HomeMy Public PortalAbout1999-19 Sewage Works Bonds® ORDNANCE NO. 1999-19
AN ORDNANCE OF THE COMMON COUNCIL OF THE CITY OF
GREENCASTLE, INDIANA, SUPPLEMENTING ORDNANCE NO. 1998 -28 OF
THE COMMON COUNCIL OF THE CITY, ADOPTED ON NOVEMBER 17,
1998, AUTHORIZING THE ISSUANCE AND SALE OF SEWAGE WORKS
REVENUE BOND ANTICIPATION NOTES N ANTICIPATION OF THE
ISSUANCE AND SALE OF SEWAGE WORKS REVENUE BONDS OF THE
CITY, TFIE REFUNDING OF OUTSTANDING SEWAGE WORKS REVENUE
BOND ANTICIPATION NOTES OF THE CITY AND OTHER RELATED
MATTERS
WHEREAS, the City of Greencastle, Indiana (the "City "), has heretofore established
and constricted and currently owns and operates a sewage works for the collection and treatment of
sewage and other wastes (the "Sewage Works "), pursuant to the provisions of Indiana Code 36 -9 -23,
as amended (the "Act "); and
® WHEREAS, this Common Council, pursuant to Ordinance No. 1998 -28, adopted on
November 17,1998 (the "1998 Ordinance "), has previously found, and hereby confirms such finding,
that certain improvements and extensions to the Sewage Works are necessary; and Hannum,
Wagle & Cline, Inc., of Terre Haute, Indiana, the consulting engineers employed by the City (the
"Consulting Engineers "), have prepared and filed preliminary plans, specifications, and detailed
descriptions and estimates of the costs of the necessary improvements and extensions to the Sewage
Works, which preliminary plans, specifications, descriptions and estimates, to the extent required
by law, have been duly submitted to and approved or will be approved by all governmental
authorities having jurisdiction thereover (the improvements and extensions to the Sewage Works as
described in the Consulting Engineers' plans and specifications and below are referred to herein as
the "Project "), including, without limitation, the Indiana Department ofEnvironmental Management;
® and
WHEREAS, this Common Council has further previouslyfound pursuant to the 1998 •
Ordinance, and hereby confirms such finding, that the estimates prepared and delivered by the
Consulting Engineers with respect to the costs (as defined in Indiana Code 36- 9- 23 -11) of
acquisition, constriction, and installation of such improvements and extensions to the Sewage
Works (as defined in Indiana Code 36- 9 -1 -8, as amended, and in the Act), and including all
authorized costs relating thereto, including the costs of issuance of bonds and, if necessary, bond
anticipation notes (the 'BANS ") on account of the financing of all or a portion thereof, will be in an
amount not to exceed Twelve Million Dollars ($12,000,000); and
WHEREAS, this Comrnon Council has previously found pursuant to the 1998
Ordinance, and hereby confirms such finding, that to provide funds necessary to pay for a portion
of the costs of the Project, it will be necessary for the City to issue sewage works revenue bonds in
an amount not to exceed One Million One Hundred Thousand Dollars ($1,100,000) (the 'Bonds "),
and, if necessary, BANS in an amount not to exceed Nine Hundred Thousand Dollars ($900,000);
and
WHEREAS, pursuant to and in accordance with the Act, the Clerk- Treasurer of the
City caused the publication in the Banner - Graphic a newspaper of general circulation published in
the City, on November 20, 1998, of the Notice of Adoption and Purport of the 1998 Ordinance,
which publication was made in accordance with the provisions of Indiana Code 5 -3 -1, and this
Common Council received no objecting petition from any owner of property connected or to be
connected to the Sewage Works regarding the Project within the time period so provided in the Act;
and
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® WHEREAS, pursuant to the 1998 Ordinance, the City issued its BANS designated
"City of Greencastle, Indiana, Sewage Works Revenue Bond Anticipation Notes, Series 1998," dated
December 22, 1998, in the original maximum principal amount of $900,000, bearing interest at the
rate of 3.89% per annum and with the principal amount outstanding maturing on December 31, 1 999
(the "1998 BANS "), which 1998 BANS are currently outstanding in the aggregate principal amount
of $561,167; and
WHEREAS, the City desires to authorize the issuance of the 1999 BANS (as
hereinafter defined) payable from the net revenues of the Sewage Works (with respect to interest),
subject to the prior lien thereon of the Prior Bonds (as hereinafter defined), and from proceeds of the
Bonds, and to authorize the refunding of the 1998 BANS with the proceeds of the 1999 BANS; and
WHEREAS, pursuant to Ordinance No. 1994 -6, adopted by this Common Council
® on June 17, 1994, the City has heretofore issued revenue bonds payable from the revenues of the
Sewage Works, designated "City of Greencastle, Indiana, Sewage Works Revenue Bonds of 1994
(the 'Prior Bonds "), currently outstanding in the amount of One Million Four Hundred Forty -five
Thousand Dollars ($1,445,000), bearing interest at the per annum rates ranging from 5.40% to 6.50%
inclusive, depending upon the maturities, and maturing in various amounts serially on January 1 in
the years 2000 to 2015 inclusive; and
WHEREAS, this Common Council now finds that all conditions precedent to the
adoption of an ordinance authorizing the issuance of the 1999 BANS to provide the necessary funds
to refund the 1998 BANS and to pay the costs of the Project and authorized costs relating thereto
have been complied with in accordance with the provisions of the Act and Indiana Code 5- 1 -14 -5
and to pay the costs of the Project and authorized costs relating thereto; and
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WHEREAS, this Cormnon Council consequently seeks to authorize the issuance of •
the 1999 BANS to refund the 1998 BANS pursuant to the Act and Indiana Code 5- 1 -14 -5 and to pay
the costs of the Project and authorized costs relating thereto, and the sale of such 1999 BANS
pursuant to the provisions of the Act and Indiana Code 5- 1 -14 -5, subject to and dependent upon the
