HomeMy WebLinkAboutA-8 Waterworks 1965 Bond
ORDINANCE NO.
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An Ordinance concerning the construction of ex ten-
sions, additions and improvements to the municipal
waterworks of the Town of Carmel, authorizing the
issuance of revenue bonds to provide for the cost
thereof,. and matters connected therewith
WHEREAS, the Town of Carmel is the owner.of and operates
an unencumbered waterworks system furnishing the public water sup-
ply to said Town and its inhabitants; and
WHEREAS, the Board of Trustees of the Town of Carmel, hav-
ing the management of said waterworks, has determined that said wa-
terworks is in need of certain extensions, additions and improvements
. in order to furnish sufficient supply of water of proper quality, at prop-
er pressure, to the inhabitants of the Town; and
WHEREAS, extensions, additions and improvements are re-
quired in order to protect properly the health, well-being and property
of the Town and its inhabitants; and
WHEREAS, the Board of Trustees of the Town of Carmel has
employed Clyde E. Williams & Associates, Inc., consulting engineers
of South Bend and Indianapolis, Indiana, to determine the extensions.
additions and improvements required and the cost thereof, and to pre-
pare plans, specifications and estimates therefor, and has found from
. the report of said engineers that the existing unsatisfactory conditlons
can be remedied by the construction and installation of new wells, addi-
tional treatment plant building and facilities, transmission water mains
and other water mains, and the acquisition and installation of an elevated
stora,ge tank, and that the cost of said .extensions, ad'ditions and im-
provements will be in the approximate amount of Three Hundred Twenty-
five Thousand Dollars ($325, 000), including all incidental expenses nec~
essary to. be incurred in connection therewith and in connection with the
issuance .of bonds on account thereof; and
WHEREAS, the Board of Trustees of the Town of Carmel finds
that the funds required for said project should be. provided by the issu-
ance and sale of revenue bonds payable solely out .of the revenues .of
said waterworks and not constituting a general obligation of the Town:
now therefore,
BE IT ORbAINED BY THE BOARD OF TRUSTEES OF THE
TOWN OF CARMEL,' INDIANA:
Section 1. That the Town of Carmel, being the owner of and en-
gaged in operating an unencumbered waterworks system supplying the
Town and its inhabitants with water for sanitary purposes, now provide
for certain needed extensions, additions and improvements to such wa-
terworks and the payment for sllch extensions, additions and "improve-
ments from. the revenues and receipts of such waterworks pursuant to
and in the manner prescribed in Chapter 155 of the Acts.of 1929. as
amendec\ by Chapter 254 of the Acts of 19'33, and all acts amendatory
thereof or supplemental thereto (sometimes hereinafter .referredto as
the "Act"). . The. terms "waterworks," "water system," "'system," and
"waterworks system," where used' in this .ordinance shall be construed
to mean and include the existing waterworks ,?ystem owned by the Town
.of Carmel and all extensions, additions and improvements thereto and
replacements thereof now or subsequently .constructed or acquired.
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Sec. 2. Said extensions, addition,s and improvements shall be
constructed and installed in accordance with the plans, specific.ations
and estimates prepared by Clyde E. Williams &: Associate.s, Inc., con-
suiting engineers of South Bend and Indianapolis, . Indiana, which plans,
specifications and estimates are hereby approved. The exten-sions, ad-
ditions and improvements shall include the following: construction and
in s taUati on of new wells, additional treatment plant building and facill-
ties, transmission water mains and other water mains, and the acqui-
.sition and installation of an elevated storage tank.
Sec. 3. The Board .of Trustee s shall proceed with the construc-
tion and installation of said extensions, additions and improvements,
and shall enter into all contracts neces.sary for s\ilch purpo.se in con-
formity with the provisions of this ordinance and of said Act, subject,
however, to the following COnditions:
(a) The approval of the Public Service Commission for
the making bf said extensions, additions and improve-
ments' and the issuance of the required amount of
revenue bonds;
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(b) That the principal and interest of the }~~:>nds issued
on account of such extensions, additions and improve-
ments shall be paid solely and exclusively from the
revenues of said .waterworks system and .shall.not
constitute a general obligation of the Town.
