HomeMy WebLinkAboutS-1 Issuance of Revenue Bonds ORDiN_~NCE NO. S-~
A.n Ordinance concerning the construction and opera-
tion by the Town of carmel, Indian~, of sewage works,
revenue bonds to provide the cost
· lection, segregation and distribu ~Oof
the issuance ~' n
thereof, the col _~ .... ~ . the safeguarding ox
of the revenues of s~¢~ ~v~s,
the interests of the holders of said bonds, and other
matters connected thereEith
WHEREAS, the Board of Trustees of the ToEn of Carmel finds
that the Stream Pollution Control Board of the state of Indiana,
acting under the provisions of Chapter 9~4 of the Acts of 1943,
issued a final order on March 2, 1959 kgainst said Town to cease
polluting the streams and watercourses in and about said Town and
to provide sewage works sufficient to correct or abate such pol-
iution; and
~fica-
WHER~S, the Board has heretofore approved plans, s~W~
tions and estimates and determined to establish~ construct, ee~iP~
own, operate and maintain the sewage works under and pursuant to
Chapter 6~ of the Acts of the General Assembly of the State of
Indiana for the year 1932 (Special Session), and all acts amenda-
tory thereof and supplemental thereto, and has determined to fin-
ance the cost of such works, over and above the amount of funds
available therefor from a federal grant, by the issuance of re-
venue bonds under the provisions of said Act, the amount, terms
and conditions of such bonds to be s~osequently determined by the
Board; and
w~qER~S~ the plans, specifications and estimates prepared
by the engineer employed by the Town for the sewage works have
been eubmitted to all governmental authorities having ~urisdic-
tion, particularly the Stream Pollution Control Board of the
State of Indiana and the State Board of Health, and have been
~ase 2
tion of said ~orks t~ave been received, and on the oa~tS of said
bids the cost of said ~orks, as defined in Sec. 7 of the governing
~ Three Hu~au. rea Forty Six Thousand
o~c~, ~ill be in t~e amoun~ of
!line Hundred. Fifty Five Dollar's and ~v~en y cen,~ (~3~6,955.2~;
that there is available for application upon such cost the sum of
xa. w,~a~ed w~ft~ Five Dollars and tmenty
Ei%hty Seven Thousand ~[~ne
m~ leaving a
cents (~87,955.20) from a federal grant to the
~-~ d Fifty N~ne ~housand Dollars (~2.~9,O00.00)
balance of T~o ~_ndre -
precedent to the
d
to be fmnance by the To,,in; that all conditions
~' s authorizing the lssuance of revenue bonds
adoption of an oramnanc
to provide the necessary ftmds to pay the portion of the cost of
such ~orks to be ffnaaced by the To~n have been complied mith
accordance mith the provisions of the governin$ s,~u~e, novi
therefore,
BE IT ORDAINED BY THE BOARD OF TRuSTEE~ OF THE TOWN OF
CARi~iEL, INs±Aha ·
~ '~ 'n -oroceed ~1~h the construction of
oec~iOn ~. Thao tb_e
' e plans and s~oecifica%~°ns
said. seviage ~orkS in accormanc ~ith the
heretofore prepaz'ed and f~ted by Moore and Garns ~.:mneers, -,
- ~ .... s employed by the To~n, v:hich plans and specl-
Consulting En~:..mnee~ ,
fications are hereby approved and by reference made a part of
this ordinance as fully as if the same v}ere a~ched hereto and
. construction of sald ~orks
incorporated he~-n~ that the cost of
shall not exceed the sum of Three H~dred Forty Six Thousand Nine
~ ' Fifty Five Dollars and Tv~enty Cents ({j}3g6,955.20). The terms
~ ~ k~ "and other l~ke terms ~he~ used
"se~age ~rea~ment ~orks, v~or
.~ '~ ordinance s'~al 1 be construed to mean and include all structures
:~s ,~.~ea ahal! be constructed and the bonds herein
~age 3
of and supplemental thereto, including particularly Chapter 121
of the Acts of the Indians. General Assembly for the year 1957,
hereinafter sometimes referred to as the ~Act".
