Loading...
HomeMy WebLinkAboutAuthorizing and Providing for the Issuance of $2,000,000.00 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 X2,000,000 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 distribution of the revenues of the municipal sewerage system of said City for the purpose of safeguarding, protecting and paying said bonds. 1. 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 sewage treatment works consisting of (describe improvements) grit chambers, primary settlers, mixing and aeration tanks, final settlers, sludge thickeners, incinerator, magnetite filters, pumps and other appurtenant structures and equipment, IZ a3,1 as Conte ated and pr vi hue plans and specifications therefor prepared by Ylr g eers, chosen by the Board of Public Works of said City, end as such plans and specifications are now on file with the City Engineer of said City; and WHEREA , the cost of said sewer system improvements as estimated by said Engineers is $ � {�07 ~,, O! and WHEREAS, a substantial contribution of said cost is to be obtained from the Public Works Administration and the Works Progress Administration and under the provisions of Section 48 -4501 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 to 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 $2,000,000 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 -4501 et seq. of Burns Indiana Statutes and laws amendatory thereof and supplemental there" and s�conte eland rovided by the plans and specifications prepared by %t�.ly� 0"lrj 'noVP on`W e with the City Engineer, and that for the purpose of defraying the cost to said City of such construction no4r otherwise provided by federal aid there shall be and there are hereby authorized to be issued 2,000 negotiable interest bearing bonds of said City to be known as Sewage Works (Revenue) Bonds, in the total principal amount of A 000.000 Dollars , which bonds shall bear date of November 159 1958, shall be numbered consecutively from 1 to 20009 shall be of the denomination of $1,000 each, and shall mature in numerical order as follows: $ 40,000 November 15, 1941 44,000 " 15, 1942 46,000 " 15, 1945 48000 " 15, 1944 48,000 " 150 1945 50,000 " 152 1946 52,000 " 15, 1947 54,000 " 15,:1948 108,000 56,000 " 159 1949 $ 58,000 Nov. 15, 1950 60,000 " 15, 1951 62,000 " 15, 1952 64,000 ^ 15, 1955 66,000 ^ 15, 1954 689000 " 15, 1955 70,000 " 159 1956 74,000 " 15, 1957 78,000 " 15, 1958 82,000 Nov. 151 1959 842000 " 15, 1.960 86,000 " 15, 1961 90,000 " 15, 1962 94,000 " 15, 1965 981000 " 15, 1964 100,000 " 159 1965 104,000 " 15, 1966 108,000 " 15, 1967 116,000 " 15, 1968 Bonds numbered from 1675 to 2000 inclusive and maturing: $104,000 November 15) 1967 ;08,000 " 116,000 " 15, 1968 are optional and subject to call, by the City of South Bend, Indiana, upon any interest ;ti 2. payment date, on and.after November 15, 1945, at par and accrued interests in inverse of numerical order, upon 50 dayst published notice in a newspaper published in the City of New York, ,.New York and South Bend, Indiana. :$aid bonds shall bear interest at the rate of three and one half per cent. (3720 per annum and such interest to maturity of the.respective bonds shill be evidenced by coupons attached - thereto payable on November 15, 1959, and semi- annually thereafter.on, the May 15th and November 15th of each year. Both principal and interest shall be payable at the Chase National Bank of the City of New York, in,the.City of 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 ,Coatroller, sealed with the, corporate seal of said City and:' attested by the City Clark, 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.sigaatures 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.on the books in,his office, such registration to be noted on the reverse side of the bonds by the Controller, and thereafter the principal of such registered bonds shall be payable only.to'the registered holder, his legal representa- tives or assigns. Such registered bonds shall be transferable to another registered holder, or back to,bearer, only upon presentation to the City Controller with a legal assignment duly acknowledged or proved. Registration of any of such bonds shall not affect the negotiability 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 wits (Form.of Bond) UNITED STATES OF AMERICA STATE OF INDIANA COUNTY OF ST. JOSEPH CITY OF SOUTH BEND SEffAGE WORKS (REVENUE) BOND No. $1,000 RNOW ALL MEN BY THESE PRESENTS: That the City of South Bend, in the County of St. Joseph and State of Indiana, for value received hereby promises to Pay to bearer, or if this bond be registered, to the.registered holder hereof, as hereinafter provided, the sum of One Thousand Dollars ($p1,000) on the fifteenth day of November, 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 November 15, 1959, and semi - annually thereafter on the fifteenth days of May and November, 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 matured both principal and interest being payable at the Chase National.Bank of the City of New York, in the City of New York, in lawful. 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 construct- ing sewer system improvements for said City under and in full compliance e with Section Constitution and statutes of the State of Indiana, including, g , 48 -4301 at seq. of Burns Indiana Statutes, as amended an supplemented. 3. 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 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, bat 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 delltery merely. IT IS HEREBY CERTIFIED, RECITED AND 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 limited 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 WHEREOF, 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 facsimile signatures of said Mayor and said City Clerk, which officials by the execution of this bond do adopt as and for their own proper signa- tures their respective facsimile signatures appearing on said coupons, and this bond to be dated the fifteenth day of November, 1988. Mayor Attest: Countersigned: City Clerk City Controller. (Form of Coupon) On the fifteenth day of November, 1959s the City of South Bend, Indiana, will pay to bearer, Thirty —five Dollars (655.00 out of its "Sewage Works Bond and Interest Redemption Fund," at the Chase National Bank in the City of New York, as provided in and for interest then due on its Sewage Works (Revenue), dated November 15, 1958, No. , Mayor City Clerk 4. (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 May 15, 1940, the sewer system of said City shall thereafter, so long as any bonds hereby authorized are outstanding, be operated by 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 maintaining 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 commencing on January let of each year the amounts necessary to be so set aside into said fund during each such year shall be not less than 110% of the total amount of interest and principal becoming due on November 15th of such year and May 15th 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: 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 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 outstanding. 