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HomeMy WebLinkAboutD-2080-12 Technical Corrections Ord. D-2070-11ORDINANCE D- 2080 -12 Sponsor: Councilor Luci Snyder AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA MAKING TECHNICAL CORRECTIONS TO ORDINANCE NO. D-2070-11 WHEREAS, the City of Carmel, Indiana (the "City has heretofore established, constructed and financed a municipal waterworks and now owns and operates said waterworks pursuant to I.C. 8 -.1.5, as amended, and other applicable laws; and WHEREAS, pursuant to Ordinance No. D- 2070 -11, adopted by the Common Council of the City (the "Council on December 19, 2011 (the "Original Ordinance the Council authorized the issuance of the City of Carmel, Indiana Junior Waterworks Revenue Bonds of 2011 (the "Bonds and WHEREAS, the Council now desires to make certain technical corrections to the Original Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL, THAT: Section 1. Prior Bonds. The fifth recital of the Original Ordinance is hereby amended to read as follows; "WHEREAS, the Council finds that there are now outstanding bonds of the City's waterworks and payable out of the revenues therefrom designated (a) "City of Carmel, Indiana Waterworks Revenue Bonds of 2002, Series A," dated April 19, 2002, now outstanding in the aggregate principal amount of $3,845,000 and maturing annually over a period ending May 1, 2022 (the "2002 Series A Bonds which were authorized by and issued pursuant to Ordinance No. D- 1550 -01, adopted by the Council on December 17, 2001 (the "2002A Bond Ordinance (b) "City of Carmel, Indiana Waterworks Revenue Bonds of 2002, Series B," dated December 3, 2002, now outstanding in the aggregate principal amount of $4,615,000 and maturing annually over a period ending May 1, 2023 (the "2002 Series B Bonds which were authorized by and issued pursuant to Ordinance No. D- 1567 -02, adopted by the Council on May 20, 2002 (the "2002B Bond Ordinance and (c) "City of Carmel, Indiana Waterworks Refunding Revenue Bonds of 2003, Series A," dated April 2, 2003, now outstanding in the aggregate principal amount of $945,000 and maturing annually over a period ending May 1, 2013 (the "2003 Bonds which were authorized by and issued pursuant to Ordinance No. D- 1622 -03, adopted by the Council on March 17, 2003 (the "2003 Bond Ordinance (the 2002 Series A Bonds, the 2002 Series B Bonds and the 2003 Bonds collectively referred to as the "Prior Bonds," and the 2002A Bond Ordinance, the 2002B Bond Ordinance and the 2003 Bond Ordinance collectively referred to as the "Prior Bond Ordinances and" Section 2. Purpose of Bonds, The twelfth recital is hereby amended to read as follows: "WHEREAS, the Council finds that it is advisable to issue revenue bonds in an amount not to exceed Twenty -Two Million Five Hundred Thousand Dollars ($22,500,000), and to use the proceeds (i) together with funds on hand to refund the Prior Bonds and pay all of the costs related to the Refunding, (ii) to pay all or a portion of the costs of the Project, (iii) to fund a debt service reserve account, and (iv) to pay all costs related to the issuance of the bonds hereunder; and" Section 3. Designation of Bonds. In order to reflect the year of their issuance, the designation of the Bonds shall be changed to the "City of Carmel, Indiana Junior Waterworks Revenue Bonds of 2012" (the "2012 Bonds and any reference in the Original Ordinance to the "2011 Bonds" shall be changed to the "2012 Bonds." Section 4. Authorization for Preparation and Sale of Bonds. Section 10(b) of the Original Ordinance is hereby amended to read as follows: "(b) The Fiscal Officer is hereby authorized to appoint a financial institution to serve as escrow trustee (the "Escrow Trustee for the 2002 Series A Bonds, the 2002 Series B Bonds and the 2003 Bonds in accordance with the terms of the Escrow Agreement, to be executed between the City and the Escrow Trustee (the "Escrow Agreement The Executive and the Fiscal Officer each are hereby authorized and directed to enter into the Escrow Agreement with the Escrow Trustee in form and substance satisfactory to such officer and consistent with the parameters of this resolution. The execution and delivery by the City of the Escrow Agreement, and the performance by the City of its obligations thereunder, are hereby approved." Section 5. to read as follows: Use of Proceeds. Section 11 of the Original Ordinance is hereby amended "Use of Proceeds. (a) Any accrued interest received at the time of delivery of the 2012 Bonds or BANs (and, if deemed by the Executive or the Fiscal Officer to be in excess of Project and Refunding needs, any premium), shall be deposited in the Junior Principal and Interest Account of the Sinking Fund (as hereafter defined) and applied to payments on the 2012 Bonds and any BANs on the first interest payment date. (b) A portion of the proceeds from the sale of the 2012 Bonds shall be deposited in the Junior Debt Service Reserve Account of the Sinking Fund (as hereafter defined) in an amount, which together with transfers from the Revenue Fund shall be sufficient to build the balance of the Junior Debt Service Reserve Account to the Reserve Requirement (as hereafter defined) as described in Section 14(b). (c) The remaining proceeds allocated to the Refunding from the sale of the 2012 Bonds, together with cash on hand as set forth in the Escrow Agreement, shall be used to refund and legally defease the 2002 Series A Bonds, the 2002 Series B Bonds and the 2003 Bonds, all as set forth in the Escrow Agreement. The Fiscal Officer shall obtain a verification of an independent certified public accountant as to the sufficiency of the 2 funds deposited in the trust account under the Escrow Agreement to accomplish the Refunding. Any balance remaining in the trust account under the