Sec. 2. Said sewage works, consisting of lands, easements,
right-of-waY, building, grit chambers, primary settling, aireation,
secondary settling tanks, digestor, sludge bed~ chlorination chamber,
lift stations, force main, intercepting sewers, repairs and extensions
of existing sewers, diversion chambers, and other equipment, acces-
sories and appurtenances shall be aca~ired and constructed in ac-
cordance with the plans, specifications and estimates hereinbefore
referred to.
Sec. 3. The Town shall issue its sewage works revenue bonds
in the amount of Two Hundred Fifty Nine Thousand Dollars (~259~OO0)
for the purpose of procuring funds to be applied on the cost of
said works, as defined in Sec. 7 of said Act.
Said bonds shall be issued in the denomination of One Thou-
sand Dollars ($1,OOO), numbered consecutively from 1 to 259 in-
clusive, dated as of the first day of the month in which sold,
and shall bear interest at a rate not exceedi~ five and one-half
per cent (5-1/2%) per annum~ payable on the first days of January
and July in each year, beginning on July l, 1960. Such interest
shall be evidenced by coupons attached to said bonds. Both bonds
and interest coupons s~hall be payable in lawful money of the United
States of America, at the Union State Bank of Carmel~ Indiana,
or at the option of the holder, at The Indiana National Bank of
Indianapolis, in the City of Indianapolis, Indiana, and such
bonds shall mature serially in .numerical order in the amounts and
on the dates as follows:
1 1Q78
L-_
Page 4
3,000 January 1, 1966 8,000 January 1, 1983
3,000 January 1, 1967 9,000 January 1, 1984
4,000 January 1, 1968 9;000 January 1, 1985
4,000 January 1; 1969 10;000 January '1;- 1986
4;000 January 1, 1970 10;000' January 1, 1987
4,000 January 1, 1971 11,000 January 1, 1988
5,000 January 1, 1972 12,000 January 1, 1989
5,000 January 1, 1973 13,000 January 1, 1990
5,000 January 1, 1974 13,000 January 1, 1991
5,000 January 1, 1975 14,OQO January 1, 1992
6,000 January 1 , 1976 "14,000 January 1, 1993
6,000 January 1, 1977 15,000 January 1, 1994
17,000 January 1, 1995
Sec. 4. The bonds of this issue maturing on January 1, 1972,
,
and thereafter, shall be redeemable at the option of the Town, in
whole' or in part, on July 1, 1971, or any interest payment date
thereafter, in their inverse numerical order, at face value, to-
gether with the following premiums:
5% if redeemed on July 1, 1971, or thereafter on or before
Jam:1ary 1, 1978:
4% if redeemed on July 1, 1978, or thereafter on or before
January 1, 1984:
3% if redeemed on July 1, 1984, or -thereafter on or before
January 1, 1990;
2% if redeemed on July 1, 1990, or thereafter prior to
maturity;
plus in each case accrued interest to the date fixed for redemption,
Notice of such redemption shall be published at least one time
in a newspaper or financial journal of general circulation, pub-
lished in the City of Indianapolis not less than thirty (30) days
prior to the date fixed for 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 registration
record of the Town. The notice shall specify the date and place
of redemption and the serial numbers of the bonds called for re-
demption. The place of redemption may be aetermined 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 avail-
able at the place of redemption to pay the redemption price on the
date so named, and when said bonds shall be presented for redemption.
Page 5
Sec. 5. Said bonds shall be signed in the name of the To~n
of Qarmel by the President of its Board of Trustees and attested
by the Clerk-Treasurer, ~ho shall affix the seal of said To~n to
each of said bonds. The interest coupons attached to said 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 her o~n proper signature her fac-
simile signature appearing on said coupons. Said bonds shall
.
have all of the qualities and incidents df negotiable instruments
under the negotiable instruments la~ of the state of Indiana.
Said bonds shall be negotiable by delivery unless registered.
Upon presentation of any of the bonds at the office of the Clerk-
Treasurer in the Tmln of Carmel, said Clerk-Treasurer shall re-
gister said bonds as to principal ~ithout charge or expense to
the holder. Such registery shall be noted on each bond so pre-
sented, after ~hich no transfer thereof shall be valid unless
made by the registered o~ner 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 re-
transferred to bearer, after lIIhich 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 payable to bearer.
