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HomeMy WebLinkAboutS-13 Revenue Bonds An,Ordinance concerning the acquisition and construc- tion by the Town of Carmel, Indiana, of additional im- provements and extensions to its sewage works, the is- suance of additional revenue bonds to apply on the cost thereof, the cotlection~ segregation and distribution of the revenues of said works, the safeguarding of the in- terests of the holders of said bonds, and other matters connected therewith WHEREAS, the Town of Carmel owns and operates works for the collection and treatment of sewage and other waste, and the ]~oard of Trustee s has heretofore approved plans, specifications and e stimate s covering acquisition and construction of improvements and extensions to said sewage works under and pursuant to Chapter Z84 of the Acts of the General Assembly of the State of Indiana for the year 1967 and has de- termined to finance a portion of the cost of such improvements and ex- tensions by the issuance of additional revenue bonds under the provi- sions of said Act; and WHEREAS, the plans, specifications and estimates prepared by the engineers for the sewage works improvements and extensions have been submitted to all governmental authoritie s having jurisdiction, particularly the Stream Pollution Control B~ard of the State of Indiana and the State Board of Health, and have been approved by the aforesaid governmental authorities; and WHEREAS, a federal grant in the amount of Two Hundred Twenty Thousand Three Hundred Thirty Dollkrs ($ZZ0,330) and a State grant in the amount of One Hundred Thousand One Huudred Fifty Dollars ($100,150) have been made available to the Town~0r application on the cost of said in- WHEREAS, the Board further finds that bids for the construction of improvements and extensions to the sewage works have been received, contracts have been obtained for the land and existing improvements to be acquired, and on the basis of said bids and contracts, the cost of said works, as defined in Section 1 of said Chapter Z84 of the Acts of 1967, will be in the amount of Eight Hundred Eighty Thousand Four Hundred Eighty Dollars ($880,480); and WHEREAS, pursuant to Ordinance No. S-i, adopted by the Board of Trustees of the Town on December 9, 1959, the Town has heretofore issued and now has outstanding revenue bonds payable from the revenues of said sewage works designated "Sewage Works Revenue Bonds," dated January 1, 1960, in the amount of Two Hundred Thirty Thousand Dollars ($Z30,000), and maturing serially on January 1 in the years 1970 to 1995, inclusive; and WHEREAS, pursuant to Ordinance No. S-il, adopted by the Board of Trustees of the Town on January 30, 1968, the Town has heretofore is- sued and now has outstanding revenue bonds payable from the revenues of said sewage works designated "Sewage Works Revenue Bonds of 1968,'! dated February I, 1968, in the amount of Two Hundred Ninety-seven Thou- sand Dollars ($Z97,000), and maturing on January 1 in the years 1970 to 1998, inclusive, which bonds rank on a parity with the "Sewage Works Revenue Bonds," dated January 1, 1960; and WHEREAS, said Ordinances No. S-1 and S-11 authorize the issuance of additional parity bonds provided certain conditions can be met, or the issuance of revenue bonds junior and subordinate in all respects to said the adoption of an ordinance authorizing the issuance of additional junior bonds to provide the necessary funds to be applied on the cost of such ad- ditional improvements and extensions have been complied with in accord- ance with the provisions of the governing statute; now therefore, BE IT ORDAINED BY TILE BOARD OF TRUSTEES OF THE TOWN OF CARMEL, INDIANA: Section 1. That the Town proceed with the acquisition and construc- tion of additional improvements and extensions to its sewage works in ac- cordance with the plans and specifications heretofore prepared and filed by Clyde E. Williams & Associates, Inc. and by Henry B. Steeg & Asso- ciates, Inc. , consulting engineers, employed by the Town, which plans and specifications are hereby approved and by reference made a part of this ordinance as fully as if the same were attached hereto and incorpor- ated herein; that the cost of acquisition and construction of said improve- ments and extensions shall not exceed the sum of Eight Hundred Eighty Thousand Four Hundred Eighty Dollars ($880,480). The terms "sewage treatment works," "works,'T and other like terms where used in this ordi- nance shall be construed to mean and include all structure s and property. Said improvements and extensions shall be constructed and the bonds here- in authorized shall be issued pursuant to and in accordance with the pro- visions of Chapter 