HomeMy WebLinkAboutS-11 Sewage Revenue Bond ORDINANCE NO. ~--//
An Ordinance concerning the construction by the
Town of Carmel, Indiana, of additional improve-
ments and extensions to its sewage works, the
issuance of additional revenue bonds to apply on
the cost thereof, the collection, segregation and
distribution of the revenues of said works, the
safeguarding of the interests of the holders of
said bonds, and other matters connected there-
with
WHEREAS, ~e Town of Carmel owns and operates works for the collec-
tion and treatment of sewage and other waste, and the Board of Trustees
has heretofore approved plans, specifications and estimates covering im-
provements and extensions to said sewage works under and pursuant to
Chapter 284 of the Acts of the General Assembly of the State of Indiana for
the year 1967 and has determined to finance a portion of the cost of such
improvements and extensions by the issuance of additional revenue bonds
under the provisions of said Act; and
WHEREAS, the plans, specifications and estimates prepared by the
engineer employed by the Town for the sewage works improvements and
extensions have been submitted to all governmental authorities having juris-
diction, particularly the Stream Pollution Control Board of the State of
Indiana and the State Board of Health, and have been approved by the afore-
said governmental authorities; and
WHEREAS, a federal grant in the amount of Two Hundred Twenty
Thousand Five Hundred Dollars ($ZZO, 500) and a State grant in the amou~at
of One Hundred T'~h Thousand Two Hundred Fifty Dollars ($110,250) have
been made available to the Town for application on the cost of said im-
provements and extensions, and the Town has funds on hand in the amount
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of Ninety-two Thousand Two Hundred Ninety-four Dollars ($92, 294) avail-
able for application on the cost of the project and it is necessary to issue
additional revenue bonds payable from the reven\les of the sewage works
to procure sufficient funds. to pay the balance of said cost; and
WHEREAS, the Board further finds.that bids for the construction of
said improvements and.extensions to the sewage works have been received,
and on the basis of said bids, the cost of said works, as defined in Sec. 1 of
said Chapter 284 of the Acts of 1967, will be in the amount of Seven Hundred
Twenty-three Thousand Forty-four Dollars {$7.23, 044); and
WHEREAS, pursuant to Ordinance No. S-l, 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-four Thousand Dollars
($234,000), bearing interest at the rate of Four and three-fourths per cent
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(4-3/40/0) per annum, and maturing serially on January 1 in the years 1969
to.1995; inclusive; and
WHEREAS, Sec. 13 of said Ordinance No. S-1 authorizes the issuance
of additional parity revenue bonds provided certain conditions are met;
and
WHEREAS, the Board now finds that all conditions precedent to the
adoption of an ordinance authorizing .the issuance of additional parity bonds
to provide the necessary funds to be applied on the cost of such additional
improvements and extensions have been complied with in accordance with
the provisions of the governing statute and of said Ordinance S"1; now
therefore,
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BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF
CARMEL, INDIANA:
Section 1. That the T own proceed with the construction of additional
lmpr.ovements and extensions to its sewage works in acc ordance with .the
plans and specifications heretofore prepared and filedby Clyde E. Williams
&: Associates, Inc., Consulting Engineers, employed by the Town, which
plans and specifications are hereby approved and by reference made a
part of this ordinance as f\llly as if the same were attached hereto and in-
corporated herein; that the cost of construction of said.improvements and
. extensions shall not exceed the sum of Seven Hundred Twenty-three Thou-
sand F\>rty-f~ur:Dollars ($723,044). The terms .'llewage treatment works, "
"work/;!, " and other. like terms where used in this ordinance shall be con-
strued.to mean and include all structures and property. Said improve-
ments and extension/;! shall be constructed.and the bonds herein authorized
shall be issued pursuant to and in accordance with the provisions of Chapter
284 of the Acts of the Indiana General Assembly for. the year. 1967 herein-
after sometimes referred tqas the "Act. "
Se'c. 2. Said additional additions and improvements, consisting of
sanitary sewers, raw sewage pump, primary settling tank, aeration.tank,
secondary settling tank, digester, sludge draw~off station and all neces-
sary appurtenant facilities, shall be furnished and constructed in accord-
ance with the plans, specifications and estimates hereinbefore referred to.
