HomeMy WebLinkAbout1969-OR-12ORDINANCE NO.
An Ordinance concerning the construction by the
City of Jeffersonville, Indiana, of improvements
and extensions to its sewage works, the issuance
of additional revenue bonds to provide funds
application on the cost thereof, the collection,
segregation and distribution of the revenues of
said works, the safeguarding of the interests of
the holders of said bgndsi:-and other matters con-
netted therewith
WHEREAS, the City of Jeffersonville now owns and operates
sewage works for the collection and treatment ~gf sewage and
other wastes, pursuant to Chapter'284 of the Acts of the Indi-
ana General Assembly for the year~1967, and the acts amenda-
tory thereof and supplemental thereto, and the Board of Public
Works and Safety has represented and the common Council finds
that certain improvements and extensions to said works are nec-
essary; that plans, ~specifications and estimates have'been pre-
pared and filed by the engineers employed by the City for the
necessary improvements and extensions to the sewage works,~
which plans and specifications have been approved by all gov-
ernmental authorities having jurisdiction, including particu-
larly the Stream Pollution Control Board Of the State of Indi-
ana, and the State Board of Health; and
WHEREAS, the Council further ~finds that bids for the con-
struction of said ~mprovements~and extensions .have been re-
ceived and that the cost of said'improvements.and extensions
to the works, as defined in Sec. 1 of said governing statute,
will be in the estimated amount, of Two Million Nine Hundred
Seventy-eight Thousand Forty-nine Dollars ($2,978,049); that
federal grants in the amount of One Million Two Hundred Thirty-
four Thousand Two Hundred Dollars ($1,234,200) and a state
grant in the amount of Five Hundred Sixty-one Thousand Dollars
($561,000) have been made available for application on the
cost of the project, and the sum of Seventy-two Thousand
Eight Hundred Forty-nine Dollars ($72,849) from available
funds of the sewage works ~s available for application on
such cost, leaving a balance of One Million One Hundred Ten
Thousand Dollars ($1,110,000) to be financed by the issuance
of revenue bonds under the provisions of said Act; and
WHEREAS, pursuant to Ordinance No. 1607, adopted by the
Common Council of the City on October 7, 1963, as amended by
Ordinance No. 1608, adopted on November 4, 1963, the City
has heretofore issued and now has outstanding revenue bonds
payable from the revenues of said sewage works, designated
"Sewage Works Revenue Refunding Bonds," dated December 1,
1963, outstanding in the amount of One Million Seven Hundred
Fifty-five Thousand Dollars ($1,755,0.00), bearing interest at
the rates of four per cent (4%), three and one-fourth per cent
(3-1/4%), three and three-eighths per cent (3-3/8%), three and
one-half per cent (3-1/2%), three and sixty-hundredths per cent
(3.60%), and three and seventy-hundredths per cent (3.70%) per
annum, depending upon the maturities, and maturing serially on
December 1 in the years 1969 to 1988 inclusive; and
WHEREAS, Sec. 12 of said Ordinance No. 1607, as amended,
authorizes the issuance of additional revenue bonds ranking
on a parity with said now outstanding bonds, provided certain
conditions are met, and Mr. Charles Reich, Certified Public
Accountant of the firm of Yeager, ~Ford & Warren, Louisville,
Kentucky, employed by the City~ has analyzed the records of
the sewage works and has prepared showings demonstrating com-
pliance with the conditions for the issuance of additional
parity bonds; and
WHEREAS, the Council now finds that all conditions pre-
cedent to the adoption of an ordinance authorizing the issu-
ance of additional parity bonds to provide the necessary
funds to be applied on the cost of such additional improve-
ments and extensions have been complied with an accordance
with the provisions of the governing statute; now therefore,
BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF
JEFFERSONVILLE, INDIANA:
Section 1. That the Board of Public Works and Safety
be and it is hereby authorized and directed to proceed with
the construction of improvements and extensions to the sew-
age works owned and operated by the City of Jeffersonville,
in accordance with the plans and specifications heretofore
prepared and filed by Moore and Heger, engineers of Indianap-
olis, Indiana, which plans aqd specifications are now on file
in the office of the Board of.Public Works and Safety and are
hereby adopted and approved and by reference made a part of
this ordinance as fully as if the same were attached hereto
and incorporated herein, also to acquire the necessary prop-
erty therefor; provided that'the cost of construction of the
improvements and extensions tos~d works and the acquisition
of the necessary property therefor shall.not exceed the sum of
Two Million Nine Hundred Seventy-eiqht Thousand Forty-nine Dol-
lars ($2,978,049). The actions of the Board of Public Works
and Safety in and about the construction and financing of said
improvements and extensions to the sewage works be and the same
are hereby approved, ratified and confirmed. The terms "sew-
age works," "works," and other like terms where used in this
ordinance shall'be construed to mean and include the'existing
structures and property and all improvements, extensions and
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additions thereto. Said improvements and extensions shall
be constructed and the bonds herein authorized shall be is-
sued pursuant to and in accordance with the provisions of
Chapter 284 of the Acts of the Indiana General Assembly for
the year 1967, and all acts amendatory thereof and supple-
mental thereto, hereinafter sometimes referred to as the
"Act."