284 of the Acts of the Indiana General Assembly for the year 1967 hereinafter sometimes referred to as the "Act." Sec. Z. Said additional additions and improvements, consisting of sanitary sewers, force mains, lift station, land acquisition, a control building, grit removal tank, two (Z) aeration tanks, t%vo (Z) secondary ities, shall be acquired or constructed in accordance with the plans, specifications and estimates hereinbefore referred to. Sec. 3. The Town shall issue its sewage ~vorks revenue bonds in the amount of Five Hundred Sixty Thousand Dollars ($560,000) for the purpose of procuring funds to be applied on the cost of said works, as defined in Section 1 of said Act. Said bonds shall be designated "Sewage Works Revenue Bonds of 1969" issued in such denominations as shall be determined pursuant to Section 9 hereof, numbered consecutively from R-1 up, dated as of the first day of March 1969, and shall bear interest at a rate or rates not exceeding four per cent (4%) per annum, payable on the first day of each month after issuamce un~il the principal sb~ll be fully paid; provided, how- ever, that in the event a fully registered bond is delivered after March 1~ 1969, the first interest thereon shall be payable from the date of delivery of such bond to the first day of the month succeeding such delivery. Said bonds shall be issued as fully registered bonds as to principal and interest. Both principal and interest shall be payable in lawful money of the United States of America. Principal shall be payable at the Union State Bank, in the Town of Carmel, Indiana, and interest shall be payable to the registered owner by check or draft mailed or delivered to said owner at his address as it appears on the registration records of the Town. The bonds shall mature on March 1, 1973. Said bonds shall be junior and subordinate in all respects to the Sewage Works Revenue Bonds dated January 1, 1960, and to the Sew- age Works Revenue Bonds of 1968, dated February 1, 1968. Sec. 4. Coupon bonds of this issue shall be redeemable at the option of the Town, in whole or in part, on any interest payment date, by lot, at be prepaid on any interest payment date in any multiples of One Thousand Dollars ($1,000). Coupon bonds called for redemption and fully regis- tered bonds calle~ for full or partial prepayment shall be selected by lot. If any of the bonds are to be redeemed, or any prepayments made, thirty (30) days' notice tI~e~eof shall be given by publication in a newspaper or financial journal published in the City of Indianapolis and by mailing to the address of the registered holder of any registered bonds as shown on the registration records of the Town. The notice shall specify the date and place of redemption or prepayment and the serial numbers of the bonds called for redemption or subject to prepayment° The place of re- demption or prepayment may be determined by the Town. Interest on the bonds so called for redemption, or On principal prepaid, shall cease on the redemption or prepayment date fixed in such notice, if sufficient funds are available at the place of redemption or prepayment to pay the redemption or prepayment price, plus accrued interest, on the date so named. Any bond to be redeemed or prepaid shall be presented at the place of redemption or prepayment, for redemption, or for the prepay- ment to be recorded on the prepayment record on the bond, as the case may be. Sec. 5. The form and tenor of said fully registered bonds and the prepayment record to appear thereon shall be substantially as follows, all blanks to be filled in properly prior to delivery thereof: UNITED STATES OF AMERICA State of Indiana County of Hamilton No. R- $ defined as gross revenues after deduction only for the payment of the reasonable expenses of operation, re- pair and maintenance) of the sewage works of the Town of Carmel, including the works constructed or acquired by the use of the proceeds of this bond and the issue of which it is a part, and all improvements and extensions thereto and replacements thereof subsequently constructed or acquired, subject, however, to the prior servicing of certain now outstanding bonds in the total amoun~ of Five Hundred Twenty-seven Thousand Dollars ($5Z7,000), and to the terms of Ordinances No. S-1 and No. S-11 author- izing the issuance of the n~)w outstanding bonds. This bond Dhall not constitute an indebtedness of the Town of Carmel within the me~ai~ing of the provisions and limitations of the constitution of the State of Indiana, and the Town shall not be obligated to pay this bond or the interest thereon except from said special fund provided from said net revenues. The Town of Carmel irrevocably pledges the entire net revenues