Sec. '3. The Town shall issue its sewage works revenue bonds in the
amount of Three Hundred. Thousand Dollars ($300,000) for the purpose of
procuring funds. to be applied on. the cost 'Of said works, as defined. in Sec.
I of said Act.
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Said bonds shall be designated "Sewage Works Revenue Bonds of
1968, " issued in the. denomination. of One Thousand Dollars ($1,000),
numbered consecutively from 1.. to 300, inclusive, dated as of the first
day of the month in which sold, and. shall bear. interest at a rate or rates
.not exceeding six per cent (6"/0) per annum, payable on the first days of
January and July in each year, beginning on July 1, 1968. Such interest
shall be evidenced by coupons attached to. said bonds. Both bonds and
. interest coupons shall be payable in lawful money of the United States of
America at the union State Bank, in the Town. of Carmel, Indiana, or at
the option of the holder, at The Indiana National Ba.nk of Indianapolis, in
the City of Inqianapolis, Indiana; and such bonds shall mature serially
in numerical order on January 1 in.the years and amounts as follows:
Years
1969
1970-1973 incl.
1974-1976 incl.
1977 -1979 incl.
1980-1982 incl.
1983-1986 incl.
1987-1988
Amounts
$3,000
4,000
5,000
6,000
7,000
8,000
9,000
Years
1989-1990
1991-1992
1993
1994-1995
1996
1997
1998
Amounts
$10,000
11, 000
12, 000
13,000
31, 000
32,000
34, 000
Sec. 4. The bonds .of this issue maturing on January 1, 1978, and
thereafter, shallbe redeemable at the option of the Town, in whole or in
part, on July 1, 1977, or any interest payment date thereafter, in.their
inverse numerical order, at face value, together with the following
premiums:
5"/0 if redeemed on July 1, 1977, or. thereafter on or before January
1, 1982;
4"/0 if redeemed on July 1, 1982, or thereafter on or before January
1, 1987;
3"/0 if redeemed on July 1, 1987, or thereafter on or before January
1, 1992;
2"/0 if redeemed on.Ju1y 1, 1992, or thereafter prior to maturity;
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plus in each case accrued. interest to the date fixed for redemption. No-
tice .of such redemption shall be published .at least one time. in a newspaper
or financial journal of general circulation published in the City of Indian-
apolis, not less.thanthirty (30) days prior to the date fixedJor redemption.
If any of the bonds so to be redeemed are registered, such notice shall be
mailed to the address of the registered holder as shown on the. registra-
tion record of the Town. The notice shall specify the date and.place of
. redemption and. the serial numbers 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 onthe 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, and when said bonds shall
be presented for redemption.
Sec. 5. Said bonds shall be signed in. the name of the Town of Carmel
. by the President of its Board of Trustees and attested by the Clerk-Treas-
urer who. shall affix the seal of said Town to each of said bonds. The in-
terest coupons attached .to said bonds shall be .executedby 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 shall have all
of the qualities and incidents of negotiable instruments under the laws of
the State of Indiana.
Saidbonds shall be negotiable by delivery unless registered. Upon
presentation of any of the bonds at the office of the Clerk-Treasurer.in
the Town of Carmel, said Clerk-Treasurer shall register said bonds as
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to principal without charge ar expense to' the halder. Such registry shall
be nated on each bond so presented, after which no transfer thereaf shall
be valid.unless made by the registered. owner in persan.or by.his attorney
duly authorized and .similarly noted on such band, 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 registratian af 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 payable to' bearer.