Sec. 4. The income and revenues. of the existing waterworks,
together with the income and revenue of all extensions, additions,. im-
provements thereto and repla.cements thereof made pursuant to this
ordinance, or subsequently,shall be set aside into a separate and spe-
cial fund to be used and applied in the maintenance and operation there-
of, in establishing a depreciation account, and payment of the bonds and
. the inte re st thereon which are payable from the. revenues of the water-
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works. From and after the date fm'which the new schedule .of water
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rates to be adopted.becomes effertive, the proportion.of the gros s reve-
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nues of said waterworks that shaU be paid into the several accounts of
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said special fund, as provided by: said Act, is hereby fixed and deter-
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mined as follows:
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{aJ Operation'andMainter-nce Account. Forty-one and five-
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tenths per cent (,41. 5"/0) of thegrdss revenues of said waterworks shall
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be paid into the nOperation and 1v:jaintenance Account, "and shall be used
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to pay the. necessary cost of the ~easoriable and proper operation.and
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maintenance of the waterworks, ineluding any taxes required to be' paid.
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The sum ,so set aside for operati'lln and maintenance shall be applied ex-
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elusively to that purpose until a <jurplus. shall have been accumulated in
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the Operation and Maintenance Account which shall be e.qual to the cost
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of maintaining and operating the ,waterworks during the remainder .of the
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calendar, operating or fiscalyea~ then current and the cost of maintain-
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. ing and operating the waterworksl during the calendar, operating or fis-
calyear then next ensuing. Any ~xce s sove r such. surplus ,maY .be trans-
ferred by the Board of Trustees ~o either the Depreciation Account or
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the Bond and Interest Redemptioq Account.
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(b) Depreciation Account.! Fourteen and five -tenths per cent
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(14.5"/o) of the gross revenues of raid waterworks shall be paid into the
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"Depreciation Account," and.sha* be expended in making good depre-
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dation in the waterworks, or in new construction,. extensions or addi-
tions to the property of the waterLorks. 'Any accumulations in such
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Depredation Account not require~ for immediate use may be invested
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in direct obligations of the United, States Government, and if so invested
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the income from the investment!shall accrue to the Depreciation Ac'count.
Said account shall not be used fqr any purpose other than as herein pro-
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vided.
~'c) Bond and J:ntere stR~demption Account. Forty ~four pe rcent
(,44%) of the gross revenues of t~e waterwo,rksshall, as such revenues
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are received, beset apart and ~aid into a special account to be identified
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as the "Bond ,and Interest Reden:lption Account. 11 T, he funds in saidac-
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count shall be used solely for the purpose ,of paying the interest on and
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,principal of bonds which by thei:tj terms are payable from the revenues
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,of the waterworks. ,If a'nd when ~ sUlcpluS shall be created J.n said Bond
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and Interest Redemption Accoun~ which shall be in excess ,of the interest
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On and principal of the bonds, plfs ten per cent UO%), which are payable
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during the then current calendar~ operating or fiscal year, together with
the amount of interest on and principal of the bonds which will become
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due and p~yable during thecaleu?ar, operating or fiscal, year, then next
ensuing, then the, BOard of Trustres may transfer any excess over such
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surplus to either the Operation a~d Maintenance Account or to th,e Depre-
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ciation Account. The Board of Tlrustees may also direct that any such
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exces's ,over such surplus shall b+ used in the purchase or redemption of
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outstanding,bonds at a price not €1xceeding the then applicable redemp-
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tion prices set out in the o'rdinanq:e or ordinances' authorizing the issu-
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ance thereof., No further payments need be made into' the Bond and In-
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terest Redemption Account when lhe funds therein equal or exceed the
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amount of the principal of the bon,ds then outstanding and interest there-
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on to the maturity date thereof.
All of the funds'
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of s.aid .seyeral accounts
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shall be deposited in
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lawful depositories of the Town" and shall be continuously held, secured
or invested as provided by the laws of Indiana relating to the depositing,
securing, holding or investing of public funds, including particularly
Chapter 9 of the Acts of 1945, as amended. The funds in said Bond and
Interest Redemptiqn Account shall be kept in a separate bank account
apart from. all other bank accounts of the Town. In no event shall any
of the revenues of said waterworks be transferred or used for any pur-
pose not authorized by this ordinance so-long as any of the bonds issued
pursuant to the provisions of this ordinance shall be outstanding. The
funds heretofore derived from the operation of the waterworks, on hand
on the effective date of this ordinance, may be used in paying theoper-
ating expenses of the waterworks to the extent required for that purpose
and in paying the cost of the additions, extensions and impr.ovements to
the waterworks to.the extent that such cost may exceed the funds avail-.
able from the proceeds .of the bonds herein authorized. Any balance re-
maining after the completion of the extensions, additions and improve-
ments _shall then be allocated to the three above named accounts On the
percentage basis hereinabove setout in this secti'On.
