HomeMy WebLinkAboutO-670ORDINANCE NO.
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IT ORDAINED by the or and City Council ;(herein to -
A' gether called Cou a ity of Fa irhop¢�ilabama,�heroin called
)
«the -.city" as follows:; : I,
Section 1. The Council has ascertained and found and does
hereby declare that it is necessary and desirable. and. ,in the public interest '
::1 -that the City ' acquire and construct certain extensions and improvements
jkY (herein called "the Improvements" and consisting of 14.2 miles of 8" lines, 36
r " miles of 6" lines, 3.8 miles of 3" lines, two 500 gpm wells, two 300,000
"gallon ,elevated storage tanks, 55 6" fire plugs, and 600 customer , connec-
<r" '"tions) to the'existing water works plant and distribution system of the City
y 4" (herein called "the System"); that the estimated total cost of acquiring and
constructing the said Improvements to full completion, including the costs
-of acquiring real property 'or interests therein for location of parts of the
;;x, ,:;,.::.• , . 'improvements thereon or thereunder; will be not less than 2,192,000; and
.,..that in order to finance the costs of acquiring and. constructing the
Improvements, including the costs of acquiring real ,'property or interests
it will be necessary for the' City to - borrow the sum of $2,192,000
n
,, :::,r5't1.a• < ,:and in evidence thereof to issue. $2,192,000 principal 'amount of Water
Revenue Bonds (herein called "the Bonds"), payable `serially, in installments
t .t'; over ` a period of years,- solely out of revenues to be derived from the
: operation of the System; that the pledge of the said revenues for the benefit
of the Bonds will be subordiriate to the pledge thereof heretofore -made for
`th+e' benefit of .(i) the Water, Gas and'Sewer Revenue" Bonds, Series 1961, of
the +City, dated December .1, 1961, p sently outstanding, in the aggregate
,'r• re
F. principal amount of $495,000, 60 the Water, Gas and Sewer Revenue Bonds,
Series. 1972, of the City,. dated December. 1,' 1972, presently outstanding in
the aggregate principal amount of $680,000,'and (Iii) the Water and Sewer
Revenue Bonds, Second Series, issued by The Water Works and. Sewer Board
of the City of Fairhope, dated July 1, 1953, which have been assumed by the
City' and which are now outstanding in the aggregate principal amount of
(herein together called "the Prior Pledge Bonds"); that the City
is not now, and will not be for some months, in a position to proceed ;with
,. # the issuances and sale of the Bonds;, that the City does not now have, 'and will
not have prior to the completion of said construction of .the Improvements,
funds sufficient to pay all the costs thereof; that -in order to provide for the
for the City to
.,,payment of a portion of said casts, it will, be necessary
borrow 'the principal sum of not exceeding: $2,192,000 ,temporarily, in
anticipation of the sale of the Bonds, and in evidence ofsuch - borrowing to
a; r issue.the Water Revenue Bond :Anticipation Notes hereinafter authorized.
Section 2. Pursuant to the applicable' provisions of Article 5
''. of .Chapter 81 of Title 11 of the Code of Alabama of ' 1975, 'as amended, and
' for the 'purpose of paying a portion of , the costs to be incurred in, acquiring
and constructing the Improvements, the City,is hereby authorized to borrow
„ from The First National Bank of Baldwin County, Fairhope; Alabama (here in
; •• r ,; �; sometes called :the Lender Bank' ), -the aggregate principal amount of
$2,192,000 and, in evidence of the money so borrowed, is authorized to issue
=v ,• ,
and deliver to the Lender Bank, its*Water Revenue Bond ''Anticipation Note
(herein called "the Note"). The Note shall be in', the principal amount of
,
y $2;192;000,.shall be dated the date. df- its issuance:.(ripich shrj bo 'the -rte
:on Gvhich••tie loan evid�jictyd ttierby'Is made);'shall'lie pajrat�le xo::tji�.Lender`
' ! -'_Bank or order; shall mature and come due on. ;r shall .bear
interest from its date until its maturity at a per annum . rate of 9b,
payable at maturity; and shall be payable (as to both principal': and interest)
at,th.o office of the Lender' "Bank iri,Fairhope, ,`Alabama.
"Section 3. ''The City reserves end , shall have' the. privilege of
,,.• prepaying: all or any part, of the principal .of -the Note:.at,any time and from.
remiuin and Without rior.-notice
-'time: to time, without 'penalty o ,p, . ny,,P ,
),� .S'' , l 1• u!{!Y 4. .fry �' � a�
' . }. i r r r t a• ,1.
such prepayment, the City pays the
provided that at the time of each
interestdate of such prepayment, -
which shall have accrued, to the da on the
principal to be so prepaid with respect to such Note
Section 4. The Note shall be executed on behalf of the City by
its Mayor and shall have affixed thereto the corporate seal of thii City'
"
,which shall be attested by the City Clerk. Said officers are hereby
authorized and directed to execute the Note, all' in, accordance with the
provisio0s of this section and Section 8 hereof.
