Construction of Additions and Improvements to the Sewage Works Bonds

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and have been approved by the I . D. E.M. , said approval also constituting the approval of the E.P.A. pursuant to the Grants; and WHEREAS, the plans, specifications and cost estimates have been filed with and approved by the Board of Public Works on October 17, 1988, which on that date authorized the publication of notice of bids for the construction of the Improvements with the award of said bids being subject to the award of the Grants and the issuance of revenue bonds; and WHEREAS, the cost of the Improvements as estimated by the engineers is Twenty-Three Million Two Hundred Seventy-Eight Thousand Seven Hundred Twenty-Five Dollars ($23,278,725) ; and WHEREAS, the Board of Public Works on November 9th, 1988 adopted a resolution recommending to the Common Council of the City of South Bend (the "Common Council") the adoption of a new rate and use ordinance applicable to the sewage works and on November 22, 1988 adopted a resolution recommending to the Common Council the adoption of a bond ordinance ordering the issuance of sewage works revenue bonds in an aggregate principal amount of Nine Million Five Hundred Thousand Dollars ($9 , 500 , 000) to pay for the cost of acquiring and constructing those portions of the Improvements to the Plant not paid for with the proceeds of the Grants pursuant to the provisions of the Act; and WHEREAS, the Common Council finds that there are now outstanding bonds payable out of the revenues of the City's sewage works, designated as "Sewage Works Revenue Bonds, Second Series" dated July 1, 1971 (the "1971 Bonds") issued pursuant to Ordinance No. 5298, adopted on May 25, 1971 (the "1971 Bond Ordinance") . Said 1971 Bonds are presently outstanding in the amount of One Million Two Hundred Five Thousand Dollars ($1,205, 000) maturing annually over a period ending on October 1, 1990 and bearing interest at the per annum rate of 6. 10 percent with respect to the 1971 Bonds maturing on October 1, 1989, and 6.25 percent with respect to the 1971 Bonds maturing on October 1, 1990; WHEREAS, the 1971 Bond Ordinance permits the issuance of additional bonds subordinate and junior in all respects to the 1971 Bonds in respect to the application of the revenues of said sewage works; and WHEREAS , the Common Council hereby finds that to provide funds necessary to pay for the cost of acquiring and constructing those portions of the Improvements to the Plant not paid for with the proceeds of the Grants pursuant to the provisions of the Act, it will be necessary for the City to issue revenue bonds in the amount of Nine Million Five Hundred Thousand Dollars ($9, 500, 000) payable solely from the revenues of the City's sewage works; and -2-