Sec. 5. For the purpose of procuring funds with which to pay
the cost of construction and installation of the extensions, additions
and improvements to. its waterworks, the Town of Carmel shall issue
its revenue bonds under and pursuant to the provisions of this ordinance
and said Act, which bonds shall be payable only out of the special Bond
and Interest Redemption Account hereinprovirled for, and shall be des ~
ignated as "Waterworks Revenue. Bonds of 1965." Said bonds shall be
in a principal amount not exceeding Three Hundred Twenty-five Thousand
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Dollars ($325, 000), in the denomination of One Thousand Dollars
($l,OOO), numbered consecutively from 1 up, dated as of the first day
of the month in which said bonds are sold, and shall bear interest at
a rate or rates not exceeding five per cent (5%)" per annum, the exact
rate or rates to be determined by bidding, which interest .shall be pay-
able semi-annually on May 1 and November 1 in each year, beginning
on Nov~mber 1, 1965, and shall be evidenced by coupons attached to
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said .bonds. Both bonds and interest coupons shall be payable at the
Union State Bank, in the Town of Carmel, Indiana, in lawful money
of the United States .of America, and said bonds shal1 mature serially
on November 1 in the years and amounts as follows:
. Years'
19~6 c 198 0 incl.
1981-1991 indo
1992-1999 incl.
2000
Amounts'
$ 5, 000
10, 000
15, .000
20, 000
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The bonds of this issue maturing on.November I, 1975, and
thereafter, shall be redeemable' at the option of the ,Town, in whole or
in part, on May I, 1975, or any interest payment date thereafter, in'
their inverse numerical order, at face value, together with the follow-
ing, premiums:
5% if redeemed on May 1" 1975, or thereafter on or
before November I, 1981;'
40/. if redeemed on May 1:, 1982, or thereafter on or
before November I, 1988;
3% if redeemed on. May 1, 1989, or thereafter on or
before November 1, 1994;
2% if redeemed on May 1, 1995, or thereafter prior
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to maturity;
plus in each .case accrued intere.st to the date fixed for redemption.
Notice of such redemption shall be published at. least thirty (30). days
prior to' the: date fixeclfor redemption at least one time in a newspaper
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such officer had rema~ned ~n office until such delivery.
Said .bonds shall be negot~ab1e by dei~very unless registered.
Upon presentation of the bonds at the office of the Clerk-Treasurer in
the. Town.ofCarme1, said. Clerk-Treasurer .shall register said bonds
as to 'the p:dncipal thereof, without charge orexpenae to the holder.
Such .registry shall be noted on the bonds, after which no transfer
theniofwillbevalid unless made by the reg~stered..owner in person
or by: hi.s attorney .duly authorized, and similarly noted on the bonds,
but said bonds may be 'discharged from registry by being in like man-
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ner retransferred to bearer, after which they shall be transferable by
delivery, bpt may again be registered as before. The registration of
any bond shall not affect the negotiability of the interest coupona at-
tached thereto, but auch .coupons shall continue to pass by delivery mere-
1y and shall remain payable to bearer.
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Sec. 7. The form and tenor Of said,.bcni.ds, the int<i>re stcoupons
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to be attached thereto', and the form of. re'gistry endorsement thereon,
shaH be substantially as follows, to-wit:
UNITED STATES OF AME.RlCA
State of Indiana. . County of Hamilton
No.
$1, 000
TOWN OF CARMEL
WATERWORKS REVENUE B.OND OF 1965
The Town .of Carmel, in Hamiltbn County, State of Il1di-
ana, for value received, hereby promises to pay to bearer,
or if this' bond be registered then to' the registered holder here-
of, solely out .of the special revenue fund hereinafter referred
to, the principal amount of.