Said.bonds, certain naw autstanding bands in the amount af TwO' Hun~
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dred Thirty-four Thousand Dallars ($234,000), bearing. interest at the
rate af faur and three-faurths per cent (4-3/40/0), ranking on a parity
. therewith, and any bonds hereafter issued ranking an a pa:dty therewith,
as to bath principal and interest, shall be payable from and securedby an
irrevocable pledge of and shall constitute a first charge upon all the net
revenues (herein defined as gross revenues after deductian.anly for. the
payment of the reasonable expenses of operation, repair and maintenance)
of the sewage warks of the Town, including the warks herein autharized to
be acquired .and. canstructed, and all additians and improvements theretO'
and replacements thereof subsequently canstructed or acquired. The Tawn
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shall nat be oblL&ated to' pay said bands or the interest thereon except from
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the n~ revenues af. said warks, and said bonds shall not canstitute an in-
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debtedness af the. Tawn within the meaning of the.pravisions and .limitatians
af the canstitution af the State af Indiana.
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Sec. 6. The form and tenor of said bonds, the interest coupons to be
attached thereto, and the form of registry endorsement thereon shall be
substantially as follows, all bl;l.nks to be filled in properly prior to de-
livery thereof:
UNITED STATES OF AMERICA
State of Indiana
County of Hamilton
$1,000
No.
TOWN OF CARMEL
SEWAGE WORKS REVENUE BOND OF 1968
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 prin-
cipal amount of
ONE THOUSAND DOLLARS
on the first day of January, 19 (unless this bond be called
for redemptionp:dor to maturity as hereinafter provided), and
to pay interest thereon from the date hereof until the principal
is paid, at the rate of per cent ( We) per annum,
payable on the first days of January and July in each year, be-
ginning on July 1, 1968, upon presentation and surrender of the
annexed coupons as they severally become due.
Both principal and interest of this bond are payable in law-
ful money of the United States .of America at the Union State
Bank, in..the Town of Carmel, Indiana; or, at the option of the
holder, at The Indiana . National Bank .of Indianapolis, in the City
of Indianapolis, Indiana.
This bond is one of an authorized.issue of three hundred.(300)
bonds of the Town of Carmel, of .like. date,. tenor and effect,
except as to interest rates, numbering ;l.nddates of maturity,
in the total amount of Three Hundred Thousand Dollars ($300,000),
numbered from I to. 300 incluilive, issued for the purpose of pro-
yiding.funds to be applied on the cost of additional improvements
and .extensions to.the sewage works, as authorized by an ordinance
adopted.by the Board.of Trustees of the Town of Carmel on the
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day of , 1968, ~ntitled "An Ordinance
concerning the construction by the Town of Carmel, Indiana,
of additional improvements and .extensions to its sewage works,
the issuance of additional revenue bonds to apply on the cost
thereof, the collection, segregation and.distribution of the reve-
nues of said works, the safeguarding of the. interests of the holders
of said bonds, and. other mattersCQnnected therewith, " and in
strict compliance with the provisions of ChapteJ;" 284 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, certain now outstanding bonds in the. amount of Two Hun-
dred Thirty-four Thousand Dollars '($234, 000), bearing interest
at the rate of four and three-fourths per <;::ent (4-3! 4%), andma-
turing serially in the years 1969 to 1995, inclusive, ranking on
a parity therewith, and any bonds hereafter issued ranking on
a paJ;"ity thel."ewith, are payable solely from the Sewage Works
. Sinking Fund (heretofore created by Ordinance No.5-I, adopted
December 9, 1959) to be provided from the net revenues (here-
in.defined as gross revenues after deduction only for the pay-
ment of the reasonable e;x;penses of operation, repair and main-
tenance) 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 is sue of which it is a part, and all improve-
\ ments and extensions thereto and replacements there,Of subse-
quently <;::onstructed or acquired. This .bond shall not constitute
an indebtedness of the Town of C<l-rmel within the meaning of the
~rovisions and. limitations of the constitution .of the State of In-
iana, and the ToWn shall not be obligated to pay this bond or the
terest thereon.except from said. special fund.providedfrom said
net revenues.
