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HomeMy WebLinkAboutD-2689-23 Amending Bond Anticipation Notes of the WaterworksSponsors: Councilors Aasen, Finkam and Worrell ORDINANCE D-2689-23 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, AMENDING ORDINANCE NO. D-2486-19 Synopsis: Ordinance amends prior Ordinance No. D-2486-19 to authorize a maximum interest rate of 6% (rather than the original 5%) for bond anticipation notes of the waterworks. WHEREAS, the City of Carmel, Indiana (the "City") has heretofore established, constructed and financed a municipal waterworks and now owns and operates said waterworks pursuant to I.C. 8-.1.5, as amended, and other applicable laws; and WHEREAS, pursuant to Ordinance No. D-2486-19 adopted by the Common Council of the City (the “Council”) on November 18, 2019 (the “Original Ordinance”), the Council authorized the issuance of the City of Carmel, Indiana Junior Waterworks Revenue Bond Anticipation Note of 2019 (the “BANs”); and WHEREAS, the Council now desires to amend the Original Ordinance to provide a greater interest rate on the BANs than originally authorized. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL, THAT: Section 1. Section 2(e) of the Original Ordinance is deleted and replaced with the following: “The BAN or BANs shall be issued in an aggregate amount not exceeding Eighteen Million Dollars ($18,000,000) and shall be designated "City of Carmel, Indiana Waterworks Bond Anticipation Note of 20__" (with the year of issuance included along with any series designation). Any such BAN or BANS shall mature on or before May 1, 2024, and shall be dated the first day of the month in which issued or sold or the date of delivery as determined by the Executive or Fiscal Officer with the advice of the City's municipal advisor. Any such BAN or BANS may be refunded with a later series of BAN or BANs provided that such refunding BAN or BANS shall have a final maturity not later than May 1, 2024, and shall be dated the first day of the month in which issued or sold or the date of delivery as determined by the Executive or Fiscal Officer with the advice of the City's municipal advisor. Any such BAN or BANs shall pay interest semiannually on May 1 and November 1 in each year, beginning no later than either the next May 1 or November 1 following their issuance until maturity. BAN interest may be paid as capitalized interest and, after provision for payment of the 2008 Bonds, from the Net Revenues of the utility on a subordinate basis and on parity with the 2023 Bond and the 2017 Bonds. BAN interest shall be calculated according to a 360-day calendar year containing twelve 30-day months, or based on an actual days basis using a 365-day year, as determined by the Executive or Fiscal Officer with the advice of the City's municipal advisor. Any such BAN or BANs shall bear interest at a rate or rates not exceeding six DocuSign Envelope ID: A3F043C1-CAFE-4899-B627-8D79F20BA6CF 2 DMS 40721138.3 percent (6.00%) per annum, or bear interest at a variable rate determined by reference to any available published index as selected by the Executive or Fiscal Officer prior to their issuance, and may be sold at a discount not to exceed two percent (2%). The BANs herein authorized are payable from the proceeds of the 2019 Bonds and other legally available funds of the utility. Any such BAN or BANs may be subject to early redemption on or after any date selected by the Executive or Fiscal Officer prior to their issuance, upon thirty (30) days’ notice to the owner of such BAN, at a redemption price determined by the Executive or the Fiscal Officer. The BANs may be issued in one or more series of BANs, or the City may receive payment on the BANs in installments, as determined by the Executive or Fiscal Officer with the advice of the City's municipal advisor prior to advertising or negotiating a sale of the BANs. The BANs shall be in a customary form as approved by the Executive or Fiscal Officer.” Section 2. No Other Changes. Except as set forth in this Ordinance, all other provisions of the Original Ordinance remain in full force and effect. Section 3. Effective Date. This Ordinance shall be in full force and effect from and after its passage and execution by the Mayor in accordance with the laws of the State of Indiana. DocuSign Envelope ID: A3F043C1-CAFE-4899-B627-8D79F20BA6CF 3 DMS 40721138.3 ADOPTED by the Common Council of the City of Carmel, Indiana this ___ day of __________ 2023, by a vote of ____ ayes and ____nays. COMMON COUNCIL FOR THE CITY OF CARMEL, INDIANA ___________________________________ Jeff Worrell, President Laura Campbell, Vice-President ___________________________________ ____________________________________ Kevin Rider Teresa Ayers ___________________________________ ____________________________________ Sue Finkam Anthony Green ___________________________________ ___________________________________ Adam Aasen Tim Hannon ___________________________________ Miles Nelson ATTEST: __________________________________ Sue Wolfgang, Clerk DocuSign Envelope ID: A3F043C1-CAFE-4899-B627-8D79F20BA6CF 7 November 0 Not Present Not Present 20th 4 DMS 40721138.3 Presented by me to the Mayor of the City of Carmel, Indiana this ____ day of _________________________ 2023, at _______ __.M. ____________________________________ Sue Wolfgang, Clerk Approved by me, Mayor of the City of Carmel, Indiana, this _____ day of ________________________ 2023, at _______ __.M. ____________________________________ James Brainard, Mayor ATTEST: ___________________________________ Sue Wolfgang, Clerk Prepared by: Richard C. Starkey Barnes & Thornburg LLP 11 South Meridian Street Indianapolis, IN 46204 DocuSign Envelope ID: A3F043C1-CAFE-4899-B627-8D79F20BA6CF 10:40 22nd November A A November 22nd 10:40