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HomeMy WebLinkAboutAmend Section 3, 6 and 12 Ordinance No. 4321-60 Concerning acquisition and construction of extensions and additions to the WaterworksORDINANCE No. 4346 - - -60 Passed by the Common Council of the City of South Bend, P] Acting Presented by me to thdMayor of the City of South Bend, NOVEMBER 3, 1936-0— Clerk of Common Council Clerk Approved and signed by me NOVEMBER 3, �93Z 60 AMAk-7 ORDINANCE NO. Y346-LO An Ordinance to amend Sections 3, 6 and 12 of Ordi- nance No. 4321 -60, entitled "An Ordinance concerning the acquisition and construction of extensions and addi- tions to the waterworks owned and operated by the City of South Bend, Indiana, authorizing the issuance of revenue bonds to provide for the cost thereof, and matters connected therewith" WHEREAS, the Common Council of the City of South Bend has heretofore on May 23, 1960, adopted Ordinance No. 4321 -60 author- izing the issuance of waterworks revenue bonds for the purpose of pro- curing funds to be applied on the cost of acquisition and installation of extensions and additions to the waterworks owned and operated by the City of South Bend; and WHEREAS, the Common Council now finds that said ordinance should be amended to change the percentage allocations of gross reve- nues to the Operation and Maintenance Account, Depreciation Account, and Bond and Interest Redemption Account provided in said ordinance and to increase the amount of hydrant rental provided in said ordinance; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Section 1. That Section 3 of Ordinance No. 4321 -60, entitled "An Ordinance concerning the acquisition and construction of extensions and additions to the waterworks owned and operated by the City of South Bend, Indiana, authorizing the issuance of revenue bonds to provide for the cost thereof, and matters connected therewith," adopted on May 23, 1960, be and the same is hereby amended to read as follows: Section 3. Beginning as of the date of issuance of the bonds herein authorized, the income and revenues of the existing waterworks together with the income of all extensions, additions, improvements thereto and replacements thereof made pursuant to this ordinance, or subsequently, shall be set aside into a separate and special fund to be used and applied in the main- tenance and operation thereof, in establishing a depreciation account, and payment of the principal of and interest on all bonds which by their terms are payable from the revenues of the waterworks. The propor- tion of the gross revenues of said waterworks that shall be paid into the several accounts of said special fund, as provided by said Act, is here- by fixed and determined as follows: (a) Operation and Maintenance Account. Sixty -nine per cent (69%) of the gross revenues of said waterworks shall be set aside into the Operation and Maintenance Account and shall be used to pay the nec- essary cost of the reasonable and proper operation and maintenance of the waterworks, including 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 be 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 waterworks during the calendar, operating or fiscal year then next en- suing. Any excess over such surplus may be transferred to either the Depreciation Account or the Bond and Interest Redemption Account. (b) Depreciation Account. Eleven and five - tenths per cent -Z - (11. 5%) of the gross revenues of said waterworks shall be set aside into the Depreciation Account and shall be expended in making good deprecia- tion in the waterworks, or in new construction, extensions or additions to the property of the waterworks. Any accumulations in said Deprecia- tion Account not required for immediate use may be invested in direct obligations of the United States Government, in the manner and to the extent permitted by law, and if so invested the income from such invest- ment shall accrue to the Depreciation Account. Said account shall not be used for any purpose other than as herein provided. (c) Bond and Interest Redemption Account. Nineteen and five - tenths per cent (19.5 %) of the gross revenues of the waterworks shall, as such revenues are received, be set apart and paid into a special ac- count to be identified as the "Bond and Interest Redemption Account. " The funds in said account shall be used solely for the purpose of paying the interest and principal of the bonds issued pursuant to the provisions of this ordinance in accordance with the terms hereof and any bonds ranking on a parity therewith, to the extent necessary for that purpose. If and when a surplus shall be created in said Bond and Interest Redemp- tion Account which shall be in excess of the interest on and principal of all the bonds, plus ten per cent (10%), which are payable during the remainder of the then current calendar, operating or fiscal year, to- gether with the amount of interest on and principal of all the bonds which will become due and payable during the calendar, operating or fiscal year then next ensuing, then any excess over such surplus may be transferred either to the Operation and