ONE. THOUSAND DOLLARS
on the first,day of November ... ,. {unless this b(lnd be subject
to and' be called for prior ,redemptien and paym,e,nt' prov~ded
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therefor), and to pay interest thereon f1:'omthe date hereof
until the pdncipal is paid at the rate of .'. , '. .
per cent (-. .. "'}'o).per annum, payable semi-annually.anthe
first days of May'andNove:mber in each. year, beginning No-
vember 1, 1965, upon presentation and surrender6f the an-
nexedco.upons as ~hey severally become due.
Both pdncipal anc! interest of this bond are payable in
, lawful money of the United State s of -Amedc,a at the Union
State Bank, in the T.ownof Carmel, Indiana.
This bond is on", of an autho.dzed iss1;teofthree h1;tn-
d1:'ed twenty-five (:3Z5) bonds of the Town of Carmel, of like
date" denomil1ation, ,teno:r andelfeet, ex-cept as to rates of
interest, numbecdng and dates of mat1;tdty, in the total amoUnt
of-Three Hundred Twenty-five Thousand DOllars f$325, 000);
numbered consecutively from 1 to 325 inclusive, issued for
. the purpose of providing funds to pay the cost ofconstructiOli
.of extensiens; additions and improvements to'the municipally
owned wate1:'Werks of .said.Town pursuant to an ordinance
passed by the BOa!'d .cifTrustee sof said T:own :.on
, ",1965, entitled "An' Ordinance concerning the construc-
tion ofextensi0ns, .additionsand improvements to the munici-
pal waterworks' of the Towtl.:ofCarmel, authorizingtheissu-
anceof .revenue bonds: to.provide for the-cost. thereof, and
matte.rsconnectedtherewith," and in strict c.oinpliance with
the provisiCiltl.s of the governing statutes, pa1:'ticula.rly Chapter
155 of the Acts .of the General Assembly of the State of Indiana
. for th,e .year 1929, and all acts amendatory thereof or supple-
inent;;il th.ereto. .
The principal and interest of this bond and all other
ponds of said issue, and any bonds hereafter issued ranking
on a padty therewith, are 'e'qually and ratably secured by a.nd
constitute a. first charge upon forty-four per cent (44%) of the
gross. income and reve)lues of said waterworks' as the same
noW exist or may hereafter be improved and extended, which
percehtag'e of such income and revenues is to,'be deposited, in
a'. special fund to be known as the "Bond and Interest Redemp-
.tion Account, tI which ha.s been duly created by said ordinance.
The T:ownshall not be obligated to pay .saidbond.s or the inter-
est thereon except from said special fund" .and neither this bond
nor the issue cif which it is a part .shall iti any re.spect consti-
. hIte a.corporate indebtednes s.of the Town within the :provisions
and limitations of th.e constitution ,of the State of Indiana.
The bop,ds .of this i'ssue matudng .on November 1, 1975,
and thereafter, are redeemable at the 6ption of the Town, in
whole. or in part, on May 1, 1975, or any interest payment
date thereafter, in inver!1e numedcal :order, at face value,
together with the following premiums: five per cent (50/0) if
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redeemed on May 1, 1975, or thereafter 'on aT before No-
vember'l, 1981; four per cent ((4%) if redeemed on May I,
1982, or thereafter' on or before November I, 1988;thre-e
percent Po/D) if ,redeemed on May 1, 1989, Q1." thereafter
on 9r before November I, 1994; two per cent {2%} tire-
deemedon May I, 1995; ortherea!ter prior to' :maturity;'
plus, ineachcas'e, accrued interest to the -date fixed for
redemption, provided n,otice of sai,dredemption shall be
given at least thirty PO) 'days prior to' the redemption date
by one publication in a ~ewspaper of generatcirculation
pririted' and, pup1ished in Hamilton County" Indiana, and of
circulation in the Town ,of Carmel, and in a newspaper or
financial journal published in the City of Indianapo,lis, Indi-
ana. ..Interest on the bonds so called for redemption shall
cease on the redemption date fixed in said notice, if funds
are available at the ,place of redemption to redeem the b,onds
on, the redemption date and thereafter when pi"esented for
payment. ,The bondsso,redeemedpdor to maturity shall
be surrendered for cancellation, together with unmatured
intere st, coupons appurtenant thereto'.