of said sewage works to the prompt payment of the principal and interest of the bonds issued on account of the acquisition and construction of the improvements and extensions to its sewage works, of which this is one, and the now outstanding bonds, to the extent necessary for that purpose, and covenants that it will ca.se to be fixed, maintained and collected such rates and charges for service rendered by said works as are sufficient in each year for the payment of the proper and reasonable expenses of operation, repair and maintenance of said works, and for the payment of the sums required to be paid into the Sinking Funds and under the provisions of said Act. In the event the Town, or the proper officers thereof, shall fail or refuse to so fix, maintain and col- lect such rates or charges, or if there be a default in the payment of the interest on or principal of this bond, the holder of this bond shall have all of the rights and remedies provided for in said Chapter Z84, Acts of 1967, including the right to have a receiver appointed to administer the works and to charge and collect rates sufficient to provide for the payment of this bond and the interest thereon. The Town of Carmel further covenants that it will set aside and pay into its 1969 Sewage Works Sinking Fund a sufficient amount of th.e net revenues of said works to meet (a) the interest on this bond as such interest shall fall due, (b) the necessary fiscal agency charges for paying the bonds and interest, and {c) the principal of this bond as such principal shall fall due. Such required payments shall constitute a first charge upon all the net revenues of said works. vided in the ordinance authorizing the issuance of this bond and subject to the terms and conditions therein, this fully registered bond is exchangeable for coupon bonds at the option and expense of the registered owner° The principal of this bond may, at the option of the Town, be prepaid in whole or in part in any multiples of One Thousand Dollars ($1,000), upon the terms and conditions set forth in said ordinance, on any interest payment date, at par and accrued interest to the date of prepayment. In the event of any such prepayment, thirty (30) days' notice thereof shall be mailed to the address of the registered bolder as shown on the registration records of the Town. The notice shall specify the date and place of prepay- ment and the serial numbers ~nd the portion of the bond called for prepayment° The place of prepay- ment may be determined by the Town° Interest on the portion of the principal of the bond so called for prepayment shall cease on the prepayment date fixed in such notice, if sufficient funds are available at the place of prepayment to pay the prepayment price, plus accrued interest, on the date so named. Any bond to be prepaid shall be presented at the place of prepay- ment for the prepayment to be recorded on the pre- payment record on the bond. It is hereby certified and recited that all acts, con- ditions and things required to be done precedent to and in the execution, issuance and delivery of this bond have been done and performed in regular and due form as pro- vided by law. IN WITNESS WHEREOF, the Town of Carmel, in Hamilton County, State of Indiana, has caused this bond to be executed in its corporate name by the President of its Board of Trustees and its corporate seal to be here- ua/to affixed and attested by its Clerk-Treasurer, as of the first day of March, 1969o TOWN OF CARMEL By President, Board of Trustees Attest: ASSIGN NLENT FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto the within Sewage Works Revenue Bond of 1969 of the Town of Carmel, Indiana, and hereby authorizes said Town to transfer this Bond on its books. Dated , 19 In the Presence of: PRE PAYMENT RECORD Payments of Principal IVtade Prior to Matur~y. Pr incipat Date Payment Balance Pai~. Name of Paying Agent, Authorized Official and Title Sec. 6. At the option and expense of the registered owner of any fully registered bond, said fully registered bond may be exchanged for coupon bonds in a principal amount equal to the unpaid principal amount of said fully registered bond, which coupon bonds shall be in the denom- ination of One Thousand Dollars ($1,000) each, with coupons attached to evidence unpaid interest due semi-annually on Iv~arch 1 and September 1 of each year to maturity, the first coupon to evidence the interest from the then preceding interest payment date to the coupon due date. Said coupon bonds shall be negotiable by delivery unless registered, but may be registered as to principal only. Upon presentation of any of unless made by the registered owner in person or by his attorney duly authorized and similarly