Sec. 2. Said improvements and extensions, consisting
of lift station including comminutors, pumps, .piping, and
force main; lands, rights-of-way, and easements; alterations
to combination existing pump station and,administration build-
ing; new sewage lift pumps; grit removal system; primary set-
tling tanks, aeration system, final settling tanks; conver-
sion of sludge digester to sludge thickener and holding tank;
conversion of primary settling tanks to chlorine contact tanks;
sewage, air and sludge metering systems; interconnecting pip-
ing and appurtenances; wet air oxidation system and sludge de-
watering system; electrical work; Hamburg Pike and Arctic
Springs main sewers and appurtenant'lift station and force
main; and all other necessary equipment, structures and ap-
purtenances, shall be acquired and constructed in accordance
with the plans, .specifications'and .estimates hereinbefore re-
ferred to.
Sec. 3. The City of Jeffersonville shall issue its sew-
age works revenue bonds in the amount of One Million One Hun-
dred Ten Thousand Dollars ($1,110,000) for the purpose of pro-
curing funds to be applied on the cost of said works, as de-
fined in Sec. 1 of said Act.
Said bonds shall be issued in the denomination of Five
Thousand Dollars ($5,000), numbered consecutively from 1
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upwards, dated as of June 1, 1969, and shall bear interest
at a rate or rates not exceeding six and one-half per cent
(6-1/2%) per annum, payable on the first days of June and
December an each year, beginning 'on December 1, 1969. Such
interest shall be evidenced by coupons attached to said bonds.
Both bonds and interest coupons shall be payable in lawful
money of the United States of America, at The Clark county
State Bank, in the City of Jeffersonville, Indiana, or, at
the option of the holder, at the Continental Illinois Nation-
al Bank and' Trust Company of Chicago, in the City of Chicago,
Illinois, and such bonds shall ma{ure serially in numerical
order on December 1 in the years and amounts as follows:
Year Amount Year
1984 $ 5,000 1996
1985 5,000 1997
1986 10,000 1998
1987 1~,000 ~ .~ ' 1999
1988 15,000 2000
1989 30,000 2001
1990 30,000 2002
1991 35,000 2003
1992 35,000 2004
1993 40,000 2005
1994 40,000 2006
1995 40,000 2007
~2008
Amount
$45,000
45,000
50,000
50,000
55 000
60 000
60 000
65 000
70 000
70 000
75 000%<
85,000
85,000
Sec. 4. The bonds of this issue maturing on December 1,
1979, and thereafter, shall be redeemable at the option of the
City, in whole or in part, on June 1, 1979, or any interest
payment date thereafter, in inverse chronological order of ma- '
turity and by lot within ~ maturity, at face value, together
with the following premiums: '~ :~
5% if redeemed on'June 1,
before December 1,
4% if redeemed on June 1,
before December 1,
3% if..redeemed on June 1,
before December 1,
2% if~redeemed on June 1,
1979, or thereafter, on or
19'84;
1985, or thereafter on or
1990;
1991, or thereafter on or
1996;
1997, or thereafter on or
before December 1,. 2002;
if redeemed on June 1, 200.3, or thereafte~ prior
to maturity;
1%
plus in each case accrued interest to the date fixed for re-
demption. Notice of such redemption shall be published at
least one time in a newspaper or financial journal of gener-
al circulation published in the City of Jeffersonville, Indi-
ana, a financial journal of general circulation published
the City of Indianapolis, Indiana, and in The'Bond Buyer pub-
lished in the City and State of New York, or if such finan-
cial journal should cease publication, then in another finan-
cial journal published in the City and State of New York; not
less than thirty (30) days prior to the date fixed for redemp-
tion. If any of the bonds so to be redeemed are registered,
registered
City. The
notice shall specify'the date and place of redemption, and the
serial numbers of the bonds called for redemption. The place
of redemption may be as determined by the City. Interest on
the bonds so called for redemption shall cease on the redemp-
tion date fixed in said notice, if sufficient funds are avail-
able at the place of redemption to pay the redemption price on
the date so named, and when said bonds shall be presented for
redemption.
Sec. 5. Said bonds shall be signed in the name~of.~th~
City of Jeffersonville by the Mayor, and attested by the Clerk-
Treasurer,.who shall affix the seal of said City te each of
said bonds. The interest coupons attached to said bo~ds shall
be executed by placing thereon the facsimile signatures of said
Mayor and Clerk-Treasurer, and said officials, ~by the~ signing
of said bonds, shall adopt as and for their own
tures their facsimile signaturesappearing
Said bonds shall have and incidents of
negotiable instruments under the laws of the State of Indi-
ana.
Said bonds shall be negotiable by delivery unless regis-
tered. Upon presentation of any of the bonds at the office
of the Clerk-Treasurer in the City of Jeffersonville, said
Clerk-Treasurer shall register said bonds as to principal
without charge or expense to the holder. Such registry shall
be noted on each bond so presented, after which no transfer
thereof shall be valid unless made by the registered owner in
person or by his attorney duly authorized and similarly noted
on such bond, but bonds so registered may be discharged from
registry by being in like manner retransferred to bearer, ~af-
ter which they shall be transferable by delivery but may again
be registered as before. The registration of any bond shall
not affect the negotiability_of the interest coupons attached
thereto, but such coupons shall continue to pass by delivery
merely and shall remain payable to bearer.