The Town covenants that it will, to the fullest extent
permitted by law, fix, maintain and collect an aggregate of
rates and charges for the, services rendered by said water-
works which will be sufficient to pay all cQsts of oPe ration
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and maintenance of said waterworks, to provide a proper
and adequate depreciation aCcount, andto create and main"
tain the sinking fund required for the payment of this issue
of bonds, and any bonds ,hereafter issue'dranking on a parity
therewith, and that it will in ail other re,spects .faithfullY com-
ply with all of the provisions of the governing statutes pursu-
ant to which this bond is issued. IIi the event the TQwn ,shall
make any default in the payment of the principal of or inter-
est on this bond, the holder here,of shall have all ,of the rights
and remedies proVided by the governing statutes', including the
right to compel the collection of sufficient rates and charges
to" pr'ovide for the payment of this bond. and the interest there-
on.
This bond and all ,other bonds of said iSBu\" ,shall, in the,
hands of bona fide holders, have all of the quallties of negoti-
able, instruments under, the laws of the State of Indiana. This
bond may be registered in the name of the owner, 'in the man,-
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ner and with theeJfectprovided in said ordinance, but unless
:registered:sha).lpassbydelivery. The interestcoUpl)!l.S at-
tached hereto shall at all times pass by delivery. It is herepy
certified and redted that all acts, conditions and things re-
quired to be done precedent, to and in theexecutleti, issuance
anddeliyery of this bond have been done and performed in regu"
lar and due fOTID as ,provided by law. '
IN WITNESS WHEREOF, the Town ,of Carmel, in Hamil-
ton C~Itty, State of lndiana, has ,caused this bond to be signed
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in itscorporatena=e by the duly eleded, ,'Ilialified and
acting President ,of its. BOard of Truste'es, its corporate
seal to be hereunto affixed and attested by its duly elected,
qualified and acting Clerk-Treasurer, and the interest cou-
,pOns hereto' atta,ched to be executed by placing thereon the ' '
facsimile signature of said Clerk-Treasurer, all as of the
first 'day of " 1965.
TOWN OF CARMEL
By
President, Board of Trustees
Attes,t:
Clerk-Treasurer
(Interest Coupon)
CouponN'o;
$
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(unless the bond to whlchthis coupOn refe,rs is sooner re-
deemed), the' TOwn pfCarmel, ,Indiana, will pay to bearer,
at the Union$tate Bapk, in the Town of Carm'el, Indiana,
outof its waterworks Bond and Inte1:est Rede:mption Ac-
count, Dollars in lawful :money of
the United States of America, being the interest then due
on itS. Waterworks Reyenue Bond of 1965; dated
1,1965, No,.
TOWN OF CARMEL
By (Facsimile)
Clerk-Treasurer
REGISTRA nON ENDORSEMENT
This bond can be registered only at the office ,of the
Clerk'-Treaslirer ,of the Town9f Carmel, Indiana. No
writing hereon except by theClerk-Treasul"er.
Date of Registry
In Whose Na=e
Registered
Clerk-Treasurer
Sec. 8. The Clerk-Treasurer is hereby authorized and directed
to have said bonds and coupons prepared, and the President of the Board
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of Trustees and Clerk-Treasurer are hereby authorized and directed
to execute said bonds and the coupons to be attached thereto in the form
and manner hereinb.efore provided," 'The Clerk-Treasurer is hereby au-
. thorized to. sell said bonds at public sale. The Clerk-Treasurer shall
cause to be published a notice of sale. once .each week for twO" weeks in
. the Noblesville Ledger and the Noblesville Times, published in the City
of Noble sville, there being no newspaper published in the Town .of Car- .
mel, and one time in a newspaper published in the City of Indianapolis.
The date fixed for the sale shall not be earlier than seven (7)." days after
the last of said publications. The bond sale notice shall. state the time
and place of sale, the total amount of bonds, the maximum rate of inter-
est thereon, the maturities thereof, the purpose for which the bonds are
being issued, the terms and conditions on which bids will be received
and the sale made, and shall set .out such. other information as the
Clerk-Treasurer, acting on the advice of the J'ownAttorney and bond
counsel, shall deem necessary.