Said bonds, and any bonds ranking on a parity therewith, as
to both principal and interest, shall be payable from and secured
by an irrevocable pledge of and shall constitute a first charge
upon all the net revenues (herein defined as gross revenues after
deduction only for the payment of the reasonable expenses of opera-
tion, repair and maintenance) of the sewage works of the Town, in-
Page 6
eluding the works herein authorized to be acquired and constructed,
and all additions and improvements thereto and replacements thereof
subsequently constructed or acquired. The To.in shall not be ob-
ligated to pay said bonds or the interest thereon except from the
net revenues of said works, and said bonds shall not oonstitute
an indebtedness of the Town within the meaning of the provisions
and limitations of the constitution of the State of Indiana.
Sec. 6. The form and tenor of said 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:
UNITED STATES OF ANERICA
State ~f Indiana County of Hamilton
No. .1,000
TOWN OF CARMEL
SEWAGE WORKS REVENUE BOND
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 January, 19 (unless this bond be called
for redemption prior to maturityas hereinafter provided), and
to pay interest thereon from the date hereof until the prin-
cipal is paid, at the rate of per cent ( %) per
annum, payable on the first day of January and July in each
year, beginning on July 1, 1960, upon presentation and sur-
render of the annexed coupons as they severally become due.
Both principal and interest of this bond are payable in
lawful money of the United States of America at the Union
State Bank 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 two hundred
fifty nine (259) bonds of the Town of Carmel, of like date,
tenor and effect, except as to numbering and dates of maturity,
in the total amount of Two Hundred Fifty Nine Thousand Dollars
($259,000), numbered from 1 to 259 inclusive, issued for the
purpose of providing funds to pay the cost of sewage works,
as authorized by an ordinance adopted by the Board of Trustees
of the Town of Carmel on the day of ,1959,
.---j
Page 7
entitled "An Ordinanoe oonoerning the oonstruction and opera-
tion by the To~n of Carmel, Indiana, of sewage works, the
issuanoe of revenue bonds to provide the cost thereof, the
collection, segregation and distribution of the revenues of
said works, the safeguarding of the interest.s of the holders
of said bonds, and other matters connected therewith, II and in
strict complianoe with the provisions of Chapter 61 of the
Acts of the Indiana General Assembly for the year 1932 (Special
Session), and the aots amendatory thereof and supplemental
thereto. .
Pursuant to the provisions of said Aot and said ordinance,
the principal and interest of this bond and all other bonds
of said issue, and any bonds ranking on a parity therewith,
are payable solel~ from the Sewage Works Sinking Fund (Created
by said ordinanoe) to be provided from the net revenues ~erein
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 To~n of Carmel, including the works
oonstructed or aoquired by the use of the proceeds of this
bond and the issue of which it is a part, and all additions
and improvements thereto and replaoements thereof subse-
quently constructed or acquired. This Bond shall not con-
stitute an indebtedness of the To~n of Carmel ~ithin the
meaning of the provisions and limitations of the constitution
of the State of Indiana, and the Town shall hot be obligated
to pay this bond or the interest thereon except from said
speoial fund provided from said net revenues.
The Town of Carmel irrevooably pledges the entire net
revenues of said se~age works to the prompt payment of the
prinoipal and interest of the bonds issued on aocount of the
construction of said sewage works, of which this is one, and
any bonds ranking on a parity there~ith, to the extent neces-
sary for that purpose, and oovenants that it will oause to bel'
fixed, maintained and collected suoh rates and oharges for
servioe rendered by said works as. are SUffiCi. ent in eaoh year
for the payment of the pro);Jer an.\lJ'..!ilJl~l<lsl.. expens~QL
.Qlls:ra tiO;), repa).r and m~!.n.~..illlg~Qf_~i?- works, and for
the payment of the sums required to be paid iITro said Sinking
Fund 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 oolleot such rates or oharges, 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
61, Acts of 1932 (Special Session) and. the acts amendatory
thereof and supplemental thereto, inoluding 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 oovenants that it will set aside
and pay into its Sewage Works Sinking Fund a sufficient amount
of the net revenues of said works to meet (a) the interest
on this bond and all other bonds ~hich by their terms are
payable from the revenues of said sewage works, as such interest
shall fall due, (b) the necessary fiscal agency charges for
I
_....--'---1
Page 8
paying the bonds and interest, (c) the principal of this
bond and all other bonds payable from the revenues of said
se~age works, as the same are payable, and (d) an additional
amount as a margin of safety, ~hich margin, together with
any unused surpl~s of su~h 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 Sinking
Fund. 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 instruments
under the negotiable instruments law of the State of Indiana.
