HomeMy WebLinkAboutAuthorizing and Providing for the Issuance of $615,000.00 Sewage Works (Revenue) Bonds for the Purpose of Defraying the Cost of Constructing a Sewage Treatment WorksAN ORDINANCE authorizing and providing
for the issuance of $615,000 Sewage Works
(Revenue) Bonds of the City of South Bend,
Indiana, for the purpose of defraying the
cost to said City of constructing a sewage
treatment works for said City, prescribing
the form of said bonds and providing for
the collection and segregation and dis-
tribution of the revenue of the municipal
sewerage system of said City for the pur-
pose of safeguarding, protecting and pay-
ing said bonds.
WHEREAS, it has become necessary and is deemed advisable that the City
of South Bend, Indiana, construct sewer system improvements consisting of an
intercepting sewer and a sewerage treatment works consisting of grit chambers,
primary settlers, mixing and aeration tanks, final settlers, sludge thickeners,
incinerator, magnetite filters, pumps and other appurtenant structures and
equipment, all as contemplated and "provided by the plans and specifications therefor
prepared by Frederick J. Anderson, City Engineer and William S. Moore, engineers
chosen by the Board of Public Works of said City, and as such plans and specific-
ations are now on file with the City Engineer of said City; and
WHEREAS, the cost of said sewer system improvements as estimated by said
Engineers is $2,500,000.00: and
WHEREAS, a substantial contribution of said cost is to be obtained from
the Public works Administration and the Works Progress Administration of the Federal
Government and under the provisions of Section 48 -4301 et seq. of Burns Indiana
Statutes and laws amendatory thereof and supplemental thereto, said City is
authorized to construct said sewer system improvements and to issue bonds of said
City td defray the cost thereof to said City: and
WHEREAS, it is deemed advisable that said City now provide for the
issuance of its bonds to the amount of $615,000 pursuant to said law for the
purpose aforesaid:
NOW, THEREFORE, Be It Ordained by the Common Council of the City of
South Bend, Indiana, as follows:
Section 1. That sewer system improvements as referred to in the preamble
hereof be and the same are hereby ordered constructed pursuant to the provisions of
Section 48-4301 et seq. of Burns Indiana Statutes and laws amendatory thereof
and supplemental thereto and as contemplated and provided by the plans and specifica-
tions prepared by Frederick J. Anderson, City Engineer and William S. Moore now on
file with the City Engineer and that for the purpose of defraying the cost to said
City of such construction not otherwise provided by federal aid there shall be and there
are hereby authorized to be issued 615 negotiable interest bearing bonds of said City
to be known as Sewage Works (Revenue) Bonds, in the total principal amount of Six
Hundred Fifteen Thousand Dollars ($615000), which bonds shall bear date of December
1,1938, shall be numbered consecutively from 1 to 6159 shall be of the denomination
$1,000 each, and shall mature in numerical order as follows:
$20,000
June
191941
$353.000
June
1,1950
20,000
June
191942
40,000
June
1,1951
25,000
June
1,1943
40,000
June
1,1952
259000
June
101944
40,000
June
1,1953
25000
June
1,1945
45,000
June
1,1954
259000
June
191946
45,000
June
1,1955
30,000
June
1,1947
45000
June
1,1956
30000
June
1,1948
45,000
June
1,1957
35,000
June
1,1949
45,000
June
101958
Said bonds shall bear interest at the rate of three and
one —half percent (32'x') per annum and such interest to maturity
of the respective bonds shall be evidenced by coupons attached
thereto payable on December 1, 1939, and semi — annually thereafter on
June 1 and December 1 of each year.
all
Both principal and,/interest shall be payable at The
Chase National Bank of the City of New York, in the City of New York
New York, in lawful money of the United States of America. Said
bonds shall be signed by the Mayor of said City, and countersigned
by the City Controller, sealed with the corporate seal of said City
and attested by the City Clerk, and the interest coupons attached to
said bonds shall be executed with the Facsimile signatures of said
Mayor and said City Clerk, and said officials by the execution of
said bonds shall adopt as and for their own proper signatures their
respective facsimile signatures on said coupons. All of said bonds,
together with the interest thereon, shall be payable out of the
"Sewage Works Bond and Interest Redemption Fund" hereinafter created,
and the fixed amount of the revenues of the sewerage system of said
City pledged thereto.
