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HomeMy WebLinkAboutA-20 Amend Sec 4,5 A-19 . " " ... 126 -' .-____ 'Af2a 122 ,....,.~ 910 ORDINANCE NO .R., ~dJ' A-20 An Ordinance to amend Sections 4 and 5 of "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 there- with" WHEREAS, the Board of Trustees has heretofore on April 12, 1971, adopted Ordinance No. A-IS to provide for financing and construction of certain extensions, additions and improvements to its municipal waterworks, and for the refinancing of certain outstanding obligations; and WHEREAS, said Ordinance provided for a maximum in- terest rate of six per cent (6%) per annum and for aIloca~ tions of the gross revenues upon the basis of interest rates up to six per cent (6%) per annum; and WHEREAS, the Board of Trustees, upon the advice of its utility accountants, has determined (that because of changes in interest rates, and to insure the sale of the bonds, that it is desirable to increase the maximum interest rate to seven per cent (7%) per annum, and to change the allocations of gross revenue to provide for a higher inter- est rate; now therefore, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF CARMEL, INDIANA: Section 10. That Section 4 of said,Ordinance No. A-IS be amended to read as follows: .Sec. 4. The income and _..!&fL 'A'" :1.2~, revenues of the existing waterworks, together with the income and revenue of all extensions, additions and improvements thereto and replacements thereof made pursuant to this ordi- nance, or subsequently, shall be set aside into a separate and special fund to be used and applied in the maintenance and operation thereof, in establishing a depreciation account, and payment of the now outstanding revenue bonds and the re- venue bonds authorized by this ordinance and the interest thereon. The proportion of the gross revenues of said water- works shall be paid into the several accounts of said special fund, heretofore established by Ordinance A-a , 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 shall be used to pay the necessary cost of the reasonable and proper operation and maintenance of the waterworks, in- cluding any taxes required to be paid. The sum so set aside for operation and maintenance shall be applied exclusively 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 operating the waterworks during the remainder of the calendar, operating or fiscal year then current and the cost of maintaining and operating the water- works 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. Five per cent (5%) of the gross revenues of said waterworks shall be paid into the - 2 - . 126 .. :124 _.._"__ ,._ - .,&t: "Depreciation Account," and shall be expended in making good depreciation in the waterworks, or in new construction, ex- tensions or additions to the property of the system. Any accumulation in 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 Deprecia- tion Account. Said account shall not be used for any pur- pose other than as herein provided. (c) Bond and Interest Redemption ACcount. Sixty-one per cent (61%) of the gross revenues of the waterworks shall, as such revenues are received, be set apart and paid into the special account identified as the "Bond and Interest Re- demption Account." The funds in said account shall be used solely for the purpose of (1) paying the interest on and principal of the Waterworks Revenue Bonds of 1965 issued pur- suant to Ordinance No. A-B, in accordance with the terms there- of, and (2) paying the interest on and principal of the bonds issued pursuant to the provisions of this ordinance in accord- ance with the terms hereof, and any bonds hereafter issued ranking on a parity therewith, to the extent 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 during the then current calen- dar,operating or fiscal year, together with the amount of in- terest 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 - 3 - ......_~~ 'AGII 1.~~.. 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 purchase or redemption of outstanding bonds at a price not exceeding the then appli- cable redemption price specified in the ordinance authoriz- ing the issuance of said bonds. No further payments need be made into the Bond and Interest Redemption Account when the amount contained therein 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 several accounts shall be de- posited in lawful depositories of the Town, and shall be continuously held and secured or invested as provided by the laws of Indiana relating to the depositing, securing, hold- ing and investing of public funds. In no event shall any of the revenues of said waterworks be transferred or used for any purposes not authorized by this ordinance so long as any of the bonds issued pursuant to the provisions of this ordi- nance shall be outstanding. Section 2. That Section 5 of said Ordinance No. A-18 be amended to read as follows: 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, 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 spe- cial Bond and Interest Redemption Account hereinabove re- ferred to, subject to the prior servicing of the outstanding "waterworks Revenue Bonds of 1965," hereinbefore referred to, - 4 - 126 126 .....___ '4_ . ,?" 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 exceeding seven per cent (7%) per annum, the exact rate or rates to be 1/' determined by bidding, which interest shall be payable semi- annually on May 1 and November 1 in each year, beginning on November I, 1971, and shall be evidenced by coupons 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 Indianap- olis,. 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 November I, 1982, and thereafter, shall be redeemable at the option of the Town, in whole or in part, on May I, 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 I, 1986; - 5 - 126 -..--...:.. ..- 127 d,._ 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 (1) time at least thirty (30) days prior to the date fixed for redemption 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 cir- culating in the Town of Carmel, Indiana, and in a newspaper or financial journal of general circulation published in the City of Indianapolis, Indiana. If any of the bonds so to be redeemed are registered, such notice shall also be mailed to the address of the. registered holder as shciwnon. the.cregis- tration records of.the.Town. The.notice shall specify the" date and place of redemption and the numbers of the bonds called for redemption. The place of redemption may be the place of payment named in the bonds, or otherwise as deter- mined by the Town. Interest on the bonds so called for re- demption shall cease on the redemption date fixed in said no- tice, if funds are available at the place of redemption to pay the principal of and premium and interest on the bonds so called for redemption, 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. Section 3. This ordinance shall be in full force and effect from and after its passage. Passed and adopted by the Board of Trustees of the Town of Carmel on the 8th day of June, 1971. - 6 - Attest: ~(~~~4k.' er -Tr 'AI-/ J . easurer A. __ . 126 . _____ ..u.!28 l1FiX'.) 1.,. . . . - o_~ qnJlJ rre<;lrlt'l\.l-t- . . ? . ...0 - ~M Board of Trustees . J9. J Il __,\.1- ~'"", \II. - 7 - Attest: ~.~.. . . ,. ~"'/<J/ . lerl-Treasurer. Board of Trustees - 7-