~his 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 owner hereof, and suoh registration noted
hereon by said Clerk-Treasurer. Thereafter no transfer
hereof shall be valid unless made at said office by the re-
gistered 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
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 payable to bearer.
The bonds of this issue maturing on January 1, 1972, and
thereafter, shall be redeemable at the option of the Town,
in whole or in part, in inverse numerical order, on July 1,
1971, or any interest payment date thereafter, at face.value,
together with the following premiums: five per cent (5%) if
redeemed on JUly 1, 1971, or thereafter on or before January
1, 1978; four per cent (4%) if redeemed on July 1, 1978, or
,thereafter on or before January 1,1984; three per cent (3%)
if redeemed on July 1, 1984, or thereafter on or before
January 1, 1990; two per cent (2%) if redeemed on July 1,
1990, or thereafter prior to maturity; plus in each case
accrued,interest to the date fixed for redemption. Notice
of such redemption shall be published one time at least
thirty (30) days prior to the date fixed for redemption,
in a newspaper or financial journal published in the City of
Indianapolis, Indiana. A like notice shall be sent by mail
to the holders of such bonds as are then registered, Interest
on bonds so called for redemption shall cease on the redemption
date fixed in said notice, if funds are availa.ble at the
place of redemption to pay the redemption price on the date
so named and ~hen presented for payment.
It is hereby certified and recited that all acts, condi-
tions 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 duefbrm as provided 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,
__~~i
Page 9
its corporate seal to be hereunto. affixed, and attested by
its Clerk-Treasurer, and the interest coupons hereto at-
tached to be executed by placing thereon the facsimile
signature of the Clerk-Treasurer, as of the first day of
19'-.
, -
TOWN OF CARMEL
BY
President, Board of Trustees
Attest:
Clerk-Treasurer
,
(Interest Coupon)
Coupon No.
$
On 1, 19
(unless the bond herein mentioned shall have been called
for previous redemption), the Town of Carmel, Indiana,
will pay. to Gearer at the Union State Bank of Carmel,
Indiana or at the option of the holder, at The Indiana
National Bank of Indianapolis, in the City of Indiana-
polis, Indiana, out of its Sewage Works Sinking Fund
Dollars in lawful money of the
United States of America, being the interest then due on its
Sewage Works Revenue Bond, dated 1, 19__,
No
TOWN OF CARMEL
By
(Facsimile)
Clerk-Treasurer
REGISTRATION ENDORSU{ENT
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
Clerk-Treasurer
Sec. 7. The Clerk-Treasurer is hereby authorized and directed
to have said bonds and coupons prepared, and the President of
the Board of Trustees and Clerk-Treasurer are hereby authorized and
Page 10
~irected to execute said bonds and
the interest coupons to be at-
tached thereto, in the form and manner herein provided. The Clerk-
Treasurer is hereby authorized and directed to deliver said bonds
to the purchaser thereof after sale made in accordance ~ith the pro-
visions of this ordinance, provided that at the time of said delivery,
the Clerk-Treasurer shall collect the full amount which the purchaser
has agreed to pay therefor, ~hich shall not be less than the face
value of said bonds, plus accrued interest from the date thereof to
the date of delivery.
The bonds herein "authorized, when fully paid
,
for and delivered to the purchaser, shall be the bind~ng special
revenue obligations of the To~n, payable out of the revenues of the
Townls sewage works to be set aside into the Sewage Works Sinking
Fund as herein pr9vided, and the proceeds derived from the sale of
said bonds shall be and are hereby set aside for application on the
cost of acquisition, construction and installation of said sewage
works hereinbefore referred to, and the expenses necessarily incurred
in connection therewith. The proper officers of the To~n are hereby
directed to draw all proper and necessary warrants, and to do ~hat-
ever acts ,and things Which may be necessary to carry out the provi-
sions of this ordinance.
