Loading...
HomeMy WebLinkAboutA-18 Refinancing Waterworks Bond " : .... 1..__. ORDINANCE NO. A-I' An Ordinance concerning the refinancing of, and the construction of extensions, additions and improvements to the municipal waterworks of the Town of Carmel, authorizing the issuance of additional revenue bonds to provide for the cost thereof, and matters connected therewith WHEREAS, the Town of Carmel is the owner of and oper- ates an unencumbered waterworks system furnishing the public water supply to said Town and its inhabitants; and WHEREAS, the Board of Trustees has determined that said waterworks is in need of certain extensions, additions and improvements in order to provide an adequate volume and quality of water at proper pressure to the inhabitants of the Town; and that said extensions, additions and improve- ments are required in order to protect properly the health, well-being and property of the Town and its inhabitants; and WHEREAS, the Town has employed Clyde E. Williams & Associates, Inc., consulting engineers of South Bend and Indianapolis, Indiana, to.determine the extensions, addi- tions and improvements required and the cost thereof and to prepare plans, specifications and estimates therefor, and the Board has found from the report of said engineers that the existing unsatisfactory conditions can be remedied by the construction of certain extensions, additions and improve- ments, consisting principally of the construction and in- stallation of two new wells with pumps, a new treatment plant, a transmission main, reinforcing and other water . \,." - 2 - .~. / .' / refinancing of said outstanding obligations and for' the improvement project should be provided by the issuance and sale of revenue bonds in the amount of One Million Ninety- five Thousand Dollars ($1,095,000) payable solely out of the revenues of said waterworks and not constituting a general obligation of the Town; and WHEREAS, the Board. finds that the Town now has out- standing.certain Waterworks Revenue Bonds of 1965 payable from the revenues of the waterworks in the amount of Three Hundred Thousand Dollars ($300,000) authorized by Ordinance No. A-S, adopted July 10, 1965; issued under date of Octo- ber 1, 1965, and maturing on November 1 of each year to and including November 1, 2000, whlch bonds constitute a first charge upon a certain portion of the gross revenues of the waterworks; that under the terms and conditions of said bonds the Town has the right to issue additional waterworks revenue bonds without adversely affecting the rights of the holders of the outstanding waterworks revenue bonds, provid- ed such additional bonds are made junior and subordinate to said waterworks revenue bonds heretofore issued and now out- standing; now therefore, . BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF CARMEL, INDIANA: Section 1. That the Town of Carmel, being the owner of and engaged in operating a waterworks system supplying the Town and its inhabitants with a public water supply, now provide for certain needed extensions, additions and im- provements to such waterworks and for the refinancing of certain outstanding obligations, by the issuance of revenue - 3 - . ~ bonds payable solely from the revenues and receipts of such waterworks pursuant to and in the manner prescribed in The Indiana Code of 1971, and. particularly Title 19, Article 8, Chapter 7 thereof, and all laws amendatory thereof or supple- mental thereto (sometimes hereinafter referred to as the "Act"); provided, however, that the additional revenue bonds authorized by this ordinance shall be junior and subordinate in all respects to the bonds designated as "Waterworks. Revenue Bonds of 1965," outstanding in the amount of Three Hundred Thousand Dollars ($300,000), and none of the provi- sions of this ordinance shall be so construed as to affect the rights of the holders of said outstanding revenue bonds. The terms "waterworks," "water system," "system," and "water- works system" where used.in this ordinance shall be construed to mean and include the existing waterworks system owned by the Town of Carmel and all extensions, additions and improve- ments thereto and replacements thereof now or subsequently constructed or acquired. Sec. 2. Said extensions, additions and improvements shall be constructed and installed in accordance with the plans, specifications and estimates prepared by Clyde E. Williams & Associates, Inc., consulting engineers of South Bend~and Indianapolis, Indiana, which plans, specifications and estimates are hereby approved. The extensions, additions and improvements shall consist of the construction and instal- lation of two new wells with pumps, a new treatment plant, a transmission main, reinforcing and other water