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The Town of Carmel irrevocably pledges the entire net reve-
nu'es of said sewage works to the prompt payment of the prin-
cipal andinte,est of the bonds is sued on account of theconstruc-
tion 'of the improvements and extensions to its sewage works,
of which this is, one, .the noW outstanding bonds, and any bonds
hereafter issuedran~ing on a parity therewith, ~o the extent
nec.essa,y for that purpo,se, andcoyenants, that it will cause to
be fixed, maintained andcollect~d such rates and charges for'.
service rendered by said.works as are suffiCient in. each year.
for the payment of the pr'oper andr'easonable expenses of opera-
tion, repairand.maintenance of said works, and.for the pay- .
ment of the sums required to be.paid into said Sinking Fund
under. the pJ;"ovisions <;If said 4s::t; In the event the Town, or. the
proper officers thereof, shali faU or refuse to so fix, main-
tain ana.collect such rates or charges, or if there be a default
in the paymenb,'uf'the. interest on or principal of this bond, the
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holder of this bond shall have all of the rights and remedies pro-
vided.for in said Chapter 284, Ac;ts of 1967, induding the right
to have a receiver appointed to administeJ: the works and to
c;harge and c;ollec;t rates sufficient to provide for. the payment
of this bond and. the interest thereon.
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The TQwn of Carmel further coyenants that it will set aside
and pay into its Sewage Works Sinking Fund a sufficient amount
of the net revenue!! of !!aid.works to meet (a) the interest on this
bond. and all other bond!! which by their terms are payable fJ:om
the revenues of said sewa.ge works, as such interest shall fall
due, (b) .the necessa.ry fiscal agency c;harges for paying the bonds
and. interest, (c;) the Prindpal of this bond and all other bonds
payable from the revenues of said sewage works, as suc;h prin-
c;ipal shall fall due, and. (d) an additional amount as a margin
of safety, whic;hmargin, togetheJ: with any unused surplus of
s\1ch margin carried forward from the preceding year, shall
equal not less th.an ten per cent (10"/0) of all other amount!! so
required to be paid into said Sinking Fund. Such required pay-
ments shall constitute a first charge upon all the net revenues
of said .works.
This bond and all otheJ: bonds of said..issue shall have all
the qualities and incidents of negotiable instruments 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
Carmel, Indiana, in the name of the owneJ: hereof, and such
regist:rationn<;lted he:reonby saidCleJ:k-Treasurer. Thereafter
no transfer hereof shall be valid unless made at said office by
the registe;l;"ed owner in p'erSOn or by his duly authorbled attorney
and similarly noted hereon, but thisbond.may be discharged
f;l;"om registration by being il'llike manner transfe;l;"red.to bearer
and may again from time to time be registered. or transferred
to'.bearer as before. Such registration shall not restrict or
affect the negotiability of the interest coupons hereto attached
by delivery 'Only, but such interest coupons shall always be pay-
able to bearer.
The bonds of this issue maturing on January 1, 1978; and
thereafter, are redeemable at the option of the Town, in whole
or in part, in.inverse numerical order, on July 1, 1977, or any
interest payment date thereafter, at face. value, together with
the following premiums: five per cent (5"/0) if redeemed on July
1, 1977, or thereafter .on or before January 1, 1982; four per
cent(4"/o) if redeemed on July 1, 1982,or thereafter on or. be-
fore January 1, 19871 three per cent (30/0) if redeemed on July
1, 1987, or thereafter on or beforci January 1, 1992; two per
cent (20/0) if redeemed on July 1, 1992, o:r thereafter prior to
matudtYl plus in each case ;1.c;crued interest to the date fixed
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for redemption, Notice of such redemption shall be }l1l.blished
one time at least thirty. (30) days prior to the date fixed .for re"
demption, inanewspaper or financial journal publil!hed.inthe
City of Indianapolis, Indiana. A like notice shall be sent by mail
to the holderso! s\;lch bonds as ar.e then registered. Interest on
bonds S.o called for redemption shall cease on the redemption date
fix\ld in said notice, if funds are available ilt the place of redemp-
tionto pay the redemption P1:ice on the date so named .and when
presented for payment.
