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HomeMy WebLinkAboutAuthorizing the Issuance and Sale of Bonds to be Applied to the cost of Construction, Reconstruction and Improvement of StreetsORDINANCE N0.4302 -60 Passed by the Common Council of the City of South Bend, February 8. 1960 193 Presented by me to the Mayor of the City of South Bend, Indiana February 9, 1960 193 Clerk of Common Council Approved and signed by me February 9, 1960 Clerk Mayor �7 ORDINANCE NO. 4302 -60 AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ISSUANCE AND SALE OF BONDS OF SAID CITY FOR THE PURPOSE OF PROVIDING FUNDS TO BE APPLIED TO THE COST OF CONSTRUCTION, RE- CONSTRUCTION AND IM- PROVEMENT OF STREETS, AND EXPENSES INCURRED IN CONNECTION THEREWITH. WHEREAS, The Board of Public Works and Safety of the City of South Bend has found that many streets in said city have deteriorated and have become defective to a serious extent; that an emergency exists for the immediate construction, re- construction and improvement of such streets and that said project is necessary in order to protect the safety and well -being of the citizens of said city, and will be of general benefit to the entire city; and WHEREAS, the Board of Public Works and Safety has determined that the estimated cost of said project, and the incidental expenses necessary to be incurred in connection therewith, including the issuance of bonds, will be in the approximate amount of One Million Dollars ($1, 000, 000, 00), and has filed a request for an appropriation in said amount for said purposes, which request has been approved by the City Controller, with the recommendation that the funds necessary to cover such appropriation be obtained by the issuance and sale of general obligation bonds of said city; and WHEREAS, the Common Council now finds that the con- struction, re- construction and improvement of streets is immediately necessary and will be of general benefit to the city and its. citizens; now, therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: Section 1. That the City of South Bend (hereinafter, some- times referred to as the "City ") by and through its Board of Public Works and Safety, proceed with the construction, re- construction and improvement of streets, in accordance with such plans and specifications as have been and may hereafter be approved by the Board of Public Works and Safety. Section 2. For the purpose of providing funds with which to pay the cost of construction, re- construction and improvement of said streets and the incidental expenses necessary to be incurred in connection with such project and the issuance of bonds on account thereof, the city shall make a loan in the amount of One Million Dollars ($1, 000, 000. 00). In order to procure said loan the City Controller is hereby authorized and directed to have prepared and to issue and sell the negotiable, direct obligation bonds of the city to be designated as "City of South Bend, Municipal Bonds of 196011 , in the aggregate principal amount of One Million Dollars ($1, 000, 000. 00), which bonds shall be issued in the denomination of One Thousand Dollars ('$1, 000. 00), shall be numbered consecutively from 1 to 1, 000 inclusive, shall be dated as of the first day of the month in which said bonds are sold, and shall bear interest at a rate not ex- ceeding four per centuxn (416) per annum (the exact rate to be deter- mined by bidding), which interest shall be payable on June 1, 1961, and semi - annually thereafter on December 1 and .June 1 of each calendar year, and shall be evidenced by coupons attached. to said bonds. Said bonds and interest coupons shall be payable at the St. Joseph Bank and Trust Company of South Bend, Indiana, in lawful money of the United States of America. The bonds shall mature serially in the amounts and on the dates as follows: - 2 - 25,000.00 June 1, 1963 $ 2.5, 000.00 December 1, 1963 $ 25,000.00 June 1, 1964 $ 250 000. 00 December 1, 1964 $175,000.00 June 1, 1965 $175., 000. 00 December 1, 1965 $275,000.00 June 1, 1966 $275,000.00 December 1, 1966 Said bonds shall be signed in the name of the City of South Bend by the Mayor of said City, countersigned by the City Controller, and attested by the City Clerk who shall affix the seal of said city to each of said bonds. The interest coupons attached to said bonds shall be executed by placing thereon the facsimile signatures of the Mayor and City Controller, and said officials, by the signing of said bonds, shall adopt as and for their proper signa- tures their facsimile signatures appearing on said coupons. Said bonds shall, in the hands of bona fide holders, have all of the qualities of negotiable instruments under the law merchant. Section 3. The form and tenor of said bonds, and the interest coupons to be attached thereto, shall be substnatially as follows, to -wit: UNITED STATES OF AMERICA State of Indiana County of St. Joseph No. $1,000.00 CITY OF SOUTH BEND MUNICIPAL BOND OF 1960 The City of South Bend, in St. Joseph County, Indiana, for value received, hereby acknowledges itself indebted and promises to pay to the bearer hereof the principal amount of ONE THOUSAND DOLLARS on the first day of 19 , and to pay interest thereon from the date hereof until the principal is paid, at the rate of ( ) per centum per annum, payable semi - annually on the first days of June and December of each calendar year beginning on June. 1, 1961, upon presentation and surrender of the annexed coupons as they severally become due. - 3 - Both principal and interest on this bond are pay- able in lawful money of the United States of America at the St. Joseph Bank and Trust Company, in the City of South Bend, Indiana, This bond is one of an authorized issue of one thousand (1, 000) bonds of the City of South Bend, Indiana, of like date, denomination, tenor and effect, except as to dates of maturity, aggregating One Million Dollars ($1, 000, 000. 