HomeMy WebLinkAboutCrowe ChizekFrom-Crowe Chizak
T=033
p.oog/O03 F,!38
Crowe
November 10~ 2003
Ms. Pegsy Wilder
Clerk Treasurer
City of le
501 Eask
In re: Cit)
WorkS' ~low of F'~ttcl~ and Fund Balances
Dear Peggy:
Following
Wo:~s (Utility)
City
Bonds)
Sec
' ~e flow of f~d~ for tl~e City of jeffezsonville !v~unic~pal Sewage
: out ~ Or--ce No. 9~R-4I (1995 ~,[~ce) w~ a~o~ed ~e
Ke~di~ Bon~, Se:ies 1995 (1995
, ~a Sewase WO~ K~ue ·
qo. 98-OK-27, ~ am~ded (1998 Ozd~ce) w~ au%ho~ed ~e Cz~
ge Woz~ g~ue Bonds, S~¢~ 1998 (1~8 BondS), ~d ~ ~
Works R~ue Bonds, Se~e:~ 1999 (1999 BondS).
14 of ~e 1995 ~ce ~d S~om 13 ol ~e 1998 Ore,ce ~tab~ ~e
the Reserve
calendar monk,
' Revenue Fund
Operation and Maintenance Fund
Find, which is cOmprised of ~I~ Bond and IntereSt Account and
Fund
Operation and Maintenance Fund
, the Ui~ty is to be placed ~n the Revenue Fund. On fire last day of eack
to tke Operation and
s a:e to be transferred from the Revenue Ftmd. ' d
for the paymen~ of ~e reasormble and p~oper OlVera[i°~, repa~
. ~d Ma~ca F~ ~ sk~ld be ma~{a~ed a~ a
~s o~ ~era~on~ ~epa~ ~d ~ce for ~e
bal~ce s~c{en~ ~ ~ay ~e expe · ' ..... ,~- ~ast ~al ~es~, we es~te
bal~e shoed be: ~ppro~a~ely ~00,000 ~or [ke ~erafi~ ~d Marten~ce
Sinking l:und
The
1998 Bonds, and
Sinking Pund is used to make debt sarvi~ e paym. eaxts on the 1995 Bc~ds,
~ Bonds. ~acl~ r~omt-,% 1 / 6m of the s~'ose~Iuent tnteres~ p~ymem~ ~nd 1 / ].2m
Nov- 0-03 l~2:O~,pm From-Crowe Chizek
November 10, 2003
p~ 2 of :2
T-035
p 003/003 F.738
o~
t fo?he 1995 Bond~, the t9')8 Ben&% artd ~e 1999 Bon~
~ tq ~e Bond ~d
~e R~e Accost of ~e S~g l:~ is to be held as a ~ of
~e b~c . ' ~e am~t of p~dp;~l md ~terest on ~e 1995 ~nds,
d~a~t m _P -- . ...... ~ ~ a,llv ~d~ ~d no money
s~e~ ~n~. ~e K~e~e ~c~v~
~e ~998 Bomds, ~d
Improvement Fund
Any
Improvement Fund
the Utility. Moneys
AccOUnt to l~revent
Money~ can ~o ~
Txan~fer/rom the ]
The OF~atic~a and
trander all the ~on
Once the Operatior
~em~ane making
Ifyouhave any qu
Respectfully subn~
]e~ui[er Z. Wilson
a~ter the paylnent of operation and m~t~ce e~e~es, ~ ~d~g
M~ce ~d b~ce, ~ ~e ~i~ ~ ~e Bond ~d ~te~st
~h~d be ~med to ~e ~p~t ~d. ~e
..... ~ aa~o~ md ~ten~o~
be ~ed fo~ ~pr~, xeplac~,,~, . F~d cmbe ~sfe=cd to ~e Bond ~d
deia~t ~ ~ pa~ent o[ p~P~ md h~texest on ~e ~ bon~-
~ ~e Kes~e Acc~t to ~e up my defd~ or ~y be
: the Utility,
o ~he Operation and Maintenance Fund
. $1,345,740.06 and
~ Ftmd currently has a negaixvc balance of that the Utility
b.~l~rtce of $1,556,761.17. ~/e Tecommemd
~ ,-..-~ ~ +he C~eration a~d Maintenance l=und-
,,,a i~ the Im~ovemen~ c~'~ ..... r. . ~ ~ ram the Utility ca~n
axial Maintenance l-trna ~,~, r
mi~rs to the Improvement Fcmd.
sti~ns concerrdllg the above~ please give me a call at ($17) 269-6696.
ted,
of the proceeds derived from the sale of the bonds authorized hereby shall be and are
hereby set as/de for application on the cost of the Refunding.