mains, addi- tions of treatment facilities to the existing treatment plant and necessary appurtenances. - 4 - L Sec. 3. The proper officials of the Town are hereby authorized and directed to proceed with the construction and installation of said extensions, additions and improve- ments, and the refunding of the outstanding obligations, and to enter into all contracts necessary for such purpose in conformity 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 of said extensions, additions and improvements, and the issuance of the re- quired amount of revenue bonds; (b) That the principal and interest of the bonds issued on account of such extensions, addi- tions and improvements, and the refunding, 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 water- works, together with the income and revenue of all extensions, additions and improvements thereto and replacements thereof made pursuant to this ordinance, or subsequently, shall be set aside into a separate and special fund to be used and applied in the maintenance and operation thereof, in estab- lishing a depreciation account, and payment of the now out- standing revenue bonds and the revenue bonds authorized by this ordinance and the interest thereon. The proportion of the gross revenues of said waterworks shall be paid into the several accounts of said special fund, heretofore established by Ordinance No. A-8, adopted on July 10, 1965, is hereby fixed and determined as follows: (a) Operation and Maintenance Account. Thirty-four per cent (34%) of the gross revenues of said waterworks shall be paid into the "Operation and Maintenance Account," and - 5 - , \.;.. ~ ~ shall be used to pay the necessary cost of the reasonable ./ and proper operation and maintenance of the waterworks, including any taxes required to be paid. The sum so set aside for operation and maintenance shall be applied ex- clusively to that purpose until a surplus shall have been accumulated in the Operation and Maintenance Account which shall be equal to the cost of maintaining and operat- ing the waterworks during the remainder of the calendar, operating or fiscal year then current and the cost of main- taining and operating the waterworks during the calendar, operating or fiscal year then next ensuing. Any excess over such surplus may be transferred by the Board of Trustees to either the Depreciation Account or the Bond and Interest Redemption Account. (b) Depreciation Account. Eight per cent (8%) of the gross revenues of said waterworks shall be paid into the "Depreciation Account," and shall be expended in making good depreciation in the waterworks, or in new construction, extensions or additions to the property of the system. Any accumulation iri such Depreciation Account not required for immediate use may be invested as provided by the laws govern- ing the investment 'of municipal funds, and if so invested the income from the investment shall accrue to the Depre- ciation Account. Said account shall not be used for any purpose other than as herein provided. (c) Bond and Interest Redemption Account. Fifty- eight per cent (58%) of the gross revenues of the water- works shall, as such revenues are received, be set apart and paid into the special account identified as the "Bond - 6 - , '!Pi... and Interest Redemption Account." The funds in said account shall be used solely for the purpose of (1) paying the inter- est on and principal of the Waterworks Revenue Bonds of 1965 issued pursuant to Ordin~nce No. A-B, in accordance with the terms thereof, and (2) paying the interest on and principal of the bonds issued pursuant to the provisions of this ordi- nance in accordance with the terms hereof, and any bonds hereafter issued ranking on a parity therewith, to the ex- tent required for said purpose. If and when a surplus shall be created in said Bond and Interest Redemption Account which shall be in excess of the interest on and principal of the bonds, plus ten per cent (10%) which are payable dur- ing the then current calendar, operating or fiscal year, to- gether with the amount of interest on and principal of the bonds which will become due and payable during the calendar, operating or fiscal year then next ensuing, plus ten per cent (10%), then the Board may transfer any excess over such required surplus to either the operation and Maintenance Account or to the Depreciation Account, or may direct that any such excess funds over such required surplus shall be used in the pur~hase or redemption of outstanding bonds at a price not exceeding the then applicable redemption price specified in the ordinance authorizing the issuance of said bonds. No further payments need be made into the Bond and Interest Redemption Account when the amount contained there- in equals or exceeds the amount of the principal of the bonds then outstanding and interest thereon to the dates of maturity thereof. , All of the funds of said seve~al accounts shall be de- posited in lawful depositories of the Town, and shall be - 7 - . .. continuously held and secured or invested as provided by the laws of Indiana relating to the depositing, securing, holding and investing of public funds. In no event shall any of the revenues of said waterworks be transferred or used for any purpose not authorized by this ordinance so long as any of the bonds issued pursuant to the provisions of this ordinance shall be outstanding. 