noted on such bond, but bonds so registered may be discharged from registry by being in like manner retransferred to bearer, after which they shall be transferable by delivery but may again be registered as before. The registration of any bond shall not affect the negotiability of the interest coupons attached thereto, but such coupons shall continue to pass by delivery merely and shall remain pay- able to bearer. The principal of and interest on such coupon bonds shall be payable in lawful money in the United States of America, at the Union State Bank, in the Town of Carmel, Indiana. Sec. 7. The form and tenor of said coupon bonds, the interest cou- pons to be attached thereto, and the form of registry endorsement thereon shall be substantially as follows, all blanks to be filled in properly prior to delivery thereof: State of Indiana No. C - UNITED STATES OF AMERICA County of Hamilton $!, ooo TOWN OF CARMEL SEWAGE WORKS REVENUE BOND OF 1969 The Town of Carmel, in Hamilton County, State of Indiana, for value received, hereby promises to pay to the bearer, or if this bond be registered then to the registered holder, solely out of the special revenue fund hereinafter referred to, the principal amount of ONE THOUSAND DOLLARS on the first day of March, 1973 (unless this bond be called for redemption prior to maturity as hereinafter provided), and to pay interest thereon from the date hereof until the principal is paid, at the rate of Both principal and interest of this bond are pay- able in lawful money of the United States of America at the Union State Bank, in the Town of Carmel, diana° This bond is one of an authorized issue of an ag- gregate principal amount of Five Hundred Sixty Thou- sand Dollars ($560,000), issued for the purpose of pro- v~-~g funds th be applied on the cost of additional im- provements and extensions to the sewage works, as authorized by an ordinance adopted by the Board of Trustees of the Town of Carmel on the day of , 1969, entitled "An Ordinance concerning the acquisition and construction by the Tov~n of Carmel, Indiana, of additional improve- ments and extensions to its sewage works, the is- suance of additional revenue bonds to apply on the cost thereof, the collection, segregation and dis- tribution of the revenues of said works, the safe- guarding of the interests of the holders of said bonds, and other matters connected therewith," and in strict compliance with the provisions of Chapter Z84 of the Acts of the Indiana General Assembly for the year 1967. Pursuant to the provisions of said Act and said ordinance, the principal and interest of this bond and all other bonds of said issue are payable solely from the 1969 Sewage Works Sinking Fund created by the ordinance authorizing the issuance of these bonds to be provided from the net revenues (herein defined as gross revenues after deduction only for the payment of the reasonable expenses of operation, repair and maintenance) of the sewage works of the Town of Carmel, including the works constructed or~ acquired by the use of the proceeds of this bond and the issue of which it is a part, and all improvements and extensions thereto and replacements thereof sub- sequently constructed or acquired, subject, however, to the prior servicing of certain now outstanding bonds in the total amount of !~ive Hundred Twenty-seven Thou- sand Dollars ($5Z7,000), and to the terms of Ordinances No. S-1 and No. S-11 authorizing the issuance of the now outstanding bonds. This bond shall not constitute an in- debtedness of the Town of Carmel within the meaning of the provisions and limitations of the constitution of the State of Indiana, and the Town shall not be obligated to pay this bond or the interest thereon except from said special fund provided from said net revenues. the extent necessary for that purpose, and covenants that it will cause to be fixed, maintained and collected such rates and charges for service rendered by said works as are sufficient in each year for the payment of the proper and reasonable expenses of operation, repair and maintenance of said works, and for the payment of the sums required to be paid into the Sinking Funds and under the provisions of said Act. In the event the Town, or the proper officers thereof, shall fail or refuse to so fix, maintain and collect such rates or charges, or if there be a default in the payment of the interest on or principal of this bond, the holder of this bond shall have all of the rights and remedies provided for in said Chapter Z84, Acts of 1967, including the right to have a receiver ap- pointed to administer the works and to charge and collect rates sufficient to provide for the payment of this bond and the interest thereon° The Town