~/~~,~2~. Th~ proceeds of the such bonds to be applied to the
Sec. 9.
payment of principal of and interest and premium on the Refunded Bonds shall be
deposited in escrow pursuant to the Escrow Agreement. The balance of the proceeds of the
bonds shall be used to pay costs of issuance of the bonds and other inddental expenses.
The ,Escrow Agreement shall b.e in customary form, as approved by ~e Mayor or the
· .. ' s~ ature thereon. The moneys depo.s~ted pur.sua.? to
Cl-rk- urer as exndeneed by his. ~ ..... ,, ~._ ~,~a o, cash or invested m direct
- ~-~ Treas----~,ment *to ~ out tlae liellnlolng sllatt v~ ~-,, ,~
the tascrow ~g~ ........ · ......... which are unconditionally
· · ' rinci at aha interest ~ - . '
' attous of, or obligations the p__~p.~a ~ irrevocabl~ set astde and pledged
oblig ........ ~ ~mtes of Ame,,,~, and shall__ -
guaranteea vy, ~e umr=u o the Clerk-Treas~xer are each here.by authorized to enter
such ose. The Mayor .and .... --. ~-~,~, thonzed to ay the charges
for purp .... ~ .~, ',erlc:~ reasure~ ~ ,~-,-~: au P
into the Escrow Agreemen~ ~m,, ,~* ~-·
The entry by the City into the Escrow Agreement and
for the services of the Escrow Agent. City, and the taking of such other
the execution of the F, scr6w Agreement on behalf of the
effect the Refunding
action and the execution of such other instruments as are neCessary t~rdlnance, hereby
~tt~o~ized, approved and rattuea.
. enue~ The interest on and the principal of the Bonds
: . 10 Pledge of Ne~ Rev _ .. · . ~^ hereafter issued on a
Sec_ · .- · · ~ .~.~ ~rdmanee, and any ~,,nds
issued pursuant to the prowSwnS vx ~o '~ Section 20 hereof, on all the net
parity therewith, shall constitute a first charge, subject to
revenues, and such net revenues are hereby irrevocably pledged to the payment of the
interest on and principal of such Bonds, to the extent necessary for that purpose.
Sec. 11. ~qewage Wor~s Revenue Fun~ All revenues derived from the operation of
the sewage works and from the collection of sewer rates a~ chuges shall be deposited in
the Revenue Fund, created by Ordinance No. 90-OR-53. and herein continued, and
segregated and deposited as set forth in that ordinance. Of these revenues the proper and
reasonable expenses of operation, repair and maintenance of th,e works shall be paid, the
- ' ~ or ,-avlno agents
fiscal.agoncychargesoxreg~sum~ e ~ ~
principal of and interest on all bonds and tranderred to
shall be paid, and the costs of replacements, extensions, additions and improvements shall
lqo moneys derived Dom the revenues of the sewage works shall be
be paid. City or be used for any purposes not connected with the sewage works
any other fund of the
so long as any bonds payable from the revenues of the sewage works are outstanding.
On the last day of each
Sec. 12. ~ewag¢ W0rl~s Overatlon and Maintenance Fund. from the
calendar month, revenues of the sewage works shall thereafte, be transferred
Revenue Fund to the Operation and Maintenance Fund, created by Ordinanc. e No. 90-OR-
expenses of operation, repmr ann mature
months. The moneys credited to this Fund shall be used for the payment of the reasonable
and proper operation, repair and maintenance expemes of the sewage works on a day-to-day
· ,,,, mt~nles in said Fund may be transferred to the Sewage Works Sinking Fun.d. if
bonds of the sewage works.