Escrow Agreement after the completion of the Refunding which is not required to meet unpaid obligations incurred in connection therewith and on account of the sale and issuance of the 2012 Bonds shall be paid into the Junior Principal and Interest Account of the Sinking Fund and used solely for the purposes of such Account, in accordance with I.C. 5 -1 -13, as amended or as otherwise permitted by law. (d) The remaining proceeds allocable to the Project from the sale of the 2012 Bonds and any BANs shall be deposited in a fund of the utility hereby created and designated as "City of Carmel, Indiana Water Bond Project Fund" (the "Project Fund The Clerk- Treasurer shall establish separate accounts within the Project Fund for each separate issuance of BANs or 2012 Bonds, provided that such proceeds may be expended for any part of the Project. The proceeds deposited in the Project Fund, together with all investment earnings thereon, shall be expended only for the purpose of paying the costs of the Project, refunding the BANs if issued and the costs of selling and issuing the 2012 Bonds and any BANs, including the premium for any bond insurance obtained for the 2012 Bonds. (e) The City hereby declares that it reasonably expects to reimburse the City's advances to the Project from proceeds of any BANs or the 2012 Bonds, as anticipated by this Ordinance, and such declaration shall be deemed one within the meaning of the Reimbursement Regulations. f(f) Any balance remaining in the Project Fund after the completion of the Project which is not required to meet unpaid obligations incurred in connection therewith and on account of the sale and issuance of the 2012 Bonds shall be paid into the Junior Principal and Interest Account of the Sinking Fund and used solely for the purposes of such Account or used for the same purpose or type of project for which the 2012 Bonds were originally issued, all in accordance with I.C. 5 -1 -13, as amended or as otherwise permitted by law." Section 6. Sinking Fund. The first paragraph of Section 14 of the Original Ordinance is hereby amended to read as follows: "Sinking Fund. There is hereby continued a fund of the utility designated as the Sinking Fund (the "Sinking Fund to be used for the payment of the principal of and interest on 2012 Bonds and any hereafter issued bonds ranking on a parity therewith which by their terms are payable from the Net Revenues, and the payment of any fiscal agency charges in connection with such payment, provided however, the Junior Principal and Interest Account and the Junior Debt Service Reserve Account heretofore created and existing pursuant to the Outstanding Bonds Ordinances shall be renamed the "2008 Principal and Interest Account" and the "2008 Debt Service Reserve Account" and shall be used and withdrawn solely for the purpose of making payments of the principal of and interest on the 2008 Bonds, to which the 2012 Bonds and any hereafter issued bonds ranking on a parity therewith are for all purposes junior and subordinate. The Sinking Fund is further and additionally divided into two additional accounts designated as the 3 Junior Principal and Interest Account and the Junior Debt Service Reserve Account, which are pledged for the purposes set forth below." Section 7. Additional Obligations. Section 20(c) of the Original Ordinance is hereby amended to read as follows: "(c) The Net Revenues in the fiscal year immediately preceding the issuance of any such bonds ranking on a parity with the 2012 Bonds shall be not less than one hundred twenty five percent (125 of the average annual principal and interest requirements of the then outstanding 2012 Bonds and any hereafter issued bonds ranking on a parity with the 2012 Bonds including the proposed additional bonds to be issued and to rank on a parity with the 2012 Bonds "Proposed Parity Bonds for each respective year during the period commencing as of the issuance of the Proposed Parity Bonds and ending as the final maturity of the then outstanding 2012 Bonds; or, prior to the issuance of the additional Proposed Parity Bonds, the rates and charges shall be increased sufficiently so that said increased rates and charges applied to the previous fiscal year's operations would have produced Net Revenues for said year equal to not less than one hundred twenty five percent (125 of the average annual principal and interest requirements for each respective year during the period commencing as of the issuance of the Proposed Parity Bonds and ending as the final maturity of the then outstanding 2012 Bonds. For purposes of this subsection, the records of the works shall be analyzed and all showings shall be prepared by a certified public accountant employed by the City for that purpose." Section 8. No Other Changes. Except as set forth in this Ordinance, all other provisions of the Original Ordinance remain in full force and effect. Section 9. Effective Date. This Ordinance shall be in full force and effect from and after its passage and execution by the Mayor in accordance with the laws of the State of Indiana. 4 ADOPTED by the Common Council of the City of Carmel, Indiana thisoL day of .3 n‘Aa 2012, by a vote of "1 ayes and 0 nays. Presiding Of icer d L. harp, ent Pro rp, o Tempore onald E. arter ATTEST: COMMON COUNCIL FOR THE CITY OF CARMEL Diana L. Cordray, IAMC, Clerk re. surer 5 6 Carol Schleif W. Eric Seideristicker ATTEST: Presented by me to the Mayor of the City of Carmel, Indiana this c=)`( d ay of 2012, at 1 0 0 Z A .M. Approved by me, Mayor of the City of Carmel, Indiana, this 30 day of 2012, at 9: 1 s A .M. Diana L. Cordray, IAMC, Clerk easurer Prepared by: Richard C. Starkey Barnes Thornburg LLP 11 South Meridian Street Indianapolis, IN 46204 INDS01 AWILLIAMS 13151Q9v1 6 Diana L. Cordray, IAMC, Clerk- easurer mes Brainard, Mayor