terms and conditions hereinafter set forth;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF GREENCASTLE, INDIANA, AS FOLLOWS:
In anticipation of the issuance and sale of the Bonds authorized in the 1998
Ordinance, and to provide interim financing to apply to the costs of refunding the 1998 BANS and
to pay t1'le costs of the Project and authorized costs relating thereto, the City is hereby authorized to
have prepared and to issue and sell negotiable BANS pursuant to a Bond Anticipation Note Purchase
Agreement (the 'Bond Anticipation Note Purchase Agreement ") entered into between the City and
the purchaser of the 1999 BANS, in an amount not to exceed Nine Hundred Thousand Dollars
($900,000), to be designated "City of Greencastle, Indiana, Sewage Works Revenue Bond
Anticipation Notes, Series 1999" (the "1999 BANS "). The 1999 BANS shall be issued and sold to
a financial institution pursuant to Indiana Code 5- 1 -14 -5, shall be issued in fully registered form,
shall be numbered consecutively from 99R -1 upwards, shall be in multiples of One Dollar ($1), shall
be dated as of the date of issuance of the 1999 BANS, shall mature on December 31, 2000, and shall
bear interest at a rate not exceeding six percent (6.0 %) per annum, the exact rate of interest to be
determined by negotiation with the purchaser of the 1999 BANS, payable on July 1, 2000, and at
maturity. Principal of and interest on the 1999 BANs shall not be payable and interest shall not
accrue on the 1999 BANS until such principal amount has been advanced pursuant to requests made
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the registration of the 1999 BANS, the 1999 BANs shall be fully negotiable instruments under the •
laws of the State of Indiana.
4. The Mayor and the Clerk - Treasurer of the City are hereby authorized and
directed to execute the Bond Anticipation Note Purchase Agreement in such form or substance as
they shall approve acting upon the advice of counsel. The Mayor and the Clerk- Treasurer of the City
may also take such other action or deliver such other certificates as are necessary or desirable in
connection with the issuance of the 1999 BANS and the other documents needed for the financing
as they deem necessary or desirable in connection therewith, including any disclosure materials
relating to the 1999 BANS.
The proceeds from the sale of the 1999 BANS shall be deposited in a bank or
banks which are legally qualified depositories for the funds of the City, in the special account to be
designated as "City of Greencastle, 2000 Sewage Works Construction Account" (the "Construction •
Account "). Amounts in the Construction Account shall be expended only for the purpose of paying
the costs of the Project (including engineering expenses relating thereto), refunding the 1998 BANS,
paying the costs of issuance of the 1999 BANS or as otherwise permitted or required by the Act.
Pursuant to the Act, the owners of the 1999 BANS shall be entitled to a lien on the proceeds of the
1999 BANS until such proceeds are applied as required by this Ordinance and by Indiana law.
The proceeds of the 1999 BANS shall be applied solely to the refunding ofthe
1998 BANS and to pay costs of the Project and all costs associated therewith, including the costs of
issuance of the 1999 BANS. The Clerk- Treasurer of the City, as registrar and paying agent for the
1998 BANs, is hereby authorized upon the issuance and sale of the 1999 BANS to provide notice to
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® the holder of the 1998 BANs of the City's intention to prepay the 1998 BANs consistent with the
requirements set forth in Section 5 of the 1998 Ordinance.
7. The 1 999 BANS are hereby designated as "qualified tax- exempt obligations"
for the purpose of Paragraph (3) of Section 265(b) of the Internal Revenue Code of 1986, as
amended (the "Code "), and any or all officials, officers, members, employees and agents of the City
are hereby authorized to execute on behalf of the City any documents necessary or appropriate to
evidence further such designation. The reasonably anticipated amount of "tax- exempt obligations"
(as such term is used in Section 265(b) of the Code) (other than obligations described in Section
265(b)(3)(C)(ii) of the Code) which will be issued by the City or otherwise on behalf of the City or
subordinate entities during the calendar year 1999 shall not exceed $10,000,000, and not more than
$10,000,000 of obligations issued by the City or otherwise on behalf of the City or subordinate
entities have been or shall be designated "qualified tax - exempt obligations" during calendar year
1999. The designation set forth in this Section 7 may be revoked by the Clerk- Treasurer of the City
by written certificate.at any time prior to the issuance and sale of the 1999 BANS.
8. The officers of the City are hereby authorized to execute all documents and
take all actions necessary to provide for the issuance of the 1999 BANs provided such documents
or actions are not inconsistent with the terms and conditions of this Ordinance.
9. This Ordinance is adopted by this Common Council for purposes of
supplementing the 1998 Ordinance, and the terms and conditions of the 1998 Ordinance, to the
extent not inconsistent with the terms of this Ordinance, are incorporated herein by reference and
shall apply to the 1999 BANs as if set forth herein
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Passed and adopted by the Common Council of the City of Greencastle on the 16th •
day of November, 1999.
ATTEST:
Clerk - Treasurer C/
COMMON COUNCIL
&".J C
Presiding Officer
Presented by me to the Mayor of the City of Greencastle on the 16 6— day of
November 1999, at 5� o'clock P.in.
Clerk - Treasurer
This ordinance approved and signed by me on the /&t' r day of November, 1999, at
�c?S o'clock .m.
i f
Mayor
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