of Carmel further covenants that it will set aside and pay into its 1969 Sewage Works Sinking Fund a sufficient amount of the net revenues of said works to meet (a) the interest on this bond as such interest shall fall due, (b) the necessary fiscal agency charges for paying the bonds and interest, and (c) the principal of this bond as such principal shall fall due. Such required payments shall constitute a first charge upon all the net revenues of said works. This bond and all other bonds of said issue shall have all the qualities and incidents of negotiable in- struments under the laws of the State of Indiana. This bond may be registered as to principal at the office of the Clerk-Treasurer in the Town of Car- mel, Indiana, in the name of the owner hereof, and such registration noted hereon by said Cle rk-Treasurer. Thereafter no transfer hereof shall be valid unless made at said office by the registered owner in person or by his duly authorized attorney and similarly noted hereon, but this bond may be discharged from registration by being in like manner transferred to bearer and may again from time to time be registered or retrans- ferred to bearer as before. Such registration shall not re strict or affect the negotiability of the intere st coupons hereto attached by delivery only, but such in- terest coupons shall always be payable to bearer. The bonds of this issue are redeemable at the option of the Town, in whole or in part, by lot, on any interest payment date, at face value, plus in each case accrued interest to the date fixed' for re- so called for redemption shall cease on the redemp- tion date fixed in said notice, if funds are available at the place of redemption to pay the redemption price on the date so named and when presented for payment. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the execution, issuance and delivery of this bond have been done and performed in regular and due form as provided by law. IN WITNESS '~rHEREOF, the Town of Carmel, in Hamilton C?unty, State of Indiana, has caused this bond to be executed in its corporate name by the Pr~ident of its Board of Trustees, its cor- porate seal to be hereunto affixed and attested by its Clerk-Treasurer, and the interest coupons hereto attached to be executed by placing thereon the facsimile signature of the Clerk-Treasurer, as of the first day of Iviarch, 1969. TOWN OF CARMEL By President, Board of Trustees Attest: Clerk-Treasurer (Interest Coupon) Coupon No. $ , 19 ~ (~less the bond herein mentioned shall have been subject to and called for previous redemption), the Town of Carmel, Indiana, will pay to bearer, at the Union State Bank, in the Town of Carmel, Indiana, out of its Sewage Works Sinking Fund, Dollars in la~vful money of the United States of America, being the interest then due on its Sew- age Works Revenue Bond of 1969, dated March 1, 1969, No. C- TOWN OF CARMEL (Facsimile) Clerk-Treasurer REGISTRATION ENDORSEMENT This bond can be registered only at the office of the Clerk-Treasurer in the Town of Carmel, Indiana. No writing hereon except by the Clerk-Treasurer. Date of Registry In Whose Name Registered Cle rk-Tre asure r Sec. 8. Said bonds shall be signed in the name of the Town of Car- mel by the President of its Board of Trustees and attested by the Clerk- Treasurer who shall affix the seal of said Town to each of said bonds. The :mterest coupons attached to any coupon bonds shall be executed by placing thereon the facsimile signature of the Clerk-Treasurer, and said official by the signing of said bonds shall adopt as and for his own proper signature his facsimile signature appearing on said coupons. Said bonds, as to both principal and interest, shall be payable from and secured by an irrevocable pledge of and shall constitute a charge upon all the net revenues (herein defined as gross revenues after deduction only for the payment of the reasonable expenses of operation, repair and main- tenance) of the sewage works of the Town, including the works herein au- thorized to be acquired and constructed, and all additions and improve- ments thereto and replacements thereof subsequently constructed or ac- quired, subjec~ however, to the prior servicing of certain now outstanding bonds in the total amount of Five Hundred Txventy-seven Thousand DOllars ($527,000), and to the terms of Ordinances NO. S-1 and No. S-il author- izing the issuance of the now outstanding bonds. The Town shall not be obligated to pay said bonds or the interest thereon except from the net revenues of said works, and said bonds sh~ll not constitute an indebted- Sec. 9. The Clerk-Treasurer is hereby authorized and directed to have said bonds prepared, and the President of the ]Board of Trustees