Maintenance Account or to the Depreciation Account. Any such excess over such surplus may also - 3 - be used in the purchase of outstanding bonds, or redemption of any bonds redeemable prior to maturity, at a price not exceeding the then applicable redemption price, if any. No further payments need be made into the Bond and Interest Redemption Account when the funds therein equal or exceed the amount of the principal of all the bonds then outstanding and interest thereon to the maturity dates thereof. All of the funds of said several accounts shall be deposited in lawful depositories of the City and shall be continuously held and se- cured or invested as provided by the laws relating to the depositing, securing, and holding or investing of public funds, including particu- larly Chapter 9 of the Acts of 1945. In no event shall any of the reve- nues of said waterworks be transferred or used for any purpose not au- thorized by this ordinance so long as any of the bonds issued pursuant to the provisions of this ordinance shall be outstanding. The funds from the operation of the waterworks on hand on the date of issuance of the bonds herein authorized may be applied on the costs of additions and ex- tensions to the waterworks in the event such costs shall exceed the amount now estimated, but if not so used shall be set aside in and cred- ited to the Operation and Maintenance Account or the Depreciation Ac- count, as determined by the Board of Public Works and Safety. ,Sec. 2. That Section 6 of said Ordinance No. 4321 -60 be and the same is hereby amended to read as follows: Section 6. The form and tenor of said bonds and the interest coupons to be attached thereto, together with the form of registry endorsement thereon, shall be sub- stantially as follows, all blanks to be filled in properly prior to deliv- ery thereof: UNITED STATES OF AMERICA State of Indiana County of St. Joseph No. $1,000.00 CITY OF SOUTH BEND WATERWORKS REVENUE BOND OF 1960 The City of South Bend, in St. Joseph County, State of Indiana, for value received, hereby promises to pay to bearer, or if this bond be registered then to the registered holder here- of, solely out of the special revenue fund hereinafter referred to, the principal amount of ONE THOUSAND DOLLARS on the first day of September, 19 , and to pay interest there- on from the date hereof until the principal is paid, at the rate of per cent (_%) per annum, payable semi- annually on the first days of March and September in each year, beginning on March 1, 1961, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest of this bond are payable in law- ful money of the United States of America at the St. Joseph Bank and Trust Company, South Bend, Indiana, in the City of South Bend, Indiana, or at the option of the holder at the City National Bank and Trust Company of Chicago, in the City of Chicago, Illi- nois. This bond is one of an authorized issue of one thousand nine hundred forty (1, 940) bonds of the City of South Bend, of like date, denomination, tenor and effect, except as to rates of interest and dates of maturity, in the total amount of One Million Nine Hundred Forty Thousand Dollars ($1,940,000.00), numbered consecutively from 1 to 1940 inclusive, issued for the purpose of providing funds to pay the cost of extensions and additions to the municipally owned waterworks of said City pursuant to an ordinance passed by the Common Council of said City on the 23rd day of May, 1960, en- titled "An Ordinance concerning the acquisition and construction of extensions and additions to the waterworks owned and operated by the City of South Bend, Indiana, authorizing the issuance of revenue bonds to provide for the cost thereof, and matters con- nected therewith," as amended by an ordinance passed by the Common Council of said City on the day of 1960, and in strict compliance with the provisions of the governing statutes, particularly Chapter 155 of the Acts of the General Assem- bly of the State of Indiana for the year 1929, and all acts amendatory thereof 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 - 5 - equally and ratably secured by and constitute a first charge upon nineteen and five- tenths per cent (19. 5%) of the gross in- come and revenues of said waterworks as the same now exist or may hereafter be improved and extended, which percentage of such income and revenues is to be deposited in a special fund to be known as the "Bond and Interest Redemption Account" which has been duly created by said ordinance. The City 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 in- debtedness of the City within the provisions and limitations of the constitution of the State of Indiana. The City covenants that it will, to the fullest extent permit- ted 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 costs of operation and maintenance of said waterworks, to provide a proper and adequate depreciation ac- count, and to create and maintain the sinking fund required for the payment of all revenue bonds which by their terms are pay- able 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 pursuant to which this bond is issued. In the event the City 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 provided 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 hereon. 