Section 2. That upon presentation at the office of the
City Controller of said City of South Bend of any of said bonds, same may
be registered as to principal in the name of the owner oil the books
in his office, such registration to be noted on the reverse side of
the bonds by the Controller, end thereafter the principal of such
registered bonds shall be payable only to the registered holder, his
legal representatives or assigns. Such registered bonds shall be transfer-
able to another registered holder, or back to bearer, only upon presenta-
tion to the City Controller with a legal assignment duly acknowledged or
proved. Registration of any of such bonds shall not affect the negotiabil-
ity of the coupons thereto attached but such coupons shall be transferable
by delivery merely.
Section 3. That said bonds and coupons and provisions for
registration shall be in substantially the following form, to wet:
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF INDIANA
COUNTY. OF ST. JOSEPH
CITY OF SOUTH BEND
SEWAGE WORKS (REVENUE) BOND
No.
$1V000
KNOW ALL MEN BY THESE PRESENTS: That the City of South Bend
in the County of St. Joseph and State of Indiana, for value received,
hereby promises to pay to bearer, or if this bond be registered, to the
registered holder hereof, as hereinafter provided, the sum of One Thousand
Dollars ($1,000) on the First day of June, 19_, and to pay interest on
said sum from the date hereof until paid at the rate of three and one —half
per cent per annum, payable December 1, 1939, and semi — annually thereafter
on the First days of June and December in each year, such interest to the
maturity of this bond to be payable upon presentation and surrender of the
annexed interest coupons as the same severally mature, both principal and
interest being payable at The Chase National Bank of the City of New York,
in the City of New York, New York, in lav:ful money of the United States of
America.
This bond is one of a series of bonds issued by said City pursuant
to an ordinance duly adopted for the purpose of defraying the cost to
said City of constructing sewer system improvements for said City under and
in full compliance with the Constitution and statutes of the State of Indiana,
including, among others, Section 48 -4301 et seq. of Burns Indiana Statutes,
as amended and supplemented.
This bond and the series of which it is a part are payable
only from and secured by a pledge of a special fund provided from the
net revenues to be derived from the operation of the municipal sewer
—2—
system of said City, which shall be sufficient to pay the principal of and
interest on said series as and when the same become due and payable, and which
revenues shall be set aside into said special fund identified as the "Sewage
Works Bond and Interest Redemption Fund ", and this bond does not constitute an
indebtedness of the City of South Bend within the meaning of any constitutional
provisions or limitations. Said City covenants that it will fix such rates for
sewage service and collect and account for revenues from such sewer system
sufficient to promptly pay the principal of and interest on this bond and the
series of which it forms a part as the same will become due.
This bond is fully negotiable but may be registered as to principal
only in the name of the holder on the books of said City in the office of its
Controller, such registration being noted hereon by the City Controller, after
which no transfer shall be valid unless made on said books and similarly noted
on the bond, but it may be discharged from such registration by being transferred
to bearer, after which it shall be transferable by delivery.but it may be again
registered as before. The registration of this bond as to principal shall not
restrain the negotiability of the coupons by delivery merely.
IT IS HEREBY CERTIFIED, RECITED P14D DECLARED that all acts, conditions
and things required to exist, happen and be performed precedent to and in the
issuance of this bond have existed, have happened and have been performed in due
time, form and manner as required by law, and that the amount of this bond,
together with all other obligations of said City, does not exceed any limit
prescribed by the Constitution or statutes of the State of Indiana, and that a
sufficient amount of the revenues of said sewer system has been pledged to and
will be set aside into said special fund by said City for the prompt payment of the
principal of and interest on this bond and the series of which it forms a part.
IN WITNESS IT±EREOF, said City of South Bend has caused this bond
to be signed by its Mayor, countersigned by its City Controller, its corporate
seal to be hereunto affixed, attested by its City Clerk, and the coupons hereto
attached to be executed with the fa esimile signatures of said Mayor and said
City Clerk, which officials by the execution of this bond do adopt as and for
their own proper signatures their respective facsimile signatures appearing on
said coupons, and this bond to be dated the First day of December,1938.