and Clerk-Treasurer are hereby authorized and directed to execute said bonds in the form and manner provided herein° Said bonds may be delivered in parcels at such times as the proceeds thereof are needed by the Town to meet the costs of acquisition and construction. The consulting engineers shall certify in writing to the Town, and to the purchaser of the bonds, the amounts that will be needed from time to time. Said certificates shall specify the names of the parties to whom payments are to be made, the amounts to be paid, the purpose for which payment is to be made, and the time when the payments will be required. The necessary bond, or bonds, in such denominations as the purchaser shall designate, but al- ways in multiples of One Thousand Dollars ($1,000), shall then be pre - pared, executed and delivered and paid for in order to meet the cost re- quirements as certified by the consu/ting engineers. The Clerk-Treasurer is hereby authorized and directed to deliver said bonds to the purchaser thereof after sale made in accordance with the provisions of this ordi- nance, provided that at the time of said deliveries the Clerk-Treasurer shall collect the full amount which the purchaser has agreed to pay for the parcel then being delivered. The bonds herein authorized, when duly paid for and delivered to the purchaser, shall be the binding special reve- nue obligations of the Town, payable out of the revenues of the Tovzn~s sewage works to be set aside into the 1969 Sewage Works Sinking Fund as herein provided, %vithout preference or priority regardless of the time or times of delivery of parcels thereof. The proceeds derived from the sale of said bonds shall be and are hereby set aside for application on the cost whatever acts and things ~vhich may be necessary to carry out the pro- visions of this ordinance. Sec. 10. Prior to the sale of said bonds, the Clerk-Treasurer shall cause to be published a notice of such sale once each week for two weeks in The Noblesville Daily Ledger and The Noblesville Times, there being no newspaper published in the Town of Carmel, the last publication to be at least seven (7) days prior to the date fixed for said sale. The bond sale notice shall state the time and place of sale~ the character and amount of the bonds, the maximum rate of interest thereon, the terms and conditions upon which bids will be received and the sale made, and such other information as the Clerk-Treasurer and the attorneys employed by the Town shall deem advisable. The bidders for said bonds will be re- quired to name the rate of interest which the bonds are to bear, not ex- ceeding the maximum rate hereinbefore fixed, and that such intere st rate shall be in multiples of one-eighth (1/8)of one per cent (1~0); also that the opinion of Ice IvLiller Donadio & Ryan, bond counsel of Indianapolis, Indiana, approving the legality of said bonds, %rill be furnished to the pur- chaser at the expense of the Town, and that no conditional bids will be con- sidered. The bonds sh~ll be awarded by the Clerk-Treasurer to the highest qualified bidder who has submitted his bid in accordance with the terms of this ordinance and the notice of sale. The highest bidder will be the one who offers thelowest net interest cost to the Town, to be determined by computing the total interest on ~11 of the bonds to their maturities and deducting therefrom the premium bid, if any. The right to reject any and bid which is lower than the highest bid received at the time of the adver- tised sale will be considered. Sec. 11. Any accrued interest and premium received at the time of the deliveries of the bonds shall be deposited in the 1969 Sewage Works Sinking Fund hereinafter referred to. The remaining proceeds from the sale of said bonds shall be deposited in a bank or banks which are legally designated depositories for the funds of the Town, in a special account or accounts to be designated as "Town of Carmel, 1969 Sewage Works Con- struction Account." Ail funds deposited to the credit of said 1969 Sewage Works Sinking Fund or 1969 Sewage Works Construction Account shall be deposited, held, Secured or invested in accordance with the laws of the State of Indiana relating to the depositing~ holding, securing or invest- ing of public funds, including particularly Chapter 9 of the Acts of 1945, as amended. The funds in said special account or accounts shall be ex- pended only for the purpose of paying the cost of the works, as defined in Sec. i of Chapter Z84 of the Acts of 1967, or as otherwise required by said Act, and funds for construction therein shall be expended only for the construction of the project hereinbefore referred to in Sections 1 and Z of this ordinance° Any balance or