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 water- works, and to pay and discharge the outstanding obligations, 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 hereinabove referred to, subject to the prior servicing of the outstanding "Water- works Revenue Bonds of 1965," hereinbefore referred to, in accordance with the terms thereof. The bonds authorized by this ordinance shall be designated as "Waterworks Revenue Improvement and Refunding Bonds," and shall be in a princi-. pal amount not exceeding One Million Ninety-five Thousand Dollars ($1,095,000), in the denomination of Five Thousand Dollars ($5,000), 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 ex- ceeding six per cent (6%) per annum, the exact rate or rates to be determined by bidding, which interest shall be payable semi-annually on May 1 and November 1 in each year, begin- ning on November 1, 1971, and shall be evidenced by coupon~ - 8 - ., ""-" / / attached to said bonds. Both bonds and interest coupons shall / be payable at the Union State Bank, in the Town of Carmel; Indiana, or, at the option of the holder, at the principal office of Merchants National Bank & Trust Company of Indiana- polis, in the City of Indianapolis, Indiana, in lawful money of the United States of America, and said bonds shall mature serially on November 1 in the years and amounts as follows: Years Amounts Years. Amounts 1972 $30,000 1984 $60,000 1973-1976 incl. 35,000 1985-1986 65,000 1977 40,000 1987 70,000 1978-1979 45,000 1988 75,000 1980-1982 incl. 50,000 1989 80,000 1983 55,000 1990 85,000 1991 90,000 The bonds of this issue maturing on Nov~mber 1, 1982, and thereafter; shall be redeemable at the option of the Town, in whole or in part, on May 1, 1982, or any interest payment date thereafter, in their inverse numerical order, at face value, together with the following premiums: 4% if redeemed on May 1, 1982, or thereafter on. or before November 1, 1986, 2% if redeemed on May 1, 1987, or thereafter . prior to maturity: plus in each case accrued interest to the date fixed for re- demption. Notice of such redemption shall be published one time at least. thirty (30) days prior to the date fixed for re- demption and a second time at least fifteen (15) days prior to the date of redemption in a newspaper of general circulation printed and published in Hamilton County and circulating in the Town of Carmel, Indiana, and in a newspaper or financial journal of general circulation published in the City of Indiana- polis, Indiana. If any of the bonds so to be redeemed are re- gistered, such notice shall also be mailed to the address of - 9 - , \... the registered holder as shown on the registration records of the Town. The notice shall specify the date and place of redemption and the numbers of the bonds called for redemp- tion. The place of redemption may be the place of payment named in the bonds, or otherwise as determined by the Town. 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 pay the principal of and premium and interest on the bonds so called for redemp- tion, on the date fixed in said notice and thereafter when presented for payment. Coincidentally with the payment of the redemption price, the bonds so called for redemption shall be surrendered for cancellation, together with the unmatured interest coupons appurtenant thereto. Sec. 6. Said bonds shall be signed in the name of the Town of Carmel by the President of the Board of Trustees, and shall be attested by the Clerk-Treasurer who shall affix the seal of the Town 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 offi- cial, by the signing of said bonds, shall adopt as and for his proper signature his facsimile signature appearing on said coupons. In case any officer whose signature appears on the bonds and coupons shall cease to be such officer before the delivery of such bonds, his signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Said bonds shall be negotiable by delivery unless re- qistcred. UpOl1 presentation of the bonds at the office of the Clerk-Treasurer in the Town of Carmel, said Clerk-Treasurer - 10 - . .