Said bonds, certain now outstanding bonds in the amount
of One Million Seven Hundred Fifty-five Thousand Dollars
($1,755,000) ranking on a parity.therewith, and any bonds
hereafter issued on a parity therewith, as to both principal
and interest, shall be payable from and secured by an irrevo-
cable pledge of and shall constitute a first charge upon all
the net revenues (herein defined as gross revenues after de-
duction only for the payment of the reasonable expenses Of
operation, .repair and maintenanoe) derivedfrom the sewage
works of the City of Jeffersonville, including the existing
works, the improvements and extensions herein authorized to
be acquired and constructed, and all additions and improve-
ments thereto and replacements thereof
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or acquired. The City shall not be obligated to pay said
bonds or the interest thereon except from the net revenues
of said works, and said bonds shall not constitute an indebt-
edness of the City of Jeffersonville within the meaning of
the provisions and limitations of the constitution of the
State of Indiana.
Sec. 6. The form and tenor of said bonds, the inter-
est coupons to be attached thereto, and the form of registry
endorsement thereon shall be substantially as follows, all
blanks to be filled in properly prior to delivery thereof:
No.
State
UNITED STATES OF AMERICA
of Indiana County of Clark
$5,000
CITY OF JEFFERSONVILLE
SEWAGE WORKS P~EVENUE BOND OF 1969
The City of Jeffersonville, in Clark County,
State of Indiana, for value received, hereby prom-
ises to pay to the bearer, or if this bond be regis-
tered then to the registered.holder, solely out of
the special revenue to,
the principal amount of
FIVE THOUSAND DOLLARS
on the first day of December, (unless this bond.~
be subject to and be called for redemption prior to
maturity as hereinafter provided), and to pay inter-
est thereon from the date hereof until the principal
is paid, at the rate of
per cent ( %) per annum, payable, on the first
days of June and December 'in-each year, .beginning on
December 1, 1969, upon presentation and surrender of
the annexed coupons as they severall~ become due.
Both principal and interest of this bond are
payable in lawful money,of the United States of Ameri?
ca; at The Clark County .State'Bank? in the City of
Jeffersonville, indiana/or,~ia~ t~e Option Of the
holder, at the Continental'illinois National Bank
and Trust Company of
IllinOis.
This bond is one of an authorized issue of two
hundred twenty-two (222) bonds of the City of Jeffer-
sonville, of like date, tenor and effect, except as
to interest rates-and date maturity, in the total
amount of One Million One Hundred Ten Thousand Dol-
lars ($1,110,000), numbered from 1 to 222 inclusive,
issued for the purpose of providing funds to pay the
cost of improvements and extensions to the sewage
works of the City, as authorized by an ordinance
adopted by the Common Council of the City of Jeffer-
sonville on the day of , 1969,
entitled "An Ordinance concerning the construction
by the City of Jeffersonville, Indiana, of improve-
ments and extensions to its sewage works, the issu-
ance of additional revenue bonds to provide funds
for application on the cost'thereof, the-collection,
segregation and distribution of the revenues of said
works, the safeguarding of the interests of the hold-
ers"of said bonds, and other matters connected there-
with," and in strict compliance with the provisions
of Chapter 284 of the Acts of the Indiana General
Assembly for the year 1967, and the acts amendatory
thereof and supplemental thereto.
Pursuant to the provisiohs of said Act and said
ordinance, the principal and interest of this bond
and all other bonds of said issue, certain now out-
standing bonds in the amount of One Million Seven'-
Hundred Fifty-five Thousand Dollars [$.1,755,000),
iss~ed"under date of December 1, 1963, and maturing
serially on December 1 in the~years 1969ito 1988 in-~
clusive, ranking on a parity therewith, and any bonds
hereafter issued on a parity therewith, are payable
solely from the Sewage Works~SyStem Revenue Bond Ac-
count (heretofore created by Ordinance No. 1607,
adopted October 7, 1963) to be provided from the net
revenues (herein defined as gross revenues after de'
duction only for the payment of the reasonable ex-
penses of operation, repair and maintenance) of the
~ewage works of the City of.Jeffersonville, includ-
ing the existing Works, the'~improvements and exten-
sions constructed or acquired by.the use of the pro-
ceeds of this bond and the~issue of which it is a
part, and all improvements'and extensions thereto
and replacements thereof subsequently constructed
or acquired. This bond shall'not constitute an in-
debtedness of the City of Jeffersonville within the
meaning of the provisions, and limitations of the con-.
stibution of the State ofiIndiana, and the City shall.
not be obligated to pay this bond or the interest-
thereon except from )rovided f
said net revenue~.~%/~_~
The~City of Jeffersonville irrevocably pledges
the entire net revenues of'isaid sewage works to the..
prompt payment of the principal?and'interest of thei~
bonds issued on account of~the construction of Said'.
improvements and extensions'~to the sewage works of
the Cit~ of which this is one, the now outstanding
bonds heretofore issued, and any bonds'hereafter is-'~ '
sued on a parity therewith, to'the extent required,
and covenants that it will cause to be fixed, main-
tained and collected such rates and charges for serv-
ice rendered by said sufficient in each
year for the payment of the proper and reasonable ex-
penses of operation, repair, replacements and mainte-
nance of said works, and for the payment of the sums
required to be paid into said Sewage Works System Rev-
enue Bond Account under the provisions of said Act
and said ordinance. In the event the City of Jeffer-
sonville, or the proper officers thereof, shall fail
or refuse to so fix, maintain and collect such rates
or charges, or if there be a default in the payment
of the interest on or principal of this bond, the
holder of this bond shall have all .of the rights and
remedies provided for in said Chapter 284 of the Acts
of 1967, and the acts amendatory thereof and supple-
mental thereto, including the right to have a receiv-
er appointed to administer the works and to charge
and collect rates sufficient to provide for the pay-
ment of this bond and the interest thereon.
