Loading...
HomeMy WebLinkAboutA-44 Amend Sec.5,7,13,16/A-43 6595, !f01:l~"~ 268 jJ.t./{ ORDINANCE NO.' An Ordinance to amend Secs.' 5, 7, 13 and 16 of, Ordinance No. A-43, entitled "An Ordinance con- cerning the construction of extensions, 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 all matters connected therewith." WHEREAS, the Board of Trustees has heretofore, on March 26, 1974, adopted Ordinance No. A-43, which ordinance, among other things, authorized the issuance of bonds of the Town designated "Waterworks Revenue Improvementl.'Bonds of 1974," in the amount of Five Hundred Forty Thousand Dollars ($540,000), and the public sale of the same bearing interest at a rate or rates not exceeding six and one-half per cent (6~1/2%) per annum (the exact rate or rates to be determined by bidding) and WHEREAS, the Board now finds that there will be addi- tional funds on hand to apply on the project and that the bond issue can be reduced to Five Hundred Five Thousand Dollars ($505,000); but that due to deterioration of the municipal bond market since such time, the marketability of said bonds at such maximum interest rate is questionable; and WHEREAS, the Board finds that said ordinance should be amended to reduce the bond issue and to increase the maximum interest rate authorized for such bonds to seven and one-fourth per cent (7-1/4%) per annum; and WHEREAS, the Board finds that other amendments are de- sirable to possibly permit advance refunding of said bonds; now therefore, CARMEL, INDIANA: BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF This Instrument Recorded, ~~ 3/ 197'1 JUNE M. HEDGES, RECORDER:HAM TON COUNTY, IND. 1mn'R' 143 l>/fGE 269 Section 1. That Sec. 5 of Ordinance No. A-43, adopted March 26, 1974 ,be and' the' same'is' "he:teby."cam",rided 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 Ordi- nance and Ordinance No. A-43 and said Act, which bonds shall be payable only out of the special Bond and Inter- est Redemption Account hereinabove referred to, subject to the prior servicing.of the outstanding' "waterworks Revenue Bonds of 1965", hereinabove referred to, in ac- cordance with the terms thereof. The bonds authorized by this Ordinance shall be designated as "Waterworks Revenue Improvement Bonds of 1974" and shall' be in a principal amount not exceeding Five Hundred Five Thousand Dollars ($505,000) numbered consecutively from One (1) up to One Hundred One (191) inclusive, 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 and one-fourth per cent (7-1/4%) per annum (the exact rate or rates to be determined by bidding) which interest shall be payable on November 1, 1974, and each May 1st and November 1st thereafter and such interest 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 - 2 - ~..llLPJrnc:~270 of the holder, at the principal office of Merchants National Bank & Trust Company of Indianapolis in the City of Indianapolis, Indiana, in lawful money of the united States of America, and said bonds shall mature serially on November 1st in the years and amounts as follows: Years 'Amounts Years Amounts , -,'1975 1976 1977 1978 1979 1980 1981 1982 1983 $15,000 15,000 20,000 20,000 20,000 20,000 20,000 20,000 25,000 1984 1985 1986 1987 1988 1989 1990 1991 1992 $30,000 30,000 30,000 30,000 35,000 40,000 40,000 50,000 45,000 The bonds of this issue maturing on November 1, 1985, and thereafter shall be redeemable at the option of the Town, in whole or in part on May 1, 1985, or any interest payment date thereafter, in their inverse numerical order, at face value, together with the following premiums: 3% if redeemed on May 1, 1985, or thereafter on or before November 1, 1989; 1% if redeemed on May 1, 1990, or thereafter prior to maturity, plus in each case accrued interest to the date fixed for redemption. Notice of such redemption shall be published one time at least thirty (30) days prior to the date fixed for redemption 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 inthe Town of Carmel, Indiana, and in a newspaper or financial journal of general circu- lation published in the City of Indianapolis, Indiana. - 3 - 13-crO"R.-14LpJ<:GE 271 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 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 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 redemption shall cease on the redemption date fixed in said notice, if funds are available at the place of re- demption to pay the principal of and premium and inter- est 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 redemp- tion price, the bonds so called for redemption; shall be surrendered for cancellation, together with the unmatured interest coupons appurtenant thereto. Section 2. That Sec. 7 of Ordinance No. A-43, adopted March 26, 1974, be and the same is hereby amended to read as ..""" follows: Sec. 7. The form and te~orof said bonds the inter- est coupons to be attached thereto in registering en- dorsement thereon shall be substantially as follows: to- wit: UNITED STATES OF AMERICA State of Indiana County of Hamilton $5,000 No. TOWN OF CARMEL WATERWORKS REVENUE IMPROVEMENT BOND OF 1974 - 4 - !to'OK~PJfGl! 