00) numbered consecutively from 1 to 1, 000 inclusive, issued for the purpose of providing funds to be applied to the cost of construction, re- construction and improvement of streets, and expenses incidental thereto, pursuant to an ordinance adopted by the Common Council of said city on the day of February, 1960, entitled "An ordinance of the City of South Bend, Indiana, autho- rizing the issuance and sale of bonds of said city for the purpose of providing funds to be applied to the cost of construction, re- construction and improvement of streets, and expenses incurred in connection therewith", and an Act of the General Assembly of the State of Indiana, en- titled "An act concerning municipal corporations ", approved March 6, 1905, and all acts amendatory thereof and supple- mental thereto, including Chapter 119 of the Acts of 1937. 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; that this bond and said total issue of bonds is within every limit of indebtedness prescribed by the constitution and laws of the State of Indiana, and the full faith and credit of the City of South Bend, Indiana, is hereby irrevocably pledged to the punctual payment of the principal of and interest on this bond according to its terms. IN WITNESS WHEREOF, the City of South Bend, in St. Joseph County, Indiana, by ordinance of its Common Council, has caused this bond to be signed in its corporate name by its Mayor, counter - signed by its City Controller, its corporate seal to be hereunto affixed, and attested by its City Clerk, and the interest coupons hereto attached to be executed by placing thereon the facsimile signatures of said Mayor and City Controller, as of the day of , 1960, CITY OF SOUTH BEND By Mayor Countersigned: City Control Attest: City Clerk _ 4 _ Burns Indiana Statutes Annoted, 1933, then no further steps toward the issuance of said bonds shall be taken unless and until the State Board of Tax Commissioners shall issue its order approving the issuance of said bonds. In the event it shall be determined by the State Board of Tax Commissioners, or otherwise, that the whole amount of the bonds herein authorized shall not be issued, then the City Controller shall be authorized to advertise and sell a lesser amount of bonds, and the bonds not issued and sold shall be the bonds of the largest maturity or maturities. Section 5. Prior to the sale of said bonds the City Controller shall cause to be published a notice of such sale once each week for two (2) weeks in said the South Bend Tribune and The Becord. The date fixed for the sale shall not be earlier than seven (7) days after the last of said publications. Said bond sale notice shall state the time and place of sale, the purpose for which the bonds are being issued, the total amount thereof, the maximum rate of interest thereon, the time and place of payment, the terms and conditions on which bids. will be received and sale made, and such other information as the City Controller shall deem necessary. All bids for said bonds shall be sealed and shall be presented to the City Controller at his office, and said Controller shall continue to receive all bids. offered until the time designated on the day fixed in the bond sale notice, at which time and place he shall open and consider said bids. Bidders for said bonds shall be required to name the rate of interest which the bonds are to bear, not exceeding four per centum (4 %) per annum, and such interest rate shall be in multiples of one- eighth (1(8) of one per centum (1 %) and not more than one (l.) interest rate shall be named by such bidder. The Controller shall award, the bonds to the highest re- sponsible and, qualified bidder. The highest bidder shall be the one who offers the lowest net interest cost to the city to be deter- mined by computing the total interest on all of the bonds to their maturities and ,deducting therefrom the premium bid, if any. No bid for less than the par value of said bonds, including accrued interest at the rate named to the date of delivery, shall be con- sidered. The Controller shall have full right to reject any and all bids. In the event no acceptable bid is received at the time fixed in said notice for the sale of said bonds, the Controller shall be authorized to continue to receive bids. from day to day thereafter for a period of not to .exceed thirty (30) days, without readvertising, but during such continuation no bid shall be accepted which is lower than the highest bid received at the time fixed for such sale in the bond sale notice. Prior to the sale of said bonds the City Controller shall be authorized to obtain a legal opinion as to the validity of said bonds from Ross, McCord, Ice and Miller, bond counsel of Indianapolis, and to furnish such opinion to the purchaser of said bonds. The cost of said opinion shall be considered a part of the cost of said project, and shall be paid out of the proceeds of said bonds. Section 6. The City Controller is hereby authorized and directed to have said bonds and coupons prepared, and the Mayor, City Controller and City Clerk are hereby authorized and directed to execute said bonds and the interest coupons to be attached thereto in the form and manner herein provided. After said bonds shall have - 7 been properly executed, the City Controller shall deliver the same to the City Treasurer, and shall take his receipt therek)r, and upon the consummation of the sale of said bonds the. City Controller shall then certify to the Treasurer the amount which the purchaser is to pay for the same; thereupon, said Treasurer shall be authorized to receive from the purchaser the amount so certified by the Controller and to deliver the. bonds to said purchaser. Section 7. This ordinance shall be in full force and. effect immediately upon its passage and signing by the Mayor. Member of the Common Council Passed and adopted. by the Common Council of the City of South Bend on the Z4( day of February, 1960. Joseph T. Kroll, President Attest: Freda G. Noble, City Clerk Presented by me to the Mayor of the City of South Bend on the 6 day of February, 1960, at the hour of x'1'5 o'clock/+ M. Freda G. Noble, City Clerk This ordinance approved and signed by me this T-4 day of February, 1960, at the hour of V/( �d o'clock � M. lot & 2nd READING -3151`10 COA9UTTEE OF THE WHOLE PUBLIC HEARING 3rd READ :A NOT Ar P;;;irED REFS:oED PAS'o�j ANC - 8 - Edward F. Voorde, Mayor