The City of Jeffersonville further covenants that
it will set aside and pay into its Sewage Works System
Revenue Bond Account a sufficient amount of the net
revenues of said works to meet (a) the interest on all
bonds payable from said Revenue Bond Account as such
interest shall fall due, (b) the necessary fiscal agen-
cy charges for paying the bonds and interest, (c) the
principal of all bonds payable from said'Revenue Bond
Account as such principal shall fall due, and (d) an
additional amount as a margin of safety to create and
maintain the reserve required by the ordinance author-
izing the issuance of this bond. Such required pay-
ments shall constitute a first charge upon all the
net revenues of said works.
This bond and all other bonds of said issue shall
have all the qualities and incidents of negotiable in-
struments under the laws of the State of Indiana. This
bond may be registered as to principal at the office
of the Clerk-Treasurer in the City of Jeffersonville,
Indiana, in the name of the owner hereof, and such~
registration noted hereon by said Clerk-Treasurer.
Thereafter no transfer hereof shall be valid unless'
made at said office by the registered owner in person
or by his duly authorized attorney and similarly noted
hereon, but this bond may be discharged' from registra-
tion by being in like manner transferred to bearer and
may again from time to time ~be registered or transferred
to bearer as before. Such registration shall not re-
strict or affect the negotiability of~.the interest cou-
pons hereto attached by delivery only, but such 'inter-
est coupons shall always be. payable to bearer. ~'~i ..
The bonds of this issue maturing on December 1,
1979, and thereafter, are redeemable at the option of
the City, in whole or in part, on June 1, 1979, or any
interest payment date thereafter, in inverse chrono-
logical order of maturity and by lot within a maturity,
at face value, together with the following premiums:
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5% if redeemed on June 1, 1979, or thereafter
on or before December 1, 1984;
' 4% if redeemed on June 1, 1985, or thereafter
on or before December 1, 1990;
3% if redeemed on June 1, 1991, or thereafter
on or before December 1~ 1996;
2% if redeemed on June 1, 1997, or thereafter
on or before December 1,' 2002;
1% if redeemed on June 1, 2003, or thereafter~'I'
prior to maturity; ~-
plus in each case accrued interest to the date fixed
for redemption. Notice of such redemption shall be
published one time at least thirty (30) days prior to
the date fixed for redemption in a newspaper or finan-
cial journal of general circulation published in the
City of jeffersonville, Indiana, a financial journal
of general circulation published in the City of Indi-
anapolis, Indiana, and in,The Bond Buyer p~blished in
the City and State of New York, or if such financial
journal should cease publication, then~in another fi-
nancial journal published in the Cityand State of New
York. A like notice shall be sent by mail. to the hold~
ers of such bonds as are th~n registered. ' Interest on
bonds So Called for redemp%i0n shatt cease on the re-
demption date fixed in said notice, if funds are avail-
able at the place of redemption to pay the redemption
price on the date so named and when presented for pay-
merit.
If any bond or interest coupon shall not be pre-
sented for payment or redemption on the date fixed
therefor, the City may deposit in trust with The Clark
County State Bank, in the City of. Jeffersonvilte, Indi-
ana, an amount sufficient ~to pay such bond or intere~
coupon or the redemption price thereof, as the case
may be, and thereafter the holder shall look only to
the funds so d~posited in. trust with said b.ank for pay-
ment and the City shall have no further o~llgati~n or~
liability in respect t~ere~o.' .i'~.!i ~ ~
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 WHEP~EOF, the City of Jeffersonville,
in Clark County, State of ~.ndiana, .has caused this
bond %o be executed in its corporate name by its
Mayor, its c~rporate seal to be hereunto affixed and
attebt~d by its Clerk'~r~aSurer, and the~interest cou-
pons hereto-attached to be executed by-placing thereon
the facslmiiesignatures of said Mayor and ClerkLTreas-.; ' !
urer,: as Of'the first day o{ June, 1969.
CiTY~FTJEFFE~,.NV~LE
.~ ~' M~yo~ ~ ·
Attes~
reasurer -
ll -
(Interest Coupon)
Coupon No. $
On 1,
(unless the bond herein mentioned shall be subject
to and shall have been called for previous redemp-
tion), the City of Jeffersonville, Indiana, will
pay to bearer at The Clark County State Bank, in
the City of Jeffersonville, Indiana, or, at the
option of the holder, at the Continental Ill%nois ~
National Bank and Trust Company of Chicago, in thei
City of Chicago, Illinois, out of its Sewage Works?
System Revenue Bond Account,
Dollars in lawful money of the United States of Amer-
ica, being the interest then due on its Sewage Works
Revenue Bond of 1969, dated June 1, 1969, No.
CITY OF JEFFERSONVILLE
By (Facsimile)
Mayor
(Facsimile)
Clerk-Treasurer
REGISTRATION ENDORSEMENT
This bond can be registered only at the office
of the Clerk-Treasurer'in the City of Jeffersonville,
Indiana. No writing hereon'except by the Clerk-Treas-
urer.
In Whose Name.