Sec. 13. Sewage'Works Sinking Fund.' (a) There is hereby continued a s/nki~g fund,
created by Ordi~c~ Bio. 90-OR-53, for the payment of the priudpal of and interest on
revenue bonds which by their terms are payable from the net revenues of the sewage works
and the payment of any fiscal agency charges in connection with the payment of bonds,
which fund shall be designated the ~Sewage Works Sinking Fund" (herein, "Sewage Works
Sinking Fund" or "Sinking Fund"). There shall be set aside and deposited in the Sinking
Fund, as available, and as hereinafter provided, a ~_~fficiant amount of the net revenues of
the sewage works to meet the requirements of the Bond and Interest Account and Reserve
Account hereby created in the Sinking Fund. Such payments shall continue until the
balance in the Bond and Interest Account and the Reserve Account, equal the principal of
and interest on all of the then outstanding bonds of the sewage works to the final maturity
_and provide for payment~of all fiscal agency charges.
(b) Bond and Interest Account. Any moneys he.r?.tofore accumulated to pay
princlp~l'of and interest on the Refunded Bonds, after provadmg for the next payment of
principal and interest on the nnrefunded maturities, shall be credited to and become a part
of the lEscrow 3~ccount under the Escrow Agreement and shall be applied on the first
payment made from the Escrow Account. Beginning as of the date of issuance of the
Bonds, there shall be credited on the Iast day of each calendar month from the Revenue
and IntereSt Account an mount of the net revenues equal to (i) one-s.'.~th
Fund to the Bond . . . . J. _ ~.2..n; .~g~,gi ': e thin next succeeding
(1/6) of the interest on all men outstanding uu,~,,o k,,~j,~,--e ou th
interest payment date and (ii) one-twelfth (1/12) of the principal of all then outstanding
bonds payable on the then next succeeding principal payment date until the amount of
interest and principal payable on the then next succeeding respective interest and principal
payment dates shall have been so credited. There shall similarly be credited to the account
any amount necessary to pay the bank fiscal agency charges for paying interest on
outstanding bonds as the same become payable. The City sh~ll~ from the sums deposited
in the Sinking Fund and .credit. ed to the Bond and Intere~t.~ognt,.remit o.ne business day
prior to any interest and/or prindpal payment date immediately avadable funds to the bank
fiscal agency charges in amounts sufficient to pay the interest and principal on the due dates
thereof together with the amount of bank fiscal agency charges.
e? deli e, of the onds, deposit
(C) ~ ~ and funds from the reserve provided
available and unrestricted Iunas et me sewag~
for in the Sinking Fund of the Refunded Bonds, into the Reserve Account in.an mount
equal to the least of (i) maximum annual debt service on the Unrefunded Bonds and the
Bonds (the ,Outstanding'Bonds") (ii) 125% of average annual debt' service on the
Outstanding Bonds or (iii) 10% of the proceeds of the Outstanding Bonds ("Reserve
Requiremenff). The balance in the Reserve Account shall never exceed the Reserve
-15-
Requirement. The Reserve Account shall constitute the mar/jrt for safety and protection
· t default m the payment of principal of and inte. res, t on the .Bonds, and thc moneys
ag ~a~ ~ __~..., ~on t~e used to oay current pnnapal and interest on the Bonds to
in.the Reserve ~ccou~t o,~,~" ~'
the ext~nt the moneys in the Bond and Interest Account are insufficient for that purpose.
...... -'-,~-, ance maintained in thc .g~.rv~.A;ccg..~
Any oe~aency m ~,- bal. . _~. .... dits into me ~ono v. uu
the'next available net revenues remamm~ m~- ,~,-,~ Requirement may, in the
· . .... ~-,-. ~ ~-ans/erred to the Improvement
Any moneys in the Reserve Account in excess of the ReserVe.
4. .'-- -* the Board of Public Wor~s .a~..a om~y., ~'-.'~ .~7,~_,. of..rind~al of Bonds
atsereuo.a m .......... ,.:~ of °uts*~ndinu bonds or msmum~a~,
Fund or be usea zor me Pm~'~
at a price not exceeding par and accrued interest.