2'72 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 holder hereof, solely out of the special revenue fund hereinafter re- ferred 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 pay- ment provided therefor), and to pay interest thereon from the date hereof until .the principal is paid at the rate of . . per cent ( I) per annum payable semi-annually on the first days of May and November in each year, beginning on November I, 1974, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest 0 f 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 of- fice of Merchants National Bank & Trust Company of Indianapolis, in the City of Indianapolis, Indiana. This bond is one of an authorized issue of one : hundred one (101) bonds of the Town of Carmel, of like date, denomination, tenor. and effect, except as to numbering, dates of maturity and rates of interest, in the total amount of Five Hundred Five Thousand Dollars ($505,000) numbered consecutively from 1 to 101 inclu- sive, issued for the purpose of providing funds to pay the cost of construction of extensions, additions and improvements to the municipally owned waterworks of said Town, pursuant to an ordinance passed by the Board of Trustees of said Town in March, 1974, entitled "An Ordinance concerning the construction of extensions, additions and improvements to the municipal waterworks of the Town of Carmel, authorizing the issuance of addi- tional revenue bonds to provide for the cost thereof, and matters connected therewith", as amended, and in strict compliance with the provisions of the governing statutes, particularly Title 19 Article 3 Chapter 17 of The Indiana Code of 1971, and all laws amendatory there- of.or supplemental thereto. The principal and interest of this bond and all other bonds of said issue, and any bonds ranking 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 revenues of the municipally owned waterworks of the Town as the same now exist or may hereafter be improved or extended, which percentage of such income and revenues is to be deposited in a special fund designated as the "Bond and Interest Redemption Account", heretofore duly created; all subject, however, to the proper payment in accordance with the terms thereof of the interest on and principal of certain no- outstanding Waterworks Revenue Bonds of 1965, bearing - 5- 13-CiOK~PAGE 273 interest at the rate of three and three-fourths per cent (3-3/4%) per annum or three and seven-eights per cent (3-7/8%) per annum, depending ppon the maturities issued under date of October 1, 1965, now outstanding in the principal amount of Two Hundred Eighty-five Thousand Dollars ($285,000) and maturing on November 1, in the years 1974 to 200p,inclusive, which bonds con- stitute a first charge upon the revenues allocated to said Bond and Interest Redemption Account. The prin- cipal of and interest on this bond and all other bonds of said issue shall rank on a parity with certain bonds designated Waterworks Revenue Improvement and Refunding Bonds, presently outstanding in the amount of One Million Fifty-five Thousand Dollars ($1,055,000), bearing interest at the rates of six and three-eights per cent (6-3/8%) or six and one-half per cent (6-1/2%~ depending upon the maturities, and maturing on November 1, in the years 1974 to 1996, inclusive. 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 constitu- tion of the State of Indiana. The bonds of this issue maturing on November 1, 1985, and thereafter shall be redeemable at the option of the Town on May 1, 1985, or any interest payment date thereafter in whole or in part, in inverse numerical order, at face value, together with the following pre- miums: 3% if redeemed on May 1, 1985, or thereafter on or before November 1, 1989; 1% if redeemed on May 1, 1990, or thereafter prior to maturity; plus, in each case, accrued interest tofue date fixed for redemption; provided notice of said redemption 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 publication in a newspaper of general circulation printed and published in Hamilton County and circulated in the Town of Carmel, Indiana, in a newspaper of financial journal published in the City of Indiana- polis, Indiana, and a notice shall be sent by mail to the holders of such bonds as are then registered. Inter- est 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 where presented. The bonds so redeemed prior to maturity shall be surrendered for cancellation together with unmatured interest 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 waterworks which will be sufficient to pay all - 6 - . BOOK~PAGE 274 costs of operation and maintenance 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 pur- suant 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 remedies pro- vided 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 thereon. 