Date of Registry Registered ' Clerk-Treasurer
Sec. 7. The
rected to have said
and Clerk-Treasurer are hereby
hereby authorized
prepared, .and the
and directed to exe-
cute said bonds and the interest.coupons to be attached there-
to, in the form and manner herein~provided. After said bonds
have been properly executed, shall be au-
thorized 'to deliver the~bonds [, purchaser and t~re~eive
the purchase price thereof, .which~:shall not be less than the
face value of said bonds, plus accrued interest from the date
thereof to the date of
~ oonds herein authorized,
when fully paid for and delivered to the purchaser, shall
be t~e binding special revenue obligations of the City, pay-
able out of the revenues of the City's sewage works to be
set aside into the Sewage Works System Revenue Bond Account
as herein provided, and'the proceeds derived from the sale
of said bonds shall be and are hereby set aside for applica-
tion on the cost of acquisition, construction and installa-
tion of the improvements and extensions to said sewage works
hereinbefore referred to, and the expenses necessarily in-
curred in connection therewith; The proper officers of the
City are hereby directed to draw ~11 proper and necessary
warrants, and to do whatever acts and things which may
necessary to carry out the provisions of this ordinance~
Sec. 8. Prior to the sale of said bonds the Clerk.
Treasurer shall cause to be published a notice of such sate
once each week for two (2) weeks in The Evening News and the
Clark County Journal, newspapers published in the City of Jef-
fersonville, and one time an The Indianapolis Commercial, ~the
last publication to be at least seven (7) days prior to the
date fixed for said sale. Saidlnotice or a summary thereof
may also be published in a newspaper or financial journal pub-
lished in the City of New York,~New York, in the discretion
of the Clerk-Treasurer. The bond sale notice shall state the
time and place of sale, the character and amount of the bonds,
the maximum rate of interest thereon, the terms and conditions
upon which bids will be received and the sale made, and such
other information as the Clerk-Treasurer and the attorneys
employed by.the City shall deem advisable. Said.notice shall
provide, among other things, that each bid shall be accompa-
nied by a certified or oashier~!s the amount of two
- 13
per cent (2%) of the principal amount of the bonds, to guar-
antee~'performance on the part of the bidder, ·and that in the
event the successful bidder shall ·fail or refuse to accept
delivery of the bonds and pay'for the same as soon as the.~
bonds are ready for delivery; .or at' the time fixed in the~
notice of sale, then said check and the proceeds thereof
shall be the property of the City and shall ~e considered as
its liquid~ted damages on account, of such default.
All bids for said bonds shall'be sealed and shall be pre.
sented to ~he Clerk-Treasurer at hzs offzce;~ ~Bldders f r
bonds shall be required to'name th~ rate rates of interest
which the bonds are to bear, .notexceeding the maximum rate
hereinbefore fixed~' Such interest rate or rates shall be' in
multiples of one-eighth (1/8) orlone-tenth (1/10) of One per
cent (1%), and not more than '.(5) different
shall be named by each bidder, rate may b~
out being considered a dif
than one interest rate shall
interest rates
with-'
more ~
-turities of the bonds bearing eac rate,
lng on the~same date shall bear~the same rate~i~ The differ-'
~ence between the highest rate ~.d lowest rate in a bid shall
not exceed a rate differential o,f (2%).. The in-
terest' due on any'. interest p~
· awarded bye' the Clerk~Treasurer
der who has submitted his
this ordinance and the
be the one who offers the lowest ~t,cost to:the City,
to be determined by computing the total interest on all of the
bonds to their maturities and
therefrom'the premium
bid, if any. No bid for less than the par value of said
bonds, including accrued interest to the date of delivery,
shall be considered. The right to, reject any and all bids
shall be reserved. In the event an acceptable bid is not
received on the date fixed in the notice,
urer shall be authorized to continue the sale from day to
day for a period of not to exceed thirty (30) days, but dur-
ing such continuation no bid shall be accepted which is low-
er than the highest bid offered at the advertised sale.
Prior to the delivery of said bonds the Clerk-Treasurer
shall obtain a legal opinion as to'the validi~y~of the'bonds
from Ice Miller Donadio & Ryan, as bond counsel for
the City, and such opinion shal~ ~E
ers of the bonds at the expense of the City. The fee of such
bond counsel shall be considered as~a part of the cost of the
project on account of which said bonds'~are issued and shall
be paid out of.the proceeds of said bonds.
Sec. 9~ The accrued interest and premium received at
the time of deli
posited in the Sewaqe Works System Revenue Bond Accoun~herg~
inafter referred to~. The remaining.proceeds from
said bonds shall be deposited in bank or banks wh~¢h are le
gally designated depositories for the funds of the City, in
designated as C~ty of
special account or~ accounts to be ' ' Jef~
fersonville, Sewage Works Construction Account." Ail
deposited to the credit of sai~ Sewage Works Contruction Ac-
count shall be , secured or il :
ance of the State Indiana~ relating to the
depositing,"iholding, Securing. or~ i~est~ng of~ public funds,
including particularly Chapter 9~ :~e Acts of 1945 as
amended. The funds in said special account or accounts shall
be expended only for the purpose of paying the cost of the
improvements and extensions to the works, as defined in Sec.
1 of said Chapter 284 of the Acts of 1967, or as otherwise
required by said Act. Any balance or balances remaining un-
expended in such special construction account or accounts af-
ter completion of the improvements and extensions to the works,
which are not required to meet unpaid obligations incurred in
connection with such construction, shall be paid into the Sew-
age Works System Revenue Bond Account and shall be used sole- -
ly for the purposes of said Account.