Attest:
Mayor.
Countersigned:
City Clerk City Controller.
(Form of Coupon)
No• $17.50
June '~
On the First day of December,lq , the City of South Bend,
Indiana, will pay to bearer Seventeen and 501100 Dollars ($17.50) out of its
"Sewage works Bond and Interest Redemption Fund," at The Chase National Bank
of the City of New York, in the City of New York, New York, as provided in and
for interest then due on its Sewage Torks (Revenue) Bond, dated December 1,1938,
No
Mayor ~y
City Clerk
— 3 —
(Form for registration to be
printed on the back of each bond)
Date of In Whose Signature of
Registration Name Registered City Controller
Section 4.. That upon completion of construction of the sewer system
improvements but at any event not later than June 1,1940, the sewer system of
said City shall thereafter, so long as any bonds hereby authorized are outstanding,
be'_opeJ?tedtby_'said City as a revenue producing undertaking. Interest on said bonds
prior thereto shall be paid from the proceeds derived from the sale thereof.
The revenues of said system as received shall be set aside into a separate and
special fund to be used for the retirement of the aforesaid bonds and in maintain-
ing said system as follows, to—wit-
That there shall be and there is hereby created a fund to be known
as the "Sewage Works Bond and Interest Redemption Fund.," into which there shall be
set aside from said revenues (except as herein otherwise provided) such amount
thereof as will be sufficient to pay the interest and principal of the bonds
hereby authorized, and it is hereby determined that on a fiscal year basis commenc-
ing on December 1 of each year the amounts necessary to be so set aside into
said fund during each puch year shall be not less than 110% of the total amount
of interest and principal becoming due on June 1 of such year and December 1
of the succeeding year, and that on the basis of all the bonds hereby authorized
having been issued the amounts to be so set aside shall be not less than as
follows:
For the year ending November 0.
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
Amount
$23,677.50
23,677.50
45,677.50
44,907.50
49,637.50
48,675.00
47,712.50
x.6,750.00
51,287.50
50,132.50
54,477.50
53,130.00
57,282.50
55,742.50
54,202.50,
58,162.50
56, 730.00
54,697.50
52,965.00
51,232.50
Provided, however, that no further payments need be made
into said redemption fund when and so long as such amount of the
bonds shall have been retired that the amount then held in such fund
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is 'equal to the entire amount of all interest and principal that will be payable at
the time of their redemption or maturity on all of the bonds then remaining out-
standing.
If in any year the City shall, for any reason, fail to pay into said
redemption fund the full amount above stipulated, then an amount equivalent to such
deficiency shall be set apart and paid into said fund from the first available
revenues of the following year or years, and same shall be in addition to the
amount otherwise herein provided to be so set apart and paid during such succeeding
year or years.
Such payments into said fund shall be made in equal monthly installments
of the first day of each month, except that when the first day of any month.shall
he a Sunday or a legal holiday, then such payments shall be made on the next
succeeding secular day and the balance then remaining shall be set aside for
operation, maintenance and depreciation as provided by law.
In the event the revenues during any month are inadequate to make the
required payment into said account the deficiency shall be made up and paid as
aforesaid from the first available revenues thereafter received and same shall
be in addition to aayments otherwise provided to be made in such succeeding month
or months. The "Sewavage works Bond and Interest Redemption Fund" as aforesaid
shall be used solely and only and is hereby pledged for the purpose of paying
principal of and interest on the bonds herein authorized to be issued, Interest
on said bonds accruing prior to complete construction of said sewerage system imp-
rovements shall be paid from the proceeds of said bonds to the extent such interest
is not available from funds received as accrued interest, and, upon delivery of said
bonds and the receipt of the proceeds, a sum, including the accrued interest received,
equal to not less than the interest to become due on such bonds on and prior to
June 1, 1940, shall be withdrawn from said proceeds and placed in said "Sews€ age works
Bond and Interest Redemption Fund" to pay said interest.