It is herl,lby certifil,ld 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 WHEREOF, the T l,lwn of Carmel, in Hamiltl,ln
.county, State of Indiana, has caus,edthis bond to. be executed
initscorparate name by the President of itl! B",a:rdof Trustees,
its corporate seal to be hereunto affixed and attested. by its Cle;J:'k-
. Treasurer, and.the interest .coupons hereto attached.to be exe-
cuted by placing thereon the facsimile signature. of the Clerk-
Treasurer, as of the first day of , 1968.
TOWN OF CARMEL
By
P:reside)lt, Board of Trustees
Attest:
Clerk. T ;J:'easurer
(Interest Coupon)
Coup\ln No.
$
On , 19 , (unless the bond he;J:'ein
mentioned "hall have been subject to and.called for previouS re-
demption), the Town of Carmel, Indiana, will pay to bearer, a~'
the Union State Bank, in the Town"f Carmel, Indi,ma, or at .the
. option of theholder, at'The !ndianaNational Bank of Indianapolis,
in the City of Indianap<:>lis, Indiana, out of its Sewage Works
Sip,king Fund," Dollars in law!ul money of the
UnitedStates 'of America, being the interest then due on its
Sewage. W\lrkl! Revenue Bond of 1968, dated 1, 1968,
No.
TOWN OF CARMEL
By (Facsimile)
CleJ;"k~Treasurer
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REGJSTRA. T ION ENDORSEMENT
This bond can be registered only at the office of the Clerk-
Treasurer in the Town of Carmel, Indiana. No writing here-
on except by the Clerk-Treasur.er.
Date of Registry
ill Whose Name
Registered
Clerk-Treasurer
Sec. 7. The Cle;l,"k-TJ;'easurer is herebyauthorized and directed to
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have said bonds and coupons prepared; and.the President of the Board
of Trustees and Clerk-Treasurer are hereby authorized and.directedto
execute said bonds and.the interest coupons to be attached thereh>, in the
form and manner herein provided. The Clerk-Treasurer is hereby author-
izedanddirected to deliver said bonds to the purchaser thereof after sale
made in accordance with the provisions of .thisordinance, provided.that
at the time of said delivery the Clerk-Treasurer shall coIled the full amount
which the purchaser has .agreed to pay therefor, which shall not be less
than the face -valu.e of said bQnds, plus accrued interest from the date
thereof to the date of delivery. The 1;>onds herein authorized, when fully
paid for and delivered to the purchaser, shall be the binding .special reve-
nue obligations of the Town, payable out of the reverrues of the Town's
sewage wO;l,"ks tQ be set aside into the Sewage Works Sinking Fund as here-
in provided, and.the pr<;>ceeds derived from the sale of said bonds shall be
and are hereby set aside for application On the cost of acquisition, con-
struction andinstallationQf said improvements and extensions to the
sewage works hereinbefore referred. to, and the expenses necessarily
incurred in connection therewith. The proper officerS of the TQwn are
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hereby directed to draw all proper and necessary warrants, and to do
whatever acts and things which may be necessary to carry out the pro-
visions of this ordinance.
Sec. 8. Prior to the sale of said bonds, the Clerk-Treasurer shall
cause to be published a noHce 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, and one time in The In.-
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dianapolis Commercial, 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 maxi-
mwn rate of interest thereon, the 1:\:>rrns and conditions upon which. bids
will be received and the sale made, and such other information as the
Clerk.Treasurer and the attorneys employed1;>y the Town shall deem
advisable. Said notice shall provide, among other. things, that each bid
shall be accompanied by a certified or cashier I s check in the amount of
Three Thousand Dc;>llars ($3, 000) to guarantee performance on the part
of the bidder, and .that in. the event .the succ;:essf1,1l bidder shall fail or
refuse to accept delivery of the bonds and pay for. the same as soon as
the bonds are ready for delivery, or at the time fixed in the notice of
sale, then said check and the proceeds thereof shall be the property of
the Town {l..nd shall be considered as its liquidated damages on account
of such defaultl also, that bidders fo.r said bonds will be required to
name the rate .or. rates of interest which the bonds are to bear, not ex-
ceeding the maximum. rate hereinbefore fixed, and that such interest
rate or rates shall be in multiples of one-eighth (1/8) of one per cent
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(l%); als"0that the opinion of Ice Miller DQn,a.dio &: Ryan, bond counsel
of Indianapolis, Indiana, appr'oving the legality of said bonds, will be
iurnhhed to the purchaser at the expense of the Town, and that no con-
ditional bids will be considered.