Subject to the approval of the Board of Public Works and
Safety, the,Clerk-Treasurer shall, be authorized to invest in
direct obligations of the United States Government such por-
tiontol the funds in said Construction Account as shall not be
required for immediate use, provided that no such investment
shall be made at a cost in excess of the par value of the se-
curities purchased, and that none of the funds shall be in-
vested in any securities the maturity date of which is'later
than the time when such funds are required to be available for
the purposes thereof, or if the' time when such~funds
required for use cannot be ~ investment
be made only in securities having a-maturity date of one (1)
year or less from the date of purchase. Such investment shall
be made in strict accordance with the provisions of Chapter 9
any interest or other accretions derived from a~y such?in-
vestments shall become a part of ~the funds invested.
formity with the provisions.
statutes',
16 -
shall be entitled to a lien on the pro-
'ect
holders of said bonds
ceeds'of said bonds until the same are applied on the ]
on account of which said bonds were issued., ~ ~'
Sec. 10. The special fund created and designated as the
"Operation and Maintenance Fund" by Ordinance No. 1607,
amended, is hereby designated and constituted ~the Operation
and Maintenance Fund under this ordinance, .and on the first,,
day of each month there shall be set aside and paid into said
fund an amount which with any unexpended balance therein is
considered necessary and sufficient to pay the reasonable cur-
rent expenses of operating and~ maintaining Said municipal sew-
age treatment works for the current month. After said. first
day of the month further payments,may~be made into said_ifund
from the gross revenues of the works but only if and to the
extent necessary to pay such ~operation and maintenance e
penses actually accrued and payable and to the ·
funds for such purpose are not then available.
Sec. 11. The special fund ~esignated "Sewage Works
System Revenue Bond Account". created by Ordinance No.
1607, adopted on October 7,~1963; ~for the pa ~yment of the
principal of and interest on'the now outstanding Sewage
Works Revenue Refunding Bonds/authorized by said ordinance,
is hereby designated and constituted the, sinking fund for,
the payment of the interest on and Principal'of the reve-
nue bonds herein authoriZed to.be issued'on account cf the
construction of said improvements~and e~tensions, and any
bonds hereafter issued on a
,ment of any fiscal agency charges in connection
payment of bonds and interest coupons~ There shall be set
aside and paid into said Sewage W~orks S'
Account (hereinafter called "Sinking Fund") such amount as
will he sufficient to pay the principal of and interest on
all bonds payable from said account as the same respectively
become due and to maintain a reasonable reserve therefor. It
is hereby determined that the minimum amount to be so set
aside into said Sinking Fund during the periods of twelve
(12) months preceding November 30 .of each year shall
less than as follows:
A sum equal to one hundred per cent (100%)
the principal of all bonds payable from said Sink-
lng Fund maturing an the-De0ember 1 next succeed-
ing, plus a sum equal to one,hundred per cent (100%).
of the interest becoming due on and~prior to the
December 1 next succeeding on all of~Said ou~stand-
ing bonds; provided, that until there has been ac-
cumulated in such Sinking Fund as a reserve an
amount equal to one (1) year's average principal
and interest on the bonds then
amounts to be so set apart and paid shalllbe c
hundred twenty per ceni amoun
puted .and determined as
and
so; that no further payments ~eed be made.:
Sinking Fund When and so'long as
is sufficient to retirelall of said bonds
standing and pay all inte
prior to such retirement
Such payments into said
monthly installments
When the first ?ay of any month shall be a
day, then such paymen
.:.therein ';:
the~
,equal
cept that
~' or ~a
18 -
lar day. The amount by which any such payment in any year
exceeds the aggregate amount of interest and the amount of
principal as the same become due shall be held in said spe-
cial fund as a reserve for contingencies and Used solely as
herein provided.
Whenever additional bonds ranking on a parity with the
bonds hereby authorized are issued under the conditions and
restrictions hereinafter set forth, provision shall be made
for additional payments to be made into said Sinking Fund
for the purpose of meeting the interest on and principal of
said additional bonds as and when {he same become due and to
provide a reserve therefor.
If in any year the City shai~for any reason fail to pay
into said Sinking Fund the full amount above stipulated, then
an amount equivalent to one hundred twenty per cent (120%) of
such deficiency shall be set apart and paid into said Sinking
Fund from the first available net revenues, being the gross
revenues after deduction of reasonable operating and mainte-
nance expenses, 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.
If for any reason the City shall fail to make any such
payments into such Sinking Fund, as aforesaid, ~during any
year, any sums then held as a reserve for contingencies shall
be used for the payment of any po~ion of the principal~and/or
interest as to which there would otherwise be default, but such
reserve shall be reimbursed therefor from the first available
payments made into the Sinking Fund in the following year or
years in excess of the required payment for the ~hen current
fiscal year.
- 19
Ail moneys held in said Sinking Fund shall be deposited
in banks and all such deposits in excess of Ten Thousand Dol-
lars ($10,000) in any one bank shall-be continuously secured
by a valid pledge of direct obligations of the United States
Government having an equivalent market value or shall be in-
vested in direct obligations of the United States Government;
provided, however, that a sufficient amount of such obliga-~
tions shall be sold in the event that it shall prove neces-
sary to draw upon said reserve investments.
In the event the net income and revenues during any
month are inadequate to make the r~quired payment into said
Sinking Fund, the deficiency shall be made up and pa~id as
aforesaid from the first net income and revenues thereafter
received, such net revenues being the gross revenues after
deduction of reasonable operating and maintenance expenses,
and same shall be in addition to payments otherwise provided
to be made in such succeeding month or months. The "Sewage
Works System Revenue Bond Account,"~ as aforesaid, shall be
used solely and only and is hereby pledged exclusively for
the purpose of paying the principali.~of and interest on the
bonds herein authorized to be issued, and bonds ranking on a
parity therewith.