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 on the first day of each month, except that when the first day of any month shall be 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 afore- said from the first available revenues thereafter received and same shall be in addition to payments otherwise provided to be made in such succeeding month or months. ed The "Sewage Works Bond and Interest Redemption Fund" as aforesaid alb ofsend solely and only and is hereby pledged for the purpose of paying principal For the year ending December 31, 1939 - $ 70,000 1949 - $ 1120630 1959 - $ 115,670 1940 - 70,000 1950 - 12,670 1960 - 1149800 1941 - 110,000 1951 - 12,640 1961 - 15,860 1942 - 1120600 1952 - 12,540 1962 - 14,850 1943 - 113,060 1953 - 112,370 1963 - 15,700 1944 - 113,450 1954 - 12,130 1964 - 16,410 1945 - 111,770 1955 - 1119820 1965 - 1140980 1946 - 112,090 1956 - 11,440 1966 - 15,480 1947 - 12,340 1957 - 12,990 1967 - 152840 1948 - 112,520 1958 - 1145400 1968 - 120,060 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 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 outstanding. 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 on the first day of each month, except that when the first day of any month shall be 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 afore- said from the first available revenues thereafter received and same shall be in addition to payments otherwise provided to be made in such succeeding month or months. ed The "Sewage Works Bond and Interest Redemption Fund" as aforesaid alb ofsend solely and only and is hereby pledged for the purpose of paying principal S. interest on the bonds herein authorized to be issued. Interest on said bonds accruing prior to complete construction of said sewerage system improvements shall be paid from the proceeds of said bonds to the extent such interest is not avail- able from fluids received as accrued interest, and, upon the 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 May 15, 1940, shall be withdrawn from said proceeds and placed in said "Sewage Works Bond and Interest Redemption Fund" to pay said interest. Section 5. 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 any others served shall be reasonable 4ud just, taking into account and consideration the cost and value of said system and the cost of maintaining and operating the same 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 opportioned 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 books 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 Stateof Indiana, includ- ing the making and collecting of reasonable and sufficient rates for services rendered thereby, and will segregate the revenues of said system and make application thereof into the respective funds created by this ordinance; and the city hereby irrevocably covenants, binds end obligates itself not to sell, lease, mortggge 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, and the City further covenants and agrees with the holders of said bonds to maintain in good condition and continuously 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 holdek 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 collecting of sufficient rates and segregation of the revenues and the application thereof. Section S. 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 applica- tion 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 priority 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) further that the lien and security of and for any other bonds or obligations hereafter issued that are payable from the income or revenues of the sewage system shall be subject to the priority of the bonds hereby authorized as may from time to time be outstanding. Section�99 That the bonds hereby authorized in the principal amount of $2,000,000, consisting of a proportionate amount of each maturity and having, in the aggregate, an average maturity as nearly as may be equal to the average maturity of all the bonds hereby authorized shall be executed as herein provided as soon after 6. the adoption of this ordinance as may be and thereupon the City Controller and The Board of Public works are hereby authorized and directed to sell and enter into a contract for the sale of that portion of the authorized issue of $2,000,000 that might be necessary to complete the project upon terms and conditions acceptable to them, provided, however, none of said bonds shall be so delivered until the lapse of at least twenty days from the date this ordinance becomes effective as provided by law. The proceeds derived from the issuance of said bonds after the withdrawal of the sum provided in Section 4 hereof for�.nt =re shall used and paid out upon estimates and approval of the engineers li7/•rt� , or their successor, only for the purpose of defraying the cost of constructing the sewage system improve- ments for said City as referred to in the preamble of this ordinance. Pending expenditure 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. 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: -I -�-` G Said schedule of estimated bates shall be subject to revision at 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 unusual purpose for which water is used or character of sewage discharge, or mhenever 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 undertakings, 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 Fund" as hereinbefore created. Section 11. That the bonds hereby authorized shall be issued pursuant to the provisions of Section 48 -4301 of Burns Indiana GStatutes and the assessed galuation of taxable property in said City being �3//� pJp 1 the total proposed bond issue hereby authorized is less than two per cLn o� such assessed valuation, thereby enabling the issuance 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 issuance 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 the remaining 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: of 1958. Attest: Introduced Adopted by Common Council City Clerk 1938. 1938. Presiding Officer Presented by me to the Mayor of South Bend this day 1938. Approved and signed by me this day of City Clerk Mayor City Clerk 7.