~ shall register said bonds as to the principal thereof, without charge or expense to the holder. Such registry shall be noted on the bonds, after which no transfer thereof will be valid unless made by the registered owner in person or by his attor- ney duly authorized, and similarly noted on the bonds, but said bonds may be discharged from registry by being in like manner retransferred to bearer, after which they shall be transferable by delivery, but mayagairi be registered as be- fore. The registration of any bond shall not affect. the nego- tiability of the interest coupons attached thereto; but such. coupons shall continue to pass by delivery merely and shall remain payable to bearer. Sec. 7. The form and tenor of said bonds, the inter- est coupons to be attached thereto, and the form of registry endorsement thereon, shall be substantially as follows, to-wit: UNITED STATES OF AMERICA State of Indiana County of Hamilton No. $5,000 TOWN OF CARMEL WATERWORKS REVENUE IMPROVEMENT AND REFUNDING BOND The Town of Carmel, in Hamilton County, State of Indiana, for value received, hereby promises to pay to bearer, or if this bond be registered then to the registered holder hereof, solely out of the special revenue fund hereinafter referred to, the principal amount of FIVE THOUSAND DOLLARS on the first day of November, 19 (unless this bond be subject to and called for-prior redemption and payment provided therefor), and to pay interest thereon from the date hereof until the principal is paid at the rate of per cent ( %) per annum, payable seml-annually on the first days of May and November in each year, beginning on November 1, 1971, upon presentation and surrender of the annexed coupons as they severally become due. - 11 - . ... /' /' / Both principal and interest of this bond are 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 principal office of Merchants National Bank & Trust Company of Indianapolis, in the City of Indianapolis, Indiana. This bond is one of an authorized issue of two hundred nineteen (219) bonds of the Town of Carmel, of like date, denomination, tenor and ef- fect, except as to numbering, dates of maturity and rates of interest, in the total amount of One Million Ninety-five Thousand Dollars ($1,095,000), numbered consecutively from 1 to 219 inclusive, issued for the purpose of providing funds to pay the cost of construction of extensions, additions and improvements to the municipally owned water- works of said Town, and the refunding of outstand- ing obligations, pursuant to an ordinance passed by the Board of Trustees of said Town on April , 1971, entitled "An Ordinance concerning the refinanc- ing of, and the construction of extensions, addi- tions and improvements to the municipal waterworks of the Town of Carmel, authorizing the issuance of additional revenue bonds to provide for the cost thereof, and matters connected therewith," and in strict compliance with the provisions of the governing statutes, particularly Title 19, Article 8, Chapter 7 of The Indiana Code of 1971, and all laws amendatory thereof or supplemental thereto. The principal and interest of this bond and all other bonds of said issue, and any bonds rank- ing on a parity therewith, are equally and ratably secured by and constitute a charge upon fifty- eight per cent (58%) of the gross income and reve- nues of the municipally owned waterworks of the Town as the same now exists or may hereafter be improved or extended, which percentage of such in- come and revenues is to be deposited in a special fund designated as the "Bond and Interest Redemp- tion Account" heretofore duly created; all subject, however, to the prior payment in accordance with the. terms thereof of the interest on and principal of certain now outstanding waterworks Revenue Bonds of 1965, bearing interest at the rates of four and one-eighths per cent (4-1/8%) per annum, three and three-fourths per cent (3-3/4%) per annum or three and seven-eighths per cent (3-7/8%) per annum de- pending upon the maturity issued under date of October 1, 1965, now outstanding in the principal amount of Three Hundred Thousand Dollars ($300,000) and maturing on November 1 of each year to and in- cluding November 1, 2000, which bonds were author- ized by Ordinance No. A-8, adopted on July 10, 1965, and constituting a first charge upon the revenues - 12 - c..'