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 law merchant. This bond may be regis- tered at the office of the City Controller as to principal only, 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. If any bond or interest coupon shall not be presented for payment on the date fixed therefor, the City may deposit in trust with St. Joseph Bank and Trust Company, South Bend, Indiana, an amount sufficient to pay such bond or interest coupon, as the case may be, and thereafter the holder shall look only to the funds so deposited in trust with said bank for payment and neither the City nor its waterworks shall have any further obligation or liability in respect thereto. It is hereby certified 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 City of South Bend, in St. Joseph County, State of Indiana, has caused this bond to be signed in its corporate name by its duly elected, qualified and acting Mayor, countersigned by its City Controller, its corpo- rate seal to be hereunto affixed and attested by its duly elected, qualified and acting City Clerk, and the interest coupons here- to attached to be executed by placing thereon the facsimile sig- natures of said Mayor and City Controller, all as of the first day of , 1960. CITY OF SOUTH BEND By Mayor Countersigned: City Controller Attest: City Clerk (Interest Coupon) Coupon No. On , 19 , the City of South Bend, Indiana, will pay to the bearer at the St. Joseph Bank and Trust Company, South Bend, Indiana, in said City, or at the option of the holder at the City National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, out of its waterworks Bond and Interest Redemption Account, Dollars in lawful money of the United States of America, being the interest then due on its Waterworks Revenue Bond of 1960, dated 1, 1960, No. CITY OF SOUTH BEND By (Facsimile) Mayor (Facsimile) City Controller REGISTRATION ENDORSEMENT This bond can be registered only at the office of the City Controller in the City of South Bend, Indiana. No writing here- on except by the City Controller. Date of Registry In Whose Name Registered City Controller -7- Sec. 3. That Section 12 of said Ordinance No. 4321 -60 be and the same is hereby amended to read as follows: Section 12. The City shall, to the fullest extent permitted by law, establish, maintain and collect reasonable and just rates and charges for the services and facilities afforded by said waterworks which will provide revenues at least sufficient to pay the reasonable and proper cost of the mainte- nance and operation of the waterworks, to provide a proper and rea- sonable depreciation account, and to pay the principal of and interest on all bonds which by their terms are payable from the revenues of the waterworks, as the same become due, and provide, each year, a sur- plus or margin of not less than ten per cent (10%) of the principal and interest due in such year. So long as any of the bonds herein authorized are outstanding, none of the facilities and services afforded by said waterworks shall be furnished without a reasonable and just charge be- ing made therefor. The reasonable value of any facility or service ren- dered to the City, or to any department, agency or instrumentality there- of, including the use of water. for hydrants for fire protection or for any other purpose, shall be charged against the City and shall be paid for as the charges accrue, and the revenue so received shall be deemed to be revenue derived from the operation of the waterworks and shall be used and accounted for in the same manner as other revenues derived from the operation of the waterworks. The City covenants to the fullest extent permitted by law, and subject to the approval of the Public Serv- ice Commission, that it will cause to be maintained at least two thousand five hundred seventy -eight (2, 578) fire hydrants and will pay to its water- works department an annual rental of not less than Forty -four Dollars ($44. 00) per hydrant, which the Council now finds is a reasonable and proper charge therefor. Upon completion of the construction of the work, said minimum number of hydrants shall be maintained, and said rental will be paid by the City to its waterworks department so long as any of the bonds herein authorized are outstanding. Sec. 4. This ordinance shall be in full force and effect from and after its passage. Passed and adopted by the Common Council of the City of South Bend on the 2nd day of Attest: �� p// "s . A"O- Q 1. /Lt-et.GV & City Clerk November , 1960. J Presiding Officer Presented by me to the Mayor of the City of South Bend on the 3rd day of November , 1960, at the hour of 9:45 A . M. 1,-&-e, City Clerk This ordinance approved and signed by me on the 3rd day of November , 1960, at the hour of 9:50 A . M. 4�u.1 Mayo i N & 2nd PD".^;,;.; H /d /l, v a l . PUELIC H`,,::., / .' 11 9= /� ��,,�/��,. 3rd RE "G`<:. /`� -" -/ '`�rwl -. 1��;, ds? ,1 A NO-S Al REFsL ?3,_i1 F , IL L ., CITY OF SOUTH GEM qC PNVY e FREDA G. NOILE. CLERK 4�u.1 Mayo i