Sec. 12. The special'fund created and designated'as the
"Depreciation Fund, by said Ordinance No. 1607, as amended, is
hereby constituted and designated the Depreciat
thisordinance, and there Lid each
year into said fund from the balance of the ~net income and
revenues of the municipal sewage treatment works remaining
after first making the required payments
Works System Revenue. BQnd Account the
20 -
into the "Sewage
One Thousand
Dollars [$1,000) on the first dayof each month in each year
until such time as there has been accumulated in said
ciation Fund the sum of Fifty Thousand Dollars ($50,00(
moneys credited to shall be
accumulated to pay any extraordinary cost
sewage treatment works in an efficient operating conditior
and to pay the cost of making any.improvements,
additions or constructions
deposit in said Depreciation Fund
credited to the "Sewage works S~
whenever necessary to prevent or. r6medy
The moneys on
ansferred
Bond Account'!
a default in the pay-
ment of the principal
to be issued under
ing on a'parity
th authorized
is~ordinance or bonds :-
to whatever extent it may
become necessary =o use
the foregoing purposes,
L reserve for any of
said Depreciation Fund
shall be resumed at the rate
sand Dollars ($1,000)
each month until such time as the money on deposit in said
fund again equals Fifty Thousand Dollars ($50,000). Any ac-
cumulations of such Depre~iation~Fund may beinvested as the
Common Council may' designate a~d,~ if invested, the' income
from the investments shall' be c~rried in the Depreciation
Fund, and said fund and the proceeds-thereof shall not be
used for any purposes other than as. herein provided.
Sec. 13. The special fund created and designated as the
"Special Investment Fund'! by Ordinance NO. 160
ed, is hereby nated Inves
ment Fund under thJ
and paid into said fund al~
the sewage works
income and revenues of
fi=st makin¢
required payments into the "Sewage Works System Revenue Bond
Account" and the "Depreciation Fund." Ail moneys credited
'to said "Special Investment Fund"!~shall be transferred and
credited to the "Sewage Works System Revenue Bond Account"
whenever necessary to prevent or remedy a default in.the pay-
ment of the principal of or interest on the bonds authorized
to be issued under the terms of this ordinance or bonds rank-
ing on a parity therewith, and all of such money not required
to be used for preventing or remedying any .such default may
b~ Used~0 pay operation and maintenance expenses actually
accrUed and payable to the exten~at~funds for such pur-
pose are not then available in the Operation and Maintenance
Fund, to pay the
or improvements,
cost of additionaljsewage treatment works
extensions, additions or constructions to
the municipal sewage treatment works, or to purohase
said bonds then outstanding at not exceeding par and accrued
interest, and if and to whatever extent not'used for any of ·
the foregoing purposes, such remaini..ng net income and rove-
nues shall be accumulated, used and applied to call and re-
· deem such bonds
maturity. All moneys held J
vided under the terms of
in lawfuldeposit0ries~f~th~
held and secured as.provided
diana ~ ~t2
as may be then Subject to redemption prior'to
)arate funds pro-
i~L14. While the bonds
of them, 'remain outstandin(
ices rendered by the said sewage
and to -=ns,~
cons
shall be reasonable and just, taking into account
eration the cost and value of said sewa( )rks 'and
the cos and operating th~ same and prop,
er and necessary allowances for depreciation thereof
amounts necessary for the retirement of all bonds and the ac-
on all such bonds as may be issued and are un-
paid under the provisions of this ordinance and
on a parity,therewith, together. With. a reasonable reserve,~ ~
there shall be charged against all of SdCh citizens, corpora-
tions and others, such rates and amounts as shall be
to meet the requirements Of this and the
hereof.
Insofar as consistent with the'laws of Indiana, said City
agrees that so long as any of the bonds herein authorized re-
main outstanding it will keep proper books of and. ~ ac-
count, separate from all
showing complete'and correct'
ing to said sewage treatment
ers of said Sewage ~orksi'Revenue
ing shall have'_the.r~ght,.~
)al records ~ ·
all.transactions relat-
holder or
accounts and d~' 6f the, City .u
shall require the person in ¢
works to make amon. thl~ repor~t to the common
operation Of the works, of the re
and disbUr: and the of ! to the
as requir~
each
chaser of ,th(
11 be
hereby
author1:
~ · that it will withi] ~
's
calendar year cause an accounting study and report o:
books and accounts to be made by a certified public accoun~-
ant not in the regular employ of the City showing the
and disbursements for account 'of the municipal sewage
ment works and facilities and that copies of such re
be forWarded to any holder of any ~of the bonds authorlze¢
be issued un~er ~e terms ~ ordinance upon re¢
Each such report, in addition Whatever.matters may~
thought proper~by the accountant to be included therein
shall include the following:
{a) A statement in detail of the income and
penditures of the municip
.works for such year.