balances remaining unexpended in such special account or accounts after completion of the works, which are not required to meet unpaid obligations incurred in connection with such construction, shall be paid into the 1969 Sewage Works Sinking Fund and shall be used solely for the purposes of said fund. Sec. iZ. There is hereby created a special fund designated "1969 Sewage Works Sinking Fund" and constituted the sinking fund for the pay- ment of the /nterest on and principal of the revenue bonds herein issued be set aside and paid into said 1969 Sewage Works Sinking Fund monthly, as available, and after meeting the monthly deposits in the Sewage Works Sinking Fund created by Ordinance No. S-I, adopted December 9, 1959, and which constitutes the sinking fund for all of the now outstanding bonds, all of the net revenues of said sewage works, as hereinbefore defined, for the payment of (a} the interest on the Sewage Works Revenue Bonds of 1969 as such interest shall fall due, {b) the necessary fiscal agency charges for paying said bonds and the interest thereon, and (c} the principal of said bonds as such principal falls due, and said deposits shall continue until such time as said fund shall contain an amount sufficient to pay all of the Sewage Works Revenue Bonds of 1969 then outstanding, together with the interest thereon to the date of maturity. k4oneys in said 1969 Sewage Works Sinking Fund shall not be used for any purpose whatsoever except as stated above; provided that with the written consent of the registered holder, or holders, of all of the outstanding Sewage Works Revenue Bonds of 1969, the Board of Trustees may transfer funds from the 1969 Sewage Works Sinking Fund into a fund for extensions, betterme~ts and additions to the works, subject to the limitations in Ordinances No. S-1 and S-11 as to the creation and main- tenance of reserves before transfers to a fund for extensions, betterments and additions. Sec° 13. All revenues derived from the operation of the sewage works and from the collection of sewage rates and charges shall be seg- regated and kept in special funds and in Separate bank accounts, separate and apart from all other funds of the Town. Out of these funds the proper and reasonable expenses of operation, repair and maintenance of the works correct entries shall be made showing all revenues collected from said works and deposited in said fund, and all disbursements made there- from on account of the operation of the works, or to meet the require- ments of the Sewage Works Sinking Funds, also all transactions relating to said works. There shall be prepared and furnished, upon written quest, to the original purchasers of the bonds and to any subsequent holder of the bonds, not more than ninety (90) days after the close of each fiscal year, complete financial statements of the works, cove ring the preceding fiscal year, which annual statements shall be certified by the Clerk-Treasurer or independent auditors. Copies of all such state- ments and reports shall be kept on file in the office of the Clerk-Treasurer. Any holder or holders of the bonds then outstanding shall have the right at all reasonable times to inspect the works and all records, accounts and data of the Town relating thereto. Such inspection may be made by repre- sentatives duly authorized by written instrument. Sec. 14. The Town covenants and agrees that it will establish and maintain just and equitable rates or charges for the use of and the service rendered by said works, to be paid by the owner of each and every lot, parcel of real estate or building that is connected with and uses said sew- age works by or through any part of the sewerage system of the Town, or that in any way uses or is served by suchworks; that such rates or charges shall be sufficient in each year for the payment of the proper and reasonable expenses of operation, repair and maintenance of the works, and for the payment of the sums r.equired ~ be paid into the Sewage Works Sinking Funds by said governing Act, this Ordinance and Ordinances Moo S-I and merits of the Sewage Works Sinking Funds. The rates or charges so estab- lished shall apply to any and all use of such works by and service rendered to the Town and ail departments thereof as ~he charges accrue. Sec. 15. For the purpose of further safeguarding the interests of the holders of the bonds herein authorized, it is specifically provided as follows: (a) All contracts let by the Town in connection with the acquisition or construction of said improvements and extensions to the sewage works shall be, or have been, let after any advertisement as required by the laws of the State of Indiana, and all contractors shall be required to fur- nish