The bonds shall be awarded by the Clerk-Treasurer to the highest
qW\.lified bidder who has Bubmitted 'his bid in accordance with the terms
of this ordinance and the nGltice of sale. The higheBt bidder will be the
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Qne who offers the lowest net intereBt ,cost to the Town, to be determined
by computing the total interest on all of tho:: bonds to their maturities and
,deducting therefrom ,the pr,emium bid, if any. The right to reject any and
all bids shall be reserved. If an ae<;:eptable bid, is not received on the date
of sale, the sale will 1:;>e continued from day to day thereafter without fur-
ther advertisement for a period of thirty (30) days, during which time no
bid whichis lower than the highest bid received at the time of the adver-
tised sale will be considered.
Sec. 9. The accrued interest and premium received at the time of
the deiiveryof the bonds, if any, shall be deposited in the Sewage Works
Sinl9ng Fund hereinafter referred ta. The remaining proceeds from the
sale {)f said bonds shiill. be deposited in a bank or banks which are legally
designated depositories, far the funds of the TQwn, in a, special account
or accounts ta be designated as 1'1 Town of Carmel, Sewage, Works Con-
structiQn ACCQunt." All funds deposited to the credit Qf said Sewage Works
Sinking Fund or Sewage Works CQnstr,uction Account shall be depQsited,
held, secured or invested in accordance with the laws of the State of
Indiana relating to the depoBiting, holding, securing or investing of public
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funds, including particularly Chapter 90f the Acts of 1945, as amended.
The funds in said special account or accounts shall be expended only for
the purpose of paying the cost of the works, as defined in Sec. lof Chapter
284 of the Acts of 1967, or as otherwise required by saidA~t, and funds
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\ Any balance :or balances remaining unexfended in such special account
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for .construction. therein shalI'be expended only for the construction of the
project hereinbefore referred to inSections 1 and 20f this ordinance.
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. 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 Sewage Works Sinking Fund and shall be used solely for. the
purposes of s~id fund.
i Sec. 10.. The special fund designated "Sewage Works Sinking Fund"
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created by Ordinance No. 13-1, adopted. on December 9, 1959, for the pay-
ment of the principal .of and interest on the noW outstanding "Sewage Works
Revenue Bonds, " authorized by said. ordinance, is hereby designated and
constituted the sinking fund for the payment of the interest on and princi-
pal of the revenue bonds.herein.issuedon account of the construction of
said lmp;rovements and extensions. to. the sewage works, and any bonds
hereafter issued ranking on a parity. therewith, or subordinate thereto,
and the payment of any fiscal agency charges. in connection with the pay-
ment of bonds and.interest coupons. There shall be set aside and paid
into said.SinkingFund monthly, as available, a sufficient amount of the
net revenues of said sewage works, as hereinbefore defined, for the
payment of (a) the interest on all bonds which by their terms are payable
from the revenues of said sewage works, as such interest shall fall due,
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(b) the neces sary fiscal agency charges for paying the bonds and.interest,
(c) the principal of all bonds payable from the revenues of the sewage
works as such principal falls due, and (d) an additional amount as a mar-
gin of safety and for the payment of premiums upon bonds redeemed by
call or purchase, which margin, together with any unused surplus of such
margin. carried forward.from the preceding year, shall equal not less than
ten per cent (10%) of all other amounts so required to be paid.into said
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Binldng Fund. The monthly payments into said Sinking Fund shall be in
an .amount equal to. at least one-twelfth (1/12.) of the amount required .for
such payments during the then next succeeding twelve (12) calendar months
and shall cont~nue until such time as said fund shall contain an amount suf-
ficient to pay all of the bonds then outstanding, together with the interest
thereon to the dates of maturity thereof.