Sea 14. ~ewa~e Works Improvement Fund. Any excess revenues may be tranderred
or credited from th~ Revenue Fund to a fund, created by Ordinance No. 90-OR-53 and
hereby continued, designated the "Sewage Works Improvement Fund, ~ and said Fund shall
· . nts, additions and extensions of the sew. age works...As
~,~ ~1 fo mavrovements, replaceme . _ --~-~
· ,~*he date of the oeltve~J o~ m~ uu.~.~,, ~ . .- a.~ *~rms of this oramance
sewage works not othervns* ,~o.~. ~--- - - -'- ~--ital imcrovements or
ment Fund and used tot.sewage wotr~ ~,v ~ ~ shall be
tr~nffcrred to the Improve , .--- ~ ~ *~,~ So.~e Works Improvement ~una .
for any other lawful purpose, xvma~ ~ ...... ~ prevent a default in the
transferred to thc Sewage Works Sinking Fund ff necessary to
~avment of prmapal of .... ,-: .... ~alance in tl~c ~eserve Accoun ~. .,
x , . · ' or ~"'"' uo~*.--.. '
eliminate any deficiencies in credits.to ,. ~__~ .~ +~.~ t-~eration and Mmntenance ~un
- Fund or may t~ . · · ce of the sewage
Sewage Works Sinking ....... emtto" renatr and mamtenan
tO llleet unforeseen cortllngenctes m tae up*~a~ ~, r
works. --~ - o'----~taneonslv with the issuance of the ..bonds,
co~ aq. Rever,ion of Flow or l~unug..~m~-_. ~_ :~;~l~i[~& vm-suant to Ordinance
- --- and investments m thc funds an?..ae~o_~ '; . . ... ~,~__~ shall be used, after
the raon~y~ ~m ~ .. ..._ ,,n r~l~.~o ttlle "F_,xistlllg
blo. 90-OF.-~o auu - forth in the Escrow Agreement, and
providing for the Reserve Requirement, as set
transferred and deposited into the Funds and Accounts established by this ordinance as
txansfcrred moneys and
provided in Sections 11, 12, 13 and 14 hereof- Thereafter, all such
investments, together with revenues of the sewage works, shall be applied by the City in
accordance with the terms of this ordinance so long as the cash and Government
· ' w A eement are available and sufficient to pay
r~.u~*lan~ on deposit under the Escro . gr~e ~ ~-n ~.as In the event that the cash
'".~'o~'F,'~-- -~'n~ival of and interest on the ~etuna~ ~,,,,,~ interest earned
and Government Obligations, together with any increment thereto and
ereo will not be s~ffi~e,nt P Y.. 'ties the City covenants .ann
th ~, . . ct~ve final matun , · of the
onds to and including me~r respe - - ' d in accordance vath the terms .
~i~the revenues of the sewage works shall be applie claim of the owners of the Bonds
ordinance authorizing the Refunded Bonds, and (ii) the
is in all respects junior and subordinate to the rights of the holders of the Refunded Bonds
under said ordinance.
-16-
Section 1:3. l~tmds,,,and. Accounts
(a) ~hp~.ge Works g~ue Fund. ~ ~ d~v~ ~om ~e ~ of,~'
~e wor~ md ~om ~e ~ion of~w~ mt~ ~d c~ ~ be d~t~
~d ~n~ h~n. ~e r~u~ ~ ~e R~ue F~d, the proper ~d r~mble ~p~
~n& ~d fi~ ~ ~g~ of~m or pa~ agents ~ ~ p~ ~d &o roms of
rep~mm, em~ions,.~fio~ ~d ~provem~ts sh~l be p~d. No mone~ de~ed bom.~e
~ of&e ~ge w~ ~ ~ m~ m ~y o~er ~d of~e C~ or be
pu~ ~t ~M ~th ~ ~e wo~ so long ~ ~ bonds ~y~le bom ~ r~u~
of~e s~ge w0~ ~ ou~ding.