Section 5. The principal of and the interest on the Note shall
. be' payable solely out of the revenues derived f rom the operation of the
:
System as it may at any time and from time to time. exist subject to the
prior pi Prior Pledge Bonds.
edge of the said revenues for the benefit of the
Neither the Note nor any of the agreements herein contained shall consti-
tut& indebtedness of the City within the meaning of any -state constitutional
or statutory provision or limitation, and the general faith and credit of the
City are not pledged for payment of the Note, which shall not be a general
obligation of the City. Neither this Ordinapce nor the Note issued
hereunder shall be deemed to impose upon the City any obligation 'to pay the
..'.prncipal of or the interest on the Note, or any other sum, except with
revenues derived from the operation of the System. None of the agree-
ments, representations or warranties made or implied in this Ordinance, or
in the -issuance of the Note, shall ever impose any personal or pecuniary
liability or charge upon the City, whether before or after any breach by the
City of any such agreement, representationwith or warranty, except w re-
-Nothing
spect to the revenues derived from the operation of the System.
contained in this section shall, however, relieve the City from the perfor
Tnance of the several agreements and representations, on its part herein con.
"`tamed so long as such performance does not impose a person4l :pecuniary,,or
-geheral liability or charge upon the City.
Section 6. The revenues derived from the operation of the
System are hereby irrevocabiy• pledged for payment, of the principal of and
the interest on' the Note. The City represents that the pledge and
agreements made herein constitute the only outstanding pledge and agree
ments made by It with respect to the revenues derived from the operation of
the System other than the pledge and agreements made for the benefit of
,the Prior Pledge Bonds. In order to safeguard the pledge and agreements on
the part of the City herein contained, the City does hereby declare that it is
'
the intention hereof that the revenues from the System shall be and the
same hereby are severed from the physical properties comprising the System
to such extent as shall be necessary to f ulf ill and preserve inviolate the
pledge- and agreements on -the part of. the City herein contained.
Section 7. The Note shall be in substantially the following
form, with appropriate insertions, omissions and other changes to comply
with the provisions hereof and to reflect the appropriate. date:
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$2,192;b00 $2,192, 000
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UNITED STATES OF AMERICA
STATE OF ALABAMA
CITY OF FAIRHOPE
` WATER REVENUE BOND ANTICIPATION NOTE
' On the 1st day of , 198 , for value received, the '
CITY OF FAIRHOPE, a municipal corporation under the laws of Alabama
;! (hereon Called "the City"), will pay to The First National Bank of Baldwin
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County,.or, order, solely out of the revenues hereinafter referred to, the sum .
of _
{ 1 r 'TWO MILLION ONE HUNDRED NINETY-TWO THOUSAND DOLLARS
C }.
with interest thereon from the date hereof until the maturity hereof at a
per annum rate of % payable at the maturity hereof. Both the
'! principal hereof and the interest hereon are payable in lawful money. of the
United States of, America at the principal office of The First National Bank
of Baldwin County, in Fairhope, Alabama. The City reserves the privilege
of prepaying all or any part of the principal of this note at any time or from
time to time, without premium or penalty and without any prior ,notice,
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provided that at the time of each such prepayment the City pa the
interest which shall have accrued, to the date of such prepayment, on the
d with respect to this note.
principal to be so prepai
The principal hereof and the interest hereon are payable solely
out of revenues from the water works plant and
distribution
stribut called "the System f the
and.
City as presently or hereafter constituted(herein
are secured by a valid pledge of the 'said revenues out of which they.are,
payable, subject to all prior charges thereon.
This Note is authorized to be issued for the purpose of pro- .
R viding funds with which to pay a portion of the costs to be incurred in
acquiring and constructing certain extensions and improvements to the Sys
tem. The covenants and representations herein contained or contained in
the proceedings authorizing this Note do not and shall never constitute a
personal or pecuniary liability or charge against the general credit of the
' City, and in the event of breach of any such covenant or representation no
' personal or pecuniary liability or charge payable directly or indirectly from
of
the general revenues of the City shall arise therefrom. No holder w this
Note shall ever have the right to compel the exercise of the taxing power of
the City for payment of the principal of or the interest on the Note, and.
,this Note does not constitute a debt of the City within any state constitu-`
tional provision or statutory limitation.
It is hereby certified that all conditions, actions and things
required by the constitution and laws of Alabama to exist, be performed or
happen precedent to or in the issuance of this Note exist, have been per-
formed and have happened in due and legal form.
IN WITNESS WHEREOF, the City has caused this Note to be
r executed in its name and behalf by its Mayor, has caused its .corporate seal
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to be hereunto affixed and attested by its City Clerk, both of said officers;
being hereunto duly authorized, and has caused this note to be dated
198_
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CITY OF FAIRHOPE
By
Its Mayor ,
Attest i
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City Clerk
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