Section S. while the bonds authorized hereunder or any of them remain
outstanding and unpaid the rates for all services rendered by the said sewer system
to said City and to -'its citizens, corporations or ary others served shall be reason-
able and just; taking into account and consideration the cost and value of said
system and the cost of maintaining and 6perating the same and the amounts necessary
for the retirement of all bonds and the accruing interest on all such bonds as may be
sold and are unpaid under the provisions of this ordinance, and there shall be
charged such rates and amounts for sewerage service as shall be adequate to meet the
requirements of this and the preceding sections ,hereof. Compensation for services
rendered to said City shall be in like manner charged against the City and payment
for same from the corporate funds shall be made monthly into the special fund created
by this ordinance as other income and revenues of said sewerage system and shall be
apportioned to operation and maintenance and bond and interest redemption as such
other revenues.
Said City covenants and agrees that so long as any of the bonds hereby
authorized remain outstanding it will keep proper bookd of record and account,
separate from all other municipal records and accounts, showing complete and correct
entries of all transactions relating to said sewerage system and that the holders
of any of said bonds shall have the right at all reasonable times to inspect the
system and all records, accounts and data of the City relating thereto.
Section 6. The said City of South Bend hereby covenants and agrees with
the holder or holders of the bonds herein authorized to be issued, or any of them,
that it will faithfully and punctually perform all duties with reference to said
sewerage system required by the Constitution and laws of the State of Indiana,
including the making and collecting of reasonable and sufficient rates for services
rendered thereby, and will segregate the revenues of said system and make applic-
ation thereof into the respective funds created by this
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ordinance; and the City hereby irrevocably covenants, binds and obligates itself
not to sell, lease, mortgage or in any manner dispose of said sewerage system,
including any and all extensions, additions and appurtenances thereto that may
be made or constructed, until all the bonds herein authorized to be issued shall
have been paid in full, both principal and interest, end the City further covenants
and agrees with the holders of said bonds to maintain in good condition and con-
tinuously operate said sewerage system and to charge and collect such rates and
charges for services rendered thereby so that the gross revenues will be sufficient
at all times to provide for the payment of the operation and maintenance thereof
and for the specified payments into the Bond and Interest Redemption Fund as
provided herein.
Section 7. Any holder of said bonds or of any of the coupons may
either at law or in equity, by suit, action, mandamus or other proceedings enforce
and compel performance of all duties prescribed by this ordinance and the law
pursuant to which said bonds are issued, including the making and collection of
sufficient rates and segregation of the revenues and the application thereof.
Section 8. The bonds authorized to be issued hereunder and from
time to time outstanding shall not be entitled to priority one over the other
in the application of the revenues of said sewage system, regardless of the time
or times of their issuance, it being the intention that there shall be no prior-
ity among the bonds authorized to be issued under the provisions of this ordinance,
regardless of the fact that they may be actually issued and delivered at different
times, and provided that said city may at any time prior to the expiration of
eighteen (18) months from the ate of final adoption of this ordinance authorize
and provide for the iorMA'Dee of additional bonds to the principal amount of not
exceeding $300,000 for the purpose of paying the balance of the cost of the
sewage system improvements as hereinbefore contemplated or for otherwise extend —
King, improving or bettering the sewer system of said city, such additional bonds
to mature in the same proportionate amounts and over the same period of years as
the bonds hereinbefore authorized and to mature on April 1 of the respective
years with interest at a rate not exeeding the rate barne by the bonds hereby
authorized, and such additional bonds, when so authorized and issued, shall be
payable from the revenues of the works equally with the bonds hereby authorized
without preference, distinction or priority; and provided further that the lien
and security of and for any other bonds or obligations hereafter issued, except
those to the amount of $300,000 herein described, that are made payable from the
income and revenues of the sewage system shall be subject to the priority of the
bonds hereby authorized and the bonds to the amount of $3002000 hereinbefore
described as may from time to time be outstanding.