.All bids for said bonds shall be sealed and shall be pr.esented to
the Clerk-Treasurer at his office. Bidders shall be required to name
the .rate or rates of intere st whichthe bonds ar'e to' bear, not exceeding
five per cent {S%J.per annum. Such interest rate or rates shall be in
multiples of one-eighth {lIS}. of one per cent {:l%h and not more than
three {3} different interest rates shall be named .by each bidder. A
rate may be repeated without being considered a .different rate, but all
bonds maturing on the same date must bear the same single rate of in-
terest. The interest due on any interest payment date: on any bond
shall be repre sented by a single cOupon. The Clerk-Treasurer shall
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award the bonds to the highe st qilalified bidder. The highe st bidder
shall be the one who offers the lowest interest cost to the Town, to be
determined by computing the total. interest .on all of the bonds to their
maturities and deducting therefr,om the premium bid, if any. Nobid
for les.s than the par value of said bonds, including accrued interest
to the date of delivery, shall be ,considered. The Clerk-Treasurer
shall have the right to reject any and all bids, and in the event no sat-
isfactory bids are received, the, Clerk-Treasurer shall be authorized
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to continue the sale from. day today for a period of thirty (,30) days
without readvertisement; provided, however, that if said sale be con-
tinuedno bid shall be accepted Which is lower than the highest bid re-
ceived at the time fixed for such .sale in the bond sale notice.
Prior to the delivery of said bonds to thepurcha:ser thereof,
the Clerk-Treasurer shall obtain a legal opiniouasto.the validity of
the bonds from Ice Miller Donadio &: Ryan, acting as bond .counsel for
the Town, and shall furnish such opinion to. the purchaser .of the bonds.
The fee of such bond counsel shall be considered as part .of the cost of
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the project on account of which said bonds are issued and. shalLbe paid
out of the proceeds .of said bonds.
Sec. 9. In the event it shall be hereafter determined that it is
not necessary to issue all of the, bonds authorized by this ordinance, or
. the Public Service Commission shall not approve the issuance of said
total amount of bonds, the Clerl<l-Treasurer. shall be authorized to' sell
and deliver a lesser amount of bonds than herein authorized, in which
case the bonds not sold or delivered shall be .of the last maturity.or
.maturities.
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The bonds hereinauthodzed, when fully paid for and delivered
to the purchaser, shall be' the binding and special revenue.obligations
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of the Town, payable out of the inc'ome and reve.nues' of the waterworks
system of said Town according to their tenor and effect, and the pro-
ceeds derived from. the sale of said bonds shall be and are hereby !let
aside for. the purpose of paying t):1e cost of con.struction and installation
of the aforesaid extensions, additions and improvements to. said water-
works and the expenses necessarily incurred in conne-ctiOR therewith,
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including the expenses incurred in connection with the issuance and
sale of the bonds, and for the payment of interest accruing on the bonds
during the period ofconstructiort, if required for that purpose. The
proper officers of the Town are hereby directed to draw all proper and
nece ssary warrants, and to do all acts and things which may be ne.ces-
sary to carry out the provisions 'Of this o'.rdinance.
Sec. 10. Any accrued interest and any premium received at the
time of the delivery .of the botids shill be deposited in the Bond and In-
terest R.edemption Account hereinbefore created. .The remaining pro-
ceeds from.the sale of the bonds shall be deposited in a bank or banks
which are legallydesigtiated and.qualified depositories for the funds of
the TOwn, in a special acco1.'lnt or accounts to be designated as "Town
of Carmel, Waterworks Construction Account. II Each of such special
accounts shall be deposited, secured, held .or invested as. provided by
the laws relating to the depositing, securing, holding or investing.of
public funds. including Chapter 9 of the Acts of 1945, as amende.d, and
may be secured in any other lawful manner agreed upon by the Clerk-
Treasurer and the purchaser of the bonds. The funds in such special
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account or accounts shall be expended only for the purpose of paying
the cost of the extensions, additions and iInprovements to said water-
works as herein authorized, the incidental expenses incurred in con-
nection therewith and wij;h the is,suance of bonds, and for the paym,ent
of interest accruing on the bonds during the period .of construction, i;f
required for that purpose. Any palanc.e or balances remaining unex-
pended in such special account or accounts. after the completion .of the
work. which are not required to .meet unpaid obligations incurred in
connection with the construction :of the work, shall be deposited in the
Bond and Interest Redemption Accollnt;
Sec. 11. The Town shall keep proper bookS of records and ac-
counts, separate from.all.of its pther records and accounts, in which
complete and correct entries sha.!l be made showing a.llrevenues col-.