Sec. 8: Prior to the sale of said bonds the Clerk-Treasurer
shall cause to be published a notice of such sale once each ~eek
for two weeks in The Noblesville Daily Ledger and the Noblesville
Morning Times, Noblesville, Indiana, there being no newspaper pub-
lished in the Town of Carmel, and one time in the Indianapolis
Commercial, the last publication to be at least seven (7) days prior
to the date .fixed for said sale, said notice shall also be posted as
.provided by law. The bond sale notice shall state the time and
place of sale, the character and amount of the bonds, the max-
imum rate of interest thereon, the terms and conditions upon
which bids will be received and the sale made, and such other in-
Page 11
formation as the Clerk-Treasurer and the attorneys employed by
the Town shall deem advisable. Said notice shall provide, among
other things, that each bid shall be accompanied by a certified
or cashier's check in the amount of Two Thousand Dollars ($2,000)
to guar~ntee performance on the part of the bidder, and that in
the event the successful 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 pro-
perty of the Town and shall be considered as its liquidated da-
mages on account of',such default; also, that bidders for said
bonds will be required to name the rate of interest at which the
bonds are to bear," not exceeding the maximum rate hereinbefore,
fixed, and that such interest rate shall be in multiples of one-
eighth (1/8) of one per cent (1%); also, that the opinion of Ross
McCord Ice & Miller, bond counsel of Indianapolis, Indiana, ap-
proving the legality of said bonds, will be furnished tothe purchaser
at the expense of the Town, and that no oonditional bids will be
considered,'
The bonds shall be awarded by the Clerk-Treasurer to the high-
est, 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 the lowest net interest cost
to the Town, to be determined by computing the total interest on
all of the bonds to their maturities and deducting therefrom the
premium bid, if any. The right to reject any and all bids shall
be reserved. If an acceptable bid is not received on the date of
'the sale, the sale will be continued from day to day thereafter
without further advertisement for a period of thirty (30) days, during
which time no bid which is lower than the highest bid received at
the time of the advertised sale will be considered.
Page 12
Sec. 9. The accrued interest and premium received at the time
of the delivery of the bonds, if any, shall be deposited in the'
Sewage Works Sinking Fund hereinafter created, together with such
amount of the proceeds of the bonds as shall equal the accruing
interest on the bonds for a period of twelve (12) months. 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 o~ accounts to be designated
as IITown of Carmel, Sewage Works Construction Account." All funds
deposited to the credit of said Sewage Works Sinking Fund or Sewage
Works Construction Account shall be deposited, held, secured or in-
vested in aooordanoe with the laws of the State of Indiana relating
to the depositing, holding, securing or investing of public funds,
including particularly Chapter 9 of the Acts of 1945. The funds
in said special aocount or accounts shall be expended only for the
purpose of paying the cost of the works, as defined in Section 7
of Chapter 61 of the Acts of 1932, as amended, or as otherwise
required by, said Act. Any balance or balances remaining unexpended
in such special account or accounts after oompletion of the works,
which are not required to meet unpaid obligations incurred in con-
nection with such oonstruction, shall be paid into the Sewage Works
Sinking Fund and shall be used solely for the purposes of said fund.
"
Sec. 10. There is hereby created a sinking fund for the pay-
ment of the interest on and principal of the revenue bonds issued on
account of the construction of said sewage works, and any bonds
ranking on a parity therewith, and the payment of any fiscal agency
charges in oonneotion with the payment of bonds and interest oou-
pons, 'whioh fund shall be designated as f1Sewage Works Sinking Fund.1I
There shall be set aside and paid into said Sinking Fund monthly, as
Page. 13
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, (b) the
necessary fiscal agency charges for paying the bonds and interest,
\
(c) the principal of all bonds payable from the revenues of the
sewage works as they fall due, and (d) an additional amount as a
margin of safety and for the payment of premiums upon bonds re-
.
deemed by call or purchase, which margin, together with any unused
surplus of such margin carried forward from the preceding year,
shall equal ten per cent (10%) of all other amounts so required
to be paid into said Sinking 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 continue
until such time as said funds shall contain an amount sufficient
to pay all of the bonds then outstanding, together with the in-
.\ terest 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 interest on the bonds payable
in said period. Any such excess of funds above said required level
may also be used 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.
i
I
.. .--------}
Page 14
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 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, main-
tenance and depreciation have been accumulated and reserved for
that period, then the Board of Trustees may transfer any excess
net revenues into a fund for extensions, betterments and additions
to the works. No such transfer shall b~ 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 fund 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 shall be paid and the require-
ment of the Sewage Works Sinking Fund shall be met. The Town
shall keep proper books of records and accounts, separate from
all of its other records and accounts, in which complete and cor-
rect entries shall be made showing all revenues collected from
said works and deposited in said fund, and all disbursements made
therefrom on account of the operation of the works, or to meet
the requirements of the Sewage Works Sinking Fund, also all trans-
actions relating to said works. There shall be prepared and
f~rnished, 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 preceding fiscal
year, which annual statements shall be certified by the Clerk-
~
Treasurer or independent auditors. Copies of all such statements
"
'--~..
