10963-23-Ordinance Authorizing the Acquisition and Construction of Certain Additions and Improvements to the Municipal Waterworks of the City of South Bend

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amount of$8,300,000 authorized by Ordinance No. 10134-11 adopted by the Common Council on November 28, 2011 (the"2012A Ordinance"), now outstanding in the amount of$4,685,000. The Common Council finds that there are also outstanding bonds issued on account of the Waterworks and payable out of the revenues therefrom designated as the"Waterworks Refunding Revenue Bonds of 2016" dated December 27, 2016 (the "2016 Bonds"), originally issued in the amount of$3,300,000 authorized by Ordinance No. 10480-16, adopted by the Common Council on November 14, 2016 (the"2016 Ordinance"), now outstanding in the amount of$1,220,000. The Common Council finds that there are also outstanding bonds issued on account of the Waterworks and payable out of the revenues therefrom designated as the "Amended Waterworks Revenue Bonds of 2009, Series B" dated November 5, 2019 (the"Amended 2009B Bonds"), (the 2009A, 2012A Bonds, the 2016 Bonds, and the Amended 2009B Bonds, together, the "Prior Bonds")originally issued and currently outstanding in the amount of$2,814,257 authorized by the Original 2009 Ordinance as supplemented and amended by Ordinance No. 10659-19 adopted by the Common Council on July 22, 2019 (the "2019 Amending Ordinance" and with the Original 2009 Ordinance, the "Amended 2009 Ordinance") (the 2012A Ordinance, 2016 Ordinance and Amended 2009 Ordinance, collectively, the"Prior Ordinances"). The Prior Bonds constitute a first charge upon the Net Revenues (as hereinafter defined). Other than the Prior Bonds, the City has no outstanding revenue bonds or other pledges of Net Revenues of the Waterworks. The Prior Ordinances provide that the City may authorize and issue additional bonds payable out of the Net Revenues ranking on parity with the Parity Bonds (as hereinafter defined) for the purpose of financing the cost of future additions, extensions and improvements to the works, or to provide for a complete or partial refunding of bonds subject to the provisions of the Prior Ordinances. The conditions precedent to the issuance of additional parity bonds set forth in the Prior Ordinances, as described above, have been satisfied, subject to approval by the IURC. The City desires to authorize the issuance of a bond anticipation note or notes hereunder, if necessary,payable from the proceeds of the revenue bonds authorized herein(the`BANs"), and to authorize the refunding of said BANs, if issued. The Common Council now finds that all conditions precedent to the adoption of an ordinance authorizing the issuance of waterworks revenue bonds on parity with the Prior Bonds and BANs have been complied with in accordance with the applicable provisions of the Act. The City may enter into a Financial Assistance Agreement, Funding Agreement, Grant Agreement,and/or Financial Aid Agreement(substantially in the form of Exhibit B attached hereto and made a part hereof) ("Financial Assistance Agreement") with the Indiana Finance Authority (the "Authority") as part of its drinking water loan program, supplemental drinking water and wastewater assistance program,water infrastructure assistance program and/or water infrastructure grant program, established and existing pursuant to I.C. § 5-1.2-1 through I.C. § 5-1.2-4, I.C. § 5- 1.2-10. I.C. § 5-1.2-11, I.C. § 5-1.2-14 and/or I.C. § 5-1.2-14.5 (collectively,the"IFA Program"), pertaining to the Project and the financing of the Project if any Bonds or BANs are sold to the Authority as part of its IFA Program. The Common Council understands that for the Project to be permitted to be financed under the IFA Program, the Common Council must (a) agree to own, operate and maintain the Waterworks and the Project for the duration of their useful life and (b) represent and warrant to the Authority that the Common Council has no intent to sell, transfer or lease the waterworks or the Project for the duration of their useful life. The City may accept other forms of financial assistance, as and if available, from the IFA Program. NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,AS FOLLOWS: SECTION I. Recitals. The recitals contained in this Ordinance are true and correct and are incorporated in this Ordinance by this reference. SECTION II. Authorization of Project. The City shall proceed with the construction of the Project in accordance with the plans and specifications heretofore prepared and - 2 -