.. allocated to said Bond and Interest Redemption Account. The Town shall not be obligated to pay said bonds or the interest thereon except from said special fund, and neither this bond nor the issue of which it is a part shall in any respect constitute a corporate indebtedness of the Town within the provisions and limitations of the con- stitution of the State of Indiana. The bonds of this issue maturing on Novem- ber 1, 1982, and thereafter, are redeemable at the option of the Town, in whole or in part, on May 1, 1982, or any interest payment date there- after, in inverse numerical order, at face value, together with the following premiums: 4% if redeemed on May 1, 1982; or there- after on or before November 1, 1986; 2% if redeemed on May 1, 1987; or there- after prior to maturity; plus, in each case, accrued interest to the date fixed for redemption; provided notice of said re- demption shall be given one time at least thirty (30) days, and a second time at least fifteen (15) days, prior to the redemption date by publi- cation in a newspaper of general circulation printed and published in Hamilton County and cir- culated in the Town of Carmel, Indiana, in a news- paper or financial journal published in the City of Indianapolis, Indiana, and a notice shall be sent by mail to the holders of such bonds as are then registered. 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 bonds when presented. The bonds so redeemed prior to maturi- ty shall be surrendered for cancellation, together with unmatured interest coupons appurtenant there- to. The Town covenants that it will, to the full- est permitted by law, fix, maintain and collect an aggregate of rates and charges for the services rendered by said waterworks which will be suffi- cient to pay all costs of operation and mainte- nance of said waterworks, to provide a proper and adequate depreciation account, and to create and maintain the sinking fund required for the payment of all bonds which by their terms are payable from the revenues of said waterworks, and that it will in all other respects faithfully comply with all of the provisions of the governing statutes pursu- ant to which this bond is issued. In the event the Town shall make any default in the payment of the principal of or interest on this bond, the holder hereof shall have all of the rights and - 13 - , ~-l!. / / / / remedies provided by the governing statutes, including the right to compel the collection of sufficient rates and charges to provide for the payment of this bond and the interest hereon. This bond and all other bonds of said issue shall, in the hands of bona fide holders, have all of the qualities of negotiable instruments under the laws of the State of Indiana. This bond may be registered in the name of the owner, in the manner and with the effect provided in said ordinance, but unless registered shall pass by delivery. The interest coupons attached here- to shall at all times pass by delivery. It is hereby certified and recited that all acts, con- ditions and things required to be done precedent to and in the execution, issuance and delivery of this bond have been done and performed in regular and due form as provided by law. IN WITNESS WHEREOF, the Town of Carmel, in Hamilton County, State of Indiana, has caused this bond to be signed in its corporate name by the duly elected, qualified and acting President of its Board of Trustees, its corporate seal to be hereunto affixed and attested by its duly elected, qualified and acting Clerk-Treasurer, and the interest coupons hereto attached to be executed by placing thereon the facsimile signa- ture of said Clerk-Treasurer, all as of the first day of , 1971. TOWN OF CARMEL By President, Board of Trustees Attest: Clerk-Treasurer (Interest. Coupon) Coupon No. $ On 1, 19 , the Town of Carmel, Indiana, will pay to bearer (unless the bond to which this coupon refers is sooner redeemed) at the Union State Bank, in the Town of Carmel, Indiana, or, at the option of the holder, at the principal office of Merchants National Bank & Trust company of Indianapolis, in the City of Indianapolis, Inctiana, out of its waterworks Bond and Interest Redemption Account, - 14 - 1... Dollars in lawful money of the United States of America, being the in- terest then due on its Waterworks Revenue Improve- ment and Refunding Bond, dated , 1971, No. TOWN OF CARMEL By . (Facsimile) Clerk-Treasurer REGISTRATION ENDORSEMENT This bond can be registered only at the office of the Clerk-Treasurer of the Town of Carmel, Indiana. No writing hereon except by the Clerk-Treasurer. In Whose Name Date of Registry 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 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 herein- before provided. The Clerk-Treasurer is hereby authorized to sell said bonds at public sale. Prior to the sale of the bonds, the Clerk-Treasurer shall cause to be published a no- tice of sale once each week for two weeks in the Noblesville Ledger and the Noblesville Time published in the City of Noblesville, Indiana, and posted as required by law, there being no newspaper qualified for legal advertising in the Town of Carmel, and one time in The Indianapolis Commercial