lected from said waterworks and deposited in the special accounts
hereinbefore established and 'all :disbursements made therefrom and
all transactions .relating to said waterworks. There .shall be prepared
and furnished to the original purchaser of the bonds and, upon written
request, to any holder of the bonds, not more than ninety (90) days after
.' the close of each annual fiscal peri0d, complete 'operating and income
statements .of the waterwo'rks, . in reasonable detail covering such annn-.
al fiscal period, which statement shall be certified by the Clerk-Treas-
urer or be prepared by an independent certified public accountant.re-
tained for the purpose of preparing such statements. Copies of all
such statements and reports shall at all times be kept on file in the
office of the Clerk-Treasurer. Any holder of the bonds shall have the
right at all reasonable times to inspect the waterworks and the records,
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accounts' and data of the Town. relating thereto.
Sec. 12. .The Town shall, to the fullestex:tent permitted by law,
establish, maintain a.nd collect reasonable and Just rates and charges.
for thEl sElrvices and facilitiEls afforded by said watElrworks which will
providEl rElVElnues at lElast sufficiElnt to pay thEl reasonablEl' and propEl l'
cost 'of thEl maintElnancEl and OpEl ration of thEl watElrworks, toprovidEl a
.proper and rElas'OnablEl dElpreciation account, and to .pay the principal of
and intElrElst On thEl .bonds payable from thEl rElvenuElsof the waterworks
as the same bElcomEl dUEl and provide a .surplus or margin .of ten per
cent (IO%)'of thEl principal and interElst dUEl ElachyElar, which shall bEl
cumulative. So long as any of thEl bond,s hElrElin authorized are outstand-
ing, none of the facilities and service afforded by said waterworks . shall
be' furnished without a reasonable and just charge being made therElfor.
The reasonable value .of any facility or' service rendElred to thEl rown;
.01' to any department, agency or instru;mentalitythereof, including the
use'.of water for hydrants for fire protection or for any other purpose,
shall be charged against the Town and shall be paid for as the charges
accrue, and the revenUEl so receivEldshall bEl deElmed to bEl rElvenue de-
rived from the operation of the waterworks and shall bEl used and ac-
counted for in the same manner' as other revenues derived from theoper-
ation. of the waterworks. The Town covenants to thEl fullest extent pElr-
mUted by law, and subject to approval by the Public Service Commiss~an,
to maintain a minimum of one hundred POD) fire hydrants, and to pay an
annual rental of OnEl HundrEld Twenty-five Dollars C$12Sfperhydrant, per
year, which the Board .of Trustees noW finds is a reasonable and. proper
char.ge therefor. Said minimum,numbe.r of hydrants shall b.e maintained
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and said rental will be paid by the Town to the various waterworks
revenue, accounts in the proportions and percentage's as hereinabove
set forth, so long as any of the bonds herein authorized are outstand~
ing.
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Redemption Account for said year equal to not les s than one hundred
twenty-five per cent (l250/0) of the maximum annual interest and prin-
cipal requirements .of the outstanding bonds and the additional p.arity
bonds proposed to be issued; or
flU} Prior to the issuance of said parity bonds, the water
rates and charge s shall be increased sufficiently and the proportion
of gross revenues allocated to .said Bond and Interest Redemption Ac-
count increased sufficiently so that said increased water rates and
charges applied to. the previous calendar year's operations would have
produced gross revenues in an amount so that the proportion allocated
to said Bond and Intere st Redemption Account for said .year would have
equaled not less than one hundred twenty-five per cent (;1250/0) .of the
maximum annual intere st and principal requirement.s of the then out-
standing bonds and the. additional parity bonds. proposed to be issued.
For purposes of this .subsection, the records of the waterworks
shall be analyzed arid all showings shall be prepared by a certified pub-
lic accountant employed by the Town for that purpose.
(c) The interest on the additional parity.bonds shall be payable
semi-annually on May i and November 1 and the principal shall be pay-
able annually on November. 1 in the years in which principal and interest
are payable.