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 hereto shall at all times pass by delivery. It is hereby cer- tified and recited that all acts, conditions 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 Hamil- ton 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-Treasur- er, and the interest coupons hereto attached to be exe- cuted by placing thereon the facsimile signature of said Clerk-Treasurer, all as of the first day of 1974. TOWN OF CARMEJ" By President, Board of Trustees Attest: Clerk-Treasurer - 7 - aOOK 143 PAGE 275 (INTEREST COUPON) Coupon No. $ On 1, 19 ,the Town of Carmel, Indiana, will pay to bearer (unless the bonds ~o 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 Mer- chants National Bank & Trust Company of Indianapolis, in the City of Indianapolis, Indiana, out of its water- works Bond and Interest Redemption Account, Dollars ($ in lawful money of the United States of America, being the interest then due on its Waterworks Revenue Improve- ment Bond of 1974 dated , 1974, No. TOWN OF CARMEL By 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. lIn"."Whose",iN:ame Date of Registry Registered Clerk-Treasurer Section 3. That Sec. 13 of Ordinance No. A-43, adopted March 26, 1974, be and the same is hereby a ended to read as follows: Sec. 13. The Town reserves the light to authorize and issue additional bonds, payable Ojt of the revenues of the waterworks, of equal priority ith the bonds auth- orized by this ordinance, for the pur ose of refunding outstanding bonds or of financing the cost of future addi- tions, extensions and improvements to the waterworks - 8 - BOOK :143 pAGE 276 subject to the following conditions:' (a) The interest on and principal of all bonds pay- 'able from the revenues of the waterworks shall have been paid to date in accordance with the terms thereof, and all required ,payments into the Bond and Interest Redemption Account have been made in accordance with the provisions of the ordinances authorizing any waterworks bonds then outstanding and the pro- visions of this Ordinance. (b) (1) The amount of gross revenues of the waterworks allocated by Section 4. (c) of this ordinance to and deposited in the Bond and Interest Redemption Account in the calendar 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 suffi- ciently so that said increased proportion applied to the pre- vious calendar year's gross revenues would have produced 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 adillitional 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 - 9 - mm~~~~E277 Bond and Interest Redemption Account increased sufficiently so 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 Redemp- tion Account for said year would have equaled not less than one hundred twenty-five per cent (125%) of the maximum annual inter- est and principal requirements of the then outstanding bonds and the additional equal priority bonds proposed to be issued. If the bonds being issued are to refund outstanding bonds, the parity test in this subsection shall be applied to either the maximum annual interest and principal requirements of either the refunding bonds or the bonds to be refunded, whichever is larger, but not to both. For purposes of this subsection, the records of the waterworks shall be analyzed and all showings shall be prepared 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 1st and November 1st and the principal shall be payable annually on November 1st 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 provided by law. Section 4. That Sec. 16 of Ordinance No. A-43, adopted March 26, 1974, be and the same is hereby amended to read as follows: Sec. 16. If, when the bonds secured hereby shall have become due and payable in accordance with their - 10 - tRfOl( 143 MGE 278 terms, or shall have been duly called for redemption, or irrevocable instructions so calling the bonds for redemption shall have been given by the Town, and the whole amount of the principal and the interest and the premium, if any, so due and payable upon all of the bonds and coupons then outstanding shall be paid, or sufficient moneys or direct obligations of or obligations unconditionally guaranteed by the united States Government, or certificates of deposits secured to the full amount thereof by direct obligations of or obligations uncon- ditionally guaranteed by the united States Government, the principal of and the interest on which when due will provide sufficient moneys, shall be held in Trust for such purpose under the provisions of this Ordinance, and provision shall also be made for paying all other sums payable hereunder by the Town, then and in that case the right, title and interest hereunder shall thereupon cease, determine and become void. Section 5. 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 This Instrument Recorded, ~ 3/ 197'/ JUNE M. HEDGES. RECORDER. HA ILTON COUf>/TY, IND. of Carmel on the ~!? day of , 1974 ~E/~~t~c~~~~ ~CO~D JUL 311974 BOOK PAGE r7.. ,. I ,~ .~-v::. j ___1 .>'R'"ECORDER HAMilTON COUNTY, iN~iA:;:"--~ - 11 -