surety bonds in an amount equal to one hundred per cent (100~e) of the amount of such contracts, to insure tke cornpletion of said contracts in accordance with their terms, and such contractors shall also be re- quired to carry such employers' liability and public liability insurance as are required under the laws of the State of Indiana in the case of public contracts, and shall be governed in all respects by the laws of the State of Indiana relating to public contracts° (b) The works skull be constructed under the supervision and sub- ject to the approval of Clyde E. Williams & Associates, Inc. or Henry B. Steeg & Associates, Inc., or suck other competent engineer as shall be designated by the Board of Trustees. All estimates for work done or material furnished shall first be checked by the engineer and approved by the ]Board of Trustees. (c) The Town shall at all times maintain its sewage works in good condition and operate the same in an efficient manner and at a reasonable cost° companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business under the laws of the State of Indiana. Insurance proceeds shall be used in replacing or repairing the property destroyed or damaged; or if not used for that purpose shall be treated and applied as net revenues of the works. (e) So long as any of the bonds are outstanding, the Town shall not mortgage, pledge or othe~vise encumber such works, or any part thereof, nor shall it sell, lease or otherwise dispose of any portion thereof except replaced equipment which may become worn out or obsolete. (f) So long as any of the bonds herein authorized are outstanding, no additional bonds or other obligations pledging any portion of the reve- hues of said sewage works shall be authorized, executed or issued by the Town, unless all of the bonds herein authorized are redeemed and retired coincidentally with the delivery of such additional bonds or other obligations, or unless the holders of the bonds issued pursuant to this ordinance shall consent to the issuance of such additional obligations and such consent be evidenced by endorsement of a legend to that effect on each bond. To the extent permitted by law, and if required to prevent a default in the pay- ment of the principal on the Sewage V~orks Revenue Bonds of 1969, the Town covenants to take all action or proceedings necessary to provide for the refunding of said bonds at or before the maturity thereof. (g) The Town shall take all action or proceedings necessary and proper to require connection of all property where liquid and solid waste, sewage, night soil, or industrial waste is produced with available sani- revenue bonds herein authorized, and after the issuance of said bonds, this ordinance shall not be repealed or amended in any respect which will adversely affect the rights of the holders of said bonds, nor shall the Board of Trustees adopt any law, ordinance or resolution which in any way adversely affects the rights of such holders so tong as any of said bonds or the interest thereon remain unpaid. (i) The provisions of this ordinance shall be construed to create a trust in the proceeds of the sale of the bonds herein authorized for the uses and purposes herein set forth~ and the holders of the bonds shall ~etain a lien on such proceeds until the same are applied in accordance with the provisions of this ordinance and of said governing Act. The pro- visions of this ordinance shall also be construed to create a trust in the portion of the net revenues herein directed to be set apart and paid into the 1969 Sewage Works Sinking Fund for the uses and purposes of said fund as in this ordinance set forth. The holders of said bonds shall have all of the rights, remedies and privileges set forth ~n the provisions of the governing Act hereinbefore referred to, including the right to have a receiver appointed to administer said sewage works, in the event of de- fault in the payment of the principal of or interest on any of the bonds herein authorized or in the event of default in respect to any of the pro- visions of this ordinance or the governing Act. Sec. 16. The estimate of the rates for the several classes of users or property to be served, which are the rates currently in force, is as fo l~ow s: Rate Structure Per Thsusand Gallons Amounts Minimum Z, 500 gals. SZ. 50 First 5,000 gals. 1.00 Next 10,000 gals. .95 Next 10,000 gals. .80 Next 25,000 gals. .70 Next 50,000 gals. .40 Over i00,000 gals. .30 Sec. 17. This ordinance shall be in full force and effect from and after its pass~ge and signing by a majority of the Board of Trustees. Approved and adopted by the Board of Trustees of the To~vn of Carmel the ~day of ~ , 1969. Attest: Board of Trustees Ci~k-Treasurer