Cd) To the extent required by law, the issuance of the proposed
additional parity bonds and any necessary incxease in water rates and
charges shall have been approved by the Public Service. Commission o.f
Indiana.
Sec. 14. For the purpose of further safeguarding the interests
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of the holders ,;If the bonds', it is specifically provided as follows:
fa} All construction contracts sha,ll be let to responsible con-
tractors who shall be required to furnish construction bonds running to.
the Town of Carmel, in an amount equal to' one hundred per cent fIOO%}
of the amount ofs-uch contracts, to insure the completion of such c'on.-
tracts in accordance :wHh their term S', and such contractor.s ,shall be
required to carry such employer's liability and public liability inS\l1'-
ance as are required under the laws of the State of Indiana in .thecase
of public contracts.
('b)~ The extensions, additions and improvements shall.becon-
tracted for and constructed to the approval of Clyde E. Williams.&
Associates, Inc. ,consultingengineer s of South Bend and Indianapolis,
Indiana, now employed by the Town, or such other consulting engineers
as may hereafter be employed by the Town with the approval of the pur-
,chaser of the bonds. All estimates for work ,done and material fur-
roshed shall first be checked by the consulting engineers before being
approved by the Town.
ec) The Town shall, at all times, maintain said waterworks in
good condition and op'erate the same in an efficient .manner and at a rea-
sOJUlble cost.
Cd) So long as any of the bond,s herein authorized are out stand-
ing, the Town shall maintain insurance on the insurable parts of the '
.
waterworks, and public liability and property damage insurance,Of a
kind and in an amount such asis usually carried by private companies
engaged in a similar type ~ofbusiness.' All insurance shall be placed
with responsible insurance com.paniesqualified to do business in the
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p
State of I!ldiana, and any in~urance proceeds collected .shall be used
in replacing the property destrc;>yed or .damaged.
tel So long as any.of the bonds .herein authorized are outstand-
ing, the Town shall not mortgage, pledge .or otherwise encumber its
waterworks or any part thereof, and shall not sell, leaseOT otherwise
dispose of any portion thereof except such as shall nO' longe'r be useful
in the operation of the waterworks;no'r, except as provided iJJ: Sec. 13
hereof, shall the Town execute or issue any additional .bon.ds or other
obligations pledging any portion of the revenues .of the waterworks un-
0." . .
less the same be made subordinate and junior in all respects to the
bonds herein authorized.
Cf) The provisions of this ordinance shall be construed to create
a trust in the proceeds derived from the sale of thebond$ herein author-
ized, for 1:):1e uses and purposes herein set forth, and so long as any.of
said bonds are outstanding the provisions' of this ordinance shall also be
construed to. create a trust in the fixed proportion of the revenue s.of the
waterworks herein directed to be set apart and paid into the Bond and
Interest Redemption Account for the uses' and purposes of said account
as in this ordinance set fo.rth.
(g). The provisions of this ordinance shall constitute a contract
by and between the Town of Carmel and the holders of the b.ondsherein
authorized, all of the terms of which shall be' enforceable in law or in
equity, and after the issuance 'of the bond.s this ordinance shall not be
repealed or amended in any respect which will adversely affect the
rights and interests of the holders of said bonds, nor shall the Board
of Trustees. of the Town adopt any law, ordinance or resolution in any
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way adversely affecting the rights of such holders: 'S,o long as any of the:
bonds or the interest thereon r:emain unpaid. The holders of the bonds
shall have all, of the rights, remedies and privileges, .eitherexpressly
set forth in the provisions of Chapter 155 .of the Acts of the Indiana Gen-
eral As sembly fo'r the year 1929, and all acts amendatory thereof and
supplemental thereto, :or implied therein, including the right to com-
pet the collection .of sufficient rates and charges to provide for the pay-
ment of the bonds issued hereunder and. the interest thereon.
Sec. 15. All ordinances and parts of ordinances in conflict
herewith are hereby repealed.
Sec. J 6. .This ordinance shall be in full force andeffe<;:t from
and.after its passage.
Passed and~~tedbY the Board of Trustees of the Town .of
Carmel 0" the .. /0.. day Ofn ..' 1965. .
1:P,LI~~I'~~'
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Q.~ y: //:.7;-/0/ /
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. !,oardof Trustees
Attest:
',-1~" . _uxJ' it::
Clerk-Treasurer
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