(b)
The accountant's comments regarding the
in which the City: has'carried out the rec
ments of this
tions for any
-operation of
(c)'~'A list of
ordinance, and his
changes or.Improvements in
and facilities~
allthe<insurance in
end o~ th9 period~
and :.Operati0ni
. The .
covenan
and agrees with the holder or holders 'of the bonds herein au-
thorized to be issued, and any o: will faithful-'
ly and punctually perform all
~s with reference to
sewage treatment works required by
- of the State of 3'Indiana, including the making and co/
of reasonable and sufficient rates for services rendered
by, and will segregate the revenues of said works and make
apPlication thereof into the respective funds.~.provided by'this
ordinance; and the City hereby.~irrevocably covenants;~binds
and obligates itself not to sell, lease, or in-any
manner dispose of said sewage~rea~ment works, including any
and all extensions and additio~ that be made th,
until all of the bonds herein au~.~ized
bonds ranking on a parity therewith shall ~ave been paid in
full, both principal and interest, or unless
provision
further covenants and agrees w~ Df said bonds
to maintain in good condition and ~ontinuously o~ e said
sewage treatment works and to charge and collect such rates
and charges for services rendered
revenues b
tion and
fa~iiitieS insUred againSt ioss'~r.~
of a responsible insurance company or companies authorized
and qualified under the laws of the State of Indiana to as- i
Sume such risks.' coverage Of insurance shall be for the
full amount of the'insurable ~ubject to the deduction
from any loss or damage (except in case of a 1 loss
not more than five per cent (5%) of such insura~!e ~alue,.
and further covenants and said City~ agrees in like manner to
carry public liability and property damage insurance
ing such risks and for such amounts'as th~ Board of
Works and Safety of said City determines from time
to be necessary or advisable by,reason of the chara
the operation of the works and facilitiesi~
moneys received for~losses under insurance poll
other than public liability, shall be l ~n maki~g~
the loss or damage in respect of which they were paid either
i by repairing the property damaged or.
destroyed, and provision for .mak
age shall be made withi
loss~ The proceedsderived'from
lic~liability shali"b~used
which they were ·
surancepolicies required
shall be considered an operation
Sec. '16 For the further protection o~ the
the bonds herein authorized to:be issued and
to at~ached, any holder of said
, of~e~%co~pons
may, either at law or' in equity.,
other proceedings~-enforce and compel performance .of
ies imposed by law' and this ordinance; including the~maki
and collecting of sufficiel
the income and revenues and the application thereof.
If there be any default in the payment of the prlnc
of or interest on any of said bonds, then upon the
suit by any holder of said bonds;'any?court having j~
tion of the action may appoint a receiver to
sewage treatment works on behalf of the City, with
charge and collect rates sufficient to provide for
ment of any bonds or obligations outstanding agains
works and for the payment of the operating expenses,
apply the income and revenues in conformity with
nance~and the provisions of the laws of Indianal
Sec. 17. The bonds authorized.to be issued here
and from time to time outstanding~shali not be
priority one over the other an 'the application of the
nues of said sewage treatment works, regardless of
or times of their issuance, it being the ~intenti0n
shall be no priority among the bonds aut]
under the provisions of this ordinance,
that they may be actually :
times, and provided
other bonds or obligations herea issued
from the income or revenues
f and. for
sewage =re
sonville hereby reserves the right_~
additional bonds from time
source and ranking on a parity with the
ized to ~'~'~issued in order to pay~ the cost ¢
age treatment ~orks or additions
~ of
extensions or constructions to ~e
ment Works but only if there .s~ll have first been
cured and filed 'W.~h the
urer (
:statement by an independent
not in the regular employ of the City reciting'the (
b. ased upon necessary investigations that the hgt..revenues
of said municipal sewage treatment works for the~precedl g
calendar year (with adj hereinafter provided)
were equal to at least one and'~e-half
average annual principal and interest requireme
'-annually on
be
bonds then outstanding and the
issued, and provided also that the
for any such additional
i and December 1 of each
ritie~
of such additional bonds Shall be on December
of subs tan~~
for th~.wo~ks'and facili~
appli¢
into~:~ritten
ly
is
1 of
the year in which
come due~-andprovided
any such additional.bonds it has
tracts for~the immediate acqu
~the necessary materials
constructed or acquired
ofsuch
net revenues"-.are defi
recognized acc°untingl praeti~.l ·
but "shal
ad-' ~.d
an independent consulting
City and not otherwise
treatment works of said City,
extensions or constructions ther,
revision in the schedule of ra
not in the employ of ~he
the municipal sewage
o, so as t° refle6t (1) any
ges being~:imposed ·
at the time of the issuance of any such additional bonds
(2) new customers or other significant reasons for
increases in the income and revenues of the munici
treatment works.
Sec. 18. The provisions of this ordinance shall
tute a contract between the City of~jefferson~ille and
holders of the bonds herein authorized to be issued,
ter the issuance of any of the bond~, 'no changer
or alteration of any kind of the provis
shall be made in any manner.
herein
all of said bonds issued~hereunder
teres~t thereon have been p
Sec~ 19. If any section, parag.~aph, clause
sion of this ordinance shall be held to be invalid,
the i
validity of such
shall not affect
ordinance.
section,
any of the
clause or
Sec. 20. Ail ordinances
flict herewith are hereby repealed;
this ordinance shall not be construed as repea!i
ing any of the provisions of Ordinance No. 1607
October 7; 1963, or Ordinance No
4, 1963.
S~c. 2i. This ordinance shall b,
:rom and
pass~
Passed
Of Je~ersonville on day of J ~ ~ 5/ ,
and adopted by the Common Council' of the City
1969.
Attest: ·
!asurer
Presented by me to the Mayor of the City of Jefferson-
ville on the fy day-of
/~0 ~ .M.
, 1969,
at the hour of
This ordinance approved and signed by me on the
day of U , 1969, at the hour o~ 0o