Section 2 That the bonds hereby authorized in the principal amount
of $615,000 shall be executed as herein provided as soon after the doption of
this ordinance as may be,,and thereupon the Uity Controller and the Board of
Public Works are hereby authorized and directed to determine the form of contract for
the sale of said bonds and to give at least two days notice of said sale by publish-
ing one notice thereof in the South Bend Tribune and the South Bend News Times, both
published in South Bend, Indiana, fixing the time and place of receiving bids.
Said Bonds shall be sold to the best bidder. It is provided, however, that none of said'
bonds shall be so delivered until the lapse of at least twenty (20) days from the
date this ordinance becomes effective as provided by law. The proceeds derived from
the itsm „oee of the said bonds after the withdrawal of the sum provided in Section
4 hereof for interest shall be used and paid out upon estimates and approval of
engineers, William S. Moore Consulting Engineer, or their successors, only for
the purpose of defraying the cost of constructing the sewage system improvements
for said city as inferred to in the preamble of this ordinance. Pending expenditures
for the purpose aforesaid, such proceeds shall be deposited in a bank or banks which
are members of the Federal Reserve System as a special construction fund account.
Any surplus remaining after completion of such construction shall be paid into the
'"Sewage Works Bond and Interest Redemption Fund " as hereinbefore created.
41
Section 10. That the rates to be charged for the several classes of
users or property served by the municipal sewer system when said system is established
as a revenue producing undertaking as hereinbefore provided are estimated as follows:
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SCHEDULE OF RATES if total bond issue of x$,915,000 is required to complete
construction of Sewage Treatment Plant and Interceptor Sewers.
1200
cubic
ft.
or less (flat rate of 7500 per quarter)
4800
cubic
ft.
@
$0.10
6000
cubic
ft.
@
0.08
6000
cubic
ft.
@
0.06
12000
cubic
ft.
@
0.04
20000
cubic
ft.
@
0.02
50000
cubic
ft.
@
0.01 (per hundred cubic ft.)
Said schedule of estimated rates shall be subject to revision a t the
time of establishment in the manner and form prescribed by law, and whenever in
the opinion of the engineer for said City it is deemed necessary to classify any
commercial institutions or industries by reason of the unequal purpose for which
water is used or character of sewage discharge, or whenever water meter readings
may not be available, then the Common Council of said City may in its discretion,
in the manner and form prescribed by law, establish special rates and charges,
and at any event while any of the bonds hereby authorized are outstanding and
said sewer system is operated as a. revenue producing undertaking, rates and
charges shall be established, revised and maintained so as to be sufficient in
each year to produce sufficient funds for the payment of proper and reasonable
expenses of operation, repair, replacement and maintenance of the sewer system and
for the payment of the sums required to be paid into the "Sewage Works Bond and
Interest Redemption Fundt as hereinbefore created.
Section 11. That the bonds hereby authorized shall be issued pursuant
to the provisions of Section 48 —/,301 of Burns Indiana Statutes and the assessed
valuation of tlxable property in said City, being A =`- ° , the total
proposed bond issue hereby authorized is less than two percent of such assessed
valuation, thereby enabling the issunicec of said bonds without submitting the
question of such issuance at an election.
Section 12. The provisions of this ordinance shall constitute a
contract between the City of South Bend and the holders of the bonds herein authorized
to be issued, and after the issuancer of any of the bonds no change, variation, or
alteration of any kind of the provisions of this ordinance shall be made in any
manner except as herein provided until such time as all of said bonds issued
hereunder and the interest thereon have been paid in full.
Section 13. If any Section, paragraph, clause or provision of this.
ordinance shall be held invalid, the invalidity of such section, paragraph, clause
or provision shall not affect any of theiemaining provisions of this ordinance.
Section 14. All ordinances, resolutions and orders or parts thereof
in conflict with the _provisions of this ordinance are to the extent of such conflict
hereby repealed.
Section 15. It is hereby declared that this ordinance become effective
immediately upon its passage and approval.
Attest;
Introduced ,1938.
Adopted by Common Council 9,1938.
City Clerk
Presiding Officer
..........
Presented by me to the Mayor of South Bend this day
of . 1938.
Approved and signed by me this
1938.
r
City Clerk
_ day of