HomeMy WebLinkAbout1990-OR-46ORDINANCE NO.~
An Ordinance of the City of 2effersonville prescribing the manner in which the
City may makea temporary loan to pay for preliminary expenses) prior to the
issuance and delivery of revenue bonds) incurred m connection with its sewage
works improvement project.
WHEREAS) i.C. 36-9-23 (the "Act") empowers the City of 3effersonville to make
a temporary loan to pay for preliminary expenses incurred in connection with a
sewage works improvement project~ but said Act does not prescribe a specific manner
for exercising the power to make such temporary loan; and
WHEREAS, I.C. 36-1-3-6 provides that if there is no constitutional or statutory
provision requiring a specific manner for exercising a power~ the legislative body
should adopt an ordinance prescribing a specific manner for exercising such power; and
WHEREAS~ the City of Jeflersonville~ Indiana owns and operates a sewage
department in accordance with the Act; and
WHEREAS~ the Common Council now finds that the sewage works are in need of
cer.tain additions~ extensions~ and improvements; that preliminary expenses will be
incurred, prior to the time bond proceeds will be available to pay such preliminary
expenses; and that no other funds are expected to be on, hand to provide for the
payment of said preliminary expenses; and
WHEREAS~ the Common Council finds that it may be necessary to exercise its
power under the Act to make a temporary loan to pay lot said preliminary expenses
and that it is now necessary to adopt an ordinance prescribing the specific manner for
exercising said power; now ther.efore~ ~
BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF
JEFFERSONVILLE~ INDIANA--
The Common Council ("Council") has the authority to enter into the loan
transaction under the terms and conditions set forth herein.
Section 1. The Council may exercise its power t~ make a temporary loan to
obtain funds with which to pay preliminary expenses incurred in connection with a
sewage works improvement project~ by taking the following steps: (1) the Sewage
Department shall certify the preliminary expenses actually incurred to the
Clerk-Treasurer, directing payment of the amount so certified; (2) the Clerk-Treasurer
shall determine that there is no money in the general fund of the sewage utility, not
approprla~ced for other purposes~ with which to pay said preliminary expenses; and (3)
the Clerk-Treasurer shall request the Council to make a temporary loan to pay the
preliminary e. xpenses.
Section 2. The temporary loan may be evidenced by the issuance of the City's
notes. The notes may be issued on terms set forth in Section 3 and in any amount
equal to or less than the amount of preliminary expenses actually incurred, but not to
exceed $600,000.00. If the stated maturity of the notes is more than one yeaG the
notes must be sold in accordance with I.C. 5-1-11.
Section 3. The notes shall only be payable from proceeds of the sewage works
revenue bonds or grants in anticipation of which the notes are issued and other
available revenues of the sewage works. The pledge of available revenues of the
sewage works to the repayment of any outstanding bonds payable from the revenues of
the sewage works. The notes shall constitute a first charge against the proceeds of
the sewage works revenue bonds in anticipation of which the notes are issued. The
notes shall not exceed a total of $600,000.00 plus interest at a rate not to exceed
under the bank'sthen current prime rate.
Section 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 Jeffersonville on this
,~ day of October, 1990.
R~OBERT L. WA~Z
PRESIDENT~ COMMON COUNCIL
ATTEST:
C. R CHARD SPENCE~'3R. ~
CLERK-TREASURER ~
Presented by me as Clerk-Treasurer to the Mayor of the City of Jeffersonville,
C. RICHARD SPENCERi~R. ~.~
CLERK-TREASURER ~
Approved and signed by me this ~ day of ~ 1990.
MAYOR DALE L. OREM