~) Sewage Works Operation ~d Maintenance Fund. ~ ~ t~t day of
mon~ r~enues ofthe s~ge works shall be tr~ed bom the R~mue FuM m ~e
Ope~on ~d ~ce F~ mnt~ued ~ 1995 Ordh~co ~d ~r(m (~e "O~on ~d
M~mce FindS). ~e b~an~ main~ed in t~s Op~fion and M~t~ce Fred
~d~t to pay ~e ~s ofopemio~ rep~ ~d ~te~e for the ~en ne~
~ (2) ~d~ m~. ~ mn~ ~t~ to ~s Operation ~d ~te~ce Fred
~ for tho pa~ of~e r~mble ~d pmp~ ope~tio~ gpak ~d ~i~ce ~ens~ of
&e ~ge wor~ on a d~-to~y b~, but none of ~e moneys ~ ~e Opinion ~d
M~t~ce F~d s~ ~ us~ for depreciatiog ~tacmentg improvem~s, ~ensions or
~difions. ~y m~es ~ ~e Op~ation and M~tenm~e F~d my be ~f~ to
Works Sinking Fund ifn~sa~ to preverit a default in the payment of principal of or interest on
the ouistandlng bonds of the sew~e works. ,
(o) ~fl]~lL.E~- There is hereby confinuedasinldngfund, cuntinuedby'the 1995
Ordinance and herein, for the payment of the principal of and interest on revenue bonds which by
their terms are payable from the net r~veanes of the sewage works and the payment of any
a~en~y charges in connection with the paylnent of bonds, which fund shall be designated the
"Sewage Works Sinking Fond" (hereto, "Sewage Works S~nking Fund or Sinking
There shall be set aside and deposited in the Sewage Works Sinking Fund, as available, and as
hereinafter provided, a su~cient amount of the Net Revenues of the sewage works to meet the
requireme~ts of the Bond and Interest Account (hereafter defined) and Debt Service Reserve
Account (hereinafter defined) in the Sinking Fund. Such pa~ents shall continue until the
balances in the Bond and Interest Account and the Debt Service Reserve Account equal the
principal of and interest on a~ of the then outstat~dlng bonds of the sewage works to the'~r
malty.
('ii) Bond and Interest Account.. There shall be credited on the last day of each
calendar month from the Revenue Fund to the Bond and Interest Account of the Sinking Fund
here'm established (the 'Bond and Interest Account") an amount of the Net Revenues extual to
~ne-slxth (1/6) of the interest of all then outstanding bonds payable on the then next succeeding
interest payment date and (ii) at least one-twel~ (1t12) of the principal on all then outstanding
bonds payable on the then next succeeding respective interest and principal payment dates unt~
the amoun~ of the intere~ and principal payable on ~he next succeeding interest and principal
.payment da~ shall have been so credited. There ~ similarly be credit~l w the ac~un~ any
-27-
· n 6utstanding b ads
bank fiscal agency chargei'for paying interest o o
payth
araou~ ~cessary to e
. -.' -" '%m the stuns deposited in the Sinl~g FTd and
as the same become payable. The City snau, a '
credited to the Bond and Interest Account, remit promptly to the registered owner or tb the bank
fiscal agen~ sufficient moneys to pay the interest and principal on the due dates thereof together
with the amount ofba~k l~al agan~T charges.
Cm-') ~ebt Service Ri~erve Aero,mt. Funds representing the ~ of safety
~or the Bonds established and maintained pur~ar~ to tl~s Ordinance shall be deposited into the
Debt Servlc~ Reserve Account of the Sinking Fund {the "Debt Service P. ese~e Account'). The
initial deposit or the balan~ accumulated in the Debt Service R~serve A~count shall not exc~l
the least of (i) the maximum armunI debt service on the Bonds, ('ii) 125% o£ average annual debt
...... · '~ -~*~e stated .rinclpal amount of the bonds CReserv~
service o11 the Bones or Un) into uz ~,, r
tt. equirement'). The balancu in the Debt Service Reserve Account, allocable to the bonds, shall
never exceed the Reserve Requirement. 16the initial baia~ce in the Debt Service Reserve
is less than the Reserve ICequirament, an amount ofl%t R~venues sI~l! he ~redited to the Debt
S~-rvic¢ l~serve Account on the last day of each calendar month until the balance ther~ equals
the Reserve Requirement. The monthly deposits shall be equnl in amount and sm~cient to
accmrmlate the Reserve Requirement within five (5) years of the date of delivery of the Bonds.
