accrued interest to the date fixed for redemption.
Notice of such redemption shall be mailed to the address of the registered owner as shown on the registration record of the Town not less than thirty (30) days prior to the date fixed for redemption unless such redemption notice is waived by the owner of the bond or bonds redeemed. The notice shall specify the date and place of redemption and the dates of maturity of the bonds called for redemption. The place of redemption may be determined by the Town. Interest on the bonds so called for redemption shall cease on the redemption date fixed in such notice if sufficient funds are available at the place of redemption to pay the redemption price on the date so named. The bonds shall mature serially on January 1 in the years and amounts as follows:
Year |
Amount |
1992 |
$23,000 |
1993 |
$24,000 |
1994 |
$26,000 |
1995 |
$28,000 |
1996 |
$30,000 |
1997 |
$32,000 |
1998 |
$34,000 |
1999 |
$37,000 |
2000 |
$39,000 |
2001 |
$42,000 |
2002 |
$45,000 |
2003 |
$48,000 |
2004 |
$52,000 |
2005 |
$56,000 |
2006 |
$60,000 |
2007 |
$64,000 |
2008 |
$69,000 |
2009 |
$75,000 |
2010 |
$80,000 |
2011 |
$86,000 |
Section 2. Registrar and Paying Agent. The Clerk-Treasurer is hereby authorized to contract with a qualified institution to serve as Registrar and Paying Agent for the bonds (“Registrar” or “Paying Agent”). Said Registrar is hereby charged with the responsibility of authenticating the bonds. The Clerk-Treasurer is hereby authorized to enter into such agreements or understandings with the Registrar on the date of issuance of the bonds, or at any later date until all the bonds mature or are redeemed, as will enable the institution to perform the services required of a registrar and paying agent. The Clerk-Treasurer is further authorized to pay such fees as the Registrar may charge for the services it provides as Registrar and Paying Agent and such fees may be paid from the Bond and Interest Redemption Account continued in Section 9 hereof to pay the principal of and interest on the bonds and fiscal agency charges, and after the 1961 Bonds are retired, from the Waterworks Sinking Fund created in Section 10 hereof.
As to the BANs and the bonds, if sold to the Indiana Bond Bank, the Clerk-Treasurer -.dill be designated the Registrar and Paying Agent and will be charged with the performance of all of the duties and responsibilities of Registrar and Paying Agent.
The principal of the bonds shall
be payable at the principal office of the Paying Agent. All payments of interest
on the bonds shall be paid by check, mailed to the registered owners thereof
at the addresses as they appear on the registration books kept by the Registrar
or at such other address as is provided to the Paying Agent in writing by
such registered owner. All payments on the bonds shall be made in any coin
or currency of the
Each bond shall be transferable or exchangeable only upon the books of the Town kept for that purpose at the principal office of the Registrar by the registered owner thereof in person, or by his attorney duly authorized in writing, upon surrender of such bond together with a written instrument of transfer or exchange satisfactory to the Registrar duly executed by the registered owner, or his attorney duly authorized in writing, and thereupon a new fully registered bond or bonds in an authorized aggregate principal amount and of the same maturity, shall be executed and delivered in the name of the transferee or transferees or the registered owner, as the case may be, in exchange therefore. The costs of such transfer or exchange shall be borne by the Town. The Town, Registrar and Paying Agent for the bonds may treat and consider the person in whose name such bonds are registered as the absolute owner thereof for all purposes including the purpose of receiving payment of, or on account of, the principal thereof and interest due thereon.
Interest on such bonds shall be payable from the interest payment date to which interest has been paid next preceding the authentication date of the bonds unless the bonds are authenticated after the fifteenth day of the month preceding an interest payment date and on or before such interest payment date in which ease they shall bear interest from such interest payment date, or unless the bonds are authenticated on or before December 15, 1990, in which case they shall bear interest from the dated date of the bonds until the principal shall be fully paid.
Section 3. Execution Each of said bonds and BANS shall be executed in the name of the Town by the manual or facsimile signature of the President, attested by the manual or facsimile signature of its Clerk-Treasurer and the seal of the Town shall be affixed, imprinted or impressed to or on each of said bonds and BANs manually, by facsimile or any other means; and said officials, by the t of a Signature and No Litigation Certificate, shall adopt as and for their own roper signatures the facsimile signatures appearing on said bonds and BANS. In case any officer whose signature or facsimile signature appears on the bonds or BANs shall to be such officer before the delivery of the bonds or BANs, the signature of such officer shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. The bonds shall also be authenticated by the manual signature of an authorized representative of the Registrar and no bond shall be valid or become obligatory tot’ an purpose until the certificate of authentication thereon has been so executed
Said bonds and BANs shall have all of the qualities and Incidents of negotiable instruments under the laws of the State of Indiana, subject to the provisions for registration herein.
Section 4. Form of Bonds. The form and tenor of said bonds shall be substantially as follows, all blanks to be filled in properly prior to delivery thereof: (See Clerk-Treasurer for example)
IN WITNESS WHEREOF, the Town of Millersburg, in Elkhart County, Indiana, has caused this bond to be executed in its corporate name by the manual or facsimile signature of its President, its corporate seal to be hereunto affixed, imprinted or impressed by any means and attested manually or by facsimile by its Clerk-Treasurer.