published in the ci.ty of Indianapolis, Indiana. The date fixed for the sale shall not be earlier than seven (7) days after the last of said publications. The bond sale notice - 15 - ~~. shall state the time and place of sale, the total amount of bonds, the maximum rate of interest 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 Town Attor- ney and bond counsel, shall deem necessary. All bids for said bonds shall be sealed and shall be presented to the Clerk-Treasurer at his office. Bidders shall be required to name the rate or rates of interest which the bonds are to bear, not exceeding the maximum rate hereinbefore fixed. Such interest rate shall be in multi- pIes of one-eighth (1/8) or one-tenth (1/10) of one per cent (1%), and not more than three (3) interest rates shall be named by each bidder. The Clerk-Treasurer shall award the bonds to the highest qualified bidder. The highest quali- fied 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 deduct- ing therefrom the premium bid, if any. No bid for less than the par value o~ 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 satisfactory bids are received, the Clerk- Treasurer shall be authorized to continue the sale from day to day for a period of thirty (30) days without readvertise~ ment; provided, however, that if said sale be continued no bid shall be accepted which is lower than the highest bid re- cci ved a l: the time fixed for such sale in the bond s ale notice. - 16 - , ,",'.. Prior to the delivery of the bonds, the Clerk- Treasurer shall obtain a legal opinion as to the validity of the bonds from Ice Miller Donadio & Ryan, acting as bond counsel for the Town, and furnish such opinion to the pur- chasers of the bonds. The fee of such bond counsel shall be considered as part of the cost of the project on account of which said bonds are issued and shall be paid out of the proceeds of said bonds. Sec. 9. In the event it shall be hereafter deter- mined that it is not necessary to issue all of the bonds authorized by this ordinance, or the Public service Commis- sion shall not approve the issuance of said total amount of bonds, the Clerk-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 of maturities. The bonds herein authorized, when fully paid for and delivered to the purchaser, shall be the binding and special revenue obligations of the Town payable out of the income and revenues of the waterworks system of said Town according , to their tenor and effect, and the proceeds derived from the sale of said bonds shall be and are hereby set aside for the purpose of refunding the outstanding obligations and for pay- ing the cost of construction and installation of the afore- said extensions, additions and improvements to said water- works and the expenses necessarily incurred in connection therewith, 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 of construc- - 17 - , 1_.._ '- tion, if required for that purpose. The proper officers of the Town are hereby directed to draw all proper and neces- sary warrants, and to do all acts and things which may be necessary to carry out the provisions of this ordinance. Sec. 10. Any accrued interest and any premium re- ceived at the time of the delivery of the bonds shall be de- posited in the Bond and Interest Redemption Account herein- before created. The remaining proceeds from the sale of. the bonds shall be deposited in a bank or banks which are legally designated and qualified depositories for the funds of the Town, in a special account or accounts to be desig- nated as "Town of Carmel, waterworks Refunding and Construc- tion Account." Each of ~uch special accounts shall be de- posited, secured and held or invested as providedbyilie laws relating to the depositing, securing and holding or in- vesting of public funds, including Chapter I, Article 13, Title 5 of The Indiana Code of 1971, 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 account or accounts shall be expended only for the purpose of discharging the, outstanding obligations and paying the cost of the extensions, additions and improvements to said waterworks as herein authorized, the incidental expenses in- curred in connection therewith and with the issuance of bonds, and for the payment of interest accruing on the bonds during the period of construction, if required for that purpose. Any balance or balances remaining unexpended in such special account or accounts after the completion of the work, which are not required to meet unpaid obligations incurred in con- nection with the construction of the work, shall be deposited' - 18 - ~,. / / / in the Bond and Interest Redemption Account. Sec. 11. The Town shall keep proper books of records and accounts, separate and apart from all of its other re- cords and accounts, in which complete and correct entries shall be made showing all revenues collected from said water- works and deposited in the special accounts hereinbefore es- tablished and all disbursements made therefrom and all trans- actions 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 period, complete operating and income statements of the water- works, in reasonable detail covering such annual fiscal per- iod, which statements shall be certified by the Clerk- Treasurer or. a competent auditor employed for the purpose of making an audit of the records of said waterworks. 