In no event shall any part of the Sewage Works Sinking Fund be used
in calling bonds for redemption prior to maturity, except to the extent
that the amount then in said Sinking Fund exceeds the amount required to
pay the bonds which will mature within a period of twelve (12) calendar
months 'next following the date of such redemption, together with all in-
terest on the bonds payable in said period. Any such exces s of funds
above said required. level may also be'.u,ied in purchasing outstanding bonds
at a. price less than the then applicable redemption price, if first approved
by the Board of Trustees. Moneys in said,Sinking Fund shall not be used
for any purpose whatsoever - except as stated in this section.
In the event all required payments into the Sewage Works Sinking Fund
have been met to date, and there 'has been accumulated in said fund' an
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amount sufficient to meet the requirements of said. fund for the. then next
succeeding twelve (12) months period, and.funds. in an.amount sufficient
for operation, repair and.maintenance for the then. next succeeding twelve
.(12) months period and for depreciation have been accumulated and re-
served, then the Board of Trustees may transfer any excess net reve-
nues into a fund for extensions, betterments and.additions to. the.works.
No such.transfer shall be made, however, which will interfere with the
.
required monthly payments into the Sewage Works.Sinking Fund or with
the operation of the works.
Sec. 11. . All revenues derived from the operation of the sewage works
and from the collection of sewage rates and charges shall be segregated
and kept in a. special Jund and.. in a separate bank account, separate and
apart from all other funds of the.Town. Out of this fund the proper and
reasonable expenses of operation, repair and.maintenance of the works
lihall be paid and.the requirements of the Sewage Works Sinking Fund shall
be met. The Town shall keep proper books of records and accounts, sep-
arate from all of its other records and accounts, in which complete and
correct entries shall be made showing all revenues collected from said
works and. deposited in said fund, and all dilibursements made therefrom
on account of the operation of the works, or to meet the requirements of
the Sewage Works Sinking Fund, also all tr;l.nsactions relating to said
works. There shall be prepared and furnished, upon written request,
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, covering the preced-
ingfiscal year, which annual statements shall be certified by the Clerk-
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Treasurer or. independent auditors. Copies of all such statements and
reports shall be kept on file in the oUice 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 inspections may be. made by
representatives. duly authorized by written instrument.
Sec. 12. The Town covenants and agrees that it will establish and
~
maintain just and equitable rates or charges for the use of and the ser-
.vice 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
sewage works by or. through any part of the sewerage system of the Town,
or that in any way uses or is served by such works; 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 required to be paid. into the Sewage Works
Sinking Fund by said governing Act and.this ordinance. Such rates or
charges shall, if necessary, be changed and readjusted from time to
time so that the revenues therefrom shall always be sufficient to meet
the expenses of operation, repair and maintenance, and the requirements
of the Sewage Works Sinking Fund. The rates or charges so established
shall apply to any and all use of such works by and .service rendered .to
th.e Town and all departments thereof as. the charges accrue.
Sec. 13. The.Town reserves the right to authorize and issue ad-
ditiona1 bonds, payable out of the revenues of its sewage works, ranking
on a parity with.the now outstanding. Sewage Works Revenue Bonds .and
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(
the bonds authorized by this ordinance, for the purpose of financing the
cost of future improvements and extensions to the sewage works, subject
to the following conditions:.
.---
(a) The interest on and principal of all bonds payable from the reve-
nues of the sewage works shall have been paid.to date in accordance with
the terms. thereof.
(b) As of the date of issuance of such additional bonds, there shall
.
have been a.ccumulated and set aside funds in an amount sufficient for
operation, repair and maintenance of the works.for the then next suc-
ceeding twelve (12) calendar months, and the balance in the Sewage Works
Sinking Fund shall equal not less than the principal and interest require-
ments of the. then outstanding bonds payable during ,the then next suc-
ceeding twelve (12) calendar months.