Page 15
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 ~orks
and all records, accounts anddata of the To~n relating thereto.
Such inspections may be made by representatives duly authorized
by ~ri~ten instrument.
Sec. 12. The To~n covenants and agrees that it ~ill establish
and maintain just and equitable rates or~harges for the use of
and the service rendered by said works,tobe paid by the owner
of each and every lot, parcel of real estate or building that is
connected with and uses said se~age works by or through any part
-_........_._-~-
It/~of the(seJ.a:ge',system of the Town, or that in any ~ay 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 rea-
sonable expenses of operation, repair and maintenance of the ~orks,
and for the payment of the sums required to be paid into the
Sewage Works Sinking Fund by said governing Act and this ordi-
nance. 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
The rates or charges so established shall apply to any and
,I Fund.
.1
\.~ ~
all use of such ~orks by and service rendered to the Town and all
departments thereof as the charges accrue.
Se9tion 13. The Town reserves the right to authorize and
issue additional bonds, payable out of the revenues of its sewage
work~, ranking on a parity with the bonds authorized by this ordinance,
for the purpose of financing the cost of future additions, exten-
sions and improvements to the sewage works, subject to the following
conditions:
. .____.. ,.__.__._.__._.__.___.__.____n_.
Page 16
(a) The interest on and principaiof all bonds payable from
the revenues of the se~age works shall have been paid to date in
accordance ~ith the terms thereof.
(b) As of the date of issuance of such additional bonds, there
shall have been accumulated and set aside funds in an amount suffi-
cient for operation, repair and maintenance of the works for the
then next succeeding t~elve (12) calendar months, and the balance
in the Sewage Works'Sinking Fund shall equal not less than the
principal and interest requirements of the then outstanding bonds
payable during the then next succeeding t~elve (12) calendar months.
(c) The net operating revenues of the sewage works in the fis-
cal year immediately preceding the issuance of any such bonds ranking
on a parity with the bonds authorized by this ordinance shall be
not less than one hundred twenty-five per cent (125%) of the maxi-
mum annual interest and principal requirements of the then outstanding
bonds and the maximum annual interest and principal requirements
of the additional parity bonds proposed to be issued; or, prior
to the iss1:lance of said parity bonds, the seliage rates and charges
shall be increased SUfficiently so that said increased rates and
charges applied to the previous fiscal yearts operations would
have produced net operating revenues for said year equal to hot less
than one hundred twenty-five per cent (125%) of the maximum annual
interest and principal requirements of all bonds payable from the
revenues of the sewage works, including the additional parity bonds
proposed to be issued. For purposes of this ,subsection, the re-
cords of the sewage works shall be analyzed and all showings shall
be prepared by a duly licensed consulting engineer or certified
public accountant employed by the Town for that purpose.
Sec. 14. For the purpose of further safeguarding the inte~sts
.... ._-~_._--_. .-------'
Page 17
of the holders of the bonds herein authorized, it is specifically
provided as follo~s:
(a)- All contracts let by the Town in connection with the
construction of said se~age works shall be let after due adver-
tis~ment as required by the la~s of the State of Indiana, and
all contractors shall be required to furnish surety bonds in an
amount equal to one hundred per cent (100%) of the amount of such
contracts, to insure the completion of said contracts in ac-
cordance with their terms, and such con~ractors shall also be re-
quired to carry such employers liability and public liability in-
surance as are required under the la~s of the State of Indiana
in the case of public contracts, and shall be governed in all res-
pects by the la~s .of the State of Indiana relating to public contracts.
(b) The ~orks shall be constructed under the supervision,and
subject to the approval of Moore and Garns Engineers 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 ~orks
in good condition and operate the same in an efficient manner and
at a reasonable cost.