~he Debt Service Reserve Account 'shall constitute the margin for safety and proteaiou against
default in the payment of principal of and interest on the bonds, and the moneys in the Debt
Service Reserve Account shall be used to pay current principal and interest on the bonds to the
extent that moneys in the Bond and Interest A~tnt are ins~ffi~ for that purpose. Any
deficie~:Y in ~ balance maintained in the Debt Serv~c~ Reserve Ac~otmt ~ b~ made up
the next available Ne~ P. even~es ren~i.lr~ after ~r~tlfs into the Bond and Interest Account. Any
' ' quirement shall eitber be
moneys in th~ D~'cbt Serwce Reserw Account in excess of'the Reserve Re :
trar~erred to the Sewa~e~ Works Improvement Fund or be used for tho purchase of outer, anding
bonds or in~--~ltmeitts of principal of fully re~stered bonds.
(d) ~_el~age Work4 Imnrov~raent Fund.: Any excess revenues over anti above the
requirements of the Operation and Maintenance Fund and Sinking Fund may be transferred or
credited from the Revenue Fund to the Sewage Works Improvement Fund continued by the 1995
d
Ordinance and herein (the ~Improvernent Fund ), an the Improvement Fund shall be used for
improvemertts, raplacemcn'ts, additions and extension ofthe sewage works. Moneys in the'
- ~ -' to the Sinking Fund if necessarY to prevent
Sewage Works Improvement Fund shall t~ transterrea
a default in the payment of principal and interest on the then outstanding bonds or, if necessa~, to
' ~ to or minimum balance in the Debt Service Reserv~ Account
e 'hnfinae any deticiencies in credits
~ Sinking Fund or may be ffansferred to the Operation and Maintenance Fund
of'the Sewage Works
to meet unforeseen contingencies in the operation, repair and malnte~ance of the sewage work~
Section 14. [nve-;,uent Of Fvnd! The Sinking Fund shall be deposited in and maint~..Jned
as a separate account or accounts f~om all other accounts of the City. The Revenue Fund and the.
Improvement Fund may be maintained in a single account, or accounts, but such account, or
~counts, shall likewise be maintained separate and apart from all other accounts of tho City and
apart from the Sinking Fund account or accounts. All moneys deposited in the accounts shall be
deposited, beld and secured as public funds in accordance with the publicdepository laws o£the
li afions in acco~dsnce with
State of Indiana; provided that moneys therein may be invested in ob f~
the applicable laws, including pgticutarly lC $-13, as amended or supplemented, and in the eve~
of such investmmt the intom~ there~om shall become'a pait of the funds invested aid shall be
used only as provided in this ordinance. ,
Section i5. l~~l~l~~i. If; when theBonds or a portion thereof shall have
become due and payabl~ in accordance ~ith their terms or shall have been duly called for
redemption or irrevocable instructions to call the Bonds or a portion thereof for redemption shall
have been given, and thc whole amount of'the principal and the interest and the premium, if any,
so due and payable upon all ofthe Bonds or a portion thereof then outstanding shall be paid; or (~
sufficient moneys, or (ii) direct obligations o/~ or obligations the principal of and interest on which
are unconditionally guaranteed by, the United States of America, the principal of and the interest
on which when due will provide sufficient moneys for such purpose, shall be l/eld in trust for such
purpose, and provision shall also be made for paying all fees and expenses for the redemption,
tben and in that case the Bonds or any designated portion thercofissued hereunder shall no longer
be deemed ;~tstanding or entitled to the pledge'of the lqet Revenues of the City's sewage works.
Section 16. ~. The City covenants and agrees that, by o. rdinance of the
Common Council, it vaTll establish just and equitable rates or charges for the use of and thc service
rendered by the works, to be paid by the owner of each and every lot, parcel of real estate or
building that is connected with and uses said seWage works by or through any part of the sewage.
system of the City, or that in any way rises or is served by such works; that such rates or charges
shall be sufficient in each year to provide for proper Operation and Maintenance (as defined in the
Financial Assistance Agreement) of the works, to comply with and satisfy all covenants contained
in this Ordinance and the Financiai Assistance At/reement and to pay all obh'gations of the sewage
works and ofthe City with respect to the sewage works. The City covenants and agrees that it