(c) The net operating revenues of the sewage works in the .fiscal
year immediately preceding. the issuance of any such additional parity
\
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bonds shall be not less than one hundred twenty-five per cent (1250/0) of
the maximum annual interest and principal requirements of the then out-
standing bonds and the maximum annual interest and principal require-
ments of the additional parity bonds proposed.to be issuedl or, prior to
the issuance of said parity bonds, the sewage rates.and charges shall be
increased sufficiently sO.that said. increased rates and charges applied
, to the previous fiscal year I s operations would have pr oduced net ope rat-
ing revenues. for said year equal to not less than.one hundred twenty-
five per cent. (1250/0) of the maximum annual interest and principal re-
quirements of the then outstanding bonds payable from the revenues of
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the sewage workll and. the additional parity bonds proposed to be issued.
For purposes of this subsection, the records of the sewage works shall
be analyzed and all showings shall be prepared by a. duly licensed con-
sultingengineer or a certified public accountant employed by the Town
for. that purpose, who shall certify that he has no pecuniary interest in
saidimpa'lovements or extensions, or the .financing. thereof,. other than
.to analyze said records and prepare said showings.
.
(d) The interest on the additional parity bonds shall be payable on
January 1 and July 1, and. the principal shall be payable on January 1 in
the years in which principal and'interest are payable.
Sec. 14. 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 construc-
tion of said improvements and extensions to.the sewage works shall be
let after due advertisement as required by the laws of the State of In-
diana, and all contractors shall be required to. furnish surety bonds in
an amount equal to one hundred per cent (100"!.) of the ;l.mount of such
contracts, to insure the completion of said contracts in accordance with
their. terms, and such contractors shall also be required to carry such
employers I 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.
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(b) The works shall be constructed under the supervision and sub-
ject to the approval of Clyde E. Williams. &: Associates, Inc., or such
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 reason-
.
.able cost.
(d) So long as any of the bonds herein authorized are outstanding,
the Town shall maintain insurance on the insurable parts of said works
of a kind and i? an amount such as would normally be carried by private
companies engaged in a similar type of busine5s. 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 otherwise encumber such works, or any part there-
of, nor shall it sell, lease or otherwise dispose of any portion thereof
except replaced equipment which may become worn out or obsolete.
(f) Except as hereinbefore provided in Sec. 13, so long as any of
the bonds herein authorized are outstanding, no additional bonds or other
obligations pledging any portion of the revenues of said sewage works
shall be authorized, executed or issued by the Town except such as shall
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be made subordinate and junior in all respects to the bonds herein au-
thori:z:ed, unless all of the bonds herein authori:z:ed are redeemed and
retired coincidentally with the delivery of such additional bonds, or other
obliga Hons.
(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-
.
tary sewers. The Town shall, insofar as possible, cause all such sani-
tary Sewers to be connected with said sewage works.
(h) The provisions of this ordinance shall constitute a contract by
andbetween the Town of Carmel and the holders of the sewage works
revenue bonds herein authori:z:ed, and after the issuance of said bonds,
this ordinance shall not be repealed or am,!,nded.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 long as any of
said bonds or the interest thereon remain unpaid.
(1) - The provisions of this ordinance shall be construed to create a
trust in the proceeds. of the sale of the bonds herein authori:z:ed.for the
uses and purposes herein set forth, and the holders of the bonds shall
retain a lien on such proceeds until the same are applied.in accordance
with the provisions of this ordinance and of said governing Act. The
provisions of this ordinance shall also be construed to create a trust in
the pDrtion of the net revenues herein directed. to be set apart and paid
into the Sewage Works Sinking Fund for the uses and purposes of said
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fund as in this ordinance set forth. The holders of said bonds shall have
all of the rights, remedies and privileges set forth in 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
default 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 m;dinance or the governing Act.
.
Sec. 15. The estimate of the rate.s,for the several classes of users
or property to be served, which are the rates currently in force, is as
follows:
Rate Structure Per
. Thousand Gallons
Amount
Minimum 2,500 gals.
$2.50
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 100,000 gals.
.30
Sec. 16. This ordinance shall be in full force and effect from and
after its pallsage and signingby a majority of the Boal'd of Trustees.
Approved and adopted by the Board. of Trustees of the Town of Carmel
'7JI. -
on the 30 day of ./AAllh4~~ ,1968..
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Clerk-/, rea surer
Ie;
Attest:
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