(d) So long as any of the bonds herein authorized are outstanding,
the Town shall maintain insurance on the insurable parts of said
~orks of a kind and in an amount such as ~ould normally be carried
by private companies engaged in a similar type of business. All
insurance shall be placed with responsible insurance companies quali-
fied to do business under the laws of the State of Indiana. In-
surance proceeds shall be used in replacing or repairing the pro-
perty destroyed or damaged; or if not used for that purpose shall be
Page 18
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 suoh works, or any part
thereof, nor shall it. sell, ~ease or otherwise dispose of any por-
tion thereof except replaced equipment which may become worn out
or. obsolete.
(f) Except as hereinbefore provided in Seo. 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, exeouted or issued by the Town
except such as shali be -made subordinate and junior in all respects
to the bonds herein authorized, unless all of the bonds herein
authorized are redeemed and retired coincidentally with the de-
livery of such additional bonds or other obligations.
(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 sanitary sewers. The Town shall, in so far as possible,
cause all such sanitary sewers to be connected with said sewage
works.
(h) The provisions of this ordinance shall constitute a con-
tract by and between the Town of Carmel and the holders of the
sewage works 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, or-
dinance or resolution which in any way adversely affects the r1gnts
of such holders so long as any of said bonds or the interest thereon
remain unpaid.
(i) The provisions of this ordinance shall be construed to
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Page 19
CJ'eo.t'i) l\l. tl"USt 1n tho pl'oueec1s 01' the sale 01' the pond.s hlll~:.t.n
nuthoJ;'1ZQd to);" th& uan OJv1 plll"pOaaG !le:ra5.nBat tor'\',h. and theJ
hol('lel"S or "'-.h0 bOJlda lilMll r(l~!l.in a li$n o.u B1.10h prooeedtl unt.ll
tJwsa.nl.El ~'l"<l' appl1ed lnl.\.Q('lQJ:>dl\llOe ~i::' t,h the Pl"QV1a10!lr1 of t13.\(I
Qrd1nn.ncea.nd 01' 0E.dfl gow,H'%~1ng A.at, 'J.'hllt P:!.'O\l'j.s:l.otla of thla
orditiL\1'1.00 4l'lAll allJ/) b0 OI.'uUitru."d. 'l;dl erlllt\ta M>' tl'Ust.'.n thIa pOl....
tion of' thl!fl.,treve:nues h~reln &r",oti&d to be $~'eJ:t:!MI.l:'t and pM.d
1n~thoSEM%"1l \'~orl!:1J 91nk11'1l?; Il'u.rI.dfor the l1se.a aJ.'l,d p;llrpo$GIi of
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ta1l.1 :tt.l:n.a.E~a in 'IIlli.s Qrr:l.1nMot3 $(tt;":t'OX"M'l" l'hl) llOldot's of\'.!!'".lI3,
bol1t1stlheU 1'lD."ft) all Qr tho, l'1.{)htll, rmll.$41es ar.tli pl'ivUG8SIll Glllt
to.MiblLnthe p~lllion$ of the. gOVEll"n1l:l8 A!:lthe~ltl.b$fl)~ :ref:4iiX'red
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to, inClud1;!ll~the l"lv)l,t tCl hll,'V'o a. reoi,~1voI' lil,p~"Kili.nt~, tel e.Ml'l.1ater
$.dd. SGllJl;\gG~Oi'lts. in the ~t of da;l'aul t. 1n tl'l.0 !lIJ.j'm0n't of th,!)
prb(t1:pll.lof 'Or' 111.t4Jresi on l'U'I3' ot't,he 1)01141'1 hGJ:'sln Qutho:r1eGd
Or 1h'l1o \'ll'7ent' of dataul t 1n re.peot to' arl3 of' tho p!'Ov:ts1Gn@ 01:
th1EJO~Ol!l or the GQvar~ AOt.
J3~o; 15.Th;ta '.(ll'MMnCle shan bill 111 :full :foroe &.I:l.d. flffoC!>ot
trOl!llmdo.tter' its p&.IHlsge and 81~lrJg byll. mI13ori't.;v ot the
EOard,j)f' 'l'rustel!llll.
APP1"Oil1ed Md a15.optad by tbo llloard,()t ~.l'll"l.1lit.ell or thii'l Tl>wn Qt
C!ulllel 'on tMSJt.i1 d1110f' yjebel,\l~r.
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