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 in- spect the waterworks and the records, accounts and data of the Town relating thereto. Sec. 12. The Town shall, to the fullest extent per- mitted by law, establish, maintain and collect reasonable and just rates and charges for the services and facilities afforded by said waterworks which will provide revenues at least sufficient to pay the reasonable and proper cost of the maintenance and operation of the waterworks, to provide a proper and reasonable depreciation account, and to pay the principal of and interest on all bonds which, by their terms, are payable from the revenues of the waterworks, as the same - 19 - 1 ". become due, and to create a surplus or margin of ten per cent (10%) of the principal and interest due each year. So long as any of the bonds herein authorized are outstanding, none of the facilities and service afforded by said water- works shall be furnished without a reasonable and just charge being made therefor. The reasonable value of any fa- cility or service rendered to the Town; or to any depart- ment, agency or instrumentality thereof, 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 revenue so received shall be deemed to be revenue derived from the operation of the waterworks and shall be used and accounted for in the same manner as other revenues derived from the operation of the waterworks. The Town covenants to the fullest extent permit- ted by law, and subject to approval by the Public Service Commission, to maintain a minimum of three hundred seventy- four (374) hydrants, and to pay an annual rental of One Hundred Eighty-five Dollars ($185) per hydrant, per year, which the Board of Trustees now finds is a reasonable and proper charge therefor. Said minimum number of hydrants shall be maintained and said rental will be paid by the Town to the various waterworks revenue accounts in the proportions and percentages as hereinabove set forth, so long as any of the bonds herein authorized are outstanding. Sec. 13. The Town reserves the right to authorize and issue additional bonds, payable out of the revenues of the waterworks, of equal priority with the bonds authorized by this ordinance, for the purpose of financing the cost qf future additions, extensions and improvements to the water- - 20 - , ,.." -- works, subject to the following conditions: (a) The interest on and principal of all bonds paya- ble from the revenues of the waterworks shall have been paid to date in accordance with the terms thereof, and all re- quired payments into the Bond and Interest Redemption Account have been made in accordance with the provisions of Ordinance No. A-a, and the provisions of this ordinance. (b) (1) The amount of gross revenues of the water- works allocated by Sec. 4(c) of this ordinance to and depos- ited in the Bond and Interest Redemption Account in the cal- endar year immediately preceding the issuance of any such additional equal priority bonds shall be not less than one hundred twenty-five per cent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the additional equal priority bonds proposed to be issued; or (2) prior to the issuance of said equal priority bonds, the proportion of the gross revenues allocated to said Bond and Interest Redemption Account shall be increased sufficiently so that said increased proportion applied to the previous calendar year's gross revenues would have pro- duced revenues in said Bond and Interest Redemption Account for said year equal to not less than one hundred twenty-five per cent (125%) of the maximum annual interest and principal requirements of the then outstanding bonds and the addition- al equal priority bonds proposed to be issued; or (3) prior to the issuance of said equal priority bonds, the water rates and charges shall be increased suffi- ciently and the proportion of gross revenues allocated to said. Bond and Interest Redemption Account increased sufficiently so - 21 - ........ /' ." / that 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 Interest Redemption Account for said year would have equaled 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 additional equal priority bonds proposed to be issued. For purposes of this subsection, the records of the waterworks shall be analyzed and all showings shall be pre- pared by an independent certified public accountant employed by the Town for that purpose. (c) The interest on the additional parity bonds shall be payable semi-annually on May 1 and November 1, and the principal shall be payable annually on November 1 in the years in which interest and principal are payable. (d) The issuance of the proposed additional equal priority bonds and any necessary increase in water rates and charges shall have been approved by the Public service Commission of Indiana in the manner and to the extent pro- vided by law. Sec. 14. For the purpose of further safeguarding the interest of the holders of the bonds, it is specifically pro- vided as follows: (a) All construction contracts shall be let to re- sponsible contractors who shall be required to furnish con- struction bonds running to the Town of Carmel, in an amount equal to one hundred per cent (100%) of the amount of such contracts, to insure the completion of such contracts in ac- cor dance with their terms, and such contractors shall be - 22 - J,..,.. required to carry such employer's liability and public liability insurance as are required under the laws of the State of Indiana in the case of public contracts. (b) The extensions, additions and improvements shall be contracted for and constructed to the approval of Clyde E. Williams & Associates, Inc., consulting engineers of South Bend and Indianapolis, Indiana, now employed by. the Town, or such other consulting engineers as may hereafter be employed by the Town. All estimates for work done and material furnished shall first be checked by the consulting engineers before being approved by the Town. (c) The Town shall, at all times, maintain said water- works 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 in- surable parts of the waterworks of a kind and in an amount such as is usually carried by private companies engaged in a similar type of business. All insurance shall be placed with responsible insurance companies qualified to do business in the State of Indiana, and any insurance proceeds collected shall be used in replacing the property destroyed or damaged. (e) So long as any of the bonds herein authorized are outstanding, the Town shall not mortgage, pledge or other- wise encumber its waterworks or any part thereof, and shall not sell, lease or otherwise dispose of any portion thereof except such property as may become worn out, obsolete or no longer needed; nor shall the Town execute or issue any addi- tional bonds or other obligations pledging any portion of the revenues of said waterworks, except as provided in Sec. 13 - 23 - . ~:. . of this ordinance, unless the same be made subordinate and junior in all respects to the bonds herein authorized. (f) The provisions of this ordinance shall be con- strued to create a trust in the proceeds derived from the sale of the bonds herein authori zed,' for the uses and pur- poses 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 revenues 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 forth. (g) The provisions of this ordinance shall consti- tute a contract by and between the Town of Carmel and the holders of the bonds herein authorized, all of the terms of which shall be enforceable in law or in equity, and after the issuance of the bonds this ordinance shall not be re- pealed 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, ordi- nance or resolution in any way adversely affecting the rights of such holders so long as any of the bonds or the interest thereon remain unpaid. The holders of the bonds shall have all of the rights, remedies and privileges, either expressly set forth in the provisions of Chapter 17, Article 3, Title 19 of The Indiana Code of 1971, and all laws amendatory there- of and supplemental thereto, or implied therein, including the right to compel the collection of sufficient rates and charges to provide for the payment of the bonds issued here- under and the interest thereon. - 24 - , '" / / /' Sec. 15. All ordinances and parts of ordinances in conflict herewith are hereby repealed; provided, however, that none of the provisions of this ordinance shall be so construed as to repeal or modify the provisions of Ordinance No. A-S, hereinbefore referred to, so as to adversely affect the rights, interests or priorities of the holders of the outstanding Waterworks Revenue Bonds of 1965 issued pursuant to said ordinance. Sec. 16. This ordinance shall be in full force and effect from and after its passage. Passed and adopted by the Board of Trustees of the Jt ' Town of Carmel on the ~ day of April